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HomeMy WebLinkAboutCity Council Committees - Fireman's Relief and Pension Board - 01/02/2013 (3) KENT FIREMEN'S RELIEF & PENSION BOARD AGENDA January 2, 2013 3:30 p.m. Mayor's Conference Room 1. Minutes of October 2 and November 5, 2012 - Action 2. September, October, November 2012 Financial Transactions - Action 3. Cost of Living Allowance - Information 4, Other Business 5. Adjournment i KEN T Firemen's Relief & Pension Board a, October 2, 2012 Board Members Present: Suzette Cooke, Les Thomas, Sam Grubbs, Al Bond, Brenda Jacober Others Present: Gene Grenstad, Paul Barry The Mayor called the meeting to order at 3:30 p.m., and introductions were made. Minutes of July 5, 2011. Bond moved to approve the minutes of July 3, 2012, as presented. Grubbs seconded and the motion carried. Financial Transactions for June. July and August 2012. Barry did a comparison of the August 2012 to the August 2011. revenues and expenditures, noting that revenues decreased by $40,000 due to the decrease in the fair market value, and that expenditures increased to $14,000 due to the cost of the actuarial study. Grubbs moved to accept the June, July and August 2012 financial transactions. Bond seconded and the motion carried. Investment Policy Ordinance Update. Thomas explained that a change removing two Council members from the Investment Committee had been proposed, which would have resulted in not having any Councll members on the committee. He said that has since been changed so that there will be one Council member on the committee. Barry noted that she is getting the cash flows up to date, and that implementation will take place soon. She also clarified that all city policies are affected. Other Business. There was no further business to be conducted. Adjournment. The meeting adjourned at 3:40 p.m. Brenda Jacober, CMC Board mem ber/City Clerk I � i KENT Firemen's Relief & Pension Board November 5, 2012 Board Members Present: Suzette Cooke, Les Thomas, Sam Grubbs, Al Bond, Brenda Jacober Others Present: Paula Barry of the Finance Department; David Galazin of the Law Department, who was called In during the meeting The Mayor called the special meeting to order at 3:30 p.m„ and Introductions were made, Barry said it was recently discovered that there has been an error in the level of firefighter pay, which resulted in overpayments to nine retirees in the amount of $11,877,89. She explained that there have been three levels of pay this year to Regional Fire Authority firefighters: 4.2% in January, 2011 + 3% in March, and March 2012 + 1.7% In September. She added that the City was not made aware of these changes, Grubbs pointed out that RCW 42„18 states that "such Increase shall be at least 2% per year", and Barry agreed to follow up on that issue. She also agreed to determine whether retirees still get 2% if no salary increase was given. A discussion was held of these and other issues Including individual situations and whether the RFA should be held responsible In any way. Barry -uggested sending a letter to the affected retirees, after the questions had been answered and the amounts verified, informing them of the overpayment and providing options for repayment, Including payment in full, payment over six months, and payment over 12 months, It was also suggested that lines of communication be Included In the Interlocal agreement with the RFA, and Galazln agreed to do so. Grubbs moved that the Board approve notification to the affected retirees or designee regarding the overpayment of pension benefits for 2012; the letter would Include three options for repayment to the City of I<ent: 1) provide a check to the City for the full amount owing; 2) repay the amount to the City over 12 equal Installments taken as a