CITY OF OCOEE MUNICIPAL POLICE OFFICERS' AND FIREFIGHTERS' RETIREMENT TRUST FUND ACTUARIAL VALUATION REPORT AS OF OCTOBER 1, 2017

CITY OF OCOEE MUNICIPAL POLICE OFFICERS' AND FIREFIGHTERS' RETIREMENT TRUST FUND ACTUARIAL VALUATION REPORT AS OF OCTOBER 1, 2017 CONTRIBUTIONS APPLICABLE TO THE CITY'S PLAN/FISCAL YEAR ENDING SEPTEMBER 30, 2019

February 5, 2018 Board of Trustees City of Ocoee Police Officers and Firefighters Retirement Trust Fund 646 Ocoee Commerce Pkwy Ocoee, FL 34761 Re: City of Ocoee Police Officers and Firefighters Retirement Trust Fund Dear Board: We are pleased to present to the Board this report of the annual actuarial valuation of the City of Ocoee Police Officers and Firefighters Retirement Trust Fund. 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. Please note that these valuations may not be applicable for any other purposes. 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, 175, 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 Board of Trustees, 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 Ocoee, nor does anyone at Foster & Foster, Inc. act as a member of the Board of Trustees of the City of Ocoee Police Officers and Firefighters Retirement Trust Fund. 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 8 c. Changes Since Prior Valuation 9 d. Requirements of Chapter 112, Part VII, Florida Statutes 10 II Valuation Information a. Reconciliation of Unfunded Actuarial Accrued Liabilities 16 b. Detailed Actuarial (Gain)/Loss Analysis 18 c. Actuarial Assumptions and Methods 19 d. Valuation Notes 22 e. Partial History of Premium Tax Refunds 23 III Trust Fund 24 IV Member Statistics a. Statistical Data 31 b. Age and Service Distribution 32 c. Valuation Participant Reconciliation 33 V Summary of Plan Provisions 34 VI Governmental Accounting Standards Board Disclosure Information 38 City of Ocoee Municipal Police Officers' and Firefighters' Retirement Trust Fund FOSTER & FOSTER 4

SUMMARY OF REPORT The regular annual actuarial valuation of the City of Ocoee Municipal Police Officers' and Firefighters' Retirement Trust Fund, performed as of October 1, 2017, has been completed, and the results are presented in this Report. The contribution amounts developed in this valuation are applicable to the City's fiscal year ended September 30, 2019. The contribution requirements, compared with amounts developed in the May 23, 2017, Actuarial Impact Statement (determined as of October 1, 2016), are as follows: Valuation Date Applicable Plan Year End 10/1/17 9/30/19 10/1/16 9/30/18 Total Required Contribution % of Total Annual Payroll 45.21% 43.25% Member Contributions (Est.) % of Total Annual Payroll 8.00% 8.00% City and State Required Contribution % of Total Annual Payroll 37.21% 35.25% State Contribution (est.) ¹ 432,404 432,404 % of Total Annual Payroll 5.54% 5.54% Balance from City ² % of Total Annual Payroll 31.67% 29.71% ¹ Please see the following page for description of State Monies that are available for City funding. ² For budgeting purposes, the required Sponsor Contribution (City and State) is 37.21% of Pensionable Earnings for the fiscal year ending September 30, 2019. The precise City requirement for the year is this amount, less State Contributions described on the next page. Additionally, the City has a prepaid contribution of $22,771.57 that may be utilized for the fiscal year ending September 30, 2018. City of Ocoee Municipal Police Officers' and Firefighters' Retirement Trust Fund FOSTER & FOSTER 5

¹ Under Chapter 2015-39, Laws of Florida, the State Monies are allocated as follows (as outlined in our February 17, 2017 analysis): a. Police Officers Under the Default provision of Chapter 2015-39, Laws of Florida, the first $223,377.02 received annually will offset the City s contribution requirement. Future State Monies received for the Police Officers portion of the Plan in excess of $223,377.02 will be split 50/50, with 50% allocated to the newly established Share Plan, and 50% allocated as a credit to the City s annual contribution requirements. b. Firefighters Per Mutual Consent between the City and Firefighter Members, the first $171,631.09 received annually will offset the City s contribution requirement. Since the Mutual Consent Agreement did not specify the baseline for determination of excess monies, the $171,631.09 is the difference between the prior frozen State Contribution of $421,323.57 and the Police portion of State Monies determined under the Default method from our February 17, 2017 analysis ($249,692.48). Future State Monies received for the Firefighters portion of the Plan in excess of $171,631.09 will be allocated as a credit against the UAAL. If no UAAL exists, then Firefighter State Monies in excess of $171,631.09 will offset the City s annual funding obligation. Plan experience during the last 12 months was less favorable than expected, relative to the actuarial assumptions. The primary components of actuarial loss included unfavorable turnover and retirement experience, a 7.69% investment return (Actuarial Asset basis), falling short of the 7.95% assumption, and no inactive mortality. Additionally, funding requirements have increased, based on a change in assumptions for investment return and mortality. City of Ocoee Municipal Police Officers' and Firefighters' Retirement Trust Fund FOSTER & FOSTER 6

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 to discuss the Report and answer any questions concerning its contents. Respectfully submitted, FOSTER & FOSTER, INC. By: Douglas H. Lozen, EA, MAAA By: Drew D. Ballard, EA, MAAA City of Ocoee Municipal Police Officers' and Firefighters' Retirement Trust Fund FOSTER & FOSTER 7

