CITY OF KISSIMMEE MUNICIPAL POLICE OFFICERS RETIREMENT FUND ACTUARIAL VALUATION AS OF OCTOBER 1, 2017

CITY OF KISSIMMEE MUNICIPAL POLICE OFFICERS RETIREMENT FUND ACTUARIAL VALUATION AS OF OCTOBER 1, 2017 CONTRIBUTIONS APPLICABLE TO THE PLAN YEAR ENDED SEPTEMBER 30, 2018, AND THE CITY'S FISCAL YEAR ENDED SEPTEMBER 30, 2019

February 2, 2018 Board of Trustees City of Kissimmee Municipal Police Officers Retirement Plan 101 North Church Street Kissimmee, FL 34741-5013 Re: City of Kissimmee Municipal Police Officers Retirement Plan Dear Board: We are pleased to present to the Board this report of the annual actuarial valuation of the City of Kissimmee Municipal Police Officers Retirement Plan. Included are the related results for GASB Statements No. 67 and No. 68. The funding valuation was performed to determine whether the assets and contributions are sufficient to provide the prescribed benefits and to develop the appropriate funding requirements for the applicable plan year. The calculation of the liability for GASB results was performed for the purpose of satisfying the requirements of GASB Statements No. 67 and No. 68. Use of the results for other purposes may not be applicable and may produce significantly different results. The valuations have been conducted in accordance with generally accepted actuarial principles and practices, including the applicable Actuarial Standards of Practice as issued by the Actuarial Standards Board, and reflects laws and regulations issued to date pursuant to the provisions of Chapters 112 and 185, Florida Statutes, as well as applicable federal laws and regulations. In our opinion, the assumptions used in this valuation, as adopted by the Board of Trustees, represent reasonable expectations of anticipated plan experience. Future actuarial measurements may differ significantly from the current measurements presented in this report for a variety of reasons including: changes in applicable laws, changes in plan provisions, changes in assumptions, or plan experience differing from expectations. In conducting the valuations, we have relied on personnel, plan design, and asset information supplied by the City of Kissimmee, financial reports prepared by the custodian bank, and the actuarial assumptions and methods described in the Actuarial Assumptions section of this report. While we cannot verify the accuracy of all this information, the supplied information was reviewed for consistency and reasonableness. As a result of this review, we have no reason to doubt the substantial accuracy of the information and believe that it has produced appropriate results. This information, along with any adjustments or modifications, is summarized in various sections of this report. 13420 Parker Commons Blvd., Suite 104 Fort Myers, FL 33912 (239) 433-5500 Fax (239) 481-0634 www.foster-foster.com

The total pension liability, net pension liability, and certain sensitivity information shown in this report are based on an actuarial valuation performed as of October 1, 2016. The total pension liability was rolled-forward from the valuation date to the plan s fiscal year ending September 30, 2017 using generally accepted actuarial principles. It is our opinion that the assumptions used for this purpose are internally consistent, reasonable, and comply with the requirements under GASB No. 67 and No. 68. The undersigned is familiar with the immediate and long-term aspects of pension valuations, and meets the Qualification Standards of the American Academy of Actuaries necessary to render the actuarial opinions contained herein. All of the sections of this report are considered an integral part of the actuarial opinions. To our knowledge, no associate of Foster & Foster, Inc. working on valuations of the program has any direct financial interest or indirect material interest in the City of Kissimmee, nor does anyone at Foster & Foster, Inc. act as a member of the Board of Trustees of the City of Kissimmee Municipal Police Officers Retirement Plan. Thus, there is no relationship existing that might affect our capacity to prepare and certify this actuarial report. If there are any questions, concerns, or comments about any of the items contained in this report, please contact me at 239-433-5500. Respectfully submitted, Foster & Foster, Inc. By: Douglas H. Lozen, EA, MAAA Enrolled Actuary #17-7778 DHL/lke Enclosures

TABLE OF CONTENTS Section Title Page I Introduction a. Summary of Report 5 b. Contribution Impact of Annual Changes 7 c. Changes Since Prior Report 8 d. Comparative Summary of Principal Valuation Results 9 II Valuation Information a. Reconciliation of the Unfunded Actuarial Accrued Liabilities 15 b. Detailed Actuarial (Gain)/Loss Analysis 16 c. Actuarial Assumptions and Methods 17 d. Valuation Notes 19 III Trust Fund 20 IV Member Statistics a. Statistical Data 26 b. Age and Service Distribution 27 c. Member Reconciliation 28 V Summary of Plan Provisions 29 VI Governmental Accounting Standards Board Statements 32 Disclosure Information City of Kissimmee Municipal Police Officers' Retirement Fund FOSTER & FOSTER 4

SUMMARY OF REPORT The regular annual actuarial valuation of the City of Kissimmee Municipal Police Officers Retirement Fund, performed as of October 1, 2017, has been completed and the results are presented in this Report. The results of this valuation are applicable to the Plan year ending September 30, 2018, and the City's fiscal year ending September 30, 2019. The sponsor (City and State) contributions have been adjusted with interest to reflect a lump sum deposit on December 31, 2018. The contribution requirements, compared with those developed in October 1, 2016, actuarial valuation, are as follows: Valuation Date Applicable Plan Year End 10/1/2017 9/30/2018 10/1/2016 9/30/2017 Total Required Contribution % of Total Annual Payroll 37.26% 37.83% Member Contributions (Est.) % of Total Annual Payroll 3.93% 3.84% City and State Required Contribution % of Total Annual Payroll 33.33% 33.99% State Contribution (est.) ¹ 655,117 655,117 % of Total Annual Payroll 8.14% 8.14% Balance from City % of Total Annual Payroll 25.19% 25.85% ¹ The City may use up to $1,177,117 in State Contributions for determining its minimum funding requirements. For budgeting purposes, the required Sponsor Contribution (City and State) is 33.33% of Pensionable Earnings for the plan year ending September 30, 2018. The precise City requirement for the year is this amount, less actual State Contributions (up to the maximum $1,177,117). Experience since the prior valuation was less favorable than expected, relative to the Plan s actuarial assumptions. The primary sources of unfavorable experience included average increases in pensionable compensation that exceeded the assumption, a 7.88% investment return (Actuarial Asset Basis), falling short of the 8.00% assumption, and unfavorable retirement experience. These losses were partially offset by favorable turnover experience, and greater than expected retiree mortality. City of Kissimmee Municipal Police Officers' Retirement Fund FOSTER & FOSTER 5

