The City of Hollywood’s non-compliance in properly funding its Police Officers’ Retirement System could cost the municipality, and its taxpayers, $5.5 million in State Premium tax money for 2014, 2015, 2016 and 2017, according to the Florida Division of Retirement and an actuarial report prepared for the City.
By failing to deposit $4.1 million into the Trust to cover the full amounts of the 13th check distributions in 2014 and 2015, Chapter 185 monies are being withheld, and additional tax revenues may be withheld as well.
“The City continues to kick the can with no real solutions,” Broward County PBA President Jeff Marano said.
The City of Hollywood has been notified that it is advantageous for it to deposit the $4.1 million into the Trust because the State Premium tax money in the amount of $5.5 million would be released in order to offset the City’s required contribution. The City of Hollywood was also notified that it is contributing to the Trust as if it is receiving the State Premium tax money, which has created a funding deficiency. If the situation is not corrected in a timely manner, additional funding pressures will be placed on the City as the plan’s sponsor, which could be up to an additional $50 million in lost revenue.