5.10. SR 07-24-1995,.~,r ~~ ITEM 5.10
~~
MEMORANDUM
ity of ~~
l~ u TO: Mayor & City Council
Rover ~
FROM: Lori Johnson, Assistant City Administrator ~~~ ~"'
DATE: July 24,1995
SUBJECT: Fire Department Requests
Before August 1 of each year the Fire Relief Association is required to certify its benefit
level and required city contribution to the City Council. In the past the Relief
Association annually requested an increase in the per year benefit; however, the benefit
requested never required a city contribution. This year the situation is reversed.
The Relief Association is not requesting an increase in the per year benefit for 1996. The
1995 benefit is $2,350 per year of service up from $2,200 in 1994; the 1996 benefit will
remain at $2,350 per year of service. Even though the Relief Association is not
requesting an increase in the benefit level, a city contribution is required in 1996. The
Schedules I, II, and III as prepared by Gus Welter, consultant to the Relief Association,
indicate that a city contribution of $1,981 will be required in 1996.
• In addition, the State Auditors Office has notified the Relief Association that the
schedules filed for 1995 were incorrect. After making the necessary corrections, the city
has a required contribution of $663 in 1995. The 1995 Budget included a $17,500
contribution to the Relief Association which can cover the required contribution. The
only mandatory contribution in 1995 is $663.
Finally, if the Council contributes an amount other than $17,500 in 1995, the minimum
city contribution for 1996 will change. The Schedules for 1996 were prepared assuming
a 1995 city contribution of $17,500. If the city contributes less that $17,500, the
required contribution increases for 1996. For example, if the city contributes just the
mandatory contribution in 1995, the 1996 minimum contribution increases to
approximately $3,675. If the city contributes more than $17,500, the minimum
contribution decreases.
Action Re~ruested
The Council is asked to accept the attached Schedules I, II, and III submitted by the Elk
River Fire Relief Association and approve the minimum required contribution for 1996.
This action should be done by motion.
•
13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330 • (612) 441-7420 • Fax: (612) 441-7425
J U L- 2 6- 9 5 T H U 1 5 4$ ELK F2 I~ E R M A C H
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P 02~C~4
ELK RIVER
FIREFIGHTERS' RELIEF AS SOCIATION
Raport of financial condition to end of 1995
and rcquirementE for 1996
SCHEDULE I
CALCULATION OF SPECIAL FUND LIABILITY FOR ALL HEMBERS AT
PENSION LEVEL OF 52,350 PER YEAR OF ACTIVE SERVICE
.ENTRY TO END OF 1995 TO END OF 1996
NO NAME GATE YRS LIAB YRS LIAB
sssssssssssssas~rssssss:ssasassaaspsssssss ssssssss ssssssasssss~ssss~sassssssssasss:
1 30 70,500 ~ 31 72,850
2 30 70,500 31 72,850
'~ {D 3 28 65,800 29 68,150
~ 4 28 65,800 29 b8, 150
5 23 .54,050 24 5b, 400
6 -""' 29 43,334 20 47,000
7 18 39,903 19 43,334
e 17 36,_650 18 39,903
9 17 36,660 18 39,903
10 16 33,558 17 36,660
11 15 30,644 16 33,558 '
12 Y5 30,644 16 33,558 '
13 14 27,814 15 30,644 ;
14 14 27,824 15 30,644
15 12 22,607 13 25,1.45
16 12 22,607 13 25,145 •.
