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Home My WebLink About[08] Fire Relief ReportCTTI' OF ST.,1115N:1'H Council Agenda Item U MEETING DATE: August 6, 2009 AGENDA ITEM: Fire Relief Report SUBMITTED BY: Brian Orcutt, President, St. Joseph Fire Relief Association BOARD/COMMISSION/COMMITTEE RECOMMENDATION: PREVIOUS COUNCIL ACTION: Annually the Council receives the report. BACKGROUND INFORMATION: The Fire Relief Association is a separate entity from the St. Joseph Volunteer Fire Department. The St. Joseph Relief Association manages the retirement for the volunteer Fire Department. The Mayor and Administrator/Clerk are financially responsible and attend the quarterly meetings. Annually the Relief Association must present the Council with a financial statement illustrating the fund status and required municipal contribution. This fund is audited separately from the City Audit and the Relief Association is responsible for the independent audit. like the City Audit, this information is filed with the State of Minnesota. Page 4 & S of Form SC-09 illustrate the required contribution for 2010. As can be seen on the attached the projected municipal requirement is $ 20,890. Due to the volatility of the market, interest earnings are down and the department has had expenditures due to retirement. As you can see on the included schedules, the amount is based on projections so the amount could be decreased but it will not be greater than the $ 20,890. The Fire Board will be discussing this matter at the meeting on Wednesday evening and we can report on Thursday. The Council does not need to approve this report; rather they must accept the report authorizing the administrator to execute the same. This report is a mechanism to assure that Councils are aware of the condition of the retirement fund and have advance notice of any required contribution. BUDGET/FISCAL IMPACT: Inclusion of $ 20,890 for the 2010 Budget. ATTACHMENTS: Fire Relief Report REQUESTED COUNCIL ACTION: Accept the Fire Relief Report and authorize the Administrator to execute the Fire Relief Report indicating that the Fire Relief has presented the report to the City Council identifying the liability for 2010. Form SC-09 Saint Joseph Fire Relief Association Calculation of Normal Cost 2009 Total Active Member Liabilities 601,b68 Total Deferred Member Liabilities 148,667 Total Unpaid Installments 0 Grand Total Special Fund Liability A. 750,335 Normal Cost (Cell B minus Cell A) Projection of Net Assets for Year Ending December 3l, 2009 Special Fund Assets at December 31, 2008 (RF-08 ending assets) Projected Income for 2009 State Fire Aid (2008 aid may be increased by up to 3.5%) Municipal /Independent Fire Dept. Contributions Interest /Dividends Appreciation / (Depreciation) Member Dues Other Revenues Total Projected Income for 2009 (Add Lines D through I) Projected Expenses for 2009 Service Pensions Member Names: Other Benefits Administrative Expenses 2010 649,260 156,101 0 805,361 D. 35,454 E. 3,000 F. 15,000 G• 35,000 H• 236 1. ~• 57,600 K• l ,000 L• 3,396 Total Projected Expenses for 2009 (Add Lines J through L) Projected Net Assets at December 3l, 2009 (Add Lines 1 and 2, subtract Line 3) Projection of Surplus or (Deficit) as of December 31, 2009 Projected Assets (Line 4) 5 575,252 2009 Accrued Liability (Page 4, cell A) 6 750,335 Surplus or (Deficit) (Line 5 minus Line 6) 7 (l 75,083) Lowell Page 4 1 548,558 2 88,690 3 61,996 4 575,252 Form SC-09 Saint Joseph Fire Relief Association Fage 4 -Cont. Calculation of Required Contribution Deficit Intorroation -Original Amount Retired Year ]ncurred Ori 'nal Amount as of 12/31 /2008 Deficit information -Adjusted Amount Retired Amount Lefl Ori 'nal Amount as of 12/31 /2009 to Retire 1 /1/20 ] 0 2000 2001 2002 2003 2004 2005 2006 102,597 82,780 102,597 93,040 9,557 2007 2008 2009 165,526 165,526 Totals l 02,597 82,780 268,123 93,040 175,083 Normal Cost (Page 4, cell C) 8 Projected Administrative Expense Enter 2008 Admin Exp here: 9 3,386 Amortization of Deficit (Total of Original Amount column x 0.10) ]0 0% of Surplus (Line 7 x 0.10) 11 State Fire Aid 12 Member Dues 13 5% of Projected Assets at December 31, 2009 (Line 4 x 0.05) 14 Required Contribution (Add Lines 8, 9 and 10, subtract Lines 11, 12, ]3 and 14) 15 The required contribution must be made during 2010. 