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4.A. Fire Relief Association
4 ROSEMOUNT CITY COUNCIL City Council Work Session: March 11, 2014 EXECUTIVE SUMMARY AGENDA ITEM: Fire Relief Association GENDA SECTION: PREPARED BY: Dwight Johnson, City Administrator AGENDA NO. :- ATTACHMENTS: Information from Fire Relief Association, Memo dated March 13, 2013 on general Fire Department Compensation issues, 2001 Council Report on Fire Pensions APPROVED BY: 00 RECOMMENDED ACTION: Discussion Item BACKGROUND Mayor Droste sits on the Fire Relief Association Board. Recently, the Board has had some discussion regarding increasing the benefit level for the Fire Pension from $6900 per year of service to $7000. The City currently levies $171,000 per year to support the Fire Relief Association. The Mayor invited the Fire Relief Association officers to a council meeting to discuss their plans. DISCUSSION For budget planning purposes, the City needs to know what assumptions the Fire Relief Association is making about the City's future levies for the Fire Relief Association. It is also necessary to know if the Fire Relief Association is allowing for possible growth in membership in the actuarial calculations. Chief Schroeder would like to add eight firefighters this year. Over the past two years, the City has made the retention and recruitment of additional firefighters a top priority, and has increased the firefighter stipends substantially to assist with this. We have also made several significant commitments for equipment and vehicles to make the work of the firefighters easier and more effective. Research indicates that our Fire Pension benefit is one of the highest in the area, and committing tax dollars to increasing the pension benefit may affect our ability to continue with current initiatives to recruit, retain and equip the current firefighters. Information from the State Auditor's Office indicates that the investment return for Fire Relief Association funds has been well below the rate of return of other relief associations. Recently, the Relief Board has taken steps to hire a new investment manager and the Board may wish to update the Council on this action also, since it also affects how much tax support is needed. We have also heard that the State is increasing the insurance tax proceeds that it gives to the City for support of the Fire Relief Association and it would be good to get more information about this from the Board also. RECOMMENDATION The Council should try to arrive at an understanding and agreement about how much tax levy should be contributed to the Fite Relief Association in 2015 and future years to help prepare our 2015 budget. Analysis for proposed Relief Association yearly benefit level increase 2013 Schedule Form Year End Numbers Benefit Level $6,900 Members 41 Active 7 Deferred Investment Gain Projection 10% Surplus $381,903 Required Municipal Contribution $0 2013 Schedule Form Year End Numbers with a$200 yearly benefit level increase Benefit Level $7,100 Members 41 Active 7 Deferred Investment Gain Projection 10% Surplus $326,799 Required Municipal Contribution $0 2013 Schedule Form Year End Numbers with a$300 yearly benefit level increase Benefit Level $7,300 Members 41 Active 7 Deferred Investment Gain Projection 10% Surplus $299,247 Required Municipal Contribution $0 NOTE:The above numbers are from the December quarterly meeting. At that time the Investment gain was projected at 10%. The actual year end investment gain was about 10.8%,which would increase the surplus amount on the above numbers by$22,000. If you have any questions or need more information you can email me at scott.engelmann @ci.rosemount.mn.us or call my cell 651-402-1922. - ------ini Form SC-13 Page 1 Schedule Form for Lump-Sum Pension Plans Reporting Year 2013 Determination of Plan Liabilities and Required Municipal Contribution for 2014 Relief Association: Rosemount Fire Relief Association County! Dakota Counties: Enter Annual benefit level in effect for 2013: 7,100 (If you change your benefit level before 12/31/2013,the SC must be recalculated at the new level.) 2013 2014 Subtotal of Page 1 Liability-Active Members I 1,956,192 2,208,668 , Active Member Information Please Enter Dates in this format: 3/7/2014 Leaves of To end of 2013 To end of 2014 Absence Fire Department and Breaks Return to Date of Entry in Service Years Years Birth Date Service Member of Accrued of Accrued Name Status (months) ? Service Liability Service Liability 1 Scott Aker Paid _"Y 04/27/1982 ❑ 32 0 33 0 ,2 Leigh Anderson Active 11/10/1992 ❑ 20 142,000 21 149,100 3 Chris Besnett Active 1 02/26/2008 ❑ 4 18,460 5 23,714 4 Tom Bigalk Active 1 08/08/2005 _ El 8 40,896 9 47,286 5 Carl Bourdages Active C 01/01/2007 ❑ 7 34,932 8 40,896 _ 6 Chris Dyson Active C 03/01/2000 ❑ 14 84,064 15 92,584 7 Scott Engelmann Active C 09/12/1995 r El 18 120,558 19 130,924 8 James Ford _ Paid _ 07/08/1991 ❑ 22 0 23 0 9 Chad Ganfield Active 1 01/08/2003 ❑ 11 60,918 12 68,302 10 Joe Gerrits Deferred 07/22/1986 _ ❑ 27 0 28 0 11 Michael Haeg Paid ( - 04/27/1982 _ ❑ 31 0 32 0 12 Kerry Hiben Active 01/08/2003 _ ❑ 11 60,918 12 68,302 _ 13 Tim Johnson Active I 01/01/2007 _ ❑ 7 34,932 8 40,896 14 Nate Judson Separated/Not Vested ( 01/01/2007 r ❑ 5 0 6 0 _ 15 Jon Kline Active C 02/26/2008 _ ❑ 5 23,714 6 29,110 16 Edward Kropelnicki Paid 08/20/1997 El 16 0 17 0 17 Pete Lundell Active 11/17/1970 ❑ 43 305,300 44 312,400 18 Brad Miller Active _ 07/08/2003 ❑ 10 53,960 11 60,918 19 Shawn Nejman Separated/Not Vested , 08/01/2005 ❑ 8 0 9 0 20 Garr Nelson Deferred 08/20/1997 _ ❑ 16 0 17 0 21 Andy Norsten Separated/Not Vested 03/07/2006 _ ❑ 7 0 8 0 22 Joe Pluta Separated/Not Vested 02/26/2008 _ ❑ 5 0 6 0 _ 23 Kevin Rambo Active _ 12/27/1994 ❑ , 19 130,924 20 142,000 24 Mike Reis Paid 04/27/1982 ❑ 32 0 33 0 25 Rick Schroeder Active _ 08/20/1997 ❑ 16 101,388 17 110,760 _ 26 Greg Schultz Separated/Not Vested _ 03/07/2006 _ ❑ 7 0 8 0 27 Rob Sciamanda Active _ 01/08/2003 _ ❑ 11 60,918 12 68,302 28 Glenn Snyder _ Active 01/22/1992 _ El 22 156,200 23 163,300 29 Tom Strese Separated/Not Vested 01/08/2003 _ ❑ 10 0 11 0 30 Bishop Svendahl _ Active _! 08/01/2005 El 8 40,896 9 47,286 31 Brian Swanson Active t i 03/07/2006 ❑ 7 34,932 8 40,896 Form SC-13 Page 1 32 Bruce Sword Active ' 01/08/2003 ❑ 11 60,918 12 68,302 33 Nate Toso Separated/Not Vested 01/08/2003 ❑ 10 0 11 0 34 Kevin Tucker Deferred 04/24/1990 El 23 0 24 0 35 Steve Turner Paid 03/01/2000 El 13 0 14 0 36 Jim Voelker Active 08/20/1997 ❑ 16 101,388 17 110,760 37 Greg Zeno Active 01/08/2003 ❑ 11 60,918 12 68,302 38 Tim Behrendt Active _ 11/11/2008 _ _ El 5 23,714 6 29,110 39 Torrance Harriet Active 11/11/2008 ❑ 4 18,460 5 23,714 40 James Olinger Active 11/11/2008 _ ❑ 5 23,714 6 29,110 41 Chris Waterman Separated/Not Vested 11/11/2008 El 5 0 6 0 42 Carl Wirtanen Active 09/01/2009 ❑ 4 18,460 5 23,714 43 Bryan Dahl Separated/Not Vested 09/01/2009 .- El 4 0 5 0 44 Ryan Kroells Active 09/01/2009 _ ❑ 4 18,460 5 23,714 45 Ryan Slipka Active 09/01/2009 ❑ 4 18,460 5 23,714 46 James Marx _ Active 09/01/2009 _ _ El 4 18,460 5 23,714 47 Dave Nowlin Active j 09/21/2010 El 3 13,490 4 18,460 48 Matt Ausmus Active 10/25/2011 ❑ 2 8,804 3 13,490 49 Joe Bryan Active 10/25/2011 ❑ 2 8,804 3 13,490 50 Allen Flanders Active 10/25/2011 El 2 8,804 3 13,490 51 Travis Kolinski Active 10/25/2011 _ ❑ 2 8,804 3 13,490 52 Kelly Ritchie Active _ • 10/25/2011 El 2 8,804 3 13,490 _ 53 Dave Ehrhardt Active 08/09/2012 El 1 4,260 2 8,804 54 Isaac Zurawski Active _ 08/09/2012 _ ❑ 1 4,260 2 8,804 55 Mike Munzon Active 08/09/2012 El 1 4,260 2 8,804 _ 56 Jeff Feeder Active 07/01/2013 ❑ 1 4,260 2 8,804 57 Anthony Palazzo Active 07/01/2013 El 1 4,260 2 8,804 58 Will Boyd _ Active 07/01/2013 ❑ 1 4,260 2 8,804 59 Brandon Corcoran Active v 07/01/2013 El 1 4,260 2 8,804 60 Choose Status El 0 0 61 Choose Status El 0 0 62 Choose Status ❑ 0 0 63 Choose Status El 0 0 64 Choose Status El 0 0 65 Choose Status ❑ 0 0 66 Choose Status El 0 0 67 Choose Status ❑ 0 0 68 Choose Status El 0 0 69 Choose Status ❑ 0 0 70 Choose Status El 0 0 71 Choose Status ❑ 0 0 72 Choose Status El 0 0 73 Choose Status ❑ 0 0 74 Choose Status El 0 0 75 Choose Status El 0 0 76 Choose Status ❑ 0 0 77 Choose Status ❑ 0 0 78 Choose Status El 0 0 79 Choose Status El 0 0 Form SC-13 Rosemount Fire Relief Association Page 2 Deferred Member Information (fully or partially vested) See separate instructions regarding completion of the below fields. Please enter dates in this format: 3/7/2014 Total Deferred Member Liabilities 2013 567,720 Total Deferred Member Liabilities 2014 585,109 1 I Enter all information as it pertains to this member. Benefit Level Months of Member Name: Dave Bailey at Separation: 6,900 Service Are Paid • Minimum Years Required to Vest: 10 DOB: _ Interest Paid Service Dates: Entry: 04/25/1989 Separation: 06/30/2008 (Check if offered.) LOAs and BIS(in months): Vesting%: 92 Return to Service Member? ❑ (Check if applicable.) If Interest is Paid,Choose Type: Total Service: Years: 18 Months(if paid): Choose Type 2013 Estimated Liability: 114,264 Period Interest is Paid: 2014 Estimated Liability: 114,264 Status: Deferred Choose Interest Payment Period For Relief ROR up to 5%,OSA ROR up to 5%or Board Set ROR up to 5%enter interest rates below. 1982: % 1987: % 1992: % 1997: % 2002: % 2008: % 1983: % 1988: % 1993: % 1998: % 2003: % 2009: % 1984: % 1989: % 1994: % 1999: % 2004: % 2010: % 1985: % 1990: % 1995: % 2000: % 2005: % 2011: % 1986: % 1991: % 1996: % 2001: % 2006: % 2012: % +Rate of return is calculated using the earnings projected on Page 4 of this form. 2007: % 2013: %+ 2 I Enter all information as it pertains to this member. Benefit Level Months of I Member Name: Bryan Burkhalter at Separation: 2,000 Service Are Paid • Minimum Years Required to Vest: 10 DOB: �. Deferred Interest Paid Service Dates: Entry: 11/26/1985 Separation: 04/01/1996 (Check if offered.) LOAs and BIS(in months): Vesting%: 60 Return to Service Member? ❑ (Check if applicable.) If Interest is Paid, Choose Type: Total Service: Years: 10 Months(if paid): Choose Type 2013 Estimated Liability: 12,000 Period Interest is Paid: 2014 Estimated Liability: 12,000 Status: Deferred Choose Interest Payment Period For Relief ROR up to 5%,OSA ROR up to 5%or Board Set ROR up to 5%enter interest rates below. 1982: % 1987: % 1992: % 1997: % 2002: % 2008: % 1983: % 1988: % 1993: % 1998: % 2003: % 2009: % 1984: % 1989: % 1994: % 1999: % 2004: % 2010: 1985: % 1990: % 1995: % 2000: % 2005: % 2011: 1986: % 1991: % 1996: % 2001: % 2006: % 2012: +Rate of return is calculated using the earnings projected on Page 4 of this form. 2007: % 2013: %+ Form SC-13 Rosemount Fire Relief Association Page 2 - Cont. 3 Enter all information as it pertains to this member. Benefit Level Months of • Member Name: Dan Corrigan at Separation: 2,200 Service Are Paid Minimum Years Required to Vest: 10 DOB: - ) Deferred Interest Paid Service Dates: Entry: 04/24/1984 Separation: 05/01/1997 (Check if offered.) LOAs and BIS(in months): Vesting%: 72 _ Return to Service Member? ❑ (Check if applicable.) If Interest is Paid,Choose Type: Total Service: Years: 13 Months(if paid): Choose Type 2013 Estimated Liability: 20,592 Period Interest is Paid: 2014 Estimated Liability: 20,592 Status: Deferred Choose Interest Payment Period For Relief ROR up to 5%,OSA ROR up to 5%or Board Set ROR up to 5%enter interest rates below. 1982: % 1987: % 1992: % 1997: % 2002: % 2008: % 1983: % 1988: % 1993: % 1998: % 2003: % 2009: % 1984: % 1989: % 1994: % 1999: % 2004: % 2010: % 1985: % 1990: % 1995: % 2000: % 2005: % 2011: % 1986: % 1991: % 1996: % 2001: % 2006: % 2012: % +Rate of return is calculated using the earnings projected on Page 4 of this form. 2007: % 2013: %+ 4 J Enter all information as it pertains to this member. Benefit Level Months of Member Name: Terry Mooney at Separation: 2,800 Service Are Paid •' Minimum Years Required to Vest: 10 DOB: - „_ Deferred Interest Paid • Service Dates: Entry: 08/28/1990 Separation: 03/31/2001 (Check if offered.) LOAs and BIS(in months): Vesting%: 60 Return to Service Member? ❑ (Check if applicable.) If Interest is Paid,Choose Type: Total Service: Years: 10 Months(if paid): _ Choose Type 2013 Estimated Liability: 16,800 Period Interest is Paid: 2014 Estimated Liability: 16,800 Status: Deferred Choose Interest Payment Period For Relief ROR up to 5%,OSA ROR up to 5%or Board Set ROR up to 5%enter interest rates below. 