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Ord 20-09ORDINANCE NO, 20-09 AN ORDINANCE fi"1VIENDII*TG THE CODE OF ORDINANCES OF THE CITY OF DELRAY BEACH, FLORIDA, BY AMENDING CHAPTER 33 "POLICE AND FIRE-RESCUE DEPARTMENTS" AT ARTICLE IV "CITY POLICE AND FIREFIGHTERS RETIREMENT SYSTEM"' AT SECTION 33.b3 '"OPTIONAL FORMS OF BENEFITS" TO PROVIDE FORA "POP-UP" FEATURE AS AN OPTIONAL FORM OF RETIRENIEIVT BENEFIT UPON THE ELECTION OF A PLAN MEMBER; PROVIDING FOR SEVERABILITY; PROVIDING FOR INCLUSION IN CODE; AND PROVIDING AN EFFECTIVE DATE. V~THEREAS, the City Commission of the City of Delray Beach desires to amend the City Police and Firefighter Retirement System {"System"} to provide fora "Pop-Up" feature as an optional farm of retirement benefit upon the election of a member; and WHEREAS, the City Commission has reviewed the actuarial impact statement and finds that it is in the best interest of the City and. its employees to amend the Retirement System. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA AS FOLLOWS: Section I. Recitals Adopted. That each of the above stated recitals is hereby adopted and confirmed. Section 2. City Code Amended. Section 33,63 "Optional Forms of Benefits" of Article IV "City Police and Firefighter Retirement System," of Chapter 33 "Police and Fire-Rescue Departments" of the City Cade is hereby amended to read as follows: See. 33.63. OPTIONAL FOR,IvIS OF BENEFITS. Each member entitled to a normal, early or disability retirement benefit shall have the right at any time prior to his actual retirement to elect to have his benefit payable under anyone of the options hereinafter set forth in lieu of the benefits otherwise provided herein, and to revoke any elections and make a new election at any time prior to actual retirement. The value of optional benefits shall be actuarially equivalent to the value of benefits otherwise payable. The member shall make an election by written request to the Board of Trustees, this request being retained in the Board's files. {A) Qptior~ I..Ioint and Last Survivor Qptiorz. A retiring member may elect to receive an actuarially adjusted retirement benefit during his lifetime and have such retirement benefit {including seventy-five (75) percent, sixty-six and sixty-six one hundredths (6b.66) percent or fifty (54) percent thereof] continued after his death to and during the lifetime of a designated joint pensioner. The election of Option 1 shall be null and void if the designated joint pensioner dies before the member's retirement, unless the member designates another joint pensianer in accordance with Subsection 33.b1(C), In addition, the member may elect to add a "pop-up feature" to such joint and survivor option. If the member elects to add a "pop-up" feature to his joint and survivor option, then, upon the death of his joint pensianer, the amount of his monthlypayment will be increased to the amount of a straight life annuityand such amount will be payable as of the first da~of each month after the death of his joint pensianer far the remainder of his lifetime. A member electing to add the pop-up feature to his point and survivor option will have his monthly benefit under this Qption 1 actuarially reduced to take into account the addition of the pop-up feature. (B) Qption 2. Ten Years Certain and Life Thereafter. A retiring member may elect to receive a retirement benefit with one hundred twenty {124) monthly payments guaranteed, If, after retiring, the member should die before the ane hundred twenty (124) monthly payments are made, payments are then continued to his designated beneficiary until one hundred twenty {124) payments in all have been made, at which time benefits cease. After expiration of the one hundred twenty (124) monthly payments guaranteed, should the retired member be then alive, payments shall be continued during his remaining lifetime, Notwithstanding any other provision of the