HomeMy WebLinkAbout2006 09 27 Other Related to 9/27/06 City Commission Workshop
RECEIVED
AUG 3 0 2006
Memorandum
CITY OF WINTER SPRINGS
OFFICE OF THE CITY CLERK
FROM:
Byron W. Giltz
1001 Troon Trace
troontracelal,aol.col11
407-977 -8096
MEMBER BOARD OF TRUSTEES
For Defined Benefit Plan and Trust for Employees of the City of
Winter Springs, FL
District 3 Appointee
~~
-
TO:
Commissioner Krebs
Commissioner McGinnis
Commissioner Gilmore
Commissioner Blake
Commissioner Miller
Mayor Bush
City Manager McLemore
City Clerk Lorenzo-Luaces
Board of Trustees,
Nippes
Sardo
Rozelle
DeMaio
CC: Candidate Martinez
Candidate Brown
Kevin Smith, Staff
DATE: August 30, 2006
SUBJECT: Defined Benefit Plan and Trust for Employees of the City of Winter
Springs, FL established October 1, 1997, restated November 10, 2003, and
draft of new plan, "City of Winter Springs Retirement Plan", effective
date unknown.
I, Byron Giltz, am currently a Trustee and a fiduciary of the Defined Benefit Plan and
Trust for Employees of the City of Winter Springs ("BENEFIT PLAN"). I believe my
prudent duties and responsibilities are to thoroughly explore, analyze, and understand the
BENEFIT PLAN and the management of same.
I also believe that I should always make management decisions that are in the best
interest of the participants and beneficiaries of the BENEFIT PLAN.
Page Two
Having said all that, I also believe that the City Commissioners, the Mayor, and the City
Manager, because of their roles as Benefit Plan's establisher, employers, plan
administrator, and of course fiduciaries, should exercise the same diligence, prudence,
time allocation, knowledge and expertise as one does in all the other business of the City.
Along with their annual employment income, city employees value their retirement plan
as very important. As you know, the city has approximately 300 employees, about 50%
general and 50% police and fire, with an annual payroll of approximately $11 Million.
The total assets of the Benefit Plan are approximately $12 Million. The assumed annual
actuarial rate of return is about 8%, or inflation rate plus 4%. The Benefit Plan's
portfolio is approximately 70% stocks or equity and 30% bonds or fixed income; the
annual return, since inception @ 6/30/02, has been 9.18%, as of 6/30/06. The portfolio
has been managed by Trusco Capital Management, Inc., a subsidiary of Sun Trust Banks.
Your Benefit Plan, as are all Florida municipal plans, is regulated by State of Florida,
Division of Retirement, P. O. Box 9000, Tallahassee, FL 32315. Corporate and Union
retirement plans are regulated by the U.S. Department of Labor and "ERISA", Employee
Retirement Income Security Act, 1974.
There are approximately 520 municipal retirement plans in the State of Florida.
The breakdown by type is approximately:
320 Chapter 175 (Firefighters) and Chapter 185 (Police Officers)
170 General Employees
30 Other, including Florida Retirement System ("FRS")
Winter Springs' Benefit Plan would fall in the Other category.
I believe the most difficult part of the due-diligence, prudent management and fiduciary
responsibility I refer to above, is the analysis of Florida Chapters 175 and 185 for
municipal defmed benefit plans.
This may sound "redundant", but I am not an expert in this field, but I do know some
attorneys, actuaries and consultants who are. Anyway, here is a beginners summary.
As of October 1, 1999, State law does not permit joint plans of firefighters, police
officers, and general employers under Chapters 175 and 185.
At least 2 separate plans are necessary, with 2 separate Boards of Trustees and Chapters
175 and 185 criteria followed in its plan. The basic Chapters 175 and 185 criteria are as
follows:
1. Minimum contribution of one-half of one percent of employee's salary.
2. Insurance premium tax paid directly to the plans' Board of Trustees. The insurance
premium tax facts are discussed later.
Page Three
3. Employer contributions made quarterly.
4. Normal retirement age 55 with 10 years, or age 52 and 25 years.
5. Minimum benefit rate is 2.0% for each year of service.
6. Chapters 175 and 185 establish minimum benefits and standards for plan
7. To participate in the distribution of the insurance premium tax, the plan must meet the
minimum benefits and standards.
