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15Agenda Item No:15. City Commission Agenda Item Report Meeting Date: January 7, 2020 Submitted by: Michelle Caloca Submitting Department: Finance Department Item Type: Ordinance Agenda Section: Subject: An Ordinance relating to the amendment of the City’s 2019-2020 fiscal year budget and increasing the appropriation amount for the General Fund and allocating such increase to the Non-Departmental, line item 001-2100-519-9924. 3/5 (City Manager-Finance Dept.) Suggested Action: Attachments: Memo - Ordinance Increasing Appropriations for Pension COLA Benefit.docx Ordinance Increasing Appropriations for Pension COLA Benefit.docx Ordinance No. 35-19-2348 - COLA Approved.pdf Reso 123-19-15395 - Fully Executed AFSCME Agreement 2019-2022.pdf Summary of Retirement Plan Costs as of October 1, 2018 - Actuarial Valuation Funding Ratio Info.pdf COLA Projection Study (30 Years).pdf Pages from 2018 south miami CAFR.pdf MDBR Ad..pdf MH ad..pdf 1 CITY OF SOUTH MIAMI OFFICE OF THE CITY MANAGER INTER-OFFICE MEMORANDUM To:The Honorable Mayor, Vice Mayor and Members of the City Commission From:Steven Alexander, City Manager Date:January 7, 2020 Request:An Ordinance relating to the amendment of the City's 2019-2020 fiscal year budget and increasing the appropriation amount for the General Fund and allocating such increase to the Non-Departmental, line item 001-2100-519-9924. Background The City Commission adopted Ordinance 35-19-2348 which provided the changes necessary to bring the City into compliance with the newly executed Collective Bargaining Agreement between the City of South Miami and the American Federation of State, County and Municipal Employees, AFL-CIO, City Employees Local 3294 (AFSCME) (Resolution 123-19-15395). Based on the City’s October 1, 2018 Actuarial Valuation report provided by the City’s Pension Plan Actuary, the City of South Miami Pension Plan is currently 110% funded. This means that the Pension Plan is very strong and is in possession of 10% more funds than is necessary to fund its financial obligation to retired employees. Attached is the Summary of Retirement Plan Costs as of October 1, 2018. Proposed Ordinance In order to ensure the COLA benefit is actually provided to the employees in the future, it is recommended to provide full funding for this employee benefit at the present time. This will eliminate the temptation of future Commissions to not fund this important benefit due to future financial concerns or preferences. The proposed Ordinance will amend the City’s General Fund appropriation amount for fiscal year 2019-2020 to guarantee funds for the reinstatement of the Cost of Living (COLA) pension benefit for the next 30-years. Based on the projections provided by the City’s Pension Actuary, the overall cost to the City over 30-years is expected to be $5,642,000. The present value of that amount is estimated to be $1,538,292. In other words, if we fund the $1,538,292 now, we will save millions over the long run and make certain for our employees that the benefit they desired is fully funded. The City is currently proposing in this Ordinance that the benefit be paid in fiscal year 2019-2020. In order to pay this sum, the City Commission must approve an increase in the appropriation amount for the General Fund and a decrease in the Unreserved, Unrestricted fund balance which has an approximate current balance of $4,550,816 as of September 30, 2018. 2 The City looked at multiple refinancing and funding opportunities and has since determined, that the most beneficial to the City is to fund the benefit using City surplus and the City’s existing unreserved, unfunded fund balance. The City is recommending allocating an increase of the budget in line item 001-2100-519-9924 of the Non-Departmental section of $1,538,292 thereby realizing an overall savings of $4,103,708 ($1,538,292 - $5,642,000). Financial Impact of Proposed Ordinance Using, time value of money, or TVM, one assumes a dollar in the present is worth more than a dollar in the future because of variables such as inflation and interest rates. Inflation is the general increase in prices, which means that the value of money depreciates over time as a result of that change in the general level of prices. In summary, by paying the entire estimated benefit using today’s present value, the City saves by not needing to pay for the benefit for an estimated 30-years and saves on all the interest and inflation that will occur during that time. The intention of paying off the benefit to avoid inflation and costs in the future, oddly enough falls inline with the reason the City is reinstating the COLA benefit for pension benefits for its employees; to help maintain the value of their earned benefit against inflation and future costs. The COLA Benefit cost will be a Net Present Value of $1,538,292, when compared to the actuarial 30-year cost of $5,642,000, providing for an overall savings of $4,103,708 ($1,538,292 - $5,642,000). Recommendation Approve the attached Ordinance that enables the City to fund the reinstatement of the COLA pension benefit using todays value, which will ultimately save the City over 4 million of dollars over the next 30-years. Attachments Proposed Ordinance Ordinance 35-19-2348 Resolution 123-19-15395 Approving the American Federation of State, County and Municipal Employees, AFL-CIO, City Employees Local 3294, CBA Summary of Retirement Plan Costs as of October 1, 2018 GRS 30-year Projection Study City of South Miami CAFR – Balance Sheet as of September 30, 2018 3 Page 1 of 1 ORDINANCE NO. _________________1 An Ordinance relating to the amendment of the City’s 2019-2020 fiscal year budget2 and increasing the appropriation amount for the General Fund and allocating such 3 increase to the Non-Departmental, line item 001-2100-519-9924.4 WHEREAS,the City Commission desires to save taxpayer dollars, guarantee the benefit, 5 and minimize the impact to the City’s finances, by paying for the Pension Supplemental Benefit 6 (COLA) for the next 30-years at the present value amount of $1,538,292; and,7 WHEREAS,the City Commission will continue the Pension Supplemental Benefit 8 (COLA) to all general employees in consideration of the benefit being paid for the next 30-years; 9 and,10 WHEREAS, Florida Statue 166.241(4) provides that:11 (4) The governing body of each municipality at any time within a fiscal year or 12 within 60 days following the end of the fiscal year may amend a budget for that 13 year as follows:14 a)Appropriations for expenditures within a fund may be decreased or 15 increased by motion recorded in the minutes if the total appropriations 16 of the fund is not changed.17 b)The governing body may establish procedures by which the designated 18 budget officer may authorize budget amendments if the total 19 appropriations of the fund is not changed.20 c)If a budget amendment is required for a purpose not specifically 21 authorized in paragraph (a) or paragraph (b), the budget amendment 22 must be adopted in the same manner as the original budget unless 23 otherwise specified in the municipality’s charter.24 WHEREAS, the Non-Departmental section of the budget was historically used to allocate 25 City expenditures that have not otherwise been provided for in a specific section of the budget; 26 and, 27 WHEREAS, in order to pay this sum,the City Commission by approval of this Ordinance will28 approve an increase of the appropriation amount for the General Fund, from the Unreserved, 29 Unrestricted fund balance which has an approximate current balance of $4,550,816 and allocating 30 the increase to the Non-Departamental section, and specifically to line item 