16OFFICE OF THE CITY MANAGER
INTER-OFFICE MEMORANDUM
THE CITY OF PLEASANT LIVING
To:
From:
Date:
Subject:
Background:
The Honorable Mayor & Members ofthe City Commission
December 15, 2015 Agenda Item NO.:l.!!t..
Steven J. Alexander, City Manager
A Resolution relating to budget; authorizing a transfer of $12,000 from
Finance Auditor's Fee account, to Finance Professional Services account.
It is requested that the budget for Finance Professional Services be
increased by $12,000 from account No. 001.1310.513.3210 Finance
Auditor's Fee. It is essential to provide sufficient funds for Finance's
Professional Services account to pay 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.
The City budgeted in FY 2016 for 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 was for single audit and $9,000 was
to complete the audit for the City's 185 Police Pension fund. It has been
recently determined, the single audit is not required in fiscal 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 Fee line 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 to cover the $12,000 cost of the Actuarial Projection. Finance
would like to maintain the balance in the Professional Services line item of
$5,443 to cover any future projections or required impact statements
should they be needed during fiscal year 2016.
Transfer Amount: $12,000
Transfer From: Account number 001.1410.513.3210 Finance Auditor's Fee, with a current
balance of $79,500.
Transfer To: Account number 001.1410.513.3100, Finance Professional Services, with a
current balance of $5,443.
Attachments: FY 2016 Finance Department's Adopted Budget
Gabriel Roader Smith & Company December 3, 2015 Proposal
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RESOLUTION NO. _____ _
A Resolution relating to budget; authorizing a transfer of $12,000 from Finance
Auditor's Fee account, to Finance Professional Services account.
WHEREAS, it is 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 will be used to pay
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; and,
WHEREAS, the Mayor and City Commission 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, with a 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. The City 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 this _ day of ---T' 2015.
ATIEST:
CITY CLERK
READ AND APPROVED AS TO FORM,
LANGUAGE, LEGALITY AND
EXECUTION THEREOF:
CITY ATIORNEY
APPROVED:
MAYOR
COMMISSION VOTE:
Mayor Stoddard:
Vice Mayor Harris:
Commissioner Edmond:
Commissioner Liebman:
Commissioner Welsh:
THE CITY OF PLEASANT LIVING
FINANCE DEPARTMENT
001-1410-513
"" •.. "",I·-hd"',,,· .. ,
Chief Financial Officer
Alfredo Riverol, CPA, CGFM, CGMA,
Cr. FA
.
@, ". '\,; < .'hi1.' "1', """ ". ""","""\". " .. ". "
i!i il Procurement Management Parking ~ Office Manager Division Info. Systems Division Office
I _.-----•. 'I' '''"~_ I , ." '!.l:i:.!i~ , II .. ! "I.<I:,',;'I! ;' , Ii~""";"t"'-'" '. ,,-,,1
Ii
Senior Accountant Junior Accountant Office i' Office
Support (PjT) Support (pm ,
'-.
MISSION
In a spirit of excellence. integrity, and dedication. the Finance Department is committed to
providing timely, accurate, clear and complete financial information and support to other City
Departments, citizens, and the community at large.
FINANCE DEPARTMENT FUNCTION
The Finance Department is responsible for the proper accounting of all City funds and
compliance with all applicable regulations and laws. Routine duties include processing accounts
payable. accounts receivable, central collections. general ledger fund accounting. preparation of
applicable state and federal reports. and periodic financial reports to management. administering
debt service, and investment of City funds, The Department is also responsible for the
implementation and control of the approved budget and the preparation. and disclosure of the
financial statements, including responses to the external auditors. It also provides other
Departments with financial analysis and assists with banking transactions that arise during the
year.
The Division of Parking and Central Services. as well as the Management Information System
Division report under the Finance Department.
