CITY OF UMATILLA AGENDA COVER SHEET
CITY OF UMATILLA AGENDA COVER SHEET DATE: January 31, 2013 MEETING DATE: February 5, 1013 SUBJECT: Resolution 2013 ‐ 03 ISSUE: Florida League of Cities legislative Priorities – Unfunded Mandates BACKGROUND SUMMARY: Kathy Till serves as an Advocacy Consultant for the Florida League of Cities (FLC) and has provided information on the 2013 Legislative Priorities identified by FLC. Ms. Till will be at the Council meeting to speak to the issues on which FLC will focus their efforts during the upcoming legislative session. Three resolutions were sent to the city with the request to present one to Council for review. The third resolution in the packet pertained to Pension Reform as well as various unfunded mandates which have been handed down by the state legislature through the years. Staff chose this resolution to present to the Council for consideration. STAFF RECOMMENDATIONS: Listen to Ms. Till’s presentation and determine if you wish to adopt Resolution 2013 – 03 and have it forwarded to the Governor, Legislature, and FLC. FISCAL IMPACTS: $0.00 ______________________________________________________________________________ COUNCIL ACTION: Reviewed by City Attorney √Yes Reviewed by City Engineer □Yes □No □N/A □No √N/A 1 02.05.13 RESO 2013 03 LEGISLATIVE PRIORITIESResolution 2013 - 03 Legislative Priorities-Unfunded Mandates| khh 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 RESOLUTION 2013 - 03 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UMATILLA, FLORIDA, OPPOSING UNFUNDED STATE MANDATES ON CITIES. WHEREAS, the City Council of the City of Umatilla is concerned with the negative impacts unfunded state mandates have on the services provided by cities and with the fiscal impacts they have on local taxpayers; and WHEREAS, an unfunded state mandate is generally delineated as a state law requiring a city to spend funds or to take an action requiring the expenditure of funds without the state providing an adequate funding source; and WHEREAS, unfunded state mandates continuously force cities to adjust local service priorities and raise local taxes and fees to pay for such unfunded mandates; and WHEREAS, cities are forced to pass the increased costs associated with unfunded state mandates to the citizens and taxpayers of the city; and WHEREAS, the priorities and programs of local citizens of cities are often curtailed when limited local funds must be diverted to pay for unfunded state mandates; and WHEREAS, unfunded state mandates are not fair to local property owners or elected city officials who are trying to address local priorities and problems with a limited amount of financial resources; and WHEREAS, prior to 1990 the state legislative passed hundreds of unfunded state mandates on to cities; and WHEREAS, the citizens of Florida passed a state constitutional amendment in 1990 to limit the ability of the state legislature to pass unfunded state mandates on to cities (Article VII, Section 18, Florida Constitution); and WHEREAS, even with the 1990 state constitutional amendment to limit unfunded state mandates, the state legislature continues to pass unfunded mandates under various exceptions to the law; and WHEREAS, the following unfunded state mandates serve as examples of mandates cities across the state are required to comply with or to fund; • Police Officer and Firefighter Pensions, Chapters 175 and 185, F.S. In 1999, the state legislature mandated that cities use any increases in insurance premium tax revenues to provide additional “extra pension benefits” in police officer of firefighter pension plans. These extra benefits are in addition to benefits already provided. In aggregate numbers, it is estimated that cities have had to provide over $500 million in “extra pension benefits” to firefighters and police officers since 1999. • Workers’ Compensation and Disability Pensions, Section 112.18, F.S. This mandate establishes a disability presumption for firefighters and police officers who suffer any health condition caused by hypertension or heart disease. The presumption is that the condition occurred because of the job and the legal presumption is nearly impossible to overcome. This mandate has dramatically increased city funding requirements relating to workers’ compensation and disability pensions. Resolution 2013 – 04 Opposition to Legislative Unfunded Mandates Page 1 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 • Group Health Insurance – Section 112.0801, F.S., requires cities and other governments to offer subsidized health, hospitalization and other insurance coverage to city retirees. This is a significant mandate, as it requires governments to offer their retirees health and hospitalization insurance at artificially low rates to the retiree, thereby making the employer pay the difference. • Environmental Regulation – Chapter 403 includes numerous state mandates to cities in the area of environmental regulation. Section 403.064, F.S., requires cities applying for a permit for a domestic wastewater treatment facility to prepare a water reuse feasibility study. Cities must implement water reuse, if feasible, and prepare and annual water reuse report to the Department of Environmental Protection. Section 403.067 is a joint state and federal mandate that requires cities to reduce nonpoint source pollution reductions from stormwater runoff and septic tanks. The cost of retrofits for stormwater alone is estimated in the hundreds of millions. Section 403.0891 requires cities to develop of stormwater water management program within their comprehensive plans. Section 403.702 requires cities to plan and provide solid waste management and requires them to determine the “full cost” for providing resource recovery, recycling, and disposal. This section also requires cities to develop and implement recycling programs. • State Building Code – Chapter 553, Part IV, F.S., requires each city to adopt and enforce the state building code. Cities must use employees “certified” by the state to enforce the code. Cities must also add a “surcharge” to every building permit, which is used by the state to oversee the enforcement of the codes. • Effective Public Notice – various Florida Statutes require cities to purchase ad space in newspapers as the only method of meeting public notice requirements, even when equally effective and lower cost alternatives are available. • Agency Rules – State agencies often propose rules that have significant fiscal impacts on cities. Recent examples include irrigation rules proposed by various water management districts, energy efficient land use rules and “need” based population analysis rules. In many instances cities must file administrative challenges just to get the agency to reconsider or reduce the fiscal impact. • Consultants Competitive Negotiations Act – Section 287.055, F.S., requires a city to proceed through an extensive selection and negotiation process when it retains architects, engineers, landscape architects, or surveyors and mappers. Bids are based on qualification with no consideration of cost. WHEREAS, the City Council of the City of Umatilla requests the state legislature to make reasonable and responsible changes to current state laws to eliminate existing unfunded state mandates on cities, and further requests the state legislature to honor the intent of the 1990 state constitutional amendment restricting unfunded state mandates and not pass any unfunded state mandates in the future. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF UMATILLA, FLORIDA: Section 1. That the City Council of the City of Umatilla hereby requests the Florida Legislature to make reasonable and responsible changes to current laws to eliminate existing unfunded state mandates on cities. Section 2. Resolution 2013 – 04 Opposition to Legislative Unfunded Mandates Page 2 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 That the City Council of the City of Umatilla hereby requests the Florida Legislature honor the intent of the 1990 state constitutional amendment restricting unfunded state mandates and no pass any unfunded state mandates on cities in the future. Section 3. That the City of Umatilla urges the Governor to approve any legislation making reasonable and responsible changes to current state laws to eliminate existing unfunded state mandates of cities. Section 4. That the City Clerk is directed to transmit a copy of this resolution to Governor Rick Scott, the Florida Legislature, and the Florida League of Cities, Inc. Section 5. That this resolution shall be effective upon adoption. PASSED IN OPEN AND REGULAR SESSION OF THE CITY COUNCIL OF THE CITY OF UMATILLA, FLORIDA THIS ___________ DAY OF FEBRUARY, 2013. ______________________________ Laura K. Wright Mayor Approved as to form: ______________________________ Glenn A Irby City Manager ______________________________ Katrina Stone/Lewis Stone/Scott Gerken City Attorney Passed First Reading: ___________ [seal] Resolution 2013 – 04 Opposition to Legislative Unfunded Mandates Page 3 Municipal Police Officer and Firefighter Pension Plans and Disability Presumptions Legislative Priority: The Florida League of Cities supports legislation that provides comprehensive municipal firefighter and police officer pension reform and disability presumption reform. Background: In 1999, the Legislature amended Chapters 175 and 185, Florida Statutes, relating to firefighter and police pensions. These changes included defining how insurance premium tax revenues had to be used in the plans. Until mid-2012, this law was administered by the Florida Department of Management Services in such a way that more than $500 million in premium tax revenues had to be used for “extra pension benefits.” An extra pension benefit is defined as a pension benefit in excess of a pension benefit provided to general employees. In 2011, the Florida Legislature took the first steps in reforming municipal pension plans when it passed SB 1128. The legislation prohibits including overtime in excess of 300 hours per year and payments for unused sick or annual leave in calculating compensation for pension purposes. Overtime up to 300 hours per year is subject to collective bargaining. The legislation also eliminated the requirement in Chapters 175 and 185 that pension benefits be increased whenever member contributions are increased. In August 2012, the Department of Management Services began sending letters to cities that substantially revises how insurance premium tax revenues must be used in firefighter and police pension plans. In the letter, the department admits its prior interpretation of the 1999 law “appears inaccurate.” Florida Legislature has provided that health conditions relating to heart disease, hypertension or tuberculosis suffered by a firefighter, law enforcement officer or correctional officer are presumed to be job related. These “disability presumptions” are applicable to both workers’ compensation and disability pension claims. Courts have interpreted the presumption laws so favorably toward these employees that cities and other government employers basically cannot overcome the presumption and show the health condition was not work related. In 2012, the Task Force on Public Employee Disability Presumptions made findings and recommendations to the Legislature. Changes to disability presumption laws supported by a majority of Task Force members included allowing the presumption to be overcome by a preponderance of the evidence. 1 Economic Development Legislative Priority: Recognizing that 89 percent of all businesses in Florida have 12 or fewer employees, the Florida League of Cities supports legislation that dedicates to small businesses state economic development resources emphasizing technical assistance, access to capital, public infrastructure and urban infill. Background: Over the past two years, the Florida Legislature has focused on economic development as a way to restart Florida’s economic engine and create more jobs. Getting Florida back to work continues to be a major focus of Gov. Rick Scott, who has pledged to create 700,000 permanent Florida jobs over the next seven years. As part of this effort, the Florida Department of Economic Opportunity was created with the sole purpose of coordinating economic development efforts to ensure Florida has a thriving climate for businesses that seek to start, relocate or expand in Florida. In 2012, Gov. Scott’s agenda pushed to stimulate economic growth by streamlining business permitting; providing tax relief for businesses; reforming Florida’s unemployment system; restoring accountability to Florida’s workforce boards; offering stability to Florida’s businesses by balancing the budget without raising taxes; and prioritizing science, technology, engineering and mathematics (STEM) education in the state. Small-business owners are the backbone of Florida’s economy; however, they are often overlooked or do not qualify for existing economic development incentives. Rebuilding Florida’s economy should be a “bottom up” approach that starts with local economic development and offers to retain and grow small businesses. 2 Communications Services and Local Business Tax Protection Legislative Priority: The Florida League of Cities opposes legislation that restricts or eliminates municipal revenues generated under the communication services tax and the local business tax. Background: Communications Services Tax In 2001, the Florida Legislature created the Communication Services Simplification Act, which restructured taxes on telecommunications, cable, direct-to-home satellite and related services. The law replaced and consolidated seven different state and local taxes and fees into a single tax that is composed of two parts, the state Communication Services Tax and the local Communication Services Tax. The local Communication Services Tax is one of the main sources of general revenue for municipalities, generating nearly $800 million every year for cities and counties. These revenues may be used for any public purpose, including pledging the revenues to secure bonds. Local Business Tax Currently, a municipality may impose a local business tax for the privilege of engaging in or managing a business, profession or occupation within its jurisdiction. The amount of the tax, as well as the occupations and businesses on which the tax is imposed, is determined by the local government. Local business tax revenues collected by local governments are used to assist in funding services critical to businesses, such as zoning, permitting, code enforcement, and police and fire services. Local governments may also use business tax revenues to help fund economic development programs, presenting a direct benefit to businesses through the marketing of local areas. Many municipalities use the business tax as general revenue funds and have pledged these revenues to secure debt. Collections for municipal local business tax revenues are more than $120 million annually. 