reduction against the next 12 pension checks; or 3) repay the amount to the City over 24 equal installments taken as a reduction against the next 24 pension checks. Thomas seconded and the motion carried. Barry said she will provide the Board with the exact figures used, along with an explanation, It was determined that there Is no need for the Board to meet again on this Issue, The meeting adjourned at 4:15 p.m. Brenda Jacober, CIVIC City Clerk/Boardmember k= KENT NOTICE OF SPECIAL MEETING Firemen's Relief & Pension Board NOTICE IS HEREBY GIVEN that, due to the holiday on Tuesday, January 1, 2013, the regular meeting of the Firemen's Relief & Pension Board will be held on Wednesday, January 2, 2013, The meeting will be held at 3:30 p.m, In the Mayor's Conference Room, 220 4th Avenue South, Kent, Agenda Items are approval of previous minutes, financial transactions, cost of living allowance, and other business, Any person requiring a disability accommodation should contact the City Clerk's Office In advance at 253-856-5725. For TDD relay service, call Washington Telecommunications Relay Service at 1-800-833-6388, Brenda Jacober, CMC City Clerk I Firemen's Relief and Pension Trust Fund Financial Summary As of November 30, 2012 Revenue Revenues for the first eleven months of 2012 have fallen by $37,630 or 13% as compared to the same period in 2011, Revenue highlights include; • Interest Income as of November 2012 has Increased by $4,024 or 134% as compared to the same time last year. This increase is primarily the result of a REFCORP Investment which matured on January 15, 2012 In which the city received $3,070 in interest income. • Fire Insurance Premium Tax is down approximately four percent or $5,545 as compared to the same time In 2011. This state shared revenue Is distributed to titles and fire districts based on their number of paid firefighters. The amount available for distribution varies depending on the percentage of fire claims and related loss experience as compared to other claims against all insurance policies. • The increase in fair market value adjustments was recorded through November 2012 as $106,576. As of November 2011, the adjustments to the increase in fair market value totaled $142,685. Included in the 2011 increase In fair market value was the Increase related to the REFCORP Investment which matured in January 2012. Expenditures I The 2012 operating expenses Increased by $14,777 or 5% compared to the same period last year. Expenditure highlights Include; • Pension distributions have increased by $9,702 or 9% as compared to the first eleven months of 2011, The wage portion of the benefit paid to eligible members Increased during 2012 due to the net Impact of the Kent RFA labor contract settlement, which took effect January 1, 2012 and the Washington State CPI for LEOFF 1 pension benefits, which took effect April 1, 2012. The wage portion of the Fire Relief and Pension benefit to eligible members (which are the majority of member receiving benefits) is directly impacted by any wages Increases Included in the labor contracts and offsetting CPI Increase for LEOFF 1 retirees, However, of the $121,150 paid in pension benefits, $11,878 will be collected back as the result of overpayments, • Based on the most recent actuarial study completed by Millman, It was recommended that the amount provided for retiree benefits of $200,000 be reduced by $3,000 to $197,000 per year. • An actuarial study of the fund Is required every other year. As a result, debt and financial services saw an increase of $7,825 as compared to the same time last year. The last study was completed in 2010 at the same price as 2012, Net Income and Retained Earnings Retained earnings decreased by $50,169 during the first eleven months of 2012 compared to an