Agenda Packets - 2025/05/11 - Laserfiche WebLink

Home Browse Search

NOTE 9—DEFINED BENEFIT PENSION PLANS—STATE-WIDE(CONTINUED) The $124,335 reported as deferred outflows of resources related to pensions resulting from city contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending December 31, 2026. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Pension Year Ending Expense December 31, Amount 2026 $ (142,936) 2027 $ (206,127) 2028 $ (154,168) 2029 $ (79,113) 2. PEPFF Pension Costs At December 31,2025,the City reported a liability of$1,777,089 for its proportionate share of the PEPFF's net pension liability. The net pension liability was measured as of June 30, 2025, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City's proportionate share of the net pension liability was based on the City's contributions received by the PERA during the measurement period for employer payroll paid dates from July 1, 2024 through June 30, 2025, relative to the total employer contributions received from all of the PERA's participating employers. The City's proportionate share was 0.1517 percent at the end of the measurement period and 0.1543 percent for the beginning of the period. The state of Minnesota contributed $18.0 million to the PEPFF in the plan fiscal year ended June 30,2025.The contribution consisted of$9.0 million in direct state aid that meets the definition of a special funding situation and $9.0 million in supplemental state aid that does not meet the definition of a special funding situation. The $9.0 million direct state aid was paid on October 1, 2024. The direct state aid payment will increase by $17.7 million, which was paid on October 1, 2025. Thereafter,by October 1 of each year,the state will pay$26.7 million to the Police and Fire Fund until the fund is 110.00 percent funded for a minimum of three consecutive years (on an actuarial value of assets basis). The $9.0 million in supplemental state aid will continue until the fund and the State Patrol Plan (administered by the Minnesota State Retirement System) are 100.00 percent funded for three consecutive years (on an actuarial value of assets basis). The state of Minnesota's proportionate share of the net pension liability associated with the City totaled $61,603. City's proportionate share of the net pension liability $ 1,777,089 State's proportionate share of the net pension liability associated with the City 61,603 Total $ 1,838,692 -54-