12/14/1994 - City Council SpecialAGENDA
SPECIAL CITY COUNCIL MEETING
Wednesday
December 14, 1994
5:00 p.m.
L ROLL CALL & ADOPTION OF AGENDA
II. CIP PRESENTATION
III. TRUTH -IN- TAXATION/BUDGET HEARING
IV. VOLUNTEER FIRE RELIEF ASSOCIATION
V. ADJOURNMENT
city of (pagan
TO: HONORABLE MAYOR & CITY COUNCILMEMBERS
FROM: CITY ADMINISTRATOR HEDGES
DATE: DECEMBER 9, 1994
SUBJECT: SPECIAL CITY COUNCIL MEETING/WEDNESDAY, DECEMBER 14,1994
Minnesota Statutes for truth -in- taxation require that cities hold two (2) public hearings and
adopt the City budget all on different dates. The first public hearing was held and dosed
on December 7. The second public hearing has been scheduled for Wednesday,
December 14, at 7:00 p.m. The date for approving the 1995 General Fund /Public
Enterprise Fund Budgets is Tuesday, December 20, at the regular City Council meeting.
Other items scheduled for consideration include 1) further presentation of the 1995 -1999
CIP, specifically Part ill relative to park site acquisition and development and 2) a brief
presentation by the Fire Relief Association again requesting action by the City Council to
request special legislation that would increase the lump sum benefit effective in 1995 for
the Relief Association retirement benefit.
CIP PRESENTATION
The Director of Parks & Recreation will present information on the five (5) year CIP relative
to Part III, Park Site Acquisition & Development. The Advisory Parks, Recreation &
Natural Resources Commission has reviewed the five (5) year CIP and has begun
discussions on prioitizing future needs according to the new Park Systems Plan and
offering suggestions as to how development would be financed. This will be discussed
as a part of the presentation on Wednesday. Please make reference to your copy of the
draft five (5) year CIP that was distributed in advance of the November 29 Special City
Council meeting when the CIP was presented by the City Administrator. The actual
breakdown for the park acquisition and development begins on page 33 and ends on
page 53 of that document.
There were several questions raised by the City Council at the November 29 workshop
that require additional fiscal analysis by the Director of Finance and City Administrator
relative to the financial status of trunk funds, park site development fund, street
MEMO
construction fund, community investment fund and the related. That information is being
compiled and will be presented in part at the meeting on Wednesday.
TRUTH -IN- TAXATION /BUDGET HEARING
There is no additional information enclosed for the 7:00 p.m. presentation of the 1995
Budget and requirement for truth -in- taxation. The City Administrator will only make the
presentation, in whole or a modified version, depending on attendance at that hearing.
ACTION TO BE CONSIDERED ON THIS ITEM: To close the public hearing and
prepare the final budget document for consideration at the December 20, 1994 regular
City Council meeting. This action includes preparation of a final tax capacity rate which
determines the 1995 property tax levy.
VOLUNTEER FIRE RELIEF ASSOCIATION
In official action at a special meeting held March 8, 1994, the City Council authorized a
pension increase effective January 1, 1994. The minutes of that meeting are enclosed
on pages 3 and g__. The minutes also acknowledge the need for special legislation
to authorize an increase in the lump sum pension allowed by law. The state law summary
is enclosed on page ,.c_.
The Volunteer Fire Relief Association would like to appear before the City Council to
discuss the pension situation and to reaffirm acknowledgement of the Relief's intention
to approach the Legislature for special legislation.
/S/ Thomas L. Hedges
City Administrator
„2
MINUTES OF • SPECIAL ItETING 07
/MAN CITY COUNCIL
Eagan, Minnesota
March 8, 1994
SPECIAL CITY COUNCIL METING
00073
A special City Council meeting was held on Tuesday, !Larch 8, 1994,
at 5:00 p.m. in Conference Rooms A and E of the Eagan Municipal Center. Present
were Mayor Egan, City Gomellaembers *wade, Hunter, Malin and Yachter. Also
present were Director of Public Works Colbert, Director of Community Development
Reichert and City Administrator Hedges. City Administrator Hedges explained that
due to the Independent School District 196 bond election, the City Council
malting could not be held between the hours of 6:00 and 8:00 p.m. He further
stated that in a direction by Mayor Egan and concurrence with the City Council,
the meeting will be adjourned at 6:00 p.a. and those items that ars not discussed
will be scheduled at a future work session.
City Administrator Hedges stated that a special City Council meeting
could be scheduled for March 15, immediately following the regular meeting and,
further, that a work session be scheduled on March 22, to handle additional
council items. In a notion by Councilaembsr Hunter, seconded by Councilaeabsr
Wachter, with all members voting in favor, a special City Council nesting vas
scheduled for Tuesday, March 15, 1994, immediately following the regular City
Council meeting.