plan to the contrary, this option {Option 2) shall be the normal form of benefit for unmarried employees who retire from active service on or after December 31, 1999. (C) Qption 3. Other, It7 lieu of the other optional forsz~s enumerated in this Section, retirement benefits may be paid in any form approved by the Board so long as actuarial equivalence with the benefits otherwise payable is maintained, Section 3. Severability. The provisions of this Ordinance are declared to be severable and if any section, sentence, clause or phrase of this Ordinance shall for any reasons be held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining sections, sentences, clauses, and phrases of this Ordinance but they shall remain in effect, it being the legislative intent that this Ordinance shall stand notwithstanding the invalidity of any part. Section 4. Inclusion in the City Code. It is the intention of the City Commission, and it is hereby ordained that the provisions of this Ordinance shall become and made a part of the Code of the City of Delray Beach, Florida; that the sections of this Ordinance may be renumbered or re- lettered to accomplish such intentions; and that the ward "Ordinance" shall be changed to "Section" or other appropriate word. 2 Ord. No. 20-09 Section 5. Effective Date. This Ordinance shall take effect immediately upon passage by the City Commission at second reading. r~PASSED AND ADOPTED in regular day of _-_-, 2009. session on second and final reading on this the MAY ATTEST ~~~~ City Clerk First Reading ~ ~-~ Second Reading ~ .~j ~~ Ord. Na. 20-09 MEMORANDUM TO: Mayor and City Commissioners FROM: David T. Harden, City Manager DATE: Apri127, 2009 SUBJECT: AGENDA ITEM 10.D. -REGULAR COMMISSION MEETING OF MAY 5, 2009 ORDINANCE N0.20-09 ITEM BEFORE COMMISSION The item before Commission is second reading of an ordinance amending Chapter 33, Article IV "City Police and Firefighters Retirement System," at Section 33.63, "Optional Forms of Benefits," to provide fora "Pop-Up" feature as an optional form of retirement benefit upon the election of a plan member; providing for severability; providing for inclusion in the City Code. BACKGROUND At the first reading on Apri121, 2009, the Commission passed Ordinance No. 20-09. RECOMMENDATION Recommend approval of Ordinance No. 20-09 on second and final reading. Boca Ratonp'De~ay Beach News - ApTi~ 23-24,.20x9 • www.bocan~ws.com 12:x±. A PtitN.[C t1EAHBkT`drN tie hMtl ao the ~Cm'~hg prapased oMktences al 7Ae pre. on TUESOAY,~ MM1Y 5.248 tre ~ ~ry centbtubYan dsUth meet 1~emdceksat.bp FtaCamrtbssloni, in Vre City GxnmissPon Cltam0eie,~1~ N.YC Tsi Armes, Dehay BgseFt FTOt- IdA at vfi4d+Bore fho t~! (~ml wN Nrolder their a0ep8uie Ttie: pa ''... P~ arcNnences map Ire b~eciod si Poe Otkce d iqa Cdy c2etk st thly Ha11, 1~ NVd`ist Avenel` Oelt6y RseCl6 Fes, trehreen Otn haoa d BAO are. nnd'5.~00'pm., Monday firough Fr&1ay;'except'hoBdaya AR Inlaestod o are hurled ta'eAeni ~~e IaePetl b Ihe~Pro~ ORQMANCEN0.2QdPi SY AMEfi~91O GITAFTER 39 AFTF I{RiTER3 RETIREMENT SYS?EYfi SECTION 33.69 'OP'THkaAL FC>Md3 Of SENEMTS'~TO PRO(+6)E FOR A 'POP-UP' FEATURE AS AN OR TtONAt. FORtI OF flETiREMENT BEtiEfti UPCN THE ECECTNiN QF A MAN MEtpeER; PRQYIOiNp FOR SEYERABMY; FOR UlCLUSIUN W CITY CODE; AND:AN EFFECTIVE DATE INiD',NANCE~N0.2148'::: ~ = ATi CN46tNANCE C1f THE CtTY COM• MISSION OF THE CITY ~ LTELRAY . Of ~' 'kDMtNISTRANON", TO PROYlOE FOR A CITY GOt+YdISSIONER TC SEflYE AS AN APPOWTED A1ENi' SER Of TNF BCAAD OF TRU5- TEES; PRt7V14W0 A CENERAL~ R6 PEALER CLAUSE; A SAVINO5 CLAUSE; AND AN EFFECTIVE GATE 6RDINANCE N0. 72~ PtRN'~OF 'AOMtN73TRATION DY RET MEtiT COMMITTEE`; TO AM Bt>Apl7 MFb1SERSN~; PROYC A GENERAL flEPEALER CttK75 VALIDITY CLAUSE;,ANO~til' FECTIVE OATE Mea9e 6a aduASrd. d 1 ran ppael 18 eW Me ._._. _.