8. General employee plans can be established by a municipality with equal benefits of
the Chapters 175 and 185 plan.
9. Board of Trustees board members composition would consist of one firefighter, one
police officer, two appointed by Employer and one voted by other four.
I realize all the above will warrant legal verification and explanation. This is one of the
many reasons for a Workshop.
The insurance premium tax, as per above, is created by a 1.85% excise tax, approved by
the State, on property insurance premiums, within governmental areas, i.e. City of Winter
Springs, for the exclusive use of Chapter 175 firefighters' plans, and 0.85% excise tax on
automobile casualty insurance premiums by governmental area, for the exclusive use of
Chapter 185 police officers' plans.
The 2005 insurance premium tax distribution to Chapters 175 and 185 plans in Florida
totaled over $117 Million. See copy of breakdown by plan attached.
It has been estimated that Winter Springs' share would have been near $500.000 in 2005
and well over $1 Million since 2003. I really believe it would be prudent to gather all the
facts so a decision, in the best interests of the participants and beneficiaries, could be
made.
I urge all of you to respond and decide how we should proceed.
I would like to start with a Workshop, preferably on Wednesday, September 27, 2006.
Attendees would include City Commissioners, Mayor, City Manager, Board of Trustees,
other staff and general public. Speakers would include outside independent experts,
current service providers, and others.
Page 1 of4
~'\
QV
Police Officers' 2005 Premium Tax Distribution
Ci~I'
Code
Final 2005
Distribution
Amount
CUI' Name
106
118
119
128
130
132
134
141
148
151
165
167
168
169
183
191
192
203
212
222
229
251
253
257
258
265
268
270
278
279
287
288
292
293
294
296
298
301
317
326
331
333
349
359
361
365
371
374
377
379
AL TAMONTE SPRINGS
APOPKA
ARCADIA
ATLANTIC BEACH
AUBURNDALE
AVENTURA
AVON PARK
BAL HARBOUR VILLAGE
BARTOW
BAY HARBOR ISLAND
BELLE GLADE
BELLEAIR
BELLEAlR BEACH
BELLEVlEW
BOCA RATON
BOYNTON BEACH
BRADENTON
BROOKSVILLE
BUSHNELL
CAPE CORAL
CASSELBERRY
CLEARWATER
CLERMONT
COCOA
COCOA BEACH
COOPER CITY
CORAL GABLES
CORAL SPRINGS
CRESCENT CITY
CRESTVIEW
DADE CITY
DANIA BEACH
DAVIE
DAYTONA BEACH
DAYTONA BEACH SHORES
DEERFIELD BEACH
DELAND
DELRAY BEACH
DUNNELLON
EA TONVILLE
EDGEWATER
EDGEWOOD
EUSTIS
FERNANDINA BEACH
FLAGLER BEACH
FLORIDA CITY
FORT LAUDERDALE
FORT MYERS
FORT PIERCE
FORT WALTON BEACH
$305,497.08
$311,800.27
$89,520.56
$108,818.30
$114,062.14
$149,567.23
$66,598.84
$49,053.13
$131,663.04
$32,589.24
$98,713.62
$36,678.80
$11,252.27
$57,739.14
$1,378,731.23
$671,673.80
$591,985.85
$199,979.81
$29,229.53
$829,516.17
$190,696.45
$984,411.75
$199,035.42
$199,412.31
$93,786.63
