Res No 212-15-14551RESOLUTION NO.212-15-14551
AResolutionrelating to budget;authorizinga transfer of $12,000from Finance
Auditor's Fee account,to Finance Professional Services account.
WHEREAS,itis requested that $12,000 be transferred from account No.
001.1310.513.3210 Finance Auditor's Fee to account No.001.1410.513.3100 Finance
Professional Services;and,
WHEREAS,the funds from the Finance Professional Services line item willbe used to pay
for the services from Gabriel,Roeder,Smith&Company who will prepare the actuarial
projection study(s)for the City's General andPolice Employees Pension Plan;and,
WHEREAS,the MayorandCityCommission desire to transfer sufficient funds from
account No.001.1310.513.3210 Finance Auditor's Fee,with a current balance of $79,500,to
account No.001.1130.513.3100 Finance Professional Services,witha current balance of $5,443.
NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE
CITY OF SOUTH MIAMI,FLORIDA THAT;
Section 1.TheCity Manager is hereby authorized to transfer sufficient funds in the
amount of $12,000 from account No.001.1310.513.3210 Finance Auditor's Fee,with a current
balance of $79,500,to account No.001.1130.513.3100 Finance Professional Services,with a
current balance of $5,443.
Section 2.This resolution shall take effect immediately upon adoption.
PASSED AND ADOPTED this1_5_day of December,2015.
ATTEST:APPROVED:
AYORMAY!
COMMISSION VOTE:5-0
Mayor Stoddard:yea
Vice Mayor Harris:Yea
Commissioner Edmond:Yea
Commissioner Liebman:Yea
Commissioner Welsh:Yea
(7)
Soutlf Miami
OFFICEOF THE CITY MANAGER
INTER-OFFICE MEMORANDUM
THE CITY OF PLEASANT LIVING
To:The Honorable Mayor&Members of the City Commission
From:
Date:
Steven J.Alexander,City Manager
December 15,2015 Agenda Item No.:.Ik
Subject:AResolution relating to budget;authorizing atransferof $12,000 from
Finance Auditor's Fee account,to Finance Professional Services account.
Background:Itis requested that the budgetforFinanceProfessionalServicesbe
increased by $12,000 from account No.001.1310.513.3210 Finance
Auditor's Fee.Itis essential to provide sufficient funds for Finance's
Professional Services account topay for the services from Gabriel,Roeder,
Smith&Company who will prepare the actuarial projection study(s)for the
City's General and Police Employees'Pension Plan.
TheCity budgeted in FY 2016for actuarial studies/projections a total of
$5,443.Last fiscal year the City budgeted $10,000 and expended $6,310.
Unfortunately,Finance was unable to obtain an estimated cost for the
actuarial projection for the proposed pension plan amendments which
were provided by the Pension Board Chairman before the adoption of the
new fiscal year.
Lastly,the City,in FY 2016 budgeted a total of $83,500 for Auditor's Fee.
Within that respective amount,$4,500 wasforsingle audit and $9,000 was
to complete the audit for the City's185Police Pension fund.Ithas been
recently determined,the single audit is not required infiscal year 2016 and
the 185 Police Pension board will be seeking the services of another
auditing firm to complete their audit,hence,the Auditor's Feeline item will
have sufficient funds to complete the required 2015 fiscal year audit and
provide a sufficient surplus amount to transfer to the Professional Services
line item tocover the $12,000costof the Actuarial Projection.Finance
would like to maintain the balance in the Professional Services line item of
$5,443tocoverany future projectionsor required impact statements
should they be needed duringfiscal year 2016.
Transfer Amount:$12,000
Transfer From:
Transfer To:
Attachments:
Account number 001.1410.513.3210 Finance Auditor's Fee,with a current
balance of $79,500.
Account number 001.1410.513.3100,Finance Professional Services,with a
current balance of $5,443.
