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HomeMy WebLinkAboutMinutes BOC 062206BUDGET OVERSIGHT COMMITTEE June 22, 2006 MINUTES The Budget Oversight Committee met on June 22, 2006 in the Council Chambers of the Municipal Complex, located at 10500 North Military Trail, Palm Beach Gardens, Florida. The meeting was called to order by the Chairperson, John Chaplik, at 8:35 AM. I. Roll Call Members Present: John Chaplik Chairperson Harvey Goldberg Vice Chairperson Martin Cohen Also Present: Council member /Council Liaison - Hal Valeche Finance Administrator /Staff Liaison - Allan Owens Deputy Finance Administrator - Mary Anderson- Pickle H. Approval of Minutes The Committee approved the minutes from the April 27, 2006 meeting. John Chaplik Yes Harvey Goldberg Yes Martin Cohen Yes III. Actuary's Report John Chaplik asked to reorder the agenda and move the Actuary's Report to the top of the agenda. John spoke about the assumption changes for the Fire Fighter's Pension and asked why the changes were not reflected in this year's budget. Allan Owens responded by explaining that this year there is a "phasing in" type of approach and next year the numbers will be set and put in the budget. He is not planning on changing the contribution rate that is set by the current Actuary for the 2006/2007 budget year. Martin Cohen stated that he feels money is being wasted on the Pension Boards because there are two Actuaries, two CPA's and two sets of Investment Advisors when they could be saving money by having one of each that will represent both pensions. Discussion ensued regarding the interest rate assumption and what would happen if the Pension Plans were switched to a different plan in future negotiations. IV. Proposed Budget The Committee discussed the proposed Budget for 2006 /2007 fiscal year. There was conversation regarding the City Council's request to hire additional Police Officers. The Committee discussed the increase in employee health insurance benefits and Allan reported there is going to be an estimated 10% increase in insurance premiums for this year. Discussion ensued regarding the general employee's benefit and compensation packages. The Committee discussed the possibility of the general employees joining the Florida Retirement System. The conversation included: the 401 plan that the general employees are currently in, funding of the Florida Retirement System, educating the employees on the Florida Retirement System, and the possibility of including the Fire and Police Departments in the Florida Retirement System. Councilmember Valeche and the Committee agreed that they would like a representative from the Florida Retirement System to present more information and talk about the costs involved before making a decision if the Florida Retirement System is right for City employees. There was discussion among the Committee regarding the repositioning of employees throughout different departments in the City and the reclassification of different positions. Mary Anderson- Pickle explained that there have been several positions that have been repositioned or reclassified in different departments and that is why some departments are showing an increase in salaries and some are showing a decrease. The Committee went on to discuss different aspects of the budget including: Waste Management, telephone services, recreation services, the Information Technology Department, and construction services. The Committee also discussed the findings in the Comprehensive Salary Report and the turnover of city employees. John Chaplik brought up the topic of overtime for Fire Fighters and asked if hiring new Fire Fighter's last year lowered the overtime in the Fire Department's budget. Allan stated that he did not have that information with him and the information will be provided to the Committee. Martin Cohen went on to discuss retiree health benefits and there was discussion among the Committee regarding the fact that since there are only a few retired employees at this time, this might be a good time to make changes to the health benefits for retirees. There was additional discussion regarding the Florida Retirement System and Allan explained the research and information he has already obtained. The Committee had questions about the funding and the rules that apply to the current 401 accounts. The committee would like to see a summary plan which would include the long term financial implications of the Florida Retirement Systems versus the 401 plans. John Chaplik also recommended talking to a representative from another city that has gone through the transition to the Florida Retirement System. Discussion ensued regarding the benefits of a defined benefit plan versus the 401 plan. At the next meeting the Committee will discuss the Florida Retirement System and a recommendation to City Council. They will also continue to discuss the budget in more detail. VI. Adjournment With no further business to discuss the meeting adjourned at 10:33 a.m. Approved: 2 G1U., '� n Jo n Chaplik, Chairperson 6m"/W�A r ! • .T- •� �zA Martin Cohen, Committee Member Attest: Susan B16611, Public Information/Recording Coordinator