HomeMy WebLinkAbout4.q. Fire Department Relief Assocation Past Funding Review & Corrections . r
CITY OF ROSEMOUNT
EXECUTIVE SUbmlARY FOR ACTION
CITY COUNCIL MEETTNG DATE: September 21, 1993 -
AGENDA ITEM:Fire Department Relief Association AGEND�A SECTION:
Past Funding review and correction Consent _
PREPARED BY: Stephan Jilk AGENDA'1��►/� �
� ��V� � � -
ATTACffi�2ENT5: benefits calculations for years APP .
1992 and 1993
As part of the funding for the benefits paid to Fire epartme elief
Association members, the city is asked to annually commit to a payment from
ad valorem tax collections.
Each year the Relief association calculates the payment requested of the
city by doing a sort of "actuarial" analysis of the funds needed based on •
the approved rate of retirement, or benefits to be paid.
For several years these calculations were completed by relief inembers,
using the forms supplied by the state of Minnesota.
This last year the relief association has called upon a outside person to
conduct these analysis. In doing so the calculations were reviewed for the
past several years,
In conducting this review it was found that the calculations for several
years were in error and that the amount asked for, to be funded by the
City, was higher than needed.
The amount budgeted for in 1994 is correct.
In order to deal with this matter I sat with members of the relief
association and suggested that since the calculations for 1994 are based on
the amount of reserve in the investment account, which actually refleets
the "overage" paid by the City I would recommend that the funds that the
City paid, in excess of those needed, be left in the Associations reserve
but that the City Council take formal action to recognize the error and
allowing the funds to rema.in.
That is my recoznmendation.
Details on the calculations, as originally presented and the corrected
amounts are attached.
RFsCObmIENDED ACTION:Motion to authorize the retaining of $10,442 . in
overpayment to the Rosemount Fire Relief pension fund for the year 1992
in the Relief Association pension fund for pension payment use under the
currently approved rates.
COUNCIL ACTION:
� �
, � r
ROSfiMOUNT � � ��,
FIRFsFIGHTERS' RfiLIBF ASSOCIATION � f �
� V
Report of financial condition to end of 1992 ,!�
and requirements for 1993 � �l
SCHfiDULPs I ( (� -
CALCULATION OF SFECIAL FUND LIABILITY FOR ALL MEMBBRS AT v
PfiNSION LfiVfiL OF $1,400 PER YEAR OF ACTIVB SfiRVICfi
BNTRY TO BND OF 1992 TO END OF 1993
NO NAMfi DATB YRS LIAB YRS LIAB
----- -----------------------------------
----------------------------------------
----------------------------------------------------------------------------
1 McNSARNBY Oct-66 26 36,400 27 37,800
Z TUftBK Oct-66 26 36,400 2? 3?,800
3 LUNDfiLL 4ct-69 23 32,200 24 33,600
4 SWANSON Jun-74 19 25,816 20 28,000
5 . C STAUFFER * De�74 18 23,?72 19 Zv,816
6 . STRES$ Feb-?8 . I5 18,256 16 19,992
7 AKFsR Ap�82 11 12,012 12 13,468
8 HAEG Apr-82 11 12,012 12 13,468
9 RBIS Apr-82 11 12,012 12 13,46�
1Q KORNOYICH Sep-82 10 10,640 11 12,01
11 R AND$RSON Apr-83 � 10 10,640 11 ��'640
�� ���� ���-� � �;��� 1� 8;064
14 BURKEALTfiR Nov-85 7 6,888 8 8,064
1� EVfiNSON - Ap�86 7 6,888 8 8,064
16 GfiRRITS Jul-86 fi 5,?40 7 6,888
17 � PAULSON Ju1-86 6 �,?40 7 6,$88