FY 2016 Finance Department's Adopted Budget
GabrielRoaderSmith&Company December 3,2015Proposal
SoudrMiami
THEGITY.OF PLEASANTLIVING
FINANCE DEPARTMENT
001-1410-513
JZ/grj^,'-;^;^;';U'!v'"t-«t{;|<}!:4-i<;j;;.y^\/&
'.I
v.iaitWwM-.i;-,BC!fis;
Chief Financial Officer
Alfredo Riverol,CPA,CGFM,CGMA,
Cr.FA
^:^»A^7^^^^'^^VM'™**^,
Procurement
Division
Management
Info.Systems
Office
i^M^H^U^a^Ub^^Wiw'i^agK^j^HMFffSSa
Office
Support (P/T)*
MISSION
Inaspiritofexcellence,integrity,anddedication,the Finance Department iscommitted to
providing timely,accurate,clearandcomplete financial informationand support to other City
Departments,citizens,and the communityatlarge.
FINANCE DEPARTMENT FUNCTION
The Finance Department isresponsibleforthe proper accountingof all Cityfundsand
compliancewithallapplicableregulationsand laws.Routinedutiesincludeprocessingaccounts
payable,accounts receivable,central collections,generalledgerfundaccounting,preparationof
applicable stateandfederal reports,andperiodic financial reports tomanagement,administering
debtservice,andinvestmentofCity funds.The Department isalsoresponsibleforthe
implementation andcontroloftheapprovedbudgetandthepreparation,anddisclosureofthe
financial statements,including responses to the external auditors.Italso provides other
Departments with financial analysisandassistswithbanking transactions that ariseduring the
year.
TheDivisionofParkingand Central Services,aswellas the ManagementInformationSystem
Division report under the Finance Department.
CITY OF SOUTH MIAMI BUDGET FY 2015-2016 II
i"kAramiSoutW1Miami
THECITYOF PHEASANT LIVING
FINANCE DEPARTMENT ACCOMPLISHMENTS FOR FY 2015
•Continued to require ElectronicFund
Transfer (EFT)paymentsasamandatory
processto all newvendorsas the regular
formofpaymentfromthe City,
•Continued to produce and post online
beforeevery second regularCommission
meetingof the month theCity'smonthly
finance report for the previousmonth.
•Continuedto produce the
ComprehensiveAnnual Financial Report
(CAFR)with auditors issuingno findings.
•Obtained all three Government Finance
OfficersAssociation (GFOA)prestigious
awards for Budget,CAFR,and PAFR;
certifying that the City's finance reports
are being producedat the highest
standard possible.
•Postedonline accurate andtimelybudget
and financial reports onamonthly basis.
•Assisted the CityManagerin the
preparationofthe FY 2016 Annual
OperatingandCapital Budget
•Producedand posted onlinethePopular
Annual Financial Report (PAFR),
•Implemented the City's .net accounting
systemwhichintegratesintheCity's
new Enterprise Resource Planning (ERP)
system,ONESolution.
FINANCE DEPARTMENT OBJECTIVES FOR FY 2016
•Continueimplementing the ACH
paymentprogramandrequiring70%of
all activevendors to acceptACHasthe
regularformofpaymentfromtheCity.
•Continueto pursue implementationand
establishmentofanonlinepayment
optionforcertainprovidedCityservices
such asLocal Business Tax,Code
Enforcement Violations,Building Permit
Renewals,etc,
•Continueto produce andpostonline
beforeevery second regularCommission
meetingof the month the City'smonthly
finance report forthepreviousmonth.
•Continue to produce the
Comprehensive Annual Financial Report
(CAFR)without auditor findings.
•Obtainingall three Government Finance
Officers Association(GFOA)prestigious
awardsforBudget,CAFR,and PAFR;
certifying that theCity'sfinancereports
arebeing produced at the highest
standard possible.