In spite of the net unfavorable experience, the City s expected funding obligation decreased slightly due to a larger expected increase in valuation payroll. The increase in payroll resulted in a decrease in the UAAL amortization payment, when expressed as a percentage of payroll. The balance of this Report presents additional details of the actuarial valuation and the general operation of the Fund. The undersigned would be pleased to meet with the Board of Trustees in order to discuss the Report and any pending questions concerning its contents. Respectfully submitted, FOSTER & FOSTER, INC. By: Douglas H. Lozen, EA, MAAA By: Christine M. O Neal FSA, EA, MAAA City of Kissimmee Municipal Police Officers' Retirement Fund FOSTER & FOSTER 6

CONTRIBUTION IMPACT OF ANNUAL CHANGES (1) Contribution Determined as of October 1, 2016 26.04% (2) Summary of Contribution Impact by component: Change in State Contribution Percentage -0.2% Change in Normal Cost Rate -0.2% Change in Administrative Expense Percentage -0.1% Payroll Change Effect on UAAL Amortization -0.8% Investment Return (Actuarial Asset Basis) 0.1% Salary Increases 0.8% Active Decrements -0.1% Inactive Mortality 0.2% Change in Expected Member Contribution Rate -0.1% Greater than Expected Decrease in UAAL -0.1% Other -0.3% Total Change in Contribution -0.85% (3) Contribution Determined as of October 1, 2017 25.19% City of Kissimmee Municipal Police Officers' Retirement Fund FOSTER & FOSTER 7

CHANGES SINCE PRIOR VALUATION Plan Changes There were no changes in benefits since the prior valuation. Actuarial Assumption/Method Changes Since Prior Valuation Pursuant to the provisions of Chapter 2015-157, Laws of Florida, the mortality assumption reflects a change from the rates utilized by the Florida Retirement System in the July 1, 2015 valuation to those utilized in the July 1, 2016 valuation. A description of this change is found in the Actuarial Assumptions and Funding Methods section of this report. City of Kissimmee Municipal Police Officers' Retirement Fund FOSTER & FOSTER 8

COMPARATIVE SUMMARY OF PRINCIPAL VALUATION RESULTS A. Participant Data 10/1/2017 10/1/2016 Actives 119 117 Service Retirees 85 85 DROP Retirees 6 7 Beneficiaries 9 6 Disability Retirees 10 10 Terminated Vested 24 20 Total 253 245 Total Annual Payroll $8,046,818 $7,324,589 Payroll Under Assumed Ret. Age 8,046,818 7,324,589 Annual Rate of Payments to: Service Retirees 2,813,037 2,680,272 DROP Retirees 334,873 450,397 Beneficiaries 130,738 104,856 Disability Retirees 202,849 201,825 Terminated Vested 165,361 129,040 B. Assets Actuarial Value (AVA) ¹ 61,903,108 57,605,150 Market Value (MVA) ¹ 61,827,291 56,212,767 C. Liabilities Present Value of Benefits Actives Retirement Benefits 40,588,543 36,105,608 Disability Benefits 1,322,325 1,232,558 Death Benefits 121,853 254,610 Vested Benefits 1,121,821 1,105,152 Refund of Contributions 138,633 125,682 Service Retirees 31,489,790 29,826,574 DROP Retirees ¹ 5,325,974 6,397,878 Beneficiaries 1,205,046 906,978 Disability Retirees 2,319,834 2,323,468 Terminated Vested 1,145,221 739,346 Share Plan Balances ¹ 229,745 218,479 Total 85,008,785 79,236,333 City of Kissimmee Municipal Police Officers' Retirement Fund FOSTER & FOSTER 9

C. Liabilities - (Continued) 10/1/2017 10/1/2016 Present Value of Future Salaries 63,109,889 58,645,260 Present Value of Future Member Contributions 2,481,075 2,251,978 Normal Cost (Retirement) 1,718,000 1,551,319 Normal Cost (Disability) 117,309 109,141 Normal Cost (Death) 9,894 21,286 Normal Cost (Vesting) 91,482 94,893 Normal Cost (Refunds) 19,888 20,323 Total Normal Cost 1,956,573 1,796,962 Present Value of Future Normal Costs 14,556,204 13,610,896 Accrued Liability (Retirement) 27,589,219 24,067,688 Accrued Liability (Disability) 501,267 447,321 Accrued Liability (Death) 57,755 120,753 Accrued Liability (Vesting) 560,659 548,740 Accrued Liability (Refunds) 28,071 28,212 Accrued Liability (Inactives) ¹ 41,485,865 40,194,244 Share Plan Balances ¹ 229,745 218,479 Total Actuarial Accrued Liability (EAN AL) 70,452,581 65,625,437 Unfunded Actuarial Accrued Liability (UAAL) 8,549,473 8,020,287 Funded Ratio (AVA / EAN AL) 87.9% 87.8% City of Kissimmee Municipal Police Officers' Retirement Fund FOSTER & FOSTER 10

D. Actuarial Present Value of Accrued Benefits 10/1/2017 10/1/2016 Vested Accrued Benefits Inactives + Share Plan Balances ¹ 41,715,610 40,412,723 Actives 15,270,165 12,709,026 Member Contributions 2,440,306 2,308,041 Total 59,426,081 55,429,790 Non-vested Accrued Benefits 1,211,412 1,391,703 Total Present Value Accrued Benefits (PVAB) 60,637,493 56,821,493 Funded Ratio (MVA / PVAB) 102.0% 98.9% Increase (Decrease) in Present Value of Accrued Benefits Attributable to: Plan Amendments 0 Assumption Changes 0 New Accrued Benefits 2,510,694 Benefits Paid (3,115,782) Interest 4,421,088 Other 0 Total 3,816,000 City of Kissimmee Municipal Police Officers' Retirement Fund FOSTER & FOSTER 11

Valuation Date 10/1/2017 10/1/2016 Applicable to Fiscal Year Ending 9/30/2018 9/30/2017 E. Pension Cost Normal Cost (with interest) $2,152,230 $1,976,658 % of Total Annual Payroll ² 26.75 26.99 Administrative Expenses (with interest) 46,803 51,007 % of Total Annual Payroll ² 0.58 0.70 Payment Required to Amortize Unfunded Actuarial Accrued Liability over 30 years (as of 10/1/2017, with interest) 799,002 743,073 % of Total Annual Payroll ² 9.93 10.14 Total Required Contribution 2,998,035 2,770,738 % of Total Annual Payroll ² 37.26 37.83 Expected Member Contributions 297,732 366,229 % of Total Annual Payroll ² 3.93 3.84 Expected City and State Contribution 2,700,303 2,404,509 % of Total Annual Payroll ² 33.33 33.99 F. Past Contributions Plan Years Ending: 9/30/2017 City and State Requirement 2,625,718 Actual Contributions Made: Members (excluding buyback) 302,194 City 1,970,601 State 655,117 Total 2,927,912 G. Net Actuarial (Gain)/Loss 830,830 ¹ The asset values and liabilities include accumulated DROP and Share Plan Balances as of 9/30/2017 and 9/30/2016. ² Contributions developed as of 10/1/2017 are expressed as a percentage of total annual payroll at 10/1/2017 of $8,046,818. City of Kissimmee Municipal Police Officers' Retirement Fund FOSTER & FOSTER 12

