Loading...
HomeMy WebLinkAbout09.13.05 Work Session Packet City of Farmington 325 Oak Street Farmington, MN 55024 Mission Statement Through teamwork and cooperation, the City of Farmington provides quality services that preserve our proud past and foster a promising future. AGENDA CITY COUNCIL WORKSHOP SEPTEMBER 13, 2005 5:00 P.M. CITY COUNCIL CHAMBERS 1. CALL TO ORDER 2. APPROVE AGENDA 3. CATARACT FIRE RELIEF ASSOCIATION PENSION 4. COMMUNICATION PLAN 5. ADJOURN PUBLIC INFORMATION STATEMENT 'ouncil workshops are conducted as an informal work session, all discussions shall be considered fact-finding, hypothetical and unofficial critical thinking exercises, which do not reflect an official public position. Council work session outcomes should not be construed by the attending public and/or reporting media as the articulation of a formal City policy position. Only official Council action normally taken at a regularly scheduled Council meeting should be considered as a formal expression of the City's position on any given matter. Facts & Fif!ures On Citv's Contribution To Relief Association ty's Previous 3-Year Plan On Contribution To The Relief Association Based On 36 Members: 36 Members at the City's Contribution of $45,000 = $1,250 per member. 1996 36 Members at the City's Contribution of $50,000 = $1,388 per member. 1999 36 Members at the City's Contribution of $55,000 = $1,528 per member. 2002 . 36 Members at the City's Contribution of $60,000 = $1,667 per member. 2005 Roughly a 9% increase every 3-years, or 3% each year. The Spiral Down Effect If We Continue To Stay On This Course: 44 Members at the City's Contribution of $60,000 = $1,364 per member. 19% Decrease 46 Members at the City's Contribution of$60,QOO = $1,304 per member. 21%'Decrease 48 Members at the City's Contribution of $60,000 = $1,250 per member. 25% Decrease 50 Members at the City's Contribution of $60,000 = $1,200 per member. 28% Decrease 52 Members at the City's Contribution of $60,000 = $1,154 per member. 30% Decrease City's Per 3% Y~ar # of Members Contribution Member Increase Benefit . 1996 36 $45,000 $1,250 $1,600 1997 36 $45,000 $1,250 $1,287 $1,650 1998 36 $45,000 $1,250 $1,326 $1,750 1999 36 $50,000 $1,388 $1,365 $2,000 2000 36 $50,000 $1,388 $1,406 $2,300 2001 37 $50,000 $1,351 $1,449 $3,000 2002 38 $55,000 $1,447 $1,492 $3,000 2003 40 $55,000 $1,375 $1,537 $3,000 2004 42 $55~000 $1,310 $1,583 $3,050 2005 44 $60,000 $1,364 $1,630 $3,200 2006 44 ? $60,000 $1,364 $1,667 ? 2006 46 ? $60,000 $1,304 $1,667 ? 3aJD 2006 48 ? $60,000 $1,250 $1,667 ? 2006 50 ? $60,000 $1,200 $1,667 ? 2006 52 ? $60,000 $1,154 $1,667 ? Proposed City Contribution Based On The Number Of Actual Members: 44 Members at the City's Contribution of $73,348 = $1,667 per member. 46 Members at the City's Contribution of $76,682 = $1,667 per member. 48 Members at the City's Contribution of$80,016 = $1,667 per member. 50 Members at the City's Contribution of$83,350 = $1,667 per member. 52 Members at the City's Contribution of $86,684 = $1,667 per member. c o ~ .2' :0 o c o 'w c Ql a. '0 ~ Ql "e- o. '0 c C o <tI ~ en <tI Ql TS S o~ CUl'O .9~ffi ~'ti3 ~ .-= w E8!ui ~u~ o~~ z. i:3 '00 Ql~ ....0 ~N "" Ul Ql 'OC1J QlO ""0 <tiN .!;; 1ii Ql 'OtO QlO ""0 ~N ~ '01'- QlO ""0 ~N 1ii Ql 'OCD QlO ""0 ~N "" Ul Ql '0 I!) QlO ""0 .~N 1ii Ql .... o o N M o o N N o o N o o N o o o N C1J C1J C1J ~ to C1J C1J ~ I'- m C1J ~ CD C1J C1J ~ co I'- e ~ ~ N O....