Loading...
4675 Amending the Firefighter's Pension PlanOrdinance No. 4675 An Ordinance of the City of Sanford, Florida, Section 66-71 of the Code of Ordinances of the City of Sanford relating to definitions used in the context of the Firefighters' Retirement System; providing for legislative findings and intent; providing for conflicts; providing for a savings provision; providing for codification; providing for severability and providing for an effective date. Whereas, the City of Sanford has elected to increase the minimum and maximum pay grades for its employees and implement additional pensionable certification incentive pay applicable to certain non -bargaining unit firefighters; and Whereas, such additional certification incentive pay aligns with the City's goal to increase the level of education of its employees, enhancing employee retention, remaining competitive with other agencies, improving its service levels, as well as the safety of City residents; and Whereas, amendments to the Firefighters' Retirement System are necessary to provide such additional benefits for its eligible members; and Whereas, the Trustees of the City's Firefighters' Retirement System have requested and approved the amendments provided herein as being in the best interests of the participants and beneficiaries as well as improving the administration of the Firefighters' Retirement System; and Whereas, the City Commission has received and reviewed an actuarial impact statement related to this change and attached as such; and Whereas, the City Commission deems it to be in the public interest to provide this change to the Firefighters' Retirement System as set forth in this Ordinance. Be it Enacted by the People of the City of Sanford, Florida: I- I P a g �,, Section 1. Legislative findings and intent. (a) The City Commission of the City of Sanford hereby adopts and incorporates into this Ordinance the City staff report and City Commission agenda memorandum relating to this ordinance. (b) The City of Sanford has complied with all requirements and procedures of Florida law in processing and advertising this Ordinance. Section 2. Firefighters' Retirement System. Chapter 66, Article III, Section 66-71, Definitions, of the Code of Ordinances of the City of Sanford, is hereby amended to read as follows (underlined text is new language): Sec. 66-71. - Definitions. (1) As used herein, unless otherwise defined or required by the context, the following words and phrases shall have the meaning indicated: Base pay means the pay for the grade and step in the salary classification pay plan in the City for the given fiscal year, including all tax deferred, tax sheltered or tax exempt items of income derived from elective employee payroll deductions or salary reductions and otherwise includible in base pay. Base pay shall also include "education incentive", "engineer incentive", as well as "paramedic incentive" paid to firefighters who are certified as paramedics and specialty pay. Base pay shall also include additional certification incentive pay applicable to certain designated emploVees of the Fire Department. Firefighter emploVees who have attained the rank of Fire Chief, Deputy Fire Chief, Fire Marshall, Battalion Chief or Fire Inspector shall be eligible to receive incentive pay from the following applicable categories concurrently; provided, however, that, such members are only eligible to receive the highest incentive pay applicable to each category. Categories of incentive pay for Deputy Chief and Battalion Chief positions include: Fire Officer (11, 111, or IV); Fire Service Instructor (1, 11, or 111); Incident Safety Officer; and Health and Safety Officer. Categories of incentive paV for Fire Marshal and Fire Inspecto ;2- 1 P a , y e positions include: Fire Safety Inspector (11 or 111), Fire Officer (1, 11, 111 or IV); Fire Code Administrator; and Fire and Life Safety Educator. Compensation in excess of the limitations set forth in Section 401 (a)(1 7) of the Code as of the first day of the plan year shall be disregarded for any purpose, including employee contributions or any benefit calculations. The annual compensation of each member taken into account in determining benefits or employee contributions for any plan year beginning