$214,694.01
$463,998.55
$870,163.39
$16,116.n
$121,105.48
$132,839.09
$120,200.01
$607,385.83
$404,766.53
$16,309.17
$437,892.85
$210,040.69
$670,488.91
$71,163.90
$9,681.36
$119,224.68
$22,015.56
$110,498.45
$107,822.39
$47,532.92
$38,538.50
$1,901,400.51
$795,319.92
$369,999.48
$200,944.26
8/112006 11 :33 AM
Page 2 of 4
Police Officers' 2005 Premium Tax Distribution
Ci~r
Code
Final 2005
Distribution
Amount
011' Nllme
384
387
400
415
416
425
427
431
432
442
443
458
459
461
484
472
4n
479
481
491
492
501
505
509
515
524
526
530
536
539
544
545
546
551
552
553
560
578
579
590
595
596
604
607
618
620
621
626
627
628
FROSTPROOF
GAINESVILLE
GOLDEN BEACH
GREEN COVE SPRINGS
GREENACRES
GULF BREEZE
GULFPORT
HAINES CITY
HALLANDALE BEACH
HIALEAH
HIALEAH GARDENS
HOLLY HILL
HOLLYWOOD
HOLMES BEACH
HOMESTEAD
HOWEY -IN-THE-HILLS
INDIALANTIC
INDIAN HARBOUR BEACH
INDIAN SHORES
JACKSONVILLE
JACKSONVILLE BEACH
JUPITER
KEY BISCAYNE
KEY WEST
KISSIMMEE
LADY LAKE
LAKE ALFRED
LAKE CITY
LAKE HELEN
LAKE MARY
LAKE WALES
LAKE WORTH
LAKE LAND
LAUDERHILL
LANTANA
LARGO
LEESBURG
LONGBOAT KEY
LONGWQOD
LYNN HAVEN
MADISON
MAITLAND
MARCO ISLAND (new city)
MARIANNA
MEDLEY
MELBOURNE
MELBOURNE BEACH
MIAMI
MIAMI BEACH
MIAMI SHORES VILLAGE
$26.601.30
$632,n5.65
$25,449.80
$81,316.67
$141,461.80
$58,100.13
$75,623.51
$106,594.33
$193,589.17
$1,250,664.00
$99,818.11
$74,699.30
$1,112,804.26
$22,980.72
$265,269.21
$9,244.31
$63,480.86
$52,754.20
$14,873.36
$4,588,440.64
$180,819.00
$n1 ;595.97
$82,152.66
$1n,93O.65
$635,012.36
$98,209.34
$20,905.n
$155,997.68
$15,406.41
$180,306.41
$111,302.05
$546,501.32
$n9,989.25
$249,844.53
$100,229.97
$611,553.31
$184,827.50
$62,317.27
$244,932.53
$91,105.58
$31,441.36
$109,106.63
$54,781.33
$53,515.39
$50,461.55
$571,640.13
$42,790.49
$5,354,288.51
$528,637.83
$63,371.07
8/112006 11:33 AM
Page 3 of4
Police Officers' 2005 Premium Tax Distribution
Ci~l'
C mle
Otl' Name
Final 2005
Distribution
Amount
629
640
645
649
655
666
671
675
676
686
687
690
693
695
701
706
722
725
728
736
741
743
744
745
746
752
754
755
761
no
n3
n6
787
789
790
796
801
807
811
816
831
836
839
846
849
855
856
865
867
869
MIAMI SPRINGS
MILTON
MIRAMAR
MONTICELLO
MOUNT DORA
NAPLES
NEPTUNE BEACH
NEW PORT RICHEY
NEW SMYRNA BEACH
NORTH MIAMI
NORTH MIAMI BEACH
NORTH PORT
OAKLAND PARK
OCALA
OCOEE
OKEECHOBEE
ORANGE PARK
ORLANDO
ORMOND BEACH
OVIEDO
PAHOKEE
PALATKA
PALM BAY
PALM BEACH
PALM BEACH GARDENS
PALMETTO
PANAMA CITY
PANAMA CITY BEACH
PARKLAND
PEMBROKE PINES
PENSACOLA
PERRY
PINELLAS PARK
PLANTATION
PLANT CITY
POMPANO BEACH
PORT ORANGE
PORT ST. LUCIE
PUNTA GORDA
QUINCY
RIVIERA BEACH
ROCKLEDGE
ROYAL PALM BEACH
ST. AUGUSTINE
ST. CLOUD
ST. PETERSBURG
ST. PETE BEACH
SANFORD
SANIBEL
SARASOTA
$80,760.61
$111,404.14
$617,117.80
$31,279.20
$76,008.24
$773,953.70