1982: % 1987: % 1992: % 1997: % 2002: % 2008: % 1983: % 1988: % 1993: % 1998: % 2003: % 2009: 1984: % 1989: % 1994: % 1999: % 2004: % 2010: % 1985: % 1990: % 1995: % 2000: % 2005: % 2011: % 1986: % 1991: % 1996: % 2001: % 2006: % 2012: % +Rate of return is calculated using the earnings projected on Page 4 of this form. 2007: % 2013: %+ Form SC-13 Rosemount Fire Relief Association Page 2 - Cont. 5 ` Enter all information as it pertains to this member. Benefit Level Months of • Member Name: Garr Nelson at Separation: 6,900 Service Are Paid Minimum Years Required to Vest: 10 DOB: Deferred Interest Paid • Service Dates: Entry: 08/20/1997 Separation: 03/31/2010 (Check if offered.) LOAs and BIS(in months): Vesting%: 68 Return to Service Member? ❑ (Check if applicable.) If Interest is Paid,Choose Type: Total Service: Years: 12 Months(if paid): Choose Type 2013 Estimated Liability: 56,304 Period Interest is Paid: 2014 Estimated Liability: 56,304 Status: Deferred Choose Interest Payment Period For Relief ROR up to 5%,OSA ROR up to 5%or Board Set ROR up to 5%enter interest rates below. 1982: % 1987: % 1992: % 1997: % 2002: % 2008: % 1983: % 1988: % 1993: % 1998: % 2003: % 2009: 1984: % 1989: % 1994: % 1999: % 2004: % 2010: % 1985: % 1990: % 1995: % 2000: % 2005: % 2011: % 1986: % 1991: % 1996: % 2001: % 2006: % 2012: +Rate of return is calculated using the earnings projected on Page 4 of this form. 2007: % 2013: %+ 6 I Enter all information as it pertains to this member. Benefit Level Months of Member Name: Kevin Tucker at Separation: 6,900 Service Are Paid Minimum Years Required to Vest: 10 DOB: Deferred Interest Paid JO Service Dates: Entry: 04/24/1990 Separation: 07/24/2012 (Check if offered.) LOAs and BIS(in months): Vesting%: 100 Return to Service Member? ❑ (Check if applicable.) If Interest is Paid, Choose Type: Total Service: Years: 22 Months(if paid): Straight 5% 2013 Estimated Liability: 159,390 Period Interest is Paid: 2014 Estimated Liability: 167,360 Status: Deferred Full Years For Relief ROR up to 5%,OSA ROR up to 5%or Board Set ROR up to 5%enter interest rates below. 1982: % 1987: % 1992: % 1997: % 2002: % 2008: % 1983: % 1988: % 1993: % 1998: % 2003: % 2009: 1984: % 1989: % 1994: % 1999: % 2004: % 2010: 1985: % 1990: % 1995: % 2000: % 2005: % 2011: % 1986: % 1991: % 1996: % 2001: % 2006: % 2012: % +Rate of return is calculated using the earnings projected on Page 4 of this form. 2007: % 2013: %+ Form SC-13 Rosemount Fire Relief Association Page 2 - Cont. 7 I Enter all information as it pertains to this member. Benefit Level Months of Member Name: Joe Gerrits at Separation: 6,900 Service Are Paid li Minimum Years Required to Vest: 10 DOB: _ Deferred Interest Paid 0 Service Dates: Entry: 07/22/1986 Separation: 08/22/2012 (Check if offered.) LOAs and BIS(in months): _ %: 100 Return to Service Member? El (Check if applicable.) If Interest is Paid, Choose Type: Total Service: Years: 26 Months(if paid): Straight 5% 2013 Estimated Liability: 188,370 Period Interest is Paid: 2014 Estimated Liability: 197,789 Status: Deferred Full Years For Relief ROR up to 5%,OSA ROR up to 5%or Board Set ROR up to 5%enter interest rates below. 1982: % 1987: % 1992: % 1997: % 2002: % 2008: % 1983: % 1988: % 1993: % 1998: % 2003: % 2009: 1984: % 1989: % 1994: % 1999: % 2004: % 2010: % 1985: % 1990: % 1995: % 2000: % 2005: % 2011: % 1986: % 1991: % 1996: % 2001: % 2006: % 2012: % +Rate of return is calculated using the earnings projected on Page 4 of this form. 2007: % 2013: %+ 8 I Enter all information as it pertains to this member. Benefit Level Months of Member Name: at Separation: Service Are Paid Minimum Years Required to Vest: DOB: Deferred Interest Paid Service Dates: Entry: Separation: (Check if offered.) LOAs and BIS(in months): Vesting%: Return to Service Member? ❑ (Check if applicable.) If Interest is Paid, Choose Type: Total Service: Years: Months(if paid): Choose Type 2013 Estimated Liability: Period Interest is Paid: 2014 Estimated Liability: Status: Deferred Choose Interest Payment Period For Relief ROR up to 5%,OSA ROR up to 5%or Board Set ROR up to 5%enter interest rates below. 1982: % 1987: % 1992: % 1997: % 2002: % 2008: 1983: % 1988: % 1993: % 1998: % 2003: % 2009: % 1984: % 1989: % 1994: % 1999: % 2004: % 2010: % 1985: % 1990: % 1995: % 2000: % 2005: % 2011: % 1986: % 1991: % 1996: % 2001: % 2006: % 2012: % +Rate of return is calculated using the earnings projected on Page 4 of this form. 2007: % 2013: %+ Form SC-13 Rosemount Fire Relief Association Page 3 Unpaid Installments Enter here the name of each member who has been paid portions of his pension benefit and who still has outstanding liabilities. Enter dates in this format: 3/7/2014 Birth Entry Separation Amount 2013 Estimated 2014 Estimated Name Status Date Date Date Previously Paid Liability Liability Unpaid Installment Unpaid Installment Unpaid Installment Unpaid Installment Unpaid Installment Unpaid Installment Unpaid Installment Unpaid Installment Unpaid Installment Unpaid Installment Totals 01 0 Form SC-13 Rosemount Fire Relief Association Page 4 Calculation of Normal Cost 2013 2014 Total Active Member Liabilities 1,956,192 2,208,668 Total Deferred Member Liabilities 567,720 585,109 Total Unpaid Installments 0 0 Grand Total Special Fund Liability A. 2,523,912 B. 2,793,777 Normal Cost (Cell B minus Cell A) C. 269,865 Projection of Net Assets for Year Ending December 31,2013 Special Fund Assets at December 31,2012 (RF-12 ending assets) 1 2,504,979 Projected Income for 2013 State Fire Aid (2012 aid may be increased by up to 3.5%) D. 124,632 Municipal/Independent Fire Dept.Contributions E. 171,000 Interest/Dividends F. 15,000 Appreciation/(Depreciation) G. 250,000 Member Dues (If deposited in Special Fund) H. Other Revenues I. Total Projected Income for 2013 (Add Lines D through I) 2 560,632 Projected Expenses for 2013 Service Pensions J. 214,900 Member Names:Scott Aker Other Benefits K. Administrative Expenses L. Total Projected Expenses for 2013 (Add Lines J through L) 3 214,900 Projected Net Assets at December 31,2013 (Add Lines 1 and 2,subtract Line 3) 4 2,850,711 Projection of Surplus or(Deficit)as of December 31,2013 Projected Assets (Line 4) 5 2,850,711 2013 Accrued Liability (Page 4,cell A) 6 2,523,912 Surplus or(Deficit) (Line 5 minus Line 6) 7 326,799 Form SC-13 Rosemount Fire Relief Association Page 4-Cont. Calculation of Required Contribution Deficit Information-Original Deficit Information-Adjusted Amount Retired Amount Retired Amount Left Year Incurred Original Amount as of 12/31/2012 Original Amount as of 12/31/2013 to Retire 1/1/2014 2004 2005 2006 2007 2008 2009 443,470 89,291 2010 354,179 79,765 2011 119,639 0 2012 0 0 2013 Totals 917,288 169,056 Normal Cost (Page 4,cell C) 8 269,865 Projected Administrative Expense Enter 2012 Admin Exp here: 91 13,000 I 13,455 Amortization of Deficit (Total of Original Amount column x 0.10) 10 0 10%of Surplus (Line 7 x 0.10) 11 32,680 State Fire Aid 12 124,632 Member Dues 13 0 5%of Projected Assets at December 31,2013 (Line 4 x 0.05) 14 142,536 Required Contribution (Add Lines 8,9 and 10,subtract Lines 11,12,13 and 14. If negative,zero is displayed.) 15 0 No required contribution due in 2014. Form SC-13 Rosemount Fire Relief Association Page 5 This Schedule Form must be fully completed,certified by the relief association officers,forwarded to the municipal clerk/independent secretary on or before August 1, 2013 and submitted to the Office of the State Auditor to be eligible for State Fire Aid. Officer Certification We,the officers of the Rosemount Fire Relief Association,certify that this Schedule Form was prepared under Minn.Stat.§69.772 and that the annual benefit level was established according to the average amount of available financing. We further certify that based on the financial requirements of the Relief Association's Special Fund for the 2013 calendar year,the required 2014 contribution is$0. If the bylaws of the Relief Association changed in 2013,we have attached a copy of the amendment or updated bylaws. We have also enclosed a copy of the municipal/board ratification of this amendment if required under Minn.Stat.§69.772,subd.6. Chad Ganfield 12/31/2013 Signature of President Name Date Scott Engelmann 12/31/2013 Signature of Secretary Name Date Jim Voelker 12/31/2013 Signature of Treasurer Name Date Municipal Clerk/Independent Secretary Certification* *See the form intructions for additional information about certification requirements. I am the municipal clerk of Rosemount /secretary of the independent nonprofit firefighting corporation. I received on 12/31/2013 ,the completed Schedule Form from the Rosemount Fire Relief Association. I have reviewed Line 15 of the Schedule Form. If Line 15 shows a required contribution,I certify that I will advise the governing municipal body or the independent nonprofit firefighting corporation of any required contribution at its next regularly scheduled meeting. Amy Domeier 12/31/2013 Signature of Municipal Clerk/Secretary of independent nonprofit Name Date firefighting corporation (651)322-2003 Business Telephone Please provide the telephone numbers for the work location(s)at which you conduct relief association business. THIS CONTACT INFORMATION IS PUBLIC;IT WILL BE AVAILABLE TO ANYONE ON REQUEST. Please retain a copy of this Schedule Form for your records,upload the form to the Office of the State Auditor's website,and electronically sign the form. Alternatively,a signed paper copy can be submitted to: Office of the State Auditor,Pension Division,525 Park Street,Suite 500,Saint Paul,MN 55103. Fax:651-282-5298. Telephone:651-282-6110. Form SC-13 Page 1 Schedule Form for Lump-Sum Pension Plans Reporting Year 2013 Determination of Plan Liabilities and Required Municipal Contribution for 2014 Relief Association: Rosemount Fire Relief Association County/ Dakota Counties: Enter Annual benefit level in effect for 2013: 7,200 (If you change your benefit level before 12/31/2013,the SC must be recalculated at the new level.) 2013 2014 Subtotal of Page 1 Liability-Active Members 1,983,744 2,239,776 Active Member Information Please Enter Dates in this format: 3/7/2014 Leaves of To end of 2013 To end of 2014 Absence Fire Department and Breaks Return to Date of Entry m Service Years Years Birth Date Service Member of Accrued of Accrued Name Status (months) ? Service Liability Service Liability 1 Scott Aker Paid 1 04/27/1982 ❑ 32 0 33 0 2 Leigh Anderson Active 11/10/1992 _ ❑ 20 144,000 21 151,200 3 Chris Besnett Active _ 02/26/2008 _ ❑ 4 18,720 5 24,048 4 Tom Bigalk Active 08/08/2005 ❑ 8 41,472 9 47,952 5 Carl Bourdages Active 01/01/2007 El 7 35,424 8 41,472 _ 6 Chris Dyson _ Active _ 03/01/2000 _ Cl 14 85,248 15 93,888 7 Scott Engelmann Active 09/12/1995 ❑ 18 122,256 19 132,768 8 James Ford Paid ( 07/08/1991 _ ❑ 22 0 23 0 9 Chad Ganfield Active ( 01/08/2003 ❑ 11 61,776 12 69,264 10 Joe Gerrits Deferred _ 07/22/1986 _ ❑ 27 0 28 0 11 Michael Haeg Paid 04/27/1982 _ ❑ 31 0 32 0 12 Kerry Hiben _ Active _ 01/08/2003 _ ❑ 11 61,776 12 69,264 13 Tim Johnson Active 01/01/2007 _ El 7 35,424 8 41,472 _ 14 Nate Judson Separated/Not Vested_ 01/01/2007 _ El 5 0 6 0 15 Jon Kline Active _ 02/26/2008 _ El 5 24,048 6 29,520 16 Edward Kropelnicki _ Paid _ D8/20/1997 _ ❑ 16 0 17 0 17 Pete Lundell Active _ 11/17/1970 ❑ 43 309,600 44 316,800 18 Brad Miller Active 07/08/2003 _ ❑ 10 54,720 11 61,776 19 Shawn Nejman _ Separated/Not Vested _ 08/01/2005 _ El 8 0 9 0 20 Garr Nelson _ Deferred _ 08/20/1997 _ El 16 0 17 0 21 Andy Norsten Separated/Not Vested _ 03/07/2006 El 7 0 8 0 22 Joe Pluta Separated/Not Vested _ 02/26/2008 _ El 5 0 6 0 _ 23 Kevin Rambo Active 12/27/1994 El 19 132,768 20 144,000 24 Mike Reis _ Paid 04/27/1982 _ ❑ 32 0 33 0 25 Rick Schroeder Active 08/20/1997 ❑ 16 102,816 17 112,320 26 Greg Schultz Separated/Not Vested^ 03/07/2006 _ El 7 0 8 0 27 Rob Sciamanda Active _ 01/08/2003 _ ❑_ 11 61,776 12 69,264 28 Glenn Snyder Active 01/22/1992 ❑ 22 158,400 23 165,600 29 Tom Strese Separated/Not Vested _ 01/08/2003 ❑ 10 0 11 0 30 Bishop Svendahl Active 08/01/2005 El 8 41,472 9 47,952 31 Brian Swanson Active , t 03/07/2006 El 7 35,424 8 41,472 Form SC-13 Page 1 32 Bruce Sword _ Active 1 01/08/2003 El 11 61,776 12 69,264 _ 33 Nate Toso Separated/Not Vested 01/08/2003 ■ ❑ 10 0 11 0 _ 34 Kevin Tucker _ Deferred 04/24/1990 El 23 0 24 0 _ 35 Steve Turner _ Paid 03/01/2000 ❑ 13 0 14 0 _ 36 Jim Voelker _ Active 08/20/1997_ ❑ 16 102,816 17 112,320 37 Greg Zeno Active 01/08/2003 ❑ 11 61,776 12 69,264 38 Tim Behrendt Active _ 11/11/2008 El 5 24,048 6 29,520 39 Torrance Harriel Active 11/11/2008 El 4 18,720 5 24,048 -_ 40 James Olinger _ Active 11/11/2008 El . 