on or after January 1, 2002, may not exceed $200,000.00, as adjusted for cost -of -living increases in accordance with Code Section 401 (a)(1 7)(B). Compensation means compensation during the fiscal year. The cost -of -living adjustment in effect for a calendar year applies to annual compensation for the determination period that begins with or within such calendar year. If the determination period consists of fewer than 12 months, the annual compensation limit is an amount equal to the otherwise applicable annual compensation limit multiplied by a fraction, the numerator of which is the number of months in the short determination period, and the denominator of which is 12. If the compensation for any prior determination period is taken into account in determining a member's contributions or benefits for the current plan year, the compensation for such prior determination period is subject to the applicable annual compensation limit in effect for that prior period. The limitation on compensation for an "eligible employee" shall not be less than the amount which was allowed to be taken into account hereunder as in effect on July 1, 1993. "Eligible employee" is an individual who was a member before the first plan year beginning after December 31, 1995. Section 3. Savings. The prior actions of the City of Sanford relating to the administration of the Firefighters' Retirement System and related matters are hereby ratified and affirmed. Section 4. Implementing Administrative Actions. The City Manager, or designee, is hereby authorized to implement the provisions of this Ordinance as deemed appropriate and warranted. Section 5. Severability. If any section, sentence, phrase, word, or portion of this Ordinance proves to be 3 1 Pa, g e2 CITY OF SkNFORD FIRE DEPARTNIENT MEMORANDUM To: Norton N. Bonaparte. Jr.. City Manager FROM: Craig M. Radzak. Fire Chief (Z DATE: August 26. 2021 RE: Incentive Program for Non-union Fire Department Employees Although the City is increasing the rninirnurn and maximum of most City pay grades including the non-union Fire Department employees. I am proposing to add additional 'certification incentives applicable to non-union employees of the Fire Department (Deputy Fire Chief. Fire Marshal. Battalion Chiefs. and Fire Inspectors). This will allow these positions additional pay opportunities. The following incentives align with our Departments and City's goals by increasing the level of education of our employees. enhancing employee retention. remaining competitive xvith other agencies. improving Our service levels. and improvins, the safety of our residents. The affected employee. if eligible. may receive an incentive from each of the below categories (Categories A thrLI D) concurrently. but shall only receive the incentive lor the highest amount applicable for each ofthe below categories. tr Fxamples ® A Battalion Chief who possesses both Category A Fire Officer III and Category B State offlorida Fire Service Instructor III is eligible to receive both the Fire Officer 111 $1.500 incentive and the Florida Fire Sel-ViCC Instructor 111 $2.000 incentive concurrently. * A Battalion Chiefcannot receive Category A Fire Officer 11 and Fire Officer III incentive concurrently. only the highest achieved in Category A. which is the Fire Officer III $1.500 incentive. 0 A Fire Inspector who possess both Category A Fire Safety Inspector III and Category 13 I FloridaState of F 'ire Officer III is eligible to receive both the Fire Safety Inspector III $2.000 incentive and the Fire Officer 111 $1.500 incentive concurrently. ® A Fire Inspector cannot receive Category A State of Florida Fire Safety Inspector 11 and Category A Fire Satcty Inspector III incentive concurrently. only the highest achieved in Category A. the Fire Safety Inspector 111 $2.000 incentive,' The incentive pays) is/are added to the eligible employee's current pay, and shall be counted as compensation for retirement purposes (pensionable). No incentive will be given for the base required certification(s) as defined in the job description(s). The incentive pay will be paid incrementally in twenty sig; (26)-pay periods per fiscal year effective October 1.2021. The current fiscal impact as of the date of this memorandum is $15,500. The