AGENDA - KEYS Energy

AGENDA UTILITY BOARD OF THE CITY OF KEY WEST, FL
REGULAR MEETING 5:00 P.M. - WEDNESDAY, MAY 23, 2018
1001 JAMES STREET – KEYS ENERGY SERVICES BOARD ROOM
1. Pledge of Allegiance
6. Recognition and Presentation: a) Completion of Apprentice Substation Electrician Program – Tony Boza b) Completion of Apprentice Lineman Program – Marlon Briones
7. Informational Items: a) Department Staff Report b) Generation Report – April 2018 c) Rate Comparison – April 2018 d) Flood Insurance Renewal Update
8. Consent Agenda* a) Approve Minutes – Regular Utility Board Meeting – May 9, 2018 b) Approve Disbursements Report c) Request for Excused Absence for Chairman Peter Batty from the May 9, 2018 Regular Utility Board Meeting
9. Action Items a) Approve Hiring Replacements for Pending Retirements Policy b) Approve Resolution #813 – A Resolution Amending the Plan Document, Article Four, Retirement Benefits Section 4.09 c) Accept Actuarial Valuation Report as of January 1, 2018, and Approve the Pension Contribution Percentage
10. Public Input/ Other Business
11. Adjournment * Item is considered to be routine and enacted by one motion with no separate discussion, unless requested
by a Utility Board Member or citizen, in which event the item will be considered independently.
Peter Batty, Chair Mona Clark, Vice Chair Charlie Bradford, Member Timothy Root, Member Steven Wells, Member
April 2018 Generation Report
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*Includes average 6% franchise fee **Fuel, Purchased Power, or Cost Adjustment
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Proposer: Lynne E. Tejeda, General Manager & CEO Department: Human Resources & Communications Agenda Item #: 7d
AGENDA ITEM WORDING: Approve Federal Flood Insurance with Wright National Flood Insurance Company through Gehring Group, Inc. REQUESTED ACTION: Informational Item Only DISCUSSION: Federal Flood insurance participation is required by the Federal Emergency Management Association (FEMA) to meet requirements for disaster reimbursement. The maximum policy limit is $1 Million per location ($500,000.00 for the building and $500,000.00 for contents) with a $5,000.00 deductible per location. The cost for policy year June 14, 2018 through June 14, 2019 is $159,132.00, which is an increase of $14,911.00 or 10.3%. The attached schedule shows the building coverage, contents coverage and annual premium for each location. The overall increase is a reflection of national flood re-mapping recently completed and adopted by the NFIP and the changes to flood policy rates as a result of the flood damage throughout the U.S. from the 2017 hurricane season. The Transmission & Distribution Building and Big Coppitt Control Building reflect not-to-exceed premium estimates because their actual premium costs won’t be available until after the board meeting agenda submission deadline. The National Flood Insurance Program (NFIP) remains the sole source for flood insurance for most properties located in Monroe County. The Gehring Group will continue to seek out all available options in the Flood Insurance market in order to identify and present possible alternative sources for this necessary coverage. FINANCIAL IMPACT: Total Estimated Cost: $159,132.00 Budgeted: Yes Source of Funds: O&M
Acct# 1-32-924266-90-00000
Coverage Contents
2017-2018 Annual Pemium
2018-2019 Annual Pemium
1-1 09115044085008 Meter Strorage 5,000$ 76,000$ 10,000$ 1,683$ 2,019$ 1-2 09115044084908 File Storage 5,000$ 37,000$ 23,000$ 1,502$ 1,790$ 1-3 09115044077608 Main Office 5,000$ 500,000$ 500,000$ 21,941$ 27,361$ 2-2 09115044076708 SI Switch Yard Relay 5,000$ 60,000$ 240,000$ 6,894$ 8,019$ 2-3 09115044084808 SI Switch Yard Relay 5,000$ 51,000$ 500,000$ 12,318$ 14,369$ 2-8 09115110643108 T&D Line Bldg (7/15/2018) 5,000$ 500,000$ -$ 795$ 994$ 2-9 09115044076108 Ralph Garcia Steam Plant 5,000$ 500,000$ 500,000$ 20,668$ 24,117$ 2-11 09115044076408 Warehouse #1 5,000$ 155,000$ 500,000$ 13,662$ 15,946$ 2-12 09115044090008 Warehouse #2 5,000$ 472,000$ 500,000$ 1,962$ 1,926$ 2-13 09115044076508 Warehouse #3 5,000$ 500,000$ 500,000$ 21,227$ 20,859$ 3-1 09115044086608 Angela St Sub Station Control 5,000$ 500,000$ -$ 1,407$ 1,493$ 5-1 09115044080708 Thompson St Sub Station Control 5,000$ 500,000$ -$ 4,109$ 4,379$ 6-1 09005070307608 Cudjoe Key Sub Station Control 5,000$ 500,000$ -$ 3,886$ 3,900$ 7-1 09115044076008 Kennedy Dr Sub Station Control 5,000$ 500,000$ -$ 15,749$ 15,803$ 9-1 09115044076808 US1 Sub Station Control 5,000$ 500,000$ -$ 10,835$ 10,114$ 10-1 09115044076908 Big Coppitt Sub Station Control 5,000$ 500,000$ -$ 1,342$ 1,687$ 12-1 09115044077008 Big Pine Sub Station Control 5,000$ 500,000$ -$ 1,054$ 1,082$ 13-1 09115056432208 2nd St Sub Station Control 5,000$ 500,000$ -$ 2,085$ 2,087$ 14-1 09115044086508 White St Sub Station Control 5,000$ 500,000$ -$ 1,102$ 1,187$
Total Premium 144,221$ 159,132$ $ Increase/Decrease N/A 14,911$ % Increase/Decrease N/A 10.3%
Agenda Item Summary Sheet Meeting Date: May 23, 2018
Proposer: Lynne E. Tejeda, General Manager & CEO Department: Executive Agenda Item #: 8a
AGENDA ITEM WORDING: Approve the Minutes of the Regular Utility Board Meeting– May 9, 2018 REQUESTED ACTION: Approve the Minutes of the Regular Utility Board Meeting– May 9, 2018
MINUTES FROM A REGULAR MEETING OF THE UTILITY BOARD OF THE CITY OF KEY WEST, FLORIDA,
HELD AT 5:00 P.M. ON WEDNESDAY, MAY 9, 2018 KEYS ENERGY SERVICES BOARD ROOM
1001 JAMES STREET, KEY WEST, FLORIDA
1. Pledge of Allegiance
3. Mission and Vision
4. Roll Call Present: Mr. Charlie Bradford, Ms. Mona Clark (Acting Chair), Mr. Timothy Root, Mr. Steven Wells. Absent: Chairman Peter Batty.
Also present at the meeting: Lynne Tejeda, General Manager/CEO; Jack Wetzler, Asst. General Manager & CFO; Fred Culpepper, Transmission & Distribution Director; Dan Sabino, Engineering & Control Center; Julio Torrado, HR & Communications Director; Joseph Weldon, Generation Director and Erica Zarate, Customer Services Director.
5. Set Agenda
7. Informational Items:
KEYS Rebate Program - Erica Zarate, Director of Customer Service
b) Power Supply Report – April 2018 c) Rate Comparison Report – March 2018 d) Financial and Operational Indicators – March 2018
e) Florida Municipal Power Agency FMPA Solar Project
8. Consent Agenda*
a) Approve Minutes – Regular Utility Board Meeting – April 25, 2018 b) Approve Disbursements Report c) Request for Excused Absence for Timothy Root from the April 25, 2018 Regular Utility Board Meeting d) Request for Excused Absence for Steven Wells from the April 25, 2018 Regular Utility Board Meeting e) Declare Storm Damaged Transformers as Surplus after removal and proper disposal
Motion: To Approve Consent Agenda, Moved by Mr. Root, Seconded by Mr.
Wells. Motion passed unanimously.
Utility Board Regular Meeting Minutes Wednesday, May 9, 2018 Page 2
9. Action Items
a) Approve Resolution #812 - Revising Staff’s Change Order Thresholds Authority
Motion: To Approve Resolution #812 – A Resolution Regarding Contract Change Order Threshold Amounts by the Utility Board of the City of Key West, Florida, Moved by Mr. Bradford, Seconded by Mr. Wells.
Vote: Motion carried by unanimous roll call vote (summary: Yes = 4). Yes: Mr. Charlie Bradford, Mr. Timothy Root, Mr. Steven Wells, Ms. Mona Clark (Acting Chair)
b) Approve Federally Funded Subaward and Grant Agreement between the Florida Division of Emergency Management (FEMA) and KEYS and delegate authority to the GM/CEO or AGM/CFO to execute Subsequent Amendments to the Subgrant
Agreement
Board Discussion
Motion: To Approve the Federally Funded Subaward and Grant Agreement in substantial form between the Florida Division of Emergency Management and KEYS and delegate authority to the GM/CEO, AGM/CFO or Accounting Supervisor to execute the final Federally Funded Subaward and Grant Agreement and Subsequent Amendments to the Agreement, Moved by Mr. Bradford, Seconded by Mr. Wells.
Board Discussion
Vote: Motion carried by unanimous roll call vote (summary: Yes = 4). Yes: Mr. Charlie Bradford, Mr. Timothy Root, Mr. Steven Wells, Ms. Mona Clark (Acting Chair)
10. Public Input/ Other Business
11. Adjournment
Motion: To Adjourn the Regular Utility Board Meeting of May 9, 2018, at 5:19 p.m., Moved by Mr. Root.
APPROVE: _________________________________ Peter Batty, Chairman
/ed
UTILITY BOARD OF THE CITY OF KEY WEST AGENDA ITEM SUMMARY SHEET
MEETING DATE: May 23, 2018
FROM: Jack Wetzler, Assistant General Manager & CFO
AGENDA ITEM #: 8b
PROPOSER: Lynne Tejeda, General Manager & CEO
AGENDA ITEM WORDING: Approve Disbursement Report
BRIEF BACKGROUND: Payments are processed under Section 11 of Florida Statute 69-1191 and in accordance with Resolution No. 679 approved October 13, 1999. Staff has processed payments from the Operation & Maintenance Fund,
from the Renewal & Replacement Fund and the Construction Fund . Check Registers and listings are attached for review.
Type of Disbursement
Approve the Disbursement Report for the Operation & Maintenance Fund, Renewal & Replacement Fund.