H. Schedule Illustrating the Amortization of the Total Unfunded Actuarial Accrued Liability as of: Year Projected Unfunded Actuarial Accrued Liability 2017 8,549,473 2018 8,448,956 2019 8,328,786 2026 6,771,438 2033 3,289,750 2036 877,095 2047 0 I. (i) 3 Year Comparison of Actual and Assumed Salary Increases Actual Assumed Year Ended 9/30/2017 11.44% 7.00% Year Ended 9/30/2016 5.16% 7.00% Year Ended 9/30/2015 10.31% 7.00% (ii) 3 Year Comparison of Investment Return on Actuarial Value Actual Assumed Year Ended 9/30/2017 7.88% 8.00% Year Ended 9/30/2016 8.17% 8.00% Year Ended 9/30/2015 9.79% 8.00% (iii) Average Annual Payroll Growth (a) Payroll as of: 10/1/2017 $8,046,818 10/1/2007 6,739,904 (b) Total Increase 19.39% (c) Number of Years 10.00 (d) Average Annual Rate 1.79% City of Kissimmee Municipal Police Officers' Retirement Fund FOSTER & FOSTER 13

STATEMENT BY ENROLLED ACTUARY This actuarial valuation was 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, the techniques and assumptions used are reasonable and meet the requirements and intent of Part VII, Chapter 112, Florida Statutes. There is no benefit or expense to be provided by the plan and/or paid from the plan's assets for which liabilities or current costs have not been established or otherwise taken into account in the valuation. All known events or trends which may require a material increase in plan costs or required contribution rates have been taken into account in the valuation. Douglas H. Lozen, EA, MAAA Enrolled Actuary #17-7778 Please let us know when the report is approved by the Board and unless otherwise directed we will provide copies of the report to the following offices to comply with Chapter 112, Florida Statutes: Mr. Keith Brinkman Bureau of Local Retirement Systems Post Office Box 9000 Tallahassee, FL 32315-9000 Ms. Sarah Carr Municipal Police and Fire Pension Trust Funds Division of Retirement Post Office Box 3010 Tallahassee, FL 32315-3010 City of Kissimmee Municipal Police Officers' Retirement Fund FOSTER & FOSTER 14

RECONCILIATION OF UNFUNDED ACTUARIAL ACCRUED LIABILITIES (1) Unfunded Actuarial Accrued Liability as of October 1, 2016 $8,020,287 (2) Sponsor Normal Cost developed as of October 1, 2016 1,515,698 (3) Expected administrative expenses for the year ended September 30, 2017 46,370 (4) Expected interest on (1), (2) and (3) 764,734 (5) Sponsor contributions to the System during the year ended September 30, 2017 2,625,718 (6) Expected interest on (5) 2,728 (7) Expected Unfunded Actuarial Accrued Liability as of September 30, 2017 (1)+(2)+(3)+(4)-(5)-(6) 7,718,643 (8) Change to UAAL due to Actuarial (Gain)/Loss 830,830 (9) Unfunded Actuarial Accrued Liability as of October 1, 2017 8,549,473 Type of Date Years 10/1/2017 Amortization Base Established Remaining Amount Amount method change 10/1/2007 20 4,140,966 351,027 assumption change 10/1/2007 20 1,118,014 94,773 method change 10/1/2008 21 38,313 3,170 actuarial loss 10/1/2008 21 244,639 20,244 actuarial loss 10/1/2009 22 2,632,793 213,096 actuarial loss 10/1/2010 23 2,038,416 161,662 actuarial loss 10/1/2011 24 3,657,324 284,663 actuarial loss 10/1/2012 25 259,961 19,886 actuarial gain 10/1/2013 26 (3,191,071) (240,236) benefit change 10/1/2013 26 (1,899,923) (143,033) actuarial gain 10/1/2014 27 (1,436,387) (106,548) benefit change 10/1/2015 28 (104,504) (7,646) actuarial loss 10/1/2015 28 96,959 7,094 assumption change 10/1/2016 29 1,241,107 89,661 actuarial gain 10/1/2016 29 (1,117,964) (80,765) actuarial loss 10/1/2017 30 830,830 59,317 8,549,473 726,365 City of Kissimmee Municipal Police Officers' Retirement Fund FOSTER & FOSTER 15

DETAILED ACTUARIAL (GAIN)/LOSS ANALYSIS (1) Unfunded Actuarial Accrued Liability (UAAL) as of October 1, 2016 $8,020,287 (2) Expected UAAL as of October 1, 2017 7,718,643 (3) Summary of Actuarial (Gain)/Loss, by component: Investment Return (Actuarial Asset Basis) 68,960 Salary Increases 816,510 Active Decrements 74,809 Inactive Mortality (96,338) Other (Includes investment gains on DROP Balances) (33,111) Increase in UAAL due to (Gain)/Loss 830,830 (4) Actual UAAL as of October 1, 2017 $8,549,473 City of Kissimmee Municipal Police Officers' Retirement Fund FOSTER & FOSTER 16