highest possible fiscal impact is $60,000 annually. INCENTIVES: I. Deputv Fire Chief and Battalion Chiefs Position Incentives: Categories of Incentives: Annual Amount A. Fire Officer State of Florida Fire Officer II $1.0011 `Mate of Florida Fire Officer 1II $1,500 State of Florida hire Officer IV $2,000 B. Fire Service Instructor State of Florida Fire Service Instructor I $1.000 State of Florida Fire Service Instructor II $1,500 State of Florida Fire Service Instructor III $2.000 C. State of'Florida Incident Safety Officer $1,000 D. State of Florida Ilealth & Safety Officer $ I.000 II. Fire Marshal and Fire Inspector Position Incentives: Categories of Incentives Annual Amount A. Dire Safety Inspector State of Florida Fire Safety Inspector 11 $1.000 State of Florida Fire Safety Inspector III $2,000 B. Fire Officer State of Florida Fire Officer 1 $500 State of Florida Fire Officer 11 SLOW OW State of Florida Fire Officer III $1,50() State of Florida Fire Officer IV $2.000 C. State of Florida Fire Code Administrator $2.000 D. State of Florida Fire & Life Safety hducator $1.000 Approved: ' Norton N. Bonaparte. CC: CindY[i uauccDiccct0r Fred [ossno'Director ofHuman Resources/Risk Management Tom George. Deputy City, Manuer FOSTER & FOSTER ACTUARIES AND CONSULTANT S February 2, 2022 VIA EMAIL Ms. Susy Pita, Plan Administrator 22233 Drawbridge Dr. Leesburg, FL 34748 Re: City of Sanford Firefighters' Retirement System Actuarial Impact Statement Dear Susy: Enclosed is the following material which has been prepared in support of the proposed benefit changes: 1.) The required Actuarial Impact Statement which outlines the impact associated with implementing the changes. 2.) Draft of transmittal letters to the Bureau of Local Retirement Systems and the Bureau of Firefighters Retirement Trust Funds. It is necessary that You forward signed copies of this impact statement and proposed ordinance to the bureaus between first and second readings of the proposed benefit change. If you have any questions, please let me know. Sincerely, Patrick T. Donlan, ASA, MAAA PTD/mw Enclosures 13420 Parker Commons Blvd., Suite 104 Fort Iviyers, FL 33912 - (239) 433-5500 - Fax (239) 481-0634 - www.foster-foster.coni Mr. Keith Brinkman Bureau of Program Services Division of Retirement P. O. Box 9000 Tallahassee, FL 32315-9000 Re: City of Sanford Firefighters' Retirement System Actuarial Impact Statement Dear Mr. Brinkman: The City of Sanford is considering implementation of benefit changes. The provisions are described in the enclosed material. Pursuant to Section 22d-1.04 of the Agency Rules, we are enclosing the required Actuarial Impact Statement, a copy of the proposed Ordinance, and related material for your review. If you have any questions concerning the enclosed material, please contact us. Mr. Stephen Bardin Police Officers' and Firefighters' Retirement Trust Funds Department of Management Services, Division of Retirement Post Office Box 3010 Tallahassee, FL 32315-3010 Re: Actuarial Impact Statement Dear Mr. Bardin: The City of Sanford is considering the implementation of amended retirement benefits for its Firefighters. The changes are described in the enclosed material. Pursuant to the provisions of Chapter 175, we are enclosing the required Actuarial Impact Statement and a copy of the proposed Ordinance for your review. If you have any questions or if additional information is needed, please contact us. Sincerely, CITY OF SANFORD FIREFIGHTERS' RETIREMENT SYSTEM ACTUARIAL IMPACT STATEMENT February 2, 2022 (Page 1) Attached hereto is a comparison of the impact on the Total Required Contribution (per Chapter 112, Florida Statutes) resulting from the implementation of the following Plan amendment: Base pay shall include additional certification incentive pay applicable to certain designated employees of the City's Fire Department. Firefighter employees who have made the rank of Deputy Fire Chief, Fire Marshall, Battalion Chiefs, and Fire Inspectors shall be eligible to receive incentive pay from the following applicable categories concurrently, however, such members are only eligible to receive the highest incentive pay applicable to each category. Categories of incentive pay for Deputy Chief and Battalion Chief positions include: Fire Officer (11, 111, or IV); Fire Service Instructor (1, 11, or 111); Incident Safety Officer; and Health and Safety Officer. Categories of Incentive pay for Fire Marshal and Fire Inspector positions include: Fire Safety Inspector (11 or 111); Fire Officer (1, 11, 111 or IV); Fire Code Administrator; and Fire and Life Safety Educator. To value for this change, we received the current incentives for each current Firefighter and used that for our assumption going forward. The cost impact, determined as of October 1, 2021 (as applicable for the fiscal year ending September 30, 2023), is as follows: Proposed Current Total Required Contribution $1,283,274 $1,265,224 Expected Member Cont. 258,551 257,031 Equals Required City & State 1,024,723 1,008,193 Estimated State Contribution 168,686 168,686 Balance From City $856,037 $839,507 I Reflects Mutual consent. The City may use State Monies up to $168,686 per year, if received, to offset their required contribution. Amounts received in excess of this amount are used to pay off the UAAL. CITY OF SANFORD FIREFIGHTERS' RETIREMENT SYSTEM ACTUARIAL IMPACT STATEMENT February 2, 2022 (Page 2) Unless otherwise noted, all data, assumptions, methods and plan provisions are the same as in the October 1, 2021 actuarial valuation report. It should be noted that changes to retirement benefits could potentially affect participants' retirement or termination behavior. We will monitor and advise of any recommended changes with future experience studies. Future actuarial measurements may differ significantly from the current measurements presented in this report for a variety of reasons including: changes in applicable laws, changes in plan provisions, changes in assumptions, or plan experience differing from expectations. Due to the limited scope of the analysis, we did not perform an analysis of the potential range of such future measurements. Please note that contents of this analysis and the October 1, 2021 actuarial valuation report are considered an integral part of the actuarial opinions. In reviewing the results presented in this study, it should be noted that there are risks that may not be inherently apparent to the reader that should be carefully considered. For key risks, please see the Discussion of Risk section of the October 1, 2021 actuarial valuation report. In performing the analysis, we used third -party software to model (calculate) the underlying liabilities and costs. These results are reviewed in the aggregate and for individual sample lives. The output from the software is either used directly or input into internally developed models to generate the costs. All internally developed models are reviewed as part of the process. As a result of this review, we believe that the models have produced reasonable results. We do not believe there are any material inconsistencies among assumptions or unreasonable output produced due to the aggregation of assumptions. The changes presented herein are in compliance with Part VII, Chapter 112, Florida Statutes and Section 14, Article X of the State Constitution. The undersigned is familiar with the immediate and long-term aspects of pension valuations and meets the Qualification Standards of the American Academy of Actuaries necessary to render the opinions contained herein. CU^� ^✓ vcy� Patrick T. Donlan, ASA, EA, MAAA Enrolled Actuary #20-6595 STATEMENT OF PLAN ADMINISTRATOR The prepared information presented herein reflects the estimated cost of each proposed improvement. Board of Trustees COMPARATIVE SUMMARY OF PRINCIPAL VALUATION RESULTS B. Assets Actuarial Value (AVA) 41,591,924 41,591,924 Market Value (MVA)' 47,505,890 47,505,890 C. Liabilities Present Value of Benefits New Benefits Old Benefits Actives 10/1/2021 10/1/2021 A. Participant Data 23,862,558 23,720,122 Actives 53 53 Service Retirees 35 35 DROP Retirees 1,056,472 1,055,807 Beneficiaries 10 10 Disability Retirees 5 5 Terminated Vested 6 6 Total 112 112 Total Annual Payroll $3,715,379 $3,690,179 Payroll Under Assumed Ret. Age 3,394,333 3,374,383 Annual Rate of Payments to: 0 0 Service Retirees 1,351,456 1,351,456 DROP Retirees 184,387 184,387 Beneficiaries 181,725 181,725 Disability Retirees 146,337 146,337 Terminated Vested 66,936 66,936 B. Assets