DISPOSITION:
941 05/04/18 1,861.96 IBEW LOCAL 1990 PAYROLL SERVICES
942 05/04/18 154,548.12 KEYS PENSION FUND PAYROLL SERVICES
943 05/10/18 259.40 AIRGAS USA SUBSTATION MATERIALS
944 05/10/18 3,677.00 AMERICAN FAMILY LIFE ASSUR CO INSURANCE PAID BY EMPLOYEE
945 05/10/18 1,545.68 ATLANTIC UTILITY SERVICE REPAIRS
946 05/10/18 6,638.00 BAKER TILLY VIRCHOW KRAUSE, LLP CONSULTING SERVICES
947 05/10/18 118,665.27 BILTMORE CONSTRUCTION JANITORIAL SERVICES/REPAIRS
948 05/10/18 5,460.84 BLAYLOCK OIL CO INC FUEL
949 05/10/18 2,250.00 BURNDY TOOL REPAIR REPAIRS
950 05/10/18 11,550.00 CARLTON FIELDS PA LEGAL SERVICES
951 05/10/18 4,388.00 CNC MEDICAL TRAINING LLC SAFETY SUPPLIES
952 05/10/18 1,596.97 GARYS PLUMBING FACILITIES SERVICES
953 05/10/18 5,000.00 GEHRING GROUP SERVICES
954 05/10/18 4,724.11 INFOSEND INC. CONTRACTED SERVICES
955 05/10/18 40.00 LOCAL AWARDS SERVICES
956 05/10/18 469.59 NEIL S MELLIES REIMBURSEMENT
957 05/10/18 2,923.00 PRECISION CONTRACTING SERV SERVICES
958 05/10/18 533.49 SCHWEITZER ENGINEERING LAB INC MATERIALS
959 05/10/18 102.77 STRUNKS ACE HARDWARE FACILITIES MATERIALS
960 05/10/18 4,896.00 STUART C IRBY CO DISTRIBUTION MATERIALS
961 05/10/18 109.10 SUNSHINE STATE ONE CALL ENGINEERING SERVICES
962 05/10/18 258.00 WEATHER DECISION TECH. INC SERVICES
963 05/10/18 300.00 WESCO DISTRIBUTION DISTRIBUTION MATERIALS
964 05/10/18 765.00 WKYZ RADIO - KEY MEDIA CO. INC. ADVERTISING
965 05/17/18 60.03 AIRGAS USA SUBSTATION MATERIALS
966 05/17/18 5,514.40 ASPLUNDH TREE EXPERT CO TREE TRIMMING SERVICES
967 05/17/18 812.50 CHOICE RADIO KEYS CORPORATION ADVERTISING
968 05/17/18 350.15 COOKE COMMUNICATIONS LLC ADVERTISING
969 05/17/18 252.00 CSC INC SERVICES
970 05/17/18 5,381.00 DIVERSIFIED SERVICES CO JANITORIAL SERVICES
971 05/17/18 256,625.75 FLORIDA KEYS ELECTRIC COOP TRANSMISSION O&M
972 05/17/18 255.00 FRANKIE WEBB MEAL ALLOWANCE
973 05/17/18 270.00 GRICEL OWEN TRAVEL
974 05/17/18 523.00 KEYS ARMORED EXPRESS INC SERVICES
975 05/17/18 26,413.51 NOVA TECH LLC EQUIPMENT/SERVICES
976 05/17/18 8.56 PETER BATTY TRAVEL
977 05/17/18 3,700.00 SCHWEITZER ENGINEERING LAB INC EQUIPMENT
978 05/17/18 9.97 STRUNKS ACE HARDWARE FACILITIES MATERIALS
979 05/17/18 6,948.00 STUART C IRBY CO DISTRIBUTION MATERIALS
980 05/17/18 888.75 WIIS - ISLAND RADIO ADVERTISING
Total OM EFT 640,574.92
Utility Board of the City of Key West Disbursement Report
For the Period May 4, 2018 to May 17, 2018
Ref # Date Amount Payee Purpose OM EFT Wire Payments
Total OM EFT WR -
Ref # Date Amount Payee Purpose OM Wire Payments
5350 05/04/18 291,958.70 ADP ACH NET PR PAYROLL SERVICES 5351 05/04/18 61,645.51 ADP TAXES PAYROLL SERVICES 5352 05/04/18 1,056.23 ADP WAGE GARNISHMENT PAYROLL SERVICES 5353 05/04/18 8,131.51 FL LEAGUE OF CITIES PAYROLL SERVICES 5354 05/04/18 289.40 FLORIDA PREPAID COLLEGE PROGRAM PAYROLL SERVICES 5355 05/04/18 11,821.72 NATIONWIDE RETIREMENT SOLUTIONS PAYROLL SERVICES 5356 05/04/18 2,468.06 VOYA RETIREMENT INS AND ANNUITY PAYROLL SERVICES 5357 05/04/18 21,939.24 FIRST TENNESSEE PCARD PURCHASE
Total OM WR 399,310.37
Disbursements from the Operations & Maintenance Fund (Expenses): 172967 05/04/18 14.00 CANCER FOUNDATION OF THE FL KEYS PAYROLL SERVICES 172968 05/04/18 183.50 UNITED WAY OF MONROE COUNTY PAYROLL SERVICES 172969 05/09/18 1,048.03 ALFRED RAHMING JR CUSTOMER REFUNDS 172970 05/10/18 143.94 AAA COOPER TRANSPORTATION FREIGHT 172971 05/10/18 31,607.60 ADJUSTERS INTERNATIONAL, INC. CONSULTING SERVICES 172972 05/10/18 176.07 ALTEC INDUSTRIES INC VEHICLES, PARTS, SERVICES 172973 05/10/18 1,089.00 BARNES ALARM SYSTEMS INC SAFETY 172974 05/10/18 133.50 BARNES ALARMS FACILITIES SERVICES 172975 05/10/18 1,991.15 BENEFITS WORKSHOP INSURANCE PAID BY EMPLOYEE 172976 05/10/18 306.00 BLAINE GRASSI TRAVEL 172977 05/10/18 4,300.00 CHERRY BEKAERT & HOLLAND LLP CONTRACTED SERVICES 172978 05/10/18 208.84 CINTAS CORPORATION UNIFORM SERVICES 172979 05/10/18 1,139.96 DELL COMPUTER CORPORATION COMPUTER EQUIPMENT 172980 05/10/18 750.00 DIGITAL ASSURANCE CERTIFICATION CONSULTING SERVICES 172981 05/10/18 6,081.21 DION FUELS LLC FUEL 172982 05/10/18 476.15 DYNA SYSTEMS TOOLS 172983 05/10/18 457.25 ED WATTS FUEL 172984 05/10/18 3,938.40 FASTENAL FACILITIES MATERIALS 172985 05/10/18 972.00 FEA DISTRIBUTORS INC. AUTO PARTS/SUPPLIES 172986 05/10/18 4,324.67 FIRST STATE BANK OF FL KEYS BANKING SERVICES 172987 05/10/18 257.68 FISHER SCIENTIFIC SAFETY 172988 05/10/18 795.67 FLORIDA KEYS AQUEDUCT AUTHORITY WATER-SEWER 172989 05/10/18 75.62 KEY WEST CHAMBER OF COM GREATER MEAL ALLOWANCE/ DUES 172990 05/10/18 1,986.00 MSC INDUSTRIAL SUPPLY CO SAFETY 172991 05/10/18 417.29 NAPA AUTO PARTS ROYS AUTO PARTS PARTS, SUPPLIES 172992 05/10/18 6,400.00 NATHAN EDEN PA LEGAL 172993 05/10/18 12,609.11 STANDARD INSURANCE COMPANY INSURANCE 172994 05/10/18 3,360.00 STEWART & STEVENSON FDDA LLC SUPPLIES 172995 05/10/18 22,748.00 TEMPLE, INC. FREIGHTMATERIALS 172996 05/10/18 323.62 XEROX CORP RENTAL EXPENSE 172997 05/14/18 48.35 BENJAMIN HARRIS CUSTOMER REFUNDS 172998 05/14/18 18.46 BETTEANN BAGINSKI CUSTOMER REFUNDS 172999 05/14/18 2.88 CALVIN E MOORE SR CUSTOMER REFUNDS
173000 05/14/18 53.53 CORINNE A PERRY CUSTOMER REFUNDS 173001 05/14/18 82.72 DANIEL ALEXANDER SMITH CUSTOMER REFUNDS 173002 05/14/18 81.84 DOMINICK F SILVESTRO CUSTOMER REFUNDS 173003 05/14/18 44.53 DONNA GRACE SIEVERS CUSTOMER REFUNDS 173004 05/14/18 411.17 ELEGANT CLINICAL CORPORATION CUSTOMER REFUNDS 173005 05/14/18 22.57 EVE GHISLAINE ROLANDE GALLAND CUSTOMER REFUNDS 173006 05/14/18 913.11 FREDERIC E SCHLUTER III CUSTOMER REFUNDS 173007 05/14/18 78.13 FREDIS ORLANDO CAMPOS AGUIRRE CUSTOMER REFUNDS 173008 05/14/18 36.13 GRACE ELIZABETH CALLEJA CUSTOMER REFUNDS 173009 05/14/18 70.77 GREGORY BRIAN DIBBLE CUSTOMER REFUNDS 173010 05/14/18 727.40 HABANA KEY WEST LLC CUSTOMER REFUNDS 173011 05/14/18 568.30 HABANA KEY WEST LLC CUSTOMER REFUNDS 173012 05/14/18 256.58 HABANA KEY WEST LLC CUSTOMER REFUNDS 173013 05/14/18 37.62 HANNAH ERON TAYLOR CUSTOMER REFUNDS 173014 05/14/18 567.58 HAVANA KEY WEST LLC CUSTOMER REFUNDS 173015 05/14/18 84.46 IRA J WEISINGER CUSTOMER REFUNDS 173016 05/14/18 30.97 ISLAND WEST INVESTMENT CORP CUSTOMER REFUNDS 173017 05/14/18 75.27 JAMIE LYN BLACHE CUSTOMER REFUNDS 173018 05/14/18 1.27 JEFFREY FLORESCA CUSTOMER REFUNDS 173019 05/14/18 66.92 JOHN C MORRIS III CUSTOMER REFUNDS 173020 05/14/18 558.19 JOHN D VERGHESE CUSTOMER REFUNDS 173021 05/14/18 369.23 JORGE ANTONIA AGUINAGA CUSTOMER REFUNDS 173022 05/14/18 3,879.86 JOYCE DEBORAH EMANUEL KOHEN CUSTOMER REFUNDS 173023 05/14/18 24.82 LAS SALINAS CONDO ASSOC CUSTOMER REFUNDS 173024 05/14/18 311.68 LAURA ANN HARRIS CUSTOMER REFUNDS 173025 05/14/18 531.37 LAURAMAR I LIMITED PARTNERSHIP CUSTOMER REFUNDS 173026 05/14/18 120.77 LAZY DOG ADVENTURES LLC CUSTOMER REFUNDS 173027 05/14/18 62.64 LEE DRYWALL INC CUSTOMER REFUNDS 173028 05/14/18 3.47 LOWER KEYS TACKLE LLC CUSTOMER REFUNDS 173029 05/14/18 515.43 LOWER KEYS TACKLE LLC CUSTOMER REFUNDS 173030 05/14/18 97.76 LUTHER STEWART ACKISS CUSTOMER REFUNDS 173031 05/14/18 156.97 LWK ASSOCIATES OF FLORIDA LLC CUSTOMER REFUNDS 173032 05/14/18 189.10 NIKKI B CAMERON CUSTOMER REFUNDS 173033 05/14/18 11.89 PRCP KEY WEST I LLC CUSTOMER