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10. Fire Dept. Relief Assoc By Laws 1 CITY c � a 1 CHANHASSEN 1 ig, �`" - 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317 I (612) 937-1900 • FAX (612) 937-5739 3 MEMORANDUM ITO: Mayor and City Council IFROM: Don Ashworth, City Manager DATE: November 18, 1991 1 SUBJ: Fire Relief Association, Bylaw Amendments I Although this item is listed as a singular approval, various reports and activities were required to culminate this into one singular action. Attached please find the following reports. A II brief description as to how they affect the modified bylaws is shown adjacent to each report. Changes to the Bylaws: Lists all proposed changes. All changes 1 relate to benefit increases/decreases. Association Bylaws: Current bylaws without changed sections. 1 Year End Financial Statements: Represents current base line position 1 without plan amendments. Actuarial Report: No changes can be made to bylaws without completing an actuarial. The actuarial IIis based on the current benefit level. Alternative Benefit 1 Changes: Using the actuarial report, each potential change in benefits is reviewed including the cost of such. 1 Firefighters Relief Reporting Form: Informational only. 1 BACKGROUND II The history of benefit changes for our fire department is filled with a number of relative intense Council meetings. During one of those time frames, voluntary firefighters literally laid their pagers on the Council table. St. Anthony currently is paying the Is tot PRINTED ON RECYCLED PAPER 1 I ' Mayor and City Council November 18, 1991 Page 2 price for not being able to resolve a $20, 000 relief benefit problem. Their full time department now costs that city approximately $500, 000 more than the costs of operating a voluntary department. As previous change requests have been quite painful, the Council has asked the association not to make a request for benefit changes more often than once every three years. The current benefit level has been in effect for the past three years. A change occurred in 1990 which was a non-monetary change. The fallacy with the three year freezing is that the cost of living cannot be similarly frozen. A 20%, 30% or even 40% increase in benefit levels is typically justified. However, during a time frame when all other departments have been asked to keep increases to a relatively minor percent, funding of a 30% or 40% increase can become difficult. [Note: By this point in the memorandum, Council members must be saying--"Why didn't someone tell me about this before I ran for office? Assuredly we are going to go to war with the fire department and my house will be torched. " To relieve the suspense, you should know that: The firemen have been very reasonable in their request for benefit changes; and - Although general state aids have been cut significantly, fire aids have significantly increased; and r - No property tax increase will be necessary to fund the proposed changes; and - War need not be declared. ] CURRENT REQUESTS The primary change being requested (most costly) is increasing the retirement benefit by $2 . 00 per month per year of service. This represents an approximate 13.5% increase over the previous plan. The proposed changes also include eliminating death benefits for retired firefighters, while adding a $2, 000 lump sum benefit for active members. The total yearly contribution cost associated with ' the changes rises from $32,190 to $44,814. This cost is totally offset via increases in state aids from approximately $20, 000 to $33, 000 in 1991. Earlier in this agenda, the Council considered I funding for the Fire Relief Association as a part of the 1992 budget. Included in the 1992 budget is the $44,814 currently being requested. In analyzing the revenue/expense of that account, the ' Council may be lead to believe that the property tax level could actually be decreased for 1992 and still provide full funding for the fire department. I would strongly recommend that the Council not fall into this trap as the actuarial report is based upon the I I Mayor and City Council November 18, 1991 Page 3 current level of membership. Should the department be able to reach its fully authorized number of firefighters, costs of funding benefits will rise $15,000 to $20,000 per year. It is important not to place a future council into a position of having to declare war. SUMMARY I The Mayor and I have continued to meet with the fire department throughout the course of the past six months as each of the above documents were initiated and completed--such paving the way to the 1/ next step. Although it may look as though the fire department is requesting the most expensive of all options considered, let me assure you that such is not the case. In voting on benefit changes I to be analyzed as a part of the actuarial process, numerous proposals were rejected from being considered simply because of the known cost implications of such. The meetings terminated with a meeting between the Association and the Mayor this past week at which time the Mayor restated his appreciation for the process that the firefighters had agreed to and their desire to do their part in ensuring that "a no property tax increase position" could be considered as a part of the 1992 budget. Approval of the proposed bylaws, with the amendments outlined, is recommended. 1 "10 1 1 f I I 1 11 . CITYOF 1 1 ,. . , . 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317 II (612) 937-1900 • FAX (612) 937-5739 3 I IICHANHASSEN VOLUNTEER FIRE DEPARTMENT RELIEF ASSOCIATION CHANGES TO THE BY—LAWS 1 ARTICLE VII SECTION 1 Change line 4 from 228 . 00 to 260 . 00 Change line 5 from 11 . 40 to 13 .00 1 , ARTICLE VII SECTION 3 II Change line 4 from 11 . 40 to 13 .00 Change line 7 from 1 , 710 . 00 to 1 , 950 . 00 1 ARTICLE VII SECTION 4 Change line 17 from 11 . 40 to 13 . 00 Change line 20 from 1 , 710 .00 to 1 ,950 . 00 1 ARTICLE VII SECTION .4 lines 24 to 35 to read : IChange - Completed Years Vesting of Active Service Percentake Monthly Lump Sum 1 Less than 10 years No pension 10 years 60% $78 . 00 11 , 700 .00 11 years 64% 991 .52 13 , 728 .00 1 12 years 13 years 68% 4106.08 $121 .68 15 ,912 .00 72% 18,252 .00 14 years 76% $138 .32 20 , 748 . 00 15 years 80% ,4156 ,00 23 , 400 .00 I 16 years 84% 4174. 72 26 , 208 .00 17 years 88% $194 .48 29 , 172 . 00 18 years 92% $215 .28 32 , 292 .00 1 19 years 96% $237 . 12 $260 .00 35 ,568 .00 20 years 100% 39 , 000 .00 1 1 Ilk 1 � � PRINTED ON RECYCLED PAPER f C►Ianges cont . P . 2 1 ARTICLE VII SECTION 5a Change line 6 from 11 . 40 to 13 . 00 . Change line 8 from 120 to 180 Change line 9 from 120 to 180 Change line 10 from 120 to 180 II ARTICLE VII SECTION 5 ( a ) 1 Change line 1 to delete word inactive I ARTICLE VII SECTION 5 (a) 2 This is added as a new paragraph to Section 5 . 1. The beneficiary may elect to choose a lump sum payment . The lump sum payment is the vesting precentage times 1 , 950 . 