Increase of $2,238 during the same eleven months of 2011, The largest Impact to retained earnings resulted from a lower fair market value of Investments, the required actuarial study cost, and the overpayment of pension benefits during 2012 which will be returned to the Firemen's Relief and Pension fund over the course of 2013. Firemen's Relief and Pension Trust Fund YTD Statement of Revenue and Expenditures Comparison Analysis of November 30, 2011 to November 30, 2012 11/30/2011 11/30/2012 Variance $ Variance Operating Revenues Interest Income 2,997 7,021 4,024 134% General Contributions (fire tax) 151,337 145,792 (5,545) -4% Increase (Decrease) Fair Market Value 142,685 106,576 (36,109) -25% Total Operating Revenues 297,019 259,389 (37,630) -13% Operating Exnenses Salaries & Wages (Pension D(stribution) 111,448 121,150 9,702 9% Benefits 183,333 180,583 (2,750) -2% Debt & Financial Services - 7,825 7,825 Total Operating Expenses 294,781 309,558 14,777 5% Net Income (Loss) 2,238 (50,169) (52,407) -2342% i i KENT WA5 HI NO'ON CITY OF KENT FIREMEN'S RELIEF & PENSION TRUST FUND MONTHLY FINANCIAL REPORT NOVEMBER 2012 FINANCIAL STATEMENTS BalanceSheet............................. ......................................................... ................................................ Statement of Revenues, Expenses and Changes In Retained Earnings........................ .....................2 Statement of Cash Flows............. ............................................. ........................ .............. 3 INVESTMENT INFORMATION Schedule of Changes in Cash and Investments_. ................... ....... ..................... ......... ..................4 Graphof Investment Types............. ........ ....................................................................... ..................6 Schedule of Investments-Market Values............................... ............................ ................................6 Estimated Cash Flows........................... ............. .................... 7 [ B \� k \ _ / ® --- C) ƒ % ®) ® ® ® /! ■ \ 0 4 % ® § R / 6 } \ 0 § ? ooze ° = CCU 0 ® --- 4 I / J § k (D §a § § \ ))f\/ \ \)\ 2)) / M fO M W th (O r N N rn ;. . ..-1 Oal r N vcl (R ll W N Vf V!M(/}(A W 69 tfT N V3 V3 69 69 -yam ' m c a ls(�� ro rnw co rn rn n rai' s: v w E N W W O N O M W N f : N O d t t tL N V M M a) ai - a S Ol } '4 M W n+ V+ o c_ o ur er»» »w 69 er F» A 1 !4 N m tylo or N a n ' U ly Nrn rnOVrn WO Rr 1O rn Lz N W M N W ^ M N i N srs ,Ro N z �p !� r HN 69 6q 69 69 64 69 69 69 Hf 69 VY W V3 69 z a+ C N O N M NO f` qI Q! 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[ 4&! }\\ \ ## \ / § / / \ § ) ® © 2 = o ; \ t = oz k IF �\ ® § � G ( § � )\\ \ § ©© ) / § \ /\! !, f{ } 0 u j ,! r & 25 ) \ h)§ §\ \\ z , i I I FIREMEN'S RELIEF&PENSION FUND SCHEDULE OF CHANGES IN CASH&INVESTMENTS FOR THE MONTH ENDING NOVEMBER,2012 Purchase Increases or Interest Date Seeurlty Description Yield Coupon INInturlty 1 1/112 0 1 2 (Decreases) 11/30/2012 Income 11/30/12 Slate Treasury Investment Pool 0.190% 0.000% Overnight 2,260,000.00 (25,000.00) 2,235,000.00 328.60 04/10/87 Federal Home Loan Mortgage Assoc, 8.508% 0.000% 11/29/19 521,137,37 0.00 521,137.37 0.00 TOTALS 2,781,137,37 (25,000.00) 2,756,137.37 328.60 CASH BALANCE: Beginning Cash - 1,963,51 Receipts Interest Income 328.60 Fire Insurance Premium 0.00 Misc A/R 0.00 Decreases in Investments 25,000,00 Disbursements: Retirement Pensions (10,378.63) Actuarial Study 0.00 Legal Services 0.00 Funeral Expense 0,00 Medical Premium Reimbursement to Oeneml Fund (16,416,67) Increases in Investments 0.00 Total Cash 1,963.51 (1,466.70) 496,81 i 'TOTAL CASH&INVESTMENTS 2,783,100.88 (26,466.70) 2,756,634.18 4 I. I r G' tyf to N x� tr4� w �a w � z a a ti - A \ 1 � N O O O O o ❑ r spnusnogy I�. CITY OF KENT FIRENIEN'S RELIEF AND PENSION FUND INVESTMENTS MARKET VALUE-NOVEMBER,2012 Purchase Investment hlm•kel Value Increase/ Dale TYPE Security Desrlptinn Ylcld Coupon Maturity Total 11/30/2012 (Decrensc) %Ine(Dec) 11/30/12 1 State Treasury Investment Pool 0.180% 0.000% Overnight 2,235,000.00 2,235,000.00 0.00 0100% 04/10/87 4 FHLM-7.eros 8,508% 0,000% 11/29/19 521,t37.37 873,553.00 352,415,63 67,62% 2,756,137.37 3,108,553.00 352,415.63 12.79% i I 6 N M w of �f I O iG �D ip" Q. nl N � q N M n i 0 (I' S W M OO d � W L. ti fy �pp� w J 0 .