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10-10439rRESOLUTION NO. 10439 RESOLUTION AUTHORIZING CHANGE IN PLAN FOR RICHFIELD ASSET AMOUNT FROM POLICE AND FIRE CONSOLIDATION FUND WHEREAS, the 1999 Omnibus Pension Bill adopted during the 1999 legislative session provided for the refund of certain residual assets for certain over-funded police and fire consolidated accounts; and WHEREAS, pursuant to the legislation, the City Council adopted Resolution No. 8748, establishing a plan for the expenditure of the funds and filed the expenditure plan with Office of the State Auditor, and WHEREAS, the current expenditure plan provides that interest earnings from the fund will be used to defray annual operating costs of police and fire operations, subject to future modification by the City Council; and WHEREAS, the City received $7,621,322 of residual pension assets in 1999, which it deposited in a special fund and which it has utilized in accordance with the adopted expenditure plan; and WHEREAS, the balance of the residual assets now totals $7,749,493; and WHEREAS, the City has awarded a contract for the construction of a new municipal center, which includes facilities for the police and fire divisions of the Public Safety Department; and WHEREAS, the City desires to modify the expenditure plan in order to utilize the funds to defray the costs of the new police and fire facilities. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield: 1. It is in the public's interest to modify the original expenditure plan to permit the expenditure of principal and interest, in amounts as determined by the City Council, for the purpose of funding the police and fire portion of the Richfield Municipal Center. 2. A copy of the revised plan formulated and adopted for the expenditure of residual Police and Fire Pension Fund assets 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 November, 2010. Debbie Goettel, Mayor ATTEST: ~,j, ~~~~ Nancy Gibbs, C' Clerk Exhibit A CITY OF RICHFIELD PLAN FOR EXPENDITURE OF RESIDUAL ASSETS RICHFIELD POLICE AND FIRE CONSOLIDATED PENSION PLANS General Statement The City of Richfield recognizes that the residual amounts defined and authorized by the Omnibus Pension Bill of 1999 represents aone-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 were taken: a) The funds were 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 were recorded and deposited in a special account, and the respective residual assets of the Police and Fire Pension Plans have been recorded and are maintained separately. c) The interest earnings of each plan's Special Account have been annually apportioned between the Police and Fire Fund assets and have been 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. The City Council may use the principal and interest earnings of the funds, in such amounts as the Council may determine by resolution, for the construction of police and fire facilities within the Richfield Municipal Center. 3. If there are funds remaining in the Special Accounts after the construction of the Richfield Municipal Center, then each subsequent 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. The City Council shall annually consider and review each recommended Police and Fire Special Account expenditures. Upon such consideration, the City Council may approve, add to or subtract from, such proposed expenditures.