FIRE RELIEF PENSION COMMITTEE PRESENTATION
Mark Sportslli and approximately five (5) other members of the
Volunteer Firs Pension Relief Committee appeared and presented information about
the Volunteer Fire Department and, specifically, why a fire pension increase
greater than the lump sum cap allowed by Minnesota Legislation is being
requested. He stated that firefighters under the current City Council proposal,
would receive $23.33 per month or a $3,500 lump sum and the firefighters are
requesting $28.17 per month or a $4,200 lump sum payment. Mr. Sportslli stated
that current legislation allows for a monthly benefit up to $30 and a lump sum
of $3,500.
City Councilaamber Yachter asked if additional retirement benefits
are seeded for attracting volunteers. Members of the Relief Pension Committee
discussed the requirements for becoming volunteers in detail. In addition, a
file produced by Aaron Rasmussen frog Channel S was reviewed by the City Council.
City Councilmsmbsrs discussed the pension requests that were
presented by the committee in detail. Following questions and after a great deal
of discussion, Mayor Egan stated that he would support an increase from the
current lump sum of $3,500 to $4,200 as presented. He further stated that in
future years he would prefer that the Fire Relief Pension Committee submit their
budget request early in the budget preparation process so any request to increase
the pension is considered with all other budgetary adjustments. City
Councilmeaber Hunter stated that he could not support a change in the Firs Relief
Pension lump sum amount during a calendar year. He further stated that be would
3
SCC MINUTES 3/8/94
PAGE 2
prefer to address any increase for volunteer firefighter pension amounts with the
normal budget process. After further comments and general support for an
increase in the lump sum with the understanding that special legislation would
be required in order to increase the current cap of $3,500 to $4,200.
In a motion by City Councilmembsr Wachter, seconded by City
Coumcilmsabsr /s ada and members Mayor Egan, City Councilmembsrs Avada, Masin and
Wachter voting aye and Councilasmber Bunter voting nay, the monthly benefit was
increased to $28 per month and the lump sum to $4,200 per year of annual service
with tie understanding that the increase doss not go into affect until such time
as the Minnesota State Legislature changes the lump sus amount from $3,500 to
$4,200. Any firefighter retiring prior to the state law change will be paid at
the rate in effect on the date of retirement without subsequent adjustment.
Purthsr, the action approved two (2) additional options: 1) Optional lump sum
pension benefits will be paid for partial years of service (whole months); and
2) a death benefit for active members with less than five (5) years of service
is added as follows:
More than 1 year but less than 2 years 1 x
per year lump sum amount,
2 years or more but less than 3 years 2 x 28t
year lump sum amount,
3 years or more but less than 4 years 3 x 32%
year lump sum amount,
4 years or more but leas than 5 years 4 x
lump sum amount.
SOOTS DODD ROAD AREA
24t of the
of the per
of the per
36t of the
00071
Director of Community Development Reichert presented several layouts
for the South Dodd Road area which include 1) existing conditions, 2) individual
lot subdivision, 3) area wide subdivisions. Community Development Director
Reichert presented four (4) options for consideration of developing the South
Dodd Road area including the Fitz property. Director of Public Works Colbert
stated that he has detailed information on the impact of utility and street
improvements as well as special assessments for each of the options that should
be shared with the City Council.
Mayor Egan recognized Dave Ssllergrsn and representatives of the Fitz
family as being present and apologized that the meeting could last no longer than
6:00 p.m., due to legislation prohibiting the City Council from meeting between
the hours of 6:00 p.a. and 8:00 p.m. on an election day.
After a brief review, it was determined by the City Council that the
South Dodd Road review would be scheduled at a future workshop session on
Tuesday, March 22 at 5:00 p:a.
3. Increase due to change from 815 to 528
monthly benefit level
1,084,388
4. January 1, 1994 Unfunded Accrued Liability
(1. - 2.c. + 3) 8565,470
The actuarial gain of 8373,832 over the period is composed of two sources.
Investment performance In excess of the 5% assumption resulted in a gain of
8159,649. Experience under the plan (mortality, turnover and disability) different than
that assumed resulted in a gain of $214,183.
LUMP SUM PAYMENTS
The plan is designed so a firefighter can choose between a monthly pension
benefit or a single sum payment at retirement. The plan's 828.00 monthly benefit per
year of service payable at age 50 is approximately equal to a $4,200 lump sum per
year of service payable at age 50 on an actuarial basis. However, current state
statutes cap the lump sum level which can be paid from a relief association plan. The
lump sum caps are as follows.
For lump sums:
Payable prior to January 1, 1994 83,375
Payable between January 1, 1994 - December 31, 1994 83,500
Payable between January 1, 1995 - December 31, 1995 83,750
Payable on or after January 1, 1996 84,000
In addition, the level of benefits payable from the plan can be further limited by the
state's "Minimum Average Amount of Available Financing per Firefighter /Maximum
Benefit Payable" table. This table defines maximum benefits payable from a plan
according to the historical amount of funding available per firefighter.
FINANCIAL DISCLOSURE
Table 2 sets forth the information required by Government Accounting
Standards Board Statement 5 for disclosure in the city's financial statements. The
values represent the current value of the benefits earned to date under the plan. Plan
assets are significantly above this value.
4
6 1 /call