CONTRIBUTION IMPACT OF ANNUAL CHANGES (1) Contribution Determined as of October 1, 2016 29.58% (2) Summary of Contribution Impact by component: Change in State Contribution Percentage 0.1% Change in Normal Cost Rate 0.1% Change in Administrative Expense Percentage -0.3% Payroll Change Effect on UAAL Amortization -0.5% Investment Return (Actuarial Asset Basis) 0.2% Salary Increases 0.0% Active Decrements 0.6% Inactive Mortality 0.2% Assumption Change 0.9% State Reserve Credit -0.1% Unexpected Increase in the UAAL 1.2% Other -0.3% Total Change in Contribution 2.09% (3) Contribution Determined as of October 1, 2017 31.67% City of Ocoee Municipal Police Officers' and Firefighters' Retirement Trust Fund FOSTER & FOSTER 8

CHANGES SINCE PRIOR VALUATION Plan Changes Ordinance 2017-016, adopted and effective May 16, 2017, implemented changes to the benefit accrual rate, maximum benefit, vesting, in addition to the establishment of a Share Plan. An Actuarial Impact Statement dated May 23, 2017 was issued for this amendment. Ordinance 2017-032, adopted and effective December 5, 2017, provided details regarding the Share Plan established with Ordinance 2017-016. A letter of no actuarial impact was submitted for this amendment. Actuarial Assumption/Method Changes The investment return assumption has been reduced from 7.95% to 7.90% (net of fees). This assumption will be reduced annually by 5 basis points until it reaches an ultimate rate of 7.75% with the October 1, 2020 actuarial 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 for special risk participants. City of Ocoee Municipal Police Officers' and Firefighters' Retirement Trust Fund FOSTER & FOSTER 9

COMPARATIVE SUMMARY OF PRINCIPAL VALUATION RESULTS A. Participant Data New Assump Old Assump 10/1/2017 10/1/2017 10/1/2016 Actives 116 116 114 Service Retirees 45 45 42 DROP Retirees 10 10 10 Beneficiaries 1 1 1 Disability Retirees 7 7 7 Terminated Vested 26 26 25 Total 205 205 199 Total Annual Payroll $7,811,311 $7,811,311 $7,432,068 Payroll Under Assumed Ret. Age 7,811,311 7,811,311 7,432,068 Annual Rate of Payments to: Service Retirees 1,858,284 1,858,284 1,696,387 DROP Retirees 604,396 604,396 597,672 Beneficiaries 12,218 12,218 12,218 Disability Retirees 181,068 181,068 181,068 Terminated Vested 186,890 186,890 186,890 B. Assets Actuarial Value (AVA) ¹ 50,166,070 50,166,070 46,264,915 Market Value (MVA) ¹ 50,652,631 50,652,631 45,408,536 C. Liabilities Present Value of Benefits Actives Retirement Benefits 34,402,296 33,454,425 31,591,643 Disability Benefits 1,843,783 1,807,159 1,705,202 Death Benefits 228,963 481,105 453,060 Vested Benefits 598,014 589,028 597,775 Refund of Contributions 63,850 63,654 53,882 Service Retirees 20,548,836 20,457,202 18,890,574 DROP Retirees ¹ 9,005,414 8,969,376 8,570,467 Beneficiaries 42,272 42,236 50,925 Disability Retirees 1,963,467 1,954,861 1,972,653 Terminated Vested 1,260,165 1,251,549 1,170,027 Share Plan Balances ¹ 252,169 252,169 193,674 Total 70,209,229 69,322,764 65,249,882 City of Ocoee Municipal Police Officers' and Firefighters' Retirement Trust Fund FOSTER & FOSTER 10

New Assump Old Assump C. Liabilities - (Continued) 10/1/2017 10/1/2017 10/1/2016 Present Value of Future Salaries 64,710,504 64,012,030 61,215,034 Present Value of Future Member Contributions 5,176,840 5,120,962 4,897,203 Normal Cost (Retirement) 1,356,741 1,310,174 1,241,828 Normal Cost (Disability) 122,517 120,445 112,412 Normal Cost (Death) 12,554 25,663 24,476 Normal Cost (Vesting) 61,935 61,029 61,754 Normal Cost (Refunds) 16,368 16,339 14,407 Total Normal Cost 1,570,115 1,533,650 1,454,877 Present Value of Future Normal Costs 12,430,374 12,007,148 11,462,922 Accrued Liability (Retirement) 23,400,924 22,945,876 21,572,520 Accrued Liability (Disability) 918,629 907,500 844,784 Accrued Liability (Death) 133,298 283,206 263,477 Accrued Liability (Vesting) 240,960 238,917 246,169 Accrued Liability (Refunds) 12,721 12,724 11,690 Accrued Liability (Inactives) ¹ 32,820,154 32,675,224 30,654,646 Share Plan Balances ¹ 252,169 252,169 193,674 Total Actuarial Accrued Liability (EAN AL) 57,778,855 57,315,616 53,786,960 Unfunded Actuarial Accrued Liability (UAAL) 7,612,785 7,149,546 7,522,045 Funded Ratio (AVA / EAN AL) 86.8% 87.5% 86.0% City of Ocoee Municipal Police Officers' and Firefighters' Retirement Trust Fund FOSTER & FOSTER 11

D. Actuarial Present Value of New Assump Old Assump Accrued Benefits 10/1/2017 10/1/2017 10/1/2016 Vested Accrued Benefits Inactives + Share Plan Balances ¹ 33,072,323 32,927,393 30,848,320 Actives 9,391,340 9,266,070 9,091,092 Member Contributions 4,816,997 4,816,997 4,522,330 Total 47,280,660 47,010,460 44,461,742 Non-vested Accrued Benefits 2,766,862 2,688,467 2,309,793 Total Present Value Accrued Benefits (PVAB) 50,047,522 49,698,927 46,771,535 Funded Ratio (MVA / PVAB) 101.2% 101.9% 97.1% Increase (Decrease) in Present Value of Accrued Benefits Attributable to: Plan Amendments 0 0 Assumption Changes 348,595 0 New Accrued Benefits 0 1,870,128 Benefits Paid 0 (2,559,339) Interest 0 3,616,603 Other 0 0 Total 348,595 2,927,392 City of Ocoee Municipal Police Officers' and Firefighters' Retirement Trust Fund FOSTER & FOSTER 12