CITY OF SOUTH MIAMI BUDGET FY 2015-2016 III
THf CItY OF PLEASANT tlVING
FINANCE DEPARTMENT ACCOMPLISHMENTS FOR FY 2015
0 Continued to require Electronic Fund are being produced at the highest
Transfer (EFT) payments as a mandatory standard possible.
process to all new vendors as the regular
form of payment from the City. 0 Posted online accurate and timely budget
and financial reports on a monthly basis.
0 Continued to produce and post online
before every second regular Commission 0 Assisted the City Manager In the
meeting of the month the City's monthly preparation of the FY 2016 Annual
finance report for the previous month. Operating and Capital Budget.
0 Continued to produce the 0 Produced and posted online the Popular
Comprehensive Annual Financial Report Annual Financial Report (PAFR).
(CAFR) with auditors issuing no findings.
0 Implemented the City's .net accounting
0 Obtained all three Government Finance system which integrates in the City's
Officers Association (GFOA) prestigious new Enterprise Resource Planning (ERP)
awards for Budget, CAFR, and PAFR; system, ONESolution.
certifying that the City's finance reports
FINANCE DEPARTMENT OBJECTIVES FOR FY 2016
o Continue implementing the ACH
payment program and requiring 70% of
all active vendors to accept ACH as the
regular form of payment from the City.
o Continue to pursue implementation and
establishment of an online payment
option for certain provided City services
such as Local Business Tax, Code
Enforcement Violations, BUilding Permit
Renewals, etc.
o Continue to produce and post online
before every second regular Commission
meeting of the month the City's monthly
finance report for the previous month.
o Continue to produce the
Comprehensive Annual Financial Report
(CAFR) without auditor findings.
o Obtaining all three Government Finance
Officers Association (GFOA) prestigious
awards for Budget, CAFR, and PAFR;
certifying that the City's finance reports
are being produced at the highest
standard possible.
CITY OF SOUTH MIAMI BUDGET FY 2015-2016 112
THE'CITY OF PI.WANT LIVING
FINANCE DEPARTMENT ACTIVITY REPORT
Number of Parking Decals Sold 788 7S0 1,000 1,100 1,200
Number of Cash Key Sold 5 0* 0*
Number of Cash Key Refills 150 5 0* 0* 0*
Number of Payroll Periods Processed 26 26 N/A** N/A** N/A**
Comprehensive Annual Fin, Rep, (CAFR) I
Popular Annual Financial
Number of Annual Balanced
Number of AlP Checks 3,363 3,200 2,800 2,800
* The Cash Key program was discontinued due to the implementation of the Parking Pay Stations.
** Payroll is now processed by Personnel Division and ADP.
CITY OF SOUTH MIAMI BUDGET FY 2015-2016 113
Soul~iami
TH£ CJTY OF PI.EASANT LIVING
38 MULTI-SPACE PAY STATIONS
PROJECTED DEBT PAYMENTS FOR FY 2016 HIGHLIGHTED
RESOLUTION 12-1 1-13326
001-141 0-513
$417,896.00
Payment Payment Payment Principal Interest Ending
Number Date Amount Component Component 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
50 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 7.389.86 7.303.44 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
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Sout~iami
THE CITY OF PLEASANl" LIVING
FINANCE DEPARTMENT BUDGET FY 2016
001·141 0·513
5131210 SALARIES· REGULAR 253,679 280,377 325,297
5131310 SALARIES· PART TIME 49,757 38,582 43,117
5132110 F.I.CA 23,593 24,451 28,184
5132210 PENSION PLAN CONTRIBUTION 13,226 11,085 9,515
