Please find enclosed the annual disclosures that satisfy the October 1, 2016 financial reporting requirements made under Section

April 17, 2017 VIA EMAIL Ms. Julie Enright, Plan Administrator City of Titusville Post Office Box 2806 Titusville, FL 32781-2806 Re: City of Titusville Police Officers' and Firefighters' Pension Plan Senate Bill 534 (Section 112.664, Florida Statutes) Compliance Dear Julie: Please find enclosed the annual disclosures that satisfy the October 1, 2016 financial reporting requirements made under Section 112.664. Our office will submit this information electronically to the Department of Management Services. However, it is important for you to be aware that this report must also be made available on the Plan or Plan Sponsor s website, if such website exists. A deadline for this website publication is not made clear in the law. In addition to the enclosed report, the Plan or Plan Sponsor's website must provide a link to the Division of Retirement's Actuarial Summary Fact Sheet for the Plan, and also report the previous five years' assumed and actual rates of return, along with their respective asset allocations. The Board should contact its Investment Consultant for this information. If there are any questions, concerns, or comments about any of the items contained in this report, please feel free to contact me. Respectfully submitted, Foster & Foster, Inc. By: Bradley R. Heinrichs, FSA, EA, MAAA Enrolled Actuary #17-6901 BRH/lke Enclosures cc via email: Scott R. Christiansen, Board Attorney 13420 Parker Commons Blvd., Suite 104 Fort Myers, FL 33912 (239) 433-5500 Fax (239) 481-0634 www.foster-foster.com

CITY OF TITUSVILLE POLICE OFFICERS' AND FIREFIGHTERS' PENSION PLAN SECTION 112.664, FLORIDA STATUTES COMPLIANCE With respect to the reporting standards for defined benefit retirement plans or systems contained in Section 112.664(1), F.S., the actuarial disclosures required under this section were prepared and completed by me or under my direct supervision and I acknowledge responsibility for the results. To the best of my knowledge, the results are complete and accurate, and in my opinion, meet the requirements of Section 112.664(1), Florida Statutes, and Rule 60T-1.0035, Florida Administrative Code. By: Date: 4/17/2017 Bradley R. Heinrichs, FSA, EA, MAAA Enrolled Actuary #17-6901

INTRODUCTION Section 112.664, F.S. Requirements When reviewing the following schedules, please note the following: 1) The purpose of producing this report is solely to satisfy the requirements set forth by Section 112.664, Florida Statutes, and is mandatory for every Florida public pension fund, excluding the Florida Retirement System (FRS). 2) None of the schedules shown have any impact on the funding requirements of the Plan. These schedules are for statutory compliance purposes only. 3) In the schedules that follow, the columns labeled ACTUAL represent the final recorded GASB 67/68 results. The columns labeled HYPOTHETICAL illustrate what the results would have been if different assumptions were used. 4) It is our opinion that the Plan s actual assumptions utilized in the October 1, 2016 Actuarial Valuation Report, as adopted by the Board of Trustees, are reasonable individually and in the aggregate, and represent our best estimate of future Plan experience. 5) The Number of Years Expected Benefit Payments Sustained calculated in Section II: Asset Sustainability should not be interpreted as the number of years the Plan has left until it is insolvent. This calculation is required by 112.664, Florida Statutes, but the numeric result is irrelevant, since in its calculation we are to assume there will be no further contributions to the Fund. As long as the Actuarially Determined Contribution is made each year the Plan will never become insolvent. City of Titusville Police Officers' and Firefighters' Pension Plan FOSTER & FOSTER 3