CITY OF SOUTH MIAMI BUDGET FY 2015-2016 12
South'Miami
THECITYOF PLEASANT LIVING
FINANCE DEPARTMENT ACTIVITY REPORT
•msstm
Numberof Parking Decals Sold 788 750
Number ofCashKeySold
NumberofCashKey Refills 150
Number of Payroll PeriodsProcessed 26 26
Comprehensive Annual Fin.Rep.(CAFR)
Popular Annual Financial Report (PFAR)
Number ofAnnual Balanced Budget I I
Number of A/P Checks Processed 3,363 3,200
1,000 IJ00
0*0*
0*0*
N/A**N/A**
I
I
3,000 2,800
*The Cash Key program was discontinued duetothe implementation ofthe Parking Pay Stations.
**Payroll isnowprocessedby Personnel Division and ADP.
CITY OF SOUTH MIAMI BUDGET FY 2015-2016
1,200
0*
0*
N/A**
I
2,800
13
South'vMiami
THECITV OF PUASANT LIVING
38 MULTI-SPACE PAY STATIONS
PROJECTED DEBT PAYMENTS FOR FY 2016 HIGHLIGHTED
RESOLUTION 12-11-13326
001-1410-513
$417,896.00
Payment
Number
Payment
Date
Payment
Amount
Principal
Component
Interest
Component
Ending
Balance
45 10/7/2014 7,389.86 7,161.65 228.21 109,126.79
46 11/7/2014 7,389.86 7,175.70 214.16 101,951.09
47 12/7/2014 7,389.86 7,189.78 200.08 94,761.31
48 1/7/2015 7,389.86 7,203.89 185.97 87,557.42
49 2/7/2015 7,389.86 7,218.03 171.83 80,339.39
SO 3/7/2015 7,389.86 7,232.20 157.66 73,107.19
51 4/7/2015 7,389.86 7,246.39 143.47 65,860.80
52 5/7/2015 7,389.86 7,260.61 129.25 58,600.19
53 6/7/2015 7,389.86 7,274.86 115 51,325.33
54 7/7/2015 7,389.86 7,289.13 100.73 44,036.20
55 8/7/2015 7,389.867,303.44 86.42 36,732.76
56 9/7/2015 7,389.86 7,317.77 72.09 29,414.99
TOTAL 443,391.60 417,896.00 25,495.60
CITY OF SOUTH MIAMI BUDGET FY 2015-2016 114
South^Miami
THE CITY OK PLEASANT LIVING
FINANCE DEPARTMENT BUDGET FY 2016
001-1410-513
0011410 5I3I2IO SALARIES -REGULAR
0011410 5I3I3IO SALARIES-PART TIME
0011410 5132110 F.I.CA
0011410 5132210 PENSION PLAN CONTRIBUTION
0011410 5132220 DEFERRED COMPENSATION (ICMA)
0011410 5132310 GROUP HEALTH INSURANCE
001 1410 5132410 WORKER'S COMPENSATION
TOTAL PERSONNEL SERVICES
253,679 280,377 325,297 325,297 277,572
49,757 38,582 43,117 43,117 29,636
23,593 24,451 28,184 28,184 23,501
13,226 11,085 9,515 9,515 3,863
9,989 11,184 17,547 17,547 14,206
25,956 26.741 35,449 35,449 31,432
828 676 815 815 774
377,028 393,096 459,924 459,924 380,984
0011410 5133100 PROFESSIONAL SERVICES 10,000 18,000 10,000 10,000 5,443
0011410 5133210 AUDITOR'S FEE 65,940 57,000 83,500 83,500 85,500
0011410 5133450 CONTRACTUAL SERVICES 9,788 24,321 36,860 36,860 36,860
0011410 5133459 CONTRACTUAL SERVICES-PRKN 0 421,120 526,659 436,659 435,768
0011410 5134070 TRAVEL &CONFERENCE 1,364 2,767 3,160 3,160 3,160
0011410 5134110 POSTAGE 4,229 5,085 7,030 7,030 7,030
0011410 5134120 COMMUNICATION (.177 1,830 2,100 2,100 1,080
0011410 5134634 MAINTENANCE COMP PROGRAMS 12,676 17,730 35,000 35,000 41,307
0011410 5134710 PRINTING-INFRASTRUCTURE 1,588 1,490 1,668 1,668 1,230
0011410 5135205 COMPUTER EQUIPMENT 693 0 1,300 1,300 1,960
