Submitted By: Todd Swanson
Presentation By: Janice Mitchell
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Department: Finance
FORMAL TITLE:
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Ordinance 2026-21 amending Chapter 43, Article V, Code of Ordinances, City of Ocala, Florida (Police Officers' Retirement System), to conform to the 2025-2028 Collective Bargaining Agreement Between the City of Ocala and the Fraternal Order of Police
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OCALA’S RELEVANT STRATEGIC GOALS:
Fiscally Sustainable
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
The City of Ocala and the Florida State Fraternal Order of Police Lodge #129 successfully negotiated and executed a Collective Bargaining Agreement effective October 1, 2025, through September 30, 2028. As part of those negotiations, the parties agreed to several modifications to the Police Officers' Retirement System.
The negotiated pension changes were implemented administratively beginning October 1, 2025, consistent with the terms of the Collective Bargaining Agreement. However, several provisions require amendments to Chapter 43, Article V of the City Code to incorporate the agreed-upon changes into the governing ordinance formally.
The proposed ordinance amends the Police Officers' Retirement System to:
• Increase employee pension contributions from 8 percent to 9 percent of salary.
• Establish a 5 percent contribution requirement for members entering the Deferred Retirement Option Plan (DROP) on or after October 1, 2025.
• Create a cost-of-living adjustment (COLA) fund for eligible future retirees.
• Revise the allocation of Chapter 185 premium tax revenues.
• Modify supplemental benefit provisions.
• Establish revised DROP interest crediting provisions for members entering DROP on or after October 1, 2025.
• Provide transitional provisions for current members and retirees.
These amendments are intended to codify the pension provisions negotiated through collective bargaining and align the City Code with current retirement plan administration.
FINDINGS AND CONCLUSIONS:
The proposed ordinance brings Chapter 43, Article V of the City Code into conformity with the pension provisions negotiated and agreed upon in the current Collective Bargaining Agreement between the City and the Fraternal Order of Police.
Approval of the ordinance will formally codify the retirement benefit structure currently being administered and ensure consistency between the Collective Bargaining Agreement, retirement plan documents, and City Code. Staff recommends approval.
FISCAL IMPACT:
The fiscal impacts associated with these pension modifications were evaluated and incorporated during collective bargaining negotiations and actuarial review of the Police Officers' Retirement System.
The ordinance includes increases in employee contributions, revised Chapter 185 revenue allocations, the creation of a COLA fund, and modifications to DROP provisions. These changes are intended to support the long-term sustainability of the retirement system while providing future retirement benefits consistent with the negotiated agreement.
No additional budget amendment is required.
PROCUREMENT REVIEW:
N/A
LEGAL REVIEW:
This ordinance has been reviewed and approved for form and legality by City Attorney, William E. Sexton.
ALTERNATIVE:
• Approve with Changes
• Table
• Deny
ORDINANCE 2026-21
AN ORDINANCE OF THE CITY OF OCALA, FLORIDA AMENDING AND REVISING CHAPTER 43, ARTICLE V, CODE OF ORDINANCES, CITY OF OCALA, FLORIDA, (POLICE OFFICERS’ RETIREMENT SYSTEM), TO CONFORM TO THE 2025-2028 COLLECTIVE BARGAINING AGREEMENT BETWEEN THE CITY OF OCALA, FLORIDA AND THE FRATERNAL ORDER OF POLICE; AMENDING MEMBER CONTRIBUTION RATES; PROVIDING FOR DROP CONTRIBUTIONS; ESTABLISHING A COST OF LIVING ADJUSTMENT FUND; REVISING CHAPTER 185 REVENUE ALLOCATION; LIMITING SUPPLEMENTAIL BENEFITS; AMENDING DROP INTEREST PROVISIONS; PROVIDING TRANSITIONAL PROVISIONS; PROVIDING DIRECTION TO STAFF; PROVIDING DIRECTION TO THE CODIFIER; REPEALING INCONSISTENT AND/OR CONFLICTING PROVISONS; PROVIDING FOR SEVERABILITY OF ORDINANCE PROVISIONS; PROVIDING FOR MODIFICATIONS ARISING FROM CONSIDERATION AT A PUBLIC HEARING; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of Ocala, Florida, in accordance with its Charter, the Code of Ordinances, City of Ocala, Florida and Florida law, operates a paid, professional law enforcement agency called the Ocala Police Department; and
WHEREAS, the Florida State Fraternal Order of Police Lodge #129 (hereinafter referred to as “FOP, Lodge #129”) provides representation and collective bargaining services to the men and women who serve the City of Ocala, Florida and its citizens as employees of the Ocala Police Department; and
WHEREAS, for many years, the City of Ocala, Florida and FOP, Lodge #129 have had a collective bargaining agreement which formally outlined the details of their relationship vis-à-vis the employment of police officers by the City of Ocala, Florida; and
