Centerville 2010 Financial Report

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CITY OF CENTERVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDEDDECEMBER 31, 2010 Note 4:DEFINED BENEFIT PENSION PLANS - STATEWIDE - CONTINUED B.Funding policy Minnesota statutes, chapter 353 sets the rates for employer and employee contributions. These statutes are established and amended by the State legislature. The City makes annual contributions to the pension plans equal to the amount required by Minnesota statutes. GERF Basis Plan members and Coordinated Plan members were required to contribute 9.10 percent and 6.0 percent, respectively, of their annual covered salary in 2010. In 2010, the City was required to contribute the following percentages of annual covered payroll: 11.78 percent for Basic Plan GERF members and 7.00 percent for Coordinated Plan GERF members. Employer contribution rates for the Coordinated Plan will increase to 7.25 percent, effective January 1, 2011. The City’s contributions to the GERF for the year ended December 31, 2010, 2009 and 2008 were $44,431, $40,832, and $35,321, respectively. The City’s contributions were equal to the contractually required contributions for each year as set by Minnesota statute. The City only has coordinated members and will begin contributing 6.25 percent of their salaries to PERA starting in 2011. Note 5: JOINT POWERS AGREEMENTS A.Centennial fire district The Centennial Fire District (the District) was formed under the authority of Minnesota statutes 471.59 in 1985 by agreement of the member cities of Centerville, Lino Lakes and Circle Pines. The district was created to provide fire protection services to the residents of the member cities. The District is managed through a three tier system consisting of a fire chief, a steering committee, and the Councils of the member cities. The fire chief is an appointed position. Each member city appoints two commissioners. One of these commissioners must be an elected official of the city. Each member city contributes funds to cover the budgeted costs of operations as determined by the commissioners. The amount of contributions required by each member is based on each city’s population, number of fire calls, and assessed valuations. Contributions made by member cities for 2009, the most recent data available, were as follows: City of Centerville$ 114,302 %15.37 City of Circle Pines 128,527 17.28 City of Lino Lakes 501,036 67.35 Total$ 743,865100.00% Volunteer firefighters of the District are members of the Centennial Firefighter’s Relief Association (the Association). The Association is a single-employer pension plan (the Plan) that operates under the provisions of Minnesota Statutes 69 and 424, as amended. It is governed by a board of six officers and trustees elected by the members of the Association for three-year terms. The ex-officio, non-voting members of the Board of trustees are two representatives from the Centennial Fire Steering Committee and the fire chief of the District. The Association issues a publicly available financial report that includes financial statements and required supplementary information. The report may be obtained by writing to the Centennial Fire District 7741 Lake Drive, Lino Lakes, MN 55014. -66-