ACTUARIAL ASSUMPTIONS AND METHODS Mortality Rate Healthy Inactive Lives: Female: RP 2000 Generational, 100% Annuitant White Collar, Scale BB Male: RP 2000 Generational, 10% Annuitant White Collar / 90% Annuitant Blue Collar, Scale BB Healthy Active Lives: Female: RP2000 Generational, 100% Combined Healthy (previously Annuitant) White Collar, Scale BB Male: RP2000 Generational, 10% Combined Healthy (previously Annuitant) White Collar / 90% Combined Healthy (previously Annuitant) Blue Collar, Scale BB Disabled Lives: Female: 60% RP2000 Disabled Female set forward two years / 40% Annuitant White Collar with no setback, no projection scale Male: 60% RP2000 Disabled Male setback four years / 40% Annuitant White Collar with no setback, no projection scale The above assumption rates were mandated by Chapter 2015-157, Laws of Florida. This law mandates the use of the assumption used in either of the two most recent valuations of the Florida Retirement System (FRS). The above rates are those outlined in Milliman s July 1, 2016 FRS valuation report for special risk participants. We feel this assumption sufficiently accommodates future mortality improvements. Interest Rate Retirement Age 8.00% per year compounded annually, net of investment related expenses. This assumption is supported by the Plan s target asset allocation and expected long-term rate of return by asset class. Attainment of age 50 with 10 years of Credited Service. Any Member who has reached Normal Retirement is assumed to continue employment for one additional year. Early Retirement Commencing at eligibility for Early Retirement (Age 40 with 10 years of Credited Service), Members are assumed to retire with an immediate benefit at the rate of 5.00% per year. City of Kissimmee Municipal Police Officers' Retirement Fund FOSTER & FOSTER 17

Disability Rate Termination Salary Increases See table below (1205). Service connected rate is assumed at 75%. See table below. 7.00% per year until the assumed retirement age; see table below. This assumption was adopted based on the results of the February 11, 2008 experience study. Projected salary at retirement is increased as follows to account for non-regular compensation: Credited Service Final Salary As of 10/1/2013 Load 15 or more years 5.00% 10-15 years 2.50% Less than 10 years 0.00% % Terminating % Becoming Disabled Current Salary as % Age During the Year During the Year of Salary at age 50 20 6.00% 0.14% 13.14% 30 5.00 0.18 25.84 40 2.60 0.30 50.83 50 0.80 1.00 100.00 Administrative Expenses Payroll Growth Funding Method Asset Smoothing Methodology $42,548, based on the prior year s actual expenses. 1.48% per year for amortization of the Unfunded Actuarial Accrued Liability. Entry Age Normal Actuarial Cost Method. The Actuarial Value of Assets is brought forward using the historical four-year geometric average of Market Value Returns (net-of-fees). Over time, this may result in a de minimis bias that is above or below the Market Value of Assets. City of Kissimmee Municipal Police Officers' Retirement Fund FOSTER & FOSTER 18

VALUATION NOTES Total Annual Payroll is the projected annual rate of pay as of the valuation date for all covered Members. Present Value of Benefits is the single sum value on the valuation date of all future benefits to be paid to current Members, Retirees, Beneficiaries, Disability Retirees and Vested Terminations. Total Required Contribution is equal to the Normal Cost plus an amount sufficient to amortize the Unfunded Accrued Liability over no more than 30 years. The required amount is adjusted for interest according to the timing of contributions during the year. Entry Age Normal Cost Method - Under this method, the normal cost is the sum of the individual normal costs for all active participants. For an active participant, the normal cost is the participant s normal cost accrual rate, multiplied by the participant s current compensation. (a) The normal cost accrual rate equals (i) the present value of future benefits for the participant, determined as of the participant s entry age, divided by (ii) the present value of the compensation expected to be paid to the participant for each year of the participant s anticipated future service, determined as of the participant s entry age. (b) In calculating the present value of future compensation, the salary scale is applied both retrospectively and prospectively to estimate compensation in years prior to and subsequent to the valuation year based on the compensation used for the valuation. (c) The accrued liability is the sum of the individual accrued liabilities for all participants and beneficiaries. A participant s accrued liability equals the present value, at the participant s attained age, of future benefits less the present value at the participant s attained age of the individual normal costs payable in the future. A beneficiary s accrued liability equals the present value, at the beneficiary s attained age, of future benefits. The unfunded accrued liability equals the total accrued liability less the actuarial value of assets. (d) Under this method, the entry age used for each active participant is the participant s age at the time he or she would have commenced participation if the plan had always been in existence under current terms, or the age as of which he or she first earns service credits for purposes of benefit accrual under the current terms of the plan. City of Kissimmee Municipal Police Officers' Retirement Fund FOSTER & FOSTER 19

STATEMENT OF FIDUCIARY NET POSITION SEPTEMBER 30, 2017 ASSETS COST VALUE MARKET VALUE Cash and Cash Equivalents: Money Market 1,760,139.00 1,760,139.00 Cash 2.05 2.05 Total Cash and Equivalents 1,760,141.05 1,760,141.05 Receivables: Member Contributions in Transit 16,353.57 16,353.57 Member Contributions 625.21 625.21 City Contributions 1,970,600.91 1,970,600.91 Additional City Contributions 31.93 31.93 Investment Income 70,936.04 70,936.04 Total Receivable 2,058,547.66 2,058,547.66 Investments: Fixed Income 16,356,364.95 16,278,643.14 Municipal Obligations 53,852.74 53,975.20 Equities 14,740,663.90 18,031,082.05 Mutual Funds: Equity 7,025,469.92 14,712,272.51 Pooled/Common/Commingled Funds: Equity 2,561,238.46 2,556,504.00 Real Estate 4,849,084.00 6,376,125.74 Total Investments 45,586,673.97 58,008,602.64 Total Assets 49,405,362.68 61,827,291.35 LIABILITIES Total Liabilities 0.00 0.00 NET POSITION RESTRICTED FOR PENSIONS 49,405,362.68 61,827,291.35 City of Kissimmee Municipal Police Officers' Retirement Fund FOSTER & FOSTER 20

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FOR THE YEAR ENDED SEPTEMBER 30, 2017 Market Value Basis ADDITIONS Contributions: Member 302,193.77 City 1,970,600.91 State 655,117.24 Total Contributions 2,927,911.92 Investment Income: Net Realized Gain (Loss) 1,568,008.58 Unrealized Gain (Loss) 3,163,317.13 Net Increase in Fair Value of Investments 4,731,325.71 Interest & Dividends 1,302,981.76 Less Investment Expense¹ (189,364.81) Net Investment Income 5,844,942.66 Total Additions 8,772,854.58 DEDUCTIONS Distributions to Members: Benefit Payments 3,022,658.51 Lump Sum DROP Distributions 56,553.98 Lump Sum Share Distributions 11,015.77 Refunds of Member Contributions 25,553.35 Total Distributions 3,115,781.61 Administrative Expense 42,548.47 Total Deductions 3,158,330.08 Net Increase in Net Position 5,614,524.50 NET POSITION RESTRICTED FOR PENSIONS Beginning of the Year 56,212,766.85 End of the Year 61,827,291.35 ¹Investment related expenses include investment advisory, custodial and performance monitoring fees. City of Kissimmee Municipal Police Officers' Retirement Fund FOSTER & FOSTER 21