REFUNDS 173034 05/14/18 22.52 PRCP KEY WEST I LLC CUSTOMER REFUNDS 173035 05/14/18 45.94 RACHELE MARIE ANGELOTTI CUSTOMER REFUNDS 173036 05/14/18 100.44 RICHARD P GRIFFITH CUSTOMER REFUNDS 173037 05/14/18 67.03 ROBERTY DARNELL ROBINSON JR CUSTOMER REFUNDS 173038 05/14/18 160.35 RUDOLPH GERALD KRAUSE CUSTOMER REFUNDS 173039 05/14/18 137.32 SANDRA L GORDON CUSTOMER REFUNDS 173040 05/14/18 269.89 SFI OF THE KEYS INC CUSTOMER REFUNDS 173041 05/14/18 332.54 SHAWN MCDONOUGH CUSTOMER REFUNDS 173042 05/14/18 229.98 SHERWOOD CONSTRUCTION INC CUSTOMER REFUNDS 173043 05/14/18 247.98 SHERWOOD CONSTRUCTION INC CUSTOMER REFUNDS 173044 05/14/18 34.93 TERANCE EDWARD KEENAN CUSTOMER REFUNDS 173045 05/14/18 560.48 UNITED PENTECOSTAL CHURCH CUSTOMER REFUNDS 173046 05/14/18 96.20 VARIETY CHILDRENS HOSPITAL CUSTOMER REFUNDS 173047 05/14/18 44.21 ZDENEK REHANEK CUSTOMER REFUNDS 173048 05/15/18 19.08 JAMES DONALD PARKS JR CUSTOMER REFUNDS 173049 05/17/18 2,599.25 AFFINITY APPAREL APPAREL/UNIFORM SERVICES 173050 05/17/18 2,880.00 AMERICAN CASTING METER SUPPLIES 173051 05/17/18 883.40 ANIXTER INC DISTRIBUTION/ HURRICANE ITEM
173052 05/17/18 3,664.11 AT&T TELEPHONE EXPENSE 173053 05/17/18 1,088.25 BARNES ALARMS SUBSTATION MATERIALS 173054 05/17/18 1,271.54 BENEFITS WORKSHOP EMPLOYEE & RETIREE BENEFITS 173055 05/17/18 41,256.95 COLONY HARDWARE MATERIALS/ TOOLS 173056 05/17/18 33.53 COMCAST CABLE SERVICES 173057 05/17/18 1,950.00 DISCOUNT ROCK AND SAND DISPOSAL SERVICES 173058 05/17/18 141.36 FISHER SCIENTIFIC SAFETY 173059 05/17/18 516.52 FLORIDA KEYS AQUEDUCT AUTHORITY WATER-SEWER 173060 05/17/18 3,721.00 FLORIDA KEYS MEDIA ADVERTISING 173061 05/17/18 1,504.08 GRAINGER FACILITIES SERVICES / SAFETY 173062 05/17/18 1,099.49 GRAYBAR MATERIALS 173063 05/17/18 2,763.62 JOHNSON CONTROLS REPAIRS 173064 05/17/18 426.37 KEY WEST RESORT UTILITIES CORP WATER-SEWER 173065 05/17/18 62.95 MCI TELECOMMUNICATIONS TELEPHONE EXPENSE 173066 05/17/18 892.50 NEARSHORE ELECTRIC INC REPAIRS 173067 05/17/18 499.50 PHSI FACILITIES SERVICES 173068 05/17/18 15.00 POWER DELIVERY PROGRAM, INC. TRAINING 173069 05/17/18 333.00 RADIO RITMO ADVERTISING 173070 05/17/18 516.00 SAFETY HARBOR RESORT & SPA TRAVEL 173071 05/17/18 4,853.96 TRAFFIC MANAGEMENT SOLUTIONS REPAIRS 173072 05/17/18 613.19 VERIZON WIRELESS TELEPHONE EXPENSE Total O&M 195,382.46
RR EFT Payments 38 05/10/18 64,024.00 ELECTRIC SUPPLY INC TRANSFORMERS 39 05/17/18 134,739.00 GEMSTONE, LLC. TRANMISSION CONTRACTOR 40 05/17/18 59,280.00 LIFETIME DOCK & LUMBER INC. LABOR, EQUIPMENT
Total EFT R&R 258,043.00
RR Payments 20059 05/17/18 17,420.00 GRESCO CAPSTONE UTIL SUPPLY INC TRANSFORMERS
Total R&R 17,420.00
Check # Vendor Name Reason
Code Check Date Check Amount 1 171903 JAMES DONALD PARKS JR A 12/12/17 19.08
Total O&M CK 19.08
REF OM WIRE Vendor Name Reason
Code Check Date Check Amount
Total O&M WR 0.00
REF OM EFT Vendor Name Reason
Code Check Date Check Amount Total OM EFT 0.00
Total O&M 19.08 Vendor Name
REF RR Check
# Reason
Code Check Date Check Amount 2 20060 LIFETIME DOCK & LUMBER INC D 5/17/2018 $59,290.00
TOTAL FOR O&M, RR and EFT $59,309.08 Reason Code: A Cust/Vendor did not receive, lost check or staledate, stop payment search performed and ck replaced B Wrong vendor entered into system and detected when matching check with invoice C Customer service processed a work ticket requesting check to be voided (i.e. deposit
should have been transferred and not refunded, change of name, etc.) D Wrong amount E Printed check in error, should not be paid at this time F Vouched in error G Research performed on stale dated checks/Abandened Property H Other
Utility Board Meeting 05/23/18 Voided Payment List
Utility Board of the City of Key West, FL
Proposer: Peter Batty, UB Chairman Department: Utility Board Agenda Item #: 8c
AGENDA ITEM WORDING: Request for Excused Absence for Chairman Peter Batty from the May 9, 2018 Regular Utility Board Meeting. REQUESTED ACTION: Approve Request for Excused Absence for Chairman Peter Batty from the May 9, 2018 Regular Utility Board Meeting.
Proposer: Lynne E. Tejeda, General Manager & CEO Department: Executive
Agenda Item #:9a
AGENDA ITEM WORDING: Approve Update to Hiring Replacements for Pending Retirements Policy REQUESTED ACTION: Motion to Approve the Updated Hiring Replacements for Pending Retirements Policy DISCUSSION: During the Strategic Planning workshop in 2016, the Utility Board discussed the number of KEYS employees who would become eligible for retirement in the next five years. The Board specifically identified Goal #3 as Maintain a highly effective workforce and foster a positive working environment and Strategy #3.1 Develop and Implement a plan regarding the aging workforce and pending retirements. On October 24, 2017 the Utility Board adopted the policy – Hiring Replacements for Pending Retirements – granting the General Manager & CEO the authority to temporarily increase the headcount under specific circumstances to specifically allow for a period of overlap between a retiring/resigning employee and his/her successor. Staff has identified a need to update the policy to grant the General Manager & CEO authority to increase the headcount by one for up to fifteen months to address anticipated vacancies that could create an undue hardship in any section/department. SUPPORTS STRATEGIC PLAN: Goal #3: Maintain a highly effective workforce and foster a positive working environment; Strategy #3.1 Develop and Implement a plan regarding the aging workforce and pending retirements. FINANCIAL IMPACT
Total Cost: TBD Budgeted:
Keys Energy Services Hiring Replacements for Pending Retirements
Background KEYS Strategic Plan for 2017 & 2018 has a Goal: Maintain a highly effective workforce and foster a positive working environment; further it includes a strategy: Develop and implement a plan regarding the aging workforce and pending retirements. Approximately one third of KEYS entire workforce will be eligible for retirement between 2017 and 2022. This policy is designed to ease the transition between a retiring employee and the replacement. As part of the Utility Board’s Annual Budget approval, an authorized headcount is established. The General Manager & CEO does not exceed the authorized number of budgeted positions without Utility Board approval. Policy This policy authorizes the General Manager & CEO to temporarily increase the authorized number of budgeted positions without Utility Board action for the specific purpose of preparing for a known, pending vacancy when needed. Requirements: The policy can be used when:
1) An employee has submitted a retirement/resignation notice with a specific date which has been approved by the General Manager and CEO and that employee’s position (or a new position) will be filled.
2) The new hire must be placed in an existing position with an approved salary scale.
3) The temporary increase in position(s) cannot increase the overall headcount by more than 10% of the Utility Board budgeted/authorized headcount.
4) No position should be filled more than four months prior to the retirement day unless there is an extenuating circumstance as determined by the General Manager & CEO.
