HomeMy WebLinkAboutCity of Tamarac Resolution R-1975-094'his Resolution Introduced by:
Temp. # 37q
CITY OF TAMARAC, FLORIDA
RESOLUTION NO.
A RESOLUTION AWARDING THE BID FOR A PENSION
PLAN FOR TIIE CITY OF TAMARAC, FLORIDA;
PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City Council of the City of Tamarac, Florida,
has instructed the City Manager to advertise for bids for the
implementation of a Pension Plan for the City employees, and
WHEREAS, the bids received pursuant to said advertisement
were evaluated by the City Manager's office and certain recom-
mendations were forwarded to the City Council for its consideration,
and
WHEREAS, the City Council has also received the input from
the employees of the City of Tamarac, Florida, as to their
preferences regarding the ultimate choice of that company awarded
the bid to fund the said Pension Plan, and
WHEREAS, the City Council is now desirous of awarding the
said Pension Plan to the company of their choice, having considered
all of the relevant factors as aforesaid.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY
OF TAMARAC, FLORIDA:
SECTION 1 : That the bid proposal of I AE`4 Gi/P Al.,,,,��
a copy of which is annexed hereto and made a part hereof and labeled
Exibit A, is hereby accepted by the City Council of the City of
Tamarac, Florida.
SECTION 2: The implementation of the Pension Plan through
the funding of the said=�r�I�rxi3<<.� �=.Etr;�s ��r;r<, shall be effec-
tive on
PASSED, ADOPTED AND APPROVED this ! da y of
1975.
r'
A4AY
ATTEST:
C T CLERK
I HEREBY CERTIFY that I have
approved the form and correctness
of this Resolution. j
CIT �' EY
RECORD OF COUNCIL 'DOTE
MAYOR - D. JOHNSON Imo._ 1 t
V M - E. LANGE
C / W - H. MASSARO i
C / 7 0. TUCKER [�
M - M. GOCKSMAN
�J
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INTRO DU C-P-1 ON
This report outlines in raltively broad ten,,is the investt;ient facility
Equitable is prepared to offer your organization. We have assume in
developing this report that your basic concern is to provide a long -Lean
fixed interest guarantee under your plan. We would, however, Like to
point out that Equitable can accommodate virtually any approach that you
believe will best achieve your goals and objectives.
ITABLE' S LONG TERM FIXED INTEREST GUARANTEE
Based on the following; specifications, Equitable would guarantee an effec-
tive annual interest rate of 9.0%.
1. Duration -- An initial gurantee period beginning September 1, 1975
and ending on December 31, 1982.
2. Payment to Equitable - All future plan contributions will be allo-
cated to the guaranteed fixed income fund. Future plan contribu-
tions will be remitted on the first business day of each September
during the guarantee period, commencing September 1, 1975.
The only conditions we will set in connection with this offer are that (a)
each year during the guarantee period Equitable will receive for inclusion
under the guarantee all plan contributions on the date specified; (b) except
for withdrawals made in accordance with any distribution provision of the
plan, all funds allocated to the guaranteed account must remain in that
account until the end of the guarantee period.
In proposing this interest guarantee, we have assumed that all applicable
terms outlined in this report will be met. If not, or if a firm written
acceptance of the offer, accompanied by a $1,000 deposit is not received
by July 22, 1975, Equitable reserves the right to revise the interest guar-
antee.
CITY Or' TAMARAC
NOTICE OF PUBLIC HEARING
ON AMENDED 1974/75 BUDGET
YOU ARE HEREBY NOTIFIED OF A PUBLIC HEARING before the City Council
City of Tamarac, Florida, on the 24th day of September 1975 in the
City Kall, 5811 N4 85th AvenGe, 4t 2 p.m, to consider the adoption
cf an amcneed 1974/75 budget for the fiscal year 197,1/75 for the
City cf Tamarac, Florida.