18 ZWART Apr-87 6 5,740 7 6,888
19 J FsRIC&SON Oct-88 4 3,640 5 4,676
20 BAILSY Apr-89 4 3,64U 5 4,676
21 . • SMITH Apri-89 •4 3,640 5 4,6?6
22 D STAUFFER Apr--90 � 3 Z,660 ' 4 3,640 �
23 TUCRSR Apr-90 3 2,660 4 3,640
24 WIDSTROM Apr-90 3 2,660 4 3,640
25 MOONBY Aug-90 Z 1,736 3 2,660
26 TRACHST Aug-90 2 1,736 3 2,660
2? FORD Jui-91 1 840 2 1,736
28 HBLGESON Jul-91 1 840 2 1,736
29 LATZKF Jul-91 1 840 2 1,?36
30 GARDINIfiR Jan-92 1 840 2 1,736
32 S�fiR Jan-92 1 840 2 1,736
33
34
3�
36
3? * = LOA OR
39 i�D LgAVE
�0
41
42 DfiF
443� J WALSH 20 X 1400 29,400 . 30,870
4�
47 J�ANDTRS4N 44,v44 44,�44
$ M McDONOUGH
49 B SZCZFNSNIAK
50 J OXBOROUGH
ACCRUBD LIAB FOR ACTIVS MEMBfiRS 303,940 34I,880
ACCRUBD LIAB FOR DSFERRED N�MBSRS 29,400 30,870
AGCRUED LIAB FOR fiARLY VFSTfiD MBRS 44,544 44,544
ACCRUBD LIAB FOR [3NPD INSTALIMfiNTS
A) ACCRUfiD LIABILITY THROUGH 1993 41?,294
B} ACCRU£D LIABILITY THROUGH 1992 377,884 3�7,884
C) L.A - L.B; N01�IAL COST FOR 1993 39,410
SCHEDULE II
PROJECTION OF SPECIAL FUND ASSETS TO DECfiMBER 31, 1992
ASSETS AT JANUARY 1, 1992 -------------------------- 1. $ 326,?44
EXPFCTFD INCOI�S TO DfiC. 31, 1992
A State Aid $ 23,866
B Loca1 taxes 23,870 -
C Interest, etc. 22,872
D Other income 0
TOTAL OF LIN}3S A-B-C-D----- - ------- 2. 70,608
BfiGINNING ASSBTS PLUS BXPBCT£sD INCOME-- ---- ---- 3. 397,352
EXPBCTED IsXPFNSB TO DEC. 31, 1992
E Pensions $ Z$,000
F Other benefits 0
. G MSFDA or VFBA dues 0
H Administrative 875 , �
TOTAL OF LIIJfi5 S-F-G-H _ ---- 4. 28,$?5
PROJECTED ASS$TS AT DSC. 31, 1992 (L3-L4) 5: $ 36$,4?'7
AVSRAGB SPBCIAL FUND INCOhiB (nan-investment) PfiR NlfiMBER
FOR PRfiVIOUS THR.�B YFAR PBRIOD.
STATB LOCAL 1/10 ANNUAL 3 YR
AID TAXBS SURPLUS TOTAL TOTAL
1991 23,866 32,802 56,668
1990 20,900 � 25,165 46,065 •
. 1989 19,575 16,906 36,481 . 139214
3YR TOTJ3/#t�BR 46,405 31 = $1,497 AVG PBR hIDR
CfiRTIFICATION OF SFBCIAL FUND RBQUIREMENTS
This information must be certified to the goveming body of the
municipality or independent nan-profit firefighting corporatian
by August 1, 1992.
We, the officers of the Rosemount Firefighters' Relief
Association, state .that the accompanying schedules have been
prepared in accordance with the provisions of the Volunteer
Firefi ghters Relief Associatian Guidelines Act of 19�2 {including �
M.S. 69 772), and that the schedules are correct and complete
to the best of our knowle inancial reguirements of the
Relief Association's S 'a Fun __ 993 (I.ine 11,
Schedule III), are 10,944
Check her 'f no munici upport is required i—�
The average non-investment income of the special ftxnd per member
for the past three years was $ 1,497
�� President Date���
_ __ , Secretary Bate� /s_9,�j
� i �, Treasurer Date�l�Y�
_ �
SCHEDULE III
COMPUTATION OF FINANCIAL RfiQUIREi�ffsNTS FOR 1993
COL A COL B COL C_
--------------------------------
1. FSTIMATED ASSfiTS AT JAN. 1 1993 --------- 368,477
2. ACCRUfiD LIABII,ITY @ DfiC. 3� 1992 - 377,884
3. a� If L2 > L1, enter difference as DgFICIT --- 9,407
b If L1 > L2 enter difference as SURPLUS — 0
If surplus exists, enter 1/l0th of
surplus amount in CoI C & go to L6 0
Amortization of deficit(s) incurred
prior to end of 1992
YR ORIGIN. AMT RBT AMT LfiFT
INCUR. AMOUNT PRfiV TO RETIRfi
1990 120�788 1192�13 1,�v75
1991 8,702 870 7,83�2
� 9,40?