55,026 3,505 26,812 0 35,454 236 28-7ti3~ 20,890 db ~ ~ o 5 ~ ~ N 5. `" a T ~ c ~ ~ ry ~ ~ ~. ~ ~ ~ °cry V1 O c ~ Fi E. ~ 0 ~b o a .,y ~ o N N ~^ O a A '^~ ~ ~ ~ ~ U C N °' N ~_. 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"~ 5~ I ~ N ~ = O ' `I• ~ ~ d. ~ i ~ ~ O. ? ~ ~ "~ (D 1 w 1 ~ ~ ~ to ~! d w L ~~ )moo ~ : i N ~. ~ H ~ ~ ~ ~ ~ j7 ~ L1. ~ c a C o b w r a `, ~ ~ m °- y ~ S ti ti 3 G S r 5 i 7 's D s u i 0 7 3 D h T D n i~ I 0 0 ~, h i L ~ ~ ~ ~ m o ,i ~ ~ ~ ~~ o a ~ N a ° w o v° a° ~c .; o ~~ ]. N 0 00 0 '~/ ti ~ w ~ Q S R' o. w n R o ~ o, o . -_~ OQ ~ ~ ~ ~ ~. .?' ~ < ` 1 H w .~ ~ S 0 o ~ ~ ~ °, ~ < '~ w ~ ~ ~. o' °- ry o' ~• ~x w a' c. C 'O b a c V V N a m mm~ c N -j C Q b ~ A ~ a ~ w ca C C ~ B A y a 0 A A ~ O A ,o M ~ p' a A m ~ ~ a C a c '7 w e ~° 7 A ~ ~ o' n ~ o 1 ~ o A ~ ~ m a o O a n C ~o m e' O h A S A y O 0 m A 2009 Maximum Benefit Worksheet (MBW-09) Plan Name: Saint Joseph Fire Relief Association Plan Type: Lump Sum Enter data in columns A, B, C and D for each year requested. A State Fire Aid (Received or Receivable) B Municipal Contribution C ] 0% of Surplus * D Active Members in Relief Association _ E Per Year Average [ (A + B + C) / D] (From RF-08) (From RF-08) (SC-08 or Actuarial) (From RF-08) 2008 35,454 3,000 26 1,479 (From RF-07) (From RF-07) (SC-07 or Actuarial) (From RF-07) 2007 40,667 7,121 0 29 1,648 (From RF-06) (From RF-06) (SC-06 or Actuarial) (From RF-06) 2006 47,012 3,879 0 29 1,755 u aencn ror me year, Leave olanx. Average available financing per active member for the most recent 3-year period: 1,627 (sum of column E divided by 3) Maximum Lump Sum Benefit Level under Minn. Stat. § 424A.02, subd. 3 3,000 Relief Officer Certification On or before August 1, the average amount of available financing per active member for the most recent three-year period was calculated in accordance with Minn. Stat. § 424A.02, subd. 3, and certified to the governing body of the applipable qualified municipality. Signature ~~ Officer Date Keith Simon Treasurer First Name Last Name Title Form RF-OS Saint Joseph Fire Relief Association Section 4 -Signatures ief and Municipal Certification We certify that to the best of our knowledge and belief, the information presented in /his repor! is true and aceurale: . i , l v. ,, ,, Sign ore: RELIEF ASSOCIATION OFFICER ,d' /; ~ p. First Name ruv!C1 Last Name 1 i~1~~St~ Title ~.~ ~ a ~ - DATE Signature: MUNICIPAL CLERK DATE BUSINESS TELEPHONE (If the relief association is affiliated with an I»dependent Frrefighling Corporation serving more than one community, the municipal clerk for the largest community served by the frre department mus! sign.) uditor or Accountant Certification Associations with Assets and Liabilities LESS THAN 5200,000 ~~~~I ' .--~__ An independent accountant may certify the reporting farm below or, if qualified as a licensed or certified public accountant, provide a separate attestation report by March 31, 2009. Pursuant to Minn. Stat. § 69.051, subd. la(b), 1 have examined the preceding statement of revenues, expenditureslexpenses and total net assets (including investment information) of the Special Fund and the General Fund, and hereby certify this financial information in preceding Sections 2 and 3, is presented in conformity with Minn. Slat. § 69.051, subd. 1 a(a), except if noted on the signed, dated sheet attached. First Name Last Name NAME OF AUDITOR /ACCOUNTANT (Type) Street Address ADDRESS OF FIRM (type) Signature: AUDITOR /ACCOUNTANT FAX NUMBER EMAIL ADDRESS Associations with Assets or Liabilities of At Least $200,000 NAME OF FIRM (Type) City State ZipCode DATE BUSINESS TELEPHONE Pursuant to Minn. Stat. § 69.051, subd. l(3), a certified public accountant, public accountant, or the state auditor must attest to, and submit, audited financial statement of the relief association to the Office of the State Auditor. The Reporting Form and audit report must be submitted by ]une 30, 2009.