08-02-10 Workshop MeetingDELBAY BEACH DK
CITY COMMISSION w'"~' "~ `" I
CITY OF DELRAY BEACH. FLORIDA
WORKSHOP MEETING -MONDAY, AUGUST 2, 2010
6.00 P M. FIRST FLOOR CONFERENCE RQOM ~~3
soon
The City will furnish appropriate auxiliary aids and services where necessary to afford an individual
with a disability an equal opportunity to participate in and enjoy the benefits of a service, program,
or activity conducted by the City. Contact Doug Smith at 243-7010, 24 hours prior to the program
or activity in order for the City to reasonably accommodate your request. Adaptive listening devices
are availaf>lc f~~r r„ccti,l~s in the Commission Chambers.
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WORKSHOAAGENDA
1. FY 2011 Budget
2. Commission Comments
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Please be advised that if a person decides to appeal any decision made by the City Commission with
respect to any matter considered at this meeting, such person will need to ensure that a verbatim
record includes the testimony and evidence upon which the appeal is based. The City neither
provides nor prepares such record.
Page 1 of 1
MEMORANDUM
TO: Mayor and City Commissioners
FROM: David T. Harden, City Manager
DATE: July 27, 2010
SUBJECT: AGENDA ITEM WS 1-WORKSHOP MEETING OF AUGUST 2.2010
FY 2011 BUDGET
ITEM BEFORE COMMISSION
The City Commission needs to reach at least a majority consensus on a proposed millage rate for FY
2011, and on direction to be given to staff on the type of budget reductions to be considered in
balancing the FY 2011 budget.
We have attached a ranking by function as well as a breakdown by function which shows which
functions are mandated, the extent of cost recovery, and the extent to which each function supports the
Commission's long range goals for the City. Projections of pension costs are also provided.
BACKGROUND
Additional budget reductions developed by staff over the past two weeks, together with using
$1,500,000 in undesignated fund balance to fund capital projects, have reduced our budget gap for FY
2011 from $7,272,970 to $4,605,650. The rollback rate of 8.133 mills would generate $5,618,650 in
additional revenue, which would more than close this gap. However, we have outlined for the
Commission a way in which any millage increase could be avoided. Some of the steps outlined which
involve changes to pension plans and other benefits are painful to make, but I think must be made
sooner or later since the projected increase in pension funding requirements is unsustainable.
The Commission has also received recommendations from the Financial Review Board and from
employees on how to balance the FY 2011 budget. Staff is seeking direction on what alternatives, of
the many offered, the the Commission wishes to pursue. Staff is also working on additional options for
your consideration.
httn~//rniwehflnl /C".rnmcil A venc~a/Rlnesheet.asnx?TtemT1~=3559&Meetin¢T1~=298 7/30/2010
City of Delray Beach Fiscal Year 2010/11 Budget Request
Breakdown by Department and Function
Mandated to provide functbn 0-4 scok (4=5tate/Fedem! mandate, 2=ChoRer, l=0rdinance/ResolutJon or Controc4 O=No mandate)
Cost Recovery ojPoncfbn 0-4 Scok based on % (4=7511X1% 3=50-74Xy 2=25-49% 1=1-24%)
P~lorlry Results Total based on how essential the junction h to ochkving the 6 Goals set by the Commission at annual Goal Setting Session. Max Score 32.764
Department Mandated Cost Priority
Request to Provide Recovery Results
Cost Function of Function Total
City Commission $286,470
Legislative 156,130 4 0 32.764
Administration 2,340 0 0 7.114
Contractual 101,300 0 0 6.114
Special Events 26,700 0 0 10.306
City Manager $618,130
City Manager $521,450
Management 299,875 2 0 16.728
Administrative 119,590 0 0 8.422
Commission Administrative Support 29,915 0 0 8.922
Agenda 72,070 2 0 2.769
Public information Office $96,680
Publlclnformatlon 55,310 0 0 12.652
Hometown Connection 13,450 0 0 10.96
News for Neighborhoods 13,470 0 0 10.96
Audio/Visual Services 14,450 0 0 4.461
City Attorney $983,510
Attorney Services 717,955 2 0 9.883
Support Services 265,555 0 0 4.576
Human Resources $542,680
Management 145,862 4 0 8.422
Administrative 261,996 4 0 9.499
Training & Development 134,822 0 0 8.422
City Clerk $585,940
Management 110,465 2 0 7.845
Administration 121,831 2 0 7.845
Agenda 71,472 2 0 6.153
Advisory Board 68,272 1 0 11.691
Cemetery Administration 40,308 1 0 7.691
Municipal Lien Search/Residency Card 60,681 0 4 4.422
Elections 48,528 4 0 6.73
Records 64,383 4 0 9.383
Finance $3,335,470
Finance Adminlstrat/on $1,693,950
Management 296,867 1 0 1.692
Accounting 855,647 1 1 3.384
Budget Administration 92,589 1 0 1.692
Treasury Management 138,036 1 4 1.692
Purchasing 154,137 1 0 1.692
Administrative 156,674 1 0 1.692
City of Delray Beach Fiscal Year 2010/11 Budget Request
Breakdown by Department and Function
Mondoted to provide function 0-4 scale (4=Stote/l~edera! mandate, 2=Charier, l=Ordlnonce/Resolution or Controc4 ~No mandate)
Cost Recovery of Ponctlon 0-4 sro/e based on % (4=75-100% 3=50-74% 2=25-49% 1=1-24%1
Pdorlty Resuts Total based on how essentla! the functbn is to achieving the 6 Goals set by the Commission at annual Goal Settlng Session. Max Score 32.764
Department Mandated Cost Priority
Request to Provide Recovery Results
Cost Function of Function Total
information Technology $1,642,520
Technical Direction 276,458 0 0 1.692
Administration 50,698 0 0 1.692
Webslte Malntenance 140,583 0 0 16.382
Programming 130,549 0 0 1.692
Software Support 401,099 0 0 1.692
Hardware Support 488,556 0 0 1.692
Field Support 153,577 0 0 1.692
Administrative Services $4,183,480
Administrative Services Adminlstrotlon $656,820
Management and Administration 131,539 0 0 10.114
Special Events 133,880 0 2 14.767
Telecommunications 140,418 0 2 6.768
Customer Relations Management 42,163 0 0 9.037
Building Equipment and Site Malntenance 50,950 0 0 5.076
Utilties 157,870 0 1 3.384
Clean and Safe $234,340
Cleaning 114,170 0 4 13.959
Landscape Maintenance 120,170 0 4 13.959
Tennis Stadium $2,160,060
Management and Administration 19,500 0 0 9.844
Stadium Malntenance 42,890 0 0 9.844
Tennis Tournaments 2,097,670 1 2 9.69
Tennis Centers $1,132,260
Management and Administration 198,390 0 4 6.768
lessons 380,820 0 4 6.96
Pro-Shop 189,560. 0 1 6.96
Court Maintenance 202,050 0 2 6.96
Building Malntenance 161,440 0 1 6.768
Police Department $28,802,370
Support Bureau $6,317,190
Management 761,130 0 0 22.073
Internal Affairs 238,360 4 0 7.23
Legal Advisor 228,500 0 0 1.692
Training Unlt 782,410 4 1 14.575
Accreditation 105,830 0 0 7.46
Administration 237,750 0 0 3.961
Public Information Officer 156,790 0 0 11.691
Communications Section 2,093,680 0 1 11.921
Records/Police Information Section 975,420 0 1 7.345
Information Technology 330,140 0 0 6.268
Facility Maintenance 376,820 0 0 1.192
Volunteer Program 230,360 0 4 15.574
City of Delray Beach Fiscal Year 2010/11 Budget Request
Breakdown by Department and Function
Mandated to provide /unction 0-4 stole (4=State/Federal mandate, 2=Charter, i=~rdinance/Resolutton or Contract, O=No mandate)
Cost Recovery of function Q4 smle based on % (4=75-100%, 3=50-74% 2=25-49% 1=1.24%)
Priority Results Total based on how essential the (unction is to achieving the 6 Goah set by the Commiss/on at annual Goal Setting Session. MoxScore 32.764
Department Mandated Cost Priority
Request to Provide Recovery Results
Cost Fundlon of Function Total
Operations Bureau $12,285,180
Operations Management 169,430 0 0 23.765
Community Patrol 11,904,830 0 1 26.995
Crisis Response Team 4,630 0 0 2.884
K_g 299,440 0 0 6.845
Investigations 2,958,710 0 0 22.688
Crime Scene Unlt 466,180 0 0 6.268
Vice, Intelligence and Narcotics 1,224,760 0 0 11.536
Crime Analysis Unit 149,990 0 0 7.46
Community Response Division Management and Task Force 2,640,610 0 1 21.035
Community Service Officers 568,240 0 1 12.498
Special Operations Section 805,650 0 1 17.42
Coalition for Community Renewal 87,860 0 1 11.191
Atlantic High School Criminal Justice Police Academy 173,500 0 2 10.23
Dive Team 13,170 0 0 2.884
SWAT Team 100,740 0 0 5.768
Evidence Unit 134,080 4 0 5.076
Traffic Unlt 583,360 0 1 19.612
Fire Department $24,239,160
Fire Administration $2,236,080
Management 927,970 1 0 16.613
Administration 496,430 1 D 14.229
Building Maintenance 423,130 0 0 7.691
Training 388,550 4 1 12.344
Highland Beach $3,127,440
Fire/EMS Services 3,127,440 1 4 17.036
Fire Operations $17,439,290
Management 811,184 1 0 18.728
Fire/EMS Services 16,097,386 1 1 18.728
Hazardous Materials Function 227,920 4 4 14.574
Dive Rescue 128,750 0 0 8.96
Technical Rescue 51,050 4 0 8.96
Special Events Support 84,870 0 0 23.188
Fitness 38,130 4 0 8.96
Emergenty Management $17,370
Training 1,230 4 0 25.996
Community Emergency Response 16,140 0 0 13.652
Fire Safety $1,418,980
Management 208,148 4 0 32.764
Administration 63,798 0 0 11.114
Inspection 843,076 4 1 30.61
Fire investigations 19,240 4 0 16.113
Plan Reviewer 90,470 4 4 27.61
Community Education 185,648 0 1 19.074
Special Events Support 8,600 4 0 20.842
City of Delray Beach Fiscal Year 2010/11 Budget Request
Breakdown by Department and Function
Mandated to provide function 0-4 stole (4=State/federaf mandate, 2=ChaRer, 1=0rdinance/Resolutlon or Contract ~No mandate)
Cost Recovery of function 44 stole based on % (4=75-100% 3=5474% 2=25-49% 1=1-24%J