00 per II year of Fire Department service , up to a maximum of 30 years , and is payable as a single amount as settlement of all rights under the plan . ARTICLE VII SECTION 5 ( b ) Change the heading to read as follows : II Death Benefit Prior To Retirement Change the first paragraph to read as follows : A death benefit of $2 , 000 shall be payed to the designated II beneficiary of an active member of this Association who is also an active member of the Chanhassen Volunteer Fire Department . In the event of the beneficiary death prior to receipt of death III benefit , payment will be made to the members designated secondary beneficiary . If no surviving designated beneficiary, then said amount shall be paid to the estate of the deceased member . Add the following heading to Section 5 : (c ) Death After Benefit Commencement II Delete the word Furthermore from Line 19 . Change line 20 from 120 to 180 1 . Change line 21 from 120 to 180 Change line 24 from 120 to 180 Monthly Sum Funeral Widow vesting II Chanhassen 228 . 00 34,200 1 ,000 .00 10 yr 88 Mound 395 . 00 N/A 1 ,500 . 00 100% 20 yr 90 Chaska 220 . 00 N/A 4, 000 .00 100% 15 yr 89 II Excelsior -- 39 , 000 -- 100% 10 yr 91 Shakopee N/A 44,500 2 , 000 . 00 100% 10 yr 90 II II II BY-LAWS OF THE CHANHASSEN VOLUNTEER FIRE DEPARTMENT RELIEF ASSOCIATION, INC. ARTICLE I Name and Title . The name and title of this corporation shall be "The Chanhassen Firefighters Relief Association, Inc . " ARTICLE II Section 1 . Membership . All members of the Chanhassen Volunteer Fire Department shall be eligible to join this association. All applications for membership shall be sent to the Board of Trustees . ' Each applications shall be in writing, signed by the applicant, stating name , residence and the date that he joined the department . He shall then be entitled to a certificate of membership in the association and said certificate shall be signed by the president and the secretary of the association. Section 2 . Rights and Privileges Forfeited . Any person expelled from the Chanhassen Volunteer Fire Department shall forfeit all claims for death or other benefits. Section 3 . Membership After Retirement . Any member who retires from said fire department after being vested shall remain a member of this association . Once retiring from said fire department, however, a member shall not be eligible for disability relief from this association . ARTICLE III Section 1 . Funds . The property and monies of this association shall be kept in two separate and distinct funds known as the "General Fund" II .and the "Special Fund" . Section 2 . General Fund . The funds received by this association from dues , fines , initiation fees , entertainments, and other miscellaneous sources shall be kept in a General Fund and may be disbursed by the Board of Trustees for any purpose reasonably suited to the welfare of the association and its members, (including a pro-rated share of the General Fund based on months of service for any member who resigns after five years ) . However, upon a vote of two-thirds of the members present and voting at a regular or special meeting any such monies may be placed in the Special Fund . -1- 1 i Section 3 . Special Fund , All monies received from the annual tax II levied by the City Council and all monies received from the tax on insurance premiums shall be kept in the Special Fund , designating the specific source of such funds . The monies in this fund may be dis- bursed only as provided by the laws of the state and as approved by II the City Council . ARTICLE IV Section 1 . Officers . The officers of this association shall be a President, a Vice-President, .a Secretary, and a Treasurer. I Section 2 . Election and Term U. Office . Said officers shall be elected annually from the Board of Trustees at their annual meeting in February of each year . Section 3 . board pi Trustees . The Board of Trustees shall be com- posed of six trustees, one of the six may be a retired member receiving a monthly pension. Two trustees shall be elected annually at the regular meeting of the association and they shall hold their respective offices for the term of three years or until their successors have been elected and duly qualify. The following shall II be ex-officio members of the Board of Trustees: The Mayor of the City of Chanhassen • II City Manager, Clerk, Clerk-Treasurer, or Finance Director The Chief of the Chanhassen Volunteer Fire Department ARTICLE V 1 Section 1 . President 's Duty. It shall be the duty of the President II to preside at all meetings of this association, to sign all cer- tificates and notices as may be requiring his signature to authenticate them, and to have general supervision over the association. IISection 2 . Vice-President 's Duty. The Vice-President shall perform the duties of the President during his absence or disability and in the case a vacancy in the office of President, until a successor has been elected . II Section 3 . secretary's Duty. It shall be the duty of the Secretary to keep a true and accurate record of the proceeding of all meetings II of the association and of the Board of Trustees. He shall keep a correct record of all amendments, alterations and additions to the Articles of Incorporation or the Bylaws in a separate book from the II minute books of the association. He shall cause due notice of all special meetings of the association and of the Board of Trustees two weeks in advance of the meeting along with an agenda . He shall receive all moneys due the association and pay the same over to the Treasurer. He shall keep a roll of membership, with the date of joining, resigna- tion, discharge , leaves of absence, dues and assessments paid and relief or pensions furnished . His books shall at all times be open to inspec- tion by the Board of Trustees . Prior to entering upon the duties of hi office , he shall give a bond in such amount and with such sureties as . -2- 1 I II may be required and approved by the Board of Trustees , conditioned upon ' the faithful discharge of his trusts and the full performance of the duties of his office . Such bond will be paid for from the Special Fund of the Association. He shall sign all orders for payment issued to the Treasurer, and jointly with the Treasurer, prepare and file all reports and statements required by law. He shall receive such salary as may be fixed from time to time by the Board of Trustees, subject to approval of the association, and payable from the Special Fund of the association . 11 Section 4 . Treasurer 's Duty. It shall be the duty of the Treasurer to receive from the Secretary all funds belonging to the association and hold them subject to the order of the President and countersigned by the Secretary. He shall keep separate and distinct accounts of the Special and General Funds, and shall prepare and present to the Board of Trustees a full and detailed statement of the assets and liabili- ties of each fund at each meeting of the Board of Trustees, and prior to the annual meeting of the association. He shall deliver to his successor in office , or to any committee appointed by the Board of Trustees to receive the same , all moneys, books, papers, and other items pertaining to his office immediately upon the expiration of his term of office . Prior to entering upon the duties of his office, he shall give a bond in such amount and with such sureties as may be required and approved by the Board of Trustees, conditioned upon the faithful discharge of his trust and the faithful performance of the duties of his office , to be paid for from the Special Fund of the association . Jointly with the Secretary, he shall prepare and file all reports and statements required by law. He shall receive such salary as may be fixed by the Board of Trustees from time to time , II subject to