ACTUARIAL ASSET VALUATION SEPTEMBER 30, 2017 Actuarial Assets for funding purposes are developed by increasing the Actuarial Assets used in the most recent actuarial valuation of the Fund by the average annual market value rate of return (net of investment related expenses) for the past four years. Actuarial Assets shall not be less than 80% nor greater than 120% of Market Value of Assets. Details of the derivation are set forth as follows: Plan Year End Rate of Return¹ 09/30/2014 10.56% 09/30/2015 1.49% 09/30/2016 8.99% 09/30/2017 10.74% Annualized Rate of Return for prior four (4) years: 7.88% (A) 10/01/2016 Actuarial Assets: $57,605,150.18 (I) Net Investment Income: 1. Interest and Dividends 1,302,981.76 2. Realized Gains (Losses) 1,568,008.58 3. Change in Actuarial Value 1,846,750.47 4. Investment Related Expenses (189,364.81) Total 4,528,376.00 (B) 10/01/2017 Actuarial Assets: $61,903,108.02 Actuarial Asset Rate of Return = 2I/(A+B-I): 7.88% 10/01/2017 Limited Actuarial Assets: $61,903,108.02 10/01/2017 Market Value of Assets: $61,827,291.35 Actuarial Gain/(Loss) due to Investment Return (Actuarial Asset Basis) ($68,960.04) ¹Market Value Basis, net of investment related expenses. City of Kissimmee Municipal Police Officers' Retirement Fund FOSTER & FOSTER 22

CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS SEPTEMBER 30, 2017 Actuarial Asset Basis REVENUES Contributions: Member 302,193.77 City 1,970,600.91 State 655,117.24 Total Contributions 2,927,911.92 Earnings from Investments: Interest & Dividends 1,302,981.76 Net Realized Gain (Loss) 1,568,008.58 Change in Actuarial Value 1,846,750.47 Total Earnings and Investment Gains 4,717,740.81 EXPENDITURES Distributions to Members: Benefit Payments 3,022,658.51 Lump Sum DROP Distributions 56,553.98 Lump Sum Share Distributions 11,015.77 Refunds of Member Contributions 25,553.35 Total Distributions 3,115,781.61 Expenses: Investment related¹ 189,364.81 Administrative 42,548.47 Total Expenses 231,913.28 Change in Net Assets for the Year 4,297,957.84 Net Assets Beginning of the Year 57,605,150.18 Net Assets End of the Year² 61,903,108.02 ¹Investment related expenses include investment advisory, custodial and performance monitoring fees. ²Net Assets may be limited for actuarial consideration. City of Kissimmee Municipal Police Officers' Retirement Fund FOSTER & FOSTER 23

DEFERRED RETIREMENT OPTION PLAN ACTIVITY October 1, 2016 to September 30, 2017 Beginning of the Year Balance 631,069.33 Plus Additions 428,953.08 Investment Return Earned 46,616.26 Less Distributions (56,553.98) End of the Year Balance 1,050,084.69 City of Kissimmee Municipal Police Officers' Retirement Fund FOSTER & FOSTER 24

SUPPLEMENTAL CHAPTER 185 SHARE PLAN ACTIVITY October 1, 2016 through September 30, 2017 9/30/2016 Balance 218,479 Prior Year Adjustment 0 Plus Additions 0 Investment Return Earned (est.) 22,282 Administrative Fees 0 Less Distributions (11,016) 9/30/2017 Balance (est.) 229,745 City of Kissimmee Municipal Police Officers' Retirement Fund FOSTER & FOSTER 25

STATISTICAL DATA 10/1/2014 10/1/2015 10/1/2016 10/1/2017 Actives Number 124 123 117 119 Average Current Age 37.1 36.6 36.9 37.2 Average Age at Employment 27.7 27.5 27.4 27.5 Average Past Service 9.4 9.1 9.5 9.7 Average Annual Salary $58,027 $61,483 $62,603 $67,620 Service Retirees Number 78 81 85 85 Average Current Age N/A 57.8 58.4 58.8 Average Annual Benefit $29,079 $30,109 $31,533 $33,095 DROP Retirees Number 4 8 7 6 Average Current Age N/A 50.1 51.4 52.4 Average Annual Benefit $70,407 $60,321 $64,342 $55,812 Beneficiaries Number 4 5 6 9 Average Current Age N/A 69.1 63.9 54.6 Average Annual Benefit $12,199 $17,309 $17,476 $14,526 Disability Retirees Number 11 11 10 10 Average Current Age N/A 47.3 49.8 50.8 Average Annual Benefit $19,905 $19,978 $20,183 $20,285 Terminated Vested Number 13 13 20 24 Average Current Age ¹ N/A 39.8 40.4 42.0 Average Annual Benefit ¹ $12,029 $11,828 $16,130 $18,373 ¹ The Average Annual Benefit and Average Age excludes participants awaiting a refund of contributions. City of Kissimmee Municipal Police Officers' Retirement Fund FOSTER & FOSTER 26

AGE AND SERVICE DISTRIBUTION PAST SERVICE AGE 0 1 2 3 4 5-9 10-14 15-19 20-24 25-29 30+ Total 15-19 0 0 0 0 0 0 0 0 0 0 0 0 20-24 1 2 0 0 0 0 0 0 0 0 0 3 25-29 6 2 4 2 1 5 0 0 0 0 0 20 30-34 3 3 3 0 1 13 5 0 0 0 0 28 35-39 1 1 2 0 0 3 9 2 0 0 0 18 40-44 0 0 0 0 1 1 12 8 1 0 0 23 45-49 0 0 0 1 0 0 7 8 6 0 0 22 50-54 0 0 0 0 0 0 1 0 1 1 0 3 55-59 0 0 0 0 1 0 0 1 0 0 0 2 60-64 0 0 0 0 0 0 0 0 0 0 0 0 65+ 0 0 0 0 0 0 0 0 0 0 0 0 Total 11 8 9 3 4 22 34 19 8 1 0 119 City of Kissimmee Municipal Police Officers' Retirement Fund FOSTER & FOSTER 27