Criteria When filling a position that will become vacant due to a pending retirement or resignation, the General Manager & CEO will consider the following issues:
o Number of employees in the classification o Number of apprentices close to completing apprenticeship o Length of time required for a new employee to become functional in the
position o Difficulty in hiring a qualified individual
To aid in determining an appropriate length of overlap of time between the current employee and employee being hired to replace the retiring/resigning employee, the following scale will be used: Overlap of no more than four months 17-20 points Overlap of no more than two months 13-16 points Overlap of no more than one month 9-12 points Overlap of no more than 2 weeks 0-8 points
1) How many positions are within this classification? 1 5 points 2-3 3 points 4 or more 1 point
2) How difficult is this position to recruit? Difficult 5 points Normal 3 points Easy 1 point
3) How long does it take for a new employee to become reasonably functional in
this position? > 6 months 5 points 2-6 months 3 points <2 months 1 point
4) For positions that have an apprenticeship program, how many journeyman positions in the classification are filled?
< 50% 5 points 51-74% 3 points >75% 1 point OR For positions that do not have an apprenticeship program, does this position require significant experience, education, certification or completion of a multi-year apprenticeship? Yes (more than 3 years) 5 points Yes (less than 3 years) 3 points No 1 point
This policy is established to keep workforce levels appropriate and to provide adequate time for departing employees to assist in training new employees. In addition to the Requirements and Criteria set forth above, this policy further grants the General Manager & CEO authority to increase the overall headcount by one position for up to fifteen months to address anticipated vacancies that could create an undue hardship in any given section/department. Use of the policy is at the General Manager’s discretion. The policy does not create any requirement to post and fill positions. Revision History Issue Number Reason for issue Revised by Issue date Effective Date KEYS- Initial Creation 10/25/2017 10/25/2017 Update Utility Board 5/23/2018 5/24/2018
Proposer: Lynne E. Tejeda, General Manager & CEO Department: Finance - Accounting
Agenda Item #: 9b
AGENDA ITEM WORDING: Approve Resolution #813 – A Resolution Amending the Plan Document, Article Four, Retirement Benefits Section 4.09 REQUESTED ACTION: Motion to Approve Resolution #813 – A Resolution Amending the Plan Document, Article Four, Retirement Benefits Section 4.09, Benefit Adjustments, to Clarify that Beneficiaries Will Receive the Cost of Living Adjustment so as to Conform to the Long-Standing Practice of the Retirement Board DISCUSSION: At the regular Pension meeting of May 15, 2018, the Pension Board of Trustees approved Resolution # 86 which added the words “and beneficiaries” to the following sentence:
Commencing January 1, 2001, and every calendar year thereafter, benefits being paid to retirees and beneficiaries of the System will be increased by three percent (3%).
In practice, beneficiaries have received the same three percent COLA that retirees receive. The purpose of the Resolution is to formalize the long- standing practice. FINANCIAL IMPACT:
Total Cost: N/A Budgeted: N/A Source of Funds: N/A

RESOLUTION NO. 813
A RESOLUTION OF THE UTILITY BOARD OF THE CITY OF KEY WEST RATIFYING RESOLUTION NO. 86 AMENDING THE PLAN DOCUMENT, ARTICLE FOUR, RETIREMENT BENEFITS SECTION 4.09, BENEFIT ADJUSTMENTS, TO CLARIFY THAT BENEFICIARIES
WILL RECEIVE THE COST OF LIVING ADJUSTMENT SO AS TO CONFORM THE PLAN DOCUMENT TO THE LONG-STANDING PRACTICE OF THE RETIREMENT BOARD.
WHEREAS, the Pension Board of Trustees and the Utility Board of the City of Key West, Florida adopted the Retirement System for the General Employees of the City Electric System (hereinafter called the “Plan”) September 28, 1983; and
WHEREAS, the Utility Board, in accordance with the provisions of Article Nine of the Plan reserved the right to amend or terminate the Plan at any time, provided, however, that the amendment or termination shall not deprive any member of his vested equity in the Plan or any assets of the Trust except as specifically provided in the Plan; and
WHEREAS, the Pension Board of Trustees of the Utility Board of the City of Key West, Florida, is aware that Section 4.09 may contain an ambiguity and is desirous of clarifying that ambiguity and amending Article Four to conform the policy to the long-standing practice; and
WHEREAS, the Pension Board of Trustees of the Utility Board of the City of Key West,
Florida approved Resolution 86 Amending The Plan Document, Article Four, Retirement Benefits Section 4.09, Benefit Adjustments, To Clarify That Beneficiaries Will Receive The Cost Of Living Adjustment So As To Conform The Plan Document To The Long-Standing Practice Of The Retirement Board
NOW, therefore, be it resolved by the Utility Board of the City of Key West, Florida,
in session duly assembled; Section 1. THAT Article 4, Section 4.09 Benefit Adjustments shall provide as follows:
Benefits Adjustments. Commencing January 1, 2001, and every calendar year thereafter, benefits being paid to retirees and beneficiaries of the System will be increased by three percent (3%). Should recommendations from the System’s actuarial or financial advisors determine that that this cost of living adjustment needs to be eliminated or decreased, it shall be within the discretion of the Trustees to do so. If a retiree begins receiving retirement benefits on January 1, the retiree will receive the cost of living adjustment set forth in this Section effective the same January 1 on which he retired.
PASSED AND APPROVED THIS 23 DAY OF May 2018 (Seal) ____________________________ Peter Batty, Sr., Chairman ATTEST: __________________________________________ Lynne E. Tejeda, General Manager & CEO/Secretary
Proposer: Lynne E. Tejeda, General Manager & CEO Department: Finance-Accounting
Agenda Item 9c
AGENDA ITEM WORDING: Accept Actuarial Valuation Report as of January 1, 2018, and Approve the Pension Contribution Percentage. REQUESTED ACTION: Motion to Accept Actuarial Valuation Report as of January 1, 2018, and Approve the Pension Contribution Percentage of 44.3%. DISCUSSION: The attached Actuarial Valuation Report as of January 1, 2018, calculates a minimum payment for the calendar year of 2018 of $4,079,176.00 or 44.3% of covered payroll compared to $3,946,896.00 or 40.8% of covered payroll in the prior year. The level percentage of payroll method is used to determine this calculation. During 2017:
the plan experienced an actuarial gain of $628,492.00 pay increases averaged 5.5% compared to an assumption of 5.6% member turnover was 20% of expected turnover investments had a smoothed actuarial value return of 8.6% against the 7.5%
assumption
Market Value of Assets/Actuarial Accrued Liability 78.6% 72.2% Smoothed Actuarial Value of Assets/Actuarial Accrued Liability 76.9% 75.3%
Vested Benefit Security Ratio: 85.1% 78.7%
Plan Fiduciary Net Position Projected 12/31/18
Actual 12/31/17
As a percentage of Total Pension Liability 79.8% 78.8%
Due to vacancies in budgeted positions, the FY18 budget is sufficient to fund the required contribution. A true up payment is required in the amount $85,351.59.00, for the period 1/1/18 – 3/31/18, where the contribution rate was based on the prior year rate of 40.8% compared to the required contribution rate of 44.3%. FINANCIAL IMPACT:
Total Cost CY 18: $4,079,176.00 FMPA to reimburse KEYS: $348,886.00
Budgeted: YES Source of Funds: O&M 1-XX-560962-60-00000, 1-XX-580962-60-00000, 1-XX-903962-60-00000, 1-XX-926200-60-00000
April 5, 2018 Pension Board c/o Mr. Jack Wetzler Assistant General Manager and
Chief Financial Officer Utility Board of the City of Key West 1001 James Street Key West, Florida 33041-6100 Re: January 1, 2018 Actuarial Valuation Dear Jack: As requested, we are pleased to enclose two (2) copies of the January 1, 2018 Actuarial Valuation Report for the Retirement System for General Employees of the Utility Board of the City of Key West. We appreciate the opportunity to work with the Board on this important project. We look forward to presenting the key financial results of our Actuarial Valuation Report at the May 15th Pension Board Meeting. As you are aware, the State issued a Memorandum on January 20, 2017 announcing the activation of their new online reporting portal for pension plans. Upon approval of this Actuarial Valuation Report, we will upload a copy of the Actuarial Valuation Report along with the newly required disclosure information as required by the State. If you should have any questions concerning the above, please do not hesitate to contact us. Sincerest regards,
Lawrence F. Wilson, A.S.A. Senior Consultant and Actuary Enclosures cc: Mr. Harry L. Bethel, Chairman
RETIREMENT SYSTEM FOR GENERAL EMPLOYEES OF THE UTILITY BOARD OF THE CITY OF KEY WEST Actuarial Valuation as of January 1, 2018
This Valuation Determines the Annual Contribution for the System Year January 1, 2018 through December 31, 2018 to be Paid in the Calendar Year Ending December 31, 2018 April 5, 2018
Retirement System for General Employees of the
Utility Board of the City of Key West
TABLE OF CONTENTS
Commentary 1
I. Summary of Retirement System Costs ...................................................................... 6 II. Comparison of Cost Data of Current and Prior Valuations ........................................ 9 III. Characteristics of Participants in Actuarial Valuation .............................................. 10 IV. Statement of Assets ................................................................................................. 11 V. Reconciliation of System Assets ............................................................................... 12 VI. Actuarial Gain / (Loss) for System Year .................................................................... 14 VII. Amortization of Unfunded Actuarial Accrued Liability ............................................ 15 VIII. Accounting Disclosure Exhibit .................................................................................. 16 IX. Outline of Principal Provisions of the Retirement System ...................................... 27 X. Actuarial Assumptions and Actuarial Cost Methods Used ...................................... 31 XI. Reconciliation of System Participants ...................................................................... 35 XII. Distribution of System Participants by Attained Age Groups and Service Groups .. 36 XIII. Statistics for Participants Entitled to Deferred Benefits and Participants Receiving Benefits ................................................................................................... 37 XIV. Review of Compensation, Termination and Investment Return Experience .......... 38
XV. Utility Board Contribution Information ................................................................... 39
XVI. State Required Exhibit.............................................................................................. 40
XVII. Glossary .................................................................................................................... 44
April 5, 2018 Board of Trustees c/o Mr. Jack Wetzler Assistant General Manager and
Chief Financial Officer Utility Board of the City of Key West 1001 James Street Key West, Florida 33041-6100 Re: Retirement System for General Employees of the Utility Board of the City of Key West Dear Trustees: We are pleased to present our January 1, 2018 Actuarial Valuation Report for the Retirement System for General Employees of the Utility Board of the City of Key West (System). The purpose of this Report is to indicate appropriate contribution levels, comment on the actuarial stability of the System and to satisfy State requirements. Gabriel, Roeder, Smith & Company (GRS), as System actuary, is authorized by the Board of Trustees to prepare an annual actuarial valuation under Section 8.04(f) of the System. This Report consists of this commentary, detailed Tables I through XV, the State Required Exhibit on Table XVI and a Glossary on Table XVII. The Tables contain basic System cost figures plus significant details on the benefits, liabilities and experience of the System. We suggest you thoroughly review the Report at your convenience and contact us with any questions that may arise. Pension System Costs The minimum payment consists of payment of annual normal costs and amortization of the components of the unfunded actuarial accrued liability over various periods as prescribed by law. The minimum payment for fiscal year ending December 31, 2018 is 44.3% ($4,079,176) of covered payroll. The figure in parentheses is the System cost expressed as the percentage of covered annual payroll applied to projected covered payroll as of January 1, 2018 ($9,210,384). Changes in Actuarial Assumptions, Methods and System Benefits System benefits remain unchanged from the System benefits considered for the January 1, 2017 Actuarial Impact Statement. System benefits are summarized on Table IX. The actuarial assumptions and methods are unchanged from the January 1, 2017 Actuarial Valuation and Actuarial Impact Statement. The actuarial assumptions and methods are outlined on Table X.