New Assump Old Assump Valuation Date 10/1/2017 10/1/2017 10/1/2016 Applicable to Fiscal Year Ending 9/30/2019 9/30/2019 9/30/2018 E. Pension Cost Normal Cost (with interest) $1,632,135 $1,594,613 $1,512,708 % of Total Annual Payroll ² 20.89 20.41 20.35 Administrative Expenses (with interest) 83,729 83,749 104,414 % of Total Annual Payroll ² 1.07 1.07 1.40 Payment Required to Amortize Unfunded Actuarial Accrued Liability over 25 years (as of 10/1/2017, with interest) 1,816,426 1,781,275 1,597,791 % of Total Annual Payroll ² 23.25 22.80 21.50 Total Required Contribution 3,532,290 3,459,637 3,214,913 % of Total Annual Payroll ² 45.21 44.28 43.25 Expected Member Contributions 624,905 624,905 594,565 % of Total Annual Payroll ² 8.00 8.00 8.00 Expected City and State Contribution 2,907,385 2,834,732 2,620,348 % of Total Annual Payroll ² 37.21 36.28 35.25 F. Past Contributions Plan Years Ending: 9/30/2017 City and State Requirement 2,235,309 Actual Contributions Made: Members (excluding buyback) 601,901 City 1,802,906 State 432,404 Total 2,837,211 G. Net Actuarial (Gain)/Loss 399,059 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 $7,811,311. City of Ocoee Municipal Police Officers' and Firefighters' Retirement Trust Fund FOSTER & FOSTER 13

H. Schedule Illustrating the Amortization of the Total Unfunded Actuarial Accrued Liability as of: Year Projected Unfunded Actuarial Accrued Liability 2017 7,612,785 2018 6,328,748 2019 5,212,245 2025 3,699,498 2031 1,762,831 2036 83,611 2042 0 I. (i) 3 Year Comparison of Actual and Assumed Salary Increases Actual Assumed Year Ended 9/30/2017 5.38% 5.27% Year Ended 9/30/2016 3.17% 6.00% Year Ended 9/30/2015 1.73% 6.00% (ii) 3 Year Comparison of Investment Return on Actuarial Value Actual Assumed Year Ended 9/30/2017 7.69% 7.95% Year Ended 9/30/2016 8.32% 8.00% Year Ended 9/30/2015 10.11% 8.00% (iii) Average Annual Payroll Growth (a) Payroll as of: 10/1/2017 $7,811,311 10/1/2007 5,909,273 (b) Total Increase 32.19% (c) Number of Years 10.00 (d) Average Annual Rate 2.83% City of Ocoee Municipal Police Officers' and Firefighters' Retirement Trust Fund FOSTER & FOSTER 14

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 Ocoee Municipal Police Officers' and Firefighters' Retirement Trust Fund FOSTER & FOSTER 15

RECONCILIATION OF UNFUNDED ACTUARIAL ACCRUED LIABILITIES (1) Unfunded Actuarial Accrued Liability as of October 1, 2016 $7,522,045 (2) Sponsor Normal Cost developed as of October 1, 2016 860,312 (3) Expected administrative expenses for the year ended September 30, 2017 100,422 (4) Expected interest on (1), (2) and (3) 670,389 (5) Sponsor contributions to the System during the year ended September 30, 2017 2,235,309 (6) Expected interest on (5) 73,072 (7) Expected Unfunded Actuarial Accrued Liability as of September 30, 2017 (1)+(2)+(3)+(4)-(5)-(6) 6,844,787 (8) Change to UAAL due to Assumption Change 463,239 (9) Change to UAAL due to Actuarial (Gain)/Loss 399,059 (10) State Reserve Credit (Firefighters' portion in excess of $171,631.09) (94,300) (11) Unfunded Actuarial Accrued Liability as of October 1, 2017 7,612,785 Type of Date Years 10/1/2017 Amortization Base Established Remaining Amount Amount 10/1/1991 4 306,390 82,432 10/1/1995 8 59,463 8,796 10/1/1996 9 493,127 66,363 10/1/2005 18 568,069 46,679 10/1/2006 19 63,630 5,059 assum. change 10/1/2007 20 (898,955) (69,345) method change 10/1/2007 20 2,321,256 179,062 prior losses 10/1/2007 11 1,878,612 216,550 benefit change 10/1/2007 20 2,240,849 172,859 actuarial loss 10/1/2008 1 287,814 287,814 method change 10/1/2008 11 (474,908) (54,743) actuarial loss 10/1/2009 2 682,798 349,928 actuarial loss 10/1/2010 3 1,334,317 467,177 actuarial loss 10/1/2011 4 1,572,039 422,944 actuarial gain 10/1/2012 5 (613,224) (135,199) benefit change 10/1/2012 25 (716,123) (48,940) actuarial gain 10/1/2013 6 (444,571) (83,651) City of Ocoee Municipal Police Officers' and Firefighters' Retirement Trust Fund FOSTER & FOSTER 16