VALUATION PARTICIPANT RECONCILIATION 1. Active lives a. Number in prior valuation 10/1/2016 117 b. Terminations i. Vested (partial or full) with deferred benefits (5) ii. Non-vested or full lump sum distribution received (4) c. Deaths i. Beneficiary receiving benefits (2) ii. No future benefits payable 0 d. Disabled 0 e. Retired 0 f. DROP (1) g. Continuing participants 105 h. New entrants 14 i. Total active life participants in valuation 119 2. Non-Active lives (including beneficiaries receiving benefits) Service Retirees, Vested Receiving Receiving Receiving DROP Death Disability Vested Benefits Benefits Benefits Benefits Deferred Total a. Number prior valuation 85 7 6 10 20 128 Retired 2 (2) 0 0 0 0 DROP 0 1 0 0 0 1 Vested Deferred 0 0 0 0 5 5 Death, With Survivor 0 0 3 0 (1) 2 Death, No Survivor (2) 0 0 0 0 (2) Disabled 0 0 0 0 0 0 Refund of Contributions 0 0 0 0 0 0 Rehires 0 0 0 0 0 0 Expired Annuities 0 0 0 0 0 0 Data Corrections 0 0 0 0 0 0 b. Number current valuation 85 6 9 10 24 134 City of Kissimmee Municipal Police Officers' Retirement Fund FOSTER & FOSTER 28

SUMMARY OF PLAN PROVISIONS Eligibility Compensation Average Final Compensation (AFC) All regular sworn Police Officers. Total compensation paid to a police officer for services rendered, including lump sum sick leave, but not including special assignment and special detail pay. Average salary during the five best consecutive years of the last ten years of service. The AFC as of May 6, 2014 will be determined under the previous AFC definition and preserved as a minimum AFC for determining the final benefit. Retirement Age Normal Early The earlier of (1) Age 50 and 10 years of credited service or (2) 25 years of credited service regardless of age. Age 40 and 15 years of credited service. Retirement Benefits Normal Hired prior to May 6, 2014: 3.50% of AFC for each year of service subject to a maximum of 100% of AFC. Hired on or after May 6, 2014: 3.00% of AFC for each year of service subject to a maximum of 100% of AFC. Early Delayed Normal Form Same as Normal except reduced actuarially from Normal Retirement Date. Benefit continues to accrue. Ten Year Certain and Life Annuity with other options available. Disability Retirement Eligibility Benefit All Members are eligible for line of duty benefit; five years of credited service needed for non-line of duty. Accrued pension benefit with a minimum of 42% of AFC if line of duty or 25% of AFC if non-line of duty. Under certain conditions, the minimum line of duty benefit is 80% of AFC. City of Kissimmee Municipal Police Officers' Retirement Fund FOSTER & FOSTER 29

Death Benefits (Pre-Retirement) Upon the death of a Member with at least five years of credited service before early or normal retirement date, beneficiary will receive monthly income, payable in the form of a ten year certain and life annuity, which can be provided by (a) or (b), whichever is greater, where: (a) is the single-sum value of the Member s accrued pension, and (b) is the smaller of (i) or (ii), where Termination Benefits (i) is 24 times Average Compensation, and (ii) is 100 times the anticipated monthly normal retirement benefit. Prior to May 6, 2014 Less than five years of credited service return of employee contributions with 4.50% interest. Five years or more vested portion of accrued pension payable at age 50 or earlier, if contributions left in the fund, or refund of contributions with interest. Vested portion is as follows: Service Vested % Less than 5 years 0% 5 25 6 30 7 35 8 40 9 45 10 100 On or After May 6, 2014 Less than ten years of credited service return of employee contributions with 4.50% interest. Ten years or more vested portion of accrued pension payable at age 50 or earlier, if contributions left in the fund, or refund of contributions with interest. Deferred Retirement Option Plan (DROP) Members who continue in employment past normal retirement date may either accrue larger pensions or freeze their accrued benefit and enter the DROP. Each participant in the DROP has an account credited with benefits not received and investment earnings. City of Kissimmee Municipal Police Officers' Retirement Fund FOSTER & FOSTER 30

Cost of Living Allowance Each retiree, beneficiary and disability retiree who retires after October 1, 1998 will receive a 1.00% increase in benefits each year on October 1 st from age 55 to age 65. Effective May 6, 2014, Members who retire prior to the normal retirement date shall not be eligible for a cost-of-living adjustment. Contributions Employees 3.70% of Compensation for those hired prior to May 6, 2014. 5.00% of Compensation for those hired on or after May 6, 2014. State Premium tax refund per Chapter 185. City Remaining amount necessary according to State laws. Supplement Benefit (Share Accounts) Initial Crediting Annual Crediting Investment earnings Vesting Eligibility for Distribution Pursuant to a Mutual Consent Agreement between the City and PBA, $218,479.46 from the Excess State Monies Reserve is allocated to eligible participants. Annual Premium tax revenues received by the City in excess of the $1,177,117 applicable frozen amount shall be equally allocated to participant accounts. Eligible Share Accounts shall be credited or debited annually, based on the Plan s net-of-fees investment performance for the immediately preceding Plan Year. The same vesting provisions applicable to the accrued benefit under Sec. 2-6-88. Eligible for Normal or Early Retirement. City of Kissimmee Municipal Police Officers' Retirement Fund FOSTER & FOSTER 31

GASB 67 STATEMENT OF FIDUCIARY NET POSITION SEPTEMBER 30, 2017 ASSETS Cash and Cash Equivalents: Money Market Cash Total Cash and Equivalents Receivables: Investment Income Total Receivable Investments: Fixed Income Municipal Obligations Equities Mutual Funds: Equity Pooled/Common/Commingled Funds: Equity Real Estate Total Investments Total Assets Total Liabilities NET POSITION RESTRICTED FOR PENSIONS MARKET VALUE 1,760,139 2 1,760,141 70,936 70,936 16,278,643 53,975 18,031,082 14,712,273 2,556,504 6,376,126 58,008,603 59,839,680 0 59,839,680 City of Kissimmee Municipal Police Officers' Retirement Fund FOSTER & FOSTER 32

GASB 67 STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FOR THE YEAR ENDED SEPTEMBER 30, 2017 Market Value Basis ADDITIONS Contributions: Member 295,191 City 1,882,083 State 655,117 Total Contributions 2,832,391 Investment Income: Net Increase in Fair Value of Investments 4,826,269 Interest & Dividends 1,291,864 Less Investment Expense¹ (273,190) Net Investment Income 5,844,943 Total Additions 8,677,334 DEDUCTIONS Distributions to Members: Benefit Payments 3,022,659 Lump Sum DROP Distributions 56,554 Lump Sum Share Distributions 11,016 Refunds of Member Contributions 25,553 Total Distributions 3,115,782 Administrative Expense 42,548 Total Deductions 3,158,330 Net Increase in Net Position 5,519,004 NET POSITION RESTRICTED FOR PENSIONS Beginning of the Year 54,320,676 End of the Year 59,839,680 ¹Investment related expenses include investment advisory, custodial and performance monitoring fees. City of Kissimmee Municipal Police Officers' Retirement Fund FOSTER & FOSTER 33