4. TOT ORIG DFFICIT 129,490 -- X .10 = 12,949
5. Deduct col 3) total from L3(a).
If col 3 < �3(a), difference is a
NBW DBFICIT. (finter in col A) — - 0
fiNTFR 1/10 OF Nfih� DEFICIT IN COL B. 0
6. INCRBASB FROM Line C SCHEDULB I ---- — 39,41U
7. fiXPBCTSD ADMINISTRAT�VE fiXPENSB, 1993 8?5
, 8. ANTICIPATED INCON�� 1993
' a Minnesota State Aid . 23,866
b 5� Interest on amt, of Line 1 --------- 18,424
c ather Income ---
TAL, Line 8, a-b-c ---- ---------- ` 42,290
9. TOTAL, COLUMN B ---- — - _=_�_53,234
10 TOTAL, COLUNi�T C --------------------------------- - 42,290
11 IF LINB 9 IS MOR$ THAN LINfi 10, TFIE
DIFFBRfiNCE IS THfi AMOUNT OF MUNICIPAL
SUPPORT RfiQUIRED IN 1993. CfiRTIFY �1
THIS AMOUNT TO CITY COUNCII, BBFORB
AUGUST 1, 1992. --- --------- 10,944
12 IF LINfi 10 IS MORB THAN LINE 9, NO
MtTNICIPAL SUPPORT IS RFQUIRED. CfiRTIFY
THIS FACT TO CITY BfiFORE AUGUST 1, 1992.
COUNCIL IS PfiRMITTFD TO FROVIDfi
FUNIIS IN EXCfiSS OF REQUIREM8NT5. --___�_____��____
These Schedules were prepared �
from information provided by.
Officers of the Relief Association.
Calculated as 12J31/92
Prepared by:
Gus Welter, consultant
1901 Meadowview Road
Bloomingtan, MN 55425
(612) 8�4-88�6
�OSEMOUNT FIREFIGHTERS RELIEF AS��CIATION PRINTED ON 4-Aug-92 PAGE 1 � �
(l/� �
�TATE FIRE AID FOR 1993 O� ,
3PECIAL FUND REPORT FOR $1400 PER YEAR OF SERS7ICE
2992 ; 2993 ;
F.D. T� END OF THZS YEAR; TO END OF NEXT. YEAR;
ENTRY YRS ACTIVE; ACCRUED ;YRS ACTIVE; AGCRUED ;
# NAME AGE DATE SERVICE ;LIABILITY ; SERVICE ;LIAHILITY ;
1 2 3 � 4 ; 5 ; 6 ; 7 ; "
� � � �
� � � �
1 MCNEARNEY ; 51 ; ].�/18/66 ; 26 ; 36400 ; 27 ; 37800 ;
2 TUREK ; 49 ; Z�/I8/66; 26 ; 36400 ; 27 ; 3?800 ;
3 LUNDELL ;46 , 10/21/69 ; . 23 ; 32200 , 24 , 33b00 ;
4 SWANSON ;48 ; 6/I7/74 ; 19 ; 25816 ; 20 ; 28aQQ ;
5 STAUFFER C. ; 44 ; Z2/17/74; 1$ ; 23772 , 19 ; 258Z6 ;
6 STRESE S. ;33 ; 2/28/78 ; Z5 ; 1825b ; Z6 ; 19992 ;
? AKER i40 i4/27J82 � Z1 � 12022 ; 12 ; 13468 �
8 HAEG � ;35 ;4/27J$2 ; 12 ; ].2012 ; 12 ; ?3468 ;
9 REIS ;33 ; 4/27 j82 ' ; 11 ; • 12012 ; � 12 ; 134�68 ;
ZO KORNOVICH ; 39 ; 9/28/82 ; ].0 ; 20640 ; 22 ; 120I2 ;
11 ANDERSON RC; 42 ; 4/26/83 ; ZQ ; 1Ob40 ; 11 ; 12012 ;
Z2 CORRIGAN ;26•; ; 4/24/84 ; 9 � ; 9324 ; 10 ; 10640 ;
l.3 TAHERY ;38 ; 10/22/85; 7 ; 6888 ; 8 ; 8064 ;
I4 BURKHALTER �27 i ].1/26/85; 7 ; 6888 � $ i 8064- �
Z5 EVENSON ; 34 ; 4/22/86 ; b ; 5740 ; 7 ; 6888 ;
lb GERRITS ;24 ; 7/22j8b ; 6 ; 5740 ; 7 ; 6$$8 ;
17 PAULSON ; 37 ; 7/22/86 ; 6 ; 5740 ; ? ; 6888 ;
18 ZWART ;35 ;4/28/87 ; 6 i 5740 ; 7 ; 688$ ,
19 ERICKSON ;34 ; 10/25/8$ ; 4 ; 3640 ; 5 ; 4676 ; �
20 BAILEY� ;22 ;5/�J89 ; � 4 ; •3b40 ; 5• ; 4676• ; .
2l. SM�ITH ;32 ; 5/2/89 ; 4 � ; 3640 ; ' S ; 4676 ;
22 STAUFFER D. ,22 ; 4/24/90 ; 3 ; 2660 ; 4 ; 364Q ;
23 TUCKER ;25 ; 4/24/40 ; 3 ; 2b60 ; 4 ; 3b4E3 ;
24 WIDSTROM ;37 ; 4j24/9a ; 3 ; 2bb0 ; 4 , 3640 ;
25 MOONEY ;28 ; 8/28/90 ; 2 ; 2736 ; 3 ; 2660 ;
26 TRACHET ; 37 ;8/28/90 ; 2 ; 1736 ; 3 ; 2660 ;
Z7 FORD ; 30 ; 7/8/9? ; 2 ; 1736 ; 3 ; 2660 ;
28 HELGESON ;35 , 7/8/91 ; 2 ; Z736 ; 3 ; 2fb0 ;
29 HEI�TNEY ;27 ; 7/8/9� ; 2 ; 173b ; 3 ; 2b60 ;
3d LATZKE ;27 , 7/8/91 ; 2 ; 1736 ; 3 ; 2664 ;
3l. GARDINIER ;27 ; 1/22/92 ; 1 ; 840 ; 2 ; Z735 ;
32 SEILLER ;29 ; I/22J92 ; 1 ; 840 ; 2 ; Z�3b ;
33 SNYDER ;23 ; 1/22J92 ; Z ; 840 ; 2 ; 1736 ;
3 4 ..
35
TOTAL # OF MEMBERS
.33 308056 � 34?872
JEFERRED PENSIONS, (INTEREST-COLUMN 7} 2440Q 30$70
I'OTAL OF UNPAID INSTALLMENTS, (INTEREST 0 0
iOTAL OF EARLY VESTED PENSIONS 44544 44544
A. TOTAL ACCRUED LIABILITY TO END OF NEXT YR. ].993 (COLtTI�T 7) 423286
�. TOTAL ACCRUED LIABILTY TO END OF THI 382000 38200�
C. SUHTRACT LINE B. FROM LINE A. (NORMAL COST; ENTER FiERE AND 4}.286
�OSEMOUNT FIREFIGHTERS RELIEF ASSOCIATION PRINTED ON 4-Aug-92 PAGE 2
3CHEDULE II
2 . ASSESTS AT JANUARY 1, 1992 (TFiIS YEAR) 326744
2. ANTICIPATED INCOME TO END OF THIS YEAR - -
a) MINNESOTA STATE AID 25059
b) RECEIPTS FROM LflCAL TAXES 328D2
c1 INTEREST ON INVESTMENTS 22b7?