Type of Date Years 10/1/2017 Amortization Base Established Remaining Amount Amount actuarial gain 10/1/2014 7 (577,751) (95,409) actuarial gain 10/1/2015 8 (970,865) (143,612) assum. change 10/1/2016 19 (60,431) (4,805) state reserve credit 10/1/2016 19 (496,688) (39,493) actuarial loss 10/1/2016 9 289,939 39,019 state reserve credit 10/1/2017 20 (94,300) (7,274) actuarial loss 10/1/2017 10 399,059 49,459 assum. change 10/1/2017 20 463,239 35,734 7,612,785 1,747,404 City of Ocoee Municipal Police Officers' and Firefighters' Retirement Trust Fund FOSTER & FOSTER 17

DETAILED ACTUARIAL (GAIN)/LOSS ANALYSIS (1) Unfunded Actuarial Accrued Liability (UAAL) as of October 1, 2016 $7,522,045 (2) Expected UAAL as of October 1, 2017 6,844,787 (3) Summary of Actuarial (Gain)/Loss, by component: Investment Return (Actuarial Asset Basis) 120,774 Salary Increases (19,498) Active Decrements 349,495 Inactive Mortality 129,490 Other (Includes investment gains on DROP Balances) (181,202) Increase in UAAL due to (Gain)/Loss 399,059 Assumption Changes 463,239 State Reserve Credit (94,300) (4) Actual UAAL as of October 1, 2017 $7,612,785 City of Ocoee Municipal Police Officers' and Firefighters' Retirement Trust Fund FOSTER & FOSTER 18

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 7.90% (previously 7.95%) per year compounded annually, net of investment related expenses. This assumption is supported by the Plan s asset allocation and expected long-term returns by asset class. City of Ocoee Municipal Police Officers' and Firefighters' Retirement Trust Fund FOSTER & FOSTER 19

Normal Retirement Based on results of an Experience Study dated October 30, 2015, the below table reflects the assumed rates of retirement once a member attains Normal Retirement eligibility with at least 25 years of Credited Service: Age 25 or more Years of Credited Service ¹ 45 25.0% 46 25.0% 47 25.0% 48 66.7% 49 66.7% 50+ 100.0% ¹ Additionally, 100% assumed retirement upon the completion of at least 27 years of Credited Service, regardless of age. Also as part of the October 30, 2015 Experience Study, the below table provides rates of retirement for members attaining Normal Retirement eligibility with less than 25 years of Credited Service: Age Less than 25 Years of Credited Service 55 80.0% 56 25.0% 57 25.0% 58 + 100.0% Early Retirement Members eligible for Early Retirement between the ages 45-54 are assumed to retire with an immediate subsidized benefit at the rate of 4% per year (except for a 25% assumption at age 50). These rates were adopted as the result of the October 30, 2015 Experience Study. Termination Rate According to the below table, based on the October 30, 2015 Experience Study. Credited Service Assumed Termination Rate Less than 10 Years 5.0% 10-14 Years 2.0% 15 or more Years 0.0% City of Ocoee Municipal Police Officers' and Firefighters' Retirement Trust Fund FOSTER & FOSTER 20

Disability Rate See table below (1205). It is assumed that 75% of disablements and active Member deaths are service related. These rates are consistent with other Florida municipal special risk retirement programs. Age % Becoming Disabled During the Year 20 0.14% 30 0.18% 40 0.30% 50 1.00% Salary Increases According to the below table, based on the October 30, 2015 Experience Study. Credited Service Assumed Salary Increase Less than 1 Year 13.0% 1-9 Years 5.0% 10 or more Years 4.5% Payroll Growth Actuarial Asset Method Administrative Expenses Funding Method 2.64% for amortization of the Unfunded Actuarial Accrued Liability. Each year, the prior Actuarial Value of Assets is brought forward utilizing the historical geometric 4-year average Market Value returns, net of fees. It is possible that over time this technique will produce an insignificant bias above or below Market Value. $80,547 annually, based on Administrative Expenses incurred during the prior fiscal year. Entry Age Normal Actuarial Cost method. City of Ocoee Municipal Police Officers' and Firefighters' Retirement Trust Fund FOSTER & FOSTER 21

VALUATION NOTES Total Annual Payroll is the projected annual rate of pay for the fiscal year following the valuation date of 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. Normal (Current Year's) Cost is determined for each participant as the present value of future benefits, determined as of the Member s entry age, amortized as a level percentage of compensation over the anticipated number of years of participation, determined as of the entry age. Individual Entry Age Normal Actuarial Cost Method (Level Percent of Compensation) is the method used to determine required contributions under the Plan. The use of this method involves the systematic funding of the Normal Cost (described above) and the Unfunded Accrued (Past Service) Liability. The actuarial accrued liability for active participants is the difference between the present value of future benefits and the present value of future Normal Costs. The actuarial accrued liability for inactive participants is the present value of future benefits. Unfunded Actuarial Accrued Liability (UAAL) is the difference between the actuarial accrued liability (described above) and the actuarial value of assets. Under the Entry Age Normal Actuarial Cost Method, an actuarial gain or loss, based on actual versus expected UAAL, is determined in conjunction with each valuation of the plan. 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. City of Ocoee Municipal Police Officers' and Firefighters' Retirement Trust Fund FOSTER & FOSTER 22

PARTIAL HISTORY OF PREMIUM TAX REFUNDS Received During Increase from Fiscal Year Amount Previous Year 1995 46,204.79 % 1996 56,857.65 23.1% 1997 85,819.55 50.9% 1998 111,603.57 30.0% 1999 113,843.07 2.0% 2000 157,244.38 38.1% 2001 170,142.93 8.2% 2002 190,067.66 11.7% 2003 235,957.64 24.1% 2004 256,369.67 8.7% 2005 261,540.37 2.0% 2006 278,394.77 6.4% 2007 354,246.99 27.2% 2008 414,015.71 16.9% 2009 428,229.25 3.4% 2010 434,497.65 1.5% 2011 433,377.30-0.3% 2012 467,368.03 7.8% 2013 505,507.77 8.2% 2014 515,980.38 2.1% 2015 516,941.66 0.2% 2016 557,159.78 7.8% 2017 564,098.80 1.2% City of Ocoee Municipal Police Officers' and Firefighters' Retirement Trust Fund FOSTER & FOSTER 23