Priority Results Tomf based on how essential the fundlon h to achieving the 6 Goals set by the Comm/sslon at annual Goal Setting Session. Mox Score 32.764
Department Mandated Cost Priority
Request to Provide Recovery Results
Cost Function of Function Total
Planning and Zoning $1,213,340
Management 271,205 1 0 25.918
Administrative 142,965 0 1 14.228
Long Range Planning 215,300 4 1 27.534
Current Planning 583,870 4 2 24.38
Community Improvement $2,841,580
Community Improvement Administratlon $483,630
Management 309,040 1 0 30.072
Administratlon 113,925 0 0 21.15
Education 60,665 0 0 23.266
Building Inspection $1,354,180
Administratlon 153,294 4 4 20.419
Business Signs 53,070 1 3 12.267
Permitting 386,069 4 4 19.919
Plan Review 184,987 4 4 19.419
Inspections 492,006 4 4 18.227
Landscaping 84,754 0 2 22.188
Code Enforcement $1,003,770
Administration 90,306 0 0 22.227
Code Enforcement 692,619 0 2 22.227
Rental Housing 136,626 0 4 17.381
Business Tax Receipts 84,219 1 4 7.845
Environmental Services $4,790,070
Engineering $665,800
Management 137,349 0 0 14.074
Administration 174,835 0 1 6.114
Project Management 103,248 0 4 13.574
Project Inspection 145,025 0 1 13.574
GIS Development 105,343 0 0 8.998
Pub!!c Works Administratlon 5289,950
Management 123,900 0 0 12.382
Administrative 66,050 0 1 7.306
Streets Maintenance $837,500
Management 174,228 0 0 7.306
Street Repair 184,098 0 0 16.035
Pothole Repair 81,134 0 0 16.035
Curb Repair 67,994 0 0 11.728
Sidewalk Repair 268,572 0 0 16.304
Special Events Support 61,474 0 1 17.958
Traff/c Operations $435,700
Management 78,034 0 0 7.46
Sign Maintenance 139,119 0 1 10.69
Striping 82,019 0 0 7.306
Special Events Support 73,349 0 1 17.958
Banner Maintenance 63,179 0 0 15.804
City of Delray Beach Fiscal Year 2010/11 Budget Request
Breakdown by Department and Function
Mandated to provide function 0-4 stale (4=State/Federal mandate 2=Charter, 1=0rd(nonce/Resofutlon or Contract 0=!Vo mandate)
Cost Recovery of Function 0-4 scale based on %(4=7530096, 3=SO-74~ 2=25-4996,1=1-24%J
Priority Results Total based on how essential the function is to achieving the 6 Goals set by the Commission of onnuo! Gaal Setting Session. Max Score 32.764
• Department Mandated Cost Priority
Request to Provide Recovery Resuts
Cost function of Function Total
Street Lighting $827,220
Street Light Maintenance 129,490 0 4 19.534
Street Lighting 697,730 0 1 23.38
Parking Facilities $1,224,490
Administration 109,110 0 0 12.728
Garage Operation and Maintenance 604,355 0 1 19.188
Bus Shelter 10,000 0 0 13.92
Shuttle Bus 300,000 0 4 12.728
Meters and Parking Lots 201,025 0 4 20.88
Building Maintenance $609,410
Management 113,570 0 0 3.384
Electrical 191,010 0 0 8.306
Operation and Maintenance 197,120 0 0 5.076
Construction 90,880 0 0 1.692
Special Events Support 16,830 0 1 16.766
Parks And Recreation $9,886,100
Parks And Recreation Administration $638,510
Management 204,990 1 0 25.534
Administration 143,937 1 1 25.534
Project Management 84,850 1 1 18.612
Finance and Budget Coordination 88,230 1 0 8.306
Park Security 116,503 1 0 16.458
Out o/School $588,010
Management 74,365 0 0 13.691
Administration 62,575 0 0 7.46
Site Operation 48,550 0 1 14.075
Child Supervision 130,060 0 2 14.075
Program Activities 154,545 0 0 6.768
Field Trlp 97,085 0 4 6.768
Academic 9,120 0 0 12.998
Inclusion 11,710 4 0 10.383
Teen Center $255,660
Management 33,157 0 0 13.229
Supervision 94,635 0 0 13.229
Programs and Activities 78,389 0 1 15.959
Facility Operations and Maintenance 49,479 0 0 11.152
Athletics $466,010
Management 97,770 0 0 18.92
Administrative 31,060 0 0 14.382
Programs and Activities 152,120 0 1 24.842
Facility Operations and Maintenance 185,060 0 0 20.458
Spedal Events $139,240
Administrative 31,110 0 0 14.382
Special Event/Marketing 76,210 0 1 25.38
Programs and Activities 31,920 0 1 24.842
City of Delray Beach Fiscal Year 2010/11 Budget Request
Breakdown by Department and Function
Mandated to provide func[bn 0-4 scale (4=Stare/Federal mandate, 2=Charter, l=0rdinance/Resofution or Contract O=No mandate)
Cost Recovery of Functbn 17.4 srnle based on % (4=75-100% 3=5474% 1=25-4997(„ 1=1-Z4%)
Prlortty Resuks Toto! based on how essential the fundlon h to achteving the 6 Goals set by the Commission a[ annual Goal Setting Session. Max Score 32.764
Department Mandated Cost Priority
Request to Provide Recovery Results
Cost Function of Function Total
Ocean Rescue and Beach Operations $1,480,950
Management 55,805 1 0 22.688
Administrative 121,320 1 0 22.688
Public Safety 887,349 1 0 22.688
Supervision of Beach Operations 322,363 1 0 22.688
Programs and Activities 94,113 0 0 25.688
Community Center $297,560
Management 89,106 0 0 22.036
Administrative 70,907 0 2 18.652
Faclllty Operations and Maintenance 123,257 0 0 15.728
Community Center Events 14,290 0 0 25.418
Veterans Park $146,780
Management 31,727 0 0 19.42
Supervision 19,897 0 1 19.42
Programs and Activities 33,848 0 3 21.112
Facility Operations and Maintenance 61,308 0 0 20.65
Pompey Pork $944,480
Management 93,410 0 0 18.19
Administrative 136,808 0 1 32.764
Programs and Activities 180,574 0 1 18.19
Athletics 248,348 0 1 19.036
Facility Maintenance 285,340 0 0 17.19
Parks Maintenance $3,991,030
Management 114,390 1 0 18.458
Adminlstrat{on 102,556 1 0 18.458
Supervision 279,853 1 0 15.382
Irrigation 650,823 1 0 19.996
Equipment Maintenance 81,908 1 0 13.69
Equipment Operation 248,723 1 0 13.69
Tree Trimming 111,308 1 0 15.228
Faclllty/Building Maintenance 178,751 1 0 18.458
Genera{ Maintenance 2,222,718 1 1 18.458
Aquat/cs $382,340
Management 64,164 0 0 11.768
Administration 28,508 0 1 14.998
Programs and Activities 40,087 0 1 13.768
Water Surveillance 138,115 0 0 14.998
Pool and Faclllty Maintenance 111,466 0 0 13.921
Catherine Strong Park $178,910
Management and Administration 36,511 0 0 14.652
Supervision 27,106 0 2 14.652
Program and Activities 40,569 0 2 19.92
Special Events 44,274 0 0 19.92
Facility Maintenance 30,450 0 0 16.19
Cemetery $376,620
Supervision 79,917 1 1 8.922
Interments 88,777 1 1 9.999
General Maintenance 207,926 1 1 13.46
City of Delray Beach Fiscal Year 2010/11 Budget Request
Breakdown f}y Department and Function
Mandated to provide function 44 scale (4=State/Federa! mandate, 2~horter, 1=Ordinance/Resolution or Contrac~y 0=1Jo mandate)
Cost Recovery of Function 44 stole based on % (4=75-100% 3=50-749K, 2=15-49%r 1=1-14%J
Priority Results Total based on how essenNa/ the function is to achieving the b Goats set by the CommBslon at annual Goa! Setting Session. Max Score 32.764
Department Mandated Cost Prlortty
Request to Provide Recovery Results
Cost Function of Function Total
Miscellaneous $22.980
Mist Expend (UTB Visa, tax bill postage, bad debt, bldg mnt} 22,980 1 4 5.076
Grants $1,819,050
Mae Volen Contract 12,000 0 0 1.692
Mist Grants (e.g. fireworks, Comm Child Care, EPOCH) 158,800 0 0 7.076
Old School Square 194,750 0 0 17.382
Defray Beach Library 1,453,500 0 0 17.382
Debt Service $5,286,520
Required Debt Service 5,286,520 4 0 12.959
Transfers . $10,655,200
CRp, 6,456,030 1 0 27.687
Beautification Trust 835,000 1 0 17.612
General Construction 2,000,000 0 0 15.574
Neighborhood Services 149,430 1 4 20.535
Beach Restoration 15,000 0 4 17.15
07 Utlllty Transfer to Debt Fund 1,199,740 1 0 8.844
TOTAL GENERAL FUND REQUESTS $100,092,050
Functional Ranking from FY 2010 Budget Process with FY 2011 Budget Numbers
9
10
it
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
Division Function ~9.~I
City Commission Legislative 156,130
City Commission Administration 2,340
City Manager Management 299,875
City Manager Administrative 119,590
City Clerk Management 110,465
City Clerk Administration 121,831
City Clerk Agenda 71,472
City Clerk Elections 48,528
City Clerk Records 64,383
Finance Administration Management 296,867
Finance Administration Accounting 855,647
Finance Administration Treasury Management 138,036
Finance Administration Administrative 156,674
City Attorney Attorney Services 717,955
Administrative Services Telecommunications 140,418
Administrative Services Building/Equipment and Site Maintenance 50,950
Administrative Services Utilities Function 157,870
Information Technology Programming 130,549
Information Technology Hardware Support 488,556
Planning & Zoning Long Range Planning 215,300
Planning & Zoning Current Planning 583,870
Streets IVlaintenance Street Repair 184.098
Streets Maintenance Pothole Repair 81,134
Streets Maintenance Curb Repair 67,994
Streets Maintenance Sidewalk Repair 268,572
Traffic Operations Sign Maintenance 139,119
Traffic Operations Striping 82,019
Street Lighting Street Lighting 697,730
Building Maintenance Electrical 191,010
Building Maintenance Operation and Maintenance 197,120
Misc Misc Expenditures (UTB Vlsa, tax bill postage, bad debt, bldg mnt) 22,980
Debt Service Required Debt Service 5,286,520
Transfers CRA 6,456,030
Transfers Beautification Trust 835,000
Transfers 07 Utility Transfer to Debt Fund 1,199,740
City Manager Agenda 72,070
Human Resources Management 145,862
Human Resources Administrative 261,996
Gty Clerk Cemetery Administration 40,308
Finance Administration Budget Administration 92,589
Finance Administration Purchasing 154,137
City Attorney Support Services 265,555
Informatbn Technology Technlgl Direction 276,458