001-2100-519-9924.31 NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY COMMISSION OF THE 32 CITY OF SOUTH MIAMI, FLORIDA:33 Section 1.The foregoing recitals are hereby adopted and incorporated herein as if 34 fully stated with full effect.35 4 Page 2 of 1 Section 2. The City of South Miami’s fiscal year 2019/2020 budget is hereby amended by 36 increasing the General Fund appropriation by $1,538,292 from the unreserved, 37 unrestricted fund balance and allocating such increase to Non-Departmental, line item 38 001-2100-519-9924 to fund the Pension Supplemental Benefit (COLA) for the next 30-39 years at the present value amount of $1,538,292.40 Section 3. Severability. If any section, clause, sentence, or phrase of this ordinance is for 41 any reason held invalid or unconstitutional by a court of competent jurisdiction, this holding shall 42 not affect the validity of the remaining portions of this ordinance.43 Section 4. Ordinances in Conflict. All ordinances or parts of ordinances and all sections44 and parts of sections of ordinances in direct conflict herewith are hereby repealed.45 Section 5. Effective Date. This ordinance shall become effective upon enactment.46 PASSED AND ENACTED this ____ day of _____________, 2020.47 ATTEST:APPROVED:48 49 ________________________________________________50 CITY CLERK MAYOR51 1st Reading 52 2nd Reading 53 54 READ AND APPROVED AS TO FORM:COMMISSION VOTE:55 LANGUAGE, LEGALITY AND Mayor Stoddard:56 EXECUTION THEREOF Vice Mayor Harris: 57 Commissioner Gil:58 Commissioner Welsh:59 ________________________Commissioner Liebman:60 CITY ATTORNEY 61 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 South Miami Pension Plan 17 Table I (Cont'd) Cost % of Data Payroll A.Participant Data Summary 1.Active employees 107 N/A 2.Terminated vested 9 N/A 3.Receiving benefits 48 N/A 4.Annual payroll of active employees 6,675,196$ 100.0% B.Total Normal Costs 1.Age retirement benefits 661,676$ 9.9% 2.Termination benefits 136,634 2.0% 3.Death benefits 7,261 0.1% 4.Disability benefits 36,993 0.6% 5.Estimated administrative expenses 139,324 2.1% 6.Total annual normal costs 981,888$ 14.7% C.Total Actuarial Accrued Liability 1.Age retirement benefits active employees 17,041,813$ 255.3% 2.Termination benefits active employees 757,122 11.3% 3.Death benefits active employees 69,498 1.0% 4.Disability benefits active employees 498,344 7.5% 5.Retired or terminated vested participants receiving benefits 19,210,022 287.8% 6.Terminated vested participants entitled to future benefits 1,266,989 19.0% 7.Deceased participants whose beneficiaries are receiving benefits 176,438 2.6% 8.Disabled participants receiving benefits 0 0.0% 9.Miscellaneous liability 149,378 2.2% 10.Total actuarial accrued liability 39,169,604$ 586.8% D.Market Value of Assets (Table V)43,219,378$ 647.5% E.Smoothed Value of Assets (Table V)41,264,634$ 618.2% F.Unfunded Actuarial Accrued Liability (C. - E.)(2,095,030)$ (31.4%) Summary of Retirement Plan Costs as of October 1, 2018 All Participants 121 September 30, 2019 Mr. Alfred Riverol Finance Director City Hall, 1st Floor 6130 Sunset Drive South Miami, Florida 33143 Re: Actuarial Projection Study South Miami Pension Plan – General Employees (Tiers 1 and 2) and AMSC Members Dear Alfred: As requested, we are pleased to enclose our Actuarial Projection Study including thirty (30) year projections beginning October 1, 2018 for General Employees (Tiers 1 and 2) and AMSC members of the South Miami Pension Plan illustrating the financial impact of the current and proposed provisions. Census data and financial information is reported as of October 1, 2018. If you should have any question concerning the above or if we may be of further assistance with this matter, please do not hesitate to contact us. Sincerest regards, Jennifer M. Borregard, E.A., M.A.A.A., F.C.A. Consultant and Actuary Shelly L. Jones, A.S.A, E.A., M.A.A.A., F.C.A. Consultant and Actuary Enclosures 122 South Miami Pension Plan Actuarial Projection Study For General Employees (Tiers 1 and 2) and Administration Management Service Class (AMSC) Employees as of October 1, 2018 Prepared: September 30, 2019 123 124 TABLE OF CONTENTS Page I. Executive Summary .......................................................................................................... 1 II. Projection Results ............................................................................................................ 4 III. Outline of Principal Provisions of the Retirement Plan ................................................... 6 IV. Actuarial Assumptions and Cost Methods ..................................................................... 12 V. Glossary .......................................................................................................................... 17 125 South Miami Pension Plan 1 EXECUTIVE SUMMARY As requested, we have completed thirty (30) year projections illustrating the financial impact of proposed changes to the benefit provisions of the South Miami Pension Plan (Plan) for General Employees (Tiers 1 and 2) and Administration Management Service Class (AMSC) Employees. Background Currently, the Plan does not provide a cost of living supplemental benefit for Tier 2 General Employees and AMSC Employees. Currently, the Plan provides a cost of living supplemental benefit based on the consumer price index, limited to 3.0%, upon retirement on the accrued benefit as of September 30, 2011 for Tier 1 General Employees. Proposed Changes We understand the City is interested in an analysis of providing a cost of living supplemental benefit based upon the consumer price index, limited to 3.0%, upon retirement on the entire accrued benefit for General Employees (Tiers 1 and 2) and AMSC Employees. Results The following table shows the current City cost over the next five (5), ten (10) and thirty (30) years for the baseline (current plan) and for the proposed benefit changes described above both as a dollar amount and as a percentage of projected covered payroll, respectively. Current Plan Amount Amount Increase / (Decrease) Next Year - Projected Payroll $3,620 $3,620 $0 - City Cost $$287 $396 $109 - City Cost %7.9%11.0%3.0% Next 5 Years - Projected Payroll $18,829 $18,829 $0 - City Cost $$1,553 $2,146 $593 - City Cost %8.2%11.4%3.1% Next 10 Years - Projected Payroll $40,632 $40,632 $0 - City Cost $$3,437 $4,760 $1,322 - City Cost %8.5%11.7%3.3% Next 30 Years - Projected Payroll $165,699 $165,699 $0 - City Cost $$14,157 $19,799 $5,642 - City Cost %8.5%11.9%3.4% Summary of Costs ($1,000s) COLA for Future Retirees 126 South Miami Pension Plan 2 Actuarial Assumptions and Methods, Plan Provisions, Financial Data and Member Census Data Actuarial assumptions and methods, Plan provisions, financial data and member census data employed for purposes of our Actuarial Projection Study are the same actuarial assumptions and methods, Plan provisions, financial data and member census data utilized for the October 1, 2018 Actuarial Impact Statement dated June 14, 2019 unless otherwise specified herein. The Plan provisions are the same as outlined in the October 1, 2018 Actuarial Impact Statement with the following revision: • A cost of living supplemental benefit based upon the consumer price index, limited to 3.0%, is provided upon retirement on the entire accrued benefit for General Employees (Tiers 1 and 2) and AMSC employees. The following projection assumptions have been included: • Two (2) AMSC employees transferred from City’s DC plan are added to the Study. • General Tier 2 and AMSC employees are assumed to be hired each year at a rate sufficient to maintain a constant active headcount – stationary population. New