Sec. 776.105. - Recognition of Net Present Value of Surtax and Actuarial Defined Employer Contribution.

(a) At the commencement of the fiscal year beginning October 1, 2017, the proceeds of the pension liability surtax imposed by the City pursuant to this Chapter shall be actuarially recognized to impact the Actuarial Determined Employer Contribution ("ADEC") for the fiscal year beginning October 1, 2017 and each fiscal year thereafter. (b) In each fiscal year beginning with the 2017-18 fiscal year the ADEC shall be determined using the following approaches: (1) The proceeds of the Pension Liability Surtax shall be actuarially recognized, and each fiscal year the City shall apply the present value of the total projected proceeds of the surtax to reduce the unfunded liability of the eligible defined benefit plans. The present value shall be calculated assuming 4.25 percent growth per annum in the proceeds of the surtax, unless the Council modifies such percentage by October 31 of each fiscal year, which percentage will be utilized for the actuarial study prepared by the actuaries of each pension plan to determine the funding requirements of the City for the following fiscal year. By October 31 annually, the City Council through legislation, shall approve the assumed growth rate of the sales tax; provided, however, that the adoption of a rate in excess of 4.25 percent shall require a vote of at least 13 council members for approval. (2) The unfunded liability amortization schedule of all unfunded liabilities existing as of October 1, 2016, must be adjusted beginning with the 2017-18 fiscal year and amortized over a period of 30 years. (3) The payroll of all employees in classifications covered by a closed retirement plan or system that receives funds from the pension liability surtax must be included in determining the unfunded liability amortization schedule for the closed plan, regardless of the plan in which the employees currently participate, and the payroll growth assumption must be adjusted to reflect the payroll of those employees when calculating. (4) The eligible defined benefit plans shall apply the present value of the total projected proceeds of the surtax, as determined by the City, in accordance with the pro rata share of each plans respective proportion of the City's total unfunded liability as determined by the October 1, 2015 actuarial valuation and each subsequent year's actuarial valuation. (Ord. 2017-257-E , § 1)