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:
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Jo n Chaplik, Chairperson
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Martin Cohen, Committee Member
Attest:
Susan B16611, Public Information/Recording Coordinator