Information Technology Sokware Support 401,099
Information Technology Field Support 153,577
Information Technology Administration 50,698
Police Support Bureau Management 761,130
Police Support Bureau Administration 237,750
Police Support Bureau Communications Section 2,093,680
Police Support Bureau Records/Police Information Sec[ion 475,420
Police Support Bureau Informatbn Technology 330,140
Police Support Bureau Facility Maintenance i 376,820
Police Support Bureau Training Unit 782,410
Police Operations Bureau Operations Management 169,430
Police Operations Bureau Community Patrol 11,904,830
Police Operations Bureau Investigations 2,958,710
Police Operations Bureau Evidence Unit 134,080
Fire Administration Management 927,970
59
60
61
62
63
64
65
66
57
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
SOS
106
107
108
109
110
111
112
113
114
115
116
117
118
119
Fire Administration
Fire Administration
Fire Administration
Fire -Highland Beach
Fire Operations
Fire Operations
Fire Operations
Emergency Management
Community Improvement Admin
Community Improvement Admin
Building Inspection
Building Inspection
Building Inspection
Building Inspection
Building Inspection
Engineering
Engineering
Street Lighting
Parks and Recreation Administration
Parks and Recreation Administration
Athletic
Special Events
Athletics
Ocean Rescue
Ocean Rescue
Parks Maintenance
Parks Maintenance
Parks Maintenance
Parks Maintenance
Parks Maintenance
Parks Maintenance
Cemetery
Planning & Zoning
Code enforcement
Police Operations Bureau
Police Operatbns Bureau
Fire Safety
Fire Safety
Fire Safety
Code Enforcement
Code Enforcement
Pollee Operations Bureau
Ocean Rescue
Ocean Rescue
Planning & Zoning
Police Support Bureau
Fire Safety
Code Enforcement
Parks Maintenance
Parks Maintenance
Grants
Parking Facilities
Cemetery
Cemetery
Athletic
Athletic
Special Events
Building Maintenance
Community Center
Community Center
Community Center
Administration
Building Maintenance
Training
Fire/EMS Services
Management
Fire/EMS Services
Hazardous Materials Function
Training
Management
Administration
Administration
Permitting
Plan Review
Business Signs
Inspections
Project Management
Project Inspection
Street Light Maintenance
Management
Administration
Programs and Activities
Programs and Activities
Facility Operations and Maintenance
Public Safety
Supervision of Beach Operations
Management
Administration
Irrigation
Equipment Maintenance
Equipment Operation
Facility/Building Maintenance
General Maintenance
Management
Business Tax Receipts
Crime Scene Unlt
Traffic Unit
Inspection
Management
Administratlon
Administratlon
Code Enforcement
Community Service Officers
Management
Administrative
Administrative
Volunteer Program
Fire Investigations
Rental Housing
Supervision
General Maintenance
Old School Square
Meters and Parking Lots
Interments
Supervision
Management
Administrative
Administrative
Management
Management
Adminlstratlve
Facility Operations and Maintenance
496,430
423,130
388,550
3,127,440
811,184
16,097,386
227,920
1,230
309,040
113,925
153,294
386,069
184,987
53,070
492,006
103,248
145,025
129,490
204,990
143,937
152,120
31,920
185,060
887,349
322,363
114,390
102,556
650,823
81,908
248,723
178,751
207,926
271,205
84,219
466,180
583,360
843,076
208,148
63,798
90,306
692,619
568,240
55,805
121,320
142,965
230,360
19,240
136,626
279,853
2,222,718
194,750
201,025
88,777
79,917
97,770
31,060
31,110
113,570
89,106
70,907
123,257
120
121
122
123
1za
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
1az
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
Police Operatbns Bureau
Fire Safety
Administrative Services
Building Inspection
Pollce Operations Bureau
Pompey Park
Pompey Park
Pompey Park
Pompey Park
Clean & Safe
Fire Operations
Out of School
Out of School
Out of School
Out of School
Out of School
Transfers
Parks and Recreation Administration
Public Works Administration
Public Works Administration
Parking Facilities
Transfers
Parks and Recreation Administration
Engineering
Englneering
Police Operations Bureau
Information Technology
Clean & Safe
Emergency Management
Englneering
Administrative Servkes
Streets Maintenance
Traffic Operations
Pollce Support Bureau
Police Support Bureau
Police Operations Bureau
Grants
Tennis Centers
Tennis Centers
Tennis Centers
Tennis Centers
Tennis Centers
Veterans Park
Veterans Park
Veterans Park
City Clerk
Police Operations Bureau
Community Improvement Admin
Fire Operations
Public Information
Aquatics
Aquatics
Aquatics
Teen Center
Teen Center
Teen Center
Catherf ne Strong
Catherine Strong
Catherine Strong
Catherine Strong
Pompey Park
Vice, Intelligence and Narcotics
Plan Reviewer
General Management and Administration
Landscaping
Community Response Division Management and Task Force
Athletics
Facility Maintenance
Management
Administration
Cleaning
Dive Rescue
Site Operation
Child Supervision
Inclusion
Administration
Management
Beach Restoration
Finance and Budget Coordination
Management
Administrative
Garage Operation and Maintenance
Neighborhood Services
Park Security
Management
Administration
CrlmeAnalysis Unit
Website Maintenance
Landscape Maintenance
Community Emergency Response
GIS Development
Customer Relations Management
Management
Management
Legal Advisor
Internal Affairs
K-9
Delray Beach Library
Lessons
Court Maintenance
Pro-Shop
Management and Administration
Building Maintenance
Management
Supervision
Facility Operations and Maintenance
Advisory Board
SWAT Team
Education
Technical Rescue
Audio/Visual Services
Administration
Water Surveillance
Pool and Facility Maintenance
Management
Supervision
Facility Operations and Maintenance
Management and Administration
Supervision
Program and Activities
Fadllty Maintenance
Programs and Activities
1,224,760
90,470
131,539
84,754
2,640,610
248,348
285,340
93,410
136,808
114,170
128,750
48,550
130,060
11,710
62,575
74,365
15,000
88,230
123,900
66,050
604,355
149,430
116,503
137,349
174,835
149,990
140,583
120,170
16,140
105,343
42,163
174,228
78,034
228,500
238,360
299,440
1,453,500
380,820
202,050
189,560
198,390
161,440
31,727
19,897
61,308
68,272
100,740
60,665
51,050
14,450
28,508
138,115
111,466
33,157
94,635
49,479
36,511
27,106
40,569
30,450
180,574
181 Parks and Recreation Administration Project Management ~.8~
182 Transfers General Construction 2.000,000
183 Out of School Academic 9,120
184 Out of School Program Adivitfes 154,545
185 Fire Safety Community Education 185,648
186 Public Information Public Information 55,310
187 PubNc Information News for Neighborhoods 13,470
188 Police Support Bureau Public Information 156,790
189 Police Operations Bureau Special Operations Section 805,650
190 Parking Facllftles Administratbn 109,110
191 Police Operations Bureau Coalition for Community Renewal 87,860
192 Police Operations Bureau Atlantic High School Criminal Justice Police Academy 173,500
193 Human Resources Training & Development 134,822
194 Public Information Hometown Connection 13.450
195 Out of School Field Trip 97,085
196 Tennis Stadium Management and Administration 19,500
197 Tennis Stadium Stadium Maintenance 42,890
198 Tennis Stadium Tennis Tournaments 2,097,670
199 Building Maintenance Construction 90,880
200 Ocean Rescue Programs and Activities 94,113
201 Teen Center Programs and Activities 78,389
202 Veterans Park Programs and Activities 33,848
203 Aquatics Management 64,164
204 Aquatics Programs and Activities 40,087
205 Parks.Maintenance Tree Trimming 111,308
206 Grants Misc Grants (e.g. fireworks, Comm Child Care, EPOCH) 158,800
207 Grants Mae Volen contract 12,000
208 Parking Facllftles Bus Shelter 10,000
209 Administrative Services Special Events 133,880
210 Clty Clerk Municipal Lien Search/Residency Card 60,681
211 Catherine Strong Special Events 44,274
212 Community Center Community Center Events 14,290
213 Special Events Special Event/Marketing 76,210
214 Fire Operations Fitness 38,130
215 Police Support Bureau Accreditation 105,830
216 Clty Commission Special Events 26,700
217 City Commission Contractual 101,300
218 Traffic Operations Special Events Support 73,349
219 Streets Maintenance Special Events Support 61,474
220 Flre Safety Special Events Support 8,600
221 Building Maintenance Special Events Support 16,830
222 Fire Operations Special Events Support 84,870
223 City Manager Commission Administrative Support 29,915
224 Parking Facilities Shuttle Bus 300,000
225 Police Operations Bureau Crisis Response Team 4,630
226 Police Operations Bureau Dive Team 13,170
227 Traffic Operations Banner Maintenance 63,179
100,092,050
~'oster~~'oster>NG
\ctuarial Consultants for Public Pension Plans
GG . ~~L~ Chi
August 19, 2009 ~Jd~,~-rJ CJ
Delray Beach Police & Fire Board of Trustees
clo Ms. Anne Woods
City of Delray Beach
609 Homewood Boulevard
Delray Beach, FL 33445
Re: 5-Year Pension Cost Projection
~~
Dear Board:
As requested, we have performed an estimate of the City's contribution requirements to
the Delray Beach Police Officers' & Firefighters' Retirement Plan, and the results are
included on the following pages. For purposes of the study, October 1, 2008 valuation
data was utilized, as well as the assumptions, provisions, and methods described in the
October 1, 2008 valuation report unless otherwise noted. For 2009 investment return,
we utilized the total fund retutment retu30/ a~ d sa ary increase aossumpt ons wereyear.