WHEREAS, in or about mid-to late 2025, through a series of cooperative negotiations, the City of Ocala, Florida and the FOP, Lodge #129 agreed upon updated terms and conditions for their relationship which were reduced to writing and which became the Collective Bargaining Agreement between the City of Ocala and Florida State Fraternal Order of Police Lodge #129 (October 1, 2025 through September 30, 2028) (hereinafter referred to as the “CBA”); and
WHEREAS, included in the CBA were changes to the policies and procedures utilized by the City of Ocala, Florida for the operation and management of its police department; and
WHEREAS, it was the intent of both the City of Ocala, Florida and FOP, Lodge #129 that the aforementioned updates to their collective bargaining agreement be effective at the outset of the next fiscal year, October 1, 2025; and
WHEREAS, the City of Ocala, Florida implemented the aforementioned updates to the collective bargaining agreement effective on October 1, 2025; and
WHEREAS, the City Council of the City of Ocala, Florida now desires to amend Chapter 43, Article V, Code of Ordinances, City of Ocala, Florida, so as to bring said code provision into compliance with aforementioned updates which have been in effect since October 1, 2025, as agreed upon by the City of Ocala and the FOP, Lodge #129 in the CBA; and
WHEREAS, the City Council of the City of Ocala, Florida finds and determines that this ordinance and the amendment to Chapter 43, Article V, Code of Ordinances, City of Ocala, Florida, contained herein, is intended to and does protect the health, safety and welfare of the citizens of Ocala, Florida; and
WHEREAS, the City Council of the City of Ocala, Florida finds and determines that this ordinance and the amendment to Chapter 43, Article V, Code of Ordinances, City of Ocala, Florida, contained herein is in the best interest of the City of Ocala, Florida and its citizens; and
NOW THEREFORE, be it ordained, by the City Council of the City of Ocala, Florida, in regular session, as follows:
Section 1. Ratification, Adoption and Incorporation of Recitals.
The City Council of the City of Ocala, Florida ratifies the above-outlined recitals as true and correct; adopts and incorporates them herein as part and parcel of this ordinance.
Section 2. Purpose and Authority for Ordinance.
This ordinance is adopted for the purpose of amending and revising Chapter 43, Article V, Code of Ordinances, City of Ocala, Florida, so as to bring said code provision into conformity with the changes agreed to by the City of Ocala, Florida and the Florida State Fraternal Order of Police Lodge #129 and is adopted pursuant to the authority granted by Chapter 166, Florida Statutes; and other relevant provisions of Florida and federal law.
Section 3. Amendment of Chapter 43, Article V, Code of Ordinances, City of Ocala, Florida.
A. Section 43-115(a)(1), Code of Ordinances, City of Ocala, Florida, is hereby amended by replacement in its entirety with the following:
Each member of the system shall be required to make regular contributions to the fund in the amount of eight nine percent (9%) of his salary.
B. Section 43-115(a)(3), Code of Ordinances, City of Ocala, Florida, is hereby created and shall state as follows:
(3) DROP Member Contributions. Each member entering the Deferred Retirement Option Plan (DROP) on or after October 1, 2025, shall contribute five percent (5%) of salary to the Plan for the purpose of funding the COLA Fund established herein.
C. A new Section 43-115(e), Code of Ordinances, City of Ocala, Florida, is hereby created and shall state as follows:
(e) Chapter 185 Allocation. Beginning with Chapter 185 premium tax revenues received in calendar year 2026, the first Three Hundred Thousand Dollars ($300,000.00) received annually shall be applied to reduce the City’s required contribution to the Plan. Fifty percent (50%) of Chapter 185 revenues received in excess of $300,000.00 shall be applied to the COLA Fund and fifty percent (50%) shall be applied to offset the City’s required contribution.
D. Section 43-116(f), Code of Ordinances, City of Ocala, Florida, is hereby deleted in its entirety.
E. Section 43-116(g), Code of Ordinances, City of Ocala, Florida, is hereby amended by replacement in its entirety with the following:
(g) Limitation on Supplemental Benefits. Effective November 1, 2015, and consistent with collective bargaining agreements in effect thereafter, no supplemental benefit shall accrue for service performed after November 1, 2015, except as expressly provided in this Article. Nothing herein shall be construed to impair benefits vested prior to that date.
F. Section 43-116(h), Code of Ordinances, City of Ocala, Florida, is hereby deleted in its entirety.
G. A new Section 43-140, Code of Ordinances, City of Ocala, Florida, is hereby created and shall state as follows:
43-140. Cost of Living Adjustment (COLA) Fund.