5 24,048 6 29,520 _ 41 Chris Waterman Separated/Not Vested _ 11/11/2008 ❑ 5 0 6 0 _ 42 Carl Wirtanen Active 09/01/2009 ❑ 4 18,720 5 24,048 43 Bryan Dahl Separated/Not Vested _ 09/01/2009 ❑ 4 0 5 0 44 Ryan Kroells _ Active _ 09/01/2009 El 4 18,720 5 24,048 45 Ryan Slipka - Active 09/01/2009_ El 4 18,720 5 24,048 46 James Marx _ Active _ 09/01/2009 ❑ 4 18,720 5 24,048 _ 47 Dave Nowlin _ Active 09/21/2010 ❑ 3 13,680 4 18,720 _ 48 Matt Ausmus Active 10/25/2011 El 2 8,928 3 13,680 49 Joe Bryan _ Active 10/25/2011 El 2 8,928 3 13,680 50 Allen Flanders _ Active 10/25/2011 ❑ 2 8,928 3 13,680 51 Travis Kolinski Active 10/25/2011 ❑ 2 8,928 3 13,680 _ 52 Kelly Ritchie _ Active 10/25/2011 El 2 8,928 3 13,680 53 Dave Ehrhardt _ Active 08/09/2012 El 1 4,320 2 8,928 _ 54 Isaac Zurawski Active - 08/09/2012 _ El 1 4,320 2 8,928 - 55 Mike Munzon Active , 08/09/2012 ❑ 1 4,320 2 8,928 _ 56 Jeff Feeder Active _ I, 07/01/2013 _ ❑ 1 4,320 2 8,928 - 57 Anthony Palazzo Active . 07/01/2013 El 1 4,320 2 8,928 58 Will Boyd Active 07/01/2013 ❑ 1 4,320 2 8,928 59 Brandon Corcoran Active 07/01/2013 ❑ 1 4,320 2 8,928 _ 60 Choose Status El o 0 61 Choose Status El 0 0 62 Choose Status ❑ 0 0 63 Choose Status El 0 0 64 Choose Status ❑ 0 0 65 Choose Status El 0 0 66 Choose Status El 0 0 67 Choose Status El 0 0 68 Choose Status El 0 0 69 Choose Status El 0 0 70 Choose Status ❑ 0 0 71 Choose Status ❑ 0 0 72 Choose Status El 0 0 73 Choose Status El 0 0 74 Choose Status ❑ 0 0 75 Choose Status ❑ 0 0 76 Choose Status ❑ 0 0 77 Choose Status ❑ 0 0 78 Choose Status El 0 0 79 Choose Status ❑ 0 0 Form SC-13 Rosemount Fire Relief Association Page 2 Deferred Member Information (fully or partially vested) See separate instructions regarding completion of the below fields. Please enter dates in this format: 3/7/2014 Total Deferred Member Liabilities 2013 567,720 Total Deferred Member Liabilities 2014 585,109 1 I Enter all information as it pertains to this member. Benefit Level Months of • Member Name: Dave Bailey at Separation: 6,900 Service Are Paid Minimum Years Required to Vest: 10 DOB: Deferred Interest Paid �:� Service Dates: Entry: 04/25/1989 Separation: 06/30/2008 (Check if offered.) LOAs and BIS(in months): Vesting%: 92 Return to Service Member? ❑ (Check if applicable.) If Interest is Paid,Choose Type: Total Service: Years: 18 Months(if paid): Choose Type 2013 Estimated Liability: 114,264 Period Interest is Paid: 2014 Estimated Liability: 114,264 Status: Deferred Choose Interest Payment Period For Relief ROR up to 5%,OSA ROR up to 5%or Board Set ROR up to 5%enter interest rates below. 1982: % 1987: % 1992: % 1997: % 2002: % 2008: % 1983: % 1988: % 1993: % 1998: % 2003: % 2009: % 1984: % 1989: % 1994: % 1999: % 2004: % 2010: % 1985: % 1990: % 1995: % 2000: % 2005: % 2011: % 1986: % 1991: % 1996: % 2001: % 2006: % 2012: % +Rate of return is calculated using the earnings projected on Page 4 of this form. 2007: % 2013: %+ 2 I Enter all information as it pertains to this member. Benefit Level Months of Member Name: Bryan Burkhalter at Separation: 2,000 Service Are Paid • Minimum Years Required to Vest: 10 DOB: Deferred Interest Paid Ill Service Dates: Entry: 11/26/1985 Separation: 04/01/1996 (Check if offered.) LOAs and BIS(in months): Vesting%: 60 Return to Service Member? ❑ (Check if applicable.) If Interest is Paid,Choose Type: Total Service: Years: Months(if paid): Choose Type 2013 Estimated Liability: 12,000 Period Interest is Paid: 2014 Estimated Liability: 12,000 Status: Deferred Choose Interest Payment Period For Relief ROR up to 5%,OSA ROR up to 5%or Board Set ROR up to 5%enter interest rates below. 1982: % 1987: % 1992: % 1997: % 2002: % 2008: 1983: % 1988: % 1993: % 1998: % 2003: % 2009: 1984: % 1989: % 1994: % 1999: % 2004: % 2010: 1985: % 1990: % 1995: % 2000: % 2005: % 2011: 1986: % 1991: % 1996: % 2001: % 2006: % 2012: +Rate of return is calculated using the earnings projected on Page 4 of this form. 2007: % 2013: %+ Form SC-13 Rosemount Fire Relief Association Page 2 - Cont. 3 I Enter all information as it pertains to this member. Benefit Level Months of �a� Member Name: Dan Corrigan at Separation: 2,200 Service Are Paid • Minimum Years Required to Vest: 10 DOB: _ _ Deferred Interest Paid o Service Dates: Entry: 04/24/1984 Separation: 05/01/1997 (Check if offered.) LOAs and BIS(in months): Vesting%: 72 Return to Service Member? ❑ (Check if applicable.) If Interest is Paid,Choose Type: Total Service: Years: 13 Months(if paid): Choose Type 2013 Estimated Liability: 20,592 Period Interest is Paid: 2014 Estimated Liability: 20,592 Status: Deferred Choose Interest Payment Period For Relief ROR up to 5%,OSA ROR up to 5%or Board Set ROR up to 5%enter interest rates below. 1982: % 1987: % 1992: % 1997: % 2002: % 2008: % 1983: % 1988: % 1993: % 1998: % 2003: % 2009: % 1984: % 1989: % 1994: % 1999: % 2004: % 2010: % 1985: % 1990: % 1995: % 2000: % 2005: % 2011: % 1986: % 1991: % 1996: % 2001: % 2006: % 2012: % +Rate of return is calculated using the earnings projected on Page 4 of this form. 2007: % 2013: %+ 4 I Enter all information as it pertains to this member. Benefit Level Months of Member Name: Terry Mooney at Separation: 2,800 Service Are Paid I Minimum Years Required to Vest: 10 DOB: _ Deferred Interest Paid Service Dates: Entry: 08/28/1990 Separation: 03/31/2001 (Check if offered.) LOAs and BIS(in months): Vesting%: 60 Return to Service Member? ❑ (Check if applicable.) If Interest is Paid,Choose Type: Total Service: Years: 10 Months(if paid): Choose Type 2013 Estimated Liability: 16,800 Period Interest is Paid: 2014 Estimated Liability: 16,800 Status: Deferred Choose Interest Payment Period For Relief ROR up to 5%,OSA ROR up to 5%or Board Set ROR up to 5%enter interest rates below. 1982: % 1987: % 1992: % 1997: % 2002: % 2008: % 1983: % 1988: % 1993: % 1998: % 2003: % 2009: % 1984: % 1989: % 1994: % 1999: % 2004: % 2010: % 1985: % 1990: % 1995: % 2000: % 2005: % 2011: 1986: % 1991: % 1996: % 2001: % 2006: % 2012: +Rate of return is calculated using the earnings projected on Page 4 of this form. 2007: % 2013: %+ Form SC-13 Rosemount Fire Relief Association Page 2 - Cont. 5 I Enter all information as it pertains to this member. Benefit Level Months of Member Name: Garr Nelson at Separation: 6,900 Service Are Paid • Minimum Years Required to Vest: 10 DOB: _ Deferred Interest Paid AI Service Dates: Entry: 08/20/1997 Separation: 03/31/2010 (Check if offered.) LOAs and BIS(in months): Vesting%: 68 Return to Service Member? ❑ (Check if applicable.) If Interest is Paid,Choose Type: Total Service: Years: 12 Months(if paid): Choose Type 2013 Estimated Liability: 56,304 Period Interest is Paid: 2014 Estimated Liability: 56,304 Status: Deferred Choose Interest Payment Period For Relief ROR up to 5%,OSA ROR up to 5%or Board Set ROR up to 5%enter interest rates below. 1982: % 1987: % 1992: % 1997: % 2002: % 2008: % 1983: % 1988: % 1993: % 1998: % 2003: % 2009: % 1984: % 1989: % 1994: % 1999: % 2004: % 2010: % 1985: % 1990: % 1995: % 2000: % 2005: % 2011: % 1986: % 1991: % 1996: % 2001: % 2006: % 2012: % +Rate of return is calculated using the earnings projected on Page 4 of this form. 2007: % 2013: %+ _ 6 I Enter all information as it pertains to this member. Benefit Level Months of Member Name: Kevin Tucker at Separation: 6,900 Service Are Paid Minimum Years Required to Vest: 10 DOB: Deferred Interest Paid © Service Dates: Entry: 04/24/1990 Separation: 07/24/2012 (Check if offered.) LOAs and BIS(in months): Vesting%: 100 Return to Service Member? ❑ (Check if applicable.) If Interest is Paid,Choose Type: Total Service: Years: 22 Months(if paid): Straight 5% 2013 Estimated Liability: 159,390 Period Interest is Paid: 2014 Estimated Liability: 167,360 Status: Deferred Full Years For Relief ROR up to 5%,OSA ROR up to 5%or Board Set ROR up to 5%enter interest rates below. 1982: % 1987: % 1992: % 1997: % 2002: % 2008: 1983: % 1988: % 1993: % 1998: % 2003: % 2009: 1984: % 1989: % 1994: % 1999: % 2004: % 2010: % 1985: % 1990: % 1995: % 2000: % 2005: % 2011: % 1986: % 1991: % 1996: % 2001: % 2006: % 2012: % +Rate of return is calculated using the earnings projected on Page 4 of this form. 2007: % 2013: %+ Form SC-13 Rosemount Fire Relief Association Page 2 - Cont. 7 I Enter all information as it pertains to this member. Benefit Level Months of Member Name: Joe Gerrits at Separation: 6,900 Service Are Paid al Minimum Years Required to Vest: 10 DOB: _ Deferred Interest Paid al Service Dates: Entry: 07/2211986 Separation: 08/2212012 (Check if offered.) LOAs and BIS(in months): Vesting%: 100 Return to Service Member? ❑ (Check if applicable.) If Interest is Paid, Choose Type: Total Service: Years: 26 Months(if paid): Straight 5% 2013 Estimated Liability: 188,370 Period Interest is Paid: 2014 Estimated Liability: 197,789 Status: Deferred Full Years For Relief ROR up to 5%,OSA ROR up to 5%or Board Set ROR up to 5%enter interest rates below. 1982: % 1987: % 1992: % 1997: % 2002: % 2008: % 1983: % 1988: % 1993: % 1998: % 2003: % 2009: % 1984: % 1989: % 1994: % 1999: % 2004: % 2010: % 1985: % 1990: % 1995: % 2000: % 2005: % 2011: % 1986: % 1991: % 1996: % 2001: % 2006: % 2012: % +Rate of return is calculated using the earnings projected on Page 4 of this form. 2007: % 2013: %+ 8 I Enter all information as it pertains to this member. Benefit Level Months of • Member Name: at Separation: Service Are Paid Minimum Years Required to Vest: DOB: Deferred Interest Paid a Service Dates: Entry: Separation: (check if offered.) LOAs and BIS(in months): Vesting%: Return to Service Member? ❑ (Check if applicable.) If Interest is Paid,Choose Type: Total Service: Years: Months(if paid): Choose Type 2013 Estimated Liability: Period Interest is Paid: 2014 Estimated Liability: Status: Deferred Choose Interest Payment Period For Relief ROR up to 5%,OSA ROR up to 5%or Board Set ROR up to 5%enter interest rates below. 1982: % 1987: % 1992: % 1997: % 2002: % 2008: % 1983: % 1988: % 1993: % 1998: % 2003: % 2009: % 1984: % 1989: % 1994: % 1999: % 2004: % 2010: % 1985: % 1990: % 1995: % 2000: % 2005: % 2011: % 1986: % 1991: % 1996: % 2001: % 2006: % 2012: % +Rate of return is calculated using the earnings projected on Page 4 of this form. 2007: % 2013: %+ Form SC-13 Rosemount Fire Relief Association Page 3 Unpaid Installments Enter here the name of each member who has been paid portions of his pension benefit and who still has outstanding liabilities. Enter dates in this format: 3/7/2014 Birth Entry Separation Amount 2013 Estimated 2014 Estimated Name Status Date Date Date Previously Paid Liability Liability Unpaid Installment Unpaid Installment Unpaid Installment Unpaid Installment Unpaid Installment Unpaid Installment Unpaid Installment Unpaid Installment Unpaid Installment Unpaid Installment Totals 01 0 Form SC-13 Rosemount Fire Relief Association Page 4 Calculation of Normal Cost 2013 2014 Total Active Member Liabilities 1,983,744 2,239,776 Total Deferred Member Liabilities 567,720 585,109 Total Unpaid Installments 0 0 Grand Total Special Fund Liability A. 2,551,464 B. 2,824,885 Normal Cost (Cell B minus Cell A) C. 273,421 Projection of Net Assets for Year Ending December 31,2013 Special Fund Assets at December 31,2012 (RF-12 ending assets) 1 2,504,979 Projected Income for 2013 State Fire Aid (2012 aid may be increased by up to 3.5%) D. 124,632 Municipal/Independent Fire Dept.Contributions E. 171,000 Interest/Dividends F. 15,000 Appreciation/(Depreciation) G. 250,000 Member Dues (If deposited in Special Fund) H. Other Revenues I. Total Projected Income for 2013 (Add Lines D through I) 2 560,632 Projected Expenses for 2013 Service Pensions J. 214,900 Member Names:Scott Aker Other Benefits K. _ Administrative Expenses L. Total Projected Expenses for 2013 (Add Lines J through L) 3 214,900 Projected Net Assets at December 31,2013 (Add Lines 1 and 2,subtract Line 3) 4 2,850,711 Projection of Surplus or(Deficit)as of December 31,2013 Projected Assets (Line 4) 5 2,850,711 2013 AccruedLiability (Page 4,cell A) 6 2,551,464 Surplus or(Deficit) (Line 5 minus Line 6) 7 299,247 Form SC-13 Rosemount Fire Relief Association Page 4-Cont. Calculation of Required Contribution Deficit Information-Original Deficit Information-Adjusted Amount Retired Amount Retired Amount Left Year Incurred Original Amount as of 12/31/2012 Original Amount as of 12/31/2013 to Retire 1/1/2014 2004 2005 2006 2007 2008 2009 443,470 89,291 2010 354,179 79,765 2011 119,639 0 2012 0 0 2013 Totals 917,288 169,056 Normal Cost (Page 4,cell C) 8 273,421 Projected Administrative Expense Enter 2012 Admin Exp here: 91 13,000 I 13,455 Amortization of Deficit (Total of Original Amount column x 0.10) 10 0 10%of Surplus (Line 7 x 0.10) 11 29,925 State Fire Aid 12 124,632 Member Dues 13 0 5%of Projected Assets at December 31,2013 (Line 4 x 0.05) 14 142,536 Required Contribution (Add Lines 8,9 and 10,subtract Lines 11,12,13 and 14. If negative,zero is displayed.) 