Board of Trustees April 5, 2018 Page Two
Comparison of January 1, 2017 Actuarial Impact Statement and January 1, 2018 Valuation Results Table II of our Report provides information of a comparative nature. The right columns of the Table indicate the costs as calculated for the January 1, 2017 Actuarial Impact Statement. The left columns indicate the costs as calculated for January 1, 2018. Comparing the left and right columns of Table II shows the effect of System experience during the year. The number of active participants and covered payroll decreased by approximately 7% and 5%, respectively. Total normal cost decreased both as a percentage of covered payroll and as a dollar amount. The minimum funding requirement increased both as a percentage of covered payroll and as a dollar amount. The unfunded actuarial accrued liability increased as a percentage of covered payroll but decreased as a dollar amount. The present value of vested accrued benefits exceeds the market value of System assets. The Vested Benefit Security Ratio is 85.1%. This is an increase from 78.7% as of the January 1, 2017 Actuarial Impact Statement. The Vested Benefit Security Ratio is based upon the market value of assets. Table VII provides figures on recent System payroll growth experience. Recent System covered payroll growth experience indicates actual payroll growth averaged approximately 0.0% annually for the ten (10) fiscal years ended December 31, 2017. The payroll growth assumption is 3.0%, not in excess of the ten (10) year average annual payroll growth assumption. The cap on payroll growth assumption is provided under Florida Statute. The decrease in payroll growth assumption from 1.5% to 0.0% increased current year amortization payments. Actuarial Gains / (Losses) The System experienced an actuarial gain of $628,492 for 2017. Our Actuarial Valuation Report tracks the actual experience in three areas that are very significant in determining whether a gain or loss occurs. Table XIV presents compensation experience, tracks employee turnover and provides information on investment return. Table XIV provides statistics on increases in pay enjoyed by active System Members. During 2017, pay increases to active Members averaged 5.5%. Pay increases were slightly below the average pay increase assumption of 5.6%. This suggests pay increases were generally a source of actuarial gain this year. Three, five and ten-year average annual pay increases are 5.7%, 4.5% and 4.7%, respectively. In addition, Table XIV provides statistics for active System Members terminating service in comparison to the number of active System Members who were assumed to terminate under the withdrawal assumptions. Member turnover was 20% of expected turnover during 2017. This suggests employee turnover was generally an offsetting source of actuarial loss this year. Three,
Board of Trustees April 5, 2018 Page Three
five and ten-year average termination experience is 40%, 60% and 60% of expected turnover, respectively. Table XIV also provides comparative statistics on the investment experience for the System. During 2017, the System experienced a smoothed investment return of approximately 8.6%. Smoothed investment return exceeded the 7.5% anticipated rate of return. Smoothed investment return was an additional source of actuarial gain this year. The average smoothed actuarial value rate of return over the last three, five and ten-years is 8.1%, 9.5% and 6.0%, respectively. The corresponding one, three, five and ten-year average market value rates of return are 15.8%, 7.0%, 9.3% and 6.3%, respectively. Member Census and Financial Data
The Utility Board submitted the Member census data as of January 1, 2018 used for this valuation to us. This information contains name, Social Security number, date of birth, date of hire, current rate of pay and actual salary paid in 2017. Dates of termination and retirement are provided where applicable. The Utility Board updated information on inactive participants including retirees, beneficiaries and vested terminees. Name, Social Security number and January 1, 2018 monthly benefit payment were provided for these members. The Utility Board also supplied information on the assets of the System as of December 31, 2017. We do not audit the Member census data and asset information that is provided to us; however, we perform certain reasonableness checks. The System is responsible for the accuracy of the data. Summary In our opinion the benefits currently provided for under the System will be sufficiently funded through the payment of the amount as indicated in this and future Actuarial Valuation Reports. We will continue to update you on the future payment requirements for the System through our actuarial Reports. These Reports will also continue to monitor the future experience of the System. The actuarial assumptions used in this Actuarial Valuation are as adopted by the Board of Trustees. The demographic actuarial assumptions are based on the results of an actuarial experience study for the five-year period ended December 31, 2012. The mortality assumptions are prescribed by statute. Each assumption represents an estimate of future System experience. We recommend the Board authorize an Experience Study covering the five year period January 1, 2013 – December 31, 2017. If all actuarial assumptions are met and if all future minimum required contributions are paid, System assets will be sufficient to pay all System benefits, future contributions are expected to
Board of Trustees April 5, 2018 Page Four
remain relatively stable as a percentage of payroll and the funded status of the System is expected to improve. System minimum required contributions are determined in compliance with the requirements of the Florida Protection of Public Employee Retirement Benefits Act with normal cost determined as a level percent of covered payroll and a level percent amortization payment using an initial amortization period of 30 years. The Unfunded Actuarial Accrued Liability (UAAL) may not be appropriate for assessing the sufficiency of System assets to meet the estimated cost of settling benefit obligations but may be appropriate for assessing the need for or the amount of future contributions. The UAAL would be different if it reflected the market value of assets rather than the actuarial value of assets. The Unfunded Actuarial Present Value of Vested Accrued Benefits and the corresponding Vested Benefit Security Ratio may be appropriate for assessing the sufficiency of System assets to meet the estimated cost of settling benefit obligations but may not be appropriate for assessing the need for or the amount of future contributions. The Unfunded Actuarial Present Value of Vested Accrued Benefits and the corresponding Vested Benefit Security Ratio are based upon the market value of assets. The GASB Net Pension Liability and System Fiduciary Net Position as a Percentage of Total Pension Liability may not be appropriate for assessing the sufficiency of System assets to meet the estimated cost of settling benefit obligations but may be appropriate for assessing the need for or the amount of future contributions. The GASB Net Pension Liability and System Fiduciary Net Position as a Percentage of Total Pension Liability are based upon the market value of assets. Future actuarial measurements may differ significantly from the current measurements presented in this Report due to such factors as the following: System experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period); and changes in System provisions or applicable law. Due to the limited scope of the actuary’s assignment, the actuary did not perform an analysis of the potential range of such future measurements. This Report should not be relied on for any purpose other than the purpose described in the primary communication. Determinations of the financial results associated with the benefits described in this Report in a manner other than the intended purpose may produce significantly different results. This Report has been prepared by actuaries who have substantial experience valuing public employee retirement systems. To the best of our knowledge the information contained in this Report is accurate and fairly presents the actuarial position of the System as of the valuation date. All calculations have been made in conformity with generally accepted actuarial principles and
Board of Trustees April 5, 2018 Page Five
practices, with the Actuarial Standards of Practice issued by the Actuarial Standards Board and with applicable statutes. This Report may be provided to parties other than the Board only in its entirety and only with the permission of an approved representative of the Board. The signing actuaries are independent of the System and Utility Board. The undersigned are Members of the American Academy of Actuaries and meet the qualification standards of the American Academy of Actuaries to render the actuarial opinions contained in this Report. We are available to respond to any questions with regards to matters covered in this Report. Very truly yours,
Lawrence F. Wilson, A.S.A., E.A. Senior Consultant and Actuary
Jennifer M. Borregard, E.A. Consultant and Actuary
Retirement System for General Employees of 0
the Utility Board of the City of Key West 6
Table I
Cost % of Cost % of Cost % of Cost % of Data Payroll Data Payroll Data Payroll Data Payroll