- PUBLFSF#:Ttertrday, Am123, 2006 Bola RetoNOdniy BeatA Nacre I~~IEI~Z(JRANDLTII~I TO: Mayor and City Commissioners FROM: Susan A. Ruby, City Attorney DATE: April 16, 2009 SUBJECT: AGENDA ITEM 12.A. -REGULAR COMMISSION MEETING OF APRIL 21.2009 ORDINANCE NO. 20-09 ITEM BEFORE COMMISSION The item before the City Commission is Ordinance Na. 20-09. BACKGROITND This ordinance provides far an optional form of benefit known as the Pap-Up option. This provides an additional, voluntary option far members who select a joint and survivor farm of benefit. Under the joint and survivor benefit, the member elects to receive a reduced monthly pension far life, and if helshe dies, the joint pensioner continues to receive 75%, 66.66°!° or SO°lo of the member's benefit (based on the member's election) for life. Under the "pop-up", the member's monthly benefit would be actuarially reduced (a further reduction of the already reduced joint and survivor benefit). Then, if the member's joint pensioner dies before the member, the member's benefit would increase to the straight life annuity amount. Based an the actuarial reduction of the member's benefit, the actuary has certified that this change will have na cast impact. The DROP plan ardinance is not before you at this time far your consideration, per your direction at the workshop meeting. RE.CMENDATION City Cornrnission discretion. ORDINANCE N0.20-0} AN ORDINANCE AMENDTNG THE CODE OF ORDINANCES OF THE CITY OF DELRAY BEACH, FLORIDA, BY AMENDING CHAPTER 33 "POLICE AND FIRE-RESCUE DEPARTMENTS" AT ARTICLE IV "CITY POLICE AND FIREFIGHTERS RET112EMENT SYSTEM" AT SECTION 33,63 "OPTIONAL FORMS OF BENEFITS" TO PROVIDE FORA "POP-UP" FEATURE AS AN OPTIONAL FORM OF RETIREMENT BENEFIT UPON THE ELECTION OF A PLAN MEMBER; PROVIDING FOR SEVERA$ILITY; PROVIDING FOR INCLUSION IN CODE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Commission of the City of Delray Beach desires to amend the City Police and Firefighter Retirement System {"System") to provide fora "Pop-Up" feature as an optional form of retirement benefit upon the election of a member; and WHEREAS, the City Commission has reviewed the actuarial impact statement and finds that it is in the best interest of the City and its employees to amend the Retirement System. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA AS FOLLOWS: Section .1. Recitals Adopted. That each of the above stated recitals is hereby adopted and confirmed. Section ~. City Code Amended. Section 33.63 "Optional Forms of Benefits" of Article IV "City Police and Firefighter Retirement System,'" of Chapter 33 "Police and Fire-Rescue Departments" of the City Code is hereby amended to read as follows: See. 33.63. OPTIONAL FORMS OF BENEFITS. Each member entitled to a normal, early or disability retirement benefit shall have the right at any time prior to his actual retirement to elect to have his benefit payable under anyone of the options hereinafter set forth in lieu of the benefits otherwise provided herein, and to revoke any elections and make a new election at any time prior to actual retirement. The value of optional benefits shall be actuarially equivalent to the value of benefits otherwise payable. The member shall make an election by written request to the Board of Trustees, this request being retained in the Board's files. {A) Option I..Ioint and Last Survivor C7ption. A retiring member may elect to receive an actuarially adjusted retirement benefit during his lifetime and have such retirement benefit {including seventy-five {?5} percent, sixty-six and sixty-six one hundredths (66.66} percent or fifty {SO} percent thereof} continued after his death to and during the lifetime of a designated joint pensioner. The election of Option 1 shall be null and void if the designated joint pensioner dies before the member's retirement, unless the member designates another joint pensioner in accordance with Subsection 33.61 {C}. In addition, the member may elect to add a "pop-up feature" to such joint and survivor option. If the member elects to add a "pop-up" feature to his joint and survivor option, then, upon the death of his faint ,pensioner, the amount of his monthl~payment will be increased to the amount of a straight life annuity and such amount will be payable as of the first da~of each month after the death of his ioint pensioner for the remainder of his lifetime. A member electing to add the pop-up feature to his joint and survivor option will have his monthly benefit under this Option 1 actuarially reduced to take into account the addition of the pow-up feature. {B} Option 2. Ten Years Certain and Life TJ~ereafter. A retiring member may elect to receive a retirement benefit with one hundred twenty (120) monthly payments guaranteed. If, after retiring, the member should die before the one hundred twenty {120} monthly payments are made, payments are then continued to his designated beneficiary until one hundred twenty (120} payments in all have been made, at which time benefits cease. After expiration of the one hundred twenty {120} monthly payments guaranteed, should the retired member be then alive, payments shall be continued during his remaining lifetime. Notwithstanding any other provision of the plan to the contrary, this option {Option 2} shall be the normal form of benefit for unmarried employees who retire from active service on or after December 31, 1999. {C} Option 3. Other, In lieu of the other optional forms enumerated in this Section, retirement benefits may be paid in any form approved by the Board so long as actuarial equivalence with the benefits otherwise payable is maintained. Section 3. Severability. The provisions of this Ordinance are declared to be severable and if any section, sentence, clause or phrase of this Ordinance shall for any reasons be held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining sections, sentences, clauses, and phrases of this Ordinance but they shall remain in effect, it being the legislative intent that this Ordinance shall stand notwithstanding the invalidity of any part. Section 4. Inclusion in the City Code. It is the intention of the City Commission, and it is hereby ordained that the provisions of this Ordinance shall become and made a part of the Code of the City of Delray Beach, Florida; that the sections of this Ordinance may be renumbered or re- lettered to accomplish such intentions; and that the word "Ordinance" shall be changed to 44C'ieLtion" or other appropriate word. 2 Section 5. Effective Date. This Ordinance shall take effect immediately upon passage by the City Commission at second reading. PASSED AND ADOPTED in regular session on second and final reading on this the day of , 2QQ9. ATTEST MAYO R City Clerk First Reading Second Reading M4 ti w 4 \~. w ~....i ~~~ L~WIS, ~~..llVIJtYIl11Y OI XY~~I~EF\r f.~. , i i REPLY T4: TALLAHASSEE 141iEMC?RAS~'llX~1~I TO: Susan Ruby, City .Attorney City of Delray Beach FROM: Jim Linn DATE: April 2, 2049 RE: Proposed Police/Fire Pension Changes As requested, I have reviewed the two proposed ordinar-ces amending the policelfire pension plan, and the accamganying, actaatia] statements, that were enclosed with Charles Jeroloman's letter to you dated March 20, 2009. The proposed amendments are as follows: 1. Extending the DROP period from 5 to 7 years. The DROP extension would apply to current DROP participants and those who enter the DROP in the future. This ordinance also extends the maximum years of service a DROP participant, can leave from 30 to 32. 