~ ONM 01'-.... g~;i ~ I!) M .... e to C1J. OtOI'- Ol'-~ O~N .nooai CD~I'- ~ C1J I!) to N I!) to. o CD"" OM~ Ol'-~ .n";"; CD~I'- ~ .... I!) I'- N .... 1'-. 01!)0 00'l~ aMI'- a -r-- a) CD~CD .- ~ .- CD. N CD. 00.... o I!) CD O~tO g~lt ~ ~ 10 00 O'l C'1. 000 000 000 e.nri CDOCD ~ o o to. 10 N. aNI'- OMCD OtOO'l li)~"""~a:S 1O~~ to I'- CD. o C1J 01'-.... o I!) to o CD 0 .n"':ri I!)I'-M N .... ~ M cD I!) O'l acoN ONCD 00'l.... .neoo I!) CD CD ~ ~ o CD CD. r::: q, o l'-- co~ OCDI!).... o tOtO O'l c5~m""': I!)I!).... ~ ~ I'- I!) to e o ~ OMN OtO.- OMM om..n I!)MO ~ ~ C1J CD ~ ri o to 01'-'- ONCD aMI'- or--:ai I!)MN N M to CD. N CD OCDCD OCDO'l OI'-l'- .n.nN ....MO .- to CD I'- cD U; 0000 O<Ot-N 0C1J....'</" .nN";N ....MtO CD N I!) ...: N .... 0001!) O~CO"'l:t O.......lO,.... LfiN~..,..: ....MI!) 1ii .- Ul 0> <l>'~ '- .~g ~ 11 U(/)WO Ql ::l c Ql > Ql 0:: ~ <tI ::l C <tI ...., ~ C <tI co CO I!) I!) ~ r::: N CD O'l M N CD N u; to ri I!) N I!) o ~ :; N .... o ri M N o o o 00 N N O'l C1J 1'-. ~ M :; I'- .n CD M ~ I!) N I!) o I!) o cD .... C1J N C1J .n ~ to to o cD M N CD I!) ri to ~ o It) to .,; CD ~ I!) M .... e M ~ ]9 o I- o o I!). N .- o I!) o ...: N ~ I!) I'- N. N ~ o o o cD N .- r::: to cD o ~ ~ ~ ai CD ~ o o I'- N o o o ...: CD C1J .... M e ~ o o .... 00 ~ I!) <0 to ...: I!) M C1J ~ :; '0 'tV a. J!l u:: Ql c Ql Ql BCO 'C c Ql ~ W o o o .n o o o .n o o o .n o o o .n o o o .n o o o .n C1J I!) ~N I!) .n C1J .- C1J N N o .- N CD C1J N N C1J0 C1JN I'- .- N CD I'- o N o It) o N c Ul .2 ~ <tI .- .l:>~ .~ Q) .~ ~ Q) E05 ~O:O o o I!) cD N ~ o I!) o N M ~ I!) I'- N cD N ~ o o o. M .- r::: to. ~ ~ ~ o o o .n to to C1J .,; I'- ~ C1J ~ CD .n N o ~ N CD C1J N ai CD to CD N ri ~ o o .... 00 ~ CD I'- o N ~t C1J ai I!) M C1J .- :; ]9 o I- CD M .... .n I!) N N co I'- e ~ ~ N I!) M .... e to Cl'!. C1J I!) to N I!) to. .... I!) I'- N .... 1'-. .- ~ ~ N ~ ~ 10 00 C1J M. o o to. 10 N. to I'- ~ o C1J .... .- M cD I!) C1J o CD CD. r::: a. I'- I!) to e o .- C1J CD .- ri o to M <0 CD. .- N CD to CD I'- cD U; M Qj .0 E ~ Ql o ~ C <tI co co o I!) I!) ri C1J M N o o ..... r::: ~ N N I'- C1J 00 o N o o CD N o C1J. <') M cO co. N .... N ri <') 1'-. o M .... N N CD. o o C1J cD to I!). .... o C'1. M ..... ~ ai .- C'1. ;xli M ri I'- "!. N co ...: o to I'- I!) I'- ri CD CD N .... CD. .- 10 o to M .,; to I!) Ul C o 1ii .2' :0 o C Ql E ~ "" 8! ~ .- .- 00 M .- en eft. .- N CD r-.: e C1J !e. r::: M I!) 00 e :; I'- ai :::!:. a;- I!) I!) .n t::. M CD. .- .- .- a;- co ri N ~ a o .- .n N e co N CD ai N e a M o ri CD e ~ N 1'-- o ~ I!) .... o ri C1J N N :; ai M .- :;;: o e .- N .- CD ...: !e. aJ 0> ~ o .c 2- '" Ul Ql ~ W ~ ~ ct o lO o ~. ~ o lO <l:l C') ~ ~ o .- cO C1J lO "- <0 C') ~ ~ ~ r-.: C1J o o lO C') ~ ~ o to ul C1J ~ o CD '" C1J ~ ~ <ri to ~ o I!) oi I'- ~ o o '" CD ~ o I!) N I'- ~ ~ ..t to ~ o M <ri M .- '# C! N .- "#. ~ o ~ ~ ~ cO to N I co ,.... o lO l'1 C') ~ o o N C') ~ o lO o C') ~ o o o C') ~ o o o C') E .E 5~ ~Il) ~gl 0.0 E= 8 ~ ~.e c ~ g.Q <tI gl ~ ffi 00. Ql ""E >- .. -5 28 <tI .l.92 Ql en.l.9 ,Ql Ql(/)~~ 5ai<tl~ :g,g'O Ql l'i.l.9.!!l1ij5j <tIC<tll'-.o Ql~~OQl >-Qj_ 05 Mo.-gNO ~ Ql Ql .5 .... ~:6m$~ Ql .!!! ~ Qj m g~gj5lL.: ~1-.Q5~~ fh~~Oi::JCU ~ma.E2~ Ul >-Ql o><tI5 Ql-55'ti~ ~<UC~~~ Q)Q)ouro.m 13"#.EQl'O.c .S 1.0 =' :; c ~ ocwiQ)C:ro~ T""'">.'-jYoq:: ~.c(iju;~N ,U)2ot""ilO CD51cEwcD gm;oro8 N 00 ~QiN g .5 :! m iii .5 +::"0 co >.- f/) .5<(&i3~!! '-QlQl<tlQl.c -E .!: '" Ql 5i 0> SU. g>:;.o~ ~ ~"E g. ~ ~ oc71 m l1?il~ U)CI)U)U)(/)U) Ql Ql Ql Ql Ql Ql EEEEEE ~ :J :J :;:] ::s :J ~~~~~~~ Q~~~~~~ I-.