STATEMENT OF FIDUCIARY NET POSITION SEPTEMBER 30, 2017 ASSETS COST VALUE MARKET VALUE Cash and Cash Equivalents: Prepaid Benefits 170,964.05 170,964.05 Money Market 1,927,500.00 1,927,500.00 Cash 3,464.87 3,464.87 Total Cash and Equivalents 2,101,928.92 2,101,928.92 Receivables: Member Contributions in Transit 24,553.19 24,553.19 City Contributions in Transit 74,979.54 74,979.54 Investment Income 44,626.36 44,626.36 Total Receivable 144,159.09 144,159.09 Investments: U. S. Bonds and Bills 2,386,980.00 2,455,057.00 Federal Agency Guaranteed Securities 5,375,045.00 5,288,080.00 Corporate Bonds 3,415,208.77 3,442,672.50 Stocks 14,812,643.88 18,690,136.34 Mutual Funds: Fixed Income 2,179,311.02 2,083,258.90 Equity 10,464,260.02 12,748,890.56 Pooled/Common/Commingled Funds: Real Estate 3,013,278.60 3,721,219.49 Total Investments 41,646,727.29 48,429,314.79 Total Assets 43,892,815.30 50,675,402.80 LIABILITIES Payables: Prepaid City Contribution 22,771.57 22,771.57 Total Liabilities 22,771.57 22,771.57 NET POSITION RESTRICTED FOR PENSIONS 43,870,043.73 50,652,631.23 City of Ocoee Municipal Police Officers' and Firefighters' Retirement Trust Fund FOSTER & FOSTER 24

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FOR THE YEAR ENDED SEPTEMBER 30, 2017 Market Value Basis ADDITIONS Contributions: Member 601,900.88 City 1,802,905.88 State 564,098.80 Total Contributions 2,968,905.56 Investment Income: Net Realized Gain (Loss) 633,710.29 Unrealized Gain (Loss) 3,148,744.02 Net Increase in Fair Value of Investments 3,782,454.31 Interest & Dividends 1,360,943.25 Less Investment Expense¹ (228,320.69) Net Investment Income 4,915,076.87 Total Additions 7,883,982.43 DEDUCTIONS Distributions to Members: Benefit Payments 1,971,760.03 Lump Sum DROP Distributions 399,873.08 Lump Sum Share Distributions 0.00 Lump Sum PLOP Distributions 159,220.83 Refunds of Member Contributions 28,485.49 Total Distributions 2,559,339.43 Administrative Expense 80,547.31 Total Deductions 2,639,886.74 Net Increase in Net Position 5,244,095.69 NET POSITION RESTRICTED FOR PENSIONS Beginning of the Year 45,408,535.54 End of the Year 50,652,631.23 ¹Investment related expenses include investment advisory, custodial and performance monitoring fees. City of Ocoee Municipal Police Officers' and Firefighters' Retirement Trust Fund FOSTER & FOSTER 25

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 10.95% 09/30/2015 0.84% 09/30/2016 8.41% 09/30/2017 10.90% Annualized Rate of Return for prior four (4) years: 7.69% (A) 10/01/2016 Actuarial Assets: $46,264,914.73 (I) Net Investment Income: 1. Interest and Dividends 1,360,943.25 2. Realized Gains (Losses) 633,710.29 3. Change in Actuarial Value 1,805,803.20 4. Investment Related Expenses (228,320.69) Total 3,572,136.05 (B) 10/01/2017 Actuarial Assets: $50,166,069.60 Actuarial Asset Rate of Return = 2I/(A+B-I): 7.69% 10/01/2017 Limited Actuarial Assets: $50,166,069.60 10/01/2017 Market Value of Assets: $50,652,631.23 Actuarial Gain/(Loss) due to Investment Return (Actuarial Asset Basis) ($120,774.43) ¹Market Value Basis, net of investment related expenses. City of Ocoee Municipal Police Officers' and Firefighters' Retirement Trust Fund FOSTER & FOSTER 26

CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS SEPTEMBER 30, 2017 Actuarial Asset Basis REVENUES Contributions: Member 601,900.88 City 1,802,905.88 State 564,098.80 Total Contributions 2,968,905.56 Earnings from Investments: Interest & Dividends 1,360,943.25 Net Realized Gain (Loss) 633,710.29 Change in Actuarial Value 1,805,803.20 Total Earnings and Investment Gains 3,800,456.74 EXPENDITURES Distributions to Members: Benefit Payments 1,971,760.03 Lump Sum DROP Distributions 399,873.08 Lump Sum Share Distributions 0.00 Lump Sum PLOP Distributions 159,220.83 Refunds of Member Contributions 28,485.49 Total Distributions 2,559,339.43 Expenses: Investment related¹ 228,320.69 Administrative 80,547.31 Total Expenses 308,868.00 Change in Net Assets for the Year 3,901,154.87 Net Assets Beginning of the Year 46,264,914.73 Net Assets End of the Year² 50,166,069.60 ¹Investment related expenses include investment advisory, custodial and performance monitoring fees. ²Net Assets may be limited for actuarial consideration. City of Ocoee Municipal Police Officers' and Firefighters' Retirement Trust Fund FOSTER & FOSTER 27