2. Adding a "pap-up" option, which a member who selects a joint and survivor benefit. option could select. Under the "pop-up" the member's monthly benefit would be actuarially reduced. Then, if the member's joint pensioner dies before the member, the member's benefit would increase to the straight life annuity arrlount. My comments an the proposed amendments follow, DROP Extension -the DRC}P grogram, which was added to the pension plan in 1994, allows members to "retire" far purposes of the pension plan but continue working for the city for up to 5 years (the propa;~eci ordinance would extend this to 7 years). During the DROP period, the member's monthly pension benefit is paid into a DROP account in the pension fund, and is invested among several different investment options selected by the member. A# the end of the DROP period, the member mu;~t ttinate city employment, and the DROP account balance is paid tc} the member {or it maybe rolled over into an IRA oz other qualified plan, at the member's direction}. Helping Shape Flctrirla's Future BRADENTQEy ~Ar.KSaNYILLE TALLAAAS5E[: WEST PALE41 BEACH IQCIi 3'~ Avenue WesC 244 Riversid¢ Avenue ?6{IO CantenniaE Place 17C1E1 PaEm Beach Lakes BEvd. Suite Ca70 Suite I50 Suite 100 Suite E 000 Htxuientun, Fl.. 342c)5 .laeksunviltc, FL 322112 Tallahassee, FL 323pS-0572 it~csiPaEm Beach, FL. 3.3dt)E {94E) 708-4C}40 (9Q4i 353-64EU E8S01222-5702 {S6E}64f}-t)820 E~ux: {~74E) 7018-4)124 Fax: {904) 353-76E9 Fax: {858) 224-9242. Fax: {56 E) b4t}-8202 www.llw-law.com January 21, 2009 Page 2 According to the plan actuary's letter of Janu~sry 13, 2009, "there is no generally acceptable way of quantifying the [cost] impact of extending the DROP period." Translation: extending the DROP period from 5 tc> 7 years may or may not increase the City's pension costs aver time. Because employee contributions are fsxed in the pension plan at 6% of salary, any cost increase resulting from the DROP extension will be borne by the City. Although the actuary states he will "gladly sign a letter of no financial impact," he also states that extending the DROP may "indixectly alter participant behavior, which could. have positive or negative consequences to the plan." The City is currently contributing 37°l° ofpayroll to the policelfire pension plan, and this contribution rate can be ezc~pected to increase aver the next several. years as a result of the investment losses the pension fund has suffered in the past 18 months. Bottom line: extending the .DROP period from 5 to 7 years may 'increase the City's pension costs is the future. It is also possible that. the City's costs could decrease as a result of this change. The only way to ensure that the City's p+~nsion contributions will not increase as a result of this change would be to add language to the artlinance stating. that any future cast increases resulting from the DROP extension would be paid for through an increase- in employee contributions. "Pop-Up'~ ©ption -this provides an additional, voluntary option far members who select a joint and survivor form of benefit. Under the joint and survivor benefit, the member elects to receive a reduced monthly pension for life, and if he/she dies, the joint pensioner continues to receive 75°1°, 66.6b°~o or 50°l0 of the tnezx~ber's benefit abased on the member's election) for life. Under the "pop-up" the member's monthly benefit would be actuarially reduced (a further reduction of the already reduced joint and survivor benefit). Then, if the member's joint pensioner dies before the member, the member's benefit would increase to the straight life annuity amount. Based on the actuarial reduction of the member's benefit, the actuary has certified that this change will have no cost impact. A number of city police and firefighter pension plans in Florida have adopted a "pop-up" option similar to the one that. has been proposed. Please call me if you have any questions. +CITY 4F I~E,LRA,Y BEACH P©I.ICE ~ ~'IA~EIGSTERS RETIREMENT SYSTEM r~ Hu;~t;wflon eQUZ~YaRn AFIRAYl3l~iCN. FI.tJRIlJ1A3.3~d5 Tts.G,~FHt}N~FJt}tX: 3t51.2d~.