General Tier 2 and AMSC employees are assumed to have the same average demographic characteristics (age, gender, salary – adjusted each year for inflation) as those employees hired for General Tier 2 and AMSC employees over the past five years, respectively. • Expenses paid by the City are assumed to be 0.4% of the projected market value of assets during the projection period. • Projections are deterministic – throughout the projection period experience is expected to match the assumptions – including a 7.375% annual market value investment return for fiscal year ended September 30, 2019 and thereafter. Other Considerations Under Governmental Accounting Standards Board (GASB) Statement Number 68, we understand the cost of benefit changes must be recognized immediately in pension expense (accounting not funding). Therefore, pension expense is expected to increase the first year and then is expected to return to lower levels in fiscal years following initial recognition of the benefit change. This Actuarial Projection Study is intended to describe the estimated future financial effects of the proposed benefit changes on the Plan and is not intended as a recommendation in favor of the change nor in opposition to the change. These calculations are based upon assumptions regarding future events. However, the Plan’s long term costs will be determined by actual future events, which may differ materially from the assumptions made. If you have reason to believe the assumptions used are unreasonable, the Plan provisions are incorrectly described or referenced, important Plan provisions relevant to this Actuarial Projection Study are not described or that conditions have changed since the calculations were made, you should contact the undersigned prior to relying on information in this Actuarial Projection Study. If you have reason to believe 127 South Miami Pension Plan 3 that the information provided in this Actuarial Projection Study is inaccurate, or is in any way incomplete, or if you need further information in order to make an informed decision on the subject matter of this report, please contact the undersigned prior to making such decision. If all actuarial assumptions are met and if all future minimum required contributions are paid, Plan assets will be sufficient to pay all Plan benefits, future contributions are expected to remain relatively stable as a percent of payroll and the funded status is expected to improve. Future actuarial measurements may differ significantly from the current measurements presented in this report due to such factors as the following: Plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the Plan’s funded status); and changes in Plan provisions or applicable law. Due to the limited scope of the actuary’s assignment, the actuary did not perform an analysis of the potential range of such future measurements. This report should not be relied on for any purpose other than the purpose described in the primary communication. Determinations of the financial results associated with the benefits described in this report in a manner other than the intended purpose may produce significantly different results. This report has been prepared by actuaries who have substantial experience valuing public employee retirement systems. To the best of our knowledge the information contained in this report is accurate and fairly presents the actuarial position of the Plan as of the valuation date. All calculations have been made in conformity with generally accepted actuarial principles and practices, with the Actuarial Standards of Practice issued by the Actuarial Standards Board and with applicable statutes. The signing actuaries are independent of the Plan sponsor. The undersigned are Members of the American Academy of Actuaries and meet the Qualification Standards of the American Academy of Actuaries to render the actuarial opinion contained herein. If you should have any question concerning the above or if we may be of further assistance with this matter, please do not hesitate to contact us. Sincerest regards, Jennifer M. Borregard, E.A., M.A.A.A., F.C.A. Consultant and Actuary Shelly L. Jones, A.S.A., M.A.A.A., E.A., F.C.A. Consultant and Actuary 128 South Miami Pension Plan 4 PROJECTION RESULTS The Plan provides a cost of living supplemental benefit based upon the consumer price index, limited to 3.0%, on entire accrued benefits for General Employees (Tiers 1 and 2) and AMSC Employees. The change applies to all future retirees. The following Table shows projected covered payroll, comparison of projected City cost and Unfunded Actuarial Accrued Liabilities (UAAL) under the baseline forecast versus the Study – ($1,000s). Increase /Cumulative Increase / Fiscal Projected (Decrease)Inc. / (Dec.)(Decrease) Year Annual in Net in Net in End Payroll Amount % of Pay UAAL Amount % of Pay UAAL City Cost City Cost UAAL 2020 3,620 287 7.9% (2,112) 396 11.0% (868) 109 109 1,245 2021 3,656 303 8.3% (2,698) 416 11.4% (1,398) 114 223 1,301 2022 3,730 308 8.2% (3,228) 426 11.4% (1,868) 118 341 1,360 2023 3,853 321 8.3% (3,620) 444 11.5% (2,196) 123 464 1,424 2024 3,971 334 8.4% (3,949) 463 11.7% (2,456) 129 593 1,494 2025 4,132 351 8.5% (4,306) 486 11.8% (2,739) 135 728 1,567 2026 4,253 362 8.5% (4,694) 503 11.8% (3,048) 140 868 1,646 2027 4,380 375 8.6% (5,116) 521 11.9% (3,386) 146 1,014 1,730 2028 4,443 390 8.8% (5,576) 541 12.2% (3,758) 151 1,165 1,818 2029 4,595 406 8.8% (6,078) 564 12.3% (4,167) 157 1,322 1,911 2030 4,716 421 8.9% (6,622) 584 12.4% (4,613) 163 1,486 2,009 2031 4,888 436 8.9% (7,214) 605 12.4% (5,100) 170 1,655 2,113 2032 5,051 447 8.8% (7,853) 622 12.3% (5,629) 175 1,830 2,224 2033 5,137 464 9.0% (8,547) 646 12.6% (6,208) 181 2,012 2,340 2034 5,292 476 9.0% (9,299) 663 12.5% (6,836) 187 2,199 2,463 2035 5,437 494 9.1% (10,111) 689 12.7% (7,519) 194 2,394 2,592 2036 5,629 509 9.0% (10,992) 710 12.6% (8,263) 202 2,595 2,729 2037 5,743 521 9.1% (11,943) 729 12.7% (9,069) 208 2,803 2,874 2038 5,880 539 9.2% (12,970) 754 12.8% (9,943) 215 3,019 3,027 2039 6,028 552 9.2% (14,076) 774 12.8% (10,888) 222 3,241 3,188 2040 6,200 564 9.1% (15,268) 793 12.8% (11,909) 229 3,469 3,359 2041 6,369 581 9.1% (16,551) 818 12.8% (13,011) 237 3,706 3,540 2042 6,622 578 8.7% (17,929) 824 12.4% (14,198) 247 3,953 3,731 2043 6,797 595 8.8% (19,387) 850 12.5% (15,452) 255 4,208 3,935 2044 6,987 548 7.8% (20,953) 767 11.0% (16,802) 219 4,427 4,151 2045 7,197 565 7.8% (22,578) 792 11.0% (18,154) 227 4,654 4,425 2046 7,423 583 7.9% (24,323) 818 11.0% (19,605) 235 4,889 4,718 2047 7,656 600 7.8% (26,196) 842 11.0% (21,166) 243 5,132 5,031 2048 7,881 617 7.8% (28,210) 868 11.0% (22,844) 251 5,383 5,365 2049 8,132 630 7.7% (30,369) 889 10.9% (24,646) 259 5,642 5,723 5 Year Total 18,829 1,553 8.2%2,146 11.4%593 10 Year Total 40,632 3,437 8.5%4,760 11.7%1,322 30 Year Total 165,699 14,157 8.5%19,799 11.9%5,642 Current Plan COLA for Future Retirees Projected Projected Net City Cost Net City Cost 129 South Miami Pension Plan 5 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% Projected City Contribution as of % of Payroll General Employees (Tiers 1 and 2) and AMSC Employees Current Plan COLA Study 130 South Miami Pension Plan 6 OUTLINE OF PRINCIPAL PROVISIONS OF THE PLAN PRIOR TO ANY PROPOSED CHANGES INCLUDED IN THIS STUDY A.Effective Date: B.Eligibility Requirements: 1.General Employees Tier 1: Tier 2: 2.Police Officers 3.Administration Management Service Class (AMSC) City Manager Chief Administrative Officer (currently Finance Office Mana City Attorney Chief Procurement Officer (currently Purchasing Manager) City Clerk Parks and Recreation Director Assistant / Deputy City Manager Assistant