15 0 No required contribution due in 2014. Form SC-13 Rosemount Fire Relief Association Page 5 This Schedule Form must be fully completed,certified by the relief association officers,forwarded to the municipal clerk/independent secretary on or before August 1, 2013 and submitted to the Office of the State Auditor to be eligible for State Fire Aid. Officer Certification We,the officers of the Rosemount Fire Relief Association,certify that this Schedule Form was prepared under Minn.Stat.§69.772 and that the annual benefit level was established according to the average amount of available financing. We further certify that based on the financial requirements of the Relief Association's Special Fund for the 2013 calendar year,the required 2014 contribution is$0. If the bylaws of the Relief Association changed in 2013,we have attached a copy of the amendment or updated bylaws. We have also enclosed a copy of the municipal/board ratification of this amendment if required under Minn.Stat.§69.772,subd.6. Chad Ganfield _ 12/31/2013 Signature of President Name Date Scott Engelmann 12/31/2013 Signature of Secretary Name Date Jim Voelker 12/31/2013 Signature of Treasurer Name Date Municipal Clerk/Independent Secretary Certification* *See the form intructions for additional information about certification requirements. I am the municipal clerk of Rosemount /secretary of the independent nonprofit firefighting corporation. I received on 12/31/2013 ,the completed Schedule Form from the Rosemount Fire Relief Association. I have reviewed Line 15 of the Schedule Form. If Line 15 shows a required contribution,I certify that I will advise the governing municipal body or the independent nonprofit firefighting corporation of any required contribution at its next regularly scheduled meeting. Amy Domeier 12/31/2013 Signature of Municipal Clerk/Secretary of independent nonprofit Name Date firefighting corporation (651)322-2003 Business Telephone Please provide the telephone numbers for the work location(s)at which you conduct relief association business. THIS CONTACT INFORMATION IS PUBLIC;IT WILL BE AVAILABLE TO ANYONE ON REQUEST. Please retain a copy of this Schedule Form for your records,upload the form to the Office of the State Auditor's website,and electronically sign the form. Alternatively,a signed paper copy can be submitted to: Office of the State Auditor,Pension Division,525 Park Street,Suite 500,Saint Paul,MN 55103. Fax:651-282-5298. Telephone:651-282-6110. Documentation for the History of the Relief Association Contributions and Benefit Increases September 2000 • A special meeting for the membership was had where Tom Burt presented an option that would get the pension benefit up to the max allowed by the state without impacting the current FF budget. This would be done by going to a stipend per call instead of hourly wages. The city would then allocate the money saved in wages to the relief association contribution. The current city contribution was $26,000 and Tom thought that the amount would increase to approximately $106,000. He mentioned that the association board would need to provide some analysis to support the numbers and project how long it would take to get to the max benefit level. At that time it was agreed that Krista Kay Boston would be able to provide a 5 year analysis projection. o Full meeting minutes from Special Minutes 9- 26- 2000.doc printed on page 4 -5. February 2001 • The projections from Krista were received and reviewed at a special meeting of the board. Questions were raised about some of the numbers and scenarios and were sent to her for review. o Full meeting minutes from Special Minutes 2- 27- 2001.doc printed on page 6 -7. March 2001 • At the quarterly board meeting the answers to the questions sent to Krista were reviewed. At that time some reports /projections were reviewed that were created by Scott E in the same manner as the ones Krista compiled, but the new reports were completed for a 10 year range instead of 5 and we could also use these to run different scenarios (different contribution levels and investment gain percentages). o Relevant excerpts from the First Quarter Minutes 2001.doc quarterly board meeting minutes printed on page 8. April 2001 • Different 10 year scenarios (starting with the year 2000) were reviewed and discussed at a special board meeting. It was agreed that the scenario with the $135,000 contribution and the 8% average investment gain is the one we would like to propose the membership as the one to bring to the city. o Full meeting minutes from Special Minutes 4- 10- 2001.doc printed on page 9. • At the general membership meeting after discussion and questions were answered it was agreed that the $135,000 contribution with the 8% increase is the one we would like to pursue with the council. o Full meeting minutes from Special Minutes 4- 24- 2001.doc printed on page 10 -11. Page 1 of 19 July 2001 • A meeting was held with the Relief board and Tom Burt and Jeff May to discuss the scenarios sent to them and answer any questions they had. Tom mentioned that he would like the scenarios updated starting with 2002 numbers (as this would be the first year of the new contribution if accepted) and extending to the year 2012 to make it a 10 year projection again. It was also mentioned that the $135,000 contribution number was derived from the current $26,000 contribution, $80,000 that would be reallocated from changing to a stipend instead of salaries, and $29,000 that would be added to the budget for this purpose. o Full meeting minutes from Informational Minutes 7- 9- 2001.doc printed on page 12 -13. • A general membership meeting was held to update everyone on the progress of the proposal. The updated projections to 2012 were delivered along with the other information he requested. o Relevant excerpts from the Special Minutes 7- 24- 2001.doc printed on page 14. September 2001 • An updated was provided at the quarterly board meeting that the proposal received a preliminary approval and would be moving on to a budgeting meeting. o Relevant excerpts from the Third Quarter Minutes 2001.doc quarterly board meeting minutes printed on page 15. December 2001 • It was reported that the conversion over to the stipend system and the increased municipal contribution of $135,000 was approved and would be in effect starting January 2002. The timing of the municipal contribution (during the year) was still being worked out. o Relevant excerpts from the Fourth Quarter Minutes 2001.doc quarterly board meeting minutes printed on page 15. January 2002 • It was communicated to the members at the annual meeting that the increase to the municipal contribution and the move to the stipend system was approved by the council and was effective January 1st o Relevant excerpts from the Annual Minutes 2002.doc quarterly board meeting minutes printed on page 15. December 2003 • It was brought up at the quarterly meeting that Jeff and the new City Administrator has some questions about the potential deficit the relief showed on the benefit increase proposal. With the large addition of firefighters and the target number of firefighters being stated at 50, it was also mentioned to Jeff about possibly having to increase the contribution amount because of this. The initial projections were created with 33 firefighters. Jeff said he would need updated projections and how the 14 new firefighters and getting to 50 firefighter would affect the time period to get to the max benefit. o Relevant excerpts from the Fourth Quarter Minutes 2003.doc quarterly board meeting minutes printed on page 16. Page 2 of 19 May 2004 • At a meeting with Jeff and Jamie we outlined the background of where the current $135,000 contribution came from and mentioned that it was based on having 30 -35 firefighters. With the increased numbers and the goal to get to 50 firefighters we wanted to explore options to increase the municipal contribution to offset this. Jeff mentioned that he would need to see similar projections to the original ones we ran, but with current numbers through 2003 and then running 3 different scenarios that showed a contribution increase of 2 %, 3 %, and 5% a year. o Full meeting minutes from Informational Minutes May 31 2004.doc printed on page 17. June 2004 • At the quarterly board meeting it was reported that the scenarios Jeff requested were completed and would be sent to him for review. o Relevant excerpts from the Second Quarter Minutes 2004.doc quarterly board meeting minutes printed on page 18. January 2005 • At the annual meeting it was reported that the 3% yearly increase to the municipal contribution was approved by the city council and should be effective starting with the 2005 contribution. o Relevant excerpts from the Annual Minutes 2005.doc quarterly board meeting minutes printed on page 18. Page 3 of 19 Nimwtin ha the ipetilM Nettiti et the NW WWII 1�r tMe 1temewtt 'Mkt inotigiet Mel et Stiptvgit+r , CaII to Order: 1835 Hours This meeting has been called for the membership of the Rosemount Relief Association to discuss the option of fully funding the Reliefs pension funds. Tom Burt has agreed to be present to answer any questions that the membership has about implementing this option. New Business: Tom started the meeting by presenting the details of fully funding the relief association's pension fund. This would be done without impacting the current budget of the fire department. To do this the roemount fire fighters would agree to receive a stipend per call instead of an hourly rate. This stipend would be approximately $2.00. The City would then allocate all money saved from the yearly wages of the firefighters and contribute this to the Relief Association's pension in the form of a City Contribution. Currently the City gives us $26,000 per year for the City contribution to the pension fund. This amount would be increased to approximately $106,000 or the max allowed by law, if there is a max, that the City can contribute to the fund per year. The result of this increased contribution would be that the yearly benefit paid to the Association members at the time of retirement would increase to the maximum amount as stated in the Minnesota statutes — currently $5500. Tom said this plan has been mentioned to the City Council and they support doing the research into what it would take to make this happen. Tom said that he would need the help of our Association officers to do some analysis on how long it would take to get to the maximum yearly benefit level and how much the City would be required to contribute per year to achieve this. Since neither the City not the Association board members would feel comfortable doing this we may hire an expert to perform this analysis. Tom also suggested that we remain at the 10 year vesting level instead of considering lowering this to 5. The pension fund may not be able to handle this increased liability. The 2001 budget has been set so if this option is accepted then it would start for the year 2002. Questions: At this time the floor was opened up for questions. The questions and discussion will be listed below in as much detail as possible. Lundell made a motion to have Krista Kay Boston run numbers for us, if the fee is less than $500, to determine what the City contribution would need to be to get the Page 4 of 19 yearly benefit level to the maximum. The cost of this service will come out of the special fund. Seconded by Snyder. Motion Carried. Adjourn: A motion was made by Kropelnicki and seconded by R.C. Anderson to adjourn. Motion Carried. Meeting adjoumed at 1930 hours. Respectfully submitted, Attest, Scott Engelmann Jerry Noll Secretary Relief Association President Relief Association Page 5 of 19 olte% *0i the %NOM Nee* 0t tin Send •t litvateett Meld ON reMinaty 27 % 2001 CaII to Order: 2056 Hours Roll Call: Members Present : Scott Aker, Scott Engelmann, Mark Evenson, Mike Haeg, Jerry Noll, Rick Schroeder Members absent : Cathy Busho, Linda Jentink, Glenn Snyder New Business: This meeting was called to Discuss the report that Krista completed for the 5 year plan. We will also discuss the amount of money being invested into the SBI account and which fund it will be invested in. Discussion: Mark reported that he mailed the check to the SBI as they only do deposits and withdrawals at the end of the month. The money is going into the Interest Income fund but can be transferred between accounts anytime. The amount from Provident was for $117,500. $500 of this will be kept in the bank for expenses. The check amount mailed to the SBI was for $117,000. In reviewing the 5 year plans that Krista completed many questions came up. It was determined that we should see if Krista would be willing to meet with us or if we should email her the questions and get answers back. It was decided that a list of questions would be sent to her and if we did not get sufficient answers or explanations we would set up a meeting or a phone call. The list of initial questions is as follows: 1) When a municipal contribution is listed is this in addition to the 105,000 that was voluntarily contributed? If it is then shouldn't it be included in the prior year revenue value for the current or next year? 2) Is the 2001 column the schedules that we submitted last year? If so why is there an additional 105,000 contribution added to them. Isn't the money from last years schedules already contributed and cannot be changed? 