The s 1Pmitry of the budge'~ to be con idered at that time is as follows:
GENFFL4L FUND
REVP,NvUES 3/18/75 9/24/75
AMENDED AI+R'NDED
BUDGF,T PUDGET
1. Ad Valorem Taxes (1,8942 mills x 1.10=2.083) $645,000 N/C
2. Alcoholic Beverage Licenses 3,000 "
3. Occupational Licenses - City 50,000 "
4. Occupational Licenses County 6,000 "
5. Building Permits 325,000 "
6. Court Costs Fees 12,500
7. Telephone Commissions 700 "
8. Parking Lot Revenue 2,000 "
9. Fines & Forfeitures 87,000 "
10. Police Education Fees 3,000 "
11. Interest Earned & Escrow 23,000 "
12. Interest Earned Investments 25,000 "
13, Interest Earned - Federal Revenue Sharing 0 ••
14. County Road & Bridge Tax 100,000 "
15. Miscellaneous Other Revenues 6,500 "
16. Franchise Fees 275,000 "
17. SDecial Revenue (State Revenue Sharing) 340,000
18.. Intergovernment Revenue 30,000 "
19. State Grant -- Canals 15,000 "
20. Federal Revenue Sharing 0 "
21. Engineering Inspection Fees 140,000 "
22, Federal and State Grants 172,660 "
23, Other Licenses 5,980 "
24. TOTAL CURRENT REVENUE 2,267,340 2,267,340
25. Fund Balance Prior Year 440,178 440,178
26. Total Available Funds 2,707,518 2,707,518
OPERATIONAI, EXPENDITURES
LYGISLATIVE & JUDICIAL,
27. City Council $ 27,598 27,598
28. Mayor 14,336 14,336
29. City Attorney 63,000 67,000
30. Municipal Court 32,896 32,896
31_ Special Counsel 10,000 5,000
$ 147,830 i46,830
BOARDS FIND COMMISSIONS
32, Election Board $ 11,900 12,303
33, Planning Commission 0 0
34. Beautification Committee 0 0
35_ Charter Board 19,810 19,810
36_ Board of Adjustment 0 0
$ 31,7.1.0 32,113
COMMUNTTY SERVICES
37, sanitation Service 376,000 378,600
36. C1vi1 Delnnta 11100 1,100
79. Cr+rq.ncr $ervlc�u _4r'%iu00 G 000
412.1U0 /4 4.700
�tl�i� SIMq fF}rrlC6w
M_ f w.i.p�..�{,r... �...�1 ♦ l ) i . lnipyl 1:, t./y(l
aY . w.wwyr�.....+ rr+wr..-t:t,i '[.wAr► 1-aRpRq
3/ib/75
9/24/75
ADMINISTRATIVE SERVICE
AMENDF,D
BUDGET
AMENDEDS
BUDGET
44.
General & Administrative
$ 202,405
$ 202,405
45_
City Manager
63,262
63,262
46.
City Clerk
78,259
73,259
47.
Finance Director
_811973
78,923
$ 425,899
$ 417,849
OCCUPATIONAL SERVICES
48.
Public Safety Department
$ 30,144
$ 30,144
49_
Police Department 717,519
694,087
50.
Less amount to be received from
Federal Revenue. Sharing (85,000)
(85,000)
632,519
609,087
51.
Fire Protection
72,700
74,700
52.
Protection Inspections Department
(Building Inspections)
1,75,044
175,044
53.
Public Works Department - General
151,427
151,427
54_
Public Works - Streets,Lights,Fountains,Signs
86,500
87,400
55.
Public Works - Canals and Mosquito Control
34,300
48,215
56.
Public Works - Building and Grounds
15,600
21,300
57.
City Engineer
108,114
108,114
58.
Park and Recreation
1,000
1,200
$ 1,307,348 $ 1,306,631
CAPITAL EXPENDITURES
59.
General and Administration
$ 1,000
1,000
60.
Civil Defense
250
250
61.
City Manager
800
800
62.
City Clerk
13,000
3,000
63.
Finance Department
6,870
6,870
64.
Public Safety
600
600
65,
Police Department
36,600
25,573
66.
Protective Inspections Department
(Building Inspections)
1,765
1,765
67.
Public Works - General
17,200
17,800
68.