approval of the association, and payable from the Special Fund of the association . ' Section 5 . Removals , Any officer or general trustee may be removed for just cause at a special meeting of the members by a 2/3 vote of those entitled to vote at an election of officers and trustees . No officer or general trustee shall be removed unless notice of the meeting at which removal is to be considered states such purpose . When an officer or trustee has been removed , new officers or general trustees may be elected at the same meeting to serve until the next ' annual meeting of the members and until their successors have been elected 'and have qualified . Section 6 . Debts Prohibited . No officer or member of this association shall contract any debt for the same unless authorized by the Board of Trustees . ARTICLE VI Section 1 . Powers g_f_ the. board . The Board of Trustees- shall have exclusive control and management of all funds received by the Treasurer , and shall constitute the governing body of said association with full power and authority to carry out the objects and purposes of the association as set forth in the Articles of Incorporation and Bylaws of the association and the laws of the State of Minnesota . 1 -3- 1 . Section 2 . Application for Relief . All applications for relief or II benefits shall be made to the Board of Trustees in writing . Said applications shall be accompanied when disability relief is applied for by a certificate of disability from the Physician in attendance , stating the length of time such member has been unable to perform the II duties of a fireman . Section 3 . Approval 2.1.. Claims . The Board of Trustees upon being satisfied of the merit of any claim for benefits shall endorse its approval with 2/3 vote thereon and the same shall forthwith be paid by the association . ARTICLE VII II / ' Section 1 . permanent Disability Relief . If a member is sick or II injured from causes outside or in the line of duty and a physicians 3 report shows that he is unable to perform his duties he may receive , as N the Board of Trustees decide, an amount of per month or S $ . per month per year of service , whicheve •is a e ater . "� aco Section 2 . Temporary Disability benefits . Upon the approval of the application therefore , any member of this association who becomes tem- porarily physically incapacitated for active duty in the Fire Departmen of the City of Chanhassen because of illness or injury sustained in the performance of such duty and is unable to work for one week or longer shall be paid a benefit of $5 .00 per day for a period no longer than 12 days in any one fiscal year, providing he is under the care of a physi- cian or doctor during this period . Section 3 . pension . A member is entitled to a full pension if the 11 member has actively served in the Chanhassen Fire Department for at least 20 years provided that the member shall have been a member of II this association for at least 10 years and shall have reached the age of 50 . / The pension will start on the first day of the month following I ,� retirement from the association. Thirty days prior to the start ? of benefits., the member shall elect whether he wants a monthly - ` L- '_ pension or a lump sum pension. The monthly pension is $1-1 . 40- per II _S year of Fire Department service up to a maximum of 30 years and �I_ ' , is payable for the lifetime of the member . The lump sum pension \ , �� is X0,,00 per year of Fire Department service up to a maximum ' of 30 years and is payable as a single amount as settlement of all II cl rights under the plan. i Section 4 . Vesting and Option 21 $ Reduced Pension. Any member may II receive a reduced pension if retiring with at least 10 years but with less than 20 years of active service with the Fire Department, and y 10 years active membership in the association. Such member shall be S placed on the deferred vested pension roll . This vesting procedure II E provides for the payout of assets of the Special Fund to the retiring . 7 member. During the time a member is on the deferred pension roll he y will not be eligible for any disability benefits as provided in Section 9 I of this article , and he shall be relieved of the obligation of paymen it, of dues . ' -4- II I // The deferred pension will start on the first day of the month following ' /; attainment of age 50 if the member retires with less than 20 years prior /3 to reaching age 50 . A member eligible for a reduced pension who retires /./ after age 50 shall be immediately eligible for the appropriate pension . 11. /} Thirty days prior to the start of benefits, the member shall elect /4, whether he wants a monthly pension or a lump sum pension. The monthly /9 pension is the vesting percentage times $11 .40 per year of Fire II /4, Department service up to a maximum of 30 years and is payable for the /9 lifetime of the member . The lump sum pension is the vesting percentage 9c times $1 , 710 .00 per year of fire department service up to a maximum 4 , of 30 years and is payable as a single amount as settlement of all I ' rights under the plan. The vesting percentage is determined from the following table : I *Completed Years Vesting Active service Percentage Konthly Lump ,Sum ,1q Less than 10 years No Pension I z . 10 years 60% $68 .40 $80 .26 10,260 .00 � L 11 years 64% 12,038 .40 ; /J 12 years 68% $93 .02 13,953 .60 IIsS 13 years 72% $106 . 70 16 ,005 .60 fy 14 years 76% $121 .30 18 , 194.40 2c 15 years 80% $136 .80 20,520 .00 3/ 16 years 84% $153 .22 • 22 ,982 .40 ' 17 years 88% $170 .50 25 ,581 .60 ✓ ' 18 years 92% $188 . 78 28, 317.60 N '; 19 years 96% $207.94 31 , 190 .40 ▪ 20 or more years 100% $228 .00 34, 200 .00 Section 5 . Death Benefits . I (a ) Death prior I.L Benefit Commencement II i - Upon the death prior to benefit commencement of an inactive membe 2 who is on the deferred vested pension roll or any active member who is -z vested (that is , has - met the eligibility criteria of Section 4) a monthly - y pension shall be paid to the member 's designated beneficiary. The monthl I j, pension is the member ' s vesting percentage as determined in Section 4 (. times $11 . 40 per year of Fire Department service up to a maximum of 30 ? years . Such benefit shall commence on the first of the month following I y death and shall be payable for 120 months . In the event of the benefi- q ciary ' s death prior to receipt of the 120 payments , payments will continu /cfor the remainder of the 120 month period of the member 's designated beneficiary. I // secondary(b ) Death After Benefit Commencement I a If a member elected a lump sum pension, no death benefits are /3 payable under this plan. If a member elected a monthly service „' pension, a death benefit of $1 ,000 shall be paid to the designated /,- beneficiary. In the event of the beneficiary death prior to receipt I // of death benefit, payment will be made to the members designated // secondary beneficiary. If no surviving designated beneficiary, then /' said amound shall be paid to the estate of the deceased member . 