3 Water Legislative Priority: The Florida League of Cities supports legislation which recognizes that diminished water quality and quantity affect existing business, future economic development, local and state government budgets, and the public health and safety. Cities must retain the necessary tools to meet their obligations and responsibilities to comply with water quality standards and water supply planning, development and source protection. These tools include the authority of local governments to adopt and implement fertilizer ordinances; the ability to cooperatively fund expanded wastewater, stormwater, potable water and surface water infrastructure; and statutory clarification of municipal authority to establish stormwater utilities and charge assessments and fees to the users of such systems, including state agencies and school boards. Further, the League supports legislation that establishes environmental, technical and scientific criteria for the protection and recovery of water resources and also assists municipalities’ economic development efforts. Background: In January 2009, the U.S. Environmental Protection Agency (EPA) promulgated a draft rule titled “Water Quality Standards for the State of Florida’s Lakes and Flowing Waters.” The proposed rule was the result of a consent agreement between the EPA and several environmental groups that had filed a lawsuit alleging that the EPA had failed to enforce nutrient levels in Florida waters. The State of Florida, the League, businesses, agriculture interests and other affected parties have continued to fight EPA efforts to impose the numeric nutrient criteria that were developed by the EPA as a result of the consent agreement. Affected parties that will be forced to spend millions of dollars to comply with the EPA numeric nutrient criteria have been fighting to allow the Florida Department of Environmental Protection to set the nutrient standards. While litigation is still ongoing to determine whether or not the state or federal government will set Florida’s water quality program, many areas of water policy remain uncertain and potentially harmful to municipalities. Under the federal Clean Water Act, cities bear the burden of cleaning impaired bodies of water. Because of this mandate, cities must retain the authority to regulate numerous “contributors” to poor water quality, including urban fertilizer application, in order to keep surrounding water bodies free of nutrients. The future of our state’s economic, residential and environmental welfare depends on an increased investment in Florida’s water infrastructure. Municipalities are faced with aging stormwater and wastewater treatment facilities that are in desperate need of maintenance and repair. Assistance is needed to increase public and private stormwater erosion funding and consistency in statewide erosion control permitting. 4 Florida cities and counties have home rule authority and statutory authority to adopt stormwater regulations and create stormwater utility systems. The construction and operation of these facilities are funded through general taxation or through the imposition of user fees and special assessments. In Florida, there have been instances in which governmental entities, such as schools, have refused to pay their stormwater utility fees. The non-payment of these fees by governmental entities shifts costs to other users of the system that have already paid a fair share. The failure to pay stormwater utility fees also results in inadequate funding for maintenance and repair of these utilities, which may result in flooding and insufficient protection of the state’s waterways and drinking supply from contaminates contained in stormwater runoff. 5 Housing Policy Legislative Priority: The Florida League of Cities supports legislation directing $300 million from the landmark national foreclosure settlement agreement to be used for existing local government affordable housing initiatives to meet the housing needs of the local communities. Background: Florida’s housing market has been one of the hardest hit in the country, and Florida’s cities have been at ground zero. The record number of foreclosures comes at a time when cities have encountered a decline in funding for affordable housing programs when they are needed most. Predatory lending and servicing practices by lending institutions are to blame for many of the foreclosures. In February 2012, 49 state attorneys general were a party to a historic joint state-federal national settlement agreement with the country’s five largest mortgage servicers over foreclosure abuses and unacceptable nationwide mortgage servicing practices. The settlement calls for an estimated $25 billion. Of that amount, $8.4 billion has been slated for foreclosure relief for Florida homeowners who have experienced these abuses. The settlement agreement calls for approximately $300 million to be used for housing aid in Florida. Along with the Florida League of Cities, the Florida League of Mayors and the Florida Urban Partnership (a coalition of mayors from the state’s largest metropolitan areas) have asked Attorney General Pam Bondi (with whom the settlement was reached) to direct the $300 million to existing affordable housing programs within local governments that have the highest rates of foreclosures. Florida’s cities are in the unique position of having the existing capacity and administrative structures set in place to use these funds to provide the necessary relief to Florida’s residents. 6 Energy Legislative Priority: The Florida League of Cities supports legislation that establishes a comprehensive statewide policy on sustainable energy development and conservation, and that incentivizes the development and implementation of renewable and alternative energy sources. In addition, the League supports legislation that authorizes the use of $192 million in Qualified Energy Conservation Bonds allocated to the State of Florida for local government energy efficiency projects. Background: The cost of electricity and other fuel sources to Florida’s cities, residents and businesses has significantly increased in recent years, and it is likely to continue to do so. Increased costs negatively affect everyone’s pocket books, as well as impact economic activity and growth. Establishing a statewide policy on energy development and conservation, as well as developing cost-effective methods to lower electric and other fuel source expenses, is critical to growing our state and local economies. In the past, the Legislature has attempted various measures to increase renewable or alternative energy sources. The state, working with cities and other interested parties, must either provide or authorize cities to provide incentives for the development and implementation of renewable and alternative energy and transportation fuel sources. Qualified Energy Conservation Bonds (QECBs) are federally supported tax credit bonds issued by local or state governments for energy conservation-related projects. QECBs provide an opportunity for economic development and a move toward energy efficiency. Funds from QECBs may be used for financing energy efficiency improvements, mass transportation projects, and public education programs to promote energy efficiency. Action by either the governor or Legislature is required to access the $192 million in QECBs allocated to Florida by the federal government. 