§ 63. Source of moneys for fund; computation of liability; use and investment of fund.

(a)

At the end of each fiscal year of the City, the City shall pay into the Fund the amount the Board determines is required under this System, in addition to the personal contributions of members.

(b)

Each member of this System hired before September 30, 2013 shall contribute 10% of his Salary to the Fund. Each member of this System hired on or after September 30, 2013 shall contribute 10.5% of his Salary to the Fund. The City shall, solely for purposes of complying with section 414(h) of the Internal Revenue Code, pick up contributions required to be made by the members under this System. The contributions so picked up shall be treated as employer contributions for purposes of determining their tax treatment under the Internal Revenue Code. No employee shall have the option of choosing to receive the contributed amounts directly instead of having them paid by the city to the System.

(c)

All computations of liability in connection with the System shall be based on tables and rates approved by the Board. The Board shall designate an actuary for the System who shall recommend such tables and rates for adoption by the Board. The actuary designated by the Board, on the basis of such tables and rates, shall recommend to the Board the amounts required to be paid into the System by the City under subsection (a) of this section. During the three-year period beginning October 1, 2013, and at least once every three years thereafter, there shall be an experience study of the System's actuarial assumptions performed by an actuary selected by the City. The actuary selected by the City shall make recommendations for any changes in assumptions based on the results of the experience study. In the event the Board of Trustees or plan actuary disagrees with the recommended assumption changes, the Board or plan actuary shall present the basis of their disagreement and justify any deviation from the recommended assumptions to the City Commission. Effective September 30, 2013, the City shall require 5-, 10- and 20-year projections of required pension contributions as part of the annual actuarial valuations for each of the City's pension plans. These projections shall be based on the current actuarial assumptions for each plan. The projections shall be updated to reflect the cost of any proposed benefit enhancement before the City Commission agrees to the enhancement. The cost of these studies shall be funded separately from the annual contribution to the pension plan.

(d)

There shall be a complete actuarial evaluation prepared by the actuary at least every three years, and the City shall make such adjustments in its contributions as shall be shown to be required by such actuarial evaluation. The money required to meet all the obligations of this System over and above the personal contributions from members, is a liability and obligation of the City. The expenses of the System shall not be separately budgeted so long as the method is permitted by law. The City commission shall levy annually, in the manner provided by law, upon all taxable property within the City, such millage on the assessed valuation thereof as is necessary to produce the amounts required to be contributed by the City to this System. Effective September 30, 2013, the City shall fund at least the normal cost of the System, net of member contributions and state premium tax revenues. If the net City normal cost for any Plan year exceeds the City's annual required contribution as determined in accordance with Part VII, Chapter 112, Florida Statutes, the excess shall be held in reserve as part of the Fund assets, designated as the pension stabilization fund, and shall be used to offset the City's annual required contribution in any Plan year as determined by the City. The pension stabilization fund shall be accounted for separately and not included as assets of the Fund for plan valuation purposes, and shall be annually credited or debited with gains and losses at the same rate of return as the overall net market rate of return on Fund investments.

(e)

Nothing in this System shall be construed to prevent the City administration from appropriating moneys from the general fund or from any special funds of the City for the purpose of creating or adding to the Fund, and the City shall have the right to appropriate moneys from the general fund or any special fund of the City in addition to a millage. Furthermore, the City shall have the right and power to designate other sources of revenue for the Fund, including the designating of certain fines and forfeitures for violation of the City ordinances to be paid to the Fund instead of the general revenue of the City.

(f)

No moneys raised by taxation or otherwise provided for in the Fund shall be used other than for the purpose of this System.

(g)

Money shall be withdrawn from the Fund only upon warrants executed by at least five members of the Board. The Board shall have exclusive charge of the investment of any surplus in the Fund not needed for the Fund's current obligations. The Board shall, in acquiring, investing, reinvesting, exchanging, retaining, selling and managing property for the benefit of the Fund, exercise the judgment and care under the circumstances then prevailing which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not in regard to speculation but in regard to the permanent disposition of their funds, considering the probable income as well as the probable safety of their capital. Within the limitations of the foregoing standard, the Board is authorized to acquire and retain every kind of property, real, personal or mixed, and every kind of investment specifically including, but not by way of limitation, bonds, debentures and other corporate obligations, and stocks, preferred or common, which persons of prudence, discretion and intelligence acquire or retain for their own account and, within the limitations of the foregoing standard, the Board may retain property acquired, without limitation as to time and without regard to its suitability for original purchase. The intent of this provision is to remove any and all restrictions which are otherwise imposed by F.S. chs. 175 or 185 and which may be removed.

(h)

Moneys needed for meeting the System's current obligations may be deposited in a depository recognized by law for the deposit of funds of the State of Florida and upon posting of similar security to that required for public deposits. The City shall have the custody of and responsibility for any funds, stocks, bonds, notes or other evidences of indebtedness and such custody shall be for the purpose of safekeeping only, without any discretion in the City regarding the propriety of any withdrawal or transfer of any such funds, stocks, notes, or other evidences of indebtedness or funds.

(Election of 11-2-99; Ord. No. 2013-3817, § 2, 9-30-13; Ord. No. 2014-3848, § 2, 3-5-14; Ord. No. 2015-3970, § 2, 10-14-15)