Finance Department Christopher M. Quinn, Finance Director, MACC, - - PowerPoint PPT Presentation

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Finance Department Christopher M. Quinn, Finance Director, MACC, - - PowerPoint PPT Presentation

May 26, 2023 283 likes •472 views

Finance Department Christopher M. Quinn, Finance Director, MACC, CPA, CFE, CGFO, CGMA Ginger Norberg, Accounting Technician Lead February 10 th 2015 Presentation Outline Volunteer Firefighter Program Volunteer Firefighters Pension

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Finance Department Christopher M. Quinn, Finance Director, MACC, CPA, CFE, CGFO, CGMA Ginger Norberg, Accounting Technician Lead February 10 th 2015

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  • Volunteer Firefighter Program
  • Volunteer Firefighters Pension
  • History
  • Roles
  • Current Plan Status
  • Pension Reserve Project
  • Next Steps

Presentation Outline

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  • Receive similar training and testing as an entry level paid

firefighter

  • “Stand in” for paid firefighters out on calls
  • Will respond directly to calls for service
  • Specific engines & equipment assigned
  • Supplement many of the same duties as paid firefighters
  • In addition to pages calls:
  • Participate in special events
  • Provide administrative support

Volunteer Firefighter Program

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  • Respond to calls and perform duties in place of paid

employees

  • Approximately 12,000 volunteer hours accumulated

supporting emergency services during 2014

  • Equivalent of 3 paid entry level positions
  • Conservative Savings of $185,000 annually
  • Does not include administrative, training or special events

hours

Volunteer Firefighter Program

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2002 City Council approves participation in the State Property

Insurance Premium Tax Program

  • State Rate of 1.85% on Insurance Companies
  • State restricted for funding of pension benefits for Firefighters

2005 City of Palm Coast Volunteer Firefighters Pension Plan Established

  • Established Board of Trustees
  • Established Retirement Qualifications
  • LOSAP (Length of Service Award Pension Program)
  • Establish Pension Eligibility
  • Monthly Benefit Amount - $35 per year of credited service

Pension Plan History

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2009 City of Palm Coast Volunteer Firefighters Pension Plan Revised

  • Increased monthly benefit amount from $35.00 to $50.00

per year of credited service

2011 City of Palm Coast Volunteer Firefighters Pension Plan Revised

  • Increased monthly benefit amount from $50.00 to $65.00

per year of credited service

Pension Plan History

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State Collected Premium History

Premium Tax Receipts

$0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 $381,967

Fiscal Year

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Program Roles

Volunteer Firefighter Pension Program

City Council

  • Create, Amend Plan
  • Approve Pension Benefits
  • Establish Budget
  • Qualifications
  • Benefit Levels
  • Appoint 2 Members to

Pension Board

  • Confirm 1 Member Selected

by Pension Board

Fire Chief

  • Approve Volunteer Eligibility
  • Coordinate with Volunteers
  • n Training
  • Establish Procedures related

to use of Volunteers

  • Integrate Command

Structure with Volunteers

Pension Board

  • Separate Legal Entity
  • Hold Minimum 4 Public

Meetings per Year

  • Plan Administration
  • Pay Benefits
  • Determine Plan

Investments

  • Hire Professional

Consultants

  • Volunteers 2 Members,

Board 1 Member Subject to City Council Confirmation

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Current Plan Status Annually

Current Benefits $144,000 Pension Reserve $206,000 - $256,000 Annual State Collected Premium Taxes $350,000 - $400,000

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Current Plan Status

Plan Funding

$0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 2008 2009 2010 2011 2012 2013 Assets Pension Liability

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Current Plan Status

Funded Ratio

80% 85% 90% 95% 100% 105% 110% 115% 120% 125% 2008 2009 2010 2011 2012 2013 114% 111% 112% 119% 121% 121%

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Current Plan Status

Required Contributions

$0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 2008 2009 2010 2011 2012 2013 Required Contribution State Contribution

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Current Plan Status

Reserve for Pension Benefits

$0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 2008 2009 2010 2011 2012 2013

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State Requirement to Distribute Accumulated Reserves as Pension Benefit

Goals in Meeting State Requirement  No increased potential liability to the City  Comply with IRS Regulations  Comply with State Pension Statutes

Pension Reserve Project

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Share Plan Concept

  • Hold approximately $250,000 in permanent reserve
  • Distribute accumulated reserves above the permanent reserve

as pension benefit consistent with State requirements

  • Active volunteers and retirees eligible
  • Estimated at $4,000 per year of service
  • Any future accumulated reserves above the permanent

reserve only distributed to active volunteers

Pension Reserve Project

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Share Plan Concept meets the State Requirement and City Goals

 Provides Accumulated Reserves as Pension Benefit  No Increased Potential Liability to the City  Establishes $250,000 Permanent Reserve  Enhanced Benefits only if Funds Available  Comply with IRS Regulations  Comply with State Pension Statutes

Pension Reserve Project

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 Draft Ordinance with Share Plan Concept  Revise Ordinance for IRS Compliance  IRS Private Letter Ruling Received 11/7/2014  Revise Ordinance for Changes in State Statutes  Adoption of Revised Ordinance

Next Steps