1 -5- II II /'/ Furthermore , if a member who is receiving a monthly pension die 4c prior to receiving 120 monthly payments, the payments shall continue to fht the member 's designated beneficiary for the remainder of the 120 month Aperiod . In the event of the beneficiary's death prior to receipt of all 3promised payments , payments will continue to the member 's designated p/ secondary beneficiary until a total of 120 payments have been made on t 55 member 's behalf . Section 6 . Disbursement 9.1. Funds . All monies of this association 1 shall be disbursed only as heretofore provided., except by a two-thirds (2/3 ) vote of —the members of the association. All benefits provided hereunder are maximum, and if the condition of the treasury does not permit the payment of all benefits in full, the available funds shall II be pro-rated among the several beneficiaries . This applies to pension as well as disability benefits . II Section 7 . penalty for Fraud . Any member who shall be found imposing upon this association by feigning sickness or injury for the purpose of defrauding the same , shall be expelled . Any member failing to account for any money belonging to this association, which may have come into his hands , shall be expelled . ARTICLE VIII 1 Section 1 . reports . All reports and resolutions shall be submitted in writing and no report from a .committee shall be received unless it is approved by a majority of such committee , but a minority report may always be presented . Section 2 . Armed Services . In the event that any member is required tw serve in the United States armed services either by enlistment or draft in case of national emergency for the duration, the time that he has II accrued towards his service pension in this association shall remain frozen , but he shall be subject to the same eligibility rules as any other applicant for membership upon his return. II Section 3 . Annual Meeting . The regular annual meeting of the asso- ciation shall be held in February of each year and shall not start until after 6 : 00 p .m. 1 ARTICLE IX Section 1 . Aid Committee . The Aid Committee shall consist of three II members of the Relief Association, as appointed by the Board of Directors . II The duties of the Aid Committee shall consist of, but not limited to, making sure that the proper forms be filled out for any claim of bene- fits by any member of the Relief Association and that those forms be filed with the proper agencies . Also , this committee shall perform such other duties which may be assigned to it by the Board of Trustees . II -6- 1 1 ARTICLE X Section 1 . Voting . A. All matters pertaining to voting must be approved by two-thirds (2/3 ) of the members present . B . Only members in good standing (excluding members on probation or suspension of the Fire Department ) may vote . ARTICLE XI ' Section 1 . Amending $y-Laws . The by-laws of this association may be amended at any regular or special meeting thereof by a favorable vote of two-thirds of the members present and voting, provided that a quorum of 50% of voting members is present and provided further that notice of any proposed amendment or amendments shall be given by reading the same at a regular or special meeting not more than thirty (30 ) days next preceding that upon which such amendment or amendments ' are acted upon and that a notice be mailed to each member at his last known address not less than ten (10 ) days prior to such meeting . And provided further that such amendment or amendments shall be approved by the council or governing body if the amendments affect the benefits to be paid by this association . Approved by the Chanhassen City Council September 10, 1984 Approved amendment by the Chanhassen City Council March 3 , 1986 Approved amendment by the Chanhassen City Council October 24, 1988 Approved amendment by the Chanhassen City Council January 28 , 1991 rAdopted by the Chanhassen Fire Relief Association October 29 , 1984 Amended by the Chanhassen Fire Relief Association March 17, 1986 I Amended by the Chanhassen Fire Relief Association December 14, 1988 Amended by the Chanhassen Fire Relief Association October 15 , 1990 I 11 I I i I 1 1 1 11 • I I I I CHANHASSEN FIREFIGHTERS RELIEF ASSOCIATION , FINANCIAL STATEMENTS I PECEMBER 31, 1990 I I I I I t 1 I 1 GARY R. BRAKKE, CPA 2567 COMMERCE BOULEVARD MOUND, MINNESOTA 55364 (612)472-4800 I 1 1 The Board of Directors Chanhassen Firefighters Relief Association Chanhassen, Minnesota 55317 ' I have examined the accompanying combined balance sheet of the Chanhassen Firefighters Relief Association at December 31, 1990, and the related statements of revenues, expenses, and changes in fund balance, and changes in financial position for the year ended December 31, 1990. My examination was made in accordance with generally accepted auditing standards and accordingly, included such tests of the accounting records and such other auditing procedures as I considered necessary in the circumstances. ' In my opinion, the statements mentioned above present fairly the financial position of the Chanhassen Firefighters Relief Association at December 31, 1990, and the results of operations and changes in financial position for the year ended December 31, 1990, ' in conformity with generally accepted accounting principles applied on a consistent basis during the period. MAY 30, 1991 J ' GARY R BRAKKE, CPA 1 1 1 1 CHANHASSEN FIREFIGHTERS RELIEF ASSOCIATION COMBINED BALANCE SHEET II DECEMBER 31, 1990 II FUND TYPE Fiduciary Governmental I Special Total . Pension (Memorandum" Trust General ( Only ASSETS • Cash $ (2,203) $ 5,744 $ 3,54111 Investments 582,406 95,690 678,096 Member loans - 48,322 48,32211 Receivables Accrued interest '- investments 14,881 1,267 16,148 Accrued interest - member loans - 1,561 .1,561 Due from other governments 11.310 3.132 14 .442 TOTAL ASSETS $ 606,394, 1_155,111 1 762 . 110 1 LIABILITIES AND FUND BALANCE 1 Liabilities: Accounts payable $ 1.468 $ 253 $ 1.7211 Total liabilities 1.468 253 1.721 Fund Balance: 1 Required reserves 538,282 - 538,282 Funding excess 66,644 - 66,64411 Unreserved Undesignated - 155.463 155.463 1 Total Fund Balance 604.926 155.463 760,389 TOTAL LIABILITIES AND 1 FUND BALANCE 1606,3s $ 155.716 $ 762, 110 II The notes to the financial statements are an integral part of this report" 1 11 II CHANHASSEN FIREFIGHTERS RELIEF ASSOCIATION SPECIAL PENSION TRUST FUND STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCE YEAR ENDED DECEMBER 31, 1990 II Required Funding ' Total Reserves Excess ii Operating Revenues: Contributions City of Chanhassen $ 11,310 $ 11,310 -**** State of Minnesota 24,270 24,270 **** II Investment Income Interest 46,960 46,960 **** Dividends 5,947 5,947 **** I Net realized gains (losses) on sale of investments 119 119 **** Total Operating Revenues 88.606 88.606 **** 1 Operating Expenses: Benefit Payments II Service pensions 52,700 52,700 **** Actuarial fees **** Audit fees 1,430 1,430 **** Faithful performance bonds - - **** IIInvestment management fees 5.035 5.035 **** Total Operating Expenses 59, 165 59.165 **** INet Income 29.441 29,441 **** Changes in Funding Excess **** (3,808) 3,808 • Fund Balance - Janua ry 1 575.485 512.649 62.836 IIFund Balance - December 31 $ 604 .926 $ 538,282 $ 66,644, II II • I II The notes to the financial statements are an integral part of this statement. 1 1 CHANHASSEN FIREFIGHTERS RELIEF ASSOCIATION GENERAL FUND STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCE YEAR ENDED DECEMBER 31, 1990 11 Revenues: 1 Fire calls $ 15,077 Investment income Interest 7,755 Interest on member loans 3,363 Net realized gains (losses) on sale of investments 281 Dance proceeds - House burnings - Other - 1 TOTAL REVENUES 26.476 Expenses: Severance payments - 8,415 Investment management fees 898 Officer salaries 300 Faithful performance bonds 198 Other 236 , TOTAL EXPENSES 10.047 1 Excess of Revenues Over Expenses 16,429 Fund Balance - January 1 139.034 1 Fund Balance - December 31 1_1A5,2112 1 The notes to the financial statements are an integral part of this statement." 