17 11 20,163 12 22,607
18 11 20,163 12 22,607 ,
19 11 2-0,163 12 22,b07
20 8 13,536 9 15,651
2T B .13,536 9 15,ti51
22 8 13,536 9 15,551
23 6 9,635 7 11,552
24 6 9,635 7 ii,5b2
25 6 9,635 7 11,552
26 6 9,63.5 7 1.1,562
27 3 4,465 4 6,110
28 3 4,465 4 6,110
29 3 4,465 4 6,110
30 3 4,465 4 6,110
31 3 4.,4.65 4 6,110
32 1 1,410 2 2,914
33 1 1.,410 2 2,914
34 1 1,410 Z 2,914
35
36
37 •
3E
39
40
41
42 GEF
43 C O 4/75-4195 20 X 2350 47,OQ0 47,0?0
44
45
46 E.V.
47 P LeF 10/51-10/93 .54X2100Xi1 14,784 14,784
48
49
50
ACCRUED LIAB FOR ACTIVE MEMBERS 845,107 924,248
ACCRUED LIAB FOR DEFERRED 11EP7BER5 47,000 47,04
Ac:CRUEU LIAB FUR EARLY VESTED t7BR5 14,784 14,784
ACCRUED LIAB FOR UNPU INSTALLMENTS
A) AC~~RUED LIABILITY THROUG?i 1996 985,992
B) ACCRUED LIABILITF THROUGH 1995 905,851 906,891
C} L.A - L.B; NORt4AL COST FOR 1996 79,181
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2 5 4 8 E L K R I V E R
SrHEU:1:.E ZI
MAC H
P _ 0~~'E~4
SecLian 1. PROJECTION OF SPECIAL FUND ASSETS TO ULCEHBER 31, 1995
ASSETS AT JANUARY 1, 1495 (12/311941------- 1. S 759,x40
EXPECTED ZNCOtiE TO DECEMBER J1, 1495
A) Minn. State Aid S 41,526
B) City Contribution 17,540
C) FundraiEera, etc. 0
D) Interest, Inv. Incame 45,593
E) Realized Gains (losses) 0
F) Unrealized (losses) 0
G} Other income (St Refund) 1,000
TOTAL OF LINES A TAROUGA G----------------- 2. S 105,619
BEGINNING ASSETS PLUS EXPECTED INCOME------ 3. S - 865,509- '
EXPECTED EXPENSE TO DECEMBER 91, 1945
H) Pensions S 0
I) Other benefits 0 ~~`
J) Administrative ----1_b?0- ~~ c!~"
TOTAL OF LZNES A-I-J------------- 4. $ ~ „~ ~ 7 w
PROJECTED ASSETS AT 12/31/95 (L.3 - L.4) 5. S 8 - 9 ~P Z 8w J
rr«rrrrrrrrrrrrrrrrrr.rrrrrr.rrrrr.rrrrr.r.~:-rrrrrrrr:rrrrrrr~rr.rr,..rr~:Prr•-•r~:,
6eetion 2. Determination of projected SURPLU6 or DEFICIT E 12/31J95.
~~Z~~~
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Projeeted Assets (Line S) 6. S t
.B~c3;8
9
Accrued Livability (Line B, Schedule 1f 7. S 90d,891
IE L.6 > L.7, enter difference: SURPLUS 8a. S -0
If L.7 > L.d, entaz difference: DEFICIT eb. S 43 t~/~ L,~~
'*Go to Section 3 if SURPLUS '•' To Section 4 if DEFIC IT '
rrrsrrrrrrrrsrrrrrrsrrsrsrrsrrrrrrsrrrsrrrsssrsesssassssssssrsssss rrr sssssrrrr.mrsss~•
Settian 3. Determination of 199d tiunic.ipal Contribution (if SURPLUS)
• Normal Cost (line C, Schedule 1) ---------- 9. S 0
Calculated Administrative Erpenae---------- 10. 5 0
Leas:
R) Minn. State Aid S 0
L) 5$ of Line S 0
M) l0E of Line 8e 0
Total Subtract.ions --------------- il.
- S
-
- 0
-
1996 City Contribution if SURPLUS exists (L. 8x1 12 S 0
rrr..rr:rr:rrrrrrrrrrr=:rrr:::rrrrr=~.r:rr.rrrrrrsrr=rrrr::
Section 4. Determination of Municipal Contributi :r.e:rrrrr.:rrrr..-r-rr::.
on (if DEFICIT)
.Amortization of deficit{s) incurred
prior to end of 1995
YR ORIGIN. AMT RET __ AN.T .LEFT
.INCUR. AMOUNT PREY TO RETIRE
(lp (2) (3)
1998 x,457 1,694 6,773
1994 23,744 2,374 21,370
19 0
7otala 32.,211 4,068 28,143
TOT ORIG DEF 32,211 ----------- X .10 - --- 13x. S 3,221
Deduct col {31 total from L. 8b.
If col 3 < L.8b, difference is a
$
(
NEW DEFICIT. S i 29 X .10 r--- --- 13b. S ~
5
/SYY~
Normal Cost (Lind C, Sch. 1) -------------- la. S 79,101
~
Calculated Administrative Expen:.c ------------ ----- I5. $ ~ 7 f1
~~'
---------
Total Costs ------- 16. --
S -
ES~y44' .~{o ~h~
~
LESS: --
• ----
N) Minn. State Aid - - S 41,525
1
7
O) 58 of Line 5---------- 5 -+3;T41 c}Ijj~
7
S u
-717 $=f~(
B-C
~
Total Subtractions --------- ----------------- .
----- 1 .