(a) Establishment. Effective October 1, 2025, a Cost-of-Living Adjustment (COLA) Fund is established to provide a lifetime COLA benefit to eligible retirees.
(b) Funding Sources. The COLA Fund shall be funded by:
(1) Fifty percent (50%) of Chapter 185 revenues in excess of $300,000.00 beginning in calendar year 2026;
(2) Member contributions in excess of eight percent (8%) of salary;
(3) Five percent (5%) contributions made by DROP members; and
(4) Net investment return attributable to the Fund.
(c) Eligibility.
(1) COLA benefits shall be payable only to members who retire or separate from service on or after October 1, 2025;
(2) COLA benefits shall be payable only for the lifetime of the retiree;
(3) COLA benefits shall not be payable to survivors.
(d) Service Credit Calculation.
(1) A full year shall mean twelve (12) completed months;
(2) A month shall be deemed complete if the member is in service more than fifteen (15) days in a calendar month;
(3) In-line-of-duty deaths and in-line-of-duty disabilities shall be treated as having at least twenty-five (25) years of credited service for COLA purposes;
(4) Deferred vested members shall begin receiving COLA benefits at their early or normal retirement date, when benefits commence.
(e) Asset-Based Distribution. COLA benefits shall be payable only to the extent sufficient assets exist in the COLA Fund and no COLA benefit is guaranteed.
H. A new Section 43-141, Code of Ordinances, City of Ocala, Florida, is hereby created and shall state as follows:
43-141. DROP Interest Provisions.
(a) Members entering DROP on or after October 1, 2025, shall earn interest on their DROP balances at a rate equal to the market rate of return on pension fund investments for the preceding plan year, net of investment-related expenses, with a minimum of one percent (1%) and a maximum of three percent (3%).
(b) Members entering DROP prior to October 1, 2025, shall continue to receive interest in accordance with the provisions in effect at the time of entry.
Section 4. Direction to Staff.
The City Council of the City of Ocala, Florida directs staff to take any and all steps necessary to effectuate the adoption and implementation of this ordinance; and all other matters as provided for above and herein as well as to ensure the orderly and effective administration and implementation of the intent of this ordinance and the specific matters outlined herein.
Section 5. Direction to the Codifier.
It is the intention of the City Council of the City of Ocala, Florida that (1) this ordinance shall become and be made a part of the Code of Ordinances, City of Ocala, Florida, (2) the sections and paragraphs of this ordinance may be renumbered or relettered in order to accomplish said intention; (3) terms or headings not affecting the intent of this ordinance may be changed to further accomplish said intention; and (4) any scrivener’s error(s) contained herein which do not affect the intent of this ordinance be corrected with the authorization of the City Manager or their designee and without the need for additional public hearings or consideration by the City Council.
Section 6. Repealing Inconsistent and/or Conflicting Provisions.
The City Council of the City of Ocala, Florida hereby specifically repeals, to the extent of any such conflict, any and all ordinances, resolutions, policies, procedures and/or other articles which are conflicting and/or inconsistent with this ordinance and the intent and direction provided by the City Council herein.
Section 7. Severability of Ordinance Provisions.
If any section, phrase, sentence or portion of this ordinance is for any reason held invalid or unconstitutional by any court of competent jurisdiction, it is the intent of the City Council of the City of Ocala, Florida that (1) such portion shall be deemed a separate, distinct and independent provision; (2) such holding shall not affect the validity of the remaining portions hereof; and (3) this ordinance be adopted as though any such provision was not included herein.
Section 8. Modifications Arising from Consideration at a Public Hearing.
It is the intention of the City Council of the City of Ocala, Florida that (1) the provisions of this ordinance may be modified as a result of its consideration by the City Council of matters that may arise during the public hearing(s) at which this ordinance is considered; and (2) any such modifications shall be incorporated into the final version of this ordinance.
Section 9. Effective Date of Ordinance.
This ordinance shall become effective immediately upon approval by the Mayor or becoming law without such approval.
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PASSED AND ADOPTED, in a regular session with a quorum present and voting, by the City Council of the City of Ocala, Florida this ____ day of July 2026.
CITY OF OCALA, FLORIDA
ATTEST: CITY OF OCALA
By: By:
Angel B. Jacobs Ire J. Bethea Sr.
City Clerk President, Ocala City Council
Approved/Denied by me as Mayor of the City of Ocala, Florida, on __________________, 2026.
By: __________________________________
Ben Marciano
Mayor
Approved as to form and legality:
By: _________________________________
William E. Sexton
City Attorney
Ordinance No: 2026-21
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