HomeMy WebLinkAbout[05] Fire Relief CITY OF sr.JOSKPH Council Agenda Item 5
MEETING DATE: July 19, 2012
AGENDA ITEM: Fire Relief Report
SUBMITTED BY: David Salzer, 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 & 5 of Form SC -12 illustrate the required contribution for 2013. As can be seen on the attached
the projected municipal requirement is $ 18,830. 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 $ 18,830. When the report was first prepared, the liability indicated a municipal
contribution of over $ 39,000. Therefore, the Relief Association sent the information for the State Office
to review. They computed the information and determined the liability is actually only $ 18,830. They
also noticed that the contribution for 2012 was incorrect and an additional liability of $ 1,000 will be
required for the Fire Relief contribution. This amount will be paid through the fire budget.
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 $ 18,830 for the 2013 Budget and the additional $ 1,000
for the 2012 calendar year.
ATTACHMENTS: Request for Action
Summary Financial 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 revised liability for 2012 and the liability for 2013.
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Form SC -12 Saint Joseph Fire Relief Association Page 4
Calculation of Normal Cost
2012 2013
Total Active Member Liabilities 464,508 511,452
Total Deferred Member Liabilities 198,180 208,089
Total Unpaid Installments 0 0
Grand Total Special Fund Liability A. 662,688 13. 719,541
Normal Cost (Cell B minus Cell A) C. 56,853 I
Projection of Net Assets for Year Ending December 31, 2012
Special Fund Assets at December 31, 2011 (RF -11 ending assets) . 11 493,020 I
Projected Income for 2012
State Fire Aid (2011 aid may be increased by up to 3.5 %) D. 35,657
Municipal / Independent Fire Dept. Contributions E. 13,679
Interest / Dividends F. 15,000
Appreciation / (Depreciation) G. 20,000
Member Dues (If deposited in Special Fund) H. 0
Other Revenues I. 0
Total Projected Income for 2012 (Add Lines D through I) 21 84,336 1
Projected Expenses for 2012
Service Pensions J. 1 0 J
Member Names:
Other Benefits K. 0
Administrative Expenses L. 3,235
Total Projected Expenses for 2012 (Add Lines J through L) 3 I 3,235 1
Projected Net Assets at December 31, 2012 (Add Lines 1 and 2, subtract Line 3) 4 I 574,121 I
Projection of Surplus or (Deficit) as of December 31, 2012
Projected Assets (Line 4) 5 574,121
2012 Accrued Liability (Page 4, cell A) 6 662,688
Surplus or (Deficit) (Line 5 minus Line 6) 71 (88,567)1
Form SC -12 Saint Joseph 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 12/31/2011 Original Amount as of 12/31/2012 to Retire 1/1/2013
2003
2004
2005
2006
2007
2008
2009 165,526 122,005 165,526 138,558 26,968
2010
2011 8,360 0 8,360 836 7,524
2012 54,075 54,075
Totals 173,886 122,005 227,961 139,394 88,567
Normal Cost (Page 4, cell C) 8 56,853
Projected Administrative Expense Enter 2011 Admin Exp here: 91 3,424 J 3,544
Amortization of Deficit (Total of Original Amount column x 0.10) 10 22,796
10% of Surplus (Line 7 x 0.10) 11 0
State Fire Aid 12 35,657
Member Dues 13 0
5% of Projected Assets at December 31, 2012 (Line 4 x 0.05) 14 28,706
Required Contribution (Add Lines 8, 9 and 10, subtract Lines 11, 12, 13 and 14. If negative, zero is displayed.) 15 18,830
The required contribution must be made during 2013.
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