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Mound Fire 2011 Annual Report
2011 Annual Report 2415 Wilshire Boulevard Mound, MN 55364 Main: 952.472.3555 Fax: 952.472.3775 www.moundfire.com Vision Statement: It's our vision to be known as an innovative and progressive fire department. We are dedicated to the delivery of effective fire suppression, rescue services and quality fire safety education to the public. We strive to offer the best available education and training to our members. • We are committed to providing an environment which fosters teamwork among members. We desire to have an atmosphere of open communication which promotes the health and welfare of individual members. This Annual Report is prepared for the Mayor and Councilors for the City of Mound, and also the Mayors and Councilors of the four other cities we serve. This report is also presented to and reviewed with our Mound Fire Commission members. SHOREWOOD 16 I* I * 2011 Annual Report Section I Overview & Highlights Section II Organization and Staff Information Section III Department Activities And Performance Measurement Section IV Apparatus & Equipment Section V Facilities (no documentation) Section VI Finances & Budget Section VII Strategic Plan Initiatives Section VIII Fire Department Challenges And General Information Pages I — 5 Pages 9 - 19 Pages 20 - 24 Pages 25 - 31 Pages 32 - 64 Pages 65 - 72 • Mound Fire Department 2011 Annual Report Overview and Highlights This Overview and Highlights section provides a general, but important summary of the Mound Fire Department activities, accomplishments, and goals met for the year 2011. The detail and support documents provided within this 2011 Annual Report provide much more comprehensive information about the Mound Fire Department and the fire department operations. Please contact Fire Chief Greg Pederson if you have any questions or comments about the information, or would like to discuss any of the issues. General Note: This 2011 Annual Report is prepared for the Mayor and Councilors for the City of Mound, but also the Mayors and Councilors of the four other cities we serve. This report is also presented to and reviewed with our Mound Fire Commission members. Introduction and Overview The year 2011 was another busy year for the Mound Fire Department. This year we continued to work our Strategic Plan which focuses on hiring and maintaining our firefighter staff, tightening budgets and conservative financial management, maintaining or expanding our fire service . contracts. Another major and unique project for 2011 was studying the options for improving our Fire Relief Association Pension Plan. U Our well trained and active paid -on -call firefighter staff remains our most vital asset. In 2011, our firefighter staffing level increased by one as our staff of firefighters increased slightly from 41 to 42. The nationwide and local trend is that less people are volunteering as firefighters, so we are fortunate to have had much success in hiring and maintaining our staff of dedicated firefighters. Footnote: we currently have a waiting list of firefighter applicants. It is the dedication and commitment of the Mound firefighters that help uphold the service and quality of the Mound Fire Department. In 2011 our calls for service for Fire and Rescue call activity increased from the 2010 levels. Our fire department emergency call outs in 2011 were 615 vs. 557 call outs in 2010. Our firefighter response hours for the year were up minimally and about 2% higher than the 2010 levels with a total firefighter emergency response hours at 12,254 hours. The commitment of time and effort that is required by firefighters continues to increase as shown in the detailed breakdown pages which show department activity. In September 2010, we reduced our administrative assistant staff person to "half time" or 20 hours per week. This staffing change was necessary for budget balancing reasons and a need to reallocate some of our available budget dollars. The Administrative Assistant position is a critical component to the department administration and operations, so a major goal for 2012 is to restore this position to a full