7 Sober Homes Legislative Priority: The Florida League of Cities supports legislation that defines and establishes minimum regulatory standards for sober home facilities and allows for more stringent local regulations of these facilities. Background: Several cities, particularly those in the southern part of the state, have been experiencing problems with sober homes in residential neighborhoods. These homes are marketed as places where recovering addicts can come to “sober up.” With no regulation from government agencies, setting up a sober house is as easy as renting a house to a few residents who pledge to live in sobriety and attend support groups. At times, this has resulted in poorly run houses that provide little or no supervision for recovering addicts. Law enforcement officials have seen crime increase in neighborhoods where these sober homes have proliferated. Some cities, including Delray Beach, have adopted ordinances to restrict sober houses and transient rental homes from operating in neighborhoods or single-family homes. In May, a federal judge granted an injunction against Delray Beach, saying that the city may have “unlawfully discriminated” against people in recovery when it modified its transient housing laws. The League supports efforts to clearly define sober homes in statute and allow for the local regulation of these facilities. 8 Transportation Funding Legislative Priority: The Florida League of Cities supports legislation that preserves local control of transportation planning and provides opportunities for additional revenue options to fund municipal transportation infrastructure projects. Background: Municipalities have limited revenue options for funding transportation projects. A major portion of transportation funding for municipalities is from the state and federal governments. Much of that funding is generated through a tax on gasoline. Recent data has shown that gas tax revenue at both the state and federal levels has decreased dramatically. The decrease in revenue is due in part to an increase in the number of fuel efficient vehicles on the road. Gas tax revenue is forecasted to continue to decrease over time as vehicles become more fuel efficient. Compounding the problem is that the federal gas tax was last increased in 1997, the state gas tax in 1943, the county gas tax in 1941, and the municipal gas tax in 1971. None of these taxes are indexed for inflation. Faced with lower revenues from the state and federal governments, municipalities lack the options to increase revenue to fund local transportation projects. For example, charter counties currently may hold a referendum on whether to impose up to a 1 percent sales tax to fund transportation infrastructure projects. Municipalities lack such authority. This can be problematic when there are disparities between the transportation needs of municipalities versus those of the more rural areas of the county. For example, a referendum was held in Hillsborough County to enact such a tax, which was defeated countywide. However, if the election results are broken down by municipality, the residents of Tampa actually voted to approve the tax. Extending such options to municipalities would allow greater flexibility to fund their unique transportation needs. 9 Billboards Legislative Priority: The Florida League of Cities supports legislation that maintains the home rule authority of municipalities to more strictly regulate outdoor advertising. Additionally, state legislation that maintains the Federal Highway Beautification Act, as enhanced by the Florida Legislature in 1985, should be the baseline standard for regulating off-premises outdoor advertising. Background: In 1972, Florida enacted the Federal Highway Beautification Act’s State/Federal Agreement that applied to interstate and federal-aid primary highways. This legislation was amended in 1985 to more strictly control the size, height and spacing of outdoor advertising signs. These regulations allow a municipality to more strictly regulate off-premises signage through the statutory “harmony of regulations” provision. The statute provides that the Florida Department of Transportation may not issue a permit for a sign that is prohibited by a municipal ordinance enacted through the lawful exercise of its municipal powers. This allows municipalities the home rule authority to be the ultimate regulator of signage within their boundaries and essentially “preempts” a state agency from issuing permits without municipal consent. Likewise, a municipality may not permit outdoor advertising that violates the basic state regulations. 10 Synthetic Drugs Legislative Priority: The Florida League of Cities supports legislation and the efforts of the attorney general and law enforcement to ban the manufacture, possession, distribution, purchase or sale of synthetic drugs, including without limitation, herbal incense, bath salts, synthetic marijuana and/or any cannabinoids in Florida and also encourages funding for drug abuse education. Background: Synthetic drugs, marketed as “bath salts,” have been a national problem for the last several years. These products mimic the pharmacological effects of amphetamines, cocaine, ecstasy and other illegal drugs, but they can be easily purchased in gas stations, convenience stores, etc. During the 2011 legislative session, the Florida Legislature passed HB 39 and HB 1039, which added 11 synthetic cannabinoids or synthetic cannabinoid-mimicking compounds to Schedule 1 of Florida’s controlled substance schedule, allowing law enforcement officials and prosecutors to arrest and prosecute for the possession and sale of those particular substances. Following the passage of HB 39, rogue chemists reconfigured the particular synthetic cannabinoids and synthetic cannabinoid-mimmicking compounds made illegal by HB 39 and marketed new products that were not illegal under Florida law. During the 2012 legislative session, the Legislature passed HB 1175, which added dozens of additional synthetic cannabinoids, synthetic cannabinoid-mimicking compounds and synthetic stimulants to Schedule 1 of the Florida’s controlled substance schedule. It is anticipated that drug designers and chemists will again make an effort to circumvent the law by reconfiguring the molecular structure of the outlawed compounds, resulting in a similar structure, make up and effect, but with new and different chemical compounds not listed as controlled substances. It is worth noting that Section 893.035, Florida Statutes, grants Florida’s attorney general rulemaking authority to add new substances to Florida’s schedules of controlled substances, but the rulemaking process takes time. Many cities and counties have chosen to act quickly and have adopted ordinances banning the sale of these substances within their jurisdictions, but have found that action needs to be taken at the state level as this has now become a statewide problem in Florida. 11 Pension Reform Advocacy Kit Florida League of Cities Pension Reform Advocacy Kit Dear League Member, State mandated pension bene5its for local police and 5ire5ighters are hurting our ability to provide services to our local citizens. Tallahassee lawmakers insist on supporting union-‐driven initiatives that meddle in local pension and bene5it negotiations. We must stand together to bring sensible 5iscal reforms to local city police and 5ire5ighter pensions…for the future of our communities and to secure our ability to provide fair compensation and bene5its to future police and 5ire5ighters. In the coming weeks, the Florida League of Cities will develop a comprehensive legislative strategy that seeks to return common sense and sustainability to local pensions, and it starts with YOU. WE ARE ASKING YOU TO DO TWO THINGS: 1. 