-NM....I!)CD a. :2 ;j (/) en <( ~ o o o ri ~ o o <"'l N ~ o o o N ~ o ~ ,.: ~ o lC) <0 .,.: ~ o o <0 .,.: ~ Qi > 2 ~ Communications Discussion Outline The following are discussion items for developing a communication plan. I. Clarify Team Concept a. Agree on how to disagree b. Present a unified front - even in disagreements II. Clarify Council Role a. Craft the message b. Understand the message c. Deliver the message 1. A single point of contact - City Administrator 2. Minimize inconsistent language d. Support the messenger 1. Actively verbalize support 2. Passively support - do not criticize III. Administrator Role a. Deliver the message b. Select a method of communication or media c. Report back results Goals Program Hie:hest Priority Goals 1. The need to stimulate and promote increased industrial and commercial development and redevelopment. 2. The need to address the City's transportation issues. 3. The need to develop a short-term (two-year) work plan. 4. The need to continually work on maintaining good communication with the public (being honest and realistic). 5. The need to improve the City's municipal buildings. 6. The need to improve communication and collaboration with other public jurisdictions. Other Goals 7. The need to continue to provide a positive work environment for employees. 8. The need to develop a mid- to long-term (5-10 year) vision, goals, and work plan for the City. 9. The need to improve internal communications and teamwork. 10. The need to promote and maintain citizen involvement and volunteerism. One:oine: Goals 1. To ensure the continuing financial stability of the City (adapting to changes in the state's fiscal situation). 2. To manage the City's growth to ensure high quality and diverse development. 3. To improve the City's aging infrastructure. 4. To expand the City's recreational opportunities and facilities (City Hall, Community Center, etc.). 5. To preserve the heritage and atmosphere of the past (small town feeling, know your neighbors, friendly, historic buildings, etc.) 6. To utilize new technologies when and where appropriate. 7. To enhance the City's aesthetics (trees, street lights, flowers, etc.). 8. To provide a positive work environment for employees (teamwork - good communication, etc.). Values Statement Excellence and Quality in the Delivery of Services We believe that service to the public is our reason for being and strive to deliver quality services in a highly professional and cost-effective manner. Fiscal Responsibility We believe that fiscal responsibility and the prudent stewardship of public funds is essential for citizen confidence in government. Ethics and Integrity We believe that ethics and integrity are the foundation blocks of public trust and confidence and that all meaningful relationships are built on these values. Open and Honest Communication We believe that open and honest communication is essential for an informed and involved citizenry and to foster a positive working environment for employees. Cooperation and Teamwork We believe that the public is best served when departments and employees work cooperatively as a team rather than at cross purposes. Visionary Leadership and Planning We believe that the very essence of leadership is to be visionary and to plan for the future. Positive Relations with the Community We believe that positive relations with the community and public we serve leads to positive, involved, and active citizens. Professionalism We believe that continuous improvement is the mark of professionalism and are committed to applying this principle to the services we offer and the development of our employees. 