0011410 5135210 SUPPLIES 8,226 8,528 8,703 8,703 8,810
0011410 5135410 MEMBERSHIPS &SUBSCRIPTIONS
TOTAL OPERATING EXPENSES
2,191 2,315 2,425 2,425 1,535
117,872 560,186 718,405 628,405 629,683
0011410 5137110 DEBT SERVICE-PRINCIPAL 34,414 119,267 121,288 121,288 29,415
0011410 5137210 DEBT SERVICE-INTEREST 0 3,825 1,805 1,805 145
TOTAL DEBT SERVICE
0011410 5139920 CONTINGENCY
OTHER FUNDING SOURCE
TOTAL FINANCE
CITY OF SOUTH MIAMI
34,414 123,092 123,093 123,093 29,560
0 0 5,000 5,000 5000
0 0 5,000 5,000 5,000
529,314 1,076,374 1,306,422 1,216,422 1,045,227
BUDGET FY 2015-2016 115
SoulmMiami
THECITY OF PLEASANTLIVING
FINANCE DEPARTMENT BUDGET HIGHLIGHTS
1210 Salaries -Thislineitemhasbeen decreased duetocertain personnel restructuring within
Finance.Thesignificantchangewithinthe restructuring was the relocation of the Grant's and
Sustainability Administrator position to the Planning andZoning Department whichprovidedfor
themajorityof the asalaryreductionofapproximately$57,228.
3459 Contractual Services -This line itemhasbeen decreased by $92,151 as the Street-Line
Project parking related itemis not budgetedfor Fiscal Year 2016.
7110 Debt Service Principal -The financing oftheONESolutionFinanceSoftwarewaspaidin
full in Fiscal Year 2015 decreasingthelineitem.In addition,the financing of the 38paystations
willbe completed during the first four monthsof Fiscal Year 2016.Thusa total decrease of
$91,873 is projected forthislineitem.
CITY OFSOUTH MIAMI BUDGET FY 2015-2016 116
Gabriel Roeder Smith &C Company One Hast Broward Blvd.954,527.1616 phone
Consultants8c Actuaries Suite SOS 954.525.0083 fax
Ft.XSttiderdale,PL 33301-1804 \vww.giibrjejroedenconi
December 3,2015
Mr.Alfred Riverol
Finance Director
City Hall,1st Floor
6130 Sunset Drive
South Miami,Florida 33143
Re:Engagement Letter forActuarial Services -Actuarial Projection Study
Dear Alfred:
As requested,Gabriel,Roeder,Smith&Company(GRS)ispleasedtopresentthisengagement
lettertoperformanActuarialProjectionStudyoftheCity of SouthMiamiPensionPlan(Plan)
on behalf of theCity.
Weareenthusiasticaboutextendingourexistingrelationshipwithyouandyourcolleagues.We
havealong-standingcommitmentandexperiencewithworkingon behalf of publicsector
benefitprograms.Ourphilosophyofdevelopingapartnershipwithourclientsemphasizesthe
collaborativenature of theGRSworkingrelationship.Westrivetoearnyour trust asyour
advisor.Wewill continue towork together withyouinthebestinterest of theinterestedparties.
Description of Services
Theprofessionalserviceswillbeprovidedunderthe supervision ofLarryWilson,A.S.A.,E.A.,a
SeniorConsultantandActuarywithover25years of experienceinemployeebenefitplans,Kelly
Adams,AS.A.,E.A.,aConsultantandActuarywithover 15 yearsofexperiencewithemployee
benefitplansandJen Borregard,E.A.,a Consultant andActuarywithover 15 yearsof experience
with retirement systems.