Public Works - Streets, etc.
49,650
49,650
69.
Public Works - Canals & Mosquito Control
2,500
2,650
70.
City Engineer
2,000
2,000
71_
City Facilities Bond Sinking Fund
0
0
72.
Municipal Court
841
841
73_
Fire Protection
2,000
2,000
74.
TOTAL CAPITAL EXPENDITURES
$ 135,676
$ 114,799
75.
Federal and State Grants
172,660
76.
Total of all -Expenditures
_172,660
$2,695,723
2,671,723
77.
Anticipated Fund Balance
_ 1.1,795
35,795
78_
TOTAL
$2,7071518
21707r518
Copies of the Original Budget and the Amended Budget are available for,
inspection by the public at City Hall between the hours of 8:30 a.m, and
5 p.m. prior to the Public Hearing. Copies may also be purchased from the
City Clerk's office. _r
`1�111. + J
Peggy , --
PeM.`r. gy M. Twichell.
City Clerk.
For PUBLICATION IN FT. LAUDERDALE NEWS: Tuesday 9th Scptembcr
AN EQUITABLE PROPOSAL
r� A NEW INVESTMENT FACILITY
FOR ThE PROPOSED
CITY OF TAMARAC
NONEY PURCHASE PENSION PLAN
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')vTal Punsion reform legislation will have a major impact
of private pension and profit sharing plans, Existing
Lo he amended and administrative arrangements modified
v"h the new law. The Equitable will assist clients, to the
in developing the necessary amendments and modifications.
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Modifications in Guaranteed Interest Ratc,
Provided contributions under the fixed income outlet of the plan are
being made under the contract, Equitable willnotify the Trustees
whenaver, duriag the interest guarantee period, we are offering to
plans of the s=4 type a u-uaranteed rate of interest that is z of 1%
or more higher_ than that offered to such plans as of the later of the
register date of the contract and the effective date of the last
contractual change of the guaranteed rate of interest. At that time,
Equitable will offer the Trustees:
A new guaranteed rate of interest for all future contributions
under the fixed income investment outlet of the plan. All
contributions a -ad withdrawals will be made under the terms
of the new guarantee.. The present funds will continue to
earn interest at the existing guaranteed rate for the duration
of its guarantee period; the duration of the new guarantee
may differ from that of the existing guarantee. If the fixed
income funa under the new guarantee becomes exhausted, with-
drawals will be made from the fixed income fund under the
present guarantee.
Under this approach, there will continue to be only one
fixed income investment outlet under the plan. It will be
accommodated by combining the fixed income funds under both
guarantees and allowzng the Trustees to determine the actual
rate of interest to be credited to each individual participant's
account.
Alternatively, Equitable may consider providing to the Trustees of
your plan and similar plans the follawing arrannement:
A new guaranteed rate of interest for all funds under the
present guarantee and for all future coutri_butions. The new
rate would be a blended rate and would be :Less than the rate
being of -fared to new contracts, but greater than that for
existing funds. The duration of the new interest guarantee
may differ from that of the preceding guarantee.
The organization doing the administration should be consulted to
ascertain if the modification is compatible with its EDP capabili-
ties. The Trustee's counsel should also advise if the modification:
is acceptable under the terms of the Plan and Trust agreement.
FIXED INCC2-E` FUND
Guarantee of Principal and innterest: For amounts deposited with Equitable for
fixed income invastment, we will�es-tablish a fixed izicon.e fund and will
provide, for a period of time to bo agreed upon, a full ; uarantee both of
principal and interest.
The terms of Equitable's gua.rant2e of principal and interest are summarized
below.
Net Contributions
11 contributions allocated under the plan to the fixed income investment
outlet, after adjustment, if any, to recognize withdrawals from that outlet
to cover plan distributions, shall be deposited with Equitable and credited
as of thn date of receipt to the fixed income fund. If the amount to be
contributed is less that: the amounts withdrawn from the fixed income invest-
ment outlet, the: Trustees may direct that the differeace between the two
am.o,unts be withdrawn. from the fixed income fund. No surrender charge will
be associated ;with any such withdrawal.