Actuarial Value (AVA) 41,591,924 41,591,924 Market Value (MVA)' 47,505,890 47,505,890 C. Liabilities Present Value of Benefits Actives Retirement Benefits 23,862,558 23,720,122 Disability Benefits 791,275 789,017 Death Benefits 107,122 106,840 Vested Benefits 1,056,472 1,055,807 Reftind of Contributions 80,155 80,155 Service Retirees 15,531,561 15,531,561 DROP Retirees 2,827,115 2,827,115 Beneficiaries 1,270,985 1,270,985 Disability Retirees 1,716,264 1,716,264 Terminated Vested 646,436 646,436 Share Plan Balances 0 0 Total 47,889,943 47,744,302 New Benefits Old Benefits C. Liabilities - (Continued) 10/1/2021 10/1/2021 Present Value of Future Salaries 25,355,904 25,279,006 Present Value of Future Member Contributions 1,774,913 1,769,530 Normal Cost (Retirement) 690,373 687,045 Normal Cost (Disability) 61,460 61,400 Normal Cost (Death) 8,877 8,870 Normal Cost (Vesting) 62,883 62,866 Normal Cost (Refunds) 14,084 14,084 Total Normal Cost 837,677 834,265 Present Value of Future Normal Costs 6,143,361 6,128,944 Accrued Liability (Retirement) 18,702,410 18,573,999 Accrued Liability (Disability) 349,539 347,605 Accrued Liability (Death) 42,441 42,199 Accrued Liability (Vesting) 634,888 634,251 Accrued Liability (Refunds) 24,943 24,943 Accrued Liability (Inactives) 21,992,361 21,992,361 Share Plan Balances' 0 0 Total Actuarial Accrued Liability (EAN AL) 41,746,582 41,615,358 Unfimded Actuarial Accrued Liability (UAAL) 154,658 23,434 Funded Ratio (AVA / EAN AL) 99.6% 99.9% D. Actuarial Present Value of New Benefits Old Benefits Accrued Benefits 10/1/2021 10/1/2021 Vested Accrued Benefits Inactives + Share Plan Balances Actives Member Contributions Total Non -vested Accrued Benefits Total Present Value Accrued Benefits (PVAB) Funded Ratio (MVA / PVAB) Increase (Decrease) in Present Value of Accrued Benefits Attributable to: Plan Amendments Benefit Changes Plan Experience Benefits Paid Interest Other Total 21,992,361 11,393,824 2,663,337 36,049,522 11, — 36,666,353 129.6% 35,727 0 0 0 0 21,992,361 11,358,687 36,630,626 129.7% New Benefits Old Benefits Valuation Date 10/1/2021 10/1/2021 Applicable to Fiscal Year Ending 9/' )0/2023 9/30/2023 E. Pension Cost Normal Cost 2 $911,528 $907,816 Administrative Expenses 2 61,887 61,887 Payment Required to Amortize Unfunded Actuarial Accrued Liability over 15 years (as of 10/1 /2021) 2 309,859 295,521 Minimum Required Contribution 1,283,274 1,265,224 Expected Member Contributions 2 258,551 257,031 Expected City and State Contribution 1,024,723 1,008,193 The asset values and liabilities include accumulated DROP and Share Plan Balances as of 9/30/2021. 2 Contributions developed as of 10/1/2021 displayed above have been adjusted to account for assumed salary increase and interest components. ACTUARIAL ASSUMP'T'IONS AND METHODS Mortalfty Rate Healthy Active Lives: Female: PubS.H-2010 (Below Median) for Employees, set forward one year. Male: PubS.H-2010 (Below Median) for Employees, set forward one year. Healthy Retiree Lives: Female: PubS.H-2010 for Healthy Retirees, set forward one year. Male: PubS.H-2010 for Healthy Retirees, set forward one year. Beneficiary Lives: Female: PubG.H-2010 for Healthy Retirees. Male: PubG.H-2010 for Healthy Retirees, set back one year. Disabled Lives: 80% PubG.H-2010 for Disabled Retirees / 20% PubS.H-2010 for Disabled Retirees. All rates are projected generationally with Mortality Improvement Scale MP -2018. We feel this assumption sufficiently accommodates future mortality improvements. The previously described mortality assumption rates were mandated by Chapter 2015-157, Laws of Florida. This law mandates the use of the assumptions used in either of the two most recent valuations of the Florida Retirement System (FRS). The above rates are those outlined in Milliman's July 1, 2019 FRS valuation report for special risk employees, with appropriate adjustments made based on plan demographics. 