time position. -1- Orzanization, Staff Information, Performance Measurement The Mound Fire department continues to maintain a very high level of active volunteer paid -on- call firefighter staff. We currently have a staff of 41 volunteer firefighters, plus one part- time administrative assistant and a full time fire chief. We currently have a waiting list of applicants for the firefighter position. The following points about organizational resources are supported by the documentation and graphs included in the pages that follow (please refer to the lists, graphs, and charts). • We did hire 3 new probationary paid -on -call firefighters in 2011, which increased our paid - on -call staff of firefighters by one. • There were two firefighters that left the department in 2011 for job performance reasons and lack of ability to meet department job requirement standards. • Fire and Rescue calls for service were quite steady and at a high level in 2011. The department continues to be very active with a total of 12,254 personnel hours spent at fires and other emergency calls (refer to the 2011 activity report). • Mutual Aid requests and mutual aid personnel hours for Mound Fire was lower than normal in 2011. The requests for mutual aid will likely increase in the future (to a more normal level) because of lack of resources at area fire departments, especially during daytime hours. • Our fire department response continues to generate an average of 20 -21 firefighters per emergency call, which is a high number of responders as compared to many other volunteer • or paid -on -call type fire departments. • MFD firefighters also worked a significant amount of hours on apparatus, equipment, and station maintenance in 2011 for a total of 1,184 hours. • In 2011 our staff training hours was high at 2,761 hours. Our fire department membership is well trained and more diversified than ever as training is critical to our success. • Our fire department staff including all fire officers and firefighters is skilled as well with a total of over 400 years of accumulated firefighting experience. Our firefighters, through hard work and dedication continue to put in many volunteer hours, with a conservative estimate of all work by firefighters in 2011 at 18,370 hours. Apparatus and Equipment In 2011, we continued to evaluate on our plan to implement our Apparatus Replacement and Efficiently Plan. Capital Expenditure spending on apparatus and equipment was insignificant in 2011 due to budget and financial limitations. There no significant additions to our apparatus fleet in 2011, however we are still considering our options for apparatus replacement as follows: • In 2011 we purchased 25 sets of new firefighter personal protective equipment (PPE) "Turn- Out - Gear" through the Hennepin County Fire Chiefs Association Joint Powers Agreement purchasing program. This purchase of coats, pants, suspenders was planned and necessary and resulted in a significant savings on top quality PPE. The cost of the new gear was $ 41,689.75. -2- • Our 1980 Sutphen 100' Aerial Ladder truck is now over 30 years old, it has become • obsolete, requires constant care and maintenance, and needs to be replaced sometime soon. The ladder truck has had many ongoing operational and functional failures or problems. The truck operational failures have often been a safety concern. • In 2011 we continued to work on our Apparatus Replacement and Efficiency Program by selling 2 older used vehicles (1998 Chevy Tahoe and 2001 Chevy Impala) which generated $7,800 in revenue for apparatus fund. NOTE: The cost of replacement for a 100' Aerial Ladder truck depends upon the path we choose (i.e. buy new truck, buy used truck, or refurbish existing truck). The cost of a new aerial ladder truck that is similar in size and performance to ours would be approximately $935,000. In any case we need a ladder truck for fire response and suppression, high level rescue, in support if our fire protection contracts, and our ISO Public Protection Classification in all cities. In 2010, the Fire Commission has asked me to make the ladder truck replacement a priority topic and a standard meeting agenda item. There have