File Ref. #103
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CITY OF
MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139
MEMORANDUM
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UNCLASSIFIED EMPLOYEES AND
ELECTED OFFICIALS
RETIREMENT SYSTEM
DATE:
September 23, 1998
TO:
Sergio Rodriguez
City Manager
Via:
Richard Bender
Executive Assistant to the City Manager/Labor Relations
FROM:
Margaret Arculeo '-Il4.
Pension Administrator
RE:
Budgets for Fiscal Year Ending September 30, 1999 for
Unclassified/General Employees Retirement Systems
-------------------------------------------------------------------------------------------------------------------
Attached please find the Budgets for the operating expenses of both the General Employees Pension
System and the Unclassified Employees and Elected Officials Pension System for the Fiscal Year
Ending September 30, 1999. Attached to each Budget is a Budget Summary with an explanation of
expenses.
Both Budgets have been adopted by their respective Boards.
/ma
Attachments
cc: Robert Parcher, City Clerk
c:\w\w\intemal.\budgets.merno
'{I
CITY OF MIAMI BEACH
GENERAL EMPLOYEES
RETIREMENT SYSTEM
BUDGET 98/99
TYPE OF EXPENDITURE 1997/1998 1997/1998 1998/1999
Budget Actual Exp. Budget
08/31/98
ACTUARY $17.000.00 $17,772.00 $17,500.00
AUDITORS $20,000.00 $23,500.00 $20,000.00
BOOKKEEPING SERVICE $5.000.00 $4,310.37 $5,000.00
CAPITAL EQUIPMENT $90,000.00 $375.95 $40,000.00
COpy MACHINE $300.00 $284.40 $700.00
CUSTODIAL BANK $34,000.00 $40,971.89 $45,000.00
DUES AND MEMBERSHIPS $800.00 $795.00 $800.00
FIDUCIARY LIABILITY INS. $24.000.00 $20,553.00 $24,000.00
FUND EVALUATOR $34,600.00 $46,532.45 $39,600.00
GENERAL LIABILITY/BOND $1,400.00 $1,174.50 $1,500.00
INVESTMENT MANAGERS $550,000.00 $459,855.34 $550,000.00
LEGAL FEES $27,000.00 $26,541.65 $32,000,00
MEDICAL EXAMS $1,250.00 $3,425.26 $3,600.00
MISC. BOARD EXPENSES $5,000.00 $5,481.96 $6,000.00
OFFICE MAINTENANCE $8,950.00 $8,120.75 $10,500.00
OFFICE SUPPLIES $800.00 $812.52 $950.00
PENSION CONFERENCES $20,000.00 $10,793,69 $20,000.00
PRINTING AND POSTAGE $10,000.00 $10.420.02 $13,000.00
SALARIES AND BENEFITS $79,500.00 $72.595.24 $84,500.00
STORAGE $600.00 $326.25 $600.00
TELEPHONE $1,600.00 $110.53 $1,800.00
WORKERS COMPENSATION $1,550,00 $499.80 $900.00
SUB TOTAL EXPENSES
$933,350.00
$755,252.57
$917,950.00
RETIREMENT PAYROLL
TOTAL OPERATING EXPENSES
$12,000,000.00
$12,933,350,00
$10,285,004.00
$11,040,256.57
$12,000,000.00
$12,917,950.00
Actuary:
Auditors:
Bookkeeping:
*Cap. Equip:
*Copy Mach:
Custodial
Services:
Dues:
Fiduciary
Liab. Ins:
Fund Eva!.:
General
Liab/Bond:
Investment
Managers:
GENERAL EMPLOYEES RETIREMENT SYSTEM
BUDGET SUMMARY
for
1998/1999 PLAN YEAR
The Actuary is under contract to prepare the 10/1/98 Actuarial Valuation for
$11,500. An additional amount of$6,000 was estimated for additional studies, for
a total estimated amount of$17,500.
The Auditors are under contract for the 9/30/98 Audit for a fee of$20,000.
Amount paid through 8/31/98 was $4,310. The Bookkeeper received an increase
from $25.00 to $27.50. Budgeted amount remains the same as last year $5,000.