90% of active deaths are assumed to be service -incurred. Interest Rate 6.60% per year compounded annually, net of investment related expenses. This is supported by the target asset allocation of the trust and the expected long -teen return by asset class. Salary Increases See table later in this section. This assumption was adopted based on the August 2, 2017 actuarial experience study. Payroll Growth 0.00% for purposes of amortizing the Unfunded Actuarial Accrued Liability. This assumption cannot exceed the ten-year average payroll growth, in compliance with Part VII of Chapter 112, Florida Statutes. Administrative Expenses $56,873 annually, based on the average of actual expenses incurred in the prior two fiscal years. Amortization Method New UAAL amortization bases are amortized over 15 Years, Retirement Age (Non -nal and Early) See table later in this section. This is based on the results of an actuarial experience study issued August 2, 2017. Disability Rate See table later in this section; this is based on the results of an actuarial experience Study issued May 4, 2007 and August 2, 2017. 90% of disabilities assumed to be service -incurred. Termination Rate See table later in this section. This assumption was adopted based on the results of the August 2, 2017 actuarial experience study. Funding Method Entry Age Normal Actuarial Cost Method. The minimum required contribution is developed using the following loads: - Interest — A half-year, based on the current 6.60% (previously 7.00%) assumption - Salary — A full -year, based on the current 5.34% assumption Actuarial Asset Method All assets are valued at market value with an adjustment to uniformly spread actuarial investment gains and losses (as measured by actual market value investment return against expected market value investment return) over a five-year period. % Terminating During the Year Service Rate 0-4 7.5% 5-9 5.0% 10+ 2.0% Assumption Tables % Becoming Disabled During the Year Age Rate 20 0.15% 25 0.15% 30 0.20% 35 0.25% 40 0.35% 45 0.50% 50 0.90% 55 1.80% 60 4.50% 65 11.10% Salary Scale Service Rate 0-4 6.5% 5-9 5.5% 10+ 5.0% % Retiring During the Year (10-24 Years of Service) Age Rate 45-54 2% 55+ 100% % Retiring During the Year (>= 25 Years of Service) Age Rate Any 100% SUMMARY OF CURRENT PLAN (Through Ordinance 2021-4590) Effective Date of New Plan January 1, 1984. Latest Amendment February 8, 2021. Eligibility Closed to new Members on October 1, 2017. Credited Service Total years and fractional parts of years of service with the City as a full-time Firefighter excluding service for which Member contributions have been refunded. Earnings Base pay, including Education Incentive, Engineer Incentive, Paramedic Incentive, and Specialty Pay. Average Final Compensation Average of Earnings paid during the 5 best years during the 10 years preceding termination. Normal Retirement Date Earlier of age 55 and the completion of 10 years of Credited Service or completion of 25 years of Credited Service regardless of age. Benefit Amount 3.08% of Average Final Compensation times Credited Service. Form of Benefit 10 Year Certain and Life thereafter (options available). Early Retirement Date Age 45 and 10 years of Credited Service. Benefit Accrued benefit, reduced 3.00% for each year that early retirement precedes normal retirement. Disability Benefit Service Incurred Eligibility Covered from Date of Employment. Benefit Benefit accrued to date but not less than 60% of base pay in effect on date of disability. Non -Service Incurred Eligibility 5 years of Credited Service. Benefit Amount Benefit accrued to date. Duration Benefit commences upon Board approval and is paid for life (with 120 payments guaranteed) or until recovery (as determined by the Board); optional forms available. Death Benefit Pre -Retirement If vested, the value of the accrued benefit is payable on a monthly basis to the beneficiary for 10 years. If not vested, member contributions are refunded. Minimum Monthly Benefit if on Duty Death Greater of the following, payable immediately: (a) Unreduced accrued benefit, or (b) 40% of Average Final Compensation. Post -Retirement According to option selected, if any. Vesting (Termination) Less than 10 years of Credited Service Refund of Member Contributions (including amounts contributed by the City for the member between 10/1/1976 and 6/30/1998). 