5132220 DEFERRED COMPENSATION (ICMA) 9,989 11,184 17,547
5132310 GROUP HEALTH INSURANCE 25,956 26,741 35,449
5132410 WORKER'S COMPENSATION 828 676 815
TOTAL PERSONNEL SERVICES 377,028 393,096 459,924
5133100 PROFESSIONAL SERVICES 10,000 18,000 10,000
5133210 AUDITOR'S FEE 65,940 57,000 83,500
5133450 CONTRACTUAL SERVICES 9,788 24,321 36,860
5133459 CONTRACTUAL SERVICES· PRKN 0 421,120 526,659
5134070 TRAVEL & CONFERENCE 1,364 2,767 3,160
5134110 POSTAGE 4,229 5,085 7,030
5134120 COMMUNICATION 1,177 1,830 2,100
5134634 MAINTENANCE COMP PROGRAMS 12,676 17,730 35,000
5134710 PRINTING· INFRASTRUCTURE 1,588 1,490 1,668
5135205 COMPUTER EQUIPMENT 693 0 1,300
5135210 SUPPLIES 8,226 8,528 8,703
5135410 MEMBERSHIPS & SUBSCRIPTIONS 2,191 2,315 2,425
TOTAL OPERATING EXPENSES 117,872 560,186 718,405
5137110 DEBT SERVICE· PRINCIPAL 34,414 119,267 121,288
5137210 DEBT SERVICE· INTEREST 0 3,825 1,805
TOTAL DEBT SERVICE 34,414 123,092 123,093
5139920 CONTINGENCY 0 0 5,000
OTHER FUNDING SOURCE 0 0 5,000
TOTAL.FINANCE 529,314 1,076,374 1,306,422
CITY OF SOUTH MIAMI BUDGET FY 2015·2016
325,297 277,572
43,117 29,636
28,184 23,501
9,515 3,863
17,547 14,206
35,449 31,432
815 774
459,924 380,984
10,000 5,443
83,500 85,500
36,860 36,860
436,659 435,768
3,160 3,160
7,030 7,030
2,100 1,080
35,000 41,307
1,668 1,230
1,300 1,960
8,703 8,810
2,425 1,535
628,405 629,683
121,288 29,415
1,805 145
123,093 29,560
5,000 5000
5,000 5,000
1,216,422 1,045,227
115
fH£ C)rY OF PLEASANT liVING
FINANCE DEPARTMENT BUDGET HIGHLIGHTS
1210 Salaries -This line item has been decreased due to certain personnel restructuring within
Finance. The significant change within the restructuring was the relocation of the Grant's and
Sustainability Administrator position to the Planning and Zoning Department which provided for
the majority of the a salary reduction of approximately $57,228.
3459 Contractual Services -This line item has been decreased by $92,151 as the Street-Line
Project parking related item is not budgeted for Fiscal Year 2016.
71 10 Debt Service Principal-The financing of the ONESolution Finance Software was paid in
full in Fiscal Year 2015 decreasing the line item. In addition, the financing of the 38 pay stations
will be completed during the first four months of Fiscal Year 2016. Thus a total decrease of
$91,873 is projected for this line item.
CITY OF SOUTH MIAMI BUDGET FY 2015-2016 116
GRS Cabrid Roeder Smith & Company
Comltlltams & Actunrics
December 3, 2015
Mr. Alfred Riverol
Finance Director
City Hall, 1st Floor
6130 Sunset Drive
South Miami, Florida 33143
One East Brow~f(l Blvd.
Suite 505
Ft. Lauderdale, FL 33301-1804
Re: Engagement Letter for Actuarial Services -Actuarial Projection Study
Dear Alfred:
954.527.1616 phone
954525.0083 fax
www.gobriclroeder.com
As requested, Gabriel, Roeder, Smith & Company (GRS) is pleased to present this engagement
letter to perform an Actuarial Projection Study of the City of South Miami Pension Plan (Plan)
on behalf of the City.
We are enthusiastic about extending our existing relationship with you and your colleagues. We
have a long-standing commitment and experience with working on behalf of public sector
benefit programs. Our philosophy of developing a partnership with our clients emphasizes the
collaborative nature of the GRS working relationship. We strive to earn your trust as your
advisor. We will continue to work together with you in the best interest of the interested parties.