A. Participant Data Summary (Table III) 1. Active Employees 34 N/A 83 N/A 117 N/A 126 N/A 2. Terminated Vested 0 N/A 25 N/A 25 N/A 26 N/A 3. Receiving Benefits 0 N/A 187 N/A 187 N/A 180 N/A 4. Total Participants 34 N/A 295 N/A 329 N/A 332 N/A 5. Annual Payroll of Active Employees 2,403,214$ 100.0% 6,807,170$ 100.0% 9,210,384$ 100.0% 9,667,989$ 100.0%
B. Total Normal Costs
1. Age Retirement Benefits 195,645$ 8.1% 1,032,815$ 15.2% 1,228,460$ 13.3% 1,351,423$ 14.0% 2. Deferred Vesting Benefits 27,041 1.1% 122,137 1.8% 149,178 1.6% 156,418 1.6% 3. Death Benefits 17,160 0.7% 61,148 0.9% 78,308 0.9% 83,552 0.9% 4. Disability Benefits 8,573 0.4% 49,321 0.7% 57,894 0.6% 61,978 0.6% 5. Subtotal 248,419$ 10.3% 1,265,421$ 18.6% 1,513,840$ 16.4% 1,653,371$ 17.1% 6. Administrative Expenses N/A N/A 61,463 0.7% 66,981 0.7% 7. Total Annual Normal Costs N/A N/A 1,575,303$ 17.1% 1,720,352$ 17.8%
January 1, 2018 January 1, 2018 TotalMay 31, 2010 June 1, 2010 Total
January 1, 2018 January 1, 2017
Actuarial Impact Hired after Hired before
Summary of Retirement Plan Costs
Statement
Table I (Cont'd)
C. Total Actuarial Accrued Liability
1. Age Retirement Benefits Active Employees 31,584,721$ 342.9% 36,581,141$ 378.4% 2. Deferred Vested Benefits Active Employees 146,095 1.6% 145,024 1.5% 3. Death Benefits Active Employees 552,683 6.0% 563,210 5.8% 4. Disability Benefits Active Employees 884,752 9.6% 863,684 8.9% 5. Retired or Terminated Vested Participants
Receiving Benefits 73,502,686 798.0% 63,807,222 660.0% 6. Terminated Vested Participants Entitled to
Future Benefits 2,177,928 23.6% 2,032,022 21.0% 7. Deceased Participants Whose Beneficiaries
are Receiving Benefits 5,956,515 64.7% 6,249,854 64.6% 8. Disabled Participants Receiving Benefits 1,822,227 19.8% 1,808,865 18.7% 9. Total Actuarial Accrued Liability 116,627,607$ 1266.3% 112,051,022$ 1159.0%
D. Market Value of Assets (Table IV) 91,629,477$ 994.8% 80,916,572$ 837.0%
E. Smoothed Actuarial Value of Assets (Table V) 89,650,519$ 973.4% 84,366,073$ 872.6%
F. Unfunded Actuarial Accrued Liability (C-E) 26,977,088$ 292.9% 27,684,949$ 286.4%
G. Minimum Required Contribution
1. Total Normal Cost 1,575,303$ 17.1% 1,720,352$ 17.8% 2. Amortization of Unfunded Liability 2,356,433 25.6% 2,098,465 21.7% 3. Interest Adjustment 147,440 1.6% 143,206 1.5% 4. Total Payment 4,079,176$ 44.3% 3,962,023$ 41.0%
H. Actuarial Gain / (Loss) (Table VI) 628,492$ 6.8% 1,142,096$ 11.8%
Actuarial Impact Statement
Table I (Cont'd)
2. Terminated Vested Participants Entitled to Future Benefits 2,177,928 23.6% 2,032,022 21.0%
3. Active Participants Entitled to Future Benefits 24,233,076 263.1% 28,929,596 299.2% 4. Total Actuarial Present Value of Vested
Accrued Benefits 107,692,432$ 1169.3% 102,827,559$ 1063.6%
J. Unfunded Actuarial Present Value of Vested Accrued Benefits (I.4 - D., not less than zero) 16,062,955$ 174.4% 21,910,987$ 226.6%
K. Vested Benefit Security Ratio (D. ÷ I.4.) 85.1% N/A 78.7% N/A
Statement January 1, 2018 January 1, 2017
Actuarial Impact
Cost % of Annual Cost % of Annual Data Compensation Data Compensation
A. Participants 1. Active Employees 117 N/A 126 N/A 2. Terminated Vested 25 N/A 26 N/A 3. Receiving Benefits 187 N/A 180 N/A 4. Annual Payroll of Active Employees 9,210,384$ 100.0% 9,667,989$ 100.0%
B. Total Normal Costs 1,575,303$ 17.1% 1,720,352$ 17.8%
C. Total Actuarial Accrued Liability 116,627,607$ 1266.3% 112,051,022$ 1159.0%
D. Smoothed Actuarial Value of Assets 89,650,519$ 973.4% 84,366,073$ 872.6%
E. Unfunded Actuarial Accrued Liability 26,977,088$ 292.9% 27,684,949$ 286.4%
F. Net Minimum Funding Payment 4,079,176$ 44.3% 3,962,023$ 41.0%
G. Actuarial Gain / (Loss) 628,492$ 6.8% 1,142,096$ 11.8%
H. Unfunded Actuarial Present Value of Vested Accrued Benefits 16,062,955$ 174.4% 21,910,987$ 226.6%
I. Vested Benefit Security Ratio 85.1% N/A 78.7% N/A
Table II
Comparison of Cost Data of January 1, 2017 and January 1, 2018 Valuations
January 1, 2017January 1, 2018 Statement
Actuarial Impact
Table III
A. Active Plan Participants Summary
1. Active participants as of beginning of prior year 126 2. New entrants during prior year 6 3. Exits during prior year (15) 4. Active participants as of beginning of year 117 5. Active participants fully vested 71 6. Active participants partially vested 14 7. Active participants non-vested 32 8. Annual payroll of active participants 9,210,384$ 9. Average pay 78,721$
10. Average hire age 32.10 years 11. Average attained age 44.37 years 12. Percent female 34.2%
B. Characteristics of Inactive Participants
1. Inactives as of beginning of prior year 206 2. Newly inactive during prior year 15 3. Exits during prior year (9) 4. Inactives as of beginning of year 212 5. Age retirees 156 6. Projected annual benefits for age retirees 5,597,732$ 7. Beneficiaries of deceased participants 23 8. Projected annual benefits for beneficiaries 515,220$ 9. Disabled participants receiving benefits 8
10. Projected annual benefits for disabled participants 175,106$ 11. Terminated vested due deferred benefits 25 12. Projected annual benefits for terminated vested participants 226,047$
Actuarial Valuation as of January 1, 2018 Characteristics of Participants in
Table IV
- Asset Allocation Fund 4,595,531 - Vanguard Domestic Stock Mutual Fund 9,999,061 - Vanguard International Stock Mutual Fund 5,572,829 - Global Bond Mutual Fund 3,871,617 - International Growth Mutual Fund 5,736,510
International Equities 0 Common Stocks 41,301,730 Real Estate 8,065,772 Total Investments 91,078,187$
Receivables
Accrued Interest 93,208$ Pending Trades 86,857 Utility Board Contributions 4,373 Miscellaneous 408 Total Receivables 184,846$
Other - Prepaid Benefits and Expenses 497,290$
Liabilities
Accrued Benefits and Expenses 89,945$ Pending Trades 40,901 Total Liabilities 130,846$
Net Assets Available For Benefits 91,629,477$
* As reported on financial statements prepared by the Utility Board.
Statement of Assets as of January 1, 2018 *
Table V
A. Market Value of Assets as of January 1, 2017 80,916,572$
B. Receipts During Year
1. Utility Board contributions 3,860,513$
2. Interest, dividends and other (a) Dividends, interest and other 2,041,902$ (b) Investment fees 415,967 (c) Net dividends, interest and other [(a)-(b)] 1,625,935$
3. Realized gains / (losses) 3,046,506$
4. Unrealized gains / (losses) 7,962,098$
5. Net receipts during year 16,495,052$
C. Disbursements During Year
2. Contribution refunds 0
4. Total disbursements during year 5,782,147$
D. Market Value of Assets as of December 31, 2017 91,629,477$
* As reported on financial statements prepared by the Utility Board.
Reconciliation of Plan Assets *
Table V (Cont'd)
A. Preliminary smoothed actuarial value from prior year 79,640,645$ 84,366,073$ 89,650,519$
B. Market value end of year 80,916,572 91,629,477
C. Market value beginning of year 77,361,154 80,916,572 91,629,477
D. Non-investment net cash flow (1,534,669) (1,921,634)
E. Investment return 1. Total market value return: B. - C. - D. 5,090,087 12,634,539 2. Amount for immediate recognition (7.5%) 5,744,536 5,996,682 3. Amount for phased-in recognition: E.1. - E.2. (654,449) 6,637,857
F. Phased-in recognition of investment return 1. Current year: 20% of E.3. (130,890) 1,327,571 2. First prior year (1,289,693) (130,890) 1,327,571 3. Second prior year (359,272) (1,289,693) (130,890) 1,327,571 4. Third prior year 1,661,682 (359,272) (1,289,693) (130,890) 1,327,571 5. Fourth prior year 633,734 1,661,682 (359,273) (1,289,693) (130,889) 1,327,573 6. Total phased-in recognition of investment return 515,561 1,209,398 (452,285) (93,012) 1,196,682 1,327,573
G. Smoothed actuarial value end of year 1. Preliminary smoothed actuarial value end of year:
A. + D. + E.2. + F.6. 84,366,073 89,650,519 2. Upper corridor limit:120% of B. 97,099,886 109,955,372 3. Lower corridor limit: 80% of B. 64,733,258 73,303,582 4. Smoothed actuarial value end of year:
G.1., not more than G.2., nor less than G.3. 84,366,073 89,650,519
H. (3,449,501) 1,978,958
J. Market value rate of return 6.6% 15.8%
Development of Smoothed Actuarial Value of Assets as of December 31
Difference between market value and smoothed actuarial value
Table VI
1. Normal cost previous actuarial impact statement 1,720,352$ 2. Unfunded actuarial accrued liability previous actuarial impact statement 27,684,949 3. Utility Board contributions 3,860,513 4. Interest on:
(a) Normal cost 129,026$ (b) Unfunded actuarial accrued liability 2,076,371 (c) Utility Board contributions 144,605 (d) Net total: (a) + (b) - (c) 2,060,792$
5. Expected unfunded actuarial accrued liability current year: (1. + 2. - 3. + 4.) 27,605,580$
6. Actual unfunded actuarial accrued liability current year 26,977,088 7. Actuarial gain / (loss): (5. - 6.) 628,492$
B. Approximate Portion of Gain / (Loss) due to Investments
1. Smoothed actuarial value of assets previous year 84,366,073$ 2. Contributions during year 3,860,513 3. Benefits and administrative expenses during year 5,782,147 4. Expected appreciation for period 6,255,230 5. Expected smoothed actuarial value of assets current year:
(1. + 2. - 3. + 4.) 88,699,669$ 6. Actual smoothed actuarial value of assets current year 89,650,519$ 7. Approximate gain / (loss) due to investments: (6. - 5.) 950,850$
C. Approximate Portion of Gain / (Loss) due to Liabilities: A.7. - B.7. (322,358)$
System Year Ended December 31, 2017 Actuarial Gain / (Loss) for
Table VII
Unfunded Amortization Date Liability Payment
… …
B. Covered Payroll History
Covered Annual Date Payroll Increase
