HomeMy WebLinkAbout#3 CC 4 5 16 GASB 67 68 Actuarial Study ReportMAYOR AND COUNCIL COMMUNICATION
DATE: 4/5/16
CONSENT
ITEM: #3
AGENDA ITEM: Accept 2015 Lake Elmo Fire Relief Association Actuarial Study Report
SUBMITTED BY: Cathy Bendel, Finance Director
THROUGH: Cathy Bendel, Finance Director
REVIEWED BY: Steve Rutkowski, Lake Elmo Fire Relief President
SUGGESTED ORDER OF BUSINESS:
- Introduction of Item ................................................................................ Finance Director - Report/Presentation ................................................................................ Finance Director
- Questions from Council to Staff ............................................................ Mayor Facilitates
- Public Input, if Appropriate ................................................................... Mayor Facilitates - Call for Motion .............................................................................. Mayor & City Council
- Discussion ..................................................................................... Mayor & City Council
- Action on Motion .................................................................................. Mayor Facilitates
FINANCIAL IMPACT: None
BACKGROUND AND STAFF REPORT:
In 2014, a new GASB requirement was put into place requiring an actuarial study to be done on the Fire
Relief pension funds. This new requirement was effective 1/1/2015 and a full study is required every two
years, with a partial study required in the off year. In order for the City to receive a clean audit opinion,
this actuarial study will need to be done each year beginning with 2015.
At the October 5, 2015 Fire Relief meeting, Finance Director Bendel presented this information to the
Fire Relief Board and proposed that in the years where the Fire Relief receives supplemental state aid
funds from the State, above the annual base state aid, that the Fire Relief would fund this cost. In the
years where supplemental funds are not received, there would be a follow up discussion as to the specific
funding. This is how many other Cities are handling the funding.
On November 5, 2015 the City Council approved entering into a contract with Hildi Inc.
The 2015 Actuarial study reported that the Pension Plan is financially healthy and funded at
approximately 165% of plan assets.
RECOMMENDATIONS:
Accept the 2015 Lake Elmo Fire Relief Association Actuarial Report.
ATTACHMENTS:
1. Actuarial Report from Hildi Inc.