SECTION I - GASB 67/68 Section 112.664, F.S. Requirements GASB 67: SCHEDULE OF CHANGES IN NET PENSION LIABILITY FISCAL YEAR SEPTEMBER 30, 2016 ACTUAL HYPOTHETICAL 8.00% 6.00% 10.00% RP-2000 RP-2000 RP-2000 Generational Generational Generational Total Pension Liability Service Cost 937,776 1,510,357 658,375 Interest 4,597,357 4,529,576 4,877,649 Change in Excess State Money (214,112) (214,112) (214,112) Changes of Benefit Terms (4,647) (5,045) (4,522) Differences Between Expected and Actual Experience 156,069 246,634 17,358 Changes of Assumptions 1,822,308 (508,100) (503,855) Benefit Payments, Including Refunds of Employee Contributions (3,999,048) (3,999,048) (3,999,048) Net Change in Total Pension Liability 3,295,703 1,560,262 831,845 Total Pension Liability - Beginning 58,747,475 76,201,254 50,336,276 Total Pension Liability - Ending (a) $ 62,043,178 $ 77,761,516 $ 51,168,121 Plan Contributions - Employer 1,925,864 1,925,864 1,925,864 Contributions - State 731,350 731,350 731,350 Contributions - Employee 513,866 513,866 513,866 Net Investment Income 5,588,136 5,588,136 5,588,136 Benefit Payments, Including Refunds of Employee Contributions (3,999,048) (3,999,048) (3,999,048) Administrative Expenses (72,096) (72,096) (72,096) Net Change in Plan 4,688,072 4,688,072 4,688,072 Plan - Beginning 48,598,096 48,598,096 48,598,096 Plan - Ending (b) $ 53,286,168 $ 53,286,168 $ 53,286,168 Net Pension Liability - Ending (a) - (b) $ 8,757,010 $ 24,475,348 $ (2,118,047) GASB 68: PENSION EXPENSE FISCAL YEAR SEPTEMBER 30, 2016 ACTUAL HYPOTHETICAL 8.00% 6.00% 10.00% RP-2000 RP-2000 RP-2000 Generational Generational Generational Pension Expense $ 1,617,853 $ 1,841,911 $ 644,840 City of Titusville Police Officers' and Firefighters' Pension Plan FOSTER & FOSTER 4

SECTION II - ASSET SUSTAINABILITY Section 112.664, F.S. Requirements PROJECTION OF THE NUMBER OF YEARS ASSETS WILL SUSTAIN BENEFIT PAYMENTS Table 1 Plan Assumptions: 8.00% and RP-2000 Generational Mortality Fiscal Year Beginning 10/1 Projected Beginning Projected Total Contributions Projected Benefit Payments* Projected Administrative Expense Projected Investment Earnings Projected Ending 2016 53,173,633-5,199,557-4,045,908 52,019,984 2017 52,019,984-4,169,837-3,994,805 51,844,952 2018 51,844,952-4,283,908-3,976,240 51,537,284 2019 51,537,284-4,401,137-3,946,937 51,083,084 2020 51,083,084-4,651,236-3,900,597 50,332,445 2021 50,332,445-4,761,662-3,836,129 49,406,912 2022 49,406,912-4,835,827-3,759,120 48,330,205 2023 48,330,205-4,961,919-3,667,940 47,036,226 2024 47,036,226-5,053,470-3,560,759 45,543,515 2025 45,543,515-5,204,604-3,435,297 43,774,208 2026 43,774,208-5,284,428-3,290,560 41,780,340 2027 41,780,340-5,298,061-3,130,505 39,612,784 2028 39,612,784-5,340,935-2,955,385 37,227,234 2029 37,227,234-5,330,301-2,764,967 34,661,900 2030 34,661,900-5,365,439-2,558,334 31,854,795 2031 31,854,795-5,343,185-2,334,656 28,846,266 2032 28,846,266-5,342,195-2,094,013 25,598,084 2033 25,598,084-5,316,358-1,835,192 22,116,918 2034 22,116,918-5,287,060-1,557,871 18,387,729 2035 18,387,729-5,267,701-1,260,310 14,380,338 2036 14,380,338-5,214,060-941,865 10,108,143 2037 10,108,143-5,148,111-602,727 5,562,759 2038 5,562,759-5,075,504-242,001 729,256 2039 729,256-5,016,791 - - - *All DROP Balances paid in 2016. Number of Years Expected Benefit Payments Sustained: 23.15 This projection assumes no further contributions, assumes no further benefit accruals, and assumes Market Value of Assets earn 8.00% interest. It is important to note that as long as the Actuarially Determined Contribution is made each year, the Plan will never become insolvent. Furthermore, State and local laws mandate that the Actuarially Determined Contribution be made each year. City of Titusville Police Officers' and Firefighters' Pension Plan FOSTER & FOSTER 3