Interest
Interest will be credited monthly to the fixed income fund at the guaranteed
effective annual rate,
Plan Distributions
Subject to the plan's provisions, amounts held in the fixed income fund may be
distributed in a single cash sure, in installments, in the form of a guaranteed
annuity, or in any cambinati.on of the three.
! If the Trustees choose to have Equitable pay the participant a guaranteed
jannuity, all or part of the sam accumulated to his credit in the fixed income
fund and in any other accounts maintained under the plan will be applied to
f provide an immediate annuity determined on the most favorable group rate
11 basis available from Equitable at the time of purchase.
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End of the Guarantee Period
Other than withdrawals for plan distributions, no amounts held in the fixed
income fund may be withdrawn before the end of the guarantee period. At the
end of that period, the Trustees may elect to keep the fixed income fund with
Equitable under a new guarantee arrangement negotiated at that time or, upon
90 days' advance written notice to Equitable, to transfer the entire account,
with interest, to another funding vehicle.
Furthermore, Fquitable may, upon 90 days' advance written notice to the Trustees,
change the guaranteed rate of interest to be credited to the fund after the ex-
piration of the guarantee.
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F]
FHF,S
The guaranteed rate of intarest applicable to the fired inccxn.e fund is ,p.et:
of investment expenses. Other eNpen. es consist of transaction charges for
withdrawal pay::ie nts and an administrative fee designed to cover our gaa ral_
overhead costs. All fecs are determined by formulas that are subject to
periodic raview by Egt,itabl.e.
The fee for overhead costs is applied against the mean amount of all funds
held by Equitable for a client during a calendar year and is subject to a
$2,000 minimum. (The mean fund is essentially the av(,raga amount held in
all accounts during tha year,)
Amount. of Lean Ftmd Annual. Fee
First
$ 1.
million
1/2
of
117
Next
$ 2
million
1/4
of.
1%
Nnxt
$ 2
million
1/6
of
1%
Next
$ 5
million
1/8
of
1%
Next
$10
million
1/1.2
of
1%
Neat
$20
million
1/20
of
1%
Excess
over $40 million
1/40
of
1%
This fee is usual]-y obtaiued by a direct- withdrawal front :funds held by
Equitable but we would be willing to bill the Trustees directly each year
for the appropriate amount. We are, of course, willing to discuss this
and other possible ar.ronnera:-its in greater detail.
If the. Trustees choose to have Equitable perform_ certain optional services,
such as the issuance of announce?nent material, an appropriate charge will
be rude for each activity. Compensation paid to an agent or broker will
also be charged to the amour_t halal by us for the Trustees.
.._...-.._... _..�_.. �.___.._.•.��.._._....�...,.._.._.�.�.--�.............w._.-,-.-_...�.�.....r...,. �.._._-..��.._...._-...__.._. is °� �... �.. ". -----------
Firs
The guaranteed rate of interest:. applicable to th.a fired inc_cme fun.cl is net
of investment expenses. Other expenses consist of transaction charges for
withu.rawal payments and an administrative fee designed to cover our gineral
overha,ad costs. All fees are determin O by formulas that are subje-et to
periodic review by Equitable,
iThe fee for overhead costs is applied against the mean amount of all funds
held by Equitable for a client during a calendar year and is subject to a
$2,000 minimi--n, (The LnrYan fund is essc,ntially the average amount held in
all accounts during the year.)
AzrounL of Mean Fund Annual tee
t First $ 1 million 1/2 of 1%
Next $ 2 inill.ion 1/4 of 1%
Next: $ 2 million 1/6 of 1%
Next $ 5 million 1/8 of 1%
Ne..t $10 million 1/12 of 1%
Next $20 million 1/20 of 1%
Excess over $40 million 1/40 of 1%
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This fee is usually obtained by a direct withdrawal from funds held by
I Equitable but we would be willing to bill the Trustees directly each year
for the appropriate amount:. We are, of course, willing to discuss this
and other possible arrangements in greater detail.