2. Please take the time – in the very near future – to meet with your state legislative delegation and explain why these reforms are necessary for Florida’s future. Encourage your city to pass a resolution in support of real pension reform. We have included the following sample resolutions for your convenience: a short and long version speci5ically relating to chapters 175 and 185 F.S. (for police and 5ire pension plans), and a resolution dealing with the general topic of unfunded mandates. If your city passes a resolution, please send a copy of it to your local legislative delegation and to Allison Payne at [email protected]. Thank you. Pension Reform Advocacy Kit Key Messages for Lawmakers When meeting with Florida lawmakers please stress the following points: ❖ We respect the work of our local police and 8ire8ighters. First and foremost, we respect, admire and appreciate our local police and 4ire4ighters. We also want them to have good salaries and sensible bene4it packages for a long time to come. ❖ Union driven pension mandates are hurting our future. We care about the future and we care about our police and 4ire4ighters. If we are to have a sustainable future, state lawmakers must roll-‐back union-‐driven initiatives that force taxpayers to pay far more than negotiated wage and bene4it packages. ❖ State required bene8its help unions, hurt taxpayers. Local unions already have collective bargaining rights – let’s respect those rights. The pro-‐union initiatives supported by state lawmakers undermine local contract negotiations, drive up costs and put upward pressures on taxes. ❖ Multiple Constitutional Amendments have hurt our ability to meet pension demands. Beginning with Amendment 1 in 2008, lawmakers have put a series of Amendments in our State Constitution that severely restrict local governments’ ability to meet the rising pension demands forced upon us by those same lawmakers. Enough is enough! We need to work together to lower taxes, roll back union-‐ mandated pension bene4its, and bring 4iscal common sense to local pension systems. ❖ We need to end state meddling in local decisions. Local pension plans are negotiated locally and are paid by local taxpayers, using local tax dollars. State lawmakers and local of4icials need to work together to end the state’s meddling in local affairs and 4ind a way to bring sensible reform to union-‐driven pension demands that are unsustainable and unworkable. Pension Reform Advocacy Kit Key Messages for the Public Safeguarding local police and 4ire4ighter pensions is a critical issue for Florida’s 410 cities, towns and villages. Union driven police and 4ire4ighter pension mandates imposed on municipalities by past lawmakers in Tallahassee are driving costs up. Reversing state level police and 4ire union in4luence and past legislative meddling is required to safeguard local pensions, protect taxpayers and allow needed reforms. The current taxpayer-‐funded pension system is unstable, unsustainable and unreliable for future police of4icers and 4ire4ighters. The time has come to 4ix the system by implementing responsible reform that protects pensions for the future. The pension issue is incredibly complicated. It is important to communicate the concerns of Florida’s municipalities in a way that is easy for people to understand and framed appropriately to win the public policy debate. Under the umbrella “pension reform now” message, key supporting message elements include: ❖ Respect the work of police of8icers and 8ire8ighters – and protect taxpayers. ❖ Identify how the current pension system is unsustainable, unsound and subject to potential abuse. ❖ Identify the current problems exacerbated by state level police and 8ire union activities and actions by past legislatures. ❖ Support responsible reforms that stop pension abuse, protect pensions so they will be there for future generations of police of8icers and 8ire8ighters and safeguard taxpayer dollars. This messaging approach is supported by scienti4ic research that shows when it comes to police and 4ire4ighter pensions, Floridians are most concerned by issues related to safeguarding tax dollars, reducing state level police and 4ire union in4luence with the state legislature, and preventing speci4ic pension abuses, like the disability determination and those who retire and make a large sum of money at an early age. Research shows our most effective messages must communicate support for these key elements: ❖ ❖ ❖ ❖ Safeguarding tax dollars. Reducing state level police and 4ire union in4luence. Stopping speci4ic abuses of the system. Enacting responsible reforms to protect pensions for future generations. These are the strongest points to make to win the debate and bring people to our side of the issue. Pension Reform Advocacy Kit In this messaging, we are positioned to be advocates for responsible pension reform that curbs abuse in the system and puts the system on a more stable footing for the future. The bottom line is, we support well-‐deserved pensions for police and 8ire8ighters that are sound, secure and sustainable – not only for current of8icers and 8ire8ighters, but for those who choose to protect and serve in the future. Pension Reform Advocacy Kit Short Version: Draft Resolution on Police and Firefighter Pension and Disability Presumption Reforms 2012-‐________ A RESOLUTION OF THE [CITY/TOWN/VILLAGE OF_________] SUPPORTING POLICE OFFICER AND FIREFIGHTER PENSION PLAN AND DISABILITY PRESUMPTION REFORMS TO MAKE THE PLANS SUSTAINABLE, SOUND AND SECURE FOR CURRENT AND FUTURE POLICE OFFICERS AND FIREFIGHTERS. (Please add any additional information speci8ic to the City/Town/Village) WHEREAS, to honor their service now and in years to come, current and future police of4icers and 4ire4ighters in the [City, Town, Village of _________] deserve pension plans that are sound, secure and sustainable; and WHEREAS, [City, Town, Village of _________] opposes unfunded mandates from the Florida Legislature that have created a pension plan system for city police of4icers and 4ire4ighters that is unstable, unsustainable and unreliable for current and future police of4icers and 4ire4ighters; and WHEREAS, state level police and 4ire unions have exercised undue in4luence on the Florida Legislature relating to the provision of city police of4icer and 4ire4ighter pensions and disability presumptions; and WHEREAS, the Florida Legislature has imposed signi4icant unfunded mandates onto the [City, Town, Village] relative to the operation of the [City’s, Town’s, Village’s] police of4icer and 4ire4ighter de4ined bene4it pension plans by mandating minimum pension bene4it levels and mandating the use of revenues to fund pension plan costs; and WHEREAS, unfunded city police of4icer and 4ire4ighter pension mandates from the Florida Legislature result in a direct expenditure of local taxpayer dollars without the bene4it of local taxpayer input; and WHEREAS, the Florida Legislature has provided that health conditions related to heart disease, hypertension or tuberculosis suffered by a police of4icer or 4ire4ighter are presumed to be job related, and these “disability presumptions” are applicable to both workers’ compensation