d) OTHER INCOME p
TOTAL OF LINES a-b-c-d 8[}538
3. BEGINNING ASSESTS PLUS ESTIMATED INCOME (1+2) 4072$2
4. ESTZMATED DISBURSEMEN'PS THROUGH END OF THIS YEAR
a) PENSIONS 28000
b) OTHER BENEFITS p
c} MSFDA OR VFBA DUES, IF ANY 0
d) ADMII�FISTRATISTE AND �VERHEAD 875
TOTAL OF LINES a=b-c-d 2$$75
5. PROJECTED ASSETS AT END OF THIS YEAR (22/31/92 378407
6. CALCULATION OF AVERAGE SPECIAL FUND INCOME PER MEMBER
STATE CITY SURPLUS
AID AID
� 2992�• � 21945 �32802 0 �
1990 2157$ 16906 0
2989 29575 4240 d
T�TALS 63098 58948 0
TOTAL OF ALL THREE I22046
DIVIDE BY 3 EQUALS 40682
DiS7IDE HY # �F MEMHERS , AVERAGE AMOUNT PER MEM 1233
�QSEMOUNT FIREFIGHTERS RELIEF ASSOCIATIDN PRINTED QN 4-Aug-92 PAGE 3
3CHEDULE III COLUMN A ; COLUMN B ;COLUMN C
� ,
� ,
I . ASSESTS FROM LINE 5, SCHEDULE II 3?$407 ; ;
► ,
� �
? ACCRUED LIABILITY TQ END OF THIS YEAR (H. SCH 3820'00 ; ;
� �
, ,
3. a) IF LZNE 2 IS MORE THAN LINE 1 {DEFICIT) -3593 ; ; - _
b. ) IF LINE 1 ZS MORE THAN LINE 2 (SURPLUS} 0 ; ;
�NTER 10$ OF SURPLUB AM�UNT � � p
� �
� ,
�. AMORTIZATION OF DEFICiT PRIOR TO END OF LAST YEAR ; ;
YEAR ORGINAL RETIRED LEFT Tt� ; ;
INCURRED AMOUNT AMOUNT RETIRE ; ;
?98b 86750 60725 26025 ; ;
2988 37038 18519 18529 ; ;
199a 220788 3b236 84552 ; ;
T�TALS . 244576 31548Q 129096 � ,, ;
20� OF ORGINAL AMDUNTS ; 24458 ;
� ,
� �
5. NEW DEFICIT 0 ; i
10� QF NEW DEFICIT � p . �
� ,
n. INCREASE FROM LINE C, SCHEDULE I ; 412$6 ;
� ,
7. ESTIMATED EXPENSES FOR 2993 {OTHER THAN PENSIQNS) ; 875 ;
� ,
� ,
$. ESTIMATED INCOME FOR 2993 ; �
a} MINNESOTA �STATE AID . � 2C3Z� � . �
� b) 5a INTEREST ON AMOUNT OF LI�E 1., � 18920 � ; ,
c} OTHER INCOME, DQ NOT INCLUDE CITY 0 ; ;
TOTAL OF a-b-c ; , 45232
� ,
9. TOTAL OF COLUMN B. ; 66619 ;
� ,
� ,
10. TOTAL OF COLUMN C. ; ' 45232
-_
lI. IF LINE 9 IS MORE TFiAN 20 = CITY SUPPORT ; 213$6 ; ,
I
LIST OF EARLY VESTED
J. ANDERSON 17952
M. McDONOUGH 9792
B. SZCZENSNIAK 8400
J. O%BOROUGH 8400
TOTAL EARLY VESTED 44544 �
LIST OF DEFFERED. PENSIONS INTEREST TOTAL 1993
J. WALSH 29400 Z470 30870