The population growth, inves
chosen by the Board at the June meeting.
While reviewing the study, please keep in mind the following:
The purpose of this projection was to provide the Board with a conservative
range of possible outcomes. Actuaafn taxes Bence from that which Is asslumedide
of this range due to differences in pl p
• The increasing costs are predominantly due IJAAL) aThe a payments are mostly
on the Unfunded Actuarial Accrued Liability
made to compensate for prior actuarial losses in the fund.
The Normal Cost, or the cost associated with the active employees accruing a
year of service, remains fairly steady at around 27% of payroll in each scenario.
Once the UAAL has been fully paid off, the total cost to the fund should be
around 27% of payroll, less about 9% for State/Members, meaning that the City's
contribution rate will eventually migrate to around 18% of payroll.
• Investment returns are the major driver of pension costs in most pension plans,
but in particular with your plan. Over 50% of the liability in the plan. is current
retirees, so positive active actuarial experience a otherot anse This means that
dampening effect on pension costs as with som p
while actual salary increases being actoaf thesesga nsdis not near5ly as gre t als ito
lower funding requirements, the imp
would be if the plan had a higher concentration of actives to retirees.
13420 Parker Commons Blvd.. Suite 104 • Fort Myers, Florida 33912 •239-433-5500 • Fax 239-481-0634 • wvyw.toater-foster.com
Board of Trustees
August 19, 2009
Page 2
• These projections did not anticipate a change in the nature of how the State
monies will be handled as a result of the pending litigation.
• For purposes of the projection, all future Police new hires are anticipated to be
age 27 making $41,000 per year and all Fire new hires are age 26 making
$50,000 per year. This is based upon the average profile of all new hires in the
last year.
The balance of this Report presents details of the projection. Below is a brief table that
summarizes the results in the body of the report.
Pstimats of Range of Protected 2015 City Contribution Rates as a Percentage of Covered Payroll
Future investment Returns Beginning 10/1/2008
° 8.30°/a 0%
10 /o
4T.0°Jo-T 1.1 % 48.4%-74.8% 54.6%-91.2%
If you have questions, concerns, or would like to discuss this outside of the meeting,
please do not hesitate to contact me.
Respectfully submitted,
FOSTER & FOSTER, INC.
By: Bradley R. 1lefnrichs, FSA, MAAA
Cky of Oelray Boach Police Ofikers' and Firefighters' Retirement System
S-Year Projection of Pension Costs
0% Investment Return Scenario
to/uzoo9 10/1/20 1o/1/zolo 10/1/2011 10/1 012 1o/l/zoi3
Averago Salary Increase 0.00% 0.00% 0.00% 0.009E 0.00%
228 0.00%
222
Number of Active Memben
258
38
7%
250
46.3%
243 235
52.9% 61.9% 75.8%
91.2%
Projected Clty Funding Requirement .
000
600
56 $7,500,000 $8,141,000 $9.057,000 $10,485,000 $11.760,000
Projected city goUer Requirement ,
,
000
040
517 $16,210,000 $15,396,000 $14,634,000 $13,826,000 $12,893,000
Protected Payroll
Projected UAALAmortizatbn Percentage ,
,
19.2% 26.6% 33.0% 42A% 55.9% 71.1%
Average Salary Mcrease
3.00%
3.D0%
3.00% 3.00% 3.00%
235 228
3.00%
222
Number of Active Members 258
38
7% 250
45.9% 243
SD.6% 57.6% 68.5% 80.2%
Projected Cfty Funding Requirement
Pro}acted Glty Dollar Requirement .
56,798,000 $7,887,000 $8,519,OOD $9,482,000 $1D,962,000 S12,351,000
0
000
551
$17 $17,197,000 $1fi,824,00D $16,470,000 $16,028,000 0
$15,396,0
Protected Payroll
Pro~cted UAAL Amorticatbn Percentage ,
,
19.2% 26.2% 30.9% 37.8% 48.7% 60'3%
Average Salary Increase 6.90% 6.90% 6.90% 6.90% 6.90%
228 6.90%
222
Number of Active Members
25g
38
7%
250
45.7%
243 235
49.4% 54.3% 60.2%
67.9%
Protected Clty Funding Requirement .
000
055
57 468,000
$6 $9,298,000 $10,385,000 $11,611,000 $13,073,000
Projected City Doiiar Requirement ,
,
000
215
$18 ,
$18,524,000 $18,806,000 519,110,000 $19,301,000 $14,24],000
Protected Payroll
Projected UAAL Amortization Percentage ,
,
19.2% 26.1% 29.8% 34.7% 40,5% 48.3%
Average Salary Increase 0.00% 0.00% 0.00% 0.009E 0.00%
258 0.0096
258
Number of Active Members
25g
7%
38
258
45.5%
258 25B
50.3% 57.1% 67.796
78.7%
Projected City Funding Requirement
Protected City Dollar Requirement .
$6,737,000 $7,690,000 $8,266,000 $9,129,000 $10,48b,000 $11,701,OD0
000
ProJetted payroN $17,394,000 516,909,000 SIb,429,000 $15,990,000 515,497,000 $14,8fi9,
5%
58
Protected UAAL Amortization Percentage 19.2% 25.8% 30.4% 37.1% 47.6% .
Average Salary Increase 3.00% 3.00% 3.00% 3.OD% 3.00%
258 3.OD%
258
Number of Active Members 258
38
7% 258
45.4% 258 258
48.7% 53.4% 61.1% 69.2%
Protected Clty Funding Requirement .
000
939
$6 000
137
$8 $8,748,000 $9,604,000 510,985,000 $12,287,000
Projected CRy Dollar fiequtrement ,
,
916
000
$17 ,
,
517,938,000 $i7,952,DD0 517,997,000 $17,965,000 $17,754,000
Protected Payroll
ProJetted UAAL Arnartlzat[on Percentage ,
,
19.2% 25.7% 28.9% 33.5% 41.2% 49.2%
Average Salary Increase 6.90% 6.90% 6,90% 6.90% 6.90%
258 fi•~%
258
Number of Active Members 258
% 258
2%
45 258 258
3% 52.3% 55.8%
48 59.6%
ProJetted City Funding Requirement 38.7
000
202
$7 .
$8,737,000 .
$9,687,OOD $10,916,000 $12,069,000 $13,004,000
Protected Clty Dollar Itequkement ,
,
000
595
$18 $19,322,000 $20,070,000 $20,882,000 $21,634,000 $22,190,000
ProJattedPayroll
ProJetted UAAL Anwrtlratton Percentage ,
,
19.2%
25.6%
28,6% 32.5% 36.0%
38.7%
Average Salary Increase 0.00% 0.00% 0.00% 0.00% 0.00%
290 0.00%
299
Number of ActNa Members 258
38
7% 266
45.09E 274 282
46.0% 52.8% 6oS% 68.1%
ProJetted Clly funding Requirement
Projected Clty Dollar Requirement .
$6,874,000 $7,932,000 $8,409,000 $9,225,000 $10,524,000 $11,686,000
00
ProJetted Payroll $17,749,000 $17,629,000 $17,526,000 $17,475,000 $17,381,000 $17,164,0
8%
ProJetted UAAL Amortization Percentage 14.2% 25.3% 28.0% 327% 40.4% A7.
Average Salary increase 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%
299
Number of Active Members 258
38
7% 266
44
9% 274 282 290
47.6% 51.4% 54.7% 59.8%
ProJetted Clty Funding Requirement
Projected qty Dollar Requlremenl .
57,081,000 .
$6,394,000 $9,117,000 $10,102,000 $11,029,000 512,256,000
000
ProJetted Payroll $18,262,000 $16,702,000 $19,151,000 519,668,000 520,149,000 520,495,
%
Projected UAAL Amortlzatlon Percentage 19.2% 25.2% 27.7% 31.4% 34.7% 39.6
Average Salary Increase b.90% b.90% 6.90% 6.90% 6.90%
290 6.90%
~
Number of Actve Members 258
38
7% 266
776
44 274 282
47.2% 50.3% 52.9% 54.6%
DroJected Clty Funding Requirement
Projected City Doliat Requirement .
57,349,000 .
$9,D13,000 S1D,097,000 $11,489,000 $12,829.000 $13,976,000
0
Pro}acted PayraU $18,974,OOD 520,146,000 $21,410,000 $22,820,000 524,264,000 525,6]5,00
~
fi%
Projected UAAL Anrortlzatbn Percentage 19.2% 25.1% 27.4% 30.5% 33•~ •
City of Delray Beach Po1ke Oftkers' and Firefighters' Retkament System
5•Year Projection of Pension Costs
8.3%investment Return Scenario
10/1/2008 10/1/Z009 10/1/2010 10/iJ2011 10/] 2012 10 2013
00%
0 0.00% 0.00% 0.00% 0.0096 0.00%
Average Sahry Increase
.
258
250
243 235 228
222
Number of Active Members
36
7%
46.3%
49.9% 58'6% 6&0% 74.8%
Protected Clty Funding Requirement .
000
600
$6 000
500
$7 $7,685,000 58,582,000 $9,407,000 $9,64D,00O
Protected City Dogar Requirement ,
,
040
000
$17 ,
,
$16,210,000 $15,396,000 514,634,000 $13,82b,000 $12,893,000
Projected Payroll
Projected UAALArrtorthatlonP~centage ,
,
19.2% 26.6% 30.1% 38.7% 48.1% 54.7%
AVeraga Salary Inaease 3.00% 3.00% 3.00% 3.00% 3.00%
228 3.00%
222
Number of ActNa Members 258
38
7% 250
45.9% 243 235
48.0% 54.9% 62.3%
67.7%
ProJedad City Funding Requirement .
