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HomeMy WebLinkAbout6.c. Certification for 1998 Fire Department Relief AssociationCITY OF ROSEMOUNT EXECUTIVE SUMMARY FOR ACTION CITY COUNCIL MEETING DATE: AUGUST 19, 1997 AGENDA ITEM: CERTIFICATION FOR 1998 FIRE RELIEF AGENDA SECTION: CONSENT ASSOCIATION PREPARED BY: SUSAN WALSH ASSISTANT TO CITY ADMINISTRATOR AGENDt�1�6�i i [[ 6 C ATTACHMENTS: SCHEDULES APPROVED BY: u Each year the Fire Department Relief Association must certify to the City Council the required funding needed by the city for their pension for the following year. Funding for the pension program comes from three essential areas. Those areas are: fire insurance premiums state aid, investment returns and tax levy support from the city. Based on the calculations provided by the Relief Association, there is no required contribution by the city for 1998. In fact, based on a 1997 contribution of $26,000, the association's investment returns, state aid and accrued liability, etc., the municipal contribution is a negative of ($8,780). For several years, the City Council has levied and given to the relief association the sum of $26,000. If the City Council reduced the annual contribution of $26,000 in 1998 or in future years, this reduction could have an impact on the following year's required municipal contribution. An increase in pension benefits, hiring of additional fire department employees, additional vested members, resignations, investment returns, etc. are some other factors that would affect what the city's required contribution would be. The purpose of this agenda item is to receive for the record Schedule I-II from the Relief Association reporting as of July 31, 1997 for State Fire Aid Year 1998. This form will also be filed with the State Auditor's Office. RECOMMENDED ACTION: MOTION TO ACKNOWLEDGE AND RECEIVE FOR THE RECORD THE RELIEF ASSOCIATION SCHEDULE I-II FOR LUMP SUM PENSION PLANS, REPORTING FORM YEAR 1997, STATE FIRE AID YEAR 1998 Form SC -97 SCHEDULE I-II FOR LUMP SUM PENSION PLANS REPORTING FORM YEAR 1997 STATE FIRE AID YEAR 1998 Firefighters Relief Association of Rosemount County of Dakota SCHEDULEI Computation of benefit of relief association special fund (at S 2200 per year of service) for all members based on their years of service as active fire department members. 1 Name 2 Age 3 F.D. Entry Date Month: Year I 4 5 1997 To End of This Year 6 7 I 1998 To End of Next Year Years Active Service Accrued Liability Years Active Service Accrued Liability 1. Aker, Scott 4 821 16 314161 17 3432011 2. Anderson, Robert 4 83 15 286881 16 314161 3. Bailey, Dave 4 891 9 146521 10 1 167201 4. Evenson, Mark 4 ': 861 12 211641 13 23540 5. Ford, Jay 7 911 6 90201 7 1 10824 6. Gerrits, Joe 7 861 11 188761 12 211641 i 7. Haeg, Mike 8. Hel eson, Scott 4: ? � 821 91 16 6 31416 9020 17 7 ( I 34320 108241 9. Hill, Shawn 11: 92 5 7348 6 90201 10. Kornovich, Ashley 9:>; 821 15 28688 16 31416 11. Long, Pat 12 t 94 3 4180 4 5720 12. Lundell, Pete 10 �; 691 28 61600 29 638001 13. Mooney, Terry 8 90 7 10824 8 12672, 14. Nelson, Edward 12:::: 93 4 5720 5 73481 15. Paulson, Wayne 7 86 11 18876 12 21164 Total from Pae 2 I 149512 175604' I ** DEFERRED Total of Deferred Pensions, If Any, Total from page 2 35736 �..,.: ;:::.:-:.:,:.:,;::.-.:>: 375231 Total Unpaid Installments, If Any, Total from page 2 0 . 0, Total of Early Vested Pensions If Any, Total from page 2 53872 2 50784 A. Accrued LiabilityThro Through Next Year 1998 total, column 7 .r..:..,-..,-:.,-,.,.•.::.-:..,.,.:,:,;<�:rr--a.�.���r;,;.:�.:-:,•r•,. 598 179 B. Accrued Liability Through This Year 1997 (total, column 5) --------------- ---> 540608 %,'<:;.