Director of Parks and Recreation Finance Director / Chief Financial Officer Community Redevelopment Agency Director Chief of Police Personnel Manager Planning and Zoning Director Project Manager Building Director Special Assistant to the Manager Director of Public Works Superintendent of Maintenance Any regular full-time employee who previously entered into the Defined Contribution (DC)Plan may opt-out of the DC Plan and elect to join the Plan as a Tier 2 member or as their respective classification at the time they elect to join the Plan during an annual open enrollment period. Regular full-time Police Officer is eligible to enter the Plan as of date of employment. Employees of the City with the following positions who do not elect to participate in a defined contribution Plan of the City: October 1, 1965. Most recently amended by Ordinance 23-19-2336 adopted June 18, 2019. Regular full-time employee hired before October 1, 2011 is eligible to enter the Plan following the completion of six months of Credited Service and attainment of age 20. Regular full-time employee hired on or after October 1, 2011 and not participating in the Plan as of October 1, 2016 who elects to join or fails to make any election within ninety (90)days from September 20, 2016 is eligible to enter the Plan as a Tier 2 employee as of October 1, 2016. Regular full-time employee hired on or after October 1, 2016 who elects to join or fails to make any election within ninety (90)days from date of hire is eligible to enter the Plan as a Tier 2 employee as of their date of hire. 131 South Miami Pension Plan 7 C.Credited Service: 1.General Employees and AMSC 2.Police Officers D.Final Monthly Compensation (FMC): Effective October 1, 2011,Final Average Compensation for General Employees is 1/60th of the final 60 consecutive months of basic compensation, provided it is not less than the Final Average Compensation as of September 30, 2011 based on the definition above. Basic compensation shall mean base wages and salaries,excluding commissions,overtime pay,bonuses and any other forms of additional compensation earned outside of base wages. Effective October 1, 2011,Final Average Compensation for members covered under the Police Officers and Sergeants collective bargaining agreement is the best five (5)years of basic compensation, provided it is not less than the Final Average Compensation as of September 30, 2011 based on the definition above. Basic compensation shall mean base wages and salaries,includingup to 300 hours of overtime in a fiscal yearand excludingpayments for accrued unused sick or annual leave,extra duty or special detail work,shift differential,assignment pay,bonuses and any other forms of additional compensation earned outside of base wages. Continuous employment.Credited service shall exclude continuous employment prior to Plan participation as follows:(1)If employed prior to October 1, 1973,credited service shall exclude the first two years of continuous employment and any additional year of continuous employment prior to attainment of age 25. (2)If employed on or after October 1, 1973,credited service shall exclude the first six (6) months of continuous employment and continuous employment prior to age 20. Credited service for Tier 2 employees and AMSC will be continuous employment from the date of hire for all purposes except for benefit accruals which will be from the later of date of Plan entry election date or date of hire. Continuous employment.For Police Officers whodid not participate when first eligible for the Plan, Credited Service shall exclude continuous employment prior to Plan participation as follows:(1)If employed prior to October 1, 1973,Credited Service shall exclude the first two years of continuous employment and any additional year of continuous employment prior to attainment of age 25. (2)If employed on or after October 1, 1973,Credited Service shall exclude the first six (6)months of continuous employment and continuous employment prior to age 20. Final Average Compensation is 1/36th of the final 36 consecutive months of compensation.For Police Officers,not less than 1/5th of the highest five (5)years out of the last (10)ten years of compensation. Compensation shall mean regular wages and salaries,excluding bonuses,vacation,sick leave and other additional compensation. 132 South Miami Pension Plan 8 D.Final Monthly Compensation (FMC) (cont'd): E.Normal Retirement: 1.Eligibility: a.General Employees: b.Police Officers: c.AMSC: 2.Benefit: The monthly Plan benefit is the product of: a.FMC, b.Credited Service during the appropriate period and c.The appropriate benefit percentage The appropriate benefit percentages are: a.General Employees For Credited Service Percentage Through September 30, 1999 2.50% October 1, 1999 through September 30, 2011 2.75% October 1, 2011 and thereafter 2.25% Attainment of age 65 and completion of ten (10)years of Credited Service or completion of thirty-three (33)years of Credited Service regardless of age for Tier 2 General Employees. Attainment of age 60 and completion of ten (10)years of Credited Service or completion of twenty-five (25)years of Credited Service regardless of age. Attainment of age 60 and completion of five (5)years of Credited Service or completion of thirty-three (33) years of Credited Service regardless of age. Effective October 1, 2016,Final Average Compensation for members covered under the Miami-Dade County Police Benevolent Association Upper-Collective Bargainning Union (Lieutenants &Captains) collective bargaining agreement is the best five (5)years of basic compensation, provided it is not less than the Final Average Compensation as of September 30, 2016 based on the definition above. Basic compensation shall mean base wages and salaries,including up to 300 hours of overtime in a fiscal year and excluding payments for accrued unused sick or annual leave,extra duty or special detail work,shift differential,assignment pay,bonuses and any other forms of additional compensation earned outside of base wages. Final Average Compenation for Tier 2 General Employees and AMSC shall be the average of the highest eight (8) years of credit service. Attainment of age 55 and completion of ten (10)years of Credited Service for benefits accrued as of September 30, 2011. Attainment of age 60 and completion of ten (10)years of Credited Service for benefits accrued after September 30, 2011,including increases in the accrued benefit as of September 30, 2011 due to increases in the Final Average Compensation. 133 South Miami Pension Plan 9 E.Normal Retirement (cont'd): 2.Benefit: b.Police Officers For Credited Service Percentage Through September 30, 1995 2.00% October 1, 1995 through September 30, 1996 2.25% October 1, 1996 through September 30, 1997 2.50% October 1, 1997 through September 30, 2001 2.75% October 1, 2001 through September 30, 2002 2.80% October 1, 2002 through September 30, 2003 2.90% October 1, 2003 and thereafter 3.00% c.General Employees (Tier 2)For Credited Service Percentage October 1, 2016 and thereafter 1.60% d.AMSC For Credited Service Percentage October 1, 2016 and thereafter 3.00% F.Supplemental Benefit: G.Early Retirement: 1.Eligibility: a.Police Officers: b.AMSC: 2.Benefit: a.Police Officers: Attainment of age 50 and completion of 15 years of Credited Service. Attainment of age 55 and completion of 10 years of Credited Service. Accrued benefit based upon FMC and Credited Service as of Early Retirement Date,reduced 3%for each year that the benefit commencement date precedes Normal Retirement. A cost-of-living supplemental benefit based upon the consumer price index is provided upon retirement. The annual increase is limited to 3%. For General Employees the cost-of-living supplemental benefit is only provided on the accrued benefit as of September 30, 2011 and does not apply to increases in this accrued benefitdue to increases in the Final Average Compensation. No cost-of-living supplemental benefit is provided for Tier 2 General Employees. No cost-of-living supplemental benefit is provided for AMSC for benefit accruals on or after October 1, 2011. 