2008-06-25 CC Packet - Laserfiche WebLink

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CITY OF CENTERVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31,2007 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. PERF Basis Plan members and Coordinated Plan members were required to contribute 9.10 percent and 5.75 percent, respectively, of their annual covered salary in 2007. Contribution rates in the Coordinated Plan will increase in 2008 to 6.0 percent. The City is required to contribute the following percentages of annual covered payroll: 11.78 percent for Basic Plan PERF members and 6.25 percent for Coordinated Plan PERF members. Employer contribution rates for the Coordinated Plan will increase to 6.5 percent effective January 1,2008. The City's contributions to the PERF for the year ended December 31, 2007, 2006 and 2005 were $33,078, $30,189, and $26,421, respectively. The City's contributions were equal to the contractually required contributions for each year as set by Minnesota statute. 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 CentervilIe, 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 ofa 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 offrre calls, and assessed valuations. Contributions made by member cities for 2007 were as follows: City of Centerville City of Circle Pines City of Lino Lakes $ 96,595 133,004 513,436 13.00 % 17.90 69.10 Total $ 743,035 100.00 % 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. -38-