3) It seems like with the extra 105,000 contributions that the extra Municipal contribution in 2002 would not be needed yet, is this correct? 4) Is the Minimum Benefit Level actually the maximum benefit level that we can per statute not increase above for that year? 5) On Scenario D why does the 2005 target benefit level decrease along with the minimum benefit level. 6) On Scenario E why is the Voluntary Contribution not included in the Total Revenue for Prior Year amount? It seems to be included for the other scenarios. Page 6 of 19 February 27th 2001 Special Board meeting minutes continued ... Page 2 of 2 7) On some of the scenarios the Accrued Liability does not seem to increase appropriately for the 2005 schedules based on the size of the benefit increase. Example - Scenario 1 in group C in the year 2004 the benefit level went up 300 and the liability increased 228,000 dollars and in 2005 the benefit increased 700 but the accrued liability only increased 245,000. It seems like it should have increase more. 8) In some cases the Minimum Benefit Level is actually lower than the Target benefit level - is this correct - I though we could not increase above this? Group D scenario 1. Adjourn: A motion was made by Snyder and seconded by Evenson to adjourn. Motion Carried. Meeting adjourned at 2057 hours. Respectfully submitted, Attest, Scott Engelmann Jerry Noll Secretary Relief Association President Relief Association Page 7 of 19 Relevant First Quarter Minutes 2001 The answers to the questions sent to Krista about the report she provided us. Some preliminary reports completed by Scott Engelmann were reviewed. These reports were completed in the same manner as the ones from Krista, and the numbers compared to make sure the formulas were working the same. The difference is that the new reports are being done for a ten year range instead of a 5 year range. Also this gives us the flexibility to run any scenario we want. Based on the preliminary reports it was decided that we want to run scenarios for a few different contribution levels and different investment gain percentages. The city will make copies for the general membership and will be distributed before the general meeting. A Special board meeting will be held the 2nd Tuesday, April 10th after drill to discuss the 10 year reports. A general membership meeting will be held on the 4th Tuesday, April 24th to present everything to the membership along with a recommendation that we think should be presented to the city. Page 8 of 19 ut % tI%rA the $,•I theft, St the loud et Triiktees held 0a Ail 1001 Call to Order: 2144 Hours Roll Call: Members Present : Scott Aker, Scott Engelmann, Mark Evenson, Mike Haeg, Jerry Noll, Glenn Snyder Members absent : Cathy Busho, Linda Jentink, Rick Schroeder New Business: This meeting was called to Discuss the report that Scott Engelmann completed for the 10 year plans along with a plan that we want to recommend to the membership as the one we think should be sent to the city. Discussion: After the report were explained and reviewed it was decided that the following scenarios would be brought to the membership: 1) 105,000 contribution, 10% appreciation with no payouts and no new members 2) 105,000 contribution, 8% appreciation with no payouts and no new members 3) 105,000 contribution, 6% appreciation with no payouts and no new members 4) 135,000 contribution, 10% appreciation with no payouts and no new members 5) 135,000 contribution, 8% appreciation with no payouts and no new members 6) 135,000 contribution, 6% appreciation with no payouts and no new members 7) 26,000 contribution, 10% appreciation with payouts and 1 new member a year 8) 26,000 contribution, 8% appreciation with payouts and 1 new member a year 9) 135,000 contribution, 8% appreciation with payouts and 1 new member a year The recommendation the board would like brought before the membership is the 135,000 contribution with the 8% appreciation. A motion was made by Snyder to recommend to the membership that the 135,000 contribution with 8% appreciation scenario should be the one that is presented to the city and seconded by Evenson. Motion carried. Adjourn: A motion was made by Snyder and seconded by Haeg to adjourn. Motion Carried. Meeting adjourned at 2225 hours. Respectfully submitted, Attest, Scott Engelmann Jerry Noll Secretary Relief Association President Relief Association Page 9 of 19 Meete% titem tie a @ M 11100tio et th0 IMeImM% hip til e went ROO A eeeiatiee @ •e A till Nth', /ell Call to Order: 2144 Hours Roll CaII: 22 members of the 38 total were present. New Business: This meeting was called to Discuss both the reports prepared by Krista Kay Boston and the reports prepared by Scott Engelmann along with a plan that we recommend be presented to the city. Discussion: The following reports were delivered to the membership: 1) 105,000 contribution, 10% appreciation with no payouts and no new members 2) 105,000 contribution, 8% appreciation with no payouts and no new members 3) 105,000 contribution, 6% appreciation with no payouts and no new members 4) 26,000 contribution, 10% appreciation with no payouts and no new members 5) 26,000 contribution, 10% appreciation with payouts starting 2004 6) 26,000 contribution, 10% appreciation with payouts and 1 new member a year 7) 26,000 contribution, 8% appreciation with payouts and 1 new member a year 8) 105,000 contribution, 10% appreciation with payouts and 1 new member a year 9) 105,000 contribution, 8% appreciation with payouts and 1 new member a year 10) 135,000 contribution, 10% appreciation with payouts and 1 new member a year 11) 135,000 contribution, 8% appreciation with payouts and 1 new member a year 12) 135,000 contribution, 6% appreciation with payouts and 1 new member a year The board recommended that #11, the 135,000 contribution with 8% appreciation be presented to the city. Some of the questions that came up during the discussion are listed below. What is the difference between the Required Municipal contribution and the Voluntary Municipal contribution? The Voluntary contribution is the amount the city is voluntary giving to the Relief Association. The Required contribution is the amount that the schedule says the city must contribute to the Relief for that year. As long as the required amount is less than the voluntary amount for that year the city only needs to contribute the voluntary amount. With this contribution level would there still be an hourly wage? No. The money budgeted for the salaries would be used for the increased contribution. Instead of a salary we would have a stipend per call or per drill. What would the stipend be set at? That needs to be determined by finding some other cities that are currently doing this and see what their stipend is. This will need to be set by the fire department. What has our average rate of return been over the past years? We have had an average of 12% with a high of 17% and a low of -1 %. Page 10 of 19 April 24th 2001 Special Membership meeting minutes continued ... Page 2 of 2 If we assume an average of 8% on the returns what benefit level could we be at with the current 26,000 contribution? See page 7 of the printouts. One thing that we need to keep in mind is that the numbers on these reports are estimates only. If the city accepts a proposal it is not a contract with the city for benefit increases. The actual increase would still be based on the schedules that are completed each year with the actual return percentages and other numbers. A motion was made by Lundell to propose to the city the 135,000 contribution with an average 8% appreciation and seconded by Reis. Motion carried. Adjourn: A motion was made by Ford and seconded by Paulson to adjourn. Motion Carried. Meeting adjourned at 2127 hours. Respectfully submitted, Attest, Scott Engelmann Jerry Noll Secretary Relief Association President Relief Association Page 11 of 19 Illitivitta Item the Me#ermetieeeM M@etleg of the Beef et b %tee% iteli ON *wi Call to Order: 2110 Hours Roll CaII: Members Present : Scott Aker, Scott Engelmann, Mark Evenson, Mike Haeg, Jerry Noll Members absent : Cathy Busho, Linda Jentink, Glenn Snyder, Rick Schroeder New Business: This meeting was called to answer any questions that Tom Burt and Jeff May have about the series of reports that we sent to the city and the proposed benefit increase plan. This meeting was optional for the board of trustees. Discussion: The reports were explained and reviewed with Tom and Jeff. The origin of the numbers were explained and it was discussed how we came up with the 135,000 voluntary contrinution. After the discussion a few questions were answered. The city will check into a few issues. They will verify that we will be covered under the workers comp policy if we implement something like this. They will also check into the Deferred Comp contributions that the members are currently making to see if they will still be required. Tom thinks he could sell this plan to the council. If this plan was approved it would start with the 2002 contribution since the 2001 budget is already set. We need to check around and see what other cities are currently using a stipend similar to what we would use. Tom or Jeff will then call them to get information on how they have implemented the process. For the reports that have been produced Tom would like them updated starting with the 2002 numbers and extending to the year 2012. He would also like it documented where the 135,000 contribution would be taken from, 26,000 from the current contribution, 80,000 allocated for salaries, and an extra 29,000 that would need to be added to the budget. He needs these back by July 26th for the council meeting in August. The fire department would need to put together a proposal on how the stipend would work. For example, what would the stipend apply to? Calls, Drills, State Schools, etc. This would also need to be tied into the call and drill percentages that would still need to be maintained. We will also need to work with the city to set an appropriate stipend (i.e. 2$ per call or drill). The proposal is tentatively slated to go before the council on August 14th. Page 12 of 19 July 9th 2001 Special Board meeting minutes continued ... Page 2 of 2 Adjourn: Meeting adjourned at 2135 hours. Respectfully submitted, Attest, Scott Engelmann Jerry Noll Secretary Relief Association President Relief Association Page 13 of 19 Relevant Special Minutes 7 -24 -2001 Ifhe status of the new pension benefit proposal was then discussed. Engelmann reported that an informational meeting was held with Tom Burt and Jeff May. This meeting was to explain the 5 year plan from Krista and the 10 year projection reports that were delivered to Tom and Jeff. They had a few questions about where we came up with the numbers and how we arrived at our recommendation of 135,000 a year contribution. Tom and Jeff then requested a few more pieces of information. Tom wanted to see a breakdown of where the money for the 135,000 contribution would come from (example existing salary budget, current contribution, etc.) and he also wanted the projections extended out to 12 years (this would in effect make them 10 year projections again since the contribution would start in 2002). The 12 year projections were delivered to Tom Burt along with the breakdown of where the 135,000 contribution would be coming from (Thanks Scott Aker). Tom is working on getting this on the City Council agenda for approval. It sounded like he was fairly confident that they would approve this change. There were few questions aboutthe proposal that members had: 1) Will we still have to contribute to the Deferred Compensation plan? Yes 2) Will we still get reimbursed for tuition and lodging to attend state schools ?Yes 3) Is the 135,000 set in stone or can this be increased. Once the council approves it I believe they will want to leave this as is, especially not raising it since they will be budgeting for this amount. 