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CITY OF LAKE ELMO, MINNESOTA
<br />NOTES TO THE BASIC FINANCIAL STATEMENTS
<br />DECEMBER 31, 2024
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<br />NOTE 4 DEFINED BENEFIT PENSION PLAN – FIREFIGHTERS RELIEF ASSOCIATION (Continued)
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<br />The plan is funded in part by fire state aid and, if necessary, City contributions. The State of Minnesota distributed to the City
<br />$145,484 in fire state aid, which the City remitted to the Relief Association during the year ended December 31, 2024. Required
<br />employer contributions are calculated annually based on statutory provisions. The City did not have a statutorily-required
<br />contribution to the plan for the year ended December 31, 2024.
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<br />Pension Costs
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<br />At December 31, 2024, the City of Lake Elmo reported a net pension asset of $656,675 for the Firefighters Relief Association’s
<br />plan. The net pension asset was measured as of December 31, 2023, as determined by an actuarial valuation as of January 1,
<br />2023.
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<br />For the year ended December 31, 2024, the City recognized pension expense of negative $148,544 for the Association. The
<br />City also recognized $118,613, as pension expense (and grant revenue) for State of Minnesota’s contributions to the Association
<br />during the measurement period.
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<br />The following table presents the changes in net pension asset during the measurement period.
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<br />Total Pension Plan Fiduciary Net Pension
<br /> Liability Net Position Liability (Asset)
<br />Beginning Balance 12/31/22 708,203$ 1,273,445$ (565,242)$
<br />Service Cost 39,919 - 39,919
<br />Interest on Pension Liability 41,648 - 41,648
<br />Projected Investment Earnings - 75,039 (75,039)
<br />Contributions (State)- 118,613 (118,613)
<br />Asset (Gain)/Loss - (12,802) 12,802
<br />Benefit Payouts (47,604) (47,604) -
<br />Administrative Fee - (7,850) 7,850
<br />Net Changes 33,963 125,396 (91,433)
<br />Balance End of Year 12/31/23 742,166$ 1,398,841$ (656,675)$
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<br />At December 31, 2024, the City of Lake Elmo reported deferred outflows of resources and deferred inflows of resources related
<br />to the pension from the following sources:
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<br />Deferred Outflows of Deferred Inflows of
<br />Resources Resources
<br />Differences between expected
<br />and actual economic experience -$ 140,050$
<br />Changes in actuarial assumptions 5,248 11,554
<br />Difference between projected
<br /> and actual investment earnings 124,232 -
<br />Total Deferred Outflows/Inflows 129,480$ 151,604$
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