-= ;;_;:;<,:.; 340608 C. Subtract Line B from Line A normal cost 57571 Fractional Years of service must be calculated to nearest full year. Do not enter liability in Columns 5 or 7 for any person who will receive entire pension during this year. Enter this pension amount on Schedule II, Section 1, Line h. For installment liability, enter amount which will be payable after end of this year in both column 5 and column 7. If interest is to be paid on unpaid pensions, add interest for 1 year in column 7. A copy of these schedules must be presented to the City Council before August 1 each year. Page I ' SCHEDULE I - ADDITIONAL MEMBERS Installments Subtotal of Unpaid installments Name Age F.D. F_ntry`s Date Month Year 1997 To End of This Year 1998 To End of Next Year Years Active Accrued Years Active Accrued Service Liability Service Liability Regular Pensions 1. M McDonough 9792 9792 I 2. J Oxborough 8400 8400 3. B Burkhalter I. Rambo, Kevin 4. Dan Corrigan 12 941 3 4180T -- 4 57201 2. Reis, Mike 4 ;:' 82 16 31416 17 34320 3, Snyder, Glenn 1`.; 921 6 1 90201 7 1 10824 4. Strese, Steve e•> 2 k: 78 20 440001 21 46200 5. Tucker, Kevin 4 `' 90 8 12672 9 14652 6. Wegner, Paul 12 93 4 5720 5 7348 7. Zwart, Harold 4 87 11 18876 12 21164 8. Anderson, Leigh 11 92 5 7348 6 9020 9. En lemann, Scott 9 '": 95 2 27281 3 4180 10. Holmes, Greg 9 95 2 27281 3 41801 11. Larson, Kevin 9: 95 2 27281 3 4180 12. Nelson, Scott r 9 I;< 95 2 2728 3 4180 13. Wardkinski, Dennis 9 .:j 951 2 27281 3 4180 14. *Kevin Kuznia 1 ]`::,, 961 1 13201 2 2728 15. *Jerry Noll 11 , 96 1 13201 2 27281 16. 0 0 0 0 17. 0 0 0 0 18..j 0 0 0 0 19. 0 1 0 0 0 20.:. 0 0 0 0 21. ;� 00 0 0 22. 0 0 0 0 23. 0 0 0 0 24.:., 0 0 0 0 25. 0 0 0 0 Subtotal of Regular pension liabilityon page 2 kfi`;ww' {s'" 149512 �:.:r.::,.;:�,.>,.,s^:.:,::��' 175604 Name Age Entry Date eparanon Date ACcrued Liability Accrue Liability Deferred Pensions 1. Joe Walsh 35736 37523 Installments Subtotal of Unpaid installments I u I v� Early Vested Pensions 1. M McDonough 9792 9792 I 2. J Oxborough 8400 8400 3. B Burkhalter 12000 12000 4. Dan Corrigan 23680 20592 Subtotal of Early Vested Pensions 53872 50784 Page 2 Schedule II Section 1 Determination of Projected Net Assets for the year ending December 31, 1997 Special Fund Assets at December 31, 1996 (See Ending Assets in Reporting Form - 1996) Projected Income to December 31, 1997 a. Minnesota State Aid $ 37,965 (Use 1996 amount, excludesupplemental) b. Municipal (independent fire) Contributions $ 26,000- c. Donations (List ) $ 0 d. Investment Income $ 0 e. Realized Gains (losses) $ 0 f. Unrealized Gains (losses) $ 50,174 g. Other income (Includes Supplemental) $ 0 (List - ) Total Projected Assets plus Income December 31, 1997 (line 1 + line 2) Projected Disbursements through end of year h. Pensions $ 0 i. Other benefits $ 0 j. Administrative $ 11,000 Total Projected Assets at end of year (line 3 minus line 4) 1 $ 507,466 2$— 114,139 3$- 621,605 4$— 11,000 5$ 610,605 Section 2 Determination of Projected Surplus (Deficit) as of December 31, 1997 Projected Assets (line 5) 6$- 610,605 Accrued Liability (line B, Schedule 1) 7$— 540,608 Surplus (deficit) (Subtract line 7 from line 6) 8$- 69,997 * Go to Section 3 if Surplus * Go to Section 4 if Deficit Section 3 Normal Cost (Line C, Schedule 1) Determination of Municipal Contribution (if Surplus) 0.00 Calculated Administrative Expense (1996 Reporting Form Adm. Exp. $ 8835 x 1.035) Less: k. Minnesota State Aid $ 37,965 1. 