been numerous conversations about the ladder truck replacement throughout 2011, and the ladder truck is listed in the Capital Plan Equipment Plan for replacement in the future as soon finances allow; Note: We continue to analyze and consider new concepts to meet our ever changing needs for fire apparatus and equipment. We believe our fire apparatus replacement program plan considers all of the practical and available options for prudent and cost effective apparatus replacement purchases in the future. The Fire Commission meeting discussions often deal with apparatus • needs, replacement plan, and future purchases. Facilities The Mound Public Safety Facility remains ideal for our daily administration, staff activities, apparatus housing, equipment storage, training, and emergency response operations. There were only a few insignificant facility issues that needed attention in 2011. Facility Notes: We are actively pursuing the possibility of refinancing the Public Safety Facility Debt (bonds) to lower our facility interest expenses and help the overall budget. The call date on the bonds is not until 2012. This will be a potential savings in the future if we can achieve lower interest rates. The City Council and City Administrator in Minnetrista continue to work on Fire and Rescue Shared Services and the possibility of creating a fire district, especially as Minnetrista develops. At some point our friends and neighbors in Minnetrista will be adding fire stations in their growing community. The City Officials in Minnetrista are very supportive of Mound Fire Department and will likely want us to actively participant in the Minnetrista fire protection plan. • Finances and Budget -3- The Mound Fire Department expenses for 2011 were under budget overall. This is a challenging • task considering the fire department budget increased by only .84 % in 2011. Please refer to the budget summary page in this report for the 2010 budget vs. expenditures and financial details. • The fire account reserve fund balance at the beginning of 2011 was $258,202 with an estimated ending reserve balance of $274,848 at the end of 2011. • The fire fund balance actual increased by approximately $2,389.02 in 2011 to a year end balance of $260,823.76. • This year end fire fund balance is lower than expected as the firefighter Turn - Out -Gear purchase was totally absorbed into the 2011 fire department budget. Challenges for the Future — Remain the Same We are well aware of the nationwide trends and the struggles that many paid -on -call fire departments face today and challenge that are anticipated in the very near future. While the challenges are many, the primary ones are: recruiting and retaining volunteer firefighters, maintaining the financial support and budgets needed to support apparatus and equipment purchases, wisely managing fire and emergency call volumes in consideration of firefighter or staff time commitment, and sharing services (mutual aid or other) among communities to insure efficient high quality service. In late 2010, and in an effort to be proactive with regard to sharing services with our neighbors, the Cities of Mound, Minnetrista, and St. Bonifacius applied for a Minnesota Department of Public Safety "Fire and Rescue Shared Services Grant. Throughout 2011 a substantial amount of time and money was spent on the Fire and Rescue Shared Service Project Study. It was a very worthwhile endeavor with final results yet to be determined. Stay Tuned! In 2010, the Mound Fire Commission and Mound Volunteer Fire Department Relief Association Board of Directors authorized the funds needed to perform a study of the existing pension plan. VanIwaarden and Associates was hired to assist as an advisor and perform all of the tasks as defined in the pension plan study overview and details. The results of the pension plan study and all relevant data including an actuarial valuation of the pension plan was completed in 2011. The pension plan is critically important to the long tern success of the fire department staff, so pension plan changes and improvements will likely follow. Strategic Plan and Initiatives In 2004, I began a Strategic Plan Initiative with