SECTION II - ASSET SUSTAINABILITY Section 112.664, F.S. Requirements PROJECTION OF THE NUMBER OF YEARS ASSETS WILL SUSTAIN BENEFIT PAYMENTS Table 2 Hypothetical Assumptions: 6.00% and RP-2000 Generational Mortality Fiscal Year Beginning 10/1 Projected Beginning Projected Total Contributions Projected Benefit Payments* Projected Administrative Expense Projected Investment Earnings Projected Ending 2016 53,173,633-5,199,557-3,034,431 51,008,507 2017 51,008,507-4,169,837-2,935,415 49,774,085 2018 49,774,085-4,283,908-2,857,928 48,348,105 2019 48,348,105-4,401,137-2,768,852 46,715,820 2020 46,715,820-4,651,236-2,663,412 44,727,996 2021 44,727,996-4,761,662-2,540,830 42,507,164 2022 42,507,164-4,835,827-2,405,355 40,076,692 2023 40,076,692-4,961,919-2,255,744 37,370,517 2024 37,370,517-5,053,470-2,090,627 34,407,674 2025 34,407,674-5,204,604-1,908,322 31,111,392 2026 31,111,392-5,284,428-1,708,151 27,535,115 2027 27,535,115-5,298,061-1,493,165 23,730,219 2028 23,730,219-5,340,935-1,263,585 19,652,869 2029 19,652,869-5,330,301-1,019,263 15,341,831 2030 15,341,831-5,365,439-759,547 10,735,939 2031 10,735,939-5,343,185-483,861 5,876,615 2032 5,876,615-5,342,195-192,331 726,751 2033 726,751-5,316,358 - - - *All DROP Balances paid in 2016. Number of Years Expected Benefit Payments Sustained: 17.14 This projection assumes no further contributions, assumes no further benefit accruals, and assumes Market Value of Assets earn 6.00% interest. It is important to note that as long as the Actuarially Determined Contribution is made each year, the Plan will never become insolvent. Furthermore, State and local laws mandate that the Actuarially Determined Contribution be made each year. City of Titusville Police Officers' and Firefighters' Pension Plan FOSTER & FOSTER 4

SECTION II - ASSET SUSTAINABILITY Section 112.664, F.S. Requirements PROJECTION OF THE NUMBER OF YEARS ASSETS WILL SUSTAIN BENEFIT PAYMENTS Table 3 Hypothetical Assumptions: 10.00% and RP-2000 Generational Mortality Fiscal Year Beginning 10/1 Projected Beginning Projected Total Contributions Projected Benefit Payments* Projected Administrative Expense Projected Investment Earnings Projected Ending 2016 53,173,633-5,199,557-5,057,385 53,031,461 2017 53,031,461-4,169,837-5,094,654 53,956,278 2018 53,956,278-4,283,908-5,181,432 54,853,802 2019 54,853,802-4,401,137-5,265,323 55,717,988 2020 55,717,988-4,651,236-5,339,237 56,405,989 2021 56,405,989-4,761,662-5,402,516 57,046,843 2022 57,046,843-4,835,827-5,462,893 57,673,909 2023 57,673,909-4,961,919-5,519,295 58,231,285 2024 58,231,285-5,053,470-5,570,455 58,748,270 2025 58,748,270-5,204,604-5,614,597 59,158,263 2026 59,158,263-5,284,428-5,651,605 59,525,440 2027 59,525,440-5,298,061-5,687,641 59,915,020 2028 59,915,020-5,340,935-5,724,455 60,298,540 2029 60,298,540-5,330,301-5,763,339 60,731,578 2030 60,731,578-5,365,439-5,804,886 61,171,025 2031 61,171,025-5,343,185-5,849,943 61,677,783 2032 61,677,783-5,342,195-5,900,669 62,236,257 2033 62,236,257-5,316,358-5,957,808 62,877,707 2034 62,877,707-5,287,060-6,023,418 63,614,065 2035 63,614,065-5,267,701-6,098,021 64,444,385 2036 64,444,385-5,214,060-6,183,736 65,414,061 2037 65,414,061-5,148,111-6,284,001 66,549,951 2038 66,549,951-5,075,504-6,401,220 67,875,667 2039 67,875,667-5,016,791-6,536,727 69,395,603 2040 69,395,603-4,936,980-6,692,711 71,151,334 2041 71,151,334-4,841,040-6,873,081 73,183,375 2042 73,183,375-4,741,761-7,081,249 75,522,863 2043 75,522,863-4,626,576-7,320,958 78,217,245 2044 78,217,245-4,506,837-7,596,383 81,306,791 2045 81,306,791-4,372,591-7,912,050 84,846,250 2046 84,846,250-4,234,564-8,272,897 88,884,583 2047 88,884,583-4,090,186-8,683,949 93,478,346 2048 93,478,346-3,934,955-9,151,087 98,694,478 2049 98,694,478-3,773,175-9,680,789 104,602,092 2050 104,602,092-3,603,821-10,280,018 111,278,289 2051 111,278,289-3,428,994-10,956,379 118,805,674 2052 118,805,674-3,248,766-11,718,129 127,275,037 2053 127,275,037-3,065,686-12,574,219 136,783,570 2054 136,783,570-2,880,391-13,534,337 147,437,516 2055 147,437,516-2,695,303-14,608,986 159,351,199 2056 159,351,199-2,511,855-15,809,527 172,648,871 2057 172,648,871-2,331,277-17,148,323 187,465,917 2058 187,465,917-2,154,883-18,638,848 203,949,882 2059 203,949,882-1,983,434-20,295,817 222,262,265 2060 222,262,265-1,818,390-22,135,307 242,579,182 2061 242,579,182-1,660,356-24,174,900 265,093,726 2062 265,093,726-1,509,483-26,433,898 290,018,141 2063 290,018,141-1,366,431-28,933,493 317,585,203 2064 317,585,203-1,231,958-31,696,922 348,050,167 2065 348,050,167-1,106,197-34,749,707 381,693,677 City of Titusville Police Officers' and Firefighters' Pension Plan FOSTER & FOSTER 5

