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HomeMy WebLinkAbout[04h] Fire Relief Council Agenda Item 4h MEETING DATE: July 18, 2016 AGENDA ITEM: Fire Relief— Requested Action: Acknowledge the 2015 Report indicating a $ 0.00 liability for the 2016 Relief Contribution. 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. This year the Fire Relief Association changed auditors and engaged KDV,the same auditors the City uses. The change provided for quicker turn around and ease. Page 4&5 of Form SC-12 illustrate the required contribution for 2015. As can be seen on the attached the projected municipal requirement is$ 0.00. The Fire Board has previously agreed to provide a $ 3,000 contribution when the City does not have a liability. 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. The reports are due to the State prior to Cities preparing their budget so the shortfall can be included. Due to retirements and a sluggish market the liability has not changed much over the last three to four years. BUDGET/FISCAL IMPACT: Inclusion of$ 3,000 for the 2017 Budget 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 liability for 2016. This page intentionally left blank Form FIRE -15 Saint Joseph Fire Relief Association OFFICE OF THE STATE AUDITOR Plan Information Ylre Department Affiliation & Member Counts The Fire Relief Association is associated with: A municipality which has a fire Enter the appropriate number: 30 Active members in the Relief Association 3 Inactive members who are deferred 0 Other inactive members (medical and other leave) 33 Total Active + Inactive with Relief Association 1 Lump sum service distributions Lump sum survivor distributions Lump sum disability distributions Monthly benefit recipients (retired, disabled and survivor Plan Type & Benefit Information Plan Type: Defined Benefit Lump Sum Benefit payable for each year of service $ 1,800 Vesting & Ancillary Benefits (must be stated in bylaws) Years required for full vesting in: Partial Vesting in Bylaws? Years required for partial vesting in: 20 Fire Department Yes 1 10 IFire Department 20 Relief Association 1 10 Relief Association 50 Minimum age to receive retirement benefits Amount Per Short-term Disability Long-term Disability 1,800.00 year of service Survivor Benefit 1,800.00 year of service Bonding. Bvlaws & Resolutions Yes Is the Treasurer bonded for at least 10% of assets? (Amount of bond need not exceed $500,000) $ 250,000 Amount No Is the Secretary bonded? No Did you amend your bylaws for 2015? No Did you modify your benefits for 2015? Yes Has your association completed its Annual Renewal as a Nonprofit Corporation with the Secretary of State? Page 2 of 28 Form FIRE -15 Saint Joseph Fire Relief Association OFFICE OF THE STATE AUDITOR Plan Information Investment Forms & Information the Relief Association collected and retained the following information: ;e retain and be able to submit individual account or portfolio data to the Office of the State Auditor on request.) Yes Signed Broker Certification form(s) (BC -1)? Yes Signed Statements of Economic Interest? Yes Signed Investment Business Recipient Disclosure Form? The market value of each investment account and investment portfolio at the beginning of the calendar year and for each Yes quarter pursuant to Minn. Stat. § 356.219, subd. 3(g)? The date and amount of each injection and withdrawal to each investment account and investment portfolio pursuant to Yes Minn. Stat. §356.219, subd. 3(g)? No Did the Relief Associations amend its investment policy statement in 2015? Page 3 of 28 Form FIRE -15 Saint Joseph Fire Relief Association OFFICE OF THE STATE AUDITOR Investments Special Fund Special Fund General Fund Accrued Interest Cash (including all non-interest bearing accounts at banks, credit unions or thrift institutions ) 50,690 Certificates of Deposit (time deposits) Other interest bearing accounts (at banks, credit unions or thrifts, including Money Market Accounts) 2,500 Treasury Bills Treasury Bonds & Notes Domestic Stock International Stock Corporate Bonds (domestic) Government Bonds (domestic) Corporate and Government Bonds (international) Venture Capital, Resource or Real Estate Limited Partnerships State Board of Investment (SBI) Bond Fund State Board of Investment (SBI) - U.S. Stock Index Fund State Board of Investment (SBI) U.S. Stock Actively Managed Fund State Board of Investment (SBI) Balanced Fund State Board of Investment (SBI) - Broad International Stock Fund State Board of Investment (SBI) Money Market Fund Mutual Funds and Exchange Traded Funds: List mutual funds (including Money Market mutual funds) and exchange traded funds held at 12/31/2015 in the next tab. 698,494 0 0 Description Other Other Other Other Other Total Investments at 12/31/2015 1 700,994 50,690 0 Page 4 of 28 List mutual funds and exchange traded funds below Amount as of 12/31/2015 Special Fund Ticker Symbol Fund/Account Name Special Fund General Fund Accrued Interest AGTHX American Funds Growth Fund of Amer A 71,085 MGOAX Victory Munder Mid-Cap Core Growth A 49,359 TPINX Templeton Global Bond A 41,522 PQIZX PIMCO Dividend and Income Builder A 53,354 AZNAX AllianzGI Income & Growth A 75,713 CAIBX American Funds Capital Income Bldr A 60,478 AMECX American Funds Income Fund of Amer A 85,184 FKINX Franklin Income A 19,873 GCASX Gabelli Small Cap Growth A 54,955 ICPAX Integrity Williston Bsn/Md-N Amer Stk A 47,850 NEFRX Loomis Sayles Core Plus Bond A 106,929 ABALX American Funds American Balanced A 32,192 FIRE -15 Saint Joseph Fire Relief Association OFFICE OF THE STATE AUDITOR Financial Information A. Total Net Assets as of December 31, 2014 Revenues - 2015 Special Fund General Fund 742,098 1 52,964 Fire State Aid (regular fire state aid and supplemental state aid) State 10% Supplemental Reimbursement 52,164 1,000 ' �� x Municipal/Independent Fire Department Contributions 3,000 Member Contributions/Dues 196 Training Interest & Dividends 36,261 77 Appreciation/(Depreciation) in Fair Market Value (Realized or Unrealized) (78,090) Investment Performance Evaluation LESS: Investment Management Fees (150 ) 19,620 Fundraising Revenue 0 10,966 27,235 Outside Donations Click here to enter Outside Donations 0 1,000 Other Income Click here to enter Other Income 0 0 Total Revenues 14,185 28,312 Benefit Expenditures - 2015 Service Pensions - Retirees 41,168 Service Pensions - Monthly (including monthly survivor and disability benefits) Service Pensions - Survivors Service Pensions - Disabled Illness or Short-term Disability 1. Total Benefit Expenditures 41,168 Administrative Expenditures - 2015 Salary 1,225 Conventions & Meetings Dues 196 Training Professional Fees (Actuarial, Audit and Legal) 6,700 Bond Investment Performance Evaluation Fundraising Expenses 19,620 Other Expenditures Click here to enter Other Expenditures 0 10,966 2. Total Administrative Expenditures 8,121 1 30,586 C. Total Expenditures (1 + 2) Transfers (Can be made from General Fund to Special Fund only) Total Net Assets at December 31, 2015 (A + B - C +/- D) Page 9 of 28 49,289 1 30,586 706,994 1 50,690 Form FIRE -15 Selected Assets and Liabilities Saint Joseph Fire Relief Association OFFICE OF THE STATE AUDITOR Financial Information Special Fund General Fund Accounts Receivable (Other than interest income receivable) 6,000 Other Assets Accounts Payable or Other Liabilities Accrued Liability - 2015 648,685 n Page 9 of 28 Other Items Type Description Special Fund General Fund Outside Donations Donation from St Joseph Mutual Insurance 1,000 Other Expenditures Licenses and permits 282 Other Expenditures Equipment and Supplies 5,060 Other Expenditures Conventions and Meetings 5,468 Other Expenditures Flowers 156 Page 10 of 28 u y O H 00 N 0 0 _M N 9 h i„ 0 Q a o tn H o d x A � 00 v o d V � a 0 Ga o ;cp V M N .q C OD y V q ra O a A N � N eq A Q\ q rr W � ra h 0 N y N i N A 00 N w 0 W) r. a) ao A, Form FIRE -15 Saint Joseph Fire Relief Association OFFICE OF THE STATE AUDITOR Total market value of Special Fund assets at the SBI (12/31/15) Cash equivalent assets not invested through the SBI (12/31/15) Expected expenses for first six months of 2016: Administrative Benefits Total expected expenses for first six months of 2016 Are Market Values and Cash Flows required to be completed? Yes E 2,500 irket Values: Wages 1/13/2015 First Quarter Beginning Value 740,098 (December 31, 2014/January 1, 2015) First Quarter Ending Value 715,663 (March 31, 2015) Second Quarter Ending Value 695,640 (June 30, 2015) Third Quarter Ending Value 640,014 (September 30, 2015) Fourth Quarter Ending Value 700,994 (December 31, 2015) 5/6/2015 Flows: Tvne Descrintion. if needed. Date Amount 0 Salary (Out) Wages 1/13/2015 575 Other Cash Flow Out (Describe) Member Dues 2/10/2015 196 Benefit Payment (Out) Payout for Mike Lyon 3/25/2015 41,168 Other Cash Flow Out (Describe) Actuary 4/15/2015 2,600 Other Cash Flow Out (Describe) Audit 5/6/2015 4,100 Salary (Out) Wages 7/14/2015 650 State Aid (In) 10/1/2015 52,164 Page 16 of 28 � � � � � �� �. .