WeunderstandtheCityisinterestedinanalyzingtheimpact of thefollowingproposedchanges
inPlan provisions:
>PoliceOfficeremployeecontributionswillbecappedateightpercent(8%)or tenpercent
(10%)of compensation.
>Re-opentheplanforGeneral Employees withthefollowingnewTier of benefit
provisions:
oGeneralEmployeesbecomevesteduponcompletion often (10)years of service.
oThebenefitmultiplierwillbe 1.6%foreachyear of service.
oFinalAverage Compensation willbethehighesteight(8)years of compensation.
Mr.Alfred Riverol
December 3,2015
Page Two
oNormal Retirement willbeattainment of age65 or completion of thirty three (33)
years of service.
oGeneral Employee contributionswillbecappedattenpercent(10%)of
compensation forcurrentGeneral Employees inthePlan.General Employees
joining theplanonorafterOctober 1,2014 willbe required to contribute three
percent (3.0%)of compensation.
oNo cost-of-living adjustmentswillbeprovided.
>General employees inthe current defined benefit planwill have a one-time option to
freezetheircurrentbenefitand join thenewTierbenefitsshownabove.
oGeneralEmployeecontributionswillbecappedattenpercent(10%)of
compensation forcurrent General Employees inthePlannot exercising this
option.
oForpurposes of thisStudy,100%of employeescurrentlyaccruingbenefitsinthe
Planareassumednottoexercisethisoption.
>Two thirds ofnew General Employees and current employees inthe Defined
Contribution plan willjointhe defined benefit plan under thenewTierbenefit provisions.
>Provide a defined benefit pension planfor employees designated as members ofthe
Administration Management Service Class withthe following benefit provisions:
oParticipantswillbe100%vesteduponcompletionofthree(3)yearsofservicefor
initialmembersasofdate of adoption.Newparticipantswillbe100%vested
uponcompletionofthree(3)orfive(5)or eight(8)years of service.
oThebenefitmultiplierwillbe3.0%foreachyear of service.
o Final Average Compensation will bethe highest eight(8)years of compensation.
o Normal Retirement willbe attainment ofage65or completion ofthirtythree (33)
years of service.
o Employees willbe required to contribute seven percent (7.0%)of compensation.
o Employees who will receive the above benefits andwhoare currently a
participant inthePlan will havetheirPlanbenefitsfrozen as of thedate of
adoption of thisnewAdministrationManagementServicePlan.
oForpurposesofthis Study,all employees eligibleforthesebenefitswilljointhis
new Administration Management Service Planandnolonger participate inthe
DefinedContributionplan.
>Alternative Defined Contribution plan offered toall General Employees
o Employees willbe required to contribute three percent (3%)of compensation
oTheCitywill contribute seven percent (7%)of compensation
oEmployeeswillbevestedafter completion of one(1)year of service
GabrielRoederSmith &c Company
Mr.Alfred Riverol
December 3,2015
Page Three
>One third of new General Employees and current employees inthe Defined Contribution
planwilljointhe Alternative Defined Contribution plan.
This Actuarial ProjectionStudywill include the development of 30-year deterministic
projections measuringtheimpact of the proposed changes.
Proposed Fees
We propose a not-to-exceedfee of $12,000.Our feeincludesone meeting withthe interested
partiesto present thekeyfinancialresults.
Other Items
Pleaseprovidealisting of employeeswhowillbe participants intheAdministration
Management Service Plan.
Timing
Wewill deliver our Actuarial Projection Study within sixty(60)days following authorization to
proceedand receipt of requesteddata.
Wetrusttheaboveisresponsivetoyourrequest.Pleasedonot hesitate tocontactusshouldyou
haveanyquestionsorrequire additional information.Welookforwardtoyourapprovalto
proceedandtoassistingtheCity of SouthMiamiwiththisimportantproject.
Sincerest regards,
Lawrence F.Wilson,A.S.A
Senior Consultant and Actuary
Gabriel Roeder Smith 8c Company