134 South Miami Pension Plan 10 G.Early Retirement (cont'd): 2.Benefit: b.AMSC: H.Delayed Retirement: 1.Eligibility: 2.Benefit: I.Disability Retirement: 1.Eligibility: 2.Benefit: J.Pre-Retirement Death Benefit: K.Benefit Upon Termination of Service: 1. a. b. 2.Vesting Schedule: All employees except AMSC: Years of Vesting Credited Service Percentage Less than 10 0% 10 or more years 100% Accrued benefit based upon FMC and Credited Service as of Delayed Retirement Date. Accrued benefit based upon FMC and Credited Service as of Early Retirement Date, reduced 1/15 for each of the first five years and 1/30 for the next five years that the benefit commencement date precedes Normal Retirement. Retirement subsequent to Normal Retirement Date. Benefit which can be supported by the accumulated Member Contributions with interest to Normal Retirement Date. No supplemental benefit shall be payable to vested terminees. Totally and permanently disabled for a six month period while actively employed. Accrued benefit based upon FMC and Credited Service as of date of disability, actuarially reduced as for Early Retirement for early commencement. The beneficiary shall receive the member's accumulated Employee Contributions. Benefit payable at Normal Retirement equal to the greater of: Accrued benefit based upon FMC and Credited Service as of date of termination times the vesting percentage shown below, or 135 South Miami Pension Plan 11 K.Benefit Upon Termination of Service (cont'd): AMSC: Years of Vesting Credited Service Percentage Less than 5 0% 5 or more years 100% 3.Refund Option: L.Member Contributions: M.Normal Form of Retirement Income: N.Changes Since Previous Actuarial Impact Statement: Should the City contribution for Police Officers be actuarially determined to exceed 7.5%,not including expenses,both the City and the Police Officers will share equally in the amount in excess of 7.5% but not more than 12.0%. The normal form of payment shall be a life annuity with a guarantee of a refund of accumulated Employee Contributions. None. AMSC members who have completed three (3)years of continuous Credited Service as of the effective date of this Ordinance date are 100% vested. A terminated member may elect to receive a refund of Accumulated Contributions without interest in lieu of receiving any other Plan benefits. Members contribute 7.0% (3.0%for Tier 2 General Employees and 7.5%for Police Officers)of member's basic annual compensation. Should the City contribution for General Employees be actuarially determined to exceed 7.0%, not including expenses,both the City and the General Employees (other than Tier 2 General Employees and AMSC)will share equally in the amount in excess of 7.0%.General Employees (other than Tier 2 General Employees and AMSC)Contributions are capped at 10%of basic annual compensation as of October 1, 2016. 136 South Miami Pension Plan 12 ACTUARIAL ASSUMPTIONS AND METHODS PRIOR TO ANY PROPOSED CHANGES INCLUDED IN THIS STUDY A.Mortality General Employees including AMSC Mortality Assumptions: Sample Ages (2018)Male Female Male Female 55 30.53 33.57 30.10 33.34 60 25.60 28.54 25.44 28.44 62 23.70 26.58 23.60 26.52 Sample Ages (2038)Male Female Male Female 55 32.67 35.41 32.26 35.21 60 27.78 30.38 27.63 30.30 62 25.87 28.40 25.78 28.35 Future Life Future Life For healthy male participants during employment,RP 2000 Combined Male Healthy Participant Mortality Table,with 50%White Collar /50%Blue Collar Adjustment and fully generational mortality improvements projected to each future decrement date with Scale BB.For healthy female participants during employment,RP 2000 Combined Female Healthy Participant Mortality Table,with White Collar Adjustment and fully generational mortality improvements projected to each future decrement date with Scale BB. For healthy male participants post employment,RP 2000 Annuitant Male Mortality Table,with 50% White Collar /50%Blue Collar Adjustment and fully generational mortality improvements projected to each future decrement date with Scale BB.For healthy female participants post employment,RP 2000 Annuitant Female Mortality Table,with White Collar Adjustment and fully generational mortality improvements projected to each future decrement date with Scale BB. For disabled male participants,RP 2000 Disabled Male Mortality Table,setback four years,without projected mortality improvements.For disabled female participants,RP 2000 Disabled Female Mortality Table, set forward two years, without projected mortality improvements. Pre-retirement Post-retirement Expectancy (Years)Expectancy (Years) Expectancy (Years)Expectancy (Years) Pre-retirement Post-retirement Future Life Future Life 137 South Miami Pension Plan 13 A.Mortality (cont'd) Police Officer Mortality Assumptions: Sample Ages (2018)Male Female Male Female 55 29.84 32.60 29.33 32.40 60 24.96 27.56 24.76 27.41 62 23.09 25.59 22.97 25.49 Sample Ages (2038)Male Female Male Female 55 32.06 34.54 31.57 34.36 60 27.21 29.49 27.03 29.36 62 25.34 27.51 25.23 27.42 Future Life Future Life For healthy participants during employment,RP-2000 Combined Healthy Participant Mortality Tables, separate rates for males and females,with 90%Blue Collar Adjustment /10%White Collar Adjustment and fully generational mortality improvements projected to each future decrement date with Scale BB. For healthy participants post employment,RP-2000 Annuitant Mortality Tables,separate rates for males and females,with 90%Blue Collar Adjustment /10%White Collar Adjustment and fully generational mortality improvements projected to each future decrement date with Scale BB. For disabled male participants,60%RP 2000 Disabled Male Mortality Table setback four years /40%RP 2000 Annuitant Male Mortality Table,with White Collar Adjustment and no setback,without projected mortality improvements.For disabled female particpants,60%RP 2000 Disabled Female Mortality Table set forward two years /40%RP 2000 Annuitant Female Mortality Table,with White Collar Adjustment, without projected mortality improvements. Pre-retirement Post-retirement Expectancy (Years)Expectancy (Years) Expectancy (Years)Expectancy (Years) Pre-retirement Post-retirement Future Life Future Life 138 South Miami Pension Plan 14 B.Investment Return to be Earned by Fund C.Allowances for Expenses or Contingencies D.Employee Withdrawal Rates Service Police General / AMSC 1 - 2 12.00 20.00 3 - 6 8.00 9.25 7 - 10 8.00 5.00 11 & Over 3.50 5.00 E.Disability Rates F.Marital Assumptions G.Salary Increase Factors Police 5.25% 3.75% 3.75% 3.75% Current salary is assumed to increase in accordance with the following table based upon number of years of service - includes wage inflation of 3.25%. 7.375% (net of investment expenses), compounded annually - includes inflation at 2.75%. Actual expenses paid in previous year. Withdrawal rates for males and for females were used in accordance with the following illustrative example based upon number of years of service: Withdrawal Rates Per 100 Employees 1985 Disability Study, Class 1 with separate rates for females. 