4) How often does the state increase the maximum benefit amount? We are not sure. We will try to keep up with it when the increases happen though as long as the city does not set a specific numberof years on the increased contribution amount. Page 14 of 19 Third Quarter Minutes 2001 The City council has seen the proposal for the new pension benefit plan. The approved what they saw and the next step is now the budget approval council meeting currently slated for the third Tuesday in December. It sounds like getting by the initial meeting and onto the budget meeting was the hard part. Fourth Quarter Minutes 2001 The conversion over to the stipend system and the increased municipal contribution will be effective January 1st. At this point we are not sure when the actual contribution will come from the City. Typical the send in in fall. Jerry will be checking to see if we can work something out to get half the money in early spring (February) and the rest at the regular fall time period. We will also be determining when we can do increases to the benefit level. In depends on when the money is deposited into the accounts, and how often we want to approach the city council with increases. At the current time the benefit level is evaluated when the yearly schedules are completed in the June -July time frame. This minimizes the times we have to approach the council for an increase. Annual Minutes 2002 The changes to the city contribution amount successfully passed the City Council. The $2 stipend was effective on January 1st. Jerry was able to work with Tom Burt to get a portion of the city contribution in February. This will help split up the investmentwe make into our funds, instead of making one large contribution it is better to split is up into smaller contributions if you can. We should be receiving $94,000 from the City. We also need to decide where to investthis. Do we want to put it into the SBI funds or do we want to fund some of the Smith Bamey funds. The decision was made to put 25,000 into each of the growth funds with SBI and to put the rest into the Income fund. Page 15 of 19 Fourth Quarter Minutes 2003 Scott reported his conversion with Jeff May from the city. They had some questions about the deficit amount. Jeff wanted to verify why we were running at a deficit and whether this would require the City to contribute more money to cover it. Part of this reason is the City administrator (Jamie) is new to this process also and he was wondering about the deficit. The increase was successfully approved by the City council. Our current benefit level is at $3900. Engelmann will work on setting up a meeting with the appropriate people from the City and the Relief Board sometime in January or February. Scott also reported on his conversation with Jeff about exploring options to increase the actual contribution the city is giving to the Relief Association. Jeff said that we would need to show justification to increase the amount, ie how the 14 new firefighters have affected the projections of getting to the max. Jeff said we could certainly setup a meeting with himself and Jamie and members of the Relief association board, but it did not sound real promising. May get a different reaction in with more people involved in the larger meeting. Discussion was held about the current setup with the stipend and the larger increases and what options we had for changes. Page 16 of 19 Roll Call: New Business: Discussion: Members Present : Scott Aker, Scott Engelmann, Linda Jentink, Jerry Noll, Jim Voelker City Officials Present: Jeff May, Jamie Verbrugge This meeting was called to discuss with the city the possibility of increasing the yearly municipal contribution over the next few years. We started out by giving Jamie the background on where the current 135,000 contribution came from. We emphasized that at the time we ran the scenarios we only had 30 -35 firefighters. Now with the big increase in firefighters and the push to get closer to 50 after the new station is completed we are exploring options to increase the municipal contribution to help offset these additional firefighters and continue to strive to get to the max yearly benefit payable. We then gave them the ideas we came up with: • Determine the current per firefighter funding (135,000/31 = 4354). Each year in August we would determine the current number of firefighters and then base the following years contribution by taking that number times the per firefighter funding (35 * 4354). • Look at the percentage increase in state aid from the previous year and the increase the municipal contribution by that percent. After discussing the different options Jeff said that in order to propose something to the city council he would need to see numbers. We would need to run something similar to the scenarios we ran for them the first time. It was agreed that we run the scenarios by starting with our current numbers through 2003 and then running 3 different increase scenarios, one with and increase in the municipal contribution of 2 %, one with an increase of 3 %, and one with an increase of 5 %. This would show how fast we could get to the max with the additional contributions. We agreed that Jeff did not want to see the previous scenarios update with current numbers to determine how much of an impact the additional firefighters (getting to a max of 50) would have on the previous estimates. Another question was raised about what will happen once the max yearly benefit is reached, would wages be brought back, would the stipend slowly increase, etc.. Jeff said that is something we will have to address at the time. It is good to bring it up now but the decision can not be made until we get closer to that point. Respectfully submitted, Attest, Scott Engelmann Jerry Noll Secretary Relief Association President Relief Association Page 17 of 19 Second Quarter Minutes 2004 Had meeting with Jeff and Jamie. Engelmann gave a recap of the meetings and what was decided we needed to propose. He created scenarios for the city contribution increase, they wanted to see the impact of a 2 %, 3 %, and 5% increase and how much it affected our ability to get to the max sooner. Ran one set with very aggressive increases — running a high deficit, and another scenario with more realistic increases staying at a reasonable deficit. These scenarios have the number of firefighters up to 50 starting in the year 2006 with actual numbers up through 2003. Both the aggressive and realistic scenarios will be sent to the city for review. Engelmann also would create minutes from that meeting. Annual Minutes 2005 Scott also mentioned that the 3% increase to the cities contribution each year was approved by the city council. This should start with the 2005 contribution. The bylaw change to reword the interest percentage for fully deferred members also passed the city council. Page 18 of 19 Municipal Contribution $ 135,000 Appreciation Rate 8.00% 2002 2003 3% Increase starting in 2005 2004 2005 $135,000 Municipal Contribution with 8% Appreciation. Actual numbers through 2003 2006 1_ 2007 1 2008 1 2009 1 2010 1 2011 1 2012 Proposed Benefit $3,500 $3,900 $4,500 $5,100 $5,700 $6,200 $6,700 $7,000 $7,200 $7,500 $7,500 Max Benefit Allowed $4,000 $5,800 $7,000 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 Actual Actual # of Retirees # Added # Active Firefighters 0 0 1 1 1 1 1 1 1 1 1 1 12 4 4 3 1 1 1 1 1 30 42 45 48 50 50 50 50 50 50 50 Beginning Balance $1,002,211 $1,030,117 $1,493,237 $1,721,136 $1,964,811 $2,209,909 $2,388,740 $2,596,058 $2,895,240 $3,178,103 $3,467,760 State Aid $54,303 $62,378 $79,949 $82,347 $84,818 $87,362 $89,983 $92,683 $95,463 $98,327 $101,277 Voluntary Municipal Contribution $135,000 $135,000 $135,000 $139,050 $143,222 $147,518 $151,944 $156,502 $161,197 $166,033 $171,014 Investment Income ($175,397) $252,742 $119,459 $137,691 $157,185 $176,793 $191,099 $207,685 $231,619 $254,248 $277,421 Expenses $2,000 $3,000 $3,105 $3,214 $3,326 $3,443 $3,563 $3,688 $3,817 $3,950 $4,089 Benefits Paid $0 $0 $103,404 $112,200 $136,800 $229,400 $222,145 $154,000 $201,600 $225,000 $202,500 Total Assets $1,030,117 $1,493,237 $1,721,136 $1,964,811 $2,209,909 $2,388,740 $2,596,058 $2,895,240 $3,178,103 $3,467,760 $3,810,884 Accrued Liability $1,166,341 $1,440,686 $1,708,317 $2,025,311 $2,361,541 $2,596,419 $2,871,834 $3,160,332 $3,377,808 $3,657,642 $3,820,242 Surplus /Deficit ($136,224) $52,551 $12,820 ($60,500) ($151,632) ($207,679) ($275,776) ($265,092) ($199,705) ($189,882) ($9,358) Required Municipal Contribution $14,606 $6,461 $20,111 $52,413 $71,251 $96,950 _ $119,409 $122,456 $122,846 $120,747 $79,549 Contribution Increase $0 $4,050 $4,172 $4,297 $4,426 $4,558 $4,695 $4,836 $4,981 Page 19 of 19 History of Pension Benefit Increases Year Benefit at End of Year Amount of Increase 1999 $2,600 2000 $2,800 $ 200 2001 $3,000 $200 2002 $3,500 $500 2003 $3,900 $400 2004 $4,800 $700 2005 $5,300 $500 2006 $6,100 $800 2007 $6,900 $800 2008 thru 2013 $6,900 2008 is when we had the big market correction and our funds dropped. Because of being at a deficit for those years, until last year, we have not had an increase for 2008 thru 2013. How the Schedules are filled out and utilized These forms are initially filled out in July and turned into the City by August so that they can be used for budgeting purposes, so many of the numbers on here are projections for the rest of the current year. The municipal contribution listed at the bottom is the required minimum contribution required for the following year Page 1 (there are actually multiple page l's) is the information entries for all the firefighters. The statuses determine if the firefighter's totals are calculated and included in totals used later. • The accrued liability amount is calculated based on the benefit level, the years of service, and a percentage built into the forms based on the years of service. Page 2 (there are actually multiple page 2's) contains the payment information for deferred members. • Unless a member has 20 years or more of service the numbers are static on the deferred pages. If the member has more than 20 years of service then the Estimated Liability will increase each year by the specified interest rate. Page 4 contains the numbers for calculations • Calculation of Normal Cost o Page 1 active members are totaled up in the Total Active Member Liabilities box o Page 2 deferred members are totaled up in the Total Deferred Member liabilities box o The Normal Cost is the change from one year to the next at the same benefit level. • So from 2013 to 2014 if the benefit level does not change the increase in the liability for the current members is the normal cost. • Projection of Net Assets o Box D is the projected state fire aid for the current year o Box E is the municipal contribution for the current year o Box F is any interest earned on the special funds (the funds invested for benefit payouts) o Box G is the projected gain /loss of the special funds for the current year o Box J is any expected pension payouts for the current year o All these are used in calculating the Projected Ned Assets for the current year. • Projection of Surplus /Deficit o Projected Assets minus Accrued Liability in the Surplus /Deficit • Calculation of Required Contribution o This section is using the numbers entered and calculated in the above sections (except the Previous year admin expense). o Based on those numbers a required contribution is calculated for the following year. At the end of the year the numbers are updated with actual state fire aid, interest, and gain /loss values. The Pension payouts are also updated if there were some in the second half of the year we did not know about. With these updated it gives us a good picture of what the actual surplus /deficit is at the end of the year. Once the numbers are updated and if we have a surplus we can adjust the benefit level to see how it affects the surplus amount and the municipal contribution to determine if we should pursue a benefit increase. 