January 1, 2018 9,210,384$ (4.7%) January 1, 2017 9,667,989$ 4.5% January 1, 2016 9,247,710$ 2.2% January 1, 2015 9,046,826$ (1.9%) January 1, 2014 9,226,528$ (3.5%)
January 1, 2013 9,558,105$ (1.1%) January 1, 2012 9,667,272$ (3.4%) January 1, 2011 10,005,398$ (0.2%) January 1, 2010 10,024,867$ 2.5% January 1, 2009 9,782,010$ 6.3%
January 1, 2008 9,202,549$ N/A
Ten-Year Average Annual Increase 0.0%
Amortization of Unfunded Actuarial Accrued Liability
Table VIII
Statement Valuation 01/01/2018 01/01/2017 01/01/2017
I. Number of System Members 1. Retirees and beneficiaries receiving benefits 187 180 180 2. Terminated System members entitled to but not yet
receiving benefits 25 26 26 3. Active System members 117 126 126 4. Total 329 332 332
II. Financial Accounting Standards Board Allocation As of January 1, 2018
A. Statement of Accumulated System Benefits 1. Actuarial present value of accumulated vested System
benefits a. Participants currently receiving benefits 81,281,428$ 71,865,941$ 71,865,941$ b. Other participants 26,411,004 30,961,618 30,860,723 c. Total 107,692,432$ 102,827,559$ 102,726,664$
2. Actuarial present value of accumulated non-vested System benefits 743,631$ 892,334$ 889,500$
3. Total actuarial present value of accumulated System benefits 108,436,063$ 103,719,893$ 103,616,164$
B. Statement of Change in Accumulated System Benefits 1. Actuarial present value of accumulated System benefits
as of January 1, 2017 103,616,164$ 2. Increase / (decrease) during year attributable to:
a. System amendment 103,729$ b. Change in actuarial assumptions 0 c. Benefits paid (5,723,180) d. Other, including benefits accumulated, increase
for interest due to decrease in the discount period 10,439,350 e. Net increase 4,819,899$
3. Actuarial present value of accumulated System benefits as of January 1, 2018 108,436,063$
C. Significant Matters Affecting Calculations 1. Assumed rate of return used in determining actuarial
present values 7.5% 2. Change in System provisions See Table IX. Item N. 3. Change in actuarial assumptions
Accounting Disclosure Exhibit
Table VIII (Cont'd)
III. Net Pension Liability and Related Ratios (GASB No. 67 & No. 68) Projected
Measurement date 12/31/2018 * 12/31/2017 12/31/2016 12/31/2015 12/31/2014
A. Total Pension Liability Service Cost 1,513,840$ 1,653,371$ 1,689,246$ 1,615,566$ 1,688,924$ Interest 8,621,402 8,313,210 8,043,700 7,503,157 7,233,694 Benefit Changes 0 132,646 0 0 0 Difference Between Actual and Expected Experience 333,184 (756,398) 465,515 (399,487) (552,616) Assumption Changes 0 113,197 2,800,797 0 3,883,996 Benefit Payments, including Refunds of Member Contributions (6,378,830) (5,723,180) (5,462,925) (5,040,021) (4,673,833) Net Change in Total Pension Liability 4,089,596$ 3,732,846$ 7,536,333$ 3,679,215$ 7,580,165$ Total Pension Liability (TPL) - (beginning of year) 116,294,423 112,561,577 105,025,244 101,346,029 93,765,864 Total Pension Liability (TPL) - (end of year) 120,384,019$ 116,294,423$ 112,561,577$ 105,025,244$ 101,346,029$
B. System Fiduciary Net Position Contributions - System Sponsor 4,079,176$ 3,860,513$ 3,986,227$ 3,653,199$ 3,511,645$ Contributions - Member 0 0 0 0 0 Net Investment Income 6,783,669 12,634,539 5,090,087 (550,552) 3,909,304 Benefit Payments, including Refunds of Member Contributions (6,378,830) (5,723,180) (5,462,925) (5,040,021) (4,673,833) Administrative Expenses (61,463) (58,967) (57,971) (67,452) (75,519) Other 0 0 0 0 0 Net Change in System Fiduciary Net Position 4,422,552$ 10,712,905$ 3,555,418$ (2,004,826)$ 2,671,597$ System Fiduciary Net Position - (beginning of year) 91,629,477 80,916,572 77,361,154 79,365,980 76,694,383 System Fiduciary Net Position - (end of year) 96,052,029$ 91,629,477$ 80,916,572$ 77,361,154$ 79,365,980$
C. Net Pension Liability (NPL) - (end of year): (A) - (B) 24,331,990$ 24,664,946$ 31,645,005$ 27,664,090$ 21,980,049$
D. System Fiduciary Net Position as a Percentage of TPL: (B) / (A) 79.79 % 78.79 % 71.89 % 73.66 % 78.31 %
E. Covered Employee Payroll ** 9,210,384$ 9,462,044$ 9,291,906$ 9,319,386$ 8,958,281$
F. NPL as a Percentage of Covered Employee Payroll: (C) / (E) 264.18 % 260.67 % 340.57 % 296.84 % 245.36 %
G. Notes to Schedule: 01/01/2018 01/01/2017 01/01/2016 01/01/2015 01/01/2014 09/30/2019 09/30/2018 09/30/2017 09/30/2016 09/30/2015
* Projected - actual amounts will be available after System year end
** Reported payroll on which contributions to the System are based as provided under GASB No. 82
See Notes to Schedule of Contributions for a history of assumption changes and benefit changes.
Valuation Date
Update procedures used to roll forward TPL to the measurement dates.
Reporting Date (GASB No. 68)
Table VIII (Cont'd)
Ended 12/31 Contribution Contribution (Excess) Payroll 1 Covered Payroll
2008 2,537,303$ 2,537,303$ 0$ 9,104,074$ 27.87%
2009 3,318,721 3,318,721 0 9,790,423 33.90%
2010 3,045,252 3,103,795 (58,543) 9,729,240 31.90%
2011 3,174,884 3,174,884 0 9,562,205 33.20%
2012 3,356,361 3,356,361 0 9,312,610 36.04%
2013 3,628,209 3,628,209 0 9,162,598 39.60%
2014 3,511,645 3,511,645 0 8,958,281 39.20%
2015 3,653,199 3,653,199 0 9,319,386 39.20%
2016 3,986,227 3,986,227 0 9,291,906 42.90%
2017 3,860,513 3,860,513 0 9,462,044 40.80%
2018 2 4,079,176 4,079,176 0 9,210,384 44.29%
1 Reported payroll on which contributions to the System are based as provided under GASB No. 82 2 Projected - actual amounts will be available after fiscal year end
Table VIII (Cont'd)
Actuarially Contribution Actual Contribution Fiscal Year Determined Actual Deficiency Covered as a % of End 9/30 Contribution Contribution (Excess) Payroll 1 Covered Payroll
2008 2,518,689$ 2,518,689$ 0$ 8,962,721$ 28.10%
2009 3,123,367 3,123,367 0 9,618,836 32.47%
2010 3,113,619 3,172,162 (58,543) 9,744,536 32.55%
2011 3,142,476 3,142,476 0 9,603,964 32.72%
2012 3,310,992 3,310,992 0 9,375,009 35.32%
2013 3,560,247 3,560,247 0 9,200,101 38.70%
2014 3,540,786 3,540,786 0 9,009,360 39.30%
2015 3,617,811 3,617,811 0 9,229,110 39.20%
2016 3,902,970 3,902,970 0 9,298,776 41.97%
2017 3,891,942 3,891,942 0 9,419,510 41.32%
2018 2 4,024,510 4,024,510 0 9,273,299 43.40%
1 Based on prorated calendar year pay 2 Projected - actual amounts will be available after fiscal year end
Table VIII (Cont'd)
VI. Notes to Schedule of Contributions (GASB No. 67 & No. 68)
Valuation Date:
Methods and Assumptions Used to Determine Contribution Rates: Actuarial Cost Method Amortization Method Amortization Period Asset Valuation Method Inflation Salary Increases Investment Rate of Return 7.5% Payroll Growth Assumption
Retirement Age
Cost-of-Living Increases 3.0%
Actuarially determined contributions are calculated using a valuation date as of the beginning of the plan year (each January 1st).
Entry Age
For disabled male participants, RP 2000 Disabled Male Mortality Table, setback four years, without projected mortality improvements. For disabled female participants, RP 2000 Disabled Female Mortality Table, set forward two years, without projected mortality improvements.
30 years 5-year smoothed market 2.75% 4.5% - 10.0%
Experience-based table of rates that are specific to the type of eligibility condition For healthy male participants during employment, RP 2000 Combined Male Healthy Participant Mortality Table, with 50% White Collar / 50% Blue Collar Adjustment and fully generational mortality improvements projected to each future decrement date with Scale BB. For healthy female participants during employment, RP 2000 Combined Female Healthy Participant Mortality Table, with White Collar Adjustment and fully generational mortality improvements projected to each future decrement date with Scale BB.
Level Percentage of Pay, Closed
3.0% per year, but limited to average annual increase over most recent ten years (1.5%).
For healthy male participants post employment, RP 2000 Annuitant Male Mortality Table, with 50% White Collar / 50% Blue Collar Adjustment and fully generational mortality improvements projected to each future decrement date with Scale BB. For healthy female participants post employment, RP 2000 Annuitant Female Mortality Table, with White Collar Adjustment and fully generational mortality improvements projected to each future decrement date with Scale BB.
Table VIII (Cont'd)
VI. Notes to Schedule of Contributions (GASB No. 67 & No. 68) (cont'd)
Other Information:
VII. Discount Rate (GASB No. 67 & No. 68)
A discount rate of 7.5% was used to measure the TPL. This discount rate was based on the expected rate of return on System investments of 7.5%. The projection of cash flows used to determine this discount rate assumed member contributions will be made at the current contribution rate and employer contributions will be made at rates equal to the difference between actuarially determined current contribution rates and the member contribution rate. Based on these assumptions, the pension System's fiduciary net position was projected to be available to make all projected future expected benefit payments of current System members. Therefore, the long-term expected rate of return on System investments was applied to all periods of projected benefit payments to determine the TPL.
Assumption Changes 2017: Pre-retirement mortality was updated. 2016: Mortality rates updated. 2014: Investment return updated from 8.0% to 7.5%; withdrawal, salary increase and retirement rates updated. 2009: Mortality, withdrawal, salary increase and retirement rates updated; assumption for child beneficiaries added for pre-retirement death benefits.