100%of active members are assumed to be married.Where applicable,females are assumed to be three years younger than their male spouses. Service General / AMSC 0 - 9 5.25% 20 & over 3.75% 10 - 14 4.75% 15 - 19 4.25% 139 South Miami Pension Plan 15 H.Increase in Covered Payroll I.Retirement Rates Years Preceding Normal Retirement Police 1 - 6 5% 7 - 10 10% Age Police General *AMSC ** 55 - 59 N/A 10%10% 60 - 61 25%10%25% 62 - 64 40%25%35% 65 - 66 100%25%35% 67 & above 100%100%100% Service Police 25 years 100% * ** J.Cost of Living Increases K.Valuation of Assets Rates of Normal Retirement were used in accordance with the following tables. 4.0%per year,limited to average annual increase over most recent ten years (1.4%)but not less than 0.0% for Police Officers. No increase in covered payroll is assumed for General Employees including AMSC. Rates of Early Retirement for Police Officers were used in accordance with the following table. Rates are 25% for Tier 2 members for each year upon meeting 33 years of service until 100% at age 67. Includes Early Retirement. Rates are 25% below the age of 62 and 35% between the ages of 62 and 66 upon meeting 33 years of service until 100% at age 67. General Employees who retire prior to age sixty (60)but after attainment of ten (10)years of Credited Service (55 &10)are assumed to receive an actuarially reduced benefit payable immediately upon retirement. Future cost of living increases for General Employees (other than Tier 2 General Employees and AMSC)and Police Officers are assumed to be 3.0% per annum. The method used for determining the smoothed value of assets phases in the deviation between the expected and actual return on assets at the rate of 20%per year.The smoothed value of assets will be further adjusted to the extent necessary to fall within the corridor whose lower limit is 80%of the fair market value of Plan assets and whose upper limit is 120% of the fair market value of Plan assets. 140 South Miami Pension Plan 16 L.Cost Methods Normal Retirement, Termination, Disability and Pre-Retirement Death Benefit: Entry-Age-Actuarial Cost Method M.Changes Since Previous Actuarial Valuation None. Under this method the normal cost for each active employee is the amount which is calculated to be a level percentage of pay that would be required annually from his date of hire to his retirement age to fund his estimated benefits, assuming the Plan had always been in effect.The normal cost for the Plan is the sum of the individual normal costs for all active employees.The actuarial accrued liability as of any valuation date for each active employee or inactive employee who is eligible to receive benefits under the Plan is the excess of the actuarial present value of estimated future benefits over the actuarial present value of current and future normal costs.The unfunded actuarial accrued liability as of any valuation date is the excess of the actuarial accrued liability over the smoothed value of assets of the Plan. 141 South Miami Pension Plan 17 GLOSSARY Actuarial Accrued Liability.The difference between the Actuarial Present Value of Future Benefits, and the Actuarial Present Value of Future Normal Costs. Actuarial Assumptions.Assumptions about future plan experience that affect costs or liabilities,such as: mortality, withdrawal,disablement, and retirement;future increases in salary;future rates of investment earnings; future investment and administrative expenses;characteristics of members not specified in the data,such as marital status;characteristics of future members;future elections made by members and other items. Actuarial Cost Method.Actuarial Cost Method A procedure for allocating the Actuarial Present Value of Future Benefits between the Actuarial Present Value of Future Normal Costs and the Actuarial Accrued Liability. Actuarial Equivalent.Of equal Actuarial Present Value,determined as of a given date and based on a given set of Actuarial Assumptions. Actuarial Present Value of Future Benefits.The Actuarial Present Value of amounts which are expected to be paid at various future times to active members,retired members,beneficiaries receiving benefits and inactive,non-retired members entitled to either a refund or a future retirement benefit. Expressed another way,it is the value that would have to be invested on the valuation date so that the amount invested plus investment earnings would provide sufficient assets to pay all projected benefits and expenses when due. Actuarial Valuation.The determination,as of a valuation date,of the Normal Cost,Actuarial Accrued Liability, Actuarial Value of Assets,and related Actuarial Present Values for a plan.An Actuarial Valuation for a governmental retirement system typically also includes calculations of items needed for compliance with GASB No. 67. Actuarial Value of Assets.The value of the assets as of a given date, used by the actuary for valuation purposes. This may be the market or fair value of plan assets or a smoothed value in order to reduce the year-to-year volatility of calculated results,such as the funded ratio and the actuarially required contribution. Amortization Method . A method for determining the Amortization Payment.The most common methods used are level dollar and level percentage of payroll.Under the Level Dollar method, the Amortization Payment is one of a stream of payments,all equal,whose Actuarial Present Value is equal to the UAAL.Under the Level Percentage of Pay method, the Amortization Payment is one of a stream of increasing payments,whose Actuarial Present Value is equal to the UAAL.Under the Level Percentage of Pay method, the stream of payments increases at the rate at which total covered payroll of all active members is assumed to increase. 142 South Miami Pension Plan 18 Amortization Payment.That portion of the plan contribution which is designed to pay interest on and to amortize the Unfunded Actuarial Accrued Liability. Amortization Period. The period used in calculating the Amortization Payment. Annual Required Contribution.The employer’s periodic required contributions,expressed as a dollar amount or a percentage of covered plan compensation. The annual required contribution consists of the Employer Normal Cost and Amortization Payment plus interest adjustment. Closed Amortization Period.A specific number of years that is reduced by one each year,and declines to zero with the passage of time.For example if the amortization period is initially set at 30 years, it is 29 years at the end of one year, 28 years at the end of two years, etc. Employer Normal Cost. The portion of the Normal Cost to be paid by the employer. This is equal to the Normal Cost less expected member contributions. Equivalent Single Amortization Period.For plans that do not establish separate amortization bases (separate components of the UAAL),this is the same as the Amortization Period.For plans that do establish separate amortization bases,this is the period over which the UAAL would be amortized if all amortization bases were combined upon the current UAAL payment. Experience Gain/Loss.A measure of the difference between actual experience and that expected based upon a set of Actuarial Assumptions, during the period between two actuarial valuations.To the extent that actual experience differs from that assumed, Unfunded Actuarial Accrued Liabilities emerge which may be larger or smaller than projected.Gains are due to favorable experience,e.g.,the assets earn more than projected,salaries do not increase as fast as assumed,members retire later than assumed,etc.Favorable experience means actual results produce actuarial liabilities not as large as projected by the actuarial assumptions.Losses are the result of unfavorable experience,i.e.,actual results that produce Unfunded Actuarial Accrued Liabilities which are larger than projected. Funded Ratio. The ratio of the Actuarial Value of Assets to the Actuarial Accrued Liability. GASB. Governmental Accounting Standards Board. 