Description of Services
The professional services will be provided under the supervision of Larry Wilson, A.S.A., E.A., a
Senior Consultant and Actuary with over 25 years of experience in employee benefit plans, Kelly
Adams, A.S.A., E.A., a Consultant and Actuary with over IS years of experience with employee
benefit plans and Jen Borregard, E.A., a Consultant and Actuary with over IS years of experience
with retirement systems.
We understand the City is interested in analyzing the impact of the following proposed changes
in Plan provisions:
);> Police Officer employee contributions will be capped at eight percent (8%) 2! ten percent
(10%) of compensation.
);> Re-open the plan for General Employees with the following new Tier of benefit
provisions:
o General Employees become vested upon completion often (10) years of service.
o The benefit multiplier will be 1.6% for each year of service.
o Final Average Compensation will be the highest eight (8) years of compensation.
Mr. Alfred Riverol
December 3, 2015
Page Two
o Normal Retirement will be attainment of age 65 .!!! completion of thirty three (33)
years of service.
o General Employee contributions will be capped at ten percent (10%) of
compensation for current General Employees in the Plan. General Employees
joining the plan on or after October 1, 2014 will be required to contribute three
percent (3.0%) of compensation.
o No cost-of-living adjustments will be provided.
>-General employees in the current defined benefit plan will have a one-time option to
freeze their current benefit and join the new Tier benefits shown above.
o General Employee contributions will be capped at ten percent (10%) of
compensation for current General Employees in the Plan not exercising this
option.
o For purposes of this Study, 100% of employees currently accruing benefits in the
Plan are assumed not to exercise this option.
>-Two thirds of new General Employees and current employees in the Defined
Contribution plan will join the defined benefit plan under the new Tier benefit provisions.
>-Provide a defined benefit pension plan for employees designated as members of the
Administration Management Service Class with the following benefit provisions:
o Participants will be 100% vested upon completion ofthree (3) years of service for
initial members as of date of adoption. New participants will be 100% vested
upon completion of three (3) ill: five (5) .!!! eight (8) years of service.
o The benefit multiplier will be 3.0% for each year of service.
o Final Average Compensation will be the highest eight (8) years of compensation.
o Normal Retirement will be attainment of age 65 .!!! completion of thirty three (33)
years of service.
o Employees will be required to contribute seven percent (7.0%) of compensation.
o Employees who will receive the above benefits and who are currently a
participant in the Plan will have their Plan benefits frozen as of the date of
adoption of this new Administration Management Service Plan.
o For purposes of this Study, all employees eligible for these benefits will join this
new Administration Management Service Plan and no longer participate in the
Defined Contribution plan.
>-Alternative Defined Contribution plan offered to all General Employees
o Employees will be required to contribute three percent (3%) of compensation
o The City will contribute seven percent (7%) of compensation
o Employees will be vested after completion of one (I) year of service
Gabriel Roeder Smith & Company
Mr. Alfred Riverol
December 3, 2015
Page Three
~ One third of new General Employees and current employees in the Defined Contribution
plan will join the Alternative Defined Contribution plan.
This Actuarial Projection Study will include the development of 30-year deterministic
projections measuring the impact of the proposed changes.
Proposed Fees
We propose anot-to-exceedfee of$12,000. Our fee includes one meeting with the interested
parties to present the key financial results.
Other Items
Please provide a listing of employees who will be participants in the Administration
Management Service Plan.
Timing
We will deliver our Actuarial Projection Study within sixty (60) days following authorization to
proceed and receipt of requested data.
We trust the above is responsive to your request. Please do not hesitate to contact us should you
have any questions or require additional information. We look forward to your approval to
proceed and to assisting the City of South Miami with this important project.
Sincerest regards,
~.~.U~
Lawrence F. Wilson, A.S.A
Senior Consultant and Actuary
Gabriel Roeder Smith & Company