and disability pension claims; and WHEREAS, the Florida Legislature has written and the courts have interpreted the disability presumption laws so favorably toward these employees that cities and other government employers basically cannot overcome the presumption and show the health condition was not work related; and WHEREAS, the Florida Legislature transferred all operational and administrative control of police and 4ire4ighter pension plans from the [City/Town/Village] to a legislatively created board of trustees, a separate legal entity apart from the [City, Town, Village] that exercises broad powers outside the [City’s/ Town’s/Village’s] control, and is not required to provide 4iscal transparency or accountability for substantial amounts of public funds; and WHEREAS, the [City, Town, Village] is seeking immediate mandate relief from the Florida Legislature and requests the Legislature to untie its hands so that it can responsibly address its pension and other personnel issues locally and in a manner that best serves its taxpayers, stops potential pension abuse and protects pensions for current and future generations of police and 4ire4ighters. Pension Reform Advocacy Kit NOW, THEREFORE, BE IT RESOLVED BY THE [COUNCIL/COMMISSION] OF THE [CITY/TOWN/VILLAGE OF __________], FLORIDA: Section 1. That the [City/Town/Village] hereby supports responsible police and 4ire4ighter de4ined bene4it pension and disability presumption reforms to ensure sound, secure and stable pensions will be there for current and future police and 4ire4ighters. Section 2. That the [City/Town/Village] believes local issues should be addressed locally and hereby requests the Florida Legislature to remove itself from the local collective bargaining process between the [City/Town/Village] and its police and 4ire4ighters. Section 3. That the [City/Town/Village] hereby requests the Florida Legislature to remove mandates establishing minimum pension bene4it standards for police and 4ire4ighter pensions, remove the requirement to provide new, extra pension bene4its to police and 4ire4ighters, and allow the [City/Town/ Village] to use insurance premium tax revenues to pay for the level of pension bene4its for police and 4ire4ighters that meets the needs and priorities of the [City/Town/Village]. Section 4. That the [City/Town/Village] hereby requests the Florida Legislature to enact responsible reforms to bring a fairer balance to the application of disability presumption laws relating to certain health conditions suffered by 4ire4ighters and police of4icers by allowing a disability presumption to be overcome by a preponderance of the evidence, and allowing certain individual risk factors to be considered when applying a disability presumption, such as tobacco or alcohol use, weight and diet, genetics and lifestyle choices. Section 5. That the [City/Town/Village] hereby requests the Florida Legislature to impose reasonable 4iscal transparency and accountability standards on legislatively created police and 4ire4ighter pension boards of trustees. Section 6. That the [City/Town/Village] urges the Florida Legislature to pass and the Governor to approve the above responsible reform recommendations relating to police and 4ire4ighter pension plans and disability presumptions in the 2013 legislative session. Section 7. That the [City/Town/Village] Clerk is directed to transmit a copy of this resolution to Governor Rick Scott, the Florida Legislature, and the Florida League of Cities, Inc. Section 8. That this resolution shall be effective upon adoption. PASSED IN OPEN AND REGULAR SESSION OF THE [CITY COUNCIL/ COMMISSION OF THE CITY/TOWN/ VILLAGE OF ___________], FLORIDA, THIS ______________ DAY OF ____________, 2012 Pension Reform Advocacy Kit Long Version: Draft Resolution on Police and Firefighter Pension and Disability Presumption Reforms 2012-‐________ A RESOLUTION OF THE [CITY/TOWN/VILLAGE OF_________] SUPPORTING POLICE OFFICER AND FIREFIGHTER PENSION PLAN AND DISABILITY PRESUMPTION REFORMS TO MAKE THE PLANS SUSTAINABLE, SOUND AND SECURE FOR CURRENT AND FUTURE POLICE OFFICERS AND FIREFIGHTERS. (Please add any additional information speci8ic to the City/Town/Village) WHEREAS, the [City/Town/Village] deeply honors and respects the services provided and sacri4ices made by police of4icers and 4ire4ighters, and desires to provide current and future police of4icers and 4ire4ighters with a pension system that is sound, sustainable and reliable. The [City/Town/Village] also desires to protect local taxpayers from unsustainable and unsound pension levels, and remove undue state level police and 4ire union in4luence and past legislative meddling with local police and 4ire4ighter pensions. The [City/ Town/Village] supports responsible reforms that protect pensions so they will be there for future generations of police of4icers and 4ire4ighters and safeguard taxpayer dollars; and WHEREAS, a priority of the [City/Town/Village] is for the Florida Legislature to address numerous legislative actions it has taken throughout the past 40 years relating to the [City’s/Town’s/Village’s] police and 4ire4ighter de4ined bene4it pension plans. These actions have had signi4icant negative 4iscal impacts on the [City/Town/Village] and its taxpayers. The legislative reforms the [City/Town/Village] is seeking do not provide cities with a “hand-‐out” from or a “bail-‐out” by the Legislature relative to police and 4ire4ighter pensions. Rather, the [City/Town/Village] seeks reasonable and responsible changes to state law to “level the playing 4ield” and allow cities to determine and implement police and 4ire4ighter pension reform at the local level; and WHEREAS, in 2011, the Florida Legislature passed SB 1128, which took important initial steps in reforming city police and 4ire4ighter de4ined bene4it pension plans. The legislation addressed several issues, including prohibiting “spiking” of pension bene4its by restricting the use of overtime and unused sick or annual leave payments for pension purposes; and creating a task force to study issues with various disability presumptions for 4ire4ighters and police and corrections of4icers. Importantly, the 2011 bill did not address the 1999 legislative mandate to perpetually provide “extra” pension bene4its to police and 4ire4ighters with insurance premium tax revenues; and WHEREAS, prior to 1999, cities were largely free to bargain with local police and 4ire4ighter unions, or provide for the non-‐unionized police and 4ire4ighters, the pension bene4its that best 4it the priorities and needs of the city and its police and 4ire4ighters. In 1999, the Florida Legislature amended Chapters 175 and 185, Florida Statutes, relating to city police and 4ire4ighter de4ined bene4it pensions to require that additional city insurance premium tax revenues (taxes on property and casualty insurance premiums) over a base amount be used to provide only “extra” pension bene4its to police of4icers and 4ire4ighters. An “extra” pension bene4it is a pension bene4it that must have been given to police and 4ire4ighters after 1999 and the bene4it must be greater than a pension bene4it provided to general city employees. In aggregate numbers, this mandate has required cities and city taxpayers to provide more than $520 million in new “extra” pension bene4its to police of4icers and 4ire4ighters since 1999. This mandate to keep providing “extra” pension bene4its is not sustainable, rather the [City/Town/Village] needs the 