143 South Miami Pension Plan 19 GASB No.67 and GASB No.68.These are the governmental accounting standards that set the accounting rules for public retirement plans and the employers that sponsor or contribute to them.Statement No.67 sets the accounting rules for the plans themselves,while Statement No. 68 sets the accounting rules for the employers that sponsor or contribute to public retirement plans. Normal Cost .The annual cost assigned, under the Actuarial Cost Method,to the current plan year. Open Amortization Period.An open amortization period is one which is used to determine the Amortization Payment but which does not change over time.In other words,if the initial period is set as 30 years,the same 30-year period is used in determining the Amortization Period each year.In theory,if an Open Amortization Period is used to amortize the Unfunded Actuarial Accrued Liability,the UAAL will never completely disappear, but will become smaller each year, either as a dollar amount or in relation to covered payroll. Unfunded Actuarial Accrued Liability.The difference between the Actuarial Accrued Liability and Actuarial Value of Assets. Valuation Date.The date as of which the Actuarial Present Value of Future Benefits are determined. The benefits expected to be paid in the future are discounted to this date. 144  dŚĞŶŽƚĞƐƚŽƚŚĞďĂƐŝĐĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĂƌĞĂŶŝŶƚĞŐƌĂůƉĂƌƚŽĨƚŚĞƐĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͘  ϭϳ ŝƚLJŽĨ^ŽƵƚŚDŝĂŵŝ͕&ůŽƌŝĚĂ ĂůĂŶĐĞ^ŚĞĞƚ 'ŽǀĞƌŶŵĞŶƚĂů&ƵŶĚƐ ^ĞƉƚĞŵďĞƌϯϬ͕ϮϬϭϴ KƚŚĞƌ ^ƚŽƌŵǁĂƚĞƌ ĂƉŝƚĂů EŽŶŵĂũŽƌ dŽƚĂů 'ĞŶĞƌĂů ƌĂŝŶ /ŵƉƌŽǀĞŵĞŶƚƐ 'ŽǀĞƌŶŵĞŶƚĂů 'ŽǀĞƌŶŵĞŶƚĂů &ƵŶĚ dƌƵƐƚ&ƵŶĚ WƌŽŐƌĂŵ&ƵŶĚ &ƵŶĚƐ &ƵŶĚƐ ƐƐĞƚƐ͗ ĂƐŚĂŶĚĐĂƐŚĞƋƵŝǀĂůĞŶƚƐ Ψ ϭϲ͕ϬϮϰ͕ϴϯϭ Ψ ϲϲϴ͕ϴϭϰΨ ͲΨ ϯ͕ϳϲϳ͕ϲϮϯ Ψ ϮϬ͕ϰϲϭ͕Ϯϲϴ ZĞĐĞŝǀĂďůĞƐ ϱϳϲ͕Ϯϵϵ ϵϴ͕ϬϮϲ Ϯ͕ϮϬϬ ϭϴϰ͕ϴϭϲ ϴϲϭ͕ϯϰϭ ƵĞĨƌŽŵŽƚŚĞƌĨƵŶĚƐ Ͳ Ͳ Ϯ͕ϳϯϱ͕ϯϱϬ Ϯ͕ϰϱϱ͕ϲϱϵ ϱ͕ϭϵϭ͕ϬϬϵ WƌĞƉĂŝĚĞdžƉĞŶĚŝƚƵƌĞƐ Ϯϳϳ͕ϯϬϱ Ͳ Ͳ ϳϮ͕ϵϴϱ ϯϱϬ͕ϮϵϬ dŽƚĂůĂƐƐĞƚƐ Ψ ϭϲ͕ϴϳϴ͕ϰϯϱ Ψ ϳϲϲ͕ϴϰϬΨ Ϯ͕ϳϯϳ͕ϱϱϬ Ψ ϲ͕ϰϴϭ͕Ϭϴϯ Ψ Ϯϲ͕ϴϲϯ͕ϵϬϴ >ŝĂďŝůŝƚŝĞƐĂŶĚ&ƵŶĚĂůĂŶĐĞƐ͗ >ŝĂďŝůŝƚŝĞƐ͗ ĐĐŽƵŶƚƐƉĂLJĂďůĞ Ψ ϰϵϲ͕ϰϲϰ Ψ ϭϳ͕ϯϲϵ Ψ ϰϰϲ͕ϳϳϯΨ ϯϯ͕Ϭϯϯ Ψ ϵϵϯ͕ϲϯϵ ĐĐƌƵĞĚůŝĂďŝůŝƚŝĞƐ ϭϴϭ͕Ϯϰϵ ϮϱϮͲ Ͳϭϴϭ͕ϱϬϭ ƵĞƚŽŽƚŚĞƌĨƵŶĚƐ ϰ͕Ϯϲϯ͕Ϯϱϲ ϱϬϲ͕ϲϯϲͲϰϮϭ͕ϭϭϳ ϱ͕ϭϵϭ͕ϬϬϵ hŶĞĂƌŶĞĚƌĞǀĞŶƵĞ ϰϭϴ͕ϲϰϵͲ Ͳϲ͕ϰϬϴ ϰϮϱ͕Ϭϱϳ KƚŚĞƌůŝĂďŝůŝƚŝĞƐ ϳϰϳ͕ϱϮϲͲ Ͳϱ͕ϳϳϲ ϳϱϯ͕ϯϬϮ dŽƚĂůůŝĂďŝůŝƚŝĞƐ ϲ͕ϭϬϳ͕ϭϰϰ ϱϮϰ͕Ϯϱϳ ϰϰϲ͕ϳϳϯ ϰϲϲ͕ϯϯϰ ϳ͕ϱϰϰ͕ϱϬϴ &ƵŶĚďĂůĂŶĐĞƐ͗ EŽŶƐƉĞŶĚĂďůĞ͗ WƌĞƉĂŝĚĞdžƉĞŶĚŝƚƵƌĞƐ Ϯϳϳ͕ϯϬϱ Ͳ Ͳ ϳϮ͕ϵϴϱ ϯϱϬ͕ϮϵϬ ZĞƐƚƌŝĐƚĞĚĨŽƌ͗ ŽŵŵƵŶŝƚLJƐĞƌǀŝĐĞƐ Ͳ Ͳ Ͳ ϭ͕ϴϳϭ͕Ϯϭϯ ϭ͕ϴϳϭ͕Ϯϭϯ WĂƌŬŝŵƉƌŽǀĞŵĞŶƚƐ Ͳ Ͳ Ͳ Ϯϭϯ͕ϭϱϮ Ϯϭϯ͕ϭϱϮ 'ƌĂŶƚƉƌŽũĞĐƚƐ Ͳ Ͳ Ͳ ϲϰϬ͕ϮϮϳ ϲϰϬ͕ϮϮϳ ^ƚŽƌŵǁĂƚĞƌŵĂŶĂŐĞŵĞŶƚ Ͳ ϮϰϮ͕ϱϴϯͲ Ͳ ϮϰϮ͕ϱϴϯ dƌĂŶƐƉŽƌƚĂƚŝŽŶƉƌŽũĞĐƚƐ Ͳ Ͳ Ͳ ϭ͕ϱϴϱ͕ϲϲϴ ϭ͕ϱϴϱ͕ϲϲϴ >ĂǁĞŶĨŽƌĐĞŵĞŶƚ Ͳ Ͳ Ͳ ϭ͕ϲϮϭ͕ϮϱϬ ϭ͕ϲϮϭ͕ϮϱϬ ŽŵŵŝƚƚĞĚƚŽ͗ ŵĞƌŐĞŶĐLJĂŶĚĚŝƐĂƐƚĞƌ ƌĞĐŽǀĞƌLJŽƉĞƌĂƚŝŶŐƌĞƐĞƌǀĞ ϯ͕ϰϲϭ͕ϵϬϱ Ͳ Ͳ Ͳ ϯ͕ϰϲϭ͕ϵϬϱ ZĞǀĞŶƵĞƐƚĂďŝůŝnjĂƚŝŽŶ ϲϬ͕ϬϬϬ Ͳ Ͳ Ͳ ϲϬ͕ϬϬϬ 'ƌĂŶƚŵĂƚĐŚ ϲϬ͕ϬϬϬ Ͳ Ͳ Ͳ ϲϬ͕ϬϬϬ /ŶƐƵƌĂŶĐĞ ϲϬ͕ϬϬϬ Ͳ Ͳ Ͳ ϲϬ͕ϬϬϬ dĂdžĞƋƵĂůŝnjĂƚŝŽŶ ϲϬ͕ϬϬϬ Ͳ Ͳ Ͳ ϲϬ͕ϬϬϬ ƵŝůĚŝŶŐĐĂƉŝƚĂů ϲϬ͕ϬϬϬ Ͳ Ͳ Ͳ ϲϬ͕ϬϬϬ ŝƚLJƉĂƌŬƐĐĂƉŝƚĂů ϯϭϬ͕ϬϬϬ Ͳ Ͳ Ͳ ϯϭϬ͕ϬϬϬ dƌĞĞƉƌŽũĞĐƚƐ Ͳ Ͳ Ͳ ϰϬ͕ϲϴϱ ϰϬ͕ϲϴϱ WĂƌŬŝŶŐŵĂŶĂŐĞŵĞŶƚ Ͳ Ͳ Ͳ ϯϲ͕ϯϭϯ ϯϲ͕ϯϭϯ ƐƐŝŐŶĞĚƚŽ͗ ĂƉŝƚĂůƉƌŽũĞĐƚƐ Ͳ Ͳ Ϯ͕ϮϵϬ͕ϳϳϳ Ͳ Ϯ͕ϮϵϬ͕ϳϳϳ ^ƵďƐĞƋƵĞŶƚLJĞĂƌΖƐďƵĚŐĞƚ ϭ͕ϴϳϭ͕Ϯϲϱ Ͳ Ͳ Ͳ ϭ͕ϴϳϭ͕Ϯϲϱ hŶĂƐƐŝŐŶĞĚ;ĚĞĨŝĐŝƚͿ ϰ͕ϱϱϬ͕ϴϭϲ Ͳ Ͳ;ϲϲ͕ϳϰϰͿ ϰ͕ϰϴϰ͕ϬϳϮ dŽƚĂůĨƵŶĚďĂůĂŶĐĞƐ ϭϬ͕ϳϳϭ͕Ϯϵϭ ϮϰϮ͕ϱϴϯ Ϯ͕ϮϵϬ͕ϳϳϳ ϲ͕Ϭϭϰ͕ϳϰϵ ϭϵ͕ϯϭϵ͕ϰϬϬ dŽƚĂůůŝĂďŝůŝƚŝĞƐĂŶĚ ĨƵŶĚďĂůĂŶĐĞƐ Ψ ϭϲ͕ϴϳϴ͕ϰϯϱ Ψ ϳϲϲ͕ϴϰϬΨ Ϯ͕ϳϯϳ͕ϱϱϬ Ψ ϲ͕ϰϴϭ͕Ϭϴϯ Ψ Ϯϲ͕ϴϲϯ͕ϵϬϴ DĂũŽƌ&ƵŶĚƐ 145 MIAMI DAILY BUSINESS REVIEW Publ ished Dai ly except Saturday, Sunday and Legal Hol idays Miami, Miam i-Dade County, Florida STATE OF FLORIDA COUNTY OF MIAMI-DADE: Before the undersigned authority GUILLERMO GARCIA who 0 personally appeared DIRECTOR OF OPE~ATIONS n oath says that he or she is the Business Review f/k/a ' Legal Nollces of the Miami Dally S Miami Review, a daily ( aturday , Sunday and Le . except published at Miami in Miami_Dad~al C HOlidayS). newspaper, attached copy of advert. . ounty , Florida ; that the f N . . Isement , being a Legal Advertisement o otlce In the matter of CITY OF SOUTH MIAMI -PUBLIC HEARINGS -JAN. 7 , 2020 in the XXXX Court, was published in said newspaper in the issues of 12/27/2019 Affiant further says that the said Miami Dail . Review is a newspaper published at M. .. . y BUSiness County , Florida and that th . laml , In said Miami-Dade e said newspaper h h been continuously publish d. . .. as eretofore e In said Miami -Dade C . each day (except Saturd S ounty , FlOrida has been entered as ay , d unday and Lega l Holidays) and secon class mail tt office in Miami in said Miami-Dade Coun ma er at the post of one year next preceding th fi ty , FlOrida , for a period e Irst publication of th tt copy of advertisement; and affiant furth e a ached has neither paid nor pr . d er says that he or she any discount rebate omlse . any person , firm or corporation , , commission or refund f th securing this advertis t or e purpose of ~~,f,~~' Mi' 27 day ECEMB , A.D . 2019 GUILLERMO GARCIA personally known to me "';~;"~~~~'" BARBARA THOMAS ~". • "r' f*( ~ :*1 Coml'lIissiOIl# GG 121171 ~~~.W I:xpiFes November 2 2021 ~~, 0,. f'~O .... " B I ."....... ended Thru Troy Fain Insurance 800·385-7019 CITY OF SOUTH MIAMI NOTICE OF PUBLIC HEARINGS NOTICE IS HEREBY given that the City Commission of the City of South Miami , Florida will conduct Public Hearing(s) at its regular City Commission meeting scheduled for Tuesday, January 7 , 2020 , beginning at 7:00 p.m .• in the City Commission Chambers, 6130 Sunset Drive, to consider the following item(s): An Ordinance relating to the amendment of the City's 2019-2020 fiscal year budget and in creasing the appropriation amount for the General Fund and allocating such increase to the Non-Departmental, line item 001-2100-519-9924 . ALL interested parties are invited to attend and will be heard. Fo r further information, please contact the City Clerk's Office at: 305- 663-6340. Nkenga A. Payne , CMC City Clerk Pursuant to Florida Statutes 286.0105, the City hereby advises the public that if a person decides to appeal any decision made by this Board, Agency or Commission with respect to any matter considered at its meeting or hearing , he or she will need a record of the proceedings, and that for such purpose, affected person may need to ensure that a verbatim record of the proceedings is· made which record includes the testimony and evidence upon which the appeal is to be based . 12/27 19-123/0000446911M 146 20A SUNDAY DECEMBER 29 2019Local & State MIAMIHERALD.COM H1 CITY OF SOUTH MIAMI NOTICE OF PUBLIC HEARINGS NOTICE IS HEREBY given that the City Commission of the City of South Miami, Florida will conduct Public Hearing(s) at its regular City Commission meeting scheduled for Tuesday, January 7, 2020, beginning at 7:00 p.m., in the City Commission Chambers, 6130 Sunset Drive, to consider the following item(s): An Ordinance relating to the amendment of the City’s 2019-2020 fiscal year budget and increasing the appropriation amount for the General Fund and allocating such increase to the Non-Departmental, line item 001-2100-519-9924. ALL interested parties are invited to attend and will be heard. For further information, please contact the City Clerk’s Office at: 305-663-6340. Nkenga A. Payne, CMC City Clerk Pursuant to Florida Statutes 286.0105, the City hereby advises the public that if a person decides to appeal any decision made by this Board, Agency or Commission with respect to any matter considered at its meeting or hearing, he or she will need a record of the proceedings, and that for such purpose, affected person may need to ensure that a verbatim record of the proceedings is made which record includes the testimony and evidence upon which the appeal