1 I CHANHASSEN FIREFIGHTERS RELIEF ASSOCIATION SPECIAL PENSION TRUST FUND STATEMENT OF CHANGES IN FINANCIAL POSITION YEAR ENDED DECEMBER 31, 1990 I Sources of Working Capital 1 Operations: Net fund balance additions S 29,441 1 Net increase in working capital 29 441 ' Elements of Net Increase (Decrease) in Working Capital: Cash $ (2,605) ' Investments 22,753 Accrued interest on investments (1,994) Due from other governments 11,310 Payables ( 23) ' Net increase in working capital 29 441 1 i . 1 1 t . 1 1 1 1 The notes to the financial statements are an integral part of this statement. 1 1 CHANHASSEN FIREFIGHTERS RELIEF ASSOCIATION GENERAL FUND STATEMENT OF CHANGES IN FINANCIAL POSITION YEAR ENDED DECEMBER 31, 1990 Sources of Working Capital: Operations: Net fund balance additions S 16,429 Net increase in working capital 1.14.12.2 i Elements of Net Increase (Decrease) in Working Capital: Cash $ 730 II Investments 2,030 Member loans 13,323 Accrued interest on investments ( 11) 1 Accrued interest on member loans 14 Due from other governments 263 Payables 80 II Net increase in working capital S 16,429 1 1 1 1 I 1 1 1 The notes to the financial statements are an integral part of this statement 1 CHANHASSEN FIREFIGHTERS RELIEF ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 1990 11 ;. Form of Government The Chanhassen Firefighters Relief Association was incorporated on September 29, 1966. It operates under the provisions of Minnesota ' Laws 1951 Chapter 550, Minnesota Statutes Section 317, as amended. It is governed by a board of nine members. Six of the board members are elected by the members of the Association for 3-year terms and three are appointed by the City as members of the board. The mayor, fire chief, and city manager of the City of Chanhassen are ex-officio non-voting members of the board of trustees. 2. Financial Reporting Entity The Chanhassen Firefighters Relief Association has implemented the Governmental Accounting Standards Board's Codification Section 2100 (GASB Cod. Sec. 2100) , Defining the Governmental Reporting Entity. For financial reporting purposes the Association's financial ' statements include all funds, account groups, departments, agencies, boards, commissions, and other organizations over which the Association's officials exercise oversight responsibility. • 1 I I 3. Summary of Significant Accounting Policies I a. Fund Accounting The resources of the Association are accounted for in two funds: 11 The Special Fund is a pension trust fund for the accumulation ofil resources to be used for retirement, dependency and disability annuity payments of appropriate amounts and at appropriate times in the future. Resources are contributed by the City of Chanhassen - at amounts determined by law, and from the two-percent insurance " premium tax and amortization aid from the State of Minnesota. The General Fund is a governmental fund which accounts for the resources other than those in the Special Pension Trust Fund. It is used for the good and benefit of the Association as determined by Association by-laws. Its resources consist of payment for fire calls from the City of Chanhassen, fund-raiser proceeds, investment " earnings and miscellaneous sources. b. Basis of Accounting , The. accounting policies of the Chanhassen Firefighters Relief Association conform to generally accepted accounting principles. The accrual basis of accounting is used for the Special Fund, and the , modified accrual basis of accounting is used for the General Fund. General Fund - The modified accrual basis of accounting is followed for the General Fund of the Association. Under this method of accounting, revenues are recognized when received in cash, except for revenues of a material amount that have not been received at il the normal time of receipt and revenues susceptible to accrual. Revenues considered susceptible to accrual are those revenues that are both measurable and available to finance the Association's operations during the year. Expenditures are reported when the , related liability is incurred. Special Fund - The accrual basis of accounting is followed for the Special Fund of the Association. Under this method, revenues are , recognized in the accounting period in which they are earned and become measurable. Expenses are recognized in the period incurred, if measurable, except for future pension costs which are computed periodically in accordance with State requirements. c. Investments I Interest income is recognized when earned and dividend income is recognized when received. Investments are stated at lower of cost or " market. d. Total Column on Combined Balance Sheet The total column on the combined balance sheet is captioned " "memorandum only" to indicate that it is presented only to facilitate financial analysis. Data in this column does not present financial II position in conformity with generally accepted accounting principles. • 1 1 4. Loans to Members/Pension Payments - General Fund After five years of service relief association members are entitled to borrow funds from the General Fund based upon their pro-rated share I of the General Fund. The pro-rated share is determined by the members months of service. Repayment terms allow for the payment of principal and interest, or if a member chooses only interest on the loan need 1 be repaid. Any member resigning after five years of service is entitled to receive as a pension their pro-rated share less any outstanding loans. II 5. Investments The following is a summary of the Association's investments at 1 December 31, 1990: Special Fund 1 MARKET TYPE COST VALUE 1 Government Bonds $ 350,512 $ 361,343 Corporate Bonds 148,634 151,313 Mutual Funds 57,260 , 46,890 1 Money Market 26.000 26.000 Total $ 582 .406 $ 585.546 1 General Fund I . MARKET TYPE COST VALUE Government Bonds $ 75,090 $ 75,758 1 Money Market 20.600 20.600 Total $ 95,690 $ 96,358 I 6. Funding Excess 1 - The estimated accrued liability of $538,282 on December 31, 1990 was determined by multiplying the 1987 actuarial survey accrued liability and the updated normal costs by 1.05. The funding excess is $66,644 1 as of December 31., 1990. 1 1 1 1 1 7. Funding of Retirement Plans 1 Tax levies for the Association's retirement plan are made pursuant to Minn. Stat. Sec. 69.77, subd. 2 (2) . Full funding is required by the , year 2010. The actuarial assumptions presented in Minn. Stat. Sec. 356.215 provide for an assumption rate of five percent from investment earnings on an annual basis. 