4lexibility to use insurance premium tax revenues for the current or a decreased level of police and 4ire4ighter pension bene4its to meet the [City’s/Town’s/Village’s] budget constraints. Only the Legislature can remove the state mandate for cities to perpetually provide new, “extra” pension bene4its to police and 4ire4ighters; and Pension Reform Advocacy Kit WHEREAS, due to severe budget constraints and rapidly increasing personnel costs, the [City/Town/ Village] has attempted to reduce pension costs for general employees, police and 4ire4ighters. Numerous cities have successfully reduced pension bene4it costs for general employees, but current state laws restrict the ability of cities to reduce pension bene4it levels for police and 4ire4ighters. Until very recently, the state Department of Management Services (“DMS”) required city police and 4ire pension bene4it levels to remain at or above the pension bene4it levels in place in 1999 (many cities provided a high level of police and 4ire pension bene4its in 1999). Add to this requirement the requirement for cities to provide “extra” pension bene4its to police and 4ire4ighters, and the unsustainability of this scheme becomes evident. If a city either reduced a police or 4ire4ighter pension bene4it to a level below the 1999 level or failed to provide “extra” pension bene4its, the pension plan would violate state law and the city would forfeit all insurance premium tax revenues. Thus, when cities have attempted to bring police and 4ire pension costs under control, their actions have been effectively blocked by the DMS; and WHEREAS, the Florida Legislature has provided that health conditions relating to heart disease, hypertension or tuberculosis suffered by a 4ire4ighter, law enforcement of4icer or correctional of4icer are presumed to be job related. These “disability presumptions” are applicable to both workers’ compensation and disability pension claims and have introduced signi4icant opportunities for abuse in the police and 4ire4ighter pension system. Courts have interpreted the presumption laws so favorably toward these employees that cities and other government employers basically cannot overcome the presumption and show the health condition was not work related. This means the state, counties and cities may be inappropriately incurring workers’ compensation and disability pension expenses. On January 1, 2012, a state Task Force on Public Employee Disability Presumptions issued 4indings and recommendations to the Legislature. Changes to presumption laws supported by a majority of Task Force members include: providing the presumption may be overcome by a preponderance of evidence; and allowing certain individual risk factors to be considered when applying the presumption, such as tobacco or alcohol use, weight/diet, genetics and lifestyle choices. These recommendations are designed to bring a fairer balance to the application of presumption laws. It is important to remember that just because an individual does not have a disability presumption does NOT mean he or she cannot make a workers’ compensation or disability pension claim. Rather, it just means that the individual must show the health condition is work related, just like every other employee who makes a workers’ compensation or pension claim; and WHEREAS, beginning in 1986, the Florida Legislature transferred all operational and administrative control of city police and 4ire4ighter de4ined bene4it pensions to legislatively created boards of trustees. These boards of trustees run afoul of local control and are separate legal entities apart from a city that exercise broad powers outside a city’s control, such as directing all investments of the pension fund; hiring plan attorneys, actuaries and other professionals; and making regular and disability pension determinations. In spite of being legislatively created entities and not locally controlled, all costs and expenses, including investment losses, incurred by the boards of trustees of pension plans ultimately become a cost to the city because the city is responsible for paying for all pension bene4its. Additionally, boards of trustees are not required to provide 4iscal transparency or accountability for substantial amounts of public funds. NOW, THEREFORE, BE IT RESOLVED BY THE [COUNCIL/COMMISSION] OF THE [CITY/TOWN/VILLAGE OF __________], FLORIDA: Section 1. That the [City/Town/Village] hereby supports responsible police and 4ire4ighter pension and disability presumption reforms to ensure sound, secure and stable pensions will be there for current and future police and 4ire4ighters. Section 2. That the [City/Town/Village] hereby requests the Florida Legislature to remove the state mandate for cities to perpetually provide new, “extra” pension bene4its to police and 4ire4ighters with insurance premium tax revenues provided under Chapters 175 or 185, Florida Statutes. Section 3. That the [City/Town/Village] hereby requests the Florida Legislature to allow cities to transition to other retirement or pension programs for police and 4ire4ighters and continue to receive insurance premium tax revenues to pay for the retirement expenses. Pension Reform Advocacy Kit Section 4. That the [City/Town/Village] hereby requests the Florida Legislature to amend current statutory disability presumptions for 4ire4ighters, law enforcement of4icers and correctional of4icers relating to health conditions caused by tuberculosis, heart disease or hypertension to allow the presumption to be overcome by a preponderance of evidence, and allow certain individual risk factors to be considered when applying the presumption. Section 5. That the [City/Town/Village] hereby requests the Florida Legislature to require statutorily created police and 4ire4ighter pension boards of trustees to adopt and operate under an administrative expense budget, and require a detailed accounting of pension boards of trustees’ expenses. Section 6. That the [City/Town/Village] hereby requests the Florida Legislature to require police and 4ire4ighter pension boards of trustees and cities to work together for a 4iscally responsible distribution of plan assets if a city must terminate its police or 4ire4ighter retirement plan. Section 7. That the [City/Town/Village] urges the Florida Legislature to pass and the Governor to approve the above responsible reform recommendations relating to police and 4ire4ighter pension plans and disability presumptions in the 2013 legislative session. Section 8. That the [City/Town/Village] Clerk is directed to transmit a copy of this resolution to Governor Rick Scott, the Florida Legislature, and the Florida League of Cities, Inc. Section 9. That this resolution shall be effective upon adoption. PASSED IN OPEN AND REGULAR SESSION OF THE [CITY COUNCIL/ COMMISSION OF THE CITY/TOWN/ VILLAGE OF ___________], FLORIDA, THIS ______________ DAY OF ____________, 2012. Pension Reform Advocacy Kit Draft Resolution Opposing Unfunded State Mandates On Cities 2012-‐________ A RESOLUTION OF THE [CITY/TOWN/VILLAGE OF __________] OPPOSING UNFUNDED STATE MANDATES ON CITIES. WHEREAS, the [City/Town/Village of ___________] is concerned with the negative impacts unfunded state mandates have on the services provided by cities and with the 4iscal impacts they have on local taxpayers; and WHEREAS, an unfunded state mandate is generally de4ined as a state law requiring a city to spend funds or to take an action requiring the expenditure of funds without the state