DEFERRED RETIREMENT OPTION PLAN ACTIVITY October 1, 2016 to September 30, 2017 Beginning of the Year Balance 1,418,940.37 Plus Additions 631,651.30 Investment Return Earned 91,539.17 Less Distributions (399,873.08) End of the Year Balance 1,742,257.76 City of Ocoee Municipal Police Officers' and Firefighters' Retirement Trust Fund FOSTER & FOSTER 28

SUPPLEMENTAL CHAPTER 175 and 185 SHARE PLAN ACTIVITY October 1, 2016 through September 30, 2017 9/30/2016 Balance 193,674 Prior Year Adjustment 0 Plus Additions 37,395 Investment Return Earned (est.) 21,110 Administrative Fees (est.) (10) Less Distributions 0 9/30/2017 Balance (est.) 252,169 City of Ocoee Municipal Police Officers' and Firefighters' Retirement Trust Fund FOSTER & FOSTER 29

RECONCILIATION OF CITY'S SHORTFALL/(PREPAID) CONTRIBUTION FOR THE FISCAL YEAR ENDED (FYE) SEPTEMBER 30, 2017 (1) Total Required Contribution Rate 37.71% (2) Pensionable Payroll Derived from Member Contributions $7,523,761.00 (3) Total Required Contribution (1) x (2) 2,837,210.27 (4) Less Actual Member Contributions (601,900.88) (5) Less Allowable State Contribution (432,403.51) (6) Equals Required City Contribution for Fiscal 2017 1,802,905.88 (7) Less 2016 Prepaid Contribution (11,692.71) (8) Less Actual City Contributions (1,813,984.74) (9) Equals City's Shortfall/(Prepaid) Contribution as of ($22,771.57) September 30, 2017 City of Ocoee Municipal Police Officers' and Firefighters' Retirement Trust Fund FOSTER & FOSTER 30

STATISTICAL DATA 10/1/2014 10/1/2015 10/1/2016 10/1/2017 Actives Number 115 113 114 116 Average Current Age 38.5 38.5 38.0 38.2 Average Age at Employment 28.7 29.0 28.5 28.5 Average Past Service 9.8 9.5 9.5 9.7 Average Annual Salary $67,069 $65,763 $65,194 $67,339 Service Retirees Number 33 36 42 45 Average Current Age 61.6 61.7 61.6 62.0 Average Annual Benefit $37,206 $39,778 $40,390 $41,295 DROP Retirees Number 7 10 10 10 Average Current Age 53.7 52.9 53.6 53.7 Average Annual Benefit $61,951 $64,901 $59,767 $60,440 Beneficiaries Number 1 1 1 1 Average Current Age 54.5 55.5 56.5 57.5 Average Annual Benefit $12,218 $12,218 $12,218 $12,218 Disability Retirees Number 6 6 7 7 Average Current Age 51.2 52.2 51.9 52.9 Average Annual Benefit $25,691 $25,691 $25,867 $25,867 Terminated Vested Number 24 25 25 26 Average Current Age ¹ 44.8 46.7 45.3 46.3 Average Annual Benefit ¹ $11,651 $11,263 $12,459 $12,459 ¹ The Average Annual Benefit and Average Age excludes participants awaiting a refund of contributions. City of Ocoee Municipal Police Officers' and Firefighters' Retirement Trust Fund FOSTER & FOSTER 31

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 3 3 1 0 0 0 0 0 0 0 0 7 25-29 2 4 3 0 3 3 0 0 0 0 0 15 30-34 0 0 3 1 2 11 6 0 0 0 0 23 35-39 2 0 0 0 0 11 10 2 0 0 0 25 40-44 0 0 0 0 1 0 3 4 0 0 0 8 45-49 0 0 0 0 1 5 7 7 7 0 0 27 50-54 1 0 0 0 0 0 4 1 2 0 0 8 55-59 0 0 1 1 0 1 0 0 0 0 0 3 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 8 7 8 2 7 31 30 14 9 0 0 116 City of Ocoee Municipal Police Officers' and Firefighters' Retirement Trust Fund FOSTER & FOSTER 32

VALUATION PARTICIPANT RECONCILIATION 1. Active lives a. Number in prior valuation 10/1/2016 114 b. Terminations i. Vested (partial or full) with deferred benefits (2) ii. Non-vested or full lump sum distribution received (1) c. Deaths i. Beneficiary receiving benefits 0 ii. No future benefits payable 0 d. Disabled 0 e. Retired (1) f. DROP (2) f. Continuing participants 108 g. New entrants 8 h. Total active life participants in valuation 116 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 42 10 1 7 25 85 Retired 3 (2) 0 0 0 1 DROP 0 2 0 0 0 2 Vested Deferred 0 0 0 0 2 2 Death, With Survivor 0 0 0 0 0 0 Death, No Survivor 0 0 0 0 0 0 Disabled 0 0 0 0 0 0 Refund of Contributions 0 0 0 0 (1) (1) 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 45 10 1 7 26 89 City of Ocoee Municipal Police Officers' and Firefighters' Retirement Trust Fund FOSTER & FOSTER 33

SUMMARY OF PLAN PROVISIONS (Through Ordinance No. 2017-032) Eligibility Credited Service Salary Full-time employees who are classified as Police Officers or Firefighters participate as a condition of employment. Total years and fractional parts of years of employment with the City as a Police Officer or Firefighter. Total compensation reportable on form W-2, plus tax deferred, tax sheltered, and tax-exempt items of income. Effective October 1, 2012, Salary shall not include overtime pay in excess of 300 hours per calendar year. Additionally, any unused paid time off at the time of termination of employment is not pensionable. Average Final Compensation Average Salary for the 5 best years of the 10 years immediately preceding retirement or termination. Member Contributions City and State Contributions 8.0% of Salary. Remaining amount required in order to pay current costs and amortize unfunded past service cost, if any, as provided in Part VII, Chapter 112, F.S. Normal Retirement Date Benefit Form of Benefit Earlier of Age 55 and 10 years of Credited Service, or 25 years of Credited Service, regardless of age. 3.5% of Average Final Compensation for each year of Credited Service. For firefighters hired after September 30, 2015 and Police Officers hired after May 16, 2017, the benefit accrual rate is 3.25% for each year of Credited Service. Ten Year Certain and Life Annuity (options available). City of Ocoee Municipal Police Officers' and Firefighters' Retirement Trust Fund FOSTER & FOSTER 34

