SPECIAL CITY COUNCIL MEETING MINUTES
COUNCIL CHAMBERS – CITY HALL
1000 CITY CENTER CIRCLE
MARCH 20, 2012
THE SPECIAL CITY COUNCIL MEETING of the City of Port Orange was called to order by Mayor Allen Green at 5:31 p.m.
Pledge of Allegiance
Roll Call: Present: Councilman Bob Ford
Councilman Donald Burnette
Councilman Dennis Kennedy
Vice Mayor Bob Pohlmann
Mayor Allen Green
Also Present: Kenneth W. Parker, City Manager
Margaret T. Roberts, City Attorney
Robin Fenwick, Deputy City Clerk
FIRE PENSION FUND BOARD REPORT
Mr. Parker introduced Patrick Donlan, Foster and Foster, the fire pension board actuary. Mr. Donlan discussed the unfunded actuarial accrued liability (UAAL) and the reasons for the changes through the last ten (10) years.
Vice Mayor Pohlmann asked if the extra payments made by the City last year helped to reduce the unfunded liability. Mr. Donlan said yes, approximately $400,000 extra was paid by the City to reduce unfunded liability. He advised Council that the plan is off to a good start for 2012. Vice Mayor Pohlmann asked what the rate would need to be to reduce the unfunded liability. Mr. Donlan explained that anything over 8% will help pay it down. To pay $2,100,000 extra a year (extra 14% over 8%) would reduce the UAAL.
Councilman Kennedy asked for the value of the plan. Mr. Donlan said the market value is $14,291,000 and he estimates it is up 14% since that value on 9/30/11. There are 93 total participants in the plan. Councilman Kennedy asked how this plan compares to other plans. Mr. Donlan believes the plan is comparable to others but he doesn't have the numbers in front of him to compare.
Councilman Burnette compared the plan like Social Security. Mr. Donlan explained that the plan tries to pay for the future not pay as you go. Councilman Burnette asked what the goal is for funding. Mr. Donlan advised 80% is the standard, but the funding estimates are planning for 100% funding. Councilman Burnette would like Council to assist on the management of the plan. Mr. Donlan explained the turnover is lower in most fire departments, which lead to more unfunded liability. Councilman Burnette would like to hear some suggestions to compensate for the turnover.
Councilman Ford expressed his frustration with actuaries and the plans not performing. He would like to know what the contributions need to be to get the UAAL under control.
Mayor Green explained that the taxpayer is responsible for the deficit.
Vice Mayor Pohlmann doesn't see how the plan can have a -1.2% return when the stock market is up 5.5%. He believes the fire board should discuss hiring experts in stock markets.
Councilman Kennedy asked the costs of the actuary for the fire plan. Mr. Donlan advised $150,000 or more.
Mr. Parker asked Mr. Donlan to confirm that the amount would be the same if the salaries went up. Mr. Donlan confirmed same.
Vice Mayor Pohlmann asked Mr. Donlan if the City has made the recommended contribution each year. Mr. Donlan said yes, and last year the City made a higher contribution.
ADJOURNMENT: 6:24 P.M.
Mayor Allen Green
Kenneth W. Parker, City Manager