GASB 67 NOTES TO THE FINANCIAL STATEMENTS (For the Year Ended September 30, 2017) Plan Description Plan Administration The City of Kissimmee Municipal Police Officers' Retirement Plan is a single-employer defined benefit pension plan administered by a Board of Trustees which acts as the administrator of the Plan. The Board currently consists of 5 Trustees, 2 of whom are legal residents of the City who shall be appointed by the City Commission, 2 of whom are Members of the Plan who shall be elected by a majority of the Police Officers who are Members of the Plan and a fifth Trustee who is chosen by a majority of the first 4 Trustees. Plan Membership as of October 1, 2016: Inactive Plan Members or Beneficiaries Currently Receiving Benefits 108 Inactive Plan Members Entitled to But Not Yet Receiving Benefits 20 Active Plan Members 117 245 Benefits Provided The Plan provides retirement, termination, disability and death benefits. Retirement Age: Normal: Earlier of 1) Age 50 with 10 years of Credited Service, or 2) the attainment of 25 years of Credited Service, regardless of Age. Early: Age 40 and 15 years of credited service. Retirement Benefits: Normal: Hired prior to May 6, 2014: 3.50% of AFC for each year of service subject to a maximum of 100% of AFC. Hired on or after May 6, 2014: 3.00% of AFC for each year of service subject to a maximum of 100% of AFC. Early: Same as Normal except reduced actuarially from Normal Retirement. Delayed: Benefit continues to accrue. Disability: Eligibility: All Members are eligible for line of duty benefit, five years of credited service needed for non-line of duty. Benefit: Accrued pension benefit with a minimum of 42% of AFC if line of duty or 25% of AFC if non-line of duty. Under certain conditions, the minimum line of duty benefit is 80% of AFC. Death Benefits (Pre-Retirement): Upon the death of a Member with at least five years of credited service before early or normal retirement date, beneficiary will receive monthly income, payable in the form of a ten year certain and life annuity, which can be provided by (a) or (b), whichever is greater, where: (a) is the single-sum value of the Member s accrued pension, and (b) is the smaller of (i) or (ii), where (i) is 24 times Average Compensation and (ii) is 100 times the anticipated monthly normal retirement benefit. City of Kissimmee Municipal Police Officers' Retirement Fund FOSTER & FOSTER 34

GASB 67 Termination Benefits: Prior to May 6, 2014: Less than five years of credited service return of employee contributions with 4.50% interest. Five years or more vested portion of accrued pension payable at age 50 or earlier, if contributions left in the fund, or refund of contributions with interest. Vested portion is as follows: Service Vested % Less than 5 years 0% 5 25 6 30 7 35 8 40 9 45 10 100 On or After May 6, 2014: Less than ten years of credited service - return of employee contributions with 4.50% interest. Ten years or more - vested portion of accrued pension payable at age 50 or earlier, if contributions left in the fund, or refund of contributions with interest. Cost-of-Living Allowance: Each retiree, beneficiary and disability retiree who retires after October 1, 1998 will receive a 1.00% increase in benefits each year on October 1st from age 55 to age 65. Effective May 6, 2014, Members who retire prior to the normal retirement date shall not be eligible for a cost-of-living adjustment. Contributions Employees: 3.70% of Compensation for those hired prior to May 6, 2014.5.00% of Compensation for those hired on or after May 6, 2014. State: Premium tax refund per Chapter 185. City: Remaining amount necessary according to State laws. Investments Investment Policy: The following was the Board's adopted asset allocation policy as of September 30, 2017: Asset Class Target Allocation Domestic Equity 15% Broad Growth Equity 15% Large Cap Domestic Stocks 10% Foreign Equity Securities 15% Fixed Income (Core) 15% Global Bond 5% Real Estate 10% TIPS 5% Managed Futures 5% Private Equity 5% Total 100% Concentrations: The Plan did not hold investments in any one organization that represent 5 percent or more of the Pension Plan's Fiduciary Net Position. Rate of Return: For the year ended September 30, 2017, the annual money-weighted rate of return on Pension Plan investments, net of Pension Plan investment expense, was 10.74 percent. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. City of Kissimmee Municipal Police Officers' Retirement Fund FOSTER & FOSTER 35

GASB 67 Deferred Retirement Option Program Members who continue in employment past normal retirement date may either accrue larger pensions or freeze their accrued benefit and enter the DROP. Each participant in the DROP has an account credited with benefits not received and investment earnings. The DROP balance as September 30, 2017 is $1,050,085. City of Kissimmee Municipal Police Officers' Retirement Fund FOSTER & FOSTER 36

GASB 67 NET PENSION LIABILITY OF THE SPONSOR The components of the Net Pension Liability of the Sponsor on September 30, 2017 were as follows: Total Pension Liability $ 69,095,110 Plan Fiduciary Net Position $ (59,839,680) Sponsor's Net Pension Liability $ 9,255,430 Plan Fiduciary Net Position as a percentage of Total Pension Liability 86.60% Actuarial Assumptions: The Total Pension Liability was determined by an actuarial valuation as of October 1, 2016 updated to September 30, 2017 using the following actuarial assumptions: Inflation 2.50% Salary Increases 7.00% Discount Rate 8.00% Investment Rate of Return 8.00% Mortality Rate Healthy Lives: Female: RP2000 Generational, 100% Annuitant White Collar, Scale BB. Male: RP2000 Generational, 10% Annuitant White Collar /90% Annuitant Blue Collar, Scale BB. Mortality Rate Disabled Lives: Female: 60% RP2000 Disabled Female set forward two years / 40% Annuitant White Collar with no setback, no projection scale. Male: 60% RP2000 Disabled Male setback four years / 40% Annuitant White Collar with no setback, no projection scale. The most recent actuarial experience study used to review the other significant assumptions was dated February 11, 2008. The Long-Term Expected Rate of Return on Pension Plan investments can be determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of Pension Plan investment expenses and inflation) are developed for each major asset class. For 2017 the inflation rate assumption of the investment advisor was 2.50%. These ranges are combined to produce the Long-Term Expected Rate of Return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of geometric real rates of return for each major asset class included in the Pension Plan's target asset allocation as of September 30, 2017 are summarized in the following table: Asset Class Domestic Equity Broad Growth Equity Large Cap Domestic Stocks Foreign Equity Securities Fixed Income (Core) Global Bond Real Estate TIPS Managed Futures Private Equity Long Term Expected Real Rate of Return 7.5% 7.5% 7.5% 8.5% 2.5% 3.5% 4.5% 2.5% 7.5% 8.5% City of Kissimmee Municipal Police Officers' Retirement Fund FOSTER & FOSTER 37