is to be based. melon, watermelon rind pickles, grapefruit and to- matoes was not as special as its $24 price. The menu is most like that of an American steakhouse that serves sushi and offers small portions of beef, del- icately prepared. What’s most surprising about Takumi Tei is how removed it feels from the surrounding theme park. Each of its five dining areas has decor themed to an element — water, earth, wood, stone and paper — that suggests tranquility, a contrast with what’s hap- pening outside. From the unrushed service to the minimalist art to the nap- kins folded, origami style, to represent kimonos, the ambiance is rooted in Japa- nese culture, Disney-style. A Jaleo by José Andrés at Disney Springs:Jaleo opened on Disney Springs’ West Side in March with a menu featuring the tradi- tional dishes of Spain, José Andrés’ birthplace: paella, From the parks to the hotels to CityWalk and Disney Springs, Orlando’s theme park resorts got a notable number of new table-service restaurants in the last year. Also, two others originally scheduled for 2019 got bumped into early 2020, including the space-themed restaurant at Epcot we’ve been waiting for. Here’s a rundown: DISNEY WORLD A Takumi Tei at Epcot: If the opening of Tiffins at Animal Kingdom three years ago didn’t convince you that some restaurants in the parks were going upscale at Disney World, Takumi Tei leaves no doubt. Most of Disney World’s high-end “signa- ture” restaurants are in hotels and at Disney Springs, but with in-park spending growing steadily, pricey restaurants are also being opened in the parks. At dinner-only Takumi Tei, which opened in the Japan Pavilion in July, tradi- tional main courses range from $42 (salmon) to $120 (wagyu tenderloin), but the menu also offers sashimi and nigiri entrees ($21-$40) and an omakase (tasting) menu for $150. Like Tiffins, Takumi Tei features gourmet dining at a level more or less com- mensurate with the prices. The marinated duck ($46) was some of the best duck I’ve ever tasted, but the salad of compressed water- garlic shrimp, pan con to- mate, Spanish hams and a variety of tapas, or small plates. It is the fifth Jaleo in the U.S. Jaleo is a good choice when your dining group includes hearty eaters and people with bird-like appe- tites. The latter could order a bowl of gazpacho, a chill- ed tomato-based soup ($11), or nibble off a few shared tapas (most are $5-$20, but some seafood dishes or ham from free-range, acorn-fed Ibérico pigs cost more). The former could dine on one of two pork dishes from the fire pit, intended for two or more ($40 and $74), or one of two paellas offered each night from a rotating menu of five paellas ($25-$38). And the diner who is really hungry could try Jaleo’s version of a tasting menu ($70 and $120). For lunch, we ordered thinly sliced ham, carved tableside; gazpacho spiked with sherry; a tapa-size plate of garlic shrimp; sau- téed spinach with pine nuts, raisins and apples; a gooey pressed sandwich of Span- ish ham and Manchego cheese; and a Basque-style cheesecake made with goat cheese. We didn’t leave much on our plates. The name Jaleo means revelry, and the restaurant reflects that with dramatic decor. The outside was inspired by artichokes. The interior has bold chande- liers, big splashes of red and yellow, a dining table made of a glass-covered foosball table, and two enormous photographic murals, one of the back of a matador, the other of a beach town in Spain. Adjoining Jaleo is Pepe by José Andrés, a permanent representation of the chef’s Spanish food truck, which offers hot and cold sand- wiches, salads, desserts and other grab-and-go items. A Wolfgang Puck Bar & Grill at Disney Springs: Wolfgang Puck, the Aus- trian-born California chef, has long had a presence at Disney Springs with a cou- ple of “express” counter- service eateries and the Wolfgang Puck Grand Cafe and Dining Room, which closed in 2017 (and now houses Jaleo). A Wolfgang Puck Express remains in the Marketplace area. The new bar and grill in the Town Center section of Disney Springs offers a few features from the restau- rants that made him a ce- lebrity chef in Southern California, including an open kitchen with a wood- burning grill, smoked salm- on pizza and Weinerschnit- zel. In fact, Disney World said in a press release, the new restaurant would cap- ture “the essence of the laid-back Californian dining experience, made popular by Puck himself.” It also captures the es- sence of Southern Cali- fornia prices. The dinner menu offers nine entrees — beef, chicken, pork and several kinds of fish — at prices from $24 (meatloaf) to $59 (filet mignon); pastas are $24-$26; and a pizza that serves one or two peo- ple $18 to $31. The restau- rant also serves lunch. The restaurant, built to resemble a modernized barn, has high ceilings, big windows that let in plenty of light, oversized wood beams and a touch of in- dustrial chic. A big copper pizza oven dominates one end of the room. Outside is a walk-up gelato bar. The ambiance is pleasingly comfortable and casual hip. I stopped by for a late- afternoon meal one un- reasonably warm afternoon this summer and seated myself at the bar, where I got attentive service and baseball on the big-screen TVs. But the heat had killed my appetite for a full meal, so I had a Caesar salad ($14) and a small order of crab cakes ($19) from the appetizer menu. Both were good. But I plan to return when the weather is pleas- ant and eat one of those famous pizzas. A Toledo at Disney’s Coronado Springs Resort: Coronado Springs isn’t new, but its Gran Destino tower is, and this Spanish- themed restaurant is at the top of it. I ate here the day before I ate at Jaleo. The back-to-back Spanish meals reminded me that just as southern cooking and southwestern cooking are different yet classic Amer- ican cuisines, so Spain has more than one style of food. Toledo offers tapas — tiny pintxos at $3; small plates, meat and cheese boards and salads $10-18 — but there is little overlap with Jaleo’s. The selection of entrees is larger and a little more Americanized, from $28 (chicken braised in red wine) to $36 (Man- hattan filet) plus rib-eye for two at $89. We had the scallops ($32) and the filet and both were well-pre- pared. I appreciated the prices — the hotel is ranked as moderate and the new restaurant fits — and en- joyed the meal, but we wouldn’t choose it for a special occasion. Inspired by the Toledo of the 1920s and ‘30s, the restaurant features a strik- ing architectural design: its high vaulted ceilings with glass panels and lighting that changes colors behind them. Olive trees grow in planters. The 16th floor location provides a view of several parks’ fireworks shows — if you’ve got a seat near the floor-to-ceiling windows. A Topolino’s Terrace at Disney’s Riviera Resort: This one wasn’t open yet when I last visited Orlando —it opened two weeks later, in mid-December — so I can’t pass on any im- pressions, but here are the MARJIE LAMBERT/MLAMBERT@MIAMIHERALD.COM A salad of compressed watermelon, grapefruit, tomato and watermelon pickles is served at Takumi Tei in the Japan Pavilion at Epcot. New restaurants at Disney World, Universal Orlando BY MARJIE LAMBERT mlambert@miamiherald.com THEME PARKS REY LOPEZ/DISNEY PARKS Jaleo has a rotating menu of five varieties of paella, at least two of which are available each day, cooked over a wood-fired paella pit. MARJIE LAMBERT/MLAMBERT@MIAMIHERALD.COM The copper covered pizza oven at Wolfgang Puck Bar & Grill at Disney Springs. STEVEN DIAZ/DISNEY PARKS A chef prepares dishes in the onstage tapas kitchen in Tolédo, a Spanish-themed restaurant in Gran Destino tower at Disney’s Coronado Springs Resort. 147