� n P. U a °a V G z t� N Y N � W O arz U uu.tt ti P � y qNN � UU `., O O w w z cd.> u ti cQ� v • KENT WASHINOTON j CITY OF KENT FIREMEN'S RELIEF & PENSION TRUST FUND MONTHLY FINANCIAL REPORT OCTOBER 2012 FINANCIAL STATEMENTS BalanceSheet,.................................................................................................................. 1 Statement of Revenues, Expenses and Changes in Retained Earnings....................................................2 Statementof Cash Flows.........................................................................................................3 INVESTMENT INFORMATION I Schedule of Changes in Cash and Investments........................................................................................4 Graphof Investment Types.................................................................................................................5 Schedule of Investments-Market Values.............................................................................................6 Estimated Cash Flows, 7 i ] \rz� \ L6 e \\ 0 & 3 ®/: ■ © /K / \ 0 � 2 #( § ± oog . 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Q o z (D ui o eu> w Z Z w L -J E z Uzi uj z c 8 0 0 2 P- 2 .2 0 z w E LU L) < w LU (L 0 (L co 0 r, (r) 0 w ca a 0 z www of § ; ; S6 .,6N . w ) , . � \ 9 } \ j \ 3 . \ L g { ( ) " G ` ® r§! § $° ! / ;/ { ; ; \ § 2 \ b % E ° % .00 , ., - ) \ 7 §) \r ) K ( E \ � 3 �\ } E ) ( � ! \; �7 � ) (, § , ; !\ § ! � !° °r § 22 ! §) � }� ! ;«2 §fi� i# Ka / .\) // \ \ \ \\ ( }! § N§ z I FIREMEN'S RELIEF&PENSION FUND SCHEDULE OF CHANGES IN CASH&INVESTMENTS FOR THE MONTH ENDING OCTOBER,2012 Purchase Inctwscs or Interest Sate Security Description Yield Coupon Maturity 10/1/2012 (Decreases) 10/31/2012 Income 10/31/12 Slate Treasury Investment Pool 0,180% 0.000% Overnight 2,285,000.00 (25,000.00) 2,260,000,00 340.01 04/10/87 Federal Home Loon Mortgage Assoo, 8.508% 0,000% 11/29/19 521,137.37 0.00 521,137,37 0.00 TOTALS 2,806,137.37 (25,000.00) 2,781,137,37 340,61 CASH BALANCE: Beginning Cash 3,890,79 Receipts Interest Income 340.61 Fire Insurance Premium 0.00 Misc A/R 0.00 Decreases in investments 25,000.00 Disbursements: Retirement Pensions (10,851.22) Actuarial Study 0,00 Legal Services 0.00 Funeral Expense 0.00 Medico]Premium Reimbursement to General Fund (16,416.67) Increases in Investments 0.00 Total Cash 3,890.79 (1,927.28) 1,963,51 TOTAL CASH&INVESTMENTS 2,8t0,028.16 (26,927,28) 2,783,100.88 I I 4 2 j � I Q 0 �rc r^ u Vl 04 z � az ro � � I z r Y nri N 1 1 N N ^ Q Q A ■ spmisnusLL CITY OF(CENT FIRENTEN'S RELIEF AND PENSION FUND INVESTMENTS MARKET VALUE•OCTORER,2012 Purehase Investment Market Value Increase/ Date TYPE Secnrlty Desriptinn Yield Coupuu Maturity Total 10/31I2012 (Deerense) %ine(Dee) 10/31/12 1 State Treasury Investment Pool 0,180% 0.000% Overnight 2,260,000,00 2,260,000.00 0.00 0,00% 04/10/87 4 FHLM-7.eros 8,508% 0.000% 11/29/19 521,137.37 937,215.00 316,097.63 60.66% 2,783,137.37 3,097,235.00 316,097.63 11.37% j it G in m a N a M M Qz� N N ono d N In In LW4 CT N ti I� rn P O� vi �O M q O n INv IN 00' O Q CI N N W d M M T C W N (f Q [� W d' N T T T T O Ili O O h b In M In W YNJ M M IN W O O r b W N N O tV N F W � G O d > W On p W I O a [-� o •G d nu " .