000
798
$6 $7,887,000 $8,081,000 $9,035,000 59,987,000 $10,421,000
Projected City boNsr Requirement ,
,
000
551
$17 517,197,000 $16,824,000 $16,470,000 516,028,000 $25,3947
Projected Payrofj ,
,
]9
2% 26.2% 283% 35.1% 42.5%
Projected UAAL Amortization Percentage .
Average Salary Increase 6.90% 6.90% 6.90% 6.90% 6.90%
235 228 6.90%
222
Number of Active Members 258
7%
36 250
45.7% 243
47.1% 52.191 55.6% 59.2%
Projected qty Funding Requirement .
000
$7055 $8,468,000 $8,857,000 $9,949,000 510,723,000 $11,388,000
Projected City Dollar Requirement ,
000
215
$18 $18,5t<4,000 $18,808,000 $19,110,000 519,301,000 $19,241,000
Projected PayroN
Projected UAALAmoriitatlon PerCOnteBa ,
,
19.2% 26.1% 27.5% 32.4% 35.9% 39.5%
0
00% 0.00% 0,00% 0.00% 0.00% 0.00%
Average Salary Increase .
258
258 25B
256 258 25B
Number ofActlveMembaro
7%
38
45S%
47.6% 54.2% 61.1% 65A%
Projected City Fundind Requirement
Projected Ctty Dollar Requirement .
$6,737,000 $7,690,000 $7,821,000 $8,673,000 $'1,468,000
000 $9,720,000
000
869
$14
Projected Payroll $17,394,000 $16,909,000 516,429,000 $15,990,000 $15,497,
0%
41 ,
,
2%
45
Protected UAAI.Mtortltatlon Percentage 19.2% 25.8% .
27.7% 34.2% .
Average Salary Increase 3.00% 3.00% 3.00% 3.00% 3.0096
258 3.00%
258
Number of Active Member
258
7%
38
258
45.4%
258 Z58
46.3% 51.0% 56.0%
59.1%
Protected qty Funding Requirement
Projected pty Dollar Requirement .
56,939,000 58,137,000 $8,313,000 $9,174,000 510,052,000 $10,500.000
000
754
7
000
91b
$17 $17,938,000 517,952,000 $17,997,000 $17,965,000 ,
,
$1
Projected Payroll
Projected UAAI Amortization Percentage ,
,
19.2% 25.7% 26S% 3L1% 36.0% 39.1%
Average Salary increase
6.9096
6.90%
6.90% 6.9096 b.90%
258 258
6.90%
258
Number of Active Members 258
38
7% 258
45.2% 258
46.0% 50.1% 5L7% 51.7%
Projected City Funding Requirement
t .
000
202
$7
$8,737,000
59,238,000 $10,469,000 $11,186,000 11,461,000
S
Projected Ctty DoUat Requiremen ,
,
000
$1&595 519,322,000 $20,070,000 $20,862,OOD 521,634,000 522,190,000
Protected Payroll ,
2%
19 25.6% 26.3% 30.4% 31.9% 3L8%
Projected UAAIAmoril:atbn Percentage
.
Average Salary increase 0.00% 0'00% 0.00% 0.00% 0.00%
282 290 0.00%
299
Number of Actve Members 256
7%
38 266
45.0% 274
45S% 50.3% 55.0'16 57.4%
Projected CRy Funding Requirement .
OOD
874
$6 57,932,000 57,976,000 $8,789,000 59,566,000 $9,851,000
Protected Clty OoBar Requirement ,
,
000
749
517 $17,629,000 $17,526,000 $17,475,000 $17,381,000 $17,164,000
Projected Payrol ,
,
19
2% 25.3% 25.6% 30.2% 34.8% 37.1%
Protected UAAIAmorti:atbn Percentage .
Average Salary Increase 3.00% 3.00% 3.00% 3.00% 3.00%
290 3.00%
299
Number of Active Member 258
7%
38 266
44.9% 274 282
45.3% 49.1% 50.4% 41,89f,
Projected qty Funding Requirement .
000
081
57 58,394,000 $8,673,000 $9,b61,000 $10,157,000 $10,616,000
Projected City ooUar Requrement ,
,
000
282
$18 518,702,000 519,151,000 $19,668,000 $20,149,000 520,495,000
ProjeNed PayroN
Protected UAAI Amortitstlon Percentage ,
,
19.2% 25.2% 25.4% 29.1% 30.4% 31.6%
Average Saisry Increase 6.90% 6'90% 6.9DX 6.90% 6.90%
282 290 6.90%
299
Number of Active Members 258
7%
38 266
44.7% 274
45.096 4B9% 49.1% 18.4%
ProJeUed qty Funding Requirement
t .
000
$7
349 013,000
$9 $9,639,000 511,030,000 $11,921,000 512,38b,000
Projected qty Dollsr Requiremen ,
,
000
974
$18 ,
$20,146,000 $21,410,000 $22,820,000 524,264000 525,615,000
Protected Payroti
Protected UAAI Amortization Percentage ,
,
19.2% 25.1% 25.3% 28.5% 29.2% 28.3%
lily of Delray eeach Pollcc Officers' and Firefighters' Retirement System
S-Year Projection of Pension Costs
10% Investment Return Scenarb
10/2/2008 10/1/2009 10/1 2010 10/1/2011 10/1/2012 10/1/2013
00%
0 0.00% 0.00% 0.00% 0.00% 0.00%
Average Salary Inuease .
258
250
243
235
228 222
Number of Active Members 7%
38 46.3% 49.7% 58.0% 66.4% 71.1%
Projected City funding Requ#ement
ProJectedCltyDoMarRequlrement .
$6,600,000 $7,500,000 $7,655,000 $8,486,000 59,177,000 $9,170,000
00
Projected Payroll $27,040,000 $1b,210,000 $15,396,000 $14,634,000 S73,826,000 $12,893,0
1
1%
Protected UML Amortltatbn Percentage 19.2% 26.6% 29.9% 38.1% 46.4% 5
.
Average Salary Increase 3.00% 3.00% 3.00% 3.00% 3,00%
228 3.00%
222
Number of Active Members 258
7%
38 250
45.9% 243
47.9% 235
54.3%
61.0'16 ~ ggb
pro]etted City Funding Requirement
projected C{ty Do1larRequkement .
$6,798,000 $7,887,000 $8,052,000 $6,946,000 $9,775,000 $9,994,OOD
000
96
PtoJected Payroll $17,551,000 $17,197,000 $16,824,000 $16,470,000 $26,028,000 ,
$15,3
%
Projected UMl Amortlzatbn Percentage 19,246 26.2% 26.1% 34.596 41.2% 45.0
Average Salary Inuease 690% b.90% 6.90% 6.90% 6.90%
228 6.90!6
222
Number of Active Members 258
38
7% 250
45.7% 243
46.9% 235
SI,b% 54.6% 57.2%
ProJeded City Funding Requirement
Protected City pollazRequkement .
$7,055,000 $8,468,000 $8,828,000 $9,862,000 $10,S34,DD0 $11,016,000
Projected Payroll $18,215,000 $18,524,000 $18,808,000 519,110,000 $29,301,000 519,241,000
Protected UML Amortization Percentage 19.2% 26.1% 27.3% 32.0% 34.9% 37.6%
Average Salary Increase 0.00% 0.00% 0.00% 0.00% 0.00%
258 0.00%
"2~8
Number of Active Members 258
36
7% 258
5%
45 258
47.4% 258
53.7% 59.7% 62.4%
Protected Clty Funding Requirement
Projected Cily Dollar Requirement .
$6,737,000 .
$7,690,000 $7,792,000 58,582,000 $9,251,000 $9,281,000
00
ProJeded Payroll $17,394,OOD $16,909,000 $16,429,000 $15,990,000 $15,497,000 $14,869,0
Projected UMLAmortlzatton Percentage 19.2% 25.8% 27.5% 33.7% 39.6% 42.2%
Average Salary Inuease 3.00% 3.00% 3.00% 3.00% 3.00% 3•~%
258
Number of Active Members 258
38
7% 258
45A% 258
46.1% 258
50,5% 258
54.8% 56.9%
Projected Clty Funding Requrement
ProJeded Gty Dollar Requirement .
$6,439,000 $8.137,000 $8,284,000 $9,oB8,00D $9,853,000 $10.104,000
PtoJected Psytoll $17,916,000 $17,938,000 $17,952,000 $17,997.0(10 517,965,000 517,754,(100
%
Projected UMi AntorUzsUon Percentage 19.2% 25.7% 26.3% 30.6% 34.9% 36.9
Average Salary increase 6.90% 6.90% 6.90% 6,9D% 6.40% 6•~%
258
Number of Active Members 258
36
7% 258
45.296 258
45.9% 258
49.7% 258
50.8% ~•i%
PtoJected qty funding Requirement
i ,
000
202
$7 737,000
$8 $9,208,000 $10,379,000 $10,999,000 $11,124,000
rement
Projected Qty Dollar Requ
Projected Payroq ,
,
$18,595,000 ,
$19,322,000 520,070,000 $20,882,D00 $21,634,000 522,190,000
%
Protected UML Amortization Percentage 19.2% Z5.6% Z6.2% 30.0% 31.1% 30.3
Average Salary Irxreasa 0.00% 0.00% 0.0096 0.0096
282 0.0096
290 0.00%
299
Number of Active Members 258
7%
38 266
096
45 274
45.3% 49.8% 53.9%
Protected CAy funding Requirement
Projected Cfty Dollar Requirement .
$6,87A,000 .
$7,432,000
57,947,000
$8,702,000
$9,362,000 g 444,000
$ ,
Protected Payroll $17,749,000 $17,629,000 517,526,000 $17,475,000 $17,381,000 $17,264,000
Projaued UML Amortizatbn Percentage 19.2% 25.3% 25.4% 29.796 33.7% 34.7%
Average Salary Increase 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%
299
Number of ActNe Members 258
7%
38 266
9%
44 274
45.1% 282
48.7% 290
49.5% 50,0%
ProJeded CRy FundU~g Requirement
PtoJected City Dollar Requirement .
$7,081,000 .
$8,394,000 $8,643,000 $9,573,000 $9.972,000 S10,253,000
Protected Payroll $18,282,000 $18,702,000 519,151,000 $19,666,000 $20,149,000 $20,A95,000
'
Projected UAAL AnwRl:ation Percentage 19.2% 25.2% 25.3% 28.7% 29.4% ~-8
K
Average Salary increase 6.90% 6.90% 6.90% 6.90% 6.90%
290 b•~%
299
Number of Adlve Members 258 266 274
4
9% 282
47
9% 3%
48 47.0%
Projected City Funding Requirement
i
t 38.7%
000
349
$7 44.7%
000
013
$9 4.