~7t~7 Ariarch Zfl, 2009 F:rrurii: tlttmvt~,J~crrinxuYts~tt~t Suess Ruby, IJsq. ~y ~~Y City of Aelray Beach t~NwiA~„~ I7alray Beach, Flarlda 33444 Dear Ms. Ruby: The City of rx>ray Basch Falice attd F,~g3krters' Rotirc~aaent System, of Ttusce~', is raguesting that the City Commieelan amend Cl~dr 33, `Falice sari Firo-Ressatc bap~trtmente', Subheading `Pcrosimas', of the CAde of Ord by aaxnsdiag 33.63 ~~ Farms of Bene~te to allow fora `F~~p-Up' furs as $ai +ap~tatal fc~tt of r+stirat benefit for meamber selection. Attached to the prapased~ erdinanc~ mre two . rlsted January 13, 2{}09 a~ Fesbntsry 1?, 2009,, from Facer 8c Faster sl~~laiin~ that this opttc~nat forth of psym~t could be a+cl to the Plan vrit~mut inc~rtitYg a~cldittcmel .~~ 1'he Pop Up Fmvisism xmuld ~ an a~usrial equivaloat to the normal fcum of t, ~ woro~ld be sta diffieremt thane the se~ecdoa of say of the other aptians affeced by the Plan. 'We ask that you pieas~a place this itada an tha Cit~- Commission Workshop Mceting agenda far April ?, 2l)t)9 for nvicw and diecuesion. Should you require further infonmatioa please do not }aeaitaLa to contact me ffi {561) ?6?-bt}99. Sincerely y. e~ ~ af'T'n~tees' Foster&Foster~ Atat,arial cor~ultarafis for Public Pa~n~r, Plans January ~ 3~ 2008 }(1A EMAtL AND MAIL E3oard of Tnrstees City of t~elray Beata Police S ire Tn~st Rand 60f1 Homewood Boulevard Deltay Bch, FL 33x45 tae: Po~a-Up Opl~l Form of Pa~rman# Clear Board: As requested by the Board, this fetter ~ to ct~rtit1+tfuit adding a'Pop-Up' aptionai farm cf pey~rnertt could fie added to the Plan without .incurrir~ addl#iona[ funding txasfs to the pn~rarn. The'Pop-Up" optlon wac~d be detarmlrae+d an arialiy equivalent beine~ t+D the normal farm aR benefit so the. rriembera' eledlon of th~ option would have no flnarn~al bearing on the Plan and would fie no dyferent than #~e selection .af any of the other options otfenact I'y the Pfau. Additltmagy, the Boant requeaded we review the prop~~sed Ordinance aging the "Pttp- Up' as an opi~al festtare to the Joint and fas# Survivor (`J8~S"} options currenNy offerrad by the Plan. Based t:n th~ review, we have two issues we v~rou~ tike bo faring to your a~ltentian: 1} t}tar r+aux+mmendation is the benefit amt~mt revery to the actuarially equivalent single life annufiy upon the death of the joint annuiltant rather than tfw 10=year certain and life x'14-yr CL"} beret. 'f~a Plan dose not offirdr a Quarantee~d payment period for those members electing a JSS opdon so adding this featt~ne would be tnconslstsnt with the t~tions txam~Y available. Further, the certain period wide a level of complexity.that txacakt make it confusir~ for members and more difMiarlt b administer. As an example, in order fie maintain sctuariaily equlva~nce, the 1~-year gusranieed period would start upon file first J8S payment ate na~t sit the first payment after the tfe~t o} the joint s~urunuitant. If the Joint annuitant dies after recelvtr~ nine years aft payt+nettts, the member would be entitled to UZe higher benefit amount for the naanainder of his Ilfefirne with one year of guaranteed payments; With ail tiffs being said, h i!s persiecth- acceptable bo revert to the 70-yr CL benef>t. V11e wil! use whichever Corm is selet~ed in our cafwletitane to maintain acha~arlat equfvafenae. 2} iftf~ E3~oatd chooses to revert tQ ~ 9#}-yr CL benefd, we r~etx~rnmerai that some modifrcat<one be made to the language ~ the Ordinance. Pirst, we reccammend that the reference to the 1tf-yr C;i, benefrt ae "the normal form ~ faenefit"' should_ be removed. The 1ti!-yr CL is the normal form of beutefit 13420 Parker t<orrxnana Blvd., KSt,tlt~ 104 • Flirt Myara, Ftarlda 33812 ~ 238'-#33-5500 "Fast 238~48f-Ofk34 • www fostar~aa#~:csr-m 8oetrd of Trustees Page ~ January 13, 2gt?9 for single par~dpants, however, the normal farm cf benefit for marrfied participants ~- the 6t?96 JtT~S option. Also we f~ that the reversion to the 1 t1-yr ~. benefit should be +ctariiied to avald confusion rogarding the guaranteed period. tlVe necAmmend that it stertes, "fhe increased amount wail be payable vn the flr#t day of each month after the ds~#t of the jc~t arinulEant for the member's ~fettme ~ ~~ monthly guaranteed payments including those