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Home My WebLink AboutCOW 2022-09-12 Item 4D - Budget - Firemen's Pension FundCOUNCIL AGENDA SYNOPSIS 255 Initials ITEM NO. Meeting Date Prepared by Mayor's review Council review "l de/12/22 9'10,141ki, Vicky ohtio ITEM INFORMATION STAFF SPONSOR: VICKY CARLSEN ORIGINAL AGENDA DATE: 9/12/22 AGENDA ITEM TITLE Firemen's Pension Fund 2023-2024 Proposed Budget CATEGORY a Mtg Discussion Date 9/12/22 ❑ Motion Mtg Date ❑ Resolution Mtg Date ❑ Ordinance Mtg Date ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date ❑ Other Mtg Date SPONSOR ❑ Council ❑ Mayor ❑ Admin Svcs ❑ DCD 0 Finance ❑ Fire ❑ P&R ❑ Police ❑ PIF SPONSOR'S Proposed 2023-2024 budget for the Firemen's Pension Fund SUADIARY REVIEWED BY ❑ Trans&Infrastructure Svcs ❑ Community Svcs/Safety ❑ LTAC ❑ Arts Comm. DATE: 9/12/22 COMMITTEE 11 ❑ Finance & Governance ❑ Planning & Community Dev. Parks Comm. ❑ Planning Comm. CHAIR: QUINN RECOMMENDATIONS: SPONsoR/ADMIN. Finance Cow ii i 1 EE COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $ $ Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 9/12/22 MTG. DATE ATTACHMENTS 9/12/22 Informational Memorandum dated 9/6/22 Draft Firemen's Pension Fund 2023-2024 Budget 255 256 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: City Council FROM: Vicky Carlsen, Finance Director CC: Mayor Ekberg DATE: September 6, 2022 SUBJECT: Firemen's Pension Fund 2023-2024 Proposed Budget ISSUE Review the Firemen's Pension Fund draft 2023-2024 budget. BACKGROUND The Firemen's Pension fund exists to support seven firefighters who qualified for a City pension system prior to 1971. Members of the Tukwila Firemen's Pension system receive benefits from the LEOFF 1 system provided by Washington State Department of Retirement Systems. State law requires the City to compute the benefits under the prior pension system (City's pension system) as if transfer of membership had not occurred. The retirees are paid the difference (if any) between the pension benefit they would have received from the City's plan and the benefit received from the LEOFF I retirement system. DISCUSSION Revenue is received from the State in the general fund then transferred to the Firemen's Pension fund per current accounting standards. Expenditures in the upcoming biennium are expected to be less than 2022 because there are two less members receiving benefits. The fund retains a healthy fund balance through the biennium. This revenue source is restricted per state law and can only be used to pay pension benefits for firefighters who qualified for a City pension prior to 1971. RECOMMENDATION For information and discussion. ATTACHMENTS Draft Firemen's Pension Fund 2023-2024 Budget 257 258 DEPARTMENT: N/A FUND: Firemen's Pension RESPONSIBLE MANAGER: Vicky Carlsen Description DIVISION: N/A FUND NUMBER: 611 POSITION: Finance Director This fund exists to support seven (7) firefighters who qualify for a City pension system prior to 1971. Firemen's Pension Fund 611 Operating Expenses Actual Budget Percent Change 2020 2021 Projected 2022 2022 2023 2024 2022-2023 2023-2024 Operating Revenue Fire Insurance Premium Tax InN,estment Earnings $ 72,088 10,134 $ 71,112 1,486 $ 74,397 1,805 $ 65,000 5,000 $ 74,000 1,500 $ 74,000 1,500 13.8% -70.0% 0.0% 0.0% Total ReN,enue 82,222 72,598 76,203 70,000 75,500 75,500 7.9% 0.0% Operating Expenses Supplemental Pension 69,186 58,330 65,000 65,000 60,000 60,000 -7.7% 0.0% Professional Services - - 1,750 - 2,000 2,000 0.0% 0.0% Other Services - 500 500 - - - 0.0% 0.0% Total Expenses 69,186 58,830 67,250 65,000 62,000 62,000 -4.6% 0.0% Beginning Fund Balance 1,504,419 1,517,456 1,531,223 1,531,223 1,540,176 1,553,676 0.6% 0.9% Change in Fund Balance 13,037 13,768 8,953 5,000 13,500 13,500 170.0% 0.0% Ending Fund Balance $ 1,517,456 $ 1,531,223 $ 1,540,176 $ 1,536,223 $ 1,553,676 $ 1,567,176 1.1% 0.9% 259 General Ledger Code Details Revenues GL Account Code Account Description Actual 2020 2021 Projected 2022 2022 Budget 2023 2024 FN611200-336691 Fire Insurance Premium Tax $ 72,088 $ 71,112 $ 74,397 $ 65,000 $ 74,000 $ 74,000 FN611200-361110 Investment Interest 15,098 1,486 1,805 5,000 1,500 1,500 FN611200-361112 Investment Interest Accrued (1,063) - - - - - FN611200-361320 Unrlzd Gain(Loss)-Investments (3,902) - - - - - Total Revenues $ 82,222 $ 72,598 $ 76,203 $ 70,000 $ 75,500 $ 75,500 Expenses GL Account Code Account Description Actual 2020 2021 Projected 2022 2022 Budget 2023 2024 FN611200-529000 Excess Retirement Benefits $ 69,186 $ 58,330 $ 65,000 $ 65,000 $ 60,000 $ 60,000 FN611200-541000 Professional Services - - 1,750 - - - FN611200-541007 Contracted Services - - - - 2,000 2,000 FN611200-549000 Miscellaneous Expenses - 500 500 - - - Total Expenses $ 69,186 $ 58,830 $ 67,250 $ 65,000 $ 62,000 $ 62,000 260