CITY OF TOCCOA CITY COMMISSION AGENDA e MARCH 10, 2025 Work Session City Commission/Court Room 3:30 PM 921 NorthAlexander, Toccoa, GA 30577 I. CALL TO ORDER II. AGENDA ITEMS 1. Discussion of Special Purpose Local Option Sales Tax (SPLOST) 2. Presentation: Georgia Municipal Association Public Service Early Retirement III. ADJOURN NEXT MEETING: March 24, 2025 5:00 pm Meetings of the City Commission are open to the public in accordance of law. All interested parties are urged to attend. To request accommodations due to disabilities please contact 706 - 886 8451. City of Toccoa Page 1 2.1 City Commission Meeting: 03/10/25 03:30 PM 921 North Alexander St Department: City Manager Toccoa, GA 30577 Category: Discussion Prepared By: Jan Crawford SCHEDULED Initiator: Fredda O. Wheeler Sponsors: AGENDA ITEM (ID # 3394) DOC ID:3394 Discussion of Special Purpose Local Option Sales Tax (SPLOST) Updated: 3/3/2025 9:08 AM by Jan Crawford Page 1 Packet Pg.2 2.2 City Commission Meeting: 03/10/25 03:30 PM 921 North Alexander St Department: City Manager Toccoa, GA 30577 Category: Presentation Prepared By: Jan Crawford SCHEDULED Initiator: Fredda O. Wheeler Sponsors: AGENDA ITEM (ID # 3396) DOC ID:3396 Presentation: Georgia Municipal Association Public Service Early Retirement Updated: 3/3/2025 9:13 AM by Jan Crawford Page 1 Packet Pg.3 2.2.a 2727 Paces Ferry Road SE, Building One, Suite 1400 Segal Atlanta, GA3 30339-4053 T678.306.3100 F6 678.306.3190 segalco.com December 5, 2024 Mr. Randy Briskin RMEBS Field Services Representative Georgia Municipal Association 201 Pryor Street, SW Atlanta, Georgia 30303 Re: Benefit Study for the City of Toccoa Dear Randy: As requested, we have developed the impact on plan funding of providing Alternative Normal Retirement eligibility at the Rule of 80 with minimum age 55 for Public Safety Employees of the City of Toccoa Retirement Plan. The City provided a list of 39 Public Safety Employees. The studies use the data, methods, assumptions, and plan provisions for the January 1, 2024 valuation dated May 10, 2024 unless otherwise noted in this letter. Use of the information in these studies is subject to the caveats and limitations of use described in that report. That report is incorporated into these studies by reference. Since the results are dependent on a given set of assumptions and data as of a specific date, there is a risk that emerging results may differ significantly, as actual experience differs from the assumptions. When determining the Recommended Contribution, the total level dollar amortization is adjusted, if necessary, to be within a corridor of the 10-year and the 30-year amortization of the unfunded/surplus) actuarial accrued liability. In addition, since the funded ratio on an actuarial basis prior to the plan change is 100.91%, the proposed plan change is amortized over 20 years per the GMEBS funding policy. The amortization period may change depending on the funded ratio when the plan change is first reflected. If the actuarial funding ratio drops below 80%, the amortization period would be 15 years instead of 20. Please note, for the fiscal year July 1, 2023 to June 30, 2024, GASB standards require that the plan's Net Pension Liability (NPL) be reported on the sponsoring employer's balance sheet. The standards require using the Entry Age Funding method and assets at market (rather than the projected Unit Credit method and smoothed assets which are used for determining contribution requirements). For the fiscal year ended June 30, 2024, we have calculated the NPL as $2,823,596. Inclusion of the proposed benefit improvement would increase this by an estimated $832,000. This study was prepared in accordance with generally accepted actuarial principles as prescribed by the Actuarial Standards Board and the American Academy of Actuaries at the request of GMA to assist the City of Toccoa in administering the Retirement Plan. 100631234307074.003 Packet Pg.4 2.2.a Mr. Randy Briskin December 5, 2024 Page 3 City of Toccoa Benefit Study Summary of Results Alternative NRA at Rule of 80 and Minimum Age 55 for Public Safety Description Current Plan Employees Recommended Contribution as of January 1, 2024 $595,213 $595,213 Covered Payroll $8,120,651 $8,120,651 % of Covered Payroll 7.25% 7.25% Impact of Benefit Improvement Cost of Benefit Improvement $77,470 % of Covered Payroll 0.94% Total Plan Cost of Benefit Improvement $ Amount (Recommended Contribution + Cost of Benefit Improvement) $672,683 % of Covered Payroll 8.19% Funding Elements Mid-year Normal Cost with Expenses $574,408 $605,811 Actuarial Value of Assets $24,647,024 $24,647,024 Actuarial Accrued Liability $24,423,788 $25,184,188 Unfunded Actuarial Accrued Liability -$223,236 $537,164 Funded Ratio on Actuarial Value of Assets 100.91% 97.87% Market Value of Assets $23,685,202 $23,685,202 Funded Ratio on Market Value of Assets 96.98% 94.05% Fiscal year begins July 1, 2024. 1 100631234307074.003 Segal Packet Pg. 5