,
1996. City Contribution, if DEFICIT cxisis (L.Bbf ----- 18. S ~~~1~
JIJt_ -2E~-9~ T HI.I 1 5 49 ELK R Z VER MAC H P _ E~4iC)4
AVERAGE SPECZAL PUND INCO!fiE (non-inves'..ment) PER tiEMbER
T'UR PREVIOUS THREE YEAR P ERIOD.
ACTV YEAR STATE LOCAL 1110 ANNUAL 3 YR
FF AID TAXES SURPLUS TOTAL TOTAL
• 32 3994 41,526 19,000 60,526
34 -.1993 38,514 19,000 57.,514
35 1992 38,590 19,000 57,590 175,630
34
3YR TOTf3/~MBR 58,543 34 ~ 51,739 AVG PER D1fsR
Max pension (Avg. X 1.651 S3,217 ..
sa sssssssasssssssssassa sssssssssasaassssssa sssssssssssssasasssss~~ass ssstsssssr
CERTIFICATION OF SPECIAL FUND REQUIREMENTS
This information must be certified to the clerk of the municipality or
to the independent non-profit firefighting corporation by 08/01/95.
we, the officers of the Elk `River Pizefighters' Relief Ar•aociation,
state that the accompanying achedule~ have been prepared in accordance
with the provisions of the Atinn. Stet. Ch. 69.772, subd 4. The average
amount of available financing per active member for the past three years was
51,739 Further, benefit levels have been established in accordance:
with the average amount of available financing, as required by law.
The minimum city contribution for 1996 is: SB47
President Date__-_____~________
______ ___~___, Sccrctazy Date_
---------•----s~.~_. TrEasurer Dat•t-------
• scss:asssssaassa ssssssssasss: ssssa sasssssa ssssssa csssssssssa as arcs:asasas¢s
These Schedules were prepared Prepared by:
from information provided by Gus Walter, consultant
Officers of the Relief Association 1901 Meadowview Road
and State Auditor Reports. Bloomington., MN 5542.5
Calculated as 12/31/95 (612) 854-8856
s saaasass s:sas ss r:.s:s r.s a s a s e a ¢s ass s ss s ss a :s s.ss a s :s : s s sssa a s a s s s s s ssa z s a x--~ xs x= m es si
r_LERK'S CERTIFICATION
I am the-clerk (ar other. designated official) of the city of Elk River.
I have received the completed Office of the btat.e Auditor Schedules 16 IZ
from the Elk River Firefight.era Relief Association on __ ____, 1995.
I have reviewed Section 2, lines 8, 12, and 18. If line 12-or line 18
reflects a required municipal contribution, I certify that I will
so advise the municipal governing body at its next regularly scheduled
meeting. If the Certification of the Officers discloses that the Bylaws
have bean amended to provide a benefit increase, I certify that the
municipal governing body has passed a resolution which approves the change
in the .bylaws. A copy of the resolution is attached (if required).
Date------- -'----' 1?95 Signature -------•-----------------
• Phone f Title City Clerk
(Note: Failure to file this document in a timely manner., whether or not
a municipal contribution ie required, will result in loss of st.a*_.e aid.)
ITEM 5.10
of
MEMORANDUM
River
TO: Pat Klaers & City Council ,~'/
FROM: Bruce A. West, Fire Chief
/~"~
DATE: July 21,1995
SUBJECT:. City Contribution to the Elk River Fire
Department Relief Association
I have been requested by the Elk River Fire Department Relief Association that the Mayor
and City Council reinstate the City's contribution to the relief association to prior years
level of $19,000. The budgeted amount for the 1995 contribution was placed at $17,500.
Randy Sykes, a member of the Elk River Fire Department and Elk River Fire Department
Relief Association, will be present at the July 24, 1995 Council meeting to answer any
questions the Mayor and City Council may have on this issue. I will also be present at the
City Council meeting of July 24 to answer any questions directed by the Council.
• A brief history of the City contribution to the Relief Association shows that the City's
contribution at $19,000 dates back to 1991 through 1994. One of the reasons for the
possible reduction to $17,500 was due to the fact that the level of firefighters at the start
of 1995 was at 32. The City authorized returning to the allotted 35 members which was
attained with the hiring of three firefighters in April of 1995. A value placed of
approximately $550 per firefighter and having 3 less firefighters, would show some cause
for the possible reduction to the $17,500 budgeted amount for 1995. A reminder to the
Mayor & City Council is that I am not a member of the Elk River Fire Department Relief
Association. I am making this request to the City Council on behalf of the Relief
Association. The Relief Association is requesting that the level of $19,000 for City
contribution be re-instated as has been paid from 1991 through 1994. Any further
questions on this issue please give me a call.
•
13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330 • (612) 441-7420 • Fax: (612) 441-7425