4 ROSEMOUNT CITY COUNCIL City Council Work Session Meeting: March 13, 2013 EXECUTIVE SUMMARY AGENDA ITEM: Fire Department compensation PREPARED BY: Dwight Johnson, City Administrator AGENDA SECTION: Tit SU LS 16171 AGENDA NO. 2- ATTACHMENTS: Firefighter pay rates, Firefighter total compensation, Fire Department expenditures per capita, Memo on possible longer range needs, memo from Chief Aker, information from February work session APPROVED BY: RECOMMENDED ACTION: Discussion only BACKGROUND A proposal to increase fire department pay from $6 to $10 per call and generally increase officer stipends by 10% was budgeted for 2013 and discussed at the February work session. Council members asked for revisions, expansions, reorganization and updates on the data presented at that time. DISCUSSION The attachments show that more cities have now been added for comparison purposes. The cities have been divided into two groups: cities near us and cities similar in size and structure to us throughout the metro area. For each group, we are now showing the mean, median, high and low results next to Rosemount for each category. Also, all information in the attached charts is no older than 2012 and much of it is 2013. The exception is that 2010 Census data is used for population. Finally, we have provided a discussion and some calculations of potential future costs of a duty crew and full-time staff. Chief Aker has provided additional information on these topics.as well. SUMMARY Council members should review the data and direct staff regarding changes in compensation for the Fire Department. Discussion regarding the Fire Relief Association will be planned for a future meeting. If Council members believe that significant additional information or analysis is needed, consideration should be given to hiring a consultant as Chanhassen has done recently. FIREFIGHTER COMPENSATION RATES Rosemount current Rosemount proposed Rosemount estimated per hour based on $10 NEARBY CITIES Apple Valley Lakeville Farmington Eagan (per call) Inver Grove Heights Hastings Average Nearby Cities Median Nearby Cities High Low Rosemount proposed SIMILAR CITIES Chanhassen Cottage Grove Golden Valley Hopkins New Brighton Prior Lake Shakopee Stillwater Farmington Inver Grove Heights Hastings Average Similar Cities Median Similar Cities High Low Rosemount proposed Population; On Call Pay Pension per (2010 census): per hr. unless noted Year of Service 21,874 ! 6.00 per cal 6,900 10.00 per callL 6,900 6,900 49,084 , 13.99; 6,400 55,954 10.00; 6,417 i 21,086 10.21; 4,575 64,206 ; 15.00 6,716 33,880 11.50 5,800 22,491 13.00 41 4,000 41,117 12.28 5,651 41,482 12.25 6,100 64,206 13.99 6,716 21,086 10.00 4,000 21,874 10.00 6,900 22,952: 9.00 1 1 34,589 ' 11.00 t 5,050 3,600 20,371 14.40 i 6,700 17,591 I 13.52 7,000 21,456 13.55 I 5,600 22,796 I 11.00 37,076 w 10.00 6,500 7,500 18,225 11.25 21,086 I 10.211 33,880 22,172 5,000 4,575 24,745 22,172 37,076 17,591 21,874 11.50 ! 5,800 13.00 4,000 11.68 5,575 11.25 5,600 14.40 7,500 9.00 3,600 10.00 6,900 FIREFIGHTER TOTAL COMPENSATION -20 YEAR CAREER Population (2010 census Rosemount current 21,874 Rosemount $10 /call NEARBY CITIES Apple Valley On Call Pay Pension r Total 1 Career Comp Payment Compensation per hour 35,478.26; 138,000.00; 173,478.26': 22.67 21,874 59,130.43 138,000.00 197,130.43; 25.76 49,084 A_ 107,051.481 128,000.004 235,051.48 30.72 akeville 55,954 76,520.001 128,340.00' 204,860.00 26.77 Farmington Eagan Inver Grove Heights Hastings 21,086 78,126.92; 91,500.00 64,206 88,695.65 33,880 87,998.00. 4. 22,491 ; 99,476.00 80,000.00 169,626.92 22.17 134,320.00 223,015.65; 29.14 116,000.00 1 203,998.00: 26.66 Average Nearby Cities 41,117 89,645 113,027 Median Nearby Cities 41,482 88,346 122,000 High 64,206 107,051 134,020 Low 21,086 76,520 80,000 Rosemount proposed 21,874 59,130 138,000 SIMILAR CITIES Chanhassen Cottage Grove Golden Valley Hopkins 22,952 68,868.00 101,000 34,589 1 84,172.00 20,371 New Brighton • 179,476.00! 23.45 202,671 w_ ^...._.__ 26.49 223,517 29.21 261,856 34.22 189,189 24.72 197,130 25.76 169,868.00 22.20 72,000 156,172.00A_ 20.41 110,188.80 1 134,000 1 244,188.80 ' 31.91 17,591_! 103,455.04 140,000 a 21,456 1 Prior Lake 22,796 103,684.604 84,172.00 243,455.04 1 31.82 112,000 1 215,684.60 I 28.19 130,000 214,172.00 27.99 Shakopee 37,076 Stillwater Farmington 76,520.00 150,000 1 226, 520.00. • 29.60 Inver Grove Heights Hastings 18,225 ! 86,085.00 100,000 186,085.00 24.32 21,086 1 78,126.921 91,500; 169,626.92; 22.17 ■ 33,880 1 87,998.00 I 116,000 203,998.001 26.66 22,172 99,476.00 80,000 179,476.00 23.45 Average Similar Cities 24,745 89,341 111,500 200,841 26.25 Median Similar Cities 22,172 86,085 112,000 226,032 26.66 High 37,076 137,779 150,000 271,779 31.91 Low 17,591 86,112 72,000 177,248 20.41 Rosemount proposed 21,874 59,130 138,000 197,130 25.76 Note: All data is 2012 -2013 except population is 2010 Census. Sources: Staff survey and League of Minnesota Cities website FIRE DEPARTMENT EXPENDITURES PER CAPITA Population: Fire Expendiures t (2010 census)! 2013 Fire Budget Per Capita Rosemount ' 21,874 I 437,000. 19.98 NEARBY CITIES Apple Valley Lakeville (2012) Farmington Eagan Inver Grove Heights 49,084 1,960,500.00;; 39.94 55,954 1,407,095.00 25.15 21,086 1,090,716.00; 51.73 64,206-T 1,897,400.00 1 29.55 33,880 1,377,000.00 I 40.64 Hastings* 22,491 Average Nearby Cities Median Nearby Cities High Low Rosemount SIMILAR CITIES Chanhassen 3,221,776.00 } 143.25 41,117 1,825,748 55.04 41,482 1,652,247 40.29 64,206 3,221,776 143.25 21,086 1,090,716 25.15 21,874 437,000 19.98 22,952 757,300.00 32.99 Cottage Grove (2012) 34,589 837,585.00 Golden Valley Hopkins (2012) New Brighton Prior Lake 20,371 1,591,200.00 17,591 24.22 78.11 855,424.00 48.63 21,456 845,000.00 22,796 857,539.00 39.38 37.62 Shakopee 37,076 I 1,792,325.00 48.34 Stillwater (2012) Farmington Inver Grove Heights • 18,225 j 1,352,010.00 21,086 1,090,716.00 33,880 1,377,000.00 74.18 51.73 40.64 Hastings* 22,172 3,221,776.00 ' 145.31 Average Similar Cities 24,745 1,325,261.36 56.47 Median Similar Cities 22,172 1,090,716.00 48.34 High 37,076 3,221,776.00 145.31 Low 17,591 757,300.00 24.22 Rosemount 21,874 437,000.00 19.98 *Hastings has 14 FT and provides ALS ambulance service with $1.78m in fees. 4 ROSEMOUNT CITY COUNCIL City Council Work Session: March 13, 2013 EXECUTIVE SUMMARY AGENDA ITEM: Long range Fire Department Budget Discussion AGENDA SECTION: PREPARED BY: Dwight Johnson, City Administrator AGENDA NO. ATTACHMENTS: APPROVED BY: RECOMMENDED ACTION: Discussion only. BACKGROUND At the February 13th work session, Council members requested an analysis of impacts on future Fire Department budgets if either a full -time staff member is added and /or a duty crew concept is implemented. For purposes of analysis, we have assumed that a future full-time staff member would be a full time Fire Chief. A duty crew is a concept where a few paid on call firefighters sign up for shifts of 2 -4 hours each during normal work hours (8 a.m. to 5 p.m. M -F) to help assure daytime response. They get an hourly rate similar to their paid on call rate for the hours they work and get some credit for meeting the required percentage of calls response. For this memo, we are assuming that a duty crew would consist of two firefighters filling daytime shifts. It is possible a dozen or more different firefighters might sign up for one or more duty crew shifts per month. DISCUSSION Before discussing the details, it has not been determined that either a full -time chief or a duty crew is necessary at this time. In our Chief selection process, we had four capable candidates, all of whom represented that they have the necessary time to devote to the job. This suggests that the need for a full- time chief may be at least three years away, since the Chief's position has a three year term. Chief Aker has submitted information that indicates that 17% of all calls had less than 10 firefighters responding, but only 1% had fewer than five responding. There is some anecdotal evidence that firefighters tend to respond to some degree according to the information details in the call and self - evaluate the need for a major response. And, before any Duty Crew is implemented, the City could look at the number and kind of medical calls to which we respond, especially if HealthEast continues to improve its ambulance response time. We may also be able to share a Duty Crew with one or more neighboring cities. Finally we may have some future potential for regular City employees to provide daytime response. It is wise, however, to be ready for any future contingency if some unforeseen change in the Fire Department, the community, or something external occurs such as a new government mandate. The cost of a full-time Chief would be estimated at $130,000 per year, based on a review of salaries and benefits in other communities. However, the City already budgets a stipend for the Chief who also receives paid -on -call compensation based on the number of calls answered. A full-time chief would not also be paid a stipend or receive on -call pay. Therefore, the net new cost of a Fire Chief is estimated at $117,000. Other options might include hiring a half -time salaried Chief if qualified candidates could be found or phasing in a full -time chief over two budget years to mitigate the immediate budget impact. It is assumed that a duty crew would supplement and not replace current day time response. Therefore, this analysis assumes that two weekday slots would be filled from 8 a.m. to 5 p.m. Monday through Friday. Since most firefighters probably do not work their full-time jobs on national holidays, we further assume that the duty crews are needed during the daytime hours for 250 days per year (52 weeks x 5 days /week less 10 holidays) The calculation of the cost of a duty crew can be summarized as follows: 9 hours per day x two firefighters at a time = 18 hours per day 18 hours per day x 250 days x $10 /hr.= $45,000 per year There would some savings in night -time and weekend call response, since the people serving on duty crews would be less likely to respond if their requirements are mostly met through duty crew assignments. On the other hand, there is some administrative cost for someone to fill the shifts and supervise the activities of the duty crew members when they are not out on calls. Typical duties include minor equipment and station maintenance, fire prevention activities, public education and fire pre - planning for larger buildings in the community. While these costs tend to cancel out, the costs of supervision are probably greater than the savings in night and weekend response. Therefore, rounding up, we would estimate the cost of a two person duty crew program at about $50,000 per year. BUDGET IMPACT If we hire a full-time Chief and implement a duty crew, the total budget impact would be about $167,000. These expenditures would be in the General Fund of the City which currently receives 79% of its revenue from property taxes. This amount is equal to 1.56 percent of the General Fund. This may or not require an overall property tax increase depending on many other conditions in the budget at that time. For example, the budgeted amount for Fire Department salaries has increased by $115,407 from 2011 to 2013, but the City's total levy decreased by $502,457 during that time. SUMMARY The timing and need for a full-time Chief or a Duty Crew is uncertain, and in the case of the Duty Crew concept, there are several management strategies to consider before implementation. Based on our current Fire Chief selection process, we may not need a full-time Chief for 3 -6 years. Daytime response should be monitored and a Duty Crew may be needed sooner, depending somewhat on the level of service the Council wishes to provide and unknown future events. The cost of a both a full time Chief and a Duty Crew are estimated at $167.000 in today's dollars. The source of funding would be the General Fund, which is 79% supported by property taxes. This could add 1.56% to our future tax levy for the Fire Department, but whether or not this would be the cause of an overall City tax increase in some future year will depend upon many other factors. 