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Home My Public Portal About08/31/1989 * Pension Workshopv IERS v,(CF JR, McYOr •.�� • =MWR V¢e Mgor ,A MES L CROSS Kathleen S. Wallace E E STAnL TOWN OF GULF STREAM PALM BEACH COUNTY, FLORIDA TOWN COMMISSION WORKSHOP ON PENSI August 31, 1989 9:00 a.m. MINUTES MAIL AUDRE55 IN SEA ROAD GULF STREAM. FI UIOUA 33463 TEL GULF STREAM (407) 276 5116 Town MuvOm Franklin E. Flannery The meeting was called to order at 9:00 a.m. by the Hon. William F. Koch, Jr., Mayor. 1. Roll Call Present: William F. Koch Alan I. Armour James E. Cross Lawrence E. Stahl Also present: Kathleen S. Wallace Charles E. Eaton John Buchan Franklin E— Flannery Steve Palmquist Mayor Vice -Mayor Commissioner Commissioner Vice - Chairman, Planning & Zoning Captain, Police Department Town Manager Pension Advisor /Actuary Mayor Koch announced the purpose of this special workshop meeting is the pension plan. Mrs. Wallace was sworn in as a Town Commissioner by Mr. Flannery. Mrs. Wallace was welcomed to the Commission and took her seat as a Commissioner. Mr. Armour gave a summary of his meeting with Mr. Flannery and Mr. Palmquist, noting that Mr. Palmquist's dossier was at hand. Mr. Flannery read from Mr. Palmquist's dossier and Mr. Armour introduced Mr. Palmquist to the assembly. Mr. Palmquist described the present pension plan and gave examples of other pension plans -the differences and similarities. The current Town pension plan is described as a defined contribution plan. Mr. Palmquist described the options open to the Police Department ( Chapter 185 Plan - Florida Statute - -which eliminates fees), control of investments and Boards of Trustees who oversee pension plans as well as the State requirements for Chapter 185. The assembly actively participated with the Commission in the dialogue with Mr. Palmquist comparing contributions, funding, time periods, etc. Town Commission Workshop on Pensions August 31, 1989 Page Two ( Mr. Flannery provided figures and extension of the figures on various monies, percentages and time periods. The Commission thanked Mr. Palmquist for his excellent presentation. No action was taken by the Commission. The meeting adjourned at 10:40 a.m. Franklin E. Flanner Town Manager State Law 185 1989 -1990 Qst per State (Defined Benefit Plan -DBP) (2;. per year, 10 year vest) Policemen's Salaries $309,177 (Overtime excluded) x .05 15,459 Cost to the Town Defined Contribution P1an,Existing (DCP) $309,177 x .07 Incremental increase, DBP over DCP 32,773 = 1.52, 52% increase over existing DCP 21,542 $48,232 - 15,459 32,773 - 21,542 11,231 32,773 = .106, 10.6% of police base salaries - Town contribution to DBP for 1989 -1990 309,177 OTHER SALARIES Public Works - Operators (2) Administration- Supervisor J Acting Town Manager $77,932 -x .106 = 8,261 x .07 Town's contribution to existing DCP 5,455 -5,455 Incremental increase to 2,806 maintain paiity with police Total Budget Requirement DBP (Police) 32,773 DCP (Others) 8,261 Maximum','- 41,034 *If all employees participate LES 9/8/89 Revised ss a+ero _IAM s AOCH. JR, MWW �.Y ARYQyA V. M, NNES a CROSS ��J. RE tiCE E {TAML TOWN OF GULF STREAM COUNTY OF PALM BEACH COUNTY, FLORIDA OATH OF OFFICE Palm Beach MAN, ADORLSS IN SEA ROAD GULF STIIEAM, FLORIDA S7Y7 TEL.: GULF STREAM NOT) 7T0 51 to Twn MAnRpar Franklin E. Flannery I DO SOLEMNLY SWEAR that I will support, protect and defend the Consititution and Government of the United States and of the State of Florida; that I am duly qualified to hold office under the Constitution of the State, and that I will well and faithfully perform the dutes of TOWN COMMISSIONER OF THE TOWN OF GULF STREAM On WHICH I AM NOW ABOUT TO ENTER, SO HELP ME GOD. *igas ou desire commission issued) Sworn to and subscribed before me this 3/ day of 14aCl —ez.5i p q 19 O / .Notary Public or other individual authorised to administer oaths. My Commission expires I accept the office of Town Commissioner, Town of Gulf STream County of Palm Beach The above is the oath of office taken by me. (Sign as you desire commission issued) TAX ALERT FROM THE PALM BEACH CIVIC ASSOCIATION SHARP INCREASE IN PALM BEACH COUNTY AND SCHOOL BOARD TAXES IN THE NEXT FISCAL YEAR, THIS BULLETIN IS TO ADVISE YOU OF AN IMMINENT TAX INCREASE, TO EXPLAIN ITS CAUSES, AND TO ASSURE YOU OF OUR DETERMINATION TO PROMOTE CORRECTIVE