$47,575.52
$305,874.99
$149,496.72
$238,413.55
$273,148.40
$191,599.50
$173,752.07
$569,421.43
$168,368.79
$134,180.89
$235,660.38
$3,049,462.85
$302,091.35
$211,087.47
$25,635.94
$76,218.67
$479,034.44
$226,181.11
$428,055.49
$110,320.22
$371,656.00
$93,883.30
$106,002.99
$965,546.96
$662,758.94
$58,748.17
$302,760.46
$615,796.44
$298,965.64
$827,490.06
$279,159.26
$664,463.95
$195,983.19
$65,113.75
$158,334.83
$164,202.05
$196,882.06
$271,723.36
$193,218.89
$1,648,464.97
$70.633.66
$305,512.72
$49,206.68
$780.579.79
8/112006 11:33 AM
Page 4 of 4
Police Officers' 2005 Premium Tax Distribution
Fintl12005
Ci(r Distribution
Colle Citl' Ntlme Amount
870 SATELLITE BEACH $85,356.60
873 SEBASTIAN $117,621.48
874 SEBRING $132,534.70
879 SHAll MAR $23,212.42
894 SOUTH MIAMI $66,993.65
898 SPRINGFIELD $17,061.23
900 STARKE $73,922.89
909 SUNRISE $512,972.82
911 SURFSIDE $35,361.72
912 SWEETWATER $16,913.53
916 TALLAHASSEE $1,272,251.54
918 TAMPA $3,381,121.35
919 TAMARAC $381,440.29
920 TARPON SPRINGS $190,437.69
921 TAVARES $69,363.35
925 TEMPLE TERRACE $116,163.84
926 TEQUESTA $65,700.10
930 TITUSVILLE $272,997.41
936 UMATILLA $30,581.23
938 VALPARAISO $27,344.62
941 VENICE $219,537.20
944 VERO BEACH $389,696.90
946 VILLAGE OF N. PALM BEACH $81,717.41
947 VILLAGE OF PALM SPRINGS $50,888.33
954 WAUCHULA $45,598.47
963 WEST MELBOURNE $68,527.63
966 WEST PALM BEACH $1,271,619.55
978 WILTON MANORS $65,792.16
984 WINTER GARDEN $192,238.68
985 WINTER HAVEN $287,269.99
986 WINTER PARK $280,854.77
GRAND TOTALS S64..325.156.14
8/1/2006 11 :33 AM
Firefighters' 2005 Premium Tax Distribution
City City Distribution
Code Name Amount
15 BOCA GRANDE FCD $40,595.76
17 BONITA SPRINGS FCD $403,124.69
21 DESTIN FCD $129,104.14
23 EAST LAKE TARPON FCD $146,046.12
24 EAST NAPLES FCD $200,990.82
27 ENGLEWOOD FCD $179,579.66
29 ESTERO FCD $185,628.20
43 MIDWAY FCD $52,985.61
47 NORTH BAY FCD $36,014.94
50 NORTH NAPLES FCD $458,426.35
53 NORTH RIVER FCD $130,181.04
55 OCEAN CITY-WRIGHT FCD $81,748.84
57 OKALooSA IS. FCD $28,570.91
60 PALM HARBOR FCD $167,837.91
64 SAN CARLOS PARK FCD $68,845.85
67 SOUTH WALTON FCD $244,865.45
69 SOUTHERN MANATEE FCD $239,425.01
73 ST LUCIEIFT PIERCE FCD $1,212,437.54
94 WEST MANATEE FCD $115,813.89
118 APOPKA $202,017.84
119 ARCADIA $36,413.40
130 AUBURNDALE $51,092.70
134 AVON PARK $44,633.23
148 BARTOW $55,098.30
165 BELLE GLADE $55,601.88
171 BELLEAlR BLUFFS $17,982.44
183 BOCA RATON $997,227.71
191 BOYNTON BEACH $653,087.81
192 BRADENTON $236,999.13
203 BROOKSVILLE $65,0n.58
210 BUNNELL $12,147.58
222 CAPE CORAL $671,917.00
229 CASSELBERRY $73, n9.30
236 CHATTAHOOCHEE $5,166.60
251 CLEARWATER $724,066.30
253 CLERMONT $80,458.38
257 COCOA $108,878.94
258 COCOA BEACH $79,767.00
265 COOPER CITY $171,792.24