5% of line 5 $ 30,530 m. 10% of line 8 $ 7,000 Total Subtractions Municipal Contribution (line 9, plus 10 minus 11) If $1.00 or greater, certify to municipality before August 1, 1997, If negative number, no contribution is due. Page 3 9$— 57,571 10$- 9,144 I1 $ 75,495 12$ (8,780) . Section 4 Determination of Municipal Contribution (if Deficit) Amortization of Deficits. Year Incurred Column l Column 2 Column 3 Amount Retired in Prior Amount Left to Original Amount Years Retire 19 19 19 19 New add'1 Deficit (1997) Totals n. 0 (section 2, line 8) o. 0 (Column 3 Subtotal) P. 0 (n. minus o.) Step # 1 If line p is positive, enter line p in columns 1 and 3 of New additional Deficit (97) tine. (This is your New additional Deficit for 1997.) Step # 2 If line p is negative, reduce columns 2 and 3 according to Deficit Reduction in the instructions, page 6. Amortization of Deficit (Total from Column 1 0 X.10) 13$ 0 Total from line C, Schedule 1, Normal Cost 14S 0 Calculated Administrative Expense (1996 Reporting Form Adm. Exp. 8835 x 1.035) 15 $ 0 Subtotal Lines 13+14+15 16S 0 Less: q. Minnesota State Aid $ 0 r. 5% of line 5 $ 0 Total Subtractions (subtotal of Lines q and r) 17$ 0 Municipal Contribution (line 16 minus line 17) 18 $ 0 (If 0 or negative, there is no municipal contribution) You must certify to municipality before August 1, 1997, even if no contribution is due. Section 5 Calculation of Average special fund income per member +B+ * D ... ;-A AT Rvrrivahlr D F G Look up the result of F on the table (page 7 in the instructions) to obtain G. This is your maximum benefit this year. You cannot increase benefits beyond this amount. Page 4 A B C D E State Municipal 10% of Active Aid* Support Surplus Members Average last year 1996 37,965 26,000 1,467 30 2,181.06 2 years ago 1995 29,316 26,000 28 1,975.57 3 years ago 1994 25,999 26,000 34 1,529.38 Total column E divided by 3 $ 1895 Maximum Pension Benefit under statute $ F 3500 Look up the result of F on the table (page 7 in the instructions) to obtain G. This is your maximum benefit this year. You cannot increase benefits beyond this amount. Page 4 OFFICER'S CERTIFICATION (Form must be provided to municipal clerk on or before August 1, 1997) We, the officers of the Rosemount Firefighters Relief Association, state that the accompanying schedules have been prepared in accordance with the provisions of Minn. Stat. 69.772, subd. 4. The average amount of available financing per member of the special fund for the past three years is S 1895 . Further, benefit levels have been established in accordance with the average amount of available financing, as is required by Minnesota law. We certify that the financial requirements of the relief association municipal contribution is S 0 Q-a3j-- Signature of President -4"d Signature of Secretary 1 Signature of -treasurer special fund for 1998 purposes of required Date Date Da -1a— Date CLERK'S CERTIFICATION (FOR MUNICIPAL FIRE DEPARTMENTS ONLY) I am the clerk of !�oSgrnCtky%_7t7 . I have received the completed Office of State Auditor Schedule I & II from Rosemount Relief Association o , 1997. I have reviewed Section 2, line 8, 12 and 18 of Schedule II. If line 12 or 18 reflects a required municipal contribution, d certify that I will advise the governing municipal body at it's next regularly scheduled meeting. If the Certification of the Officers discloses that the By-laws have been amended or benefits have increased and line 12 or 18 reflect a required municipal contribution, I certify that the governing municipal board passed a resolution approving of the increase or change in by-laws. I have attached the Board resolution, if required. Date a L�, re�., Sign ture of Cle A 2DQ - Business Phone WARNING: This document must be fully completed, certified by the relief association officers, certified by the municipal clerk, and filed with the Office of State Auditor reporting form as required by Minn. Stat. 69.771. subd. 3. Failure to file this document, whether or not a municipal contribution is due, will result in ineligilibility of state fire aid, as required by Minnesota state law. Office of the State Auditor Pension Oversight 525 Park Street Suite 400 St. Paul, MN 55103 Page 5 13