2017: Effective October 25, 2017 for Members under Career Average Compensation and on January 1, 2020 for Members under Final Average Compensation, Compensation means a Member’s base compensation (hourly rate in effect each pay period multiplied by the corresponding hours earned during that pay period). However, Compensation shall not include overtime (except as necessary to not penalize Members assigned to work 12-hour shifts), commissions, bonuses, expense allowances and any hours that are considered leave without pay. For Members under Final Average Compensation, effective January 1, 2020, the average annual Compensation earned by a Member during the highest 10,440 hours out of the last 20,880 hours of service (which shall be determined using the highest 130.5 payroll periods of the last 261 payroll periods) immediately preceding termination of service or retirement. 2011: New benefit structure added for employees hired on or after June 1, 2010 including career average earnings and 2.0% multiplier. 2009: Normal retirement eligibility updated to attainment of age 60 and completion of 10 years of credited service from attainment of age 60 if member enters System after November 13, 2008; pre-retirement death benefit for child beneficiaries end date extended from 21 years of age to 25 years of age provided the child is a full-time student in college or disabled under Social Security; actuarially equivalent joint and survivor with pop-up optional form of payment added.
Table VIII (Cont'd)
VIII. Sensitivity of the NPL to the Discount Rate Assumption (GASB No. 67 & No. 68) (cont'd)
Current 1% Decrease Discount Rate 1% Increase
Discount Rate 6.5% 7.5% 8.5% NPL 39,464,878$ 24,664,946$ 12,476,271$
Current 1% Decrease Discount Rate 1% Increase
Discount Rate 6.5% 7.5% 8.5% NPL 39,632,372$ 24,331,990$ 11,733,534$
* Projected - actual amounts will be available after System year end
Table VIII (Cont'd)
Pension Expense for Fiscal Year Ending September 30, 2018: 5,650,548$
Deferred Outflows Deferred Inflows of Resources of Resources
$ 165,183 $ 552,153 Changes of assumptions or other inputs 1,072,726 0
0 1,978,958
$ 3,059,382
Year ending 30-Sep Amount 2019 1,286,057$ 2020 3,467 2021 (1,255,153) 2022 (1,327,573) 2023 0
Thereafter 0
Summary of Outstanding Deferred Inflows and Outflows of Resources as of September 30, 2018
experience on liabilities
earnings on System investments
Summary of Deferred Outflows and Inflows of Resources to be Recognized in Pension Expense in Future Years
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions - Reporting Date (GASB No. 68)
Differences between actual and expected
Net difference between projected and actual
Projected Deferred Outflows for Utility Board Contributions to Be Recognized in Pension Expense for Fiscal Year Ending September 30, 2019:
Table VIII (Cont'd)
The following information is not required to be disclosed but is provided for informational purposes.
X. Components of Pension Expense (GASB No. 68) Projected
Measurement Date 12/31/2018 * 12/31/2017 12/31/2016 12/31/2015 12/31/2014
Service Cost 1,513,840$ 1,653,371$ 1,689,246$ 1,615,566$ 1,688,924$ Interest on Total Pension Liability 8,621,402 8,313,210 8,043,700 7,503,157 7,233,694 Current-Period Benefit Changes 0 132,646 0 0 0
0 0 0 0 0 Projected Earnings on System Investments (6,783,669) (5,996,682) (5,744,536) (5,897,913) (5,705,665) Administrative Expenses 61,463 58,967 57,971 67,452 75,519 Other Changes in System Fiduciary Net Position 0 0 0 0 0
934,737 1,036,752 1,938,318 884,669 1,009,509
452,285 452,284 1,779,855 1,648,965 359,272 Total Pension Expense 4,800,058$ 5,650,548$ 7,764,554$ 5,821,896$ 4,661,253$
* Projected - actual amounts will be available after measurement date
(Inflows) due to Liabilities
(Inflows) due to Assets
Table VIII (Cont'd)
XI. Recognition of Deferred Outflows and (Inflows) due to Liabilities - Measurement Date (GASB No. 68)
Established Initial Balance
Recognition Amount for 2017
Balance as of 12/31/2017
2014 0$ 3.3 0.0 0$ 0$ 2015 0 3.2 0.2 0 0 2016 465,515 3.1 1.1 150,166 165,183 2017 0 3.3 2.3 0 0
TOTAL 150,166$ 165,183$
2014 (552,616)$ 3.3 0.0 (50,239)$ 0$ 2015 (399,487) 3.2 0.2 (124,840) (24,967) 2016 0 3.1 1.1 0 0 2017 (756,398) 3.3 2.3 (229,212) (527,186)
TOTAL (404,291)$ (552,153)$
Recognition of Deferred Outflows due to Changes of Assumptions or Other Inputs
2014 3,883,996$ 3.3 0.0 353,092$ 0$ 2015 0 3.2 0.2 0 0 2016 2,800,797 3.1 1.1 903,483 993,831 2017 113,197 3.3 2.3 34,302 78,895
TOTAL 1,290,877$ 1,072,726$
Recognition of Deferred Outflows due to Differences Between Actual and Expected Experience on Liabilities
Recognition of Deferred (Inflows) due to Differences Between Actual and Expected Experience on Liabilities
Table VIII (Cont'd)
XI. Recognition of Deferred Outflows and (Inflows) Due to Liabilities - Measurement Date (GASB No. 68) (cont'd)
Recognition of Deferred (Inflows) due to Changes of Assumptions or Other Inputs
2014 0$ 3.3 0.0 0$ 0$ 2015 0 3.2 0.2 0 0 2016 0 3.1 1.1 0 0 2017 0 3.3 2.3 0 0
TOTAL 0$ 0$
XII. Recognition of Deferred Outflows / (Inflows) due to Assets - Measurement Date (GASB No. 68)
2014 1,796,361$ 5 1 359,272$ 359,273$ 2015 6,448,465 5 2 1,289,693 2,579,386 2016 654,449 5 3 130,890 392,669 2017 (6,637,857) 5 4 (1,327,571) (5,310,286)
TOTAL 452,284$ (1,978,958)$
Recognition of Deferred Outflows / (Inflows) due to Differences Between Projected and Actual Earnings on Pension Plan Investments
Retirement System for General Employees of 0 the Utility Board of the City of Key West 27
Table IX
F. Final Average Compensation:
The Utility Board shall contribute an amount which will be determined annually by decision of the Utility Board.
Credited service is service performed subject to a maximum of 30 years. However, any member with more than 30 years of credited service as of November 20, 1998 will be grandfathered under the prior 35 year cap.
Final average compensation (FAC) equals the average annual pensionable earnings earned during a period of the five highest years out of the last ten years of service immediately preceding retirement. Pensionable earnings are calculated using the member's base hourly rate each pay period, multiplied by 80 hours, less any hours that are considered leave without pay .
Effective January 1, 2020, FAC equals the average of the pensionable earnings earned by a member during the highest 10,440 hours out of the last 20,880 hours of service (which shall be determined using the highest 130.5 payroll periods of the last 261 payroll periods) immediately preceding termination of service or retirement. Pensionable earnings are calculated using the member's base hourly rate in effect each pay period, multiplied by the corresponding hours earned during that pay period, less any hours that are considered leave without pay or are otherwise excluded from pensionable earnings.
Outline of Principal Provisions of the Retirement Plan
April 9, 1954, as amended and restated as of October 25, 2017.
All regular and permanent employees of the Utility Board shall become members of the Plan immediately upon completion of probationary period. All regular and permanent employees of the Utility Board employed prior to October 2, 2003 became members of the Plan immediately upon employment. Elected Utility Board officials become members of the Plan immediately upon election.
Eliminated effective October 1, 1985 (October 1, 1983 for management members).
Table IX (Cont'd)
1. Eligibility:
Attainment of age 60 and completion of 10 years of credited service, attainment of age 60 if a Plan Member on or before November 13, 2008.
Career average compensation (CAC) means the average of the pensionable earnings earned by a member from date of participation to termination of service. Pensionable earnings are calculated using the member's base hourly rate in effect each pay period, multiplied by the corresponding hours earned during that pay period, less any hours that are considered leave without pay or are otherwise excluded from pensionable earnings.
Earlier of:
Totally and permanently disabled as defined under the Plan and completion of 10 years of credited service as of date of disability.
Completion of 30 years of credited service.
For employees hired on or before May 31, 2010, 2.4% times FAC times years of credited service. For employees hired on or after June 1, 2010, 2.0% times CAC times years of credited service.
Earliest of: Attainment of age 55 with completion of 10 years of credited service. Completion of 20 years of credited service.
Benefit as calculated for normal retirement based on credited service and FAC or CAC as of early retirement date. The member may elect to defer receipt of the benefit until the normal retirement date or alternatively, may elect a benefit reduced 5% for each year the benefit commencement date precedes normal retirement date.
Table IX (Cont'd)
L. Termination Benefit:
(1) is a refund of employee contributions plus 1% if termination with 5 years or less of service, or 3% if termination after 5 years of service; and,
For employees hired on or before May 31, 2010, benefit as calculated for normal retirement based on credited service and average basic compensation during the three years immediately preceding disability, minimum benefit of 20% of final three year average basic compensation at date of disability.
For employees hired on or after June 1, 2010, benefit as calculated for normal retirement based on credited service and CAC as of date of disability, minimum benefit of 20% of CAC at date of disability.
These benefits will be offset by any benefits payable under Workers' Compensation or similar injury or disability benefit payments.
In the case of death of a member while currently employed, the amount of the projected benefit which such member would have received had the member continued employment until normal retirement date at the current rate of pay shall be determined. Each Plan Member may elect survivor payment under Option 1 or Option 2, however, Option 2 is only available if the Plan Member has children under 21 years of age (25 years of age provided the child is a full-time student in college or disabled under Social Security).
Option 1, 75% of the benefit calculated above payable during the remaining lifetime of the spouse or domestic partner.
Option 2, 100% of the benefit calculated above payable until the youngest child is 21 years of age (25 years of age provided the child is a full-time student in college or disabled under Social Security). Upon attainment of age 21 (age 25 provided the child is a full-time student in college or disabled under Social Security) by the youngest child, 60% of the benefit calculated above payable during the remaining lifetime of the surviving spouse or domestic partner.
Notwithstanding the above, the minimum death benefit paid shall not be less than the accumulated employee contributions, if any, as of date of death.
Upon termination prior to normal or early retirement date a member shall be entitled to choose (1) or (2) below, where:
Table IX (Cont'd)
Years of Credited Service Percentage
Less than 5 0% 5 25% 6 30% 7 40% 8 60% 9 80%
10 or more 100%
N. Changes Since Previous Valuation (Included in Actuarial Impact Statement)
1. Final Average Compensation was:
2. Career Average Compensation was:
Final average compensation (FAC) equals the average annual pensionable earnings received during a period of the five highest years out of

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