Title
Consolidated Police Officers' and Firefighters' Retirement Plan Actuarial Valuation Report (B)
Explanation
The City of Gainesville receives periodic actuarial valuation reports on its Consolidated Police Officers' and Firefighters' Retirement Plan (Consolidated Plan). The actuarial valuation is the process by which the fiscal status of the Plan is measured on a recurring basis. The September 30, 2003 valuation has been prepared by Mellon Corporation.
Fiscal Note
Based on the results of the September 30, 2003 valuation, the recommended City contribution rate to the Consolidated Plan effective October 1, 2004 is 6.81% of covered payroll. Utilizing projected covered payroll figures, this equates to a fiscal year 2005 employer contribution of approximately $1,254,000. The funds to cover this expenditure have been incorporated into the FY 2005 budget.
Subsequent to the issuance of the Series 2003 Taxable Pension Obligation Bonds, incorporated in each actuarial valuation report is an analysis comparing the required City contribution rate to that which would have been required absent the issuance of the bonds. The September 30, 2003 valuation indicates that the City contribution rate effective October 1, 2004 assuming the bonds were not issued would have been 25.62%. After considering the required FY05 debt service payment on the Pension Obligation Bonds, this translates to a FY 2005 savings to the General Fund of approximately $1.13 million.
Recommendation
The City Commission accept the September 30, 2003 actuarial valuation report for the Consolidated Plan and approve the recommended City contribution rate of 6.81%, effective October 1, 2004.