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 I I I I I 1 CHANHASSEN FIRE DEPARTMENT RELIEF ASSOCIATION I Actuarial Valuation for Plan Year 1991 1 I 1 I I I I I I I I , COMPENSATION & CAPITAL INCORPORATED I INTRODUCTION I We present in this report the results of the actuarial valuation as of January 1, 1991 for the Chanhassen Fire Department Relief Association. This report is divided into sections which: 11 o Show the plans current financial and actuarial status. o Develop contribution requirements for 1991. o Supply information required for financial statement disclosures. o Provide projections of benefits for individual ' participants. The principal results of the valuation are summarized and ' compared to prior results on page 1. This valuation is based on census data and asset information furnished by the Association. To the best of our knowledge this ' report presents fairly the actuarial condition of said Plan as of January 1, 1991. The investment return assumption and actuarial cost method are legislated in the Minnesota State Statutes. It ' is our opinion that the actuarial assumptions used herein are reasonable in the aggregate. COMPENSATION & CAPITAL Michael R. Rahn Fellow Society of Actuaries Enrolled Actuary No. 3578 6 /"�//S/ ' Date r I COMPENSATION & CAPITAL INCORPORATED 1 t II CHANHASSEN FIRE DEPARTMENT RELIEF ASSOCIATION II TABLE OF CONTENTS II III. SUMMARY AND COMPARISON OF RESULTS 1 II. ACTUARIAL AND FINANCIAL STATUS AT JANUARY 1, 1991 2 I o ASSETS o NORMAL COST o ACTUARIAL LIABILITY II o GAIN (LOSS) III. CONTRIBUTION REQUIREMENTS 4 1 IV. FINANCIAL STATEMENT DISCLOSURES 5 V. PARTICIPANT DATA 6 I VI. SUMMARY OF PLAN PROVISIONS 8 VII. ACTUARIAL ASSUMPTIONS AND FUNDING METHOD 10 I 1 1 1 11 . 1 II 1 I COMPENSATION & CAPITAL INCORPORATED I II II I. Summary and Comparison of Results I 11 1/1/91 1/1/88 $11.40 Benefit $11.40 Benefit II A. Participants Active 33 25 II Retired 10 8 Beneficiaries 0 0 Terminated Vested 2 1 II45 34 B. Normal Cost $28,820 $24,943 II IIC. Actuarial Liability $626,462 $587, 354 IID. Asset Values $586,574 $470,313 IIE. Funded Percentage— 94% 80% (D) / (C) IIF. Unfunded Actuarial $39,888 $117, 041 Lability ' (C) -(D) G. Contribution $32, 190 $33,887 I H. Pension Benefit $572,493 $468,901 IObligation (GASB #5) I I. Unfunded Pension Benefit $(14,081) $ (1,412) Obligation (GASB #5) (H) -(D) I I 1 COMPENSATION & CAPITAL INCORPORATED II II. Actuarial and Financial Status at 1/1/91 1 A. Assets I Market value of plan assets on 12/31/90 $586,574 as reported by the Association: B. Normal Cost Value as of 1/1/91 using Entry Age Normal: $28,820 C. Actuarial Liability 1. Active Participants $260, 093 2 . Retired Members 326,789 a 3 . Deferred Vested Members 39,580 4. Beneficiaries of Retired Members ______2 5. Total Actuarial Liability $626,462 6. Plan Assets $586,574 7. Funded Percentage (6) / (5) 94% I 8. Unfunded Actuarial Liability $39,888 (5) -(6) I 1 2 COMPENSATION & CAPITAL INCORPORATED D. Gain (Loss) 1. Unfunded Actuarial Liability 1/1/88 $117,041 1 2 . Normal Cost 1/1/88 - 12/31/90 74,829 3 . Interest at 5% on (1) and (2) 26, 185 11 4 . Contributions plus 5% Interest 77,528 1/1/88 - 12/31/90 5. Expected Unfunded Actuarial 140,527 Liability 1/1/91 (1) +(2)+(3) -(4) 6. Actual Unfunded Actuarial 39,888 Liability 1/1/91 7 . Gain (Loss) (5) -(6) 100, 639 1 Assets earning more than expected produced a three-year gain of approximately $142, 000. This was offset by losses from the disability and mortality experience. 1 1 1 I 3 COMPENSATION & CAPITAL INCORPORATED 1 1 III. contribution Reauirement • 1 The contribution level for any given year is a combination of the normal cost for that year and an amount to reduce the unfunded actuarial liabilities. The Unfunded Actuarial Liability established January 1, 1988 was being amortized over 20 years. Thus, the remaining Unfunded Actuarial Liability as of January 1, 1991 will be amortized over 17 years. The contribution needed to accomplish this is shown below: A. Normal Cost $28,820 1 • B. Amortization Needed to Fully Fund Actuarial 3 ,370 Liability by 12/31/2007 C. Total Annual Payment $32, 190 1 (A) +(B) 1 i 1 1 i 1 1 1 1 4 1 COMPENSATION & CAPITAL INCORPORATED 1 I IV. Financial Statement Disclosures In November of 1986, the Governmental Accounting Standards Board (GASB) issued its Statement No. 5. This statement establishes standards for disclosure of pension information' ' by state and local governmental employers in notes to financial statements. It also requires the computation and disclosure of a standardized measure called "Pension Benefit ' Obligation". This measure is the actuarial present value of credited projected benefits, prorated on service. In other words, it is the value of all future expected benefits that can be attributed to service earned to date. This differs ' from the measure that was produced by the actuarial funding method used to determine contribution requirements. Pension Benefit Obligation * 1/1/91 ' Retirees, Terminated Vested and Beneficiaries $366, 369 Actives 206, 124 $572,493 Market Assets 1/1/91 $586, 574 Unfunded Pension Benefit $ (14, 081) Obligation * 1/1/91 1 * Based upon 5% investment return assumption; benefits not related to pay. 1 1 5 COMPENSATION & CAPITAL INCORPORATED I I V. Participant Data ACTIVE MEMBERS I Age Monthly Projected I Nearest Years Accrued Monthly Name Birthday Served Benefit Benefit GREGORY, DALE 44 20 $228.00 $330.60 I LITTFIN, MARK 38 18 $188.78 $342.00 COULTER, FRITZ 44 17 $170.54 $296.40 KERBER, MIKE 38 16 $153.22 $342.00 MCMAHON, JIM 50 12 $93.02 $228.00 I MOORE, BOB 47 12 $93.02 $228.00 WING, RICHARD 47 10 $68.40 $228.00 AUSETH, DUANE 40 9 $0.00 $250.80 I EIDAM, GREGG 44 9 $0.00 $228.00 DRESSLER, DAVE 37 9 $0.00 $285.00 HALVERSON, BOB 43 8 $0.00 $228.00 RICE, RICK 30 7 $0.00 $342.00 I PAYNE, RON 30 7 $0.00 $342.00 ALCOTT, TODD 36 7 $0.00 $273.60 SAUTER, STEVE 36 6 $0.00 $262.20 UNDIS, STEVE 36 6 $0.00 $262.20 II BENIEK, BRIAN 28 4 $0.00 $330.60 WOLFF, JOHN 32 4 $0.00 $307.80 SLATER, JEFF 30 4 $0.00 $307.80 BLECHTA, CRAIG 41 3 $0.00 $228.00 FRANZEN, SCOTT 36 3 $0.O0 $228.00 SCHEID, STEVE 31 3 $0.00 $285.00 THIES, JIM 32 2 $0.00 $262.20 BREAULT, GEAFF 41 1 $0.00 $228.00 HOODEH, HAMID 39 1 $0.00 $342.00 MEHL, SHELLY 23 1 $0.00 $342.00 CARLSON, DAVE 36 1 $0.00 $228.00 LOKKEN, DEAN 27 1 $0.00 $307.80 WAHL, RANDY 25 1 $0.00 $330.60 UNZE, DENNISE 34 1 $0.00 $228.00 I GRAY, DUN 27 1 $0.00 $307.80 MCMULLEN, RAY 34 1 $0.00 $228.00 ATKINS, JOHN 36 1 $0.00 $228.00 I TOTAL $994.99 $9,051.60 I I I 6 COMPENSATION & CAPITAL INCORPORATED I RETIRED MEMBERS Age Nearest Monthly IName Birthday Benefit WINDSCHITZ, MEL 68 $228.00 II ROJINA, PAUL 65 $228.00 KARL, ROBERT 65 $207.94 MEUWISSEN, ROBERT 62 $228.00 KURVERS, FRANK 58 $228.00 I MEUWISSEN, HOWARD 57 $228.00 KREGER, JOHN 56 $228.00 KERBER, ART 55 $228.00 PEITZ, RAYMOND 55 $228.00 ISCHLENK, JERRY 53 $228.00 ITOTAL $2,259.94 II ITERMINATED VESTED I Age Nearest Monthly Name Birthday Benefit STAFFORD, DON 46 $106.70 ISCHMIEG, DENIS 44 $188.78 TOTAL $295.48 I I I I . I I I . COMPENSATION &CAPITAL INCORPORATED I VI. Summary of Plan Provisions Retirement Benefit Requirements Twenty years of service and 50 years of age. Amount $11.40 per month for each year of service to a maximum number of years of 30. Payments are guaranteed for 10 years. Vesting Benefit Requirements Ten Y ears of service. Amount 60% of accrued benefits after 10 years of service, with vesting percentage increased 4% per year of additional service. Disability Benefit ' Requirements On or off duty active firemen. Short Term Temporary benefit of $ 5.00 ' per day up to 120 days. Long Term $11.40 per month for each year of service. Minimum benefit of $228 per month and maximum benefit of $342 per month. Lump Sum Death Benefit • Requirements Inactive member ' Amount $1,000.00 ' 8 COMPENSATION & CAPITAL INCORPORATED 1 Survivor's Benefit I Requirements Widow or other designated ' beneficiary of an active fireman. Amount Beneficiary shall receive ' vested accrued benefit for 120 months. ' Lump Sum Retirement Benefit ' Requirements Twenty Years of service and 50 years of age. ' Amount Lump sum payment of $1,300 for each year of service to a maximum number of years of 30. II .