In anticipation of the purchase of computer equipment (software at $52,000 and
hardware at approximately $10,000) for the administration of both Pension
Systems, General's portion at 60% is estimated from $37,200 to $40,000.
The annual full-service maintenance contract for the copy machine is $456 plus
approximately $700 for cartridges. This is a shared expense, and with an estimated
increase, General's portion for budget purposes was $700.
Services through 8/31/98 were $40,972. In anticipation of an increase due to an
increase in market values, $45,000 was used for budget.
The amount paid to 8/31/98 was $795. Estimated for budget purposes was $800.
Renewal premium was $20,553 paid April 1998. In anticipation of an increase for
the 1999 renewal, the amount estimated was $24,000.
The Fund Evaluator is under contract for $29,600 for performance measurement.
Other services are additional For budget purposes, the contract amount of$29,600
was used plus $10,000 for other studies for a total of$39,600.
The renewal premium for the General Liability coverage was $2,050 and the Fidelity
Bond was $299. In anticipation of an increase, $1,500 was estimated for budget.
Based on the market value of the total Fund as of 7/24/98 ($240,833,273), plus
10% expected increase to the market value of the accounts ($264,916,000), and
based on the investment fee schedules of each manager, we estimated fees to be
approximately $550,000.
Budget Summary
For 1998/1999 Plan Year
Page 2
Legal Fees:
Medical
Exams:
Misc.
Board:
* Office
Maint:
* Office
Supplies:
Pension
Conferences:
Printing &
Postage:
*Salaries &
Benefits:
*Storage:
*Telephone:
*W orkers
Comp:
*
Legal Counsel is under contract for $2,250 per month, plus $5,000 in anticipated
fees for outside counsel. Estimate for budget $32,000.
This service is used for disability applications. Expenses to 8/31/98 were $3,425.
An estimate of$3,600 was used for budget.
Based on $5,475 as of8/31/98 for 11 months, $6,000 was estimated for budget.
SeIVices for both Boards through 7/31/97 were $22,891. Even though a credit was
issued for $13,804, with increases anticipated, $10,500 was budgeted for General.
Supplies for both Boards through 7/31/98 were $1,276/10xI2 = $1,532 General's
portion was estimated at $950.
The same amount was budgeted as for prior years $20,000
Services to 8/31/97 were $10,420/11 x 12 = $11,367. Estimated amount is
$13,000.
General's portion paid to 8/31/98 was $72,595/11 x 12 plus 5% for an estimated
amount of$84,500.
Storage fees are $30 per month x 12 months = $360, plus pick-up and delivery
charges. $600 was estimated for budget.
Billing for telephone as of 7/31/98 was $184.24. With additional charges
anticipated, General's portion was estimated at $1,800.
The renewal premium for this coverage was $833. With an anticipated increase for
next year, General's portion was estimated at $900.
Expenses shared 50/50 with the Unclassified Board. General's portion is at 60%.