325 OAK STREET FARMINGTON MN 55024 F ARMlNTONFIRE DEPTARMENT CATARACT RELIEF ASSOCIATION Septernber13,2005 MAYOR AND CITY COUNCIL 325 OAK STREET FARMINGTON MN 55024 Dear: Mayor, Council Members and City Staff The board of the Farmington Fire Department Cataract Relief Association met on July 26th 2005 with the City Administrator and the City Finance Director to discuss thefataract Relief Association pension request for 2006. On July 27th 2005 the ~~t~ract Relief Association submitted the request to increase the years of service ~~si9n~orm $3,200.00 dollars per year of service to $3,500.00 dollars per year of ~,~M~~i~~ the City of Farmington's contribution from $60,000.00 to $65,000.00 ~~~~;~e Cataract Relief Association Board Members reasoning behind this ~~qU~sti'Will be made clear in the documents contained in this packet. '~~...'area that is not documented is the recruitment and retention of Volunteer Fire ~~g.~t~rS, the ever growing demand for training by the NFP A, OSHA, FEMA and (:)t~t?J'government agencies has increased the time requirements of the fire service volunteer. It is the belief of the Cataract Relief Association Board and the Officers of the Farmington Fire Department that pension benefits play an important roll in recruiting and retaining quality fire department members. With the help and support of the Mayor, Council Members, and City Staff the continued success of the Farmington Fire Oepartment and its reputation for meeting the needs of the tax payers of this rapidly expanding community will remain at the highest level possible. ..... . . '. . . . . . . . . . . . . . . . . . . . . September 13, 2005 Page 2 Table of Contents Organization............................................. ............... ........ 3 Comparable Fire Department Pensions for 2003. . . . . . . . . . . . .. . . .. . . . . .. .. 4 Currant Account Balances... ... ... ......... ... ... ... ... ... ... ......... ... .... 5 City Contribution / relief membership growth worksheet. . . . . . . . . . . . . . . . 6 History of City Contribution and member benefit. . . . . . . .. . . . . . . . . . . . . . . . . 7 2005 Maximum Benefit Worksheet.. . . .. . . . . . . . . . . . . . .. .. . .. . ... . . . . .. . . .... 8 Looking towards the future... ... ... ...... ...... ... ... ...... ... ... ... ... ... 9 2 S~ptember 13, 2005 Page 3 Farmington Fire Department Cataract Relief Association Organization Structure Elected Officials Position 1. William Sauber President 2. Tim Pietsch Vice President 3. Tom Hemish Secretary 4. Jay Clinkscales Treasurer 5. Daniel Meyer Trustee 6. Kevin Kuehn Trustee Ex-Offico Position 1. Kevan Soderberg 2. Robin Roland Mayor Acting City Administrator Fire Chief 3. Kenneth Kuchera The Cataract Relief Association is a governmental entity that receives and manages public money to provide retirement benefits for individuals providing the governmental services offirefighting and emergency first response. 