HomeMy WebLinkAbout4.B.3 Approval of Resolution No. 7399, Establishing an Annual Pension Increase for the Shakopee Fire relief Association, for the years 2014, 2015 and 2016 Consent Business 4. B. 3.
SHAKOPEE
TO: Mayor and City Council
Mark McNeill, City Administrator
FROM: Julie Linnihan, Finance Director/City Clerk
DATE: 12/17/2013
SUBJECT: Approval of Resolution No. 7399, Establishing an Annual Pension Increase for the
Shakopee Fire Relief Association, for the Years 2014, 2015 and 2016. (C)
Action Sought
Request council to consider and approve Resolution No. 7399, allowing for an annual increase of
$100 per year, to the existing pension amount of$7,500 per firefighter, per year of service.
Background
Following the approval of the 2014 Budget and Property Tax Levy, staff is requesting the
approval of the attached resolution, providing for the increase to the Shakopee Fire Relief
Association Pension. This issue was reviewed and discussed with Council during the budget
process, and this action will provide the documentation, specific to the Relief Association
pension.
Recommendation
Staff recommends the consideration and approval of Resolution No. 7399.
Budget Impact
During the 2014 budget process, staff requested Council to consider the request for an increase in
the pension amount. The existing pension level is established at$7,500. This amount has not been
increased or addressed since 2005. The pension fund receives funding from the State of
Minnesota State Fire Aid, the City of Shakopee Municipal Contribution and investment earnings.
As was reviewed previously with Council the pension obligation is currently funded at
approximately 96 %. The anticipated earnings on investments for 2013 is positive, and based on
the early estimates for this request, the impact to the City budget will be approximately $2000.
The annual funding levels requested are as follows:
•2014 $7,600
•2015 $7,700
.2016 $7,800
Relationship to Vision
Goal C: Maintain the City's strong financial health
Requested Action
Request Council to consider and approve Resolution No. 7399, Establishing an Annual Pension
Increase for the Shakopee Fire Relief Association, for the years 2014, 2015 and 2016.
Attachments: Res.No. 7399
RESOLUTION NO. 7399
A RESOLUTION ESTABLISHING AN ANNUAL PENSION INCREASE FOR THE
SHAKOPEE FIRE RELIEF ASSOCIATION,FOR THE YEARS 2014,2015 AND 2016
WHEREAS,the current level of funding for the Shakopee Fire Relief Association has
been established at$7,500 per year of service, since the most recent City Council action of 2005;
WHEREAS,the Shakopee Fire Relief Association has requested an increase of$100 per
year for the years 2014,2015 and 2015,resulting in an annual per year amount of$ 7,600;
$7,700 and$7,800 respectively;
WHEREAS,the Association agreed at a recent meeting in September,2013 to request
such increase to the City Council as a component of the 2014 Budget process;
WHEREAS,the Association was determined to have sufficient funding in the pension
fund following the 2012 Annual Audit,which disclosed a funding rate of 96 % of the Pension
Benefit Obligation;
BE IT FURTHER RESOLOVED,BY THE MAYOR AND CITY COUNCIL OF THE CITY
OF SHAKIOPEE,MINNESOTA,that it hereby approved the $100 per year annual pension
increase for the years 2014, 2015 and 2016,to the rates of$7,600; $7,700 and $7,800
respectively for future year budgets.
Adopted in regular session of the City Council for the City of Shakopee,Minnesota held this 3`d
day of December, 2013.
Mayor of the City of Shakopee
ATTEST:
City Clerk