2 Firefighter Response During Work Day Without manually sorting through the 724 calls that the fire department responded to in 2012 it is not possible to isolate the calls that occurred during normal daytime working hours. It can likely be assumed that the calls with the fewest number of firefighters responding were during the day. The number of firefighters at each call was available by looking at past pay information. Below is the number of calls that occurred with less than 10 firefighters responding. Firefighters Number of Calls 9 28 8 32 7 32 6 13 5 11 4 5 3 3 2 1 Minimum acceptable number of firefighters responding The minimum number of firefighters needed to safely and efficiently handle an emergency call varies greatly with the type of call, location, and department procedures. For a minor medical call that is also being responded to by the police department, 3 firefighters could be adequate. That number would increase with a more severe medical call. Additional firefighters would be needed for a vehicle accident. The need for 15 firefighters would not be uncommon for a structure fire, and weather conditions could dramatically increase that needed number. If 10 firefighters are used for an average need at a high priority call, the above data would indicate that 125 calls or 17% fell below what would be desirable. However, at no time during 2012 did we feel that any calls failed to be handled properly due to the number of firefighters that responded. In other words the calls with a low turn -out of firefighters were apparently low priority calls requiring minimal personnel. Trigger for a Duty Crew Program The number of firefighters available during the day, call volume, availability by station, and response time seem to be the triggers that have moved other departments to the duty crew approach during the day. Neighboring departments that have duty crews are responding to at least twice as many calls as we are experiencing in Rosemount. Duty crews can take some of the load off of the day time responders who are typically few in number compared to the night time responders. One or two firefighters showing up at each station in a multi station city can be delayed in their response compared to a response when they are pooled together as a duty crew. Response time by a paid -on call department is composed of travel time to the station by firefighters in their person vehicles, and then response to the incident in emergency vehicles. A duty crew could theoretically reduce that response time to calls by 50% in many situations. When will there be a need for duty crews As was mentioned, increased population, increased number of calls, and the need for a 3`d fire station will all have an impact on the timing of the addition of a duty crew during the day. An inability to maintain response time, or desire to improve that time and improve the ISO rating would be decisions that could influence the desire for a duty crew at any time. A decrease in day -time available firefighters is always a concern, and firefighters are recruited accordingly. Currently we have firefighters who are retired, work second shift, have rotating days off, have early start and end times to their work day, and can leave work to respond to calls. This number can change at any time. Of the 9 firefighters who recently left the department or will soon, 6 of those 9 were available for day time response. Additionally 7 of those 9 were experience officers with the department. I do not believe a duty crew is warranted at the present time, but the factors that have an influence on that need should be monitored, as they have changed somewhat already, and have the potential to change quickly. Size of duty crew Some duty crews are used as a supplement to a paged response by the other paid -on call firefighters. That number can be as few as 2 firefighters on the duty crew. Some cities utilize their duty crews as a replacement to paging the paid -on -call firefighters during the day. A crew of 3 -4 is able to handle a majority of medical calls, fire alarms, CO calls, lift assists, and calls requiring a minimal amount of personnel. Cost to provide duty crews Duty crews are paid at the department's hourly rate, or if given a stipend for calls, are paid that stipend each hour effectively making it an hourly rate. The number of hours per day varies by department. A neighboring department utilizes duty crews on week days. They operate from 8AM to 5PM. Those 9 hours are divided into two 4 % hours shifts with 2 firefighters on duty each shift to supplement the paged response. The cost would be: 4 firefighters per day X 4 % hours X 5 days a week X hourly rate X 52 weeks = Annual cost If a department uses duty crews as a replacement to paging the rest of the firefighters there is some cost recovery to the salaries paid to the duty crews. However, a replacement crew would typically involve more than 2 firefighters so although there is some cost recovery there is also additional expense when the replacement model is used. Additional Information While on duty the duty crews are working. They are doing maintenance, routine inspection of equipment and vehicles, station housekeeping, fire prevention activities, inspections, preplans, providing assistance to the Fire Marshall, etc. There does need to be someone responsible for the logistics that are needed to operate a duty crew. Someone needs to be responsible for scheduling firefighters and assigning work each day. There is sometimes a cap on the number of hours a firefighter may work on a duty crew. At the present time an eye is being kept on the effect that Obama Care may have on the requirement to provide medical benefits if a firefighter works more than a certain number of hours in a week. If a duty crew is used to replace firefighters as was mentioned earlier, someone needs to monitor staffing levels and be in contact with the dispatching agency daily. The dispatching agency needs to know if they should be assigning calls to the duty crew, or paging the paid -on -call firefighters. This could even fluctuate mid -day if some shifts are not fully staffed. 4 ROSEMOUNT CITY COUNCIL EXECUTIVE SUMMARY City Council Work Session Meeting: February 13, 2013 AGENDA ITEM: Fire Department Compensation AGENDA SECTION: PREPARED BY: Dwight Johnson, City Administrator AGENDA NO. 2_A-. ATTACHMENTS: Compensation proposal; Multi -City comparison chart APPROVED BY: Dili RECOMMENDED ACTION: Consider compensation changes for Fire Department personnel BACKGROUND For nearly two years, the Council has been reviewing Fire Department compensation. The purpose of the ongoing review is primarily to help assure that the Fire Department can attract and maintain enough paid on call firefighters to continue to provide effective service to Rosemount for years to come. We are also seeking to be competitive in total compensation (including pension) with neighboring cities. Last year, the Council approved an increase in firefighter pay per call from $2 per call to $6 per call. Market studies show that we are still behind all other area cities in total compensation. The Fire Department has recommended additional increases in compensation as shown on the attached chart. Generally, the recommendation shows firefighter pay increasing from $6 to $10 per call and increases in the stipend for officers of about 10% (slightly more for the Lieutenant and Training Assistant). The last time pay was adjusted for the officers was in 2006. DISCUSSION Staff has reviewed the Fire Department's recommendations relative to the total compensation practices of other nearby cities. Rosemount has a higher pension benefit than the other cities, but also by far the lowest pay. In order to weigh these two items together, we analyzed what a Rosemount firefighter who serves for 20 years and retires would get in total compensation over that time period in both pay and pension benefits. We then looked at what this total compensation would be after 20 years in a number of our neighboring cities as shown in the second attached chart. This chart shows that with the proposed increase to $10 per call, Rosemount will be much closer, but still somewhat below most of our neighboring cities in total compensation. The Fire Department Relief Association discussed a $100 per year of service increase recently, but decided against it for this year. As discussed in the several recent City budget memos, the City at some point will likely need to consider adding one or more staff members to the Fire Department and implementing a Duty Crew concept to aid in day time response, even after implementation of the proposed increases in pay per call and officer stipends. For now, the Fire Department's recommendations on pay appear to be a reasonable next step in a longer range plan to assure the future of our very cost - efficient department. The 2013 Fire Department budget has sufficient funding to accomodate the proposal. Position Chief Asst Chief Captain Lieutenant Training Asst. Fire Education Secretary SOT Members Firefighter Stipend TOTAL Budget Difference PERA Medicare Balance Number 1 1 4 3 2 1 1 3 13600 $122,000 $14,875 $1,940 $1,330 $11,605 Current $9,300 $4,850 $950 $400 $400 $375 $2,200 $1,000 Salaries $6.00 $9,300 $4,850 $3,800, $1,200 $800 $375 $2,200; $3,0001 $25,525 $81,600 $107,125 Position Chief Asst Chief Captain Lieutenant Training Asst. Fire Education Secretary SOT Members Firefighter Stipend TOTAL Budget Difference PERA Medicare Balance Number 1 1 4 3 2 1 1 3 Proposed $10,200 $10,200 $5,3001 $5,300 $1,0501 $4,200 $500 $1,500 $5001 $1,000 $5001 $500 $2,400; $2,400 $1,1001 $3,300 Salaries $28,400 13600 $10.00 $136,000 $164,400 172,000 7,600 500 2,100 5,000 Lifetime Fire Compensation Comparison January, 2013 Rosemount current Rosemount Apple Valley Lakeville Farmington Eagan Inver Grove Heights Hastings $6 per CALL $10 per CALL On call pay 35,478.26 59,130.43 133,856.32 95,680.00 97,689.28 88,695.65 110,032.00 124,384.00 Pension payment 138,000.00 138,000.00 128,000.00 128,340.00 91,500.00 134,320.00 116,000.00 80,000.00 Total compensation 173,478.26 197,130.43 261,856.32 224,020.00 189,189.28 223,015.65 226,032.00 204,384.00 Career comp per hr 18.13 20.60 27.37 23.41 19.77 23.31 23.62 27.00 NOTE: Compensation based on firefighter retiring after 20 years of service and 9.2 hours per week Wage rates are based on 2012 survey except Eagan updated for 2013 increase Average of Other Cities Total Compensation 221,416.21 Rosemount Current Total Compensation 173,478.26 Rosemount 2013 Proposed Compensation 197, 130.43 (not including officer stipends) CURRENT FIRE SPENDING PER CAPITA Rosemount Apple Valley Burnsville Eagan Farmington Hastings IGH Lakeville 2010 Current Fire Expenditure per Capita $13.78 $33.66 $54.73 $25.94 $37.85 $103.48 $54.83 $22.10 Rank among cities over 2,500 pop. 221 of 224 150 60 192 126 10 58 209 Source: Minnesota State Auditor website Attachment 2 Paid On -Call Firefishter Organization Andover Population' 31,298 Pay ;per ;Hour . 13.:6 Pension Benefit Per Year + of Service FT Chief ?. • i • n t respon • accordingly 23,629 9.00 5,050 no Co um • is Heights 18,361 12.84 didn t respond actors ingly yes & AC Cottage Grove 34,000 . 11.00 3,600 Farmington 21,086 10.21 4,575 no. Golden Valley 20,371 14.40 $6,700 yes 22,491 13.00 4,000 yes & AC Hopkins 17,290 7,001 Inver Grove Heights 33,600 11.50 5,800 yes : AC New Brighton1=1.11=111111 5,600 yes PSD Prior Lake 111111111= 11.00 6, 00 Ramsey 111 = 12.88 + • l ••�• . • r oVel u illin A ro "Oil MIIIIIIIIMIll 5 a ogee 37,000 10.10 7,500 Stillwater 18,235 11.25 5,000 yes Average L— °c A. $12.00 $5,575 Al 00X411 6 ?(G L4k,eolle, 1/.0,90 /hr bc. Uet ae $13t?9(hr- • CITY OF ROSEMOUNT EXECUTIVE SUMMARY FOR ACTION CITY COUNCIL MEETING DATE: December 18, 2001 AGENDA ITEM: Fire department pay decrease. AGENDA SECTION: Consent PREPARED BY: Scott Aker, Fire Chief ATTACHMENTS: None Awe AGENDA NO: APPROVED BY: At the present time the fire department receives $8.25 per hour for responding to emergency calls. They also receive $6.00 per hour for training sessions. Effective January 1, 2002, the fire department would like those amounts decreased to a $2.00 stipend per event. Instead of being paid by the hour the members would each receive a $2.00 stipend for responding to fire calls, rescue calls and also for attending the 3 hour drill sessions.. Other events such as an open house, hall cleaning nights, fire department meetings, committee meetings and the like, which are currently paid at one of the two above mentioned rates, would be one stipend per event. In switching to this stipend method of payment, rather than an hourly method, the fire department would be able to reduce salaries by approximately $80,000 per year at the current rates of pay. The savings would be approximately $100,000 per year if the fire department had pursued a salary increase to keep them competitive with surrounding departments of our size. We would then request that the savings be paid to the relief association. This increase in revenue for the relief association will allow them to raise retirement benefits and make them more attractive to retain members and be competitive with surrounding communities. That payment to the relief association along with their current payment and state aid would take place in the later part of the year 2002 with council approval. RECOMMENDED ACTION: MOTION to reduce the Rosemount Fire Department pay from the salaries as listed above to a $2.00 stipend per event with the intent being that the savings would later be approved for the relief association. COUNCIL ACTION: I /2 -Wo (p. S(0`7(GO Am.