3 September 13, 2005 Page 4 Using the most currant data available form the Office of the State Auditor showing 2003 statistics we have compiled a list of suburban cities for comparison. The average line on the chart represents the approximant population, and number of fire fighters the City of Farmington has. in 2005. The Cataract Relief Association pension amount is $1,300.00 dollars less than the average. The Cataract Relief Association projected year end 2005 assets the funding ratio will be approximately 95 to 98% six to nine percentage points higher than the average. The City of Farmington's currant $60,000.00 contribution is approximately $5,000.00 dollars less than the average. And the State Aid is lower by almost $17,000.00 dollars less than the average, however the estimated 2005 State Aid is a conselVative 5% over last years $104,562.00. ComlJarable Fire Department Pensions For 2003 - - Population 2000 Total Pension Fundina City ~ Sensus Members Amount .Bmi2 Contribution State Aid Bay Port 3,162 24 $4,750.00 101.00% $6,595.00 $73,216.00 ~'L River 16,447 30 $3,575.00 98.00% $24,100.00 $112,146.00 1St Lake 6,798 30 $4,100.00 70.00% $42,943.00 $96,397.00 "olden Valley 20,281 44 $6,000.00 96.00% $79,980.00 $126,456.00 Hopkins 17,145 37 $5,500.00 107.00% $30,766.00 $79,403.00 Hastings 18,204 46 $3,750.00 98.00% $8,538.00 $135,201.00 New Brighton 22,206 37 $4.300.00 88.00% $41,200.00 $103,253.00 Northfield 17,147 30 $5,800.00 88.00% $42,192.00 $104,041.00 Oakdale 26,653 46 $3,600.00 101.00% $36,293.00 $123,796.00 Owatona 22,434 32 $3,500.00 81.00% $26,404.00 $121,681.00 Prior Lake 15,917 35 $3,800.00 102.00% $20,000.00 $124,727.00 Rosemount 14,619 42 $3,900.00 104.00% $135,000.00 $79,949.00 Shakopee 20,568 45 $5,750.00 66.00% $222,471.00 $130,576.00 Lakeville 43,128 77 $5,300.00 97.00% $48,467.00 $220,209.00 Apple Valley 45,527 72 $4,500.00 73.00% $157,755.00 $226,126.00 White Bear Lake 24,325 50 $5,500.00 91.00% $19,043.00 $189,173.00 Savage 21,115 36 $3,975.00 67.00% $161,112.00 $106,748.00 Average's 20,922 42 $4,564.71 89.88% $64,874.06 $126,652.82 Fal1T1ington 2005 30,000 with year end TownShips 43 $3,200.00 95-98% $60,000.00 $109,790.00 4 September 13, 2005 Page 5 Account balances do not include the City of Farmington 2nd half contribution of $30,000.00 dollars or the 2005 State Aid contribution of (estimate) $110,000.00 ANCHOR BANK Account Name Account Number Previous Balance Balance Statement Date TOTAL $ 13,631.04 CASTLE ROCK BANK Account Name Account Number Previous Balance Balance Statement Date TOTAL $ 4,413.75 NEW YORK LIFE Account Name Account Number Previous Balance Balance Statement Date TOTAL $ 160,418.69 6/30/2005 MINNESOTA STATE BOARD OF INVESTMENT Account Name Account Number Previous Balance Balance Statement Date TOTAL $ 243,181.31 8/31/2005 AMERICAN EXPRESS Account Name Account Number Previous Balance Balance Statement Date TOTAL $1,038,970.15 7/31/2005 GROUP TOTAL $1,460,614.94 7/31/2005 5 Q!y's Contribution Too Relief Association City's 3- Year Plan Too Relief Association Based On 36 Members: 36 Members at the City's Contribution of $45,000 = $1,250 per member. 1996 36 Members at the City's Contribution of $50,000 = $1,388 per member. 1999 36 Members at the City's Contribution of $55,000 = $1,528 per member. 2002 36 Members at the City's Contribution of $60,000 = $1,667 per member. 2005 R(Jughly a 9% increase every 3-years, or 3% each year. . **.*****.*************.******.***************....*.*.**..*..*.*.......*......** The Effect This Plan Has Had With Increasin2 Members: 2005 44 Members: City's Contribution of $60,000 = $1,364 per member. 19% Decrease 2006 48 Members: City's Contribution of $60,000 = $1,250 per member. 25% Decrease 2007 52 Members: City's Contribution of $60,000 = $1,154 per member. 30% Decrease 6 Historv Of Ci/v Contribution And Member Benefi!. City's Per 3% Year # of Members Contribution ,Member Increase Benefit . 