$9,608,000 .
510,939,000 .
$11,728,000 $12,035,000
remen
PtoJected City Dollar Requ
Projected Payroll ,
,
$18,974,000 ,
,
$20,146,000 $21,410,000 522,820,000 524,264,000 S2S,615,000
Projected UMLArnorti:aUon Percentage 19.2% 25.1% 25.1% 28.1% 28.4% 27.0%
~,
Gabriel Roeder Smith & Company One East Broward Blvd. 954.52'7.1616 pho e
R.S Consultants & Actuatiee Suite SOS 954.525.0083 fax
Ft. Lauderdale, FL 33301-1872 w~Yw.gabrielroedczcom 1
February 13,2009 ~ _ Q ~~~Ip~
RECEIVE ~
IVIr. yoseph M. Safford '
Director of Finance FES 1 8 2009
City of Delray Beach - F'1NANCE
100 Northwest 1st Avenue
Delray Beach, Florida 33444
Re: City of Delray Beach General 1Cmployecs' Retirement Plan
Dear Toe:
As requested, we have determined the impact that future investment returns will have on the Annual Required
Contribution (ARC) for the City of Delray Beach General Employees' Retirement PIan. Since the projected
cost of the Plan reflecting certain deterministic economic scenarios was so dramatic, we swdied ways the City
would be able to mitigate some of this increase. We have determined the impact future asset.returns will have
on the ARC under four different economic scenarios based on the following funding methods:
^ Aggregate funding method (current method)
~ Entry'Age Normal funding method amortizing the Unfunded Accrued Liability (UAL,) as a level dollar
amount
^ Entry Age Normal funding method amortizing the UAL as a level percent of payroll
Proiected ARC for the fiscal veer. endive September 30, 201.0
The ARC fo~• the fiscal year ending September 30, 2009, as shown in our October 1, 2007' actuarial valuation
report, is 13.9% of payroll (without reflecting the most recent Fatly Retirement Incentive Program). This
requirement does not reflect any of the investment performance since October 1, 2007. Based on information
we received, the Fund lost 12.51% net of fees for the fiscal year ending September 30, ?A08. Tf these returns
are reflected and their are no other gains or losses, the ARC for the fiscal year ending September 30, 2010
would increase by 1.52% of pay to 15.42% of pay.
The attached exhibits show the impact that the foIIowing asset returns would have on the ARC under the
funding methods described above:
9/30/2008 9/30/2009 9/30/2010 9/3012011 and after
-12.51% 7.25% 7.25% 7.259'0
-12.SI0k -15% 7.25% 7.25%.
-12.51% -209io 7.25% 7.25°6
-12,519'0 -209'0 204'0 7.259'0
The exhibits show the annual impact on the ARC each year as well as the cumulative impact on the ARC. For
example, under Scenario 2 (under the Aggregate funding method) the 13.996 of payroll ARC from our October
1, 2007 valuation report would increase by 15.92% of payroll for the fiscal yeaz ending September 30, 2015.
This is a 11596 increase in the ARC over a six year period.
Mr. Joseph M. Safford
1?ebruary 13, 2009
Page 2
Impact of Swittchina to the);ntrv A>;e Normal Fundhia Method •
Under the Fury Age Normal funding method, gains and losses are separately amortized over a period not to
exceed 30 years. Under the current funding method, the gains and losses are included in the normal cost and
are amortized over a crutch shorter period of time. As of October 1, 2007 this period of time was equal to 12
years.
As of October 1, 2008, we have estimated the~losses included in the nornmal cost and not separately amortized
are S2.6 million. Under the Entry Age Normal funding method, these losses would be amortized over 30 years
rather than the 12 years they are currently amortized over. "
Below are some of the pros and cons for the Board to review when considering a change in funding method
from the Aggregate funding method to the Enay Age Normal funding method:
Pros .. •
^ One of the biggest sources of contribution volatility is gains and losses. Since gains and losses are
"' at~rlized over a longer period of time,the ARC•wiil be less volatile.
• Large iosses will cause less of an increase in the ARC.
^ Under the Aggregate funding method more money will be required to be deposited into the fu~ul
following periods of poor investment returns. The increased obligation may occur at a time when the
City's revenues are at depressed levels.
Cons .
^ Mare interest ~vill be paid on the loss bases, since they wilt be amortized over a longer period of time.
^ Actuarial gains will cause less of a reduction in the ARC since the gains will be amortized over a
longer period of time. •
^ Under the Aggregate funding method more money will be required to be deposited Into the fund
following periods of poor investtnentreturns. The increased contributions will be purchasing equities
at depressed levels.
Changing the funding method from the Aggregate funding method to fire Entry Age Normal funding method
would have the following~estlmated impact on the ARC for the City of Delray Beach General Employees'
Retirement Plan for the fiscal year endi~tg September 30, 2010:
''Based on a -12.51 % return anrt no other gains or losses
As the atuariai losses increase, the impact of switching the funding method to the Bntrsr Age Normal funding
method increases. For example, after re„ftecting the investment losses shown in Scenario 2, the ARC for the
t=isca! year ending September 30, 2015 would increase by 10.139'0 of payroll under the Entry Age Normal
funding method and 15.9296 of payroll under the Aggregate fundingmethod.- Changing the funding method
causes a 739'o increase in the ARC over a six year period instead of a 115% increase over• this period.
Gabriel Roeder Smith & Company
Ivlr. Joseph M. Safford
February 13, 2009
Page 3
ortizine the UAL as a level percent of nay under the Entry Aee Normal fundia~ me
The impact that asset losses have on the ARC could be decreased further if the UAL is amortized as a level
percent of payroll rather than as a level dollar amount as reflected above. Amortizing the UAL as a level
percent of payroll creates lower amortization payments in early years than if the UAL was amortized as a Ievel
dollar amount. Each year, the amortization payments will 'increase by the covered payroll growth assumption,
and will eventually surpass the payments that would have beeq made if the level dollar amortization payments
were made.
We used a 3.5% covered payroll assumption In the calculation of the amortization of UAL payment. Chapter
112 states that the payroll growth assumption is limited by the average increase in payroll over the previous ten
years. As .of October 1, 2007, the average annual payroll increase was 5.2%.
To illustrate the impact of srnortizing the UAL as a level percent of payroll, wider Scenario 2 the ARC for the
fiscal year ending September 30, 2015 would increase by ?.O1 °6 of payroll if the UAL was amortized as a level
percent of payroll and 10.139'0 of payroll if the UAL was amortized as a level dollar amount.
All of the projections assume that there are no other~gains or losses from any other source except investments
and are based on the data, assumptions, methods and plan provisions shown in our Ootober 1, 2007 valuation
report. Additionally, we have assun-ed that ttre cash flow remains constant from the amounts shown in our
October 1,2007 valuation report.
This report is intended to describe the fmar>cial effect of the proposed plan changes. No statementir this report
is intended to be utterpreted as a recommendation in favor of the changes, or in opposition to them.
The calculations arse based upon assumptipris regarding future events, which may or may not materialize. They
aze also based upon present and proposed plan provisions that are outlined in the report. If you have reason to
believe that the assumptions that were used are unreasonable, that the plan provisions are incorrectly described,
that important plan provisions relevant to this proposal are not described, or that conditions have changed since
the calculations were made, you should contact the author of this report prior to relyLrg on information in the
report.
If you have reason to believe that the information provided iii this report is inaccurate, or is in any way
incomplete, or if you need further information in order to make ani~formed decision on the subject matter of
this report, please contact the author of the report prior to makLig such decision.
In the event that more~than one plan change is being considered, it is very impoztant to remember that the
results of separate actuarial valuations cannot generally be added together to produce a correct estimate of the
combined effect of ail of the changes. The total can be considernbly greater than the sum of the parts due to the
interaction of various plan provisions with each other, acid with tl~e assumptions that rrntst be used.
Gabriel Roeder Smith & Company
Mr. Joseph M. Safford
February 13, 2009
Page 4
As indicated below, the undersigned are Members of the American Academy of Actuaries (MAAA) and meet
the Qualification Standards of the Academy of Actuaries to render the actuarial opinion hereui.
We welcome your questions and comments.