SECTION II - ASSET SUSTAINABILITY Section 112.664, F.S. Requirements PROJECTION OF THE NUMBER OF YEARS ASSETS WILL SUSTAIN BENEFIT PAYMENTS Table 3 Hypothetical Assumptions: 10.00% and RP-2000 Generational Mortality Fiscal Year Beginning 10/1 Projected Beginning Projected Total Contributions Projected Benefit Payments* Projected Administrative Expense Projected Investment Earnings Projected Ending 2066 381,693,677-988,986-38,119,918 418,824,609 2067 418,824,609-880,188-41,838,452 459,782,873 2068 459,782,873-780,042-45,939,285 504,942,116 2069 504,942,116-689,185-50,459,752 554,712,683 2070 554,712,683-607,147-55,440,911 609,546,447 2071 609,546,447-533,232-60,927,983 669,941,198 2072 669,941,198-466,694-66,970,785 736,445,289 2073 736,445,289-406,668-73,624,196 809,662,817 2074 809,662,817-352,396-80,948,662 890,259,083 2075 890,259,083-303,672-89,010,725 978,966,136 2076 978,966,136-260,211-97,883,603 1,076,589,528 2077 1,076,589,528-221,382-107,647,884 1,184,016,030 2078 1,184,016,030-186,967-118,392,255 1,302,221,318 2079 1,302,221,318-156,521-130,214,306 1,432,279,103 2080 1,432,279,103-129,687-143,221,426 1,575,370,842 2081 1,575,370,842-106,177-157,531,775 1,732,796,440 2082 1,732,796,440-85,882-173,275,350 1,905,985,908 2083 1,905,985,908-68,684-190,595,157 2,096,512,381 2084 2,096,512,381-54,378-209,648,519 2,306,106,522 2085 2,306,106,522-42,652-230,608,520 2,536,672,390 2086 2,536,672,390-33,138-253,665,582 2,790,304,834 2087 2,790,304,834-25,519-279,029,207 3,069,308,522 2088 3,069,308,522-19,493-306,929,878 3,376,218,907 2089 3,376,218,907-14,757-337,621,153 3,713,825,303 2090 3,713,825,303-11,098-371,381,975 4,085,196,180 2091 4,085,196,180-8,285-408,519,204 4,493,707,099 2092 4,493,707,099-6,149-449,370,402 4,943,071,352 2093 4,943,071,352-4,536-494,306,908 5,437,373,724 2094 5,437,373,724-3,317-543,737,207 5,981,107,614 2095 5,981,107,614-2,405-598,110,641 6,579,215,850 2096 6,579,215,850-1,728-657,921,499 7,237,135,621 2097 7,237,135,621-1,228-723,713,501 7,960,847,894 2098 7,960,847,894-861 - 796,084,746 8,756,931,779 2099 8,756,931,779-600 - 875,693,148 9,632,624,327 2100 9,632,624,327-412 - 963,262,412 10,595,886,327 2101 10,595,886,327-278 - 1,059,588,619 11,655,474,668 2102 11,655,474,668-186 - 1,165,547,458 12,821,021,940 2103 12,821,021,940-122 - 1,282,102,188 14,103,124,006 2104 14,103,124,006-78 - 1,410,312,397 15,513,436,325 2105 15,513,436,325-50 - 1,551,343,630 17,064,779,905 2106 17,064,779,905-31 - 1,706,477,989 18,771,257,863 2107 18,771,257,863-19 - 1,877,125,785 20,648,383,629 2108 20,648,383,629-12 - 2,064,838,362 22,713,221,979 2109 22,713,221,979-7 - 2,271,322,198 24,984,544,170 2110 24,984,544,170-4 - 2,498,454,417 27,482,998,583 2111 27,482,998,583-2 - 2,748,299,858 30,231,298,439 2112 30,231,298,439-1 - 3,023,129,844 33,254,428,282 2113 33,254,428,282-1 - 3,325,442,828 36,579,871,109 2114 36,579,871,109 - - - 3,657,987,111 40,237,858,220 *All DROP Balances paid in 2016. Number of Years Expected Benefit Payments Sustained: 999.99 This projection assumes no further contributions, assumes no further benefit accruals, and assumes Market Value of Assets earn 10.00% interest. It is important to note that as long as the Actuarially Determined Contribution is made each year, the Plan will never become insolvent. Furthermore, State and local laws mandate that the Actuarially Determined Contribution be made each year. City of Titusville Police Officers' and Firefighters' Pension Plan FOSTER & FOSTER 6