c:\w.w.genboardlbndget91!99.summary
UNCLASSIFIED EMPLOYEES AND
ELECTED OFFICIALS
RETIREMENT SYSTEM
BUDGET 98/99
TYPE OF EXPENDITURE 1997/1998 1997/1998 1998/1999
Budget Actual Exp. BUDGET
08/31/98
ACTUARY $8,600.00 $9,943.00 $10,000.00
AUDITORS $8,000.00 $9,000.00 $9,000.00
BOOKKEEPING SERVICE $1,500.00 $900.06 $1,500.00
CAPITAL EQUIPMENT $60,000.00 $250.63 $30,000.00
COPY MACHINE $325.00 $189.60 $500.00
CUSTODIAL BANK $11,000.00 $11,504.18 $13,000.00
DUES AND MEMBERSHIPS $600.00 $795.00 $795.00
FIDUCIARY LIABILITY INS, $13,000.00 $10,607.00 $13,000.00
FUND EVALUATOR $16,500.00 $12,375.00 $19,500.00
GENERAL LIABILITY/BOND $1,100.00 ($875.50) $1,200.00
INVESTMENT MANAGERS $343,349.00 $354,294,86 $421,000,00
LEGAL FEES $21,000.00 $23,583.11 $26,000.00
OFFICE MAINTENANCE $6,000.00 $4,499.38 $7,000.00
OFFICE SUPPLIES $600.00 $574.28 $600.00
PENSION CONFERENCES $15,000.00 $4,781,78 $15,000.00
PRINTING AND POSTAGE $3,800.00 $3,575.05 $4,000.00
SALARIES AND BENEFITS $53,400.00 $51,853.99 $59,400.00
STORAGE $240.00 $0.00 $240.00
TELEPHONE $1,200.00 $99.59 $1,200.00
WORKERS COMPENSATION $1,025.00 $333.20 $600.00
MISC. $600.00 $476.55 $600.00
TOTAL OPERATING EXPENSES $566,839.00 $498,760.76 $634,135.00
UNCLASSIFIED RETIREMENT SYSTEM
BUDGET SUMMARY
for
1998/1999 PIAN YEAR
Actuary: Actuary is under contract for 10/1/98 Actuarial Valuation for $7,900, plus $600
to update the Summary Plan Description, plus 415 calculations and studies for an
estimated amount of$10,000.
Auditors: Auditor is under contract for the 9/30/98 Audit for a fee of$9,000.
Bookkeeper: ~eIVices through 8/31/98 were $900. Her hourly rate was increased from $25.00
to $27.50 per hour. The estimated amount remained the same as last year at
$1,500.
*Capital Equip: In anticipation of the purchase of computer equipment (software at $52,000 and
hardware at approximately $10,000) to independently maintain the administration
of both Pension Systems. Unclassified's portion at 40% is estimated to be from
$26,000 to $30,000.
*Copy Machine: The annual full-service maintenance contract for the copy machine is $456 plus
$700 ink cartridges. This is a shared expense and with an estimated increase,
Unclassified's portion was estimated at $500.
Custodial Serv:
SeIVices through 8/31/98 were $11,504. The amount estimated for next year was
$13,000.
Dues:
The amount paid to 8/31/98 is the same amount expected to be paid for 98/99,
$795.
Fiduciary
Liab. Ins:
Renewal premium was $10,607 paid in April 1998. In anticipation of an increase
for next year, the amount budgeted remained at $13,000.
Fund Eva!.:
The Fund Evaluator is under contract for $16,500. An increase has been
requested by the:firm. In anticipation of this increase, $19,500 has been used for
budget purposes.
Gen. LiablBond: The renewal premium for the General Liability was $2,050 and Fidelity Bond was
$299. These are shared 50/50 with the General Board, for a budgeted amount for
Unclassified of$I,200.
Invest. Mgrs:
The market value for each money manger at 7/24/98 was used plus a 15 % rate of
return times the annual fee for each~ that basis Montag's fee for 98/99 should
be $213,952; N.W.Q - $186,760; and Northern Trust' - $20,540 for a total
estimated amount of$421,000.
Budget Summary
For 1998/1999 Plan Year
Page 2
Legal Fees:
*Office Maint:
* Office
Supplies:
Pension
Conferences:
Printing &
Postage:
*Sa1aries &
Benefits:
* Storage:
*Telephone:
*W orkers
Comp:
Misc:
*
Note:
Legal Counsel is under contract for $1,750 per month plus $5,000 in anticipated
fees for outside counsel for a total estimated amount of$26,000.
SeIVices billed for General and Unclassified through 7/31/98 were $22,891. Even
though a credit was issued for $13,804, increases for next year are anticipated.
Unclassified's portion is estimated at $7,000.
Supplies for both Boards through 8/31/98 were $1,387. Unclassified's portion
remains the same as last year at $600.
For budget purposes the same amount was budgeted as for last year at $15,000
Services to 8/31/98 were $3,575. Estimated amount is at $4,000.
Unclassified's portion paid to 8/31/98 was $51,8541l1xI2, plus an anticipated
increase. Estimate for Unclassified is at $59,400.
Storage fees are $30 per month x 12 months = $360, plus pick-up and delivery
charges. $240 is estimated as Unclassified's portion.