GASB 67 Discount Rate: The Discount Rate used to measure the Total Pension Liability was 8.00 percent. The projection of cash flows used to determine the Discount Rate assumed that Plan Member contributions will be made at the current contribution rate and that Sponsor contributions will be made at rates equal to the difference between actuarially determined contribution rates and the Member rate. Based on those assumptions, the Pension Plan's Fiduciary Net Position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the Long-Term Expected Rate of Return on Pension Plan investments was applied to all periods of projected benefit payments to determine the Total Pension Liability. 1% Decrease Current Discount Rate 1% Increase 7.00% 8.00% 9.00% Sponsor's Net Pension Liability $ 17,449,059 $ 9,255,430 $ 2,450,925 City of Kissimmee Municipal Police Officers' Retirement Fund FOSTER & FOSTER 38

GASB 67 SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS Last 10 Fiscal Years 09/30/2017 09/30/2016 09/30/2015 Total Pension Liability Service Cost 1,837,788 1,910,525 1,840,824 Interest 5,299,429 4,817,978 4,577,335 Change in Excess State Money - (328,100) - Share Plan Allocation - 218,479 - Changes of benefit terms - (67,902) - Differences between Expected and Actual Experience (889,289) 1,135,839 (426,272) Changes of assumptions - 1,126,957 - Benefit Payments, including Refunds of Employee Contributions (3,115,782) (3,122,017) (2,849,303) Net Change in Total Pension Liability 3,132,146 5,691,759 3,142,584 Total Pension Liability - Beginning 65,962,964 60,271,205 57,128,621 Total Pension Liability - Ending (a) $ 69,095,110 $ 65,962,964 $ 60,271,205 Plan Fiduciary Net Position Contributions - Employer 1,882,083 1,948,194 1,906,810 Contributions - State 655,117 582,138 521,206 Contributions - Employee 295,191 274,331 269,801 Net Investment Income 5,844,943 4,519,329 1,143,093 Benefit Payments, including Refunds of Employee Contributions (3,115,782) (3,122,017) (2,849,303) Administrative Expense (42,548) (46,370) (47,000) Net Change in Plan Fiduciary Net Position 5,519,004 4,155,605 944,607 Plan Fiduciary Net Position - Beginning 54,320,676 50,165,071 49,220,464 Plan Fiduciary Net Position - Ending (b) $ 59,839,680 $ 54,320,676 $ 50,165,071 Net Pension Liability - Ending (a) - (b) $ 9,255,430 $ 11,642,288 $ 10,106,134 Plan Fiduciary Net Position as a percentage of the Total Pension Liability 86.60% 82.35% 83.23% Covered Employee Payroll¹ $ 7,724,973 $ 7,506,099 $ 7,753,854 Net Pension Liability as a percentage of Covered Employee Payroll 119.81% 155.10% 130.34% Notes to Schedule: ¹ The Covered Employee Payroll numbers shown are in compliance with GASB 82, except for the 09/30/2015 measurement period which includes DROP payroll. Changes of benefit terms: For measurement date 09/30/2016, amounts reported as changes of benefit terms was a result of the adoption of Ordinance No.2939 which made the following changes: Resumption of prior graded vesting schedule for Members who were employed prior to May 6, 2014. Allocation of a portion of the Excess State Monies Reserve necessary to cover the increase in the Present Value of Benefits associated with the proposed vesting change described above. For purposes of this Impact Statement, $109,621 is the increase in the Present Value of Benefits for the proposed vesting change. Accordingly, the Excess State Monies Reserve was diminished by this amount, leaving $218,479 as an allocation to the Share Plan. o The net change in the Unfunded Actuarial Accrued Liability associated with this change is amortized as a level percentage of payroll over 30 years. Future Share allocations once the annual State Monies exceed $1,177,117. City of Kissimmee Municipal Police Officers' Retirement Fund FOSTER & FOSTER 39

GASB 67 Changes of assumptions: For measurement date 09/30/2016, as a result of Chapter 2015-157, Laws of Florida, the assumed rates of mortality were changed to the assumptions used by the Florida Retirement System for special risk employees. The inflation assumption rate was lowered from 3.00% to 2.50%, matching the long-term inflation assumption utilized by the Plan's investment consultant. City of Kissimmee Municipal Police Officers' Retirement Fund FOSTER & FOSTER 40

GASB 67 SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS Last 10 Fiscal Years 09/30/2015 09/30/2014 Total Pension Liability Service Cost 1,840,824 1,814,898 Interest 4,577,335 4,316,981 Change in Excess State Money - - Share Plan Allocation - - Changes of benefit terms - - Differences between Expected and Actual Experience (426,272) - Changes of assumptions - - Benefit Payments, including Refunds of Employee Contributions (2,849,303) (2,957,449) Net Change in Total Pension Liability 3,142,584 3,174,430 - Total Pension Liability - Beginning 57,128,621 53,954,191 Total Pension Liability - Ending (a) $ 60,271,205 $ 57,128,621 $ - Plan Fiduciary Net Position Contributions - Employer 1,906,810 2,475,850 Contributions - State 521,206 501,392 Contributions - Employee 269,801 253,293 Net Investment Income 1,143,093 4,411,841 Benefit Payments, including Refunds of Employee Contributions (2,849,303) (2,957,449) Administrative Expense (47,000) (50,528) Net Change in Plan Fiduciary Net Position 944,607 4,634,399 Plan Fiduciary Net Position - Beginning 49,220,464 44,586,065 Plan Fiduciary Net Position - Ending (b) $ 50,165,071 $ 49,220,464 Net Pension Liability - Ending (a) - (b) $ 10,106,134 $ 7,908,157 Plan Fiduciary Net Position as a percentage of the Total Pension Liability 83.23% 86.16% Covered Employee Payroll¹ $ 7,753,854 $ 6,841,484 Net Pension Liability as a percentage of Covered Employee Payroll 130.34% 115.59% Notes to Schedule: ¹ The Covered Employee Payroll numbers shown are in compliance with GASB 82, except for the 09/30/2015 measurement period which includes DROP payroll. Changes of assumptions: For measurement date 09/30/2015, the inflation assumption was lowered from 3.50% to 3.00%. City of Kissimmee Municipal Police Officers' Retirement Fund FOSTER & FOSTER 41