- COMPENSATION &9 CAPITAL INCORPORATED 1 VII. Actuarial Assumptions and Funding Method I This set of assumptions was used to calculate the Normal Cost, Actuarial Liability, and the Pension Benefit I Obligation required for disclosure purposes. Investment Return: 5% , Mortality: 1971 Group Annuity Table, I projected to 1978 by Scale E. Termination: 5.5% rate at age 20, grading to no terminations after age 11 48. Disability: 0.03% rate at age 20, grading to 0.33% rate at age 50. Entry Age: , Y 9 Age on employment date Retirement Age:. Later of age 53 or 20 years of service , Normal Form of Payment: 10 year certain and life Asset Basis: Market Value Actuarial Cost Method: Normal Cost and Actuarial Liability: Entry Age Normal Pension Benefit Obligation: Projected Unit Credit 1 10 COMPENSATION & CAPITAL INCORPORATED ' COMPENSATION & CAPITAL INCORPORATED CONSULTING ACTUARIES•EMPLOYEE BENEFIT CONSULTANTS 5400 NORWEST CENTER 90 SOUTH SEVENTH STREET MINNEAPOLIS,MINNESOTA 55402 TELEPHONE 612/334-5656 FAX 612/334-5650 ' June 20, 1991 /Ae.r,,,�.,-:r.4 ' PERSONAL & CONFIDENTIAL Mr. Jerry Schlenk ' President Chanhassen Fire Department Relief Association P.O. Box 97 7610 Laredo Drive Chanhassen, MN 55317 Dear Jerry: ' Enclosed is a chart that details the cost impact of several proposed benefit improvements. ' With no other changes, an increase in monthly benefits of $2.00 per year of service (from $11.40 to $13.40) reduces the funded percentage to 80%. A $.50 increase to $11.90 reduces the funded I -percentage to 90%. In the last column, we looked at combining the other proposed ' changes with a monthly benefit increase. In this case, an increase of $1.60 (to $13.00) results in a 80% funded percentage. Please feel free to call if you have any questions. I would be ' more than- happy to attend your next meeting if you would like to discuss things further. Sincerely, -7114,-,*-41„2.e Petiv■ ' Michael R. Rahn, F.S.A. Consulting Actuary ' MRR:jms • WITH ASSOCIATES IN: AMSTERDAM •BRUSSELS•CHICAGO•JAMAICA• LAKE BLUFF•LONDON •MEXICO CITY•NEW YORK CITY•PARIS PHILADELPHIA•RIO DE JANEIRO•SAO PAULO•SYDNEY •TOKYO•TORONTO•WIESBADEN M • r M MN M • M M IIIIIII MN UM 11111 • M 11111 NM M I CHANHASSEN FIRE DEPARTMENT RELIEF ASSOCIATION POTENTIAL BENEFIT IMPROVEMENTS Current Ella z II. III. IY Y YI 1. Actuarial Liability $626,462 $653,730 $735,536 $637,965 $629,798 $625,436 $729,579 2. Assets 586,574 586,574 586,574 586,574 586,574 586,574 586,574 3. Funded Percentage 94% 90% 80% 92% 93% 94% 80% (2) / (1) 4. Unfunded Actuarial 39,888 67,156 148,962 51,391 43,224 38,862 143,005 Liability (1)-(2) 5. Normal Cost 28,820 30,074 33,838 29,971 29,685 28,664 33,564 6. Required Contribution 32,190 35,528 45,544 34,220 33,309 31,956 44,814 7. Projected Benefit 572,493 597,412 672,170 582,132 574,154 571,298 666,727 Obligation I. Plan would be 90% funded. Monthly benefits for active and retired would increase $.50, from $11.40 to $11.90. II. Plan would be 80% funded. Monthly benefits for active and retired would increase $2.00, from $11.40 to $13.40. III. Normal form of annuity would change from 10 Year Certain and Life to 15 Year Certain and Life for future retirees. IV. Remove $1,000 lump sum death benefit for retired and add $2,000 lump sum death benefit for actives. V. Surviving spouse has choice of lump sum or 15 Year Certain annuity, deferred to when member would have turned age 50. 020 Combination of III, IV, V and a $1.60 increase in monthly benefit for active and retired. Plan would be 80% funded. + /� { r i t '� C�jSoG;�+ o,..,� �4 �v.1 40r049-04(11/15/89) Office of the State Auditor Firefighters Relief Association Reporting Form • 1 ''' o A • 2` Office of the State Auditor ' 525 Park Street St. Paul, Minnesota 55103 ' (612) 297-3685 Firefighters Relief Association Name CHANHASSEN FIRE DEPARTMENT County of CARVER 9z ' For the Year Ended December 31, 19$Q 1. For associations with assets or liabilities of less than $200,000, per Minnesota Statutes Section 69.051 ' subdivision 1 a,please obtain a cash audit and return this form with a signed audit Certification(independent public accountant on page 5)by March 31. 2. For associations with assets or liabilities of at least $200,000, per Minnesota Statutes Section 69.051 subdivision 1, return this form along with an audited financial statement by June 30. • Firefighters Relief Association Reporting Form Year Ended December 31, 1989 , Name of Relief Association CHANHASSEN FIREFIGHTERS BELIEF ASSOCIATION Mailing Address 7610 LARFDtl DRIVE P 0 ROX �7 City/State CHANHASSEN MN , Zip Code 55317 TYPE OF SERVICE PENSION BENEFIT PROVIDED IN BYLAWS: Cad Lump sum Q Monthly or other annuity ❑ Defined contribution (split-the-pie) ❑ None ❑ Other (specify) FIFE DEPARTMENT REPORT 1 1. The Fire Department your Relief Association is associated with is: ❑ Municipal Fire Department ❑ Independent Nonprofit Firefighting Corporation 2. The Fire Department is: ❑ Salaried (career) ® Volunteer ❑ Salaried and Volunteer 3. Number of active firefighters: Salaried (career) ' Volunteer 38 Total number of members RELIEF ASSOCIATION MEMBERSHIP REPORT 4. Number of active members 4 _ 5. Number of retired and/or disabled members receiving benefits 6. Number of retired members on deferred pension rolls — 2 BOND REPORT 7. Is the Secretary of the Relief Association bonded? , 51 Yes ❑ No Amount of bond $ 75 Orin 8. Is the Treasurer of the Relief Association bonded?(Required) • CR Yes ❑ No Amount of bond $ 75,000 NOTE: No treasurer of a relief association governed by sections 69.77(career or paid)shall enter upon his duties until he has given the association a bond in a reasonable amount acceptable to the municipality for faithful discharge of his duties. . No treasurer of a relief association governed by sections 69.771 to 69.776 shall enter upon the duties of the office until the treasurer has given the association a faithful performance bond in the amount equal to ten percent of the assets of the relief association; however, the bond • need not exceed $500,000. ' Firefighters Relief Association Reporting Form I ' Year Ended December 31, 1989 BYLAWS REPORT ITYPE AND AMOUNT OF OTHER BENEFITS AMOUNT (enter N/A if not applicable) 1. Sick: ❑ Lump Sum ❑ Weekly Q Monthly gl Year of Service 1 $228.00/M0 OR 10 vEARE I 2. Disability: 0 Lump Sum 0 Weekly Q Monthly J Year of Service 2 $222 0131.4Q--0840 "EAR: 3. Funeral: ❑ Lump Sum .0 Year of Service D Other 3 31,000.00 4. Accident and Health Insurance (Volunteer Firemans Benefit Association or other) - 4 R3 Yes ❑ No I MINIMUM REQUIREMENTS FOR SERVICE PENSION 5. Minimum Retirement Age 5 r;p 6. Minimum Years as an Active Member of Fire Department 6 10 I7. Minimum Years as an Active Member of Relief Association 7 10 COMPLETE SECTION WHICH APPLIES (Lump Sum,Monthly Annuity,or Defined Contribution) . ILUMP SUM PENSION BENEFITS (or lump sum paid In Installments) Requirements for full vesting I 8. Number of Years of Service $ 20 9. Amount per Year of Service 9 $1.710.00 10. Do Bylaws Provide for Early Vesting? 