payments made prior to the death of the joint ann~tent, whlc~ever is ~rnger." ff the Board would like to n~eive numerical eaa~mpiea or further explana~tian as to how this benetZt would be oaksiJatsd, please do riot Ftesita~ to contact me. EA, MAMA gRNldmt Foster&Foster~ Actuaritil Oa+aultsltts 10r Publle Pstltslon Pltitu February 17, 2009 Ma. Anse Woods Gty of Ddray Beach 609 Hasnearood Boulevard Delray Beach, FL 33445 Ra City of)belray Beach Police OfHcae' sad Fuefightrre' Retitanmt Play Dear Mne: We have revieaved the proposed Otd><taace which aIIowe fior the adaitio~n of a PopXJp actwrially equivrtleat optfoaal forra of payment. CFe h~rve also t+eviaaved the prdpaeod Vtdiaaace which inci+eaeoe the number of years a Mcmber.atd x+aaain is the DROP. It is one opinion that these proposed to the Plan t+vdl have ao'impact oa the aaa<mnptieaa need is det~tmieiiag the requirements of the P~Bfi~• Because these p ed changes do not impact :our actuarial tioas, they do not elmage the valuation results t id oar oa, therefore, that Actus~l~ ' ,Impact S~tana~cts are ~aot requited is support of their adnptiona. H~avewer, air~oe the Divisr~n of Retitetnes~t mowt be aware of the t provuaone of a!1 peasioa pm , we recotamend that You aead a copy of this Iett=r and.a copy. of the fully esecutad O~iOe+iiaance to of tine foIlowusg offices: Mt. Chatks 5tavia ,Bateau of I.ocai Retiretneat Systetna Division of Retiretaant P. p. Aoz 9000 Tapahaseer, FY. 3?3Y5-9000 Pattiaa 5hoemakrt 11~iuuupst Police and Fire Peasioa Trtaat Funds Division of Retimmeat P.O. Boz 3010 Tallaht-esec, ftL 32315-3010 If you have say queatioae, please let me ]ma~v~ Siaarelq, Asadlry R. Heinticha, FSA, ]?A, l4(AAA ARH/loob SILO t~ari~ar Commons tthd„ 8u10a 104 Fort tlyets, FL »1S ~ :(~ Oi9~00.19e: ~I 4d1-0d34 • watrtoaterdostetroont MAY 24 '96 12 ~ ISM S6GZ8J{, P. A. LAW CFA ~iCHWI-Ett~z, Go~.fl, CoH~, Z~x~r~sN &c KarI,BR, P,A. 5~ S. W. Baca IL-~ror+ &ro~.evt-aa &xw RA~raty, FL 33432-4708 eew.aa 4 acr~r+ JOBLL7~ CApR6RMA#1 MiG~ I, IKSTL@T1 " AijA[~F F}.9GMWARtZ AONAt.O it IAK+i11IN ii/1Q01ti Ff. 01.IOK67i0H, 01~ COilN9&l. ALSO ACIMt'tT'Lta O~i Cili'TEiiQT CP GOGLIF+iB(A ENO ptiNt 1R'ipiC • . Aso -~oMnrt~ in r,~iaetiF~rC1' QF co~u-r,eu Mi4 PEMN9YWAWIA Susan A, ruby, Esquire City A#torney's t}~ice 200 N'. W. First Avenue I?eiray Beach, Florida 33444 P. 12 dew ~ o~P~a t~~ ntols~rsw`r iK,va NlANNA69ETi ?MeYl~l"dl1K ttC94 SCicA fl+ttTr~ {~0?! 9d'1~iA6 ~~ l4~~ I~ {~~ !'T. LAW93iGw.i {905} 1~,OOt90 FAX (~~ 9i1.07?0 May 14,1996 Ire: A$C Carpet Company of FloridalCity of E)elray Heach Bear Susan: T'hsnk you for your Iett,Mr of'May 10, 1996, which etas accompanied by t]Eu l~~'ay 9,1996 letter froth the Property Appraiser's i~ffice. flat client is wi?rling to aclmowle;dge anti adept the appraised value cf $I,?St},000,00 for the purpose of cal+~ulatiug tha "talc stop" in paragraph 3(c) of the .Ecanotnic Ituentive Grant Agreement dated April 19,1946. . , The Tax Appraiser's office advises us that the millage rate for properties within the City of Delray for 1996 is 2x.701 r. Applying this rate to the aforemeutiorted appraised value yields a current tax based on the Property Appraiser's estiautte of X43,226,43, As aontccaplated in the Ament, I have preparai and eticloee a praposcd Exhibit "A"' ~ bI ;attached end inco:eparated into the Agreem+eut, Please advise whether the enclosure meets tsar City's approval. Very txury yours, Edward B. Cohen E$C/dcc cc: ltrfr, Scott plsryim rvfttcslull Farber, Esquire t"..- t 3 05!14!98 T'U$ lU: 10 tTY/AY nrn ao, ("~iY 14 '96 11 ~ 16AM S~CZ&K, P. R. _ . The wed amount of 1996 ad valor+ata taxes to sdrve as the current tax as estimated by the Progcrty Apgraeser is accord$ttrre with peragcaph 3{c) of the Ags+ecnleut is $43,226.93. APPRt~VEU .A-ND ACKNOWLEDC~BD: ABC Carpet Company of Florida„ Inc. By: CITY OF DELRAY REACH, FLORIDA BY3 Mayor By: City Clexk 05/tdts~~t ~rrrF ,n.,n .mrsr,r ~~., ....._.