99-8748r
5
RESOLUTION NO. 8748
RESOLUTION AUTHORIZING PLAN FOR RICHFIELD
ASSET AMOUNT FROM POLICE AND FIRE CONSOLIDATION FUND
WHEREAS, the 1999 Omnibus Pension Bill adopted during the last legislative
session provided for the refund of certain residual assets for certain over-funded police
and fire consolidated accounts; and
WHEREAS, the City of Richfield has both police and fire pension funds
consolidated into the Public Employees Retirement Association (PERA); and
WHEREAS, both the Richfield Police and Fire Pension Funds have been
determined to be over-funded; and
WHEREAS, the Office of the State Auditor has informed the City that residual
excess assets both plans may be refunded to the City of Richfield for purposes
specified by the law, pursuant to the City holding a public hearing and filing an
expenditure plan with the State Auditor's Office.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Richfield that the following actions be adopted pursuant to the provisions of the
Omnibus Pension Bill and receipt of the City's residual assets:
1. A public hearing be held on August 9, 1999 to take public comment and
formulate a plan for expenditure of the residual asset amount.
2. Notice of said public hearing be published in the official newspaper and
posted at City Hall.
3. A copy of the plan formulated and adopted for the expenditure of residual
Police and Fire Pension Fund assets at said public hearing is attached to and
made part of this resolution as Exhibit A.
Adopted by the City Council of the City of Richfield, Minnesota this 9th day of
August 1999.
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Martin J. Ki ayor
ATTEST:
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Thomas P. Ferber, City Clerk
Res. No. 8748
Exhibit A
CITY OF RICHFIELD
PLAN FOR EXPENDITURE OF RESIDUAL ASSETS
RICHFIELD POLICE AND FIRE CONSOLIDATED PENSION PLANS
I. General Statement
The City of Richfield recognizes that the residual amounts defined and
authorized by the Omnibus Pension Bill of 1999 represents a one-time
opportunity to benefit from prudent fiscal management and appropriate
contribution levels to the Police and Fire Pension Plans. It is the City's intention
to fully utilize this opportunity to enhance Richfield's police and fire services
through expenditures for capital equipment/improvements and human resources.
II. Receipt of Assets - Special Accounts
1. Upon receipt of the residual assets of the Police and Fire Consolidated
Pension Accounts, the following actions shall be taken:
a) The funds shall be received by the Finance Manager and immediately
deposited in a specially designated accounts (Special Account)
established solely for such residual assets.
b) The police and fire portions of said assets shall be recorded and deposited
in a special account so that the respective residual assets of the Police
and Fire Pension Plans are recorded and maintained separately.
c) Future interest earnings of each such residual asset's Special Account
shall be annually apportioned between the Police and Fire Fund assets
and available for eligible expenditure.
III. Residual Asset Account Expenditures
1. Future expenditures of the funds contained in the Special Accounts will be in
conformance with Minnesota statute provisions governing such accounts.
2. Each year, as part of the annual budget process, the City Manager shall
prepare and submit a listing of eligible police and fire related Special
Accounts expenditures for consideration to be included within the annual City
Budget and/or Capital Improvement Program and Budget.
3. The City Council shall annually consider and review each recommended
Police and Fire Special Account expenditure. Upon such consideration, the
City Council may approve, add to or subtract from, such proposed
expenditures.
4. It is the City's general policy to retain the initial Special Account fund balance
and to use the annual interest earnings for eligible expenditures. However,
the City Council may change this policy as deemed necessary.