1996 36 $45,000 $1,250 $1,600 1997 36 $45,000 $1,250 $1,287 $1,650 1998 36 $45,000 $1,250 $1,326 $1,750 1999 36 $50,000 $1,388 $1,365 $2,000 2000 36 $50,000 $1,388 $1,406 $2,300 2001 37 $50,000 $1,351 $1,449 $3,000 2002 38 $55,000 $1,447 $1,492 $3,000 2003 40 $55,000 $1,375 $1,537 $3,000 2004 42 $55,000 $1,310 $1,583 $3,050 2005 44 $60,000 $1,364 $1,630 $3,200 2006 48 ? $60,000 $1,250 $1,678 ? $3,500 2007 52 ? $60,000 $1,153 $1,728 ? ********************************************************************************** City Contribution For 2006 Based On The Actual MembersINumbers: 48 Members at the $1,678 per member, City's Contribution would be $80,544. 52 Members at the $1,728 per member, City's Contribution would be $89,856. ********************************************************************************** Cataract Proposed Citv Contribution And Benefit For 2006: * $65,000, Which divided into the 48 members = $1,354 per member. * Benefit Increase From $3,200 To $3,500 Per Year Of Service 7 2005 Maximum Benefit Worksheet (MBW-05) Cataract Fire Relief Association 1. Indicate your plan type here: I Lump Sum 2. Enter data in columns A, B, C and D for each year requested. A B C D E .------------------- -------------------- -------------------- -------------------- -----------------~-- State Fire Aid Active Members Per Year (Received or Municipal 10% of in Relief Average Receivable) Contribution Surplus * Association [( A + B + C ) I D] (From RF-04) (From RF-04) (SC-04 or Actuarial) (From RF-04) 2004 104,562 55,000 0 40 3,989 (From RF"()3) (From RF"()3) (SC-03 or Actuarial) (From Rf"()3) 2003 77,657 55,000 0 38 3,491 (From RF"()2) (From RF"()2) (SC-02 or Actuarial) (From RF-(2) 2002 60,928 55,000 0 36 3,220 * If deficit for the year, leave blank. Average available financing per active member for the most recent 3-year period: (sum of column E divided by 3) Maximum Lump Sum Benefit Level under Minn. Stat. ~ 424A.02, subd. 3 3,567 6,600 Maximum Monthly Benefit Level under Minn. Stat. ~ 424A.02, subd. 3 N/A --....--.'.----.---------.--.......-.-....-.--.--..---....--.---.......-----........-.......----...--..---------...-...-...-..-.-.------.-.-. Relief Officer Certification On or before August 1, the average amount of available financing per active member for the most recent three-year period was calculated in accordance with Minn. Stat. ~ 424A.02, subd. 3, and certified to the governing body of the applicable qualified municipality. Signature of Relief Association Officer Date Print Name and Title Please retain a copy of this fonn and return the signed original to: State Auditor's Office, Pension Division. 525 Park Street. Suite 500, Saint Paul, MN 55103. Fax: (651) 282-5298 Phone: (651) 282-6110 8 September 13, 2005 Page 9 In closing, we are grateful for the opportunity to meet with you today too bring to your attention the issues we face in 2006, as well as looking into the future. The Relief Association is facing growing pains as well as is the city, trying to provide retirement benefits into the future while maintaining an acceptable funding ratio. The Board believes tbat a funding ratio of 90% or greater is essential for continuing strong and stable growth. In the past years the Relief Association has taken little or no increases to maintain this ratio. The future success of the Fire Department Cataract Relief Association requires a quality working relationship with the City of Farmington. Respectfully submitted, Cataract Relief Association 9