Maximum Benefit For Members hired before October 1, 2012, 100% of Average Final Compensation. For Members hired after September 30, 2012, 91% of Average Final Compensation. For members hired under the 3.25% benefit accrual rate, the maximum benefit is 81.25% of Average Final Compensation. Early Retirement Eligibility Age 45 and 5 Years of Credited Service. Benefit Accrued benefit, reduced 3% per year to age 50 and actuarially reduced from age 50 to age 45. Vesting Disability Schedule Benefit Amount 100% after 5 years of Credited Service. For firefighters hired after September 30, 2015 and Police Officers hired after May 16, 2017, 100% vesting occurs after the completion of 7 years of Credited Service. Member will receive the vested portion of his (her) accrued benefit payable at the otherwise Early or Normal Retirement Date. Eligibility Service Incurred Non-Service Incurred Exclusions Covered from Date of Employment. 10 years of Credited Service. Disability resulting from use of drugs, illegal participation in riots, service in military, etc. Benefit Duration Benefit accrued to date of disability but not less than 42% of Average Final Compensation (Service Incurred). Additionally, the benefit cannot exceed a percentage of Average Final Compensation as outlined above under Maximum Benefit. Payable for life (with 120 payments guaranteed) or until recovery (as determined by the Board). Optional forms of payment are available. City of Ocoee Municipal Police Officers' and Firefighters' Retirement Trust Fund FOSTER & FOSTER 35

Death Benefits Pre-Retirement Vested Non-Vested Post-Retirement Monthly accrued benefit payable to designated beneficiary for 10 years. Refund of accumulated contributions without interest. Benefits payable to beneficiary in accordance with option selected at retirement. Board of Trustees a. Two Commission appointees, b. One Member from each Department elected by the Membership, and c. Fifth Member elected by other 4 and appointed by Commission. Deferred Retirement Option Plan Eligibility Participation Rate of Return Form of Distribution Within 12 months following satisfaction of Normal Retirement requirements. Not more than 60 months. At election of Member (may change once during DROP period) either: 1) actual net rate of investment return (total return net of brokerage commissions, transaction costs, and management fees), or 2) 6.5%. Earnings are credited each fiscal quarter (2% for Members entering the DROP after September 30, 2012). Cash lump sum (options available) payable at termination of employment. City of Ocoee Municipal Police Officers' and Firefighters' Retirement Trust Fund FOSTER & FOSTER 36

BAC-DROP Eligibility Participation Rate of Return Form of Distribution After first eligibility for Normal Retirement. Retroactively applied to date chosen by Member, but not prior to the date of first eligibility for Normal Retirement. Fixed 2.0% effective annual rate. Cash lump sum (options available) payable at termination of employment. Supplement Benefit (Police only) Initial Crediting Annual Crediting Investment earnings Expenses Vesting Eligibility for Distribution Pursuant to a Mutual Consent Agreement between the City and PBA, $193,673.55 from the Excess State Monies Reserve is allocated to eligible Police Officers. 50% of annual Chapter 185 Premium tax revenues received by the City in excess of $223,377.02 shall be allocated based on a method to be determined. 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. Allocated annually in proportion to individual Share Account Balances as a percentage of total plan assets. 100% upon completion of five years of Credited Service, unless eligible for payment of benefits upon termination of employment. As soon as administratively practicable following the valuation date after termination of employment. City of Ocoee Municipal Police Officers' and Firefighters' Retirement Trust Fund FOSTER & FOSTER 37

GASB 67 STATEMENT OF FIDUCIARY NET POSITION SEPTEMBER 30, 2017 ASSETS Cash and Cash Equivalents: Prepaid Benefits Money Market Cash Total Cash and Equivalents Receivables: Member Contributions in Transit City Contributions in Transit Investment Income Total Receivable Investments: U. S. Bonds and Bills Federal Agency Guaranteed Securities Corporate Bonds Stocks Mutual Funds: Fixed Income Equity Real Estate Total Investments Total Assets Total Liabilities NET POSITION RESTRICTED FOR PENSIONS MARKET VALUE 170,964 1,927,500 3,465 2,101,929 24,553 74,980 44,626 144,159 2,455,057 5,288,080 3,442,673 18,690,136 2,083,259 12,748,891 3,721,219 48,429,315 50,675,403 0 50,675,403 City of Ocoee Municipal Police Officers' and Firefighters' Retirement Trust Fund FOSTER & FOSTER 38

GASB 67 STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FOR THE YEAR ENDED SEPTEMBER 30, 2017 Market Value Basis ADDITIONS Contributions: Member 601,901 City 1,813,985 State 564,098 Total Contributions 2,979,984 Investment Income: Net Increase in Fair Value of Investments 3,782,454 Interest & Dividends 1,360,943 Less Investment Expense¹ (228,321) Net Investment Income 4,915,076 Total Additions 7,895,060 DEDUCTIONS Distributions to Members: Benefit Payments 1,971,760 Lump Sum DROP Distributions 399,873 Lump Sum PLOP Distributions 159,221 Refunds of Member Contributions 28,485 Total Distributions 2,559,339 Administrative Expense 80,547 Total Deductions 2,639,886 Net Increase in Net Position 5,255,174 NET POSITION RESTRICTED FOR PENSIONS Beginning of the Year 45,420,229 End of the Year 50,675,403 ¹Investment related expenses include investment advisory, custodial and performance monitoring fees. City of Ocoee Municipal Police Officers' and Firefighters' Retirement Trust Fund FOSTER & FOSTER 39