268 CORAL GABLES $795,210.82
270 CORAL SPRINGS $572,471.39
278 CRESCENT CITY $11,204.09
279 CRESTVIEW $64,840.68
287 DADE CITY $83,349.13
288 DANIA BEACH $171,337.60
292 DAVIE $596,983.07
293 DAYTONA BEACH $348,460.55
296 DEERFIELD BEACH $561,508.67
298 DELAND $91,125.61
301 DELRAY BEACH $616,200.65
Page 1 oU 81412006 9:16 AM
Firefighters' 2005 Premium Tax Distribution
Cit)' City Distribution
Code Name Amoullt
303 DEL TONA $200,038.32
316 DUNEDIN $157,486.92
317 DUNNELLON $19,228.73
331 EDGEWATER $83,487.36
349 EUSTIS $53,497.38
359 FERNANDINA BEACH $85,530.30
361 FLAGLER BEACH $28,038.77
371 FORT LAUDERDALE $1,790,455.10
374 FORT MYERS $403,383.71
379 FORT WALTON BEACH $101,017.82
385 FRUITLAND PARK $11,033.52
387 GAINESVILLE $539,517.35
416 GREENACRES $96,598.56
427 GULFPORT $42,440.14
431 HAINES CITY $54,657.24
432 HALLANDALE BEACH $231,435.12
438 HAVANA $11,715.44
442 HIALEAH $977,770.60
458 HOLLY HILL $43,732.50
459 HOLLYWOOD $1,394,746.89
464 HOMESTEAD $153,527.78
477 INDIALANTIC $39,531.59
491 JACKSONVILLE $3,085,151.09
492 JACKSONVILLE BEACH $108,496.92
505 KEY BISCA YNE $178,008.12
509 KEY WEST $289,380.44
515 KISSIMMEE $318,809.99
521 LABELLE $19,697.66
530 LAKE CITY $90,931.20
539 LAKE MARY $110,158.02
542 LAKE PARK $43,807.15
544 LAKE WALES $66,378.96
545 LAKE WORTH $270,827.77
546 LAKELAND $418,705.43
551 LAUDERHILL $250,977.02
552 LANTANA $116,718.35
553 LARGO $461,417.03
554 LAUDERDALE BY THE SEA $39,536.68
555 LAUDERDALE LAKES $44,955.76
560 LEESBURG $138,695.36
572 LIVE OAK $21,203.68
578 LONGBOAT KEY $148,151.22
579 LONGWOOD $94,043.99
590 LYNN HAVEN $42,637.12
592 MACCLENNY $11,077 .87
594 MADEIRA BEACH $28,080.20
595 MADISON $13,116.30
596 MAITLAND $111,142.26
603 MARATHON $88,437.43
604 MARCO ISLAND $221,724.58
Page 2 of 4 81412006 9:16 AM
Firefighters / 2005 Premium Tax Distribution
City Cit)' Distribution
Code Name Amoullt
607 MARIANNA $25,241.58
620 MELBOURNE $481,939.07
626 MIAMI $5,752,954.49
627 MIAMI BEACH $1,141,622.31
640 MILTON $46,238.23
645 MIRAMAR $699,268.72
649 MONTICELLO $16,162.48
655 MOUNT DORA $51,401.10
666 NAPLES $647,853.71
675 NEW PORT RICHEY $132,438.13
676 NEW SMYRNA BEACH $162,850.26
687 NORTH MIAMI BEACH $162,979.14
690 NORTH PORT $242,082.84
693 OAKLAND PARK $198,485.45
695 OCALA $286,585.91
701 OCOEE $110,025.98
706 OKEECHOBEE $36,242.76
709 OLDSMAR $57,299.52
722 ORANGE PARK $85,448.34
725 ORLANDO $2,005,715.24
728 ORMOND BEACH $191,767.80
736 OVIEDO $150,235.20
741 PAHOKEE $19,339.38
743 PALATKA $56,324.46
744 PALM BAY $442,391.15
745 PALM BEACH $377,367.56
746 PALM BEACH GARDENS $538,814.39
748 PALM COAST $91,837.01
754 PANAMA CITY $201,686.10
755 PANAMA CITY BEACH $87,444.59
770 PEMBROKE PINES $977,504.62
773 PENSACOLA $596,471.03
776 PERRY $27,500.28
787 PINELLAS PARK $248,347.89
