Finance DepartmentFinance Department Christopher M. Quinn, Finance Director, MACC, CPA, CFE, CGFO, CGMAChristopher M. Quinn, Finance Director, MACC, CPA, CFE, CGFO, CGMA Ginger Norberg, Accounting Technician IIGinger Norberg, Accounting Technician II December 9 th, 2014December 9 th, 2014

History Current Plan Status Benefit Enhancement Project Next Steps Presentation Outline

July 2, 2002 City Council Levies Property Insurance Premium Tax of 1.85% on Insurance Companies, Ordinance Number State restricted for funding of pension benefits for Firefighters History

February 15, 2005 City Council established City of Palm Coast Volunteer Firefighters Pension Plan (Defined Benefit Plan), Ordinance Established Board of Trustees (5) 2 appointed by Council 2 appointed by Volunteers 1 appointed by other four History

Ordinance (Continued) Established Retirement Qualifications - LOSAP (Length of Service Award Pension Program) Benefit Amount - $35 per year of credited service Establish Pension Eligibility History

Points Issues for the Following Activities Response to Paged Calls (25%) Attendance at Drills (50%) Attend Business Meetings (8 Minimum) Position, Activity, Etc. points (50) History Length of Service Award Pension Program (LOSAP)

March 3, 2009 City Council revised the City of Palm Coast Volunteer Firefighters Pension Plan, Ordinance Increased benefit amount from $35.00 to $50.00 per year of credited service History

October 18, 2011 City Council revised the City of Palm Coast Volunteer Firefighters Pension Plan, Ordinance Increased benefit amount from $50.00 to $65.00 per year of credited service History

History Premium Tax Receipts Received During Fiscal YearAmountIncrease from Previous Year , , % , % , % , % , % , % , % ,3735.9% ,9625.2% , % ,

Current Plan Status Annual Amount from State Tax Collections ($350,000-$400,000) Current Benefits ($144,000) Reserve for Benefit Improvements ($206,000-$256,000)

Current Plan Status Plan Funding

Current Plan Status Funded Ratio

Current Plan Status Required Contributions

Current Plan Status Reserve for Benefit Improvements

Goals: No increased potential liability to the City Comply with IRS Regulations Comply with State Pension Statutes Take Advantage of benefit improvement reserve Benefit Enhancement Project

Share Plan Concept Provide additional amount above current defined benefit plan ($65.00 per month) Recommendation annually to City Council by Pension Board to distribute a portion of the benefit enhancement reserve (if any) Both current volunteers and retirees participate Mitigate accumulation of benefit improvement reserve No effect on potential City liability Benefit Enhancement Project

Volunteer Firefighter Pension Plan Ordinance Update to include share plan component Update for IRS compliance Submit to IRS for Private Letter Ruling IRS Approval Received 11/7/14 Update for changes in State Statutes Benefit Enhancement Project

Apply to IRS for Private Letter Ruling 9 to 12 month review period Present revised Ordinance to City Council for consideration January 2015 Next Steps

Questions?