Sincerely yours, ,
J. Stephen Palmquist, ASA, MAAA
Senior Consultant & Actuary
e Amrose, MAAA
Consultant
Enclosures
JSP/ja
Gabriel Roeder Smith
Scenario 1
Aggregate [ending m~hod
City of Delray Beach C,enerai E~-pCoyees Retirement Plan
Aggregate Funding Method
Valuation Date
Contribution Required Outing Fiscal Year Ending
Return on Market Value
FYE return is used for
Market Value of Assets
Actuarial Valve of Assets
Asset Gaia (L.oss)
Amortization of Asset (Gain) Loss
Recognized Rctum Under Asset Smoothing Method
Annual Impact* of Asset Loss on Regained Contribution
Dollar Amount
% of pay
Cumulative Impact* of Asset Loss on Required Contribution
Dollar Amount
% of pay
As~n~n_tions
No other Grains or Losses
Constant cash flow
3.5% payroll growth
* Please note that these are cost increases, not the total cost
IOJI/?A08 14(1/2009 1 O/L'2A10 10/1/2011 10/U20I2 10/1!2013
9/30/2010 9/30V2011 9/30!2012 9!30/2013 9/30/2014 9/30!2015
-1251% 7.25% 725% 725% 7.25% 7.25%
9/30/2008 9131Y1009 9/30/2010 9/3CY2011 9/30/2012 9/30!2013
73,048,176 79,013,690 85,411,704 92,273,574 99,632,929 107,525,837
81,585,538 86,338,74? 91,696,602 97,666,016 104,259,644 111,495,559
(2,134,340) (1,831,264) (1,571,225) (1,348,111} (1,156,679) (992,430)
258,395 221,703 190,2.21 163,210 140,034 120,149
4S% 5.0% 5.4% 5.8% 6.1% 6.3%
282,020 241,973 207,613 178,132 152,837 131,134
1.52% 1.26% 1.04% 0.86% 0.72% 0.59%
N/A 523,994 731,607 909,739 1,062,576 1,193,711
N/A 2.78% 3.82'h 4.68% 5.4096 5.9996
Scenario 2
Aggregate funding method ,
City of Delray Beach General ~npbyecs Retirement Plan
Aggregate Fttndutg Method
Valuation Date
Contribution Required Dozing Fiscal Year Ending
Return on Market Value
PYE return is used for
Market Value of Assets
Actuarial Value of Assets '
Asset Crain (Loss)
Amortization of Asset (creinj Loss
Recognized Return Under Asset Smoothing Method
Annual Impact* oaf Asset Loss on Regnired Contribution
Dollar Amount
% ofPaY
Cumulative Impact* of Asset I..oss on Required Contribntion
Dollar Amount
% ofP~'
Assuttzotions
No other Gains or Losses
Constant cash flow
3.5% payroll growth
' Please note that these are cost increases, not the total cost
10/1/2A08 10/]12009 10/1/2010 l O11/7A11 10/1/2012 10/1/2013
9/30/2010 9/30/2011 9130/2012 9/30/2013 9/30/2A14 9/30/2015
-1251% -15.00% ?.25% 7.25% 7.25% 7.25%
9/302008 9/3LY1009 9/302010 9/3(Y1011 9/30/1012 9/30/Z013
73,048,176 62,688,592 67,903,036 73,495,528 79,493,475 85926,273
81,585,538 75,226,311 78,660,399 82,725,345 $7,412,658 92,720,932
(2,134,340) (12,943,700) (2,689,341) (?,307,454) (1,979,796) (1,698,665)
258,395 1,567,034 325,586 279,353 239,685 205,650
4S% -8.6% 3.7% 43% 4.93'0 5.3%
282,020 1,710,311 355,355 304,895 267,400 224,452
1S2% 889% 1.78% 1.48% 1.23% 1.02%
N/A 1,992,331 2,347,686 2,652,580 2,914,180 3,138,632
N/A 10.41 % 12.19% 13.67% 14.90% 15.92%
Stxnario 3
Aggregate fuudiag metLod,
G~ity of Delray Beach General Employees Retirement Plan
Aggregate Pending Method
Valuation Date
Contribution Required During Fiscal Year Fading
Return on Market Value
FYE return is usdi%,for
Market Value of Assts
Actuarial Value of Assets
Asset Qain (Loss).
Amortization of Asset (Gain} Loss
Recognized Return Under Asset Smoothing Method
Annual ]mpact'~ of Asset LASS on Required Contribution
DoLlarrAmount
% ofPay
Cumulative Tmpact* of Asset Loss on Required Contribution
DoLLarArnount
of pay
A~umations
No other Gairts or.Losses
Constant cash flow
3.596 payroll growth
* Please note that these are cost a
1a1n008 1 avl/`1A09 lal/2010 1a1n011 1 al /2012 la1no13
9/30n010 9/3a201I 9/30/2012 9/30/2013 9/3x2014 9/30n015
-12.5190 -20.00% 7.2596 7.25% 7.25% 7.25%
9/3012008 9/30/2009 9/30/ZDIO 9/3Q2011 9/3Ql2012 9/30U2013
73,048,176 59,020,031 63,968,504 69,275,742 74,967,755 81,072,438
81,585,538 70,824,037 74,096,342 77,965,427 82,423505 87,469,472
(2,134,340) (17,345,974) (2,531,959) (2,172,421) (1,863,937) (1,599,258)
258,395 2,099,997 306,533 263,005 225,658 193,615
4.596 -13.9% 3.796 43% 4.9% 5.396
282,020 2,292,003 334,559 287,052 246,291 211,317
I.S2% 11.9196 1.68% 1.39% 1.15% 0.96%
N/A 2,574,024 2,908,583 3,195,635 3,441,926 3,653,243
N/A 13.4396 15.11% 16.50% 17.6596 18.61%
Scenario 4
Aggregate fuodAag method,
City of Delray Beach General Employees Retirement Plan
Aggregate Funding Method
Valuation Date
Contribution Required During Fiscal Yeat Fading
Return oa Market Value
FYE return is used for
Market Valuo of Assets
Actuarial Value of Assets
Asset Gain (boss)
Amortization of Asset (Gain) Loss
Recognized Return Under Asset Smoothing Method
Annual Impad* of Asset Loss on Required Contribution
Do1larAmount
% ofPaY
Cumulative Impact" of Asset Loss on Required Contribution
Do1larAmount
% of pay
Assumptions
No oilier Gains or Losses
Constant cashJ4ow
3.5% payroll growth
'" Please note that these are cost increases, not the total cost
10/12008 l 0112009 10/ 12010 10/ 12011 10/12012 10/ 12013
9/302010 9!302011 9/30/2A12 9/30/'2013 9/30/2014 9l30V2015
-12.5196 -20.0096 20.00% 7.25% 7.2596 7.259'0
9/30/2008 9/30!2009 9/30/2010 ~ 9/30/2011 9/30!2012 9/30/1013
73,048,176 59,020,031 71,534,747 77,390,538 83,670,873 90,406,532
81,585,538 70,824,037 75,609,590 80,886,752 86,670,625 92,980,319
(2,134,340) (17,345,974) (1,018,711) (874,054) ('749,938) (643,447)
258,395 2,099,997 123,331 105,818 90,792 77,899
45% -13.9% 5.896 6.196 6.3% 6596
282,020 2,292,003 134,607 115,493 99,093 85,022
1.52% 11.9196 O.t~89!o 0.56% 0.4696 0.3896
N/A 2,574,024 2,70$631 2,824,123 2,923,21b 3,008,238
N/A 13.43% 14.11 % 14.67% 15.13% 15.5196
Scenario 1
Faihy Age TForwal pevel S amortization
City of Delray Beach General Employees Retirement Plan
Exby Age Normal Phndneg Melliod
level dollar amortiurtion
Valuation Date 10/1/2008 10/1/2009 10/1/2010
Coatribution Required During Fiscal Year Fading 9/302010 9/30/2011 9/30/2012
Return on Market Value -12.51% 7.25% 7.2596
FY,E return is used for 9/30/2008 9/3Qr1009 9/30/2010
Market Value of Assets 73,048,176 79,013,690 85,411,704
Actuarial Value of Assets 81,585,538 86,338,747 91,696,602
Asset Gain (Loss) (2,134,340) (1,831,264) (1,571,225)
Annartization of Asset (Gain) Loss 164,418 141,071 121,039
Recogtw.ed Return Under Asset Smoothing Method 4S% 5.0% 5.4%
Annual ltnpact* of Asset Loss on Required Contribution
Dollar Amount
% of pay
Cumulative Impact* of Asset Loss on Required Contribution
Dollar Amount
% of pay
No other Gams or Losses
Constant cash flow
3.S%payroll growth
* Please Race Char these are con btcreases, nor the total cost
10/1/2011 10/1/2012 10/1/2013
9/3012013 9/30/2014 9/30/2A15
7.25% 7.25% 7.25%
9/3(Y1011 9/30/1012 9/30!2013
92,273,574 99,632,929 107,525,837
97,666,016 104,259,644 111,495,559
(1,348,111) (1,156,679) (992,430)
103,851 89,104 76,451
5.8% 6.1% 6.3%
179,451 153,969 132,105 113,347 97,251 83,442
0.97% 0.80% 0.6696 0.55% 0.46% 0.38%
N/A 333,420 465,526 578,872 676,123 759,565
N/A 1.T7% 2.43% 2.98% 3.44% 3.82%
Scet-ario 2
Entry Age Normal (level S amortization}.
City of Delray Beach General employees Retirement Plan
Endy Age Normal Fwyliag Method
fevtl doAar amortf~tion
'Valuation Date 10/1/2008 10/112009 10/1/2010
Contribution Required Daring Fiscal Year Fading 9/30!2010 9/30!2011 9/30/2012
Return on Market Value -1251% -15.0096 7.25%
FYE return is usttl for 9/30!2008 9/302009 9/317/1010
Mazket Value of Assets 73,048,176 62,688,592 67,903,036
Actuarial Value of Assets 81,585,538 75,226 11 78,660,399
Asset Gain (Loss) (2.134,340) (12,943,700) (2,689,341)
Amortization of Asset (Gain) Loss 164,418 997,113 207,172
Recognized Return Under Asset Smoothing Method 4.5% -8.696 3,7%
Annual Impacx* of Asset Loss on Required Contribution
DollarAmount
%ofPaY
Cumulative Impact* of Asset Loss on Required Contnbution
Dollar Amount
96 of pay
Assumptions
No other Gains or Losses
Constant cash,Jlow
3.596 payroll growth
* Please note that these art cost increases, nor the total cos!