789 PLANTATION $376,538.30
790 PLANT CITY $109,263.12
796 POMPANO BEACH $849,968.02
798 PONCE INLET $17,650.40
801 PORT ORANGE $229,953.17
811 PUNTA GORDA $138,522.22
816 QUINCY $46,518.67
831 RIVIERA BEACH $243,305.03
836 ROCKLEDGE $110,m.10
844 SAFETY HARBOR $55,245.46
846 ST. AUGUSTINE $147,991.08
849 ST. CLOUD $120,159.48
855 ST. PETERSBURG $1,207,029.81
856 ST. PETE BEACH $102,523.74
865 SANFORD $190,993.74
869 SARASOTA $481,283.36
Page 3 of 4 81412006 9:16 AM
Firefighters' 2005 Premium Tax Distribution
City Cit)' Distribution
Code Name Amount
607 MARIANNA $25,241.58
620 MELBOURNE $481,939.07
626 MIAMI $5,752,954.49
627 MIAMI BEACH $1,141,622.31
640 MILTON $46,238.23
645 MIRAMAR $699,268.72
649 MONTICELLO $16,162.48
655 MOUNT DORA $51,401.10
666 NAPLES $647,853.71
675 NEW PORT RICHEY $132,438.13
676 NEW SMYRNA BEACH $162,850.26
687 NORTH MIAMI BEACH $162,979.14
690 NORTH PORT $242,082.84
693 OAKLAND PARK $198,485.45
695 OCALA $286,585.91
701 OCOEE $110,025.98
706 OKEECHOBEE $36,242.76
709 OLDSMAR $57,299.52
722 ORANGE PARK $85,448.34
725 ORLANDO $2,005,715.24
728 ORMOND BEACH $191,767.80
736 OVIEDO $150,235.20
741 PAHOKEE $19,339.38
743 PALATKA $56,324.46
744 PALM BAY $442,391.15
745 PALM BEACH $3n,367.56
746 PALM BEACH GARDENS $538,814.39
748 PALM COAST $91,837.01
754 PANAMA CITY $201,686.10
755 PANAMA CITY BEACH $87,444.59
no PEMBROKE PINES $977,504.62
n3 PENSACOLA $596,471.03
n6 PERRY $27,500.28
787 PINELLAS PARK $248,347.89
789 PLANTATION $376,538.30
790 PLANT CITY $109,263.12
796 POMPANO BEACH $849,968.02
798 PONCE INLET $17,650.40
801 PORT ORANGE $229,953.17
811 PUNTA GORDA $138,522.22
816 QUINCY $46,518.67
831 RIVIERA BEACH $243,305.03
836 ROCKLEDGE $110,m.10
844 SAFETY HARBOR $55,245.46
846 ST. AUGUSTINE $147,991.08
849 ST. CLOUD $120,159.48
855 ST. PETERSBURG $1,207,029.81
856 ST. PETE BEACH $102,523.74
865 SANFORD $190,993.74
869 SARASOTA $481,283.36
Page 3 of4 81412006 9:16 AM
Page 4 of 4
Firefighters' 2005 Premium Tax Distribution
City Cit)'
Code Name
Distributioll
Amoullt
870 SATELLITE BEACH
874 SEBRING
875 SEMINOLE
896 SOUTH PASADENA
898 SPRINGFIELD
900 STARKE
909 SUNRISE
916 TALLAHASSEE
918 TAMPA
919 TAMARAC
920 TARPON SPRINGS
921 TAVARES
925 TEMPLE TERRACE
926 TEQUESTA
930 TITUSVILLE
938 VALPARAISO
941 VENICE
944 VERO BEACH
946 VILLAGE OF N. PALM BEACH
947 VILLAGE OF PALM SPRINGS
966 WEST PALM BEACH
978 WILTON MANORS
984 WINTER GARDEN
985 WINTER HAVEN
986 WINTER PARK
$57,268.98
$57,159.87
$143,804.85
$29,318.23
$7,922.76
$22,391.10
$575,947.61
$810,998.20
$2,303,029.03
$410,195.57
$135,773.82
$50,640.78
$91,697.58
$67,742.22
$179,657.76
$12,696.44
$158,450.40
$259,098.50
$94,947.70
$25,888.92
$876,299.98
$56,794.87
$92,289.84
$146,391.78
$286,662.47
GRAND TOTAL
153..&51.117.77
8/412006 9:16 AM