GASB 67 NOTES TO THE FINANCIAL STATEMENTS (For the Year Ended September 30, 2017) Plan Description Plan Administration The Plan is a single-employer defined benefit pension plan administered by the Plan's Board of Trustees comprised of: a. Two Commission appointees, b. One Member from each Department elected by the Membership, and c. Fifth Member elected by other 4 and appointed by Commission. Plan Membership as of October 1, 2016: Inactive Plan Members or Beneficiaries Currently Receiving Benefits 60 Inactive Plan Members Entitled to But Not Yet Receiving Benefits 25 Active Plan Members 114 199 Benefits Provided The Plan provides retirement, termination, disability and death benefits. Normal Retirement: Date: Earlier of Age 55 and 10 years of Credited Service, or 25 years of Credited Service, regardless of age. Benefit: 3.5% of Average Final Compensation for each year of Credited Service. For firefighters hired after September 30, 2015 and Police Officers hired after May 16, 2017, the benefit accrual rate is 3.25% for each year of Credited Service. Maximum Benefit: For Members hired before October 1, 2012, 100% of Average Final Compensation. For Members hired after September 30, 2012, 91% of Average Final Compensation. For members hired under the 3.25% benefit accrual rate, the maximum benefit is 81.25% of Average Final Compensation. Early Retirement: Eligibility: Age 45 and 5 Years of Credited Service. Benefit: Accrued benefit, reduced 3% per year to age 50 and actuarially reduced from age 50 to age 45. Vesting: Schedule: 100% after 5 years of Credited Service. For firefighters hired after September 30, 2015 and Police Officers hired after May 16, 2017, 100% vesting occurs after the completion of 7 years of Credited Service. Benefit Amount: Member will receive the vested portion of his (her) accrued benefit payable at the otherwise Early or Normal Retirement Date. Disability: Eligibility: Service Incurred: Covered from Date of Employment. Non-Service Incurred: 10 years of Credited Service. Benefit: Benefit accrued to date of disabil ity but not less than 42% of Aver age Final Compensation (Service Incurred). Additionally, the benefit cannot exceed a percentage of Average Final Compensation as outlined above under Maximum Benefit. Pre-Retirement Death Benefits: Vested: Monthly accrued benefit payable to designated beneficiary for 10 years. Non-Vested: Refund of accumulated contributions without interest. Supplement Benefit (Police only): Initial Crediting: Pursuant to a Mutual Consent Agreement between the City and PBA, $193,673.55 from the Excess State Monies Reserve is allocated to eligible Police Officers. Annual Crediting: 50% of annual Chapter 185 Premium tax revenues received by the City in excess of $223,377.02 shall be allocated based on a method to be determined. Investment earnings: 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. Expenses: Allocated annually in proportion to individual Share Account Balances as a percentage of total plan assets. Vesting: 100% upon completion of five years of Credited Service, unless eligible for payment of benefits upon termination of employment. Eligibility for Distribution: As soon as administratively practicable following the valuation date after termination of employment. City of Ocoee Municipal Police Officers' and Firefighters' Retirement Trust Fund FOSTER & FOSTER 40

GASB 67 Contributions Member Contributions: 8.0% of Salary. City and State Contributions: Remaining amount required in order to pay current costs and amortize unfunded past service cost, if any, as provided in Part VII, Chapter 112, Florida Statutes. Investments Investment Policy: The following was the Board's adopted asset allocation policy as of September 30, 2017: Asset Class Target Allocation Domestic Equity 45% International Equity 15% Broad Market Fixed Income 25% Global Bond 5% Real Estate 10% 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 10.90 percent. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. Deferred Retirement Option Program Eligibility: Within 12 months following satisfaction of Normal Retirement requirements. Participation: Not more than 60 months. Rate of Return: At election of Member (may change once during DROP period) either: 1) actual net rate of investment return (total return net of brokerage commissions, transaction costs, and management fees), or 2) 6.5%. Earnings are credited each fiscal quarter (2% for Members entering the DROP after September 30, 2012). Additionally, Members BAC-DROP Eligibility: After first eligibility for Normal Retirement. Participation: Retroactively applied to date chosen by Member, but not prior to the date of first eligibility for Normal Retirement. Rate of Return: Fixed 2.0% effective annual rate. The DROP balance as September 30, 2017 is $1,742,258. City of Ocoee Municipal Police Officers' and Firefighters' Retirement Trust Fund FOSTER & FOSTER 41

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 $ 56,945,612 Plan Fiduciary Net Position $ (50,675,403) Sponsor's Net Pension Liability $ 6,270,209 Plan Fiduciary Net Position as a percentage of Total Pension Liability 88.99% 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 Service based Discount Rate 7.90% Investment Rate of Return 7.90% 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. Mortality Rate Healthy Active Lives: Female: RP2000 Generational, 100% Combined Healthy White Collar, Scale BB. Male: RP2000 Generational, 10% Combined Healthy White Collar / 90% Combined Healthy 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 October 30, 2015. 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: Long Term Expected Real Asset Class Rate of Return Domestic Equity 7.50% International Equity 8.50% Broad Market Fixed Income 2.50% Global Bond 3.50% Real Estate 4.50% City of Ocoee Municipal Police Officers' and Firefighters' Retirement Trust Fund FOSTER & FOSTER 42