1 a l /2011 1011 /?A 12 10/ 1/2013
9!30!2013 9/30lZ014 9/30/2015
7.25% 7.2596 7.2596
9/30/2011 9/30/1012 9/3GV2013
73,495,528 ?9,493,475 85,926,273
82,725,345 87,412,658 92,720,932
(2,307,454) (1,979,796) (1,698,665)
177,754 152,513 130,856
4.396 4.996 5.3'fo
179, 4 S 1 1,088, 2 81 22 b,114 194,006 166, 457 142, 820
0.9795 5.65°k 1.14% 0.9496 0.7896 0.6596
N/A 1,267,732 1,.493,846 1,687,853 1,854,310 1,997,130
N/A 6.62'% 7.76% 8.7096 9.4896 10.13%
Scenario 3
Entry Age Normal (ICVeI S amortarsiSon)-
City of Delray Beach General Employees Retirement Plan
Eab y Age Normal F~ndiug Method
Ieve1 doAm~ amortization
Valuation Date '
Contnbution Required During liscal Yeaz Ending
Return on Market Value
FYE return is useif for
Mazket Value of Assets
Actuarial Value of Assets
Asset Gain (L.oss)
Amottizeaon of Asset (Gain) Loss
Recognized Return Under Asset Smoothing Method
Annual Impact* of Asset Loss on Required Contribution
DoIlarAmount
% ofPaY
Cumalativc Tmpact* of Asset Loss on Required Contribution
Dollar Amount
% of pay
AssumvtiQns
No other Cams or Losses
Constant cash flow
3.5% payroll growth
10/1/2008 10/1/2009 10/1/2010 10/1/2011 1 C/1/2A12 lOVl/2013
9/30/2010 9/30/2011 9/30/2012 9r30J2013 9/30%2014 9/30/ZO1S
-12.51% -20.00% 7.25% 7.25% 7.25'% 7.25%
9/30/1008 9/3tY2009 9/3L1/2010 9/3A2011 9/30/1012 9/3Q2013
73,048,176 59,020,031 63,968,504 69,275,742 74,967,755 81,072>438
81,585,538 70,824,037 74,096,342 77,965,427 82,423,505 87,469,472
(2,134,340) (17,345,974) (2,531,959) (2,172,421) (1,863,937) (1,599,258)
164,418 1,33 6,240 195,048 167,352 143,588 123,198
4.596 -13.9% 3.796 43% 4.996 5.3%
179,451 1,458,415 21882 182,653 156,716 134,462
0.97% 7.5896 1.07% 0.89% 0.7396 0.6196
N/A 1,637,866 1,850,748 2,033,401 2,190,118 2,324,580
N/A 8.SS% 9.62% 10.51% 11.24% 11.85%
* Please note that these are cost increases, not the total cost
Scenario 4
Entry Age l~lormal (level S amorti~ation)-
City of Delray Beach Geaerat Employees Retirement Plan
Entry Age Normal Fund'vig Method
level doAar amortization
Valuation Date 10!12008 10/1/2009 10/12A30 10!1/2011 10/1/2012 10/1/2013
Contribution Required During Fiscal Year Ending 9/302010 9/302011 9!30/2012 9/30/2013 9/30V2014 9/3012015
Return on Market Value -1251% -20.00% 20.00% 7.2596 7.25% 7.25%
FYE return is used, jor 9/302008 9/3Q/1009 9/30/1010 9/3CY2011 9/30!!012 9/3Q/2013
Market Valuo of Ascots 73,048,176 59,020,031 71,534,747 77,390,538 83,670,873 90,406,532
Actuarial Value of Assets 81,585,538 70,824,037 75,609,590 80,886,752 86,670,625 92,980,319
Asset Gain (Loss) (2,134,340) (17,345,974) (1,018,711) (874,054) (749,938) (643>447)
P.mortizatioa of Asset (Gain) Loss 164,418 1,336,240 78,476 67,332 57,771 49,568
Recognized Rotum Under Ascot Smoothing Method 4.5% -13.9% 5.8% 6.1 % 6.3% 6.596
Annual lmpact* of Ascot Loss on Required Contribution
DoUarAmount 179,451 1,458,415 85,651 73,489 63,053 54,100
% of pay 0.97% 7.58% 0.43% 0.36% 0.30% 0.2496
Cumulative Impact* of Asset Loss on Required Contribution
Doli!arAmount N/A 1,637,866 1,723,518 1,797,006 1,860,060 1,914,159
% of pay N/A 8.55% 8.98% 9.34% 9.64% 9.88%
No other Gains or i
t:onsrant cash}low
3.595 payroll grow
"Please note that t
Scenario 1
b-hy Age Normal (level % of pay amort3xation),
(Sty of Delray Beach General ~nployees Retirement Plan
EnA y Aga Nornml Fu~rig Method
level percent ofPay +~
Valuation Dane
Contribution Required Daring Fiscal Year Boding
Return on Market Value
FYE return is used}or
Market Value of Assets
Actuarial Value of Assets
Asses Gain (Loss)
Amortization of Asset (Gain) Loss
Recognized Return Under Asset Smootfring Method
Annual Impact* of Asset Loss oa Required Contribution
DoUarAmount
90 of pay
Cumnlativa Impacc* of Asset Loss on Required Contribution
Dollar Amotau
%O.fPaY
~ssu~ptions
No other Gams or Losses
Constant cash}Iow
3.S% payroll growth
10/1/2008 10/1/2009 10/1/2010 10V1/'2011 10/1/2012 10/1/2013
9/30/2010 9/30/2011 9/30/2012 9/30/'2013 9/30/2014 9!30/2015
-12SI% 7.2596 7.2596 7.2596 7.2596 7.25%
9/30/2008 9/30/2009 9/302010 9/302017 9/302012 9/302013
73,048,176 79,013,690 85,411,704 92,273,574 99,632,929 107,525,837
81,585,538 86,338,747 91,696,602 97,666,016 104,259,644 111,495,559
(2,134,340) (1,831,264) (1,571,225) (1,348,111) (1,156,679) (992,430)
113,724 47,576 83,720 71,832 61,632 52,880
4.5% 5.0% 5.4% 5.8% 6.1% 6396
124,122 106,497 91,375 78,399 67,267 57,715
0.6796 0.55% 0.46% 0.38% 83296 ~ 0.2696
N/A 230,620 321,994 400,393 467,660 525,375
N/A 1.22% 1.689'0 2.06% 2.38% 2.64%
* Please note that those are cost increases, nor the total cost
Scenario 2
Eatry Age Normal (level % of paq aprAOrti7ation)
City of Delray Beach General Employees Retiremcat Plan
Entry Agt Normal Funding Method
level percent of pay amortization
Valuation Date
Conttbution Required During Fiscal Year Ending
Return on Market Value
FYE return is used for
Market Value of Assets
Actuarial Valve of Assets
10/1/2008 10/1/2009 lOJl/2010 10/1!2011 10/1/2012 10/1!2(}13
9!30/2010 9/30/2011 9/30V2012 9130/2013 9/30/2014 9f3Q/2015
-1251% -15.00% 7.25% 7.25% 7.25% 7.25%
9/30!1008. 9/302009 9/302010 9/30/2011 9/302012 9/3LV2013
73,048,176 62,688,592
81,585,538 75,226,311
Asset Gain (Loss) (2,134,340) (12,943,700)
Amortization of Asset (gain) Loss 113,724 689,682
Recognized Return Under Asset Smoothing Method 4.5% -8.6%
Annual Impact* of Asset Loss on Required Contribution
Dollar Amount
96 of paY
Camulative Impact* of Asset Loss on Required Contribution
Do1larAmount
% ofPaY
A~snmptions
No other ('rains or Losses
Constant cash flow
3.5% payroII growth
* Please Wore that these arc cost increases, nor the total cost
124,122 752,740
0.67% 3.91 %
67,903,036
78,660,399
(2,689,341)
143,297
3.7%
156,399
0.79%
N/A 876,863 1,033,261
N/A 4.58% 5.379'0
73,495,528 79,493,475 85,926,273
82,725,345 87,412,658 92,720,932
(2,307,454) (1,979,796) {1,698,665)
122,949 105,490 90,510
4.3% 4.996 53%
134,190 115,135 98,786
0.6596 0.54% 0.4596
1,167,457 1,282,586 1,381,372
6.0296 6.56% 7.01 %
Scenario 3'
l'~ntry Age Normal Qevel % of pay amortiaafion).
GSty of Delray Beach General L~tpioyees Retirement Plan
Entry Ags Normal Funding Method
level percent ofPa1' amorizzation
Valuation Date 1011!2008 10/1/'2009 10/1/2010 10/1/2011 10/1/2012
Contn'bution Required During FSscal Year Ending 9/30/2010 9/30/2011 9/30/2012 9/30/1013 9/30/2014
Return on Market Value -12.51% -20.00% 7.25% 7.25% 7.25%
FYE ren~rn is usiil far 9/30/2008 9/302009 9/30/2010 9/3(12011 9/302012
Market Value of Assets 73,048,176 59,020,031 63,968,504 69,275,742 74,967,755
Actuarial Value of Assets. 81,585,538 70,824,037 74,096,342 77,965,427 82,423,505
Asset Gain (Loss) (2,134,340) (17,345,974) (2,531,959) (2,172,421) (1,863,937)
Amortization of Asset (Gala) Loss 113,724 924,249 134,911 115,754 99,317
Recognized Return Under Asset Smoothing Method 4.596 -13.9% 3.7% 4.3% 4.9%
Annual Impact* of Asset Loss on Required Cantributioa
DollarAmount
%ofPaY
Cumulative Impact's of Asset Loss oa Required Contribution
DollarAnaowu
% of pay
No other Gains or Losses
Constant cash flow
3.5% payroll growth
'"Please note that rJuss ars cost increases, not the total cyst
124,122 1,008,755 147,246 126,337 108,397
0.6796 5.24% 0.74% 0.61 % O.SI %
N/A 1,132,877 1,
N/A 5.91 %
IO/U2013
9/30/2015
7.25%
9/3112013
81,072,438
87,469,472
(1,599,258)
85,214
53%
93,005
0.42%
Scenario 4'
Entry Age Normal pave! % of pay amortization)"
City of nelray Beach General Employees Retirement Plan
L~nb y Age Nornrarl Funding Method
level percent of pay amortization
Valuation Datt
Contribution Required During I~iscat Year Ending
Retum on Market Value
FYE return is coed for
Market Value of Assets
Actuarial Value of Assets
Asset Gain (Loss)
Amortization of Asset (Gain) Loss
Recognized Rctnm Undar Asset Smoothing Method
Annual Impact* of Asset Loss on Required Contnbution
Dollar Amount
96 of pay
Cumulative Impact' of Asset Lass on Required Con
DollarAmount
96 ofP4Y
A~ssu>n 'ons
No other Grains or Losses
Constant cash flow
3.596 payroll growth
'" Please note that these are cost increases, not the u
10/ 1!2.008 10/ 112009 10/1/1Al 0 10/ 1/2011 10/ 1/2012 101 U20 ] 3
9f30/2010 9/30/2011 9/30!2012 9/30/2013 9/30/2014 9/30/2015
-12_Sl% -20.00% 20.00% 7.25% 7.25% 7.25%
9/3012008 9/3Q/2009 9/30/2010 9/3Qi2011 9/31Y2012 9/31Y2013
73,048,176 59,020,031 71,534,747 77,39038 83,670,873 90,406,532
81,58538 70,824,037 75,609,590 80,886,752 86,670,625 92,980,319
(2,134,340) (17,345,974) (1,018,711) (874,054) (749,938) (643,447)
113,724 924,249 54,280 46,572 39,954 34,285
4S% -13.9% 5.8% 6.196 6.39'0 6596
124,122 1,008,755 59.243 50.831 43.613 37.420