providing an adequate funding source; and WHEREAS, unfunded state mandates continuously force cities to adjust local service priorities and raise local taxes and fees to pay for such unfunded mandates; and WHEREAS, cities are forced to pass the increased costs associated with unfunded state mandates to the citizens and taxpayers of the city; and WHEREAS, the priorities and programs of local citizens of cities are often curtailed when limited local funds must be diverted to pay for unfunded state mandates; and WHEREAS, unfunded state mandates are not fair to local property owners or elected city of4icials who are trying to address local priorities and problems with a limited amount of 4inancial resources; and WHEREAS, prior to 1990 the state legislature passed hundreds of unfunded state mandates on to cities; and WHEREAS, the citizens of Florida passed a state constitutional amendment in 1990 to limit the ability of the state legislature to pass unfunded state mandates on to cities (Article VII, Section 18, Florida Constitution); and WHEREAS, even with the 1990 state constitutional amendment to limit unfunded state mandates, the state legislature continues to pass unfunded mandates under various exceptions to the law; and WHEREAS, the following unfunded state mandates serve as examples of mandates cities across the state are required to comply with or to fund: • Police Of4icer and Fire4ighter Pensions, Chapters 175 and 185, F.S. In 1999, the state legislature mandated that cities use any increases in insurance premium tax revenues to provide additional, “extra pension bene4its” in police of4icer and 4ire4ighter pension plans. These extra bene4its are in addition to bene4its already provided. In aggregate numbers, it is estimated that cities have had to provide over $500 million in “extra pension bene4its” to 4ire4ighters and police of4icers since 1999. • Workers’ Compensation and Disability Pensions, Section 112.18, F.S. This mandate establishes a disability presumption for 4ire4ighters and police of4icers who suffer any health condition caused by hypertension or heart disease. The presumption is that the condition occurred because of the job and the legal presumption is nearly impossible to overcome. This mandate has dramatically increased city funding requirements relating to workers’ compensation and disability pensions. • Group Health Insurance – Section 112.0801, F.S., requires cities, and other governments, to offer subsidized health, hospitalization and other insurance coverage to city retirees. This is a signi4icant mandate, as it requires governments to offer their retirees health and hospitalization insurance at arti4icially low rates to the retiree, thereby making the employer pay the difference. Pension Reform Advocacy Kit • Environmental Regulation – Chapter 403 includes numerous state mandates to cities in the area of environmental regulation. Section 403.064, F.S., requires cities applying for a permit for a domestic wastewater treatment facility to prepare a water reuse feasibility study. Cities must implement water reuse, if feasible, and prepare an annual water reuse report to the Department of Environmental Protection. Section 403.067 is a joint state and federal mandate that requires cities to reduce nonpoint source pollution reductions from stormwater runoff and septic tanks. The cost of retro4its for stormwater alone is estimated in the hundreds of millions. Section 403.0891 requires cities to develop a stormwater water management program within their comprehensive plans. Section 403.702 requires cities to plan and provide solid waste management and requires them to determine the “full cost” for providing resource recovery, recycling and disposal. This section also requires cities to develop and implement recycling programs. • State Building Code – Chapter 553, Part IV, F.S., requires each city to adopt and enforce the state building code. Cities must use employees “certi4ied” by the state to enforce the code. Cities must also add a “surcharge” to every building permit, which is used by the state to oversee the enforcement of the codes. • Effective Public Notice – various Florida statutes require cities to purchase ad space in newspapers as the only method of meeting public notice requirements, even when equally effective and lower cost alternatives are available. • Agency Rules – State agencies often propose rules that have signi4icant 4iscal impacts on cities. Recent examples include irrigation rules proposed by various water management districts, energy ef4icient land use rules and “need” based population analysis rules. In many instances cities must 4ile administrative challenges just to get the agency to reconsider or reduce the 4iscal impact. • Consultants Competitive Negotiations Act – Section 287.055, F.S., requires a city to proceed through an extensive selection and negotiation process when it retains architects, engineers, landscape architects, or surveyors and mappers. Bids are based on quali4ication with no consideration of cost. WHEREAS, the [City/Town/Village of ___________] requests the state legislature to make reasonable and responsible changes to current state laws to eliminate existing unfunded state mandates on cities, and further requests the state legislature to honor the intent of the 1990 state constitutional amendment restricting unfunded state mandates and not pass any unfunded state mandates in the future. NOW, THEREFORE, BE IT RESOLVED BY THE [COUNCIL/COMMISSION] OF THE [CITY/TOWN/VILLAGE OF ___________], FLORIDA: Section 1. That the [City/Town/Village of ___________] hereby requests the Florida Legislature to make reasonable and responsible changes to current laws to eliminate existing unfunded state mandates on cities. Section 2. That the [City/Town/Village of ___________] hereby requests the Florida Legislature to honor the intent of the 1990 state constitutional amendment restricting unfunded state mandates and not pass any unfunded state mandates on cities in the future. Section 3. That the [City/Town/Village of ___________] urges the Governor to approve any legislation making reasonable and responsible changes to current state laws to eliminate existing unfunded state mandates on cities. Section 4. That the [City/Town/Village of ___________] Clerk is directed to transmit a copy of this resolution to Governor Rick Scott, the Florida Legislature, and the Florida League of Cities, Inc. Section 5. That this resolution shall be effective upon adoption. PASSED IN OPEN AND REGULAR SESSION OF THE [COUNCIL/COMMISSION OF THE CITY/TOWN/VILLAGE OF ___________] , FLORIDA, THIS ___________ DAY OF _____________, 2012. Pension Reform Advocacy Kit Please provide a copy of your city’s adopted resolution to: Speaker of the House The Honorable Will W. Weatherford Florida House of Representatives 420 Capitol 402 S. Monroe Street Tallahassee, FL 32399 Senate President The Honorable Don Gaetz Florida Senate 409 Capitol 404 S. Monroe Street Tallahassee, FL 32399 Please also provide a copy of your city’s adopted resolution to your House and Senate delegations. Follow the links below to 4ind contact information for your House/Senate members. House of Representatives http://www.my4loridahouse.com/Sections/Representatives/representatives.aspx Senate http://www.4lsenate.gov/Senators/ Please also provide a copy to: Allison Payne Florida League of Cities Fax (850) 222-‐3806 or E-‐mail: [email protected]
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