Billing for telephone expense as of 8/31/98 was $210. With additional charges
anticipated, the amount budgeted for Unclassified $1,200,
The annual premium for this coverage was $833. With an anticipated increase for
next year, Unclassified's portion was budgeted at $600.
Miscellaneous expenses through 8/31/98 were $595. $600 was budgeted.
Expenses shared 60/40 with the General Board. Unclassified's portion was
calculated at 40%.
The greatest change to the budget this year was due to the estimated projection for
the investment managers of a $77,651 increase over last year's budgeted amount.
CITY OF MIAMI BEACH
UNCLASSIFIED EMPLOYEES AND ELECTED OFFICIALS
RETIREMENT SYSTEM
BUDGET VERSUS ACTUAL PLAN YEAR 97/98
1997/1998
Actual Exp,
8/31/98
Reimbursement
By Ers Sys
to 07/31/98
Amount
Paid Out
to 08/31/98
1997/1998
Budget
Budget
Variance
1996/1997
Actual Exp.
to 9130/97
1996/1997
Budget
$9,943.00
$0.00
$9,000,00
$900.06
$250.63
$189.60
$11,504.18
$795.00
$10,607.00
$12,375.00
($875.50)
$354,294.86
$23,583.11
$4,499.38
$574.28
$4,781.78
$3,575.05
$51,853.99
$0.00
$99.59
$333.20
$476.55
$0.00
$0.00
$0.00
$0,00
($375.95)
($284.40)
$0.00
$0.00
$0.00
$0.00
($1,174.50)
$0.00
($1,357.00)
($8,120,75)
($812.52)
$0.00
$0.00
($72,595.24)
$0.00
($110.53)
($499.80)
($118.80)
$9,943.00
$0.00
$9,000.00
$900.06
$626.58
$474.00
$11,504.18
~795.oo
$10,607.00
$12,375.00
$299.00
$354,294.86
$24,940.11
$12,620.13
$1,386,80
$4,781.78
$3,575.05
$124,449.23
$0.00
$210.12
$833,00
$595.35
$8,600,00
$0.00
$8,000.00
$1,500.00
$60,000.00
$325.00
$11,000.00
$600.00
$13,000.00
$16,500.00
$1,100.00
$343,349.00
$21,000.00
$6,000.00
$600,00
$15,000.00
$3,800,00
$53,400.00
$240,00
$1,200.00
$1,025.00
$600.00
($330.00)
$0.00
($330.00)
$1,351.61
$100,360.07
$65.46
$12,378.59
($145.00)
$2,635.00
$0.00
($89.50)
($5,983.89)
$0.00
($3,731.03)
$167.61
$10,137.97
($756.91 )
$62.87
$0.00
$10,40
($122.11)
($72,18)
$8,130.00
$0,00
$5,830.00
$1,148.39
($360.07)
$606.54
$10,384.41
$745.00
$11,165,00
$16,500.00
$1,189.50
$269,611,89
$18,000.00
$5,331.03
$432,39
$4,862.03
$3,756.91
$50,747.13
$0.00
$489.60
$1,012.11
$672. 18
$7,800.00
$0.00
$5,500.00
$2,500.00
$100,000.00
$672.00
$22,763.00
$600.00
$13,800.00
$16,500.00
$1,100.00
$263,628.00
$18,000,00
$1,600.00
$600.00
$15,000.00
$3,000.00
$50,810,00
$0.00
$500,00
$890.00
$600.00
Expenditure
Actuary
Advertising
Auditors
Bookkeeping Services
Capital Equipment
Copy Machine
Custodial Bank
Dues and Membership
Fiduciary Liability Ins
Fund Evaluator
General LiabilitylBond
Investment Managers
Legal Fees
Office Maintenance
Office Supplies
Pension Conferences
Printing and Postage
Salaries and Benefits
Storage
Telephone
Workers Compensation
Miscellaneous
Type of
$498.760,76
($85,449.49)
$584,210,25
$566,839.00
$115,608.96
$410,254.04
$525,863.00
Total Operating Expense