10 years or more Accrued benefit payable at the Member's election, on his otherwise Early or Normal Retirement Date or Refund of Member Contributions (including amounts contributed by the City for the member between 10/1/1976 and 6/30/1998). Contributions Employee 7.00% of Earnings. Premium Tax 1.85% tax on premiums for fire insurance. City Remaining amount necessary for payment of Non -nal (current year's) Cost and amortization of the accrued past service liability as provided for in Part VII of Chapter 112, Florida Statutes. (Minimum of 10% of base pay of Members.) Board of Trustees (a) Two legal residents appointed by the City Commission, (b) Two Firefighters (selected by a majority of Department Members), (c) Fifth Member elected by the other four Board Members and approved by the Commission. Deferred Retirement Option Plan Eligibility Satisfaction of Normal Retirement requirements, defined as the earlier of the following: (a) Age 55 with 10 years of Credited Service, or (b) 25 years of Credited Service. Participation Not to exceed 60 months. Rate of Return Actual net rate of investment return (total return net of brokerage commissions, management fees and transaction costs) credited each fiscal quarter. Form of Distribution Cash lump sum (options available) at termination of employment. Chapter 175 Share Plan Established and currently not funded. invalid, unlawful or unconstitutional, it shall not be held to impair the validity or effect of any other action or part of this Ordinance. Section 6. Conflicts. All ordinances or parts of ordinances in conflict herewith are hereby repealed. Section 7. Codification. The provisions of Section 2 of this Ordinance shall be codified in the City Code of the City of Sanford. The Code Codifier is granted broad and liberal authority to change section numbers in the current City Code and take other appropriate actions as set forth in Section 1 -10 of the City Code, as well as to correct Scriveners errors that may occur in processing and publication. The remainder of this Ordinance shall not be codified. Attest., Section 8. Effective Date. This Ordinance shall take effect immediately upon passage and adoption. Passed and adopted this 14th day of March, 2022. City Commission of the City of Sa rd, Florida Traci Uchin, MMC,'FCRM Nit Cle C Vavo f ayor RM P, (J' D tV Apped as to form and leg y: 4i am L. Colbert, City Attorney 4 1 P ag c, WS RM x SXY OF RV NFORDA Item No. FLORIDA CITY COMMISSION MEMORANDUM 22079 MARCH 14, 2022 AGENDA To: PREPARED BY: SUBMITTED BY: SUBJECT: Honorable Mayor and Members of the City Commission Cynthia Lindsay, Finance Director Norton N. Bonaparte, Jr., ICMA-CM4Z-i`ty-`ager Firefighters' Retirement System; Or finance o. 2022-4675; Adoption STRATEGIC PRIORITIES: Unify Downtown & the Waterfront Promote the City's Distinct Culture Update Regulatory Framework Redevelop and Revitalize Disadvantaged Communities SYNOPSIS: Ordinance No. 2022-4675 has been prepared to amend Section 66-71 of the City Code relating to Firefighters' Retirement System for the City Commission's consideration. FISCAL/STAFFING STATEMENT: The Fire Pension Board's actuary, Foster & Foster, Actuaries and Consultants, advised that there is a cost of approximately $16,530 per year. BACKGROUND: At the November 5, 2021 Firefighters' Pension Board meeting, the Board unanimously recommended amending the following section of the Firefighters' Retirement System, allow for base pay to include certification incentive pay to certain designated employees of the City's Fire Department as follows: Fire Chief, Fire Marshall, Deputy Fire Chief, Battalion Chiefs, and Fire Inspectors. LEGAL RF-viF-w: Ordinance No. 2022-4675 has been prepared by the Fire Fighters' Pension Board attorney and has been reviewed and edited by the Assistant City Attorney who has no legal objection to the action proposed. The City Commission approved the first reading of Ordinance No. 4675 on February 28, 2022. The City Clerk published notice of the 2nd Public Hearing in the Sanford Herald on March 6, 2022. RECOMMENDATION: The Fire Fighters' Pension Board recommends that the City Commission enact Ordinance No. 2022- 4675. SUGGESTED MOTION: "I move to adopt Ordinance No. 2022-4675." Attachments: (1). Actuarial impact letter, dated February 2, 2022, from Foster & Foster, Actuaries and Consultants, with associated materials. (2). Memorandum, dated August 26, 2021, from City Manager on the Incentive Program for non-union Fire Department employees. (3). Ordinance No. 2022-4675.