10 ® Yes ❑ No Iii.Benefit payable for each year of service (check one) $1.00 or more but less than $50.00 11 12. $50.00 or more but less than $100.00 12 13. $100.00 or more but less than $200.00 13 I 14. $200.00 or more but less than $300.00 14 15. $300.00 or more but less than $600.00 15 16. $600.00 or more but less than $1,000.00 16 I 17. $1,000.00 or more but less than $2,000.00 17 1,710.00 18. $2,000.00 or more 18 MONTHLY ANNUITY PENSION BENEFIT I 19:Date of Most Recent Actuarial Valuation 19 8/16/1988 20.Date Filed with State Auditor" 20 1988 Requirements for full vesting I 21. Number of Years of Service 21 20 22. Amount per Month per Year of Service 22 $ 11.40 23. Do Bylaws Provide for Early Vesting? 23 ® Yes ❑ No I Benefit payable for each month of service (check one) 24. Less than $2.00 24• 25. $2.00 or more but less than $4.00 25 26. $4.00 or more 26 I27. Benefits after 20 years (amount per month of service) 27 $ DEFINED CONTRIBUTION(split-the-pie) . 28. Please submit a schedule of total assets accrued to each member's account and current 2$ ❑ Yes ❑ No year's calculation.Attach schedule. • INOTE: •All relief associations associated with a volunteer fire department and paying a monthly'annuity - must submit an actuarial survey every four years by July 1 of the year following the date of which the survey is prepared to the parties listed below. All relief associations associated with a salaried I (career)fire department must submit an actuarial survey annually by July 1 to the parties listed below. a) State Auditor c) Legislative Commission on Pensions and Retirement b) Your Municipality d) Legislative Reference Library I2 • If your relief association bylaws provide lump sum benefits, information for questions 7, 10 and 11 may be obtained by completing Schedules I, 11, and Ill. If your bylaws provide monthly annuity benefits, refer to your most recent actuarial - I survey.If your bylaws provide defined contribution benefits(split-the-pie),complete questions 1-9. FINANCIAL CONDITION SPECIAL FUND GENERAL FUND December 31, 1989 AMOUNT AMOUNT ASSETS tom) Omit c«,ul ," 1. Cash 1 (2203) 1 5744 _ 2. Investments • 2 5R24(18 2 95f90 3. Accrued Interest Receivable - 3 14RR1 3 21;2f3 4. Other Receivables 4 11110 • 4 51 454 li 5. TOTAL ASSETS 5 RfR394 5 . 1 RR71 R LIABILITIES AND FUND BALANCE - I 6. Payables 6 14RR 6 9R3 7. Required Reserves(Accrued Liability—Sch.1,line B,filed by Aug.1,1989) 7 R3R2R2 7 xxxxxxxxxxxxxx 8. Surplus or(Unfunded Accrued Liability)/Fund Balance 8 RRRdd 8 155463 9. Funding Ratio(line 5—line 6_line 7) 9 1121X 9 xxxxxxxxxxxxxx III� 10. Normal Cost — 1989 (Sch. 1, line C, filed by August 1, 1988).. 10 93n7d 10 xxxxxxxxxxxxxx 11. Required Contribution to Amortize Unfunded Accrued Liability.... 11 :[1– 11 xxxxxxxxxxxxxx CASH & INVESTMENTS DECEMBER 31, 1988 12 R7,5 85 12 i'gg034 112. 1 REVENUES 1989 AMOUNT AMOUNT 13. State Fire Aid 13 24770 13 xxxxxxxxxxxxxx ' 14. City Contributions 14 1131( 14 xxxxxxxxxxxxxx t 15. Members'Salary Deductions or Contributions • 15 15 xxxxxxxxxxxxxx f 16. Members'Dues 16 16 + 17. Interest Earned 17 4Ro160 17 _111113____ 18. Dividends 18 Rgd7 18 I 19. Transfers In 19 19 I 20. Other(Identify) SEE..A.T.ACHED..REP.OAT • 20 114 20 15358 21 TOTAL REVENUES(lines 13 through 20) 21 88606 21 26476 EXPENSES/EXPENDITURES 1989 AMOUNT AMOUNT I SERVICE PENSIONS Number 22 Retired (Number and Amount) (List names & amounts below)—11_22 52700 •22 xxxxxxxxxxxxxx 23 Survivors—Spouses and Children(Number and Amount) 23 23 xxxxxxxxxxxxxx I 24 Permanent Disability(Number and Amount) _24 24 xxxxxxxxxxxxxx OTHER BENEFITS 25 Sick or Temporary Disability(Number and Amount) 25 25 xxxxxxxxxxxxxx I 26 Death and Funeral(Number and Amount) 26 . 26 xxxxxxxxxxxxxx ADMINISTRATIVE EXPENSES 27. Salaries 27 27 300 28. Conventions and Meetings 28 28 I 29 Dues 29 29 30 Actuarial Valuation and Audit • 30 1430 30 31 Faithful Performance Bond 31 31 xxxxxxxxxxxxxx I 32. Other(Identify) SEE.A.TIACHED..REPDRI 32 5035 • 32 , 9747 i OTHER 33 Transfers Out 33 xxxxxxxxxxxxxxxx 33 34 Other(Identify) 34 34 35 TOTAL EXPENSES/EXPENDITURES(lines 22 through 34) 35 59165 35 10047 . 36. CASH AND INVESTMENTS DECEMBER 31. 1989 (line 12 +line 21 – line 35) 36 604926 36 155463 37 Was the Certification of Special Fund Financial Requirements for 1990 (Schedules 1, II, 111) certified to your municipal governing �y(for municipal fire department)or fire department(for independent nonprofit firefighting corporation)by August'',1989,in accordance Meth appropriate general law or special law? 0 Yes ❑No Please attach a copy of Schedules I,II,III to this report. • •Pensions Paid in 1989 Names Amount Paid • •SEE ATTACHED LIST $ $ 3 Firefighters Relief Association Reporting Form • Year Ended December 31, 1989 INVESTMENT REPORT PURCHASE INTEREST INSTRUMENT NUMBER TYPE OF AMOUNT DATE RATE NUMBER OF SHARES INVESTMENT NAME OF INVESTMENT 12.31-89 (CURRENT) // 1 1 e e i w t h e / K tre 4--• $ . 2 $ 1 3 $ 4 $ 1 5 $ 1 6 $ 7 $ 1 8 $ I9 $ 10 $ I 11 _ - $ 12 _ $ 1 13 $ 1 14 $ 15 $ 1 16 - $ 17 $ 1 18 $ 19 $ 1 20 $ IExplanation of column headings: Purchase Date The date the purchase was made • I Interest Rate The current interest rate(if applicable) Instrument Number The identifying number of the investment certificate Number of Shares For common and preferred stock investments/for bonds and CD's use face value I Type of Investment Certificate of deposit,common stock, bond,etc. Name of Investment Such as U.S.Treasury,or the name of the company in which stock was purchased Amount The purchase price including commissions,fees and any other applicable costs incurred 1 when buying the investment. Include reinvested interest. 1 4 , PENSIONS 1 Retired - 1990 1 Kahl $ 2,495 1 Kerber 2,736 1 Kreger 2,736 Kurvers 2,736 1 Leach 25,581 H. Meuwissen 2,736 1 R. Meuwissen 2,736 Peitz 2,736 Rojina 2,736 1 Schlenk 2,736 Windschitl 2.736 _1 TOTAL (11) $ 52.700 1 1 1 1 1 1 1 1 • CERTIFICATION BY SECRETARY AND TREASURER OF RELIEF ASSOCIATION• '' AND MUNICIPAL FIRE DEPARTMENT OR INDEPENDENT NONPROFIT FIREFIGHTING CORPORATION II We certify that to the best of our knowledge and belief, the facts presented in this report are true and correct. f - / � ., l ��Z) St/‘ w�� Ll c /5./ I Si e of ecretary of Relief Association Business Phone Dated 1 k 4,e. (G/L))22 *f r / \Signa re of Trees er of Relief Association Business Phone Dated I (612 ) 937 1900 �/ 9� Signature unicipal Clerk OR Business Phone Dated If Independent Nonprofit Firefighting Corporation . the Municipal Clerk of largest municipality in population contracting with Independent Nonprofit Firefighting Corporation I ( ) Signature of Secretary of Independent Nonprofit Business Phone Dated IFirefighting Corporation (if applicable) ICERTIFICATION BY INDEPENDENT PUBLIC ACCOUNTANT Pursuant to Minnesota Statutes Section 69.051 subdivision la(b), we have examined the preceding statements of I revenues, expenditure/expenses and fund balances of the Special Fund and the General Fund (page 3)and hereby certify that this is the financial condition of the Special Fund and the General Fund except as noted below: I • I GARY R BRAKKE GARY R BRAKKE LTD IPRINT NAME OF AUDITOR/ACCOUNTANT PRINT NAME OF FIRM 2567 COMMERCE MOUND MN 55364 1 PRINT ADDRESS OF FIRM fv`*�f //).' c; ?C • (612 ) 472-4800 5-30-91 SIGNATURE OF AUDITOR/ACCOUNTANT PHONE NUMBER DATED I 1. If an audit or a financial statement is available,please submit it along report. with this re 2. Are the additional required schedules attached? 1 . I 5