If the Trusters choose to have Equitable perform certain optional services,
such as the issuance of announcement material, an appropriate charge will
be made for each activity. Compensation paid to an agent or broker will
also be charged to the amount held by us for the Trustees.
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DZSTR ID-11 TON OF PL LN P''OCFEDS
! C.t. as ran te:zd Annuities
Equitable can distribute amounts Yield for the participant under the plan in
cash, in installments, oa- in he farm of a guaranteed annuity. A gilarantY4d
annuity has certain advantri7e.s that noither of the other mathods of payment
offers. For instarica, only an annuity can:
_ provide an income that the participant cannot outlive, and
- allow the participant to have an asr:;ured :income continued to
his spouse or to another beneficiary after his awn death.
Annuities can be payable either as a fi.:ed or a variable annuity or as a
combi.n.ation of the two. Under these guaranteed annuities, Equitable will
undertake the mortality and expense risks and, for fixed -dollar benefits,
the investment rlslc. In the case of a variable annuity, the investment
risk is undertake -,a by the participant through fluctuations in monthly pay-
ments to reflect the investment results of Separate Account No. 4, in
which a -mounts supporting these variable annuities are held.
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Guaranteed annuities may be paid on on-- or a combination of several different
forts. The annuity forar_a th;,YL We have foi.nd to be the most popular among
1 retiring employees are those that provide a death benefit to the employee's
beneficiary, either .as a lump sum payment or as contir_urng income. The
individual. employee's cir.cu=astances ;•TiLI draarmine the type and degree of
j financial security his beneficiary will nae.cl. Among the forms available are:
Cash Refund Annuity -- This form of annuity guarantees a lifetime
income to the retired employee and, at his death, a single sum
payment to his beneficiary equal to the excess, if any, of the
cost of the annuity over the sum of the payments made to him.
(This is available only as a fixed annuity.)
Life Annuity - Period Certain -- This annuity form guarantees a
lifetime income to the retirEd er:iployae plus a guarantee that,
if he dies within a s:_:lectcd rs.itai.anu_n payT:aent period, payments
will be continued to his bene.ci;_iary for the balance of the
period. The mzna_raurl pay,a�nt pc-.rtod is usually 5, 10, 15, or
20 years.
Joint and Survivor Lif-c Annuity -- This form guarantees lifetime
income to the retired employee arid, after his death, the continua-
tion of the same or a reduced incon.e, whichever is chosen, to his
joint annuitant.
Years Certain Annuity -- Instead of a guaranteed lifetime income,
1 this form provides for payin,_nt of a retiring employee's plan pro-
ceeds over a period of 5 or 1.0 years, whichever is selected, with
j payments continued to his beneficiary for the balance of the period
j if his death occurs before it expires.
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C014CLUSION
Since our entry into the field in 1927, Equitable's group pension and profit
sharing assets linve grown steadily, reaching $7.5 billion by the end of 1974.
In that year, $582 million was received from newly acquired business. These
figures are evidence Of the success of Equitable's continual efforts to
improve ;end diversity our investment facilities.
The advantages to participants in your plan of an interest guarantee are
manifold. One is its long-term nature. Another is its preservation of
principal. A third is, of course, its assurance of a guaranteed rate of
interest. These advantages combine to provide a level of security that
is unavailable through participation in either the bond market or the equity
market and that should be of particular importance to employees who are
nearing retirement and to s-rhom security of their investments may be of
primary importance.
Our report has outlined some of the investment facilities available to you
and should be considered as a basis for further discussion. Equitable will,
of course, always be ready to consider any modifications that will contribute
to the achievement of your objectives. No matter what these objectives may
be, Equitable is confident of our ability to enhance the value of yotir plan
both to you and to the plan participants.
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The preceding information has been furnished with the understanding tt;at
Equitable's contract will relate to a plan which meets, to the extent nr-
plicable, the requirements of Section 401 of the Internal Revenue C:o�-10. of
1954 (relating to qualified pension or profit sharing plans) and Equit.abl
underwriting requirements. The issuance of a contract is subject to appi.i.-
cable state insurance department approvals.
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