SECTION III - FUNDING ACTUAL AND HYPOTHETICAL CONTRIBUTIONS APPLICABLE TO THE FISCAL YEAR ENDING SEPTEMBER 30, 2018 Valuation Date: 10/1/2016 Section 112.664, F.S. Requirements ACTUAL HYPOTHETICAL 8.00% 6.00% 10.00% RP-2000 RP-2000 RP-2000 Generational Generational Generational Total Required Contribution (Fixed $) $2,896,818 $4,376,659 $1,628,079 Total Required Contribution (% of Payroll) 39.0% 60.0% 22.0% Expected Member Contribution 483,549 478,900 488,199 Expected State Money 731,350 731,350 731,350 Expected Sponsor Contribution (Fixed $) $1,681,919 $3,166,409 $408,530 Expected Sponsor Contribution (% of Payroll) 22.0% 43.0% 5.0% ASSETS Actuarial Value ¹ 53,979,489 53,979,489 53,979,489 Market Value ¹ 53,173,633 53,173,633 53,173,633 LIABILITIES Present Value of Benefits Active Members Retirement Benefits 14,188,309 21,214,218 9,996,900 Disability Benefits 1,236,490 1,706,341 932,580 Death Benefits 820,417 1,176,330 604,820 Vested Benefits 2,903,880 4,697,732 1,905,299 Refund of Contributions 371,632 395,925 349,899 Service Retirees 37,599,333 45,815,389 31,759,103 DROP Retirees ¹ 3,588,594 4,230,962 3,150,284 Beneficiaries 3,268,382 3,918,148 2,797,793 Disability Retirees 1,983,218 2,415,139 1,677,519 Terminated Vested 2,980,036 4,066,583 2,267,505 Excess State Monies Reserve 0 0 0 Total: 68,940,291 89,636,767 55,441,702 Present Value of Future Salaries 50,909,615 56,953,942 46,043,993 Present Value of Future Member Contributions 3,309,125 3,702,006 2,992,860 Total Normal Cost 937,289 1,467,819 627,987 Present Value of Future Normal Costs (Entry Age Normal) 6,293,364 11,103,303 3,790,364 Total Actuarial Accrued Liability ¹ 62,646,927 78,533,464 51,651,338 Unfunded Actuarial Accrued 8,667,438 24,553,975 (2,328,151) Liability (UAAL) City of Titusville Police Officers' and Firefighters' Pension Plan FOSTER & FOSTER 7