��+ v rW C I 48 0 W q � N z gawk z ¢y 0 W a a a 0 z o uxi 5 • KENT" WA$HINOTON CITY OF KENT FIREMEN'S RELIEF & PENSION TRUST FUND MONTHLY FINANCIAL REPORT SEPTEMBER 2012 FINANCIAL STATEMENTS BalanceSheet..........................................................................................................................................1 Statement of Revenues, Expenses and Changes In Retained Earnings....................................................2 Statementof Cash Flows.........................................................................................................3 INVESTMENT INFORMATION Schedule of Changes in Cash and Investments,.......................................................................................4 Graph of Investment Types.................................................................................................................5 Schedule of Investments-Market Values.............................................................................................6 EstimatedCash Flows..,..................... ...................... ............._..............................................7 [ , R#! § L6 ;! ® . k § ; ■ ## ## ® ®/§ ' § §: B / ; ©( f o \ 2 ® --- - -® -- - � C6 ) ] � § / Q¥ ! 0 L) » , « , o � O ® 5 ® / --® \ Co ® c $ 2 ( E \ \ § E e , § \ ) M2{,(f S!m M) / . $)! § Z) e . m LO 14 PA to w 6q r cu E o6 O w Lli 04 C6 V; C6 —N, 8 N -A M 0 5 dv.-- mg w m 0 08 M 0 M cy�C�q cEi W� M 0 0 LO m N w W N ' I acy) 0) 0 (R LR W CIL Q q 0� cy! Q O0 a) w N N 0 N 6't 0 m CS E C6 K C6 0 ui IQ z 69,60,tO 6% Q) Rio— U) N ME [if 0 gN 4r- UJ 0 cq m m C6 K W. [if UL 45 R 0 W (1) 0 woIA(A YY 61A U) c 0 N N w (U IQ) 0 N m MLO a ow E �6 L6 r4 rl: L6 to 0- W C4 0 E 60 N — Cq 0 26 ni M CY5 0 0 0 0 0 0 0 0 0 0 0 8 �2 h O C C� O ck q C C 0 0 0 0 0 0 0 0 Nw LQ E 0 0 0 0 0 0 0 0 m m m w > 0 (6 z 0 Z Z z — z z > 0) m w w W uj n m z LL Lu E c 0 -6(o Lij U) 0 0 0) z Z z w 0 U) w z m An U) -HZ LU LU ALLx m w m 2 c Cl z 0 0 Lu E w z LLJ w 0 0 0) m (L 0 z a' Q a w ( # §,■§ !)/ ! Kk ! § ) \ 3\k }\( \ r$ \ (n ] § £ } } ) # \ \ \ \ \ \ $ ) ; § � ON ° / ( - woo. , , „ .�`� \\\ / ( 2 « ! ( § § . w/ \ § \{$§ ƒ)i /; ) ; § �;f / ! !! 91, _§ I, i FIREMEN'S RELIEF&PENSION FUND SCHEDULE OF CHANGES IN CASH&INVESTMENTS FOR THE MONTH ENDING SEPTEMBER,2012 Purchase Increases or Interest Date Security Description Yield Coupon Dlatority 9/1/2012 (Decreases) 9/3 012 0 1 2 Income 09/30/12 Stnte Treusury Investment Pool 0.180% 0.000% Overnight 2,315,000.00 (30,000,00) 2,285,000.00 339.18 04/IO/87 Federal Home Loan Mortgage Assoc. 8.508% 0,000% 11/29/19 521,13737 0.00 521,137.37 0100 TOTALS 2,836,137.37 (30,000.00) 2,806,13737 339.18 CASI'1 BALANCE: Beginning Cush 819,50 Receipts Interest Income 339.18 Fire Insurance Premium 0.00 i Mlsc A/R 0.00 Decreases in Investments 30,000.00 Disbursements: Retirement Pensions (10,851.22) Actuarial Study 0.00 Legal Services 0.00 - Funeral Expense 0.00 Medical Premium Reimbursement to Generui Fund (16,416,67) Increases in Investments 0,00 Total Cash 819,50 3,071,29 3,890,79 TOTAL.CASH&INVESTMENTS 2,836,956.87 (26,928.71) 2,810,028,16 4 tl •c t Qc M N O W � z a sarri� a spuusnmly CITY OF KENT FIRENIEN'S RELIEF AND PENSION FUND INVESTMENTS ,MARKET VALUE-SEP'TRNIDR,2012 Purchase Investment Marhet Vahte Inerense/ Date TYPE Security Desriptlon Yield Coupon Maturity Total 9/30/2012 (Decrease) %Ine(Dee) 09/30/12 I State Treasury Investment Pool 0.180% 0,000% Overnight 2,285,000.00 2,285,000.00 OAO 0,00% 04/10/97 4 FHLM-7.eros 8.508% 01000% 11/29/19 521,137.37 864,663.00 343,525,63 65,92% 2,806,13737 3,149,663,00 343,525.63 12.24% 1 f 6 i w rf N N Wn- Pf N z " p N N V1 b M th M 00 ' CO d' N r1 M P CO 00 O �O t� N vi oC to a a g � b cy t2 z P ; O a b > x cnN o oc4a > oi �jj Uw 6 ¢ oM a q � ry � c�iU � � O z ga. cC ar 7. p S arxii z W