ACTION. Your Civic Association is deeply perturbed by the uncontrolled escalation of property taxes, based upon an analysis of next year's local governmental budgets currently under review. The level of these taxes for homes in the TOWN of Palm Beach are dependent upon the three key factors listed below: 1. The taxable values of properties as determined by the County's Property Appraiser and how the taxable value of each property varies in relation to total taxable value of all properties in the Town and in the County. Expenditures approved by County Government, County School Board, and other independent Taxing Authorities in the County, and how much of these expenditures are financed by property taxes rather than by fees and ''user taxes" 3. Expenditures approved by our Town Council, i.e. expenditures that are directly intended to be used only for the Town of Palm Beach. Carefully review the chart on the reverse side — it compares the escalation of taxable values, millage rates, and resultant property taxes for both the Town and County between 1986 and currently projected 1990. Compared with a likely 15 percent U.S. cost of living increase over that 1986 -1990 period, for a ''typical" Town of Palm Beach residence (with say a $400,000 taxable value), the chart (on the reverse side) shows the following: A. The property tax for that residence will go from $5,096 in 1986 to $8,548 in 1990, an increase of 68 percent. B. The portion of that property tax destined for the County, School Board and other Taxing Authorities in the County, will increase from $3,366 to $6,616, up 97 percent, or six times the inflation rate. C. On the other hand, the portion of tax that stays in Palm Beach will go from $1,730 to $1,932, up 12 per- cent, or slightly below the inflation rate. Four years ago the proportion of our total property taxes which stayed in our Town was 34 %. In 1990 that proportion will average out to slightly more than 221/2 %. While the high- standard services of the Town of Palm Beach continue to be provided in a fiscally responsible manner (aided in part by the efficiency studies of the Police and Fire/ Rescue Departments — promoted by the Civic Association), the same is far from true in the case of the County, School Board, etc. Your Mayor and Town Council are fully cognizant of this ominous trend in property taxes. Our Town is far from unique in the County. Therefore, your Civic Association intends to help seek the cooperation of the leaders of other communities in the County and to set in motion a county -wide movement aimed at achieving responsible fiscal control on the part of the County, School Board and other independent Taxing Authorities. Coordinated planning, much time and effort on the part of communities, citizen groups and municipal governments will be essential to reverse this trend. As we go forward in this program we will need your active interest and continued support. (continued on reverse side) COMPARISON CHART NOTES: (1) As per County Appraiser's Office (2) Including New Construction 1986 -90 (3) The 1986 -90 Increase in Taxable Value of a "Typical" Town Residence — 45% - is Lower than the 56% Increase for the TOTAL of All Town Properties because the latter includes New Construction (4) 1 Mil = $1 per $1,000 of Taxable Value 1986 1989 1990 NCREA 0 INCREASE COST OF LIVING INCREASE BETWEEN 1986 & 1990 ________ ___ +15% TAXABLE VALUES OF PROPERTIES "' • Palm Beach County Total "' ($ Billions) $29.78 $38.96 $45.20 +52% • Town of Palm Beach Total` ($ Billions) $ 2.34 $ 3.08 $ 3.65 +56 % "' GOVERNMENTAL MILLAGE TAX RATES 14) • County 4.53 5.06 4.95 • School Board 7.23 8.46 9.55 • Other Taxing Authorities in County 0.48 0.78 2.04 • Town of Palm Beach 6.29 5.45 4.83 18.53 19.75 21.37 TOTAL MILLAGE: TAXES FOR "TYPICAL" TOWN OF PALM BEACH RESIDENCE • Taxable Value $275,000 $340,000 $400,000 +45% (3) • Taxes for County, School Board, etc. $ 3,366 $ 49862 $ 6,616 +97% • Taxes for Town of Palm Beach $ 19730 $ 11853 $ 17932 +12% $ 5,096 $ 69715 $ 8,548 +68% TOTAL TAXES: NOTES: (1) As per County Appraiser's Office (2) Including New Construction 1986 -90 (3) The 1986 -90 Increase in Taxable Value of a "Typical" Town Residence — 45% - is Lower than the 56% Increase for the TOTAL of All Town Properties because the latter includes New Construction (4) 1 Mil = $1 per $1,000 of Taxable Value