a focus on four key areas including: Personnel and /or Staffing, Budget and Financial Management, Apparatus and Equipment, and Facilities. Many of the very important plan initiatives have been completed and /or are ongoing. Significant progress has been made on these initiatives with more work to be done. • A major accomplishment for 2011 was the design and implementation of our new Mutual Aid Box Alarm System ( MABAS). This was a major undertaking, but well worth the effort. The system is primarily utilized in the event of a major incident in or around our community. A MABAS example(s) showing Box Alarms Resources for Mound, Spring aPark, and Minnetrista is included in this report. 4 IF • The Mound Fire Department Relief Association Pension Fund made financial strides in • 2010, with a positive investment return of 12.12 %. The MFD Relief Fund gained $408,700 in value throughout calendar year 2010. The fund value remained primarily flat in year 2011. The pension fund balance on 12/31/10 was $4,523,115 vs. fund value at year end 12/31/11 of $4,424,571. Implementation of this strategic plan is essential to the success of the Mound Fire Department in the future. A complete summary of the Strategic Plan and department accomplishments for the year 2011 is included in this report. Summary The year 2011 was another busy and very successful year for the Mound Fire Department. We believe we have continued our mission to serve our residents and customers well by providing an essential public service at a low cost with high value. There has been virtually no budget or cost increase from 2010 to 2011. Our staff of firefighters and office personnel, apparatus, and equipment has continued to be maintained as our key strong elements. We have very nice functional fire station facility. As we look to the future, we anticipate improving and expanding our department operations further by partnering with Minnetrista as part of their expanded fire service protection plan. A Minnetrista partnership and a fire district concept will lead to more efficient use of our fire staff, apparatus, and equipment. A fire partnership or fire district will most likely be a financial benefit to the residents of Mound, Minnetrista, and possibly St. Bonifacius, plus provide an added benefit to all of the fire protection contract cities as well. We thank our city officials, staff, fire commission members, and citizens for their continued cooperation and support of the Mound Fire Department. Respectfully submitted, Gregory S. Pederson Mound Fire Chief 3 May 2012 • -5- • M Lo N c Z} 0 L � - Q C O O L� m L LO N • Y C 0 L d ,u ,-4 Q rl N0 V c -6- O N d' Q �i v } U N 4- LU k U 0 0 C4 o� •- + N N N .--r N .-+ �� .-+ .N-� N N N _ &O .-4 %-i* O .-r O v" O .-4 O .-4 O .-a O O� ti O -4 O r-4 O V-4 O .-i O� v1 Q N N N N N N N N , N N N N N N � M� M M M M M x Z N N N N N N N N N N N N N V-4 .-4 1-1 1-4 1-4 ! 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Chief 11 3 RICK WILLIAMS 11/7/1983 22 Dist. Chief 21 4 GREG PALM 2/6/1984 15 Captain 11 5 TIM PALM 5/1/1989 17 6 EDDIE VANECEK 11/4/1991 34 Captain 14 7 DENNIS WOYTCKE 3/2/1992 24 8 PAUL BABB 9/13/1993 28 9 CHRIS POUNDER 9/13/1993 36 10 BOB CRAWFORD 3/21/1994 6 11 JASON MAAS 5/2/1994 32 Lieut.11 12 JOHN LARSON 3/6/1995 5 13 RICH ROGERS 10/16/1995 19 14 ROGER KRYCK 12/4/1995 27 15 BRUCE GUSTAFSON 2/5/1996 11 Captain 12 16 MATT HENTGES 5/6/1996 14 Captain 15 17 MATT JAKUBIK 11/17/1997 37 Fire Marshal 18 TONY MYERS 514/1998 33 19 DARREN POIKONEN 12/19/1998 30 . Captain 16 20 KEVIN FLAIG 4/19/1999 7 Lieut.12 21 BRIAN BERENT 4/24/2000 1 22 STEVEN HENKELS 9/10/2001 2 Lieut.14 23 MIKE MCCARVILLE 1/6/2003 35 24 JOSH CLEMONS 5/10/2004 23 25 MIKE FOLEY 5/10/2004 16 26 PAUL JOLICOEUR 5/10/2004 39 27 MARK LEE 5/10/2004 40 28 DERAK ANDING 7/26/2004 3 29 JASON RICE 7/26/2004 42 3o ANDY DRILLING 5/20/2006 25 Lieut.15 31 BEN FOSTER 5/20/2006 29 32 BEN GOTTSCHALK 5/20/2006 26 33 BRYAN GORMAN 11/5/2007 21 34 MATT MORRIS 11/5/2007 44 35 JEREMY SPADER 11/5/2007 45 36 AARON CRANDALL 10/5/2009 8 37 JEFF HARRISON 10/5/2009 10 38 SHAWN HAYES 10/5/2009 38 39 MIKE SHEPHERD 10/5/2009 41 40 GERALD BERTHIAUME 3/21/2011 9 41 JEFFREY BRYCE 3/21/2011 20 • 42 DANIEL HEILAND 3/21/2011 4 1/11/2012 J: \admiMAdmin & Organization\Active Information \Seniority List - Current -s- Over 20 years 15 - 20 years 10 - 15 years 5 -10 years Under 5 years • I* 10 Mound Fire Department 2011 Activity Report EMERGENCY CALLS FIRE /RESCUE CALLS 2011 IN OUR PRIMARY SERVICE AREA 601 MUTUAL AID CALLS 2010 OUT OF OUR SERVICE AREA 14 TOTAL OF ALL FIRE /RESCUE CALLS IN 2011 615 INCLUDING MUTUAL AID FIREFIGHTER EMERGENCY HOURS FIRE /RESCUE PERSONNEL HOURS 2011 IN OUR PRIMARY 11,746 SERVICE AREA MUTUAL AID FIRE /RESCUE PERSONNEL HOURS 2011 FIRE /RESCUE PERSONNEL HOURS 2011 INCLUDING MUTUAL AID FIREFIGHTER HOURS BREAKDOWN FIRE /RESCUE PERSONNEL HOURS IN 2011 INCLUDING MUTUAL AID MAINTENANCE HOURS IN 2011 TRAINING (IN HOUSE) HOURS IN 2011 TRAINING (OUTSIDE) HOURS IN 2011 MEETING HOURS IN 2011 PUBLIC RELATIONS / FIRE PREVENTION TOTAL FIREFIGHTER HOURS FOR 2011 M 12,254 12,254 1,184 2,761 536 1,064 571 18,370 J: \admin \Reports - Fire Incident & Performance\2011 Performance Reports\2011 Incident Report -9- 0 ) Q § z 0 2 0 0 0 � c � C) C4 7 LL k � m ° 2 � § _ o 2 � (D § § . $ ML § / 0 � 2 / ■ � E w � k / /Iq /\\GE§k /o k 0 \ /Ragg�C14 / /40 W �/ \2222 ° °� §/° le mIT0Iq noonI "o 04NCl) �w §f\2%ƒgn-( k ~��'� :') fnn~���� N �/2222M 1 ;rP -�o� to � 3 k 'T 8 ® ©- 000�G0000 S 2 . 2 DLO c _ o / 0 mCl) �oo��0000 � 22wGo2or § o u o U 4) 2(e0 @4@w@a) § - 21 = & E 0 E m = (D 4) a) 4) L) /] 3 3]$ 3 u 2 - £ U. 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N E O O o a) ti (0 IT O 0 E T lT Q U m co a C N M g N Q N > o fa rn is Q' O) w o m as F- 0) U H a CD LO cD r C N 3 O C > N N O O N o L i CD > a) v > E 'd cm L ) LO LO LL Lb o 72 (D U) N m 0) p r_ (L o t @ m 0) co co �- W ) m O cam a O O co O O O S 0 O N N 0) DO ) O O O N N O LL N d1 O N (0 � co 0) N V W c0 r W O O N v LO c0 L` 00 O O N N N N N N N Cl) M co co M M M M -21- V) U CL 0 0 N m N cc C (0 T C O V) N as ,� E N Q a a 0 v� m _o N N 0 0 O O N w U o o U O C n -0 0 Q m E a io U LL p_ ag= a) w a) O z I* 140 I* MOUND FIRE DEPARTMENT 2011 Apparatus and Equipment Unit Number Description of Apparatus Radio Alias ID Comments # 17 1981 Sutphen Aerial Ladder Ladder #11 Top replacement priority # 18 1984 Ford Pumper Engine #14 Sell in fall 2011 # 22 1990 E -One Utility Heavy Utility #11 Equipment Command Vehicle #24 1996 Freightliner Pumper Engine #12 lRemains Engine #12 # 26 1999 Ford F 250 Crew Utility #12c+ eery # 28 2001 19' Silver Wolf Boat #11 # 29 2003 Salisbury Pumper Engine #11 # 30 2003 Pace Am. HazMat Trailer Utility #13 18111, ;toia t it 1 t °1 # 33 1986 Chevrolet 1 Ton Grass #11 Grass Rig Mini Pumper #34 1998 Ford F -Super Duty Rescue #11 # 35 2007 Freightliner Tanker Pumper Tanker #11 750 GPM -3000 Gallon Tank #37 2008 Polaris 6 x 6 SUV Utility #15 #38 2009 Zodiac I V C340 — 15 HP Boat #12 # 39 2010 SUV — Tahoe 4 x 4 Rescue #12 NEW in 2010 # 40 2010 Freightliner Tanker Pumper Engine #13 NEW in 2010 1250 GPM — 2000 Gallon Tank Becoies En><a�e` #1 # 41 2010 Haulmark Command Trailer Utility # 16 NEW in 2010 Update 041311 Apparatus - Equipment Henn. Radio Alias j: \admin \operations \apparatus \apparatus information \apparatus list replacement plan (alias id list) 10312011.doex -22- • Date: August 10, 2011 Project: Firefighter Protective Turnout Gear Replacement Program (A.K.A. Bunker Gear) 2415 Wilshire Boulevard Mound, MN 55364 Main: 952.472.3555 Fax: 952.472.3775 www.moundfire.com Overview: Purchase 28 new and complete sets of firefighter protective Turnout Gear including coat, pant, and suspenders. Utilize the newly established Hennepin County Fire Chiefs Association Joint Powers Agreement (JPA) specifications and pricing which provides substantial improvement in gear pricing and quality. Background: Historically, we have purchased 6 -10 sets of Turnout Gear each and every year to replace our personal protective equipment (PPE). This gear was being replaced on an ongoing • basis as required for firefighter personal protection and for the obvious safety reasons. This program has been a successful system, but inconsistent with regard to budgeting, spending and meeting the current NFPA Safety Standards. In 2010, I decided not to purchase any new Turn- Out -Gear as we were awaiting the completion of the Hennepin County Fire Chiefs Association JPA Turnout Gear Specifications project. We fully expected the JPA Turnout Gear project to provide us with a better safer product, plus improved and more competitive pricing. The JPA project results were as we expected. Product Description: Morning Pride Turnout Gear by Honeywell Morning Pride Tails Bunker Coat and Pant Outer Shell: Gemini Matrix Color: Bronze Thermal Liner: E -89 Moisture Barrier: 2.0 oz. Gore Crosstech Justification: this JPA project is a result of our ongoing efforts to find new and creative ways to save budget dollars, cut costs, and still improve the product quality for long term savings. Other relevant justification as follows: • Currently, only 14 sets of our firefighter Turnout Gear meet the National Fire Protection Association (NFPA) 1971 Protective Ensembles for Structural Fire Fighting 2007 Edition. • This 2011 purchase of 28 sets of Turnout Gear will bring us into compliance with, and exceed the NFPA 1971 - 2007 Safety Standard. • • This purchase (based upon the JPA specification) improves the quality of gear and provides a overall better, safer, and longer lasting product. -23- • Justification (cont). • All of the new gear is a customized fit for each firefighter, vs. existing hand me downs non- fitting gear that many of our firefighters use. • Overall, this is much better pricing, a better product for the money, and an overall improved value as the gear will last longer. • There is no budget increase required to fund this project, and is basically a budget neutral item or a small annual savings. Cost Summary: • Cost per set of Turnout Gear per JPA Specifications: $1,667.59 • 28 complete sets of gear needed: Total Cost to purchase = $46,692.52 • Annual Cost per year for 5 year period: less than $10,000 per year and within budget Options to pay: 1. 5 year lease to own program through the JPA Vendors 2. Use $$ from the Fire Equipment Reserve Fund and 2011 Budget $$ • 3. Use $$ from the Fire Equipment Reserve Fund, 2011 Budget $$, and Interfund Loan Qf�n attachments gsp • 2 -24- I* 'a d d K w 0 N T cD O o O o O e d 0 CO c r, ca ea M m N 00 O N M 63 N T a� v m -25- O �p O 00 O O O R v V O N N = U W L R 00 CO 1,- N co M �wt •• M ti 00 M tCl < M N O p d i CO 0') 0) T T _ -: T LL. d y EA EA 613 64 6c3 vw h N K3 O N N o IL` � T N } T O O O O LO V It? ` 9t'+ co O s- w M. L Q CO O O v a N O N o N M per, 1+ , CND_ ti co c Q y U) O T `.' T T P. w co x w CD C14 N U) W W tfi 64 613� 6r* 6113 +N9► to #i 61% 1R 44 N tf} IL = CL ? z w W W o m w � w W a z a J w a w L- v) w p > a o O o o O y Y G N o a, Z F- o 0) rn w (D r- o O LO O co qT O O N O' M m O M N CO N CO tflw; = N D m m O CO N M CO T co fh •- ? w m LM N + s 71 LL � N EA 64% Ef3 EA E!3 fI4 69 V3 619. p d3 fn N y N N N 'o c N LL N x 06 LL N cn N _ N O 01 N N N C > Q. O ' tOO m • La U O (Q »� m 1—_N N _ (� c 3 L �: L- W L f": T O :V L v.Q- N� L N Q- Qrt. ca = L 1 Q^�` (D C 3 Q }� y1�R' C C N O Y Y p LL O U m LL W.' d U O O T -25- Minnetonka Beach Minnetrista Shorewood • Spring Park Mound • is 56,395 181,026 17,440 87,033 415,523 rkt AREA FIRE SERVICE 2011 OPERATING Mound 54.9% COSTS Minnetonka Beach 7.4% 5n/69012 Ainnetrista 23.9% horewood 2.3% ...F-11.10 .park 11.5% 10 I* I* -27- N }' U M N r N O N Q o O\ O U N r-I O bA •� N 3 bA O 00 M l� M \O O 00 O0 t �Q 4 Cr O O N O N r O O CC U W > � o 0 0 o c o aUi "O �+ N N rl o 00 O 00 M N d �i O O th W N N O t\ N •-{ O O vii O � O O O O N N � E C 00 �O O 00 00 .� U cd w U O p N cd Vi sir QI O O -27- 10 10 I* Mound Fire Department August 26, 2010 FINAL 2011 Budget and Expenses - Breakdown Category/Description *Budget Total 2011 • Operating Expenses • Pension Contribution — Relief Assn. • Building Rental, Lease, Debt Service *Operating Expenses (from above) • Salaries for all Staff (all inclusive) • Operations and Supplies 2011 Budget $ Amount Percent $1,061,672.00 100% $ 615,792.00 58.00% $ 141,625.00 13.34% $ 304,255.00 28.66% $ 615,792.00 58.00% $ 346,771.00 32.66% $ 193,175.00 18.20% • Capital Outlay $ 76,251.00 7.15% Salaries for Staff Information: • Firefighter response hours 11,000 — 12,000 per year @ $8.50 per hour = $86,750.00 • Duty Crew or Duty Officer Pay (in lieu of firefighter response pay = $15,000.00) • Firefighter in -house training hours 3000 - 3300 per year @ $4 per hour = $12,600.00 • Firefighter station maintenance hours 1500 per year @ $10 per hour = $15,000.00 • Fire Officer Pay (refer to separate list for officer pay details) = $22,000 • Firefighter meetings, PR events, other hours 1600 per year @ $0 per hour = $0 July 27, 2010 (revised and updated 0813 10) -28- 10 10 10 C� A w N LoD z W �o -29- 0 0 N b�A z w O N U N N f Q U 00 M M N 0 O O O O O O O O r � N �O N N � �p l� .t � [� [� N 6. � � 66n 6M9 -- 64 Cam) 614 a� kn M kf) O pp N M N , 0 O N 00 00 It 00 00 p O 0 O � O c�) •—+ O 1v) t/� N N 6R 69 69 69 69 69 6R3 69 N v� o o 0 0 0 0 0 0 0 06 N 00 O m M r-1 00 M O It N 69 69 6A 69 can 69 64 69 .> N un is -- Ln N cli co -29- 0 0 N b�A z w O N I* 10 Mound Fire Department Fire Department Grant Summary Year Description of grant items $$ amount 2003 Life Safety Trailer for HazMat - $ 39,850 fully equipped with decontamination and detection equipment. 2003 800 MHz Radios — mobiles and portables $ 30,800 2004 Federal funds to investigate for cleanup $ 242,500 (T) of the Western Area Fire Training site $ 24,250 (M) 2004 Firefighter Safety — Fill station, Thermal $ 23,185 Imaging Camera, Gas Detector 2005 Self Contained Breathing Apparatus $ 15,750 (air tanks and masks for firefighters) 2006 Mobile Data Computers (MDC) for $ 15,000 Installation in fire apparatus — 3 each 2009 Radio Grant for 800 MHz Portable and $ 13,225 2010 Gas Detector Monitors and Calibration System $ 3,896 AWARDED $1900 2011 Rehab, Decon, and HazMat Equipment for $ 6,300 Life Safety Unit, including Gas Monitors, Cooling Chairs, CO Monitors, Misting Unit Total $ 170,260 1 -30- Source UASI /DEM HC Emergency. Preparedness Metropolitan Radio Board U.S. Economic Development Administration FEMA Firefighter Grant program UASI /DEM HC Emergency Preparedness UASI/ Homeland Security Metro Emergency Services Board - PSIC Grant Centerpoint Energy (50% match required) HCEP /UASI Homeland Security • MFD Grant summary continued Annlied for but not funded 2006 Self Contained Breathing Apparatus $ 126,310* Homeland Security (for daily use, rescue, and general response) Assistance to FF Grant program 2007 Self Contained Breathing Apparatus $ 109,543* Homeland Security and Breathing Air fill Compressor Assistance to FF Grant program 2008/09 Tanker Pumper 2500 gallon Apparatus $ 173,601 * Homeland Security with 1,000 GPM pump Assistance to FF Grant program 2008/09 Training funding assistance — Driving $ 19,130* Homeland Security Fire Officer II, HazMat, Fire Motor Assistance to FF Operator Grant AFG program 2009 Firefighter Training — various classes $ 15,975* Homeland Security AFG - FEMA 2009 Aerial Ladder Truck Refurbish or Replace $ 225,000* Homeland Security $935,000 AFG - FEMA Currently Working On Year Description of grant items $$ amount Source 2011* Personal Protective Equipment $ 9,750.00* Homeland Security 30 new sets of firefighter boots AFG — FEMA ($ 319.00 per pair) 2011* Bauer High Pressure 13 CFM $ 31,915.00* Homeland Security 6000 PSI Breathing Air Compressor AFG — FEMA with fill containment system, plus install costs 2006/07 Federal Funding to clean up Western $ 5 — 6 million* U.S. Economic Area Fire Training Academy site Development Ground contamination issues Administration * NOTE: indicates some matching funds required, either 5% or 10% -31- Mound Fire Department • 2011 and 2012 Goals and Strategic Plan Initiatives (for Fire Chief Greg Pederson) I. Personnel / People Status a. Increase firefighter staff to 40 members Completed in 2004/05 - ongoing b. Complete comprehensive and diversified training of firefighters Completed in 2005 - ongoing c. Implementation of "Duty Officers" Implemented part-time 2005 d. Research feasibility of "Duty Crew" Completed - but not implemented yet e. Maintain volunteer firefighter commitment f. Reorganize department officers structure II. Budget and Financial Management a. Develop a long term financial plan for existing station #1 b. Complete a cost analysis & budget for Minnetrista fire station c. Develop a operations /financial plan for a two fire station operation d. Evaluate existing Fire Contract Formula and change as needed e. Restructure and implement New Fire Contract formula for all f. Pursue other funding options i.e. grant money g. Establish hourly rates for firefighter staff and apparatus i. Complete Pension Plan Study, Improve for Long Term Success III. Equipment and Supplies a. Rethink, plan and budget apparatus replacement program b. Implement apparatus replacement plan cost saving initiatives b. Continue to do annual replacement of essential safety equipment c. Implement purchasing and cost control plan d. Purchase mutliple sets of Firefighter Turn - out -Gear thru JPA IV. Facility a. Maintain existing facility b. Consider other facility needs i.e. Minnetrista Work on final closeout of Mound P.S. Facility project Refinance Facility Bonds (listed above) V. Fire Prevention and Inspection b. Focus on Fire Code Services and Enforcement Strategic Plan Initiative - Fire Commission • updated April 2012 -32- Completed, but ongoing Completed in 2004/05 Completed for Station #1 in 2005 Completed proposal Minnetrista 2006 Completed for Station #1 & 2 in 2006 Completed in 2006 and 2010 Completed in 2006 and 2010 Ongoing work in progress (grant list) Completed in 2006 Completed in 2011 Revised plan in 2006 - Major Progress 2010 Implemented in 2006 with more in 2010 Ongoing Implemented in 2005 - ongoing 25 Sets purchased in 2011 Ongoing Project Plan /Budget complete 2006 Project complete - slightly under budget Refinance in 2012 Ongoing suucessful project • Z � W lie � o 0 z N U � U .fir W a U _ W a 1 Y U U A n bA v cc M O N Q > 3aa t o— b.¢ b U � � U � O "T-I 0. " A MOUND / SPRING PARK r4 H V1J M N D E a 8 bA Q L Rr o bA � ^C C by D O lie � o 0 z N U � U .fir W a U _ W a 1 Y U U A n bA v cc M O N Q > 3aa t o— b.¢ b U � � U � O "T-I 0. " A MOUND / SPRING PARK bA bA U bA S by W C d d d d d d I cd G d •,� 1 '� 1 cJ 1 1 1 1 •,� .a O a 1 o a �. O h „a o o q w�' ,' o o a, 1 a t: o o x d u x w � �._ -33- 1 1 1 1 I a U S by W d d d d d d d I cd G d •,� 1 '� 1 cJ 1 1 1 1 •,� .a O a 1 o a �. O h „a o o q w�' ,' o o a, 1 U S d d d d d d d d I d 1 1 1 1 1 1 tv e o o x d u x w -33- • Z w oio 0 M N C� :S i.n C� n.r C N C .7 ice, i� G� O a� a� A a� Piro :� C 0 0 • v C C ►D H V MEMO TO:. Mayor Mark Hanus Mound City Councilors City Manager Kandis Hanson FROM: Fire Chief Greg Pederson DATE: April 3, 2012 2415 Wilshire Boulevard Mound, MN 55364 Main: 952.472.3555 Fax: 952.472.3775 www.moundfire.com SUBJECT: Mound Volunteer Fire Relief Association, Inc. - Pension Plan Improvements On April 10, 2012, the Mound Volunteer Fire Department (MVFD) Relief Association, Inc. Board of Trustees will be requesting city council approval of fundamental changes, as well as benefit enhancements to the Mound Volunteer Fire Relief Association Pension Plan. The basic and essential • details of the proposed pension plan changes will be provided as part of the city council packet. As a long standing member of the MVFD Relief Association Board of Trustees and the Fire Chief, I have been personally involved in this very lengthy process of evaluating our existing MVFD Relief Association Pension Plan. I can assure you the pension plan evaluation mission has been a very thorough well thought -out process. This endeavor has been an ongoing project for the fire relief association members and me for more than 6 years. Our evaluation of our existing pension plan clearly calls for plan changes, essential plan updates, and Bylaw changes required to meet new State Statutes. The city council consideration of the proposed pension plan changes and pending city council approval is the next logical step in a lengthy, but obligatory process. Assuming city council approval is granted; the MVFD Relief Association, Inc. Bylaws will then be updated and /or changed to reflect the changes accordingly. The final step in the process will necessitate a vote to approve the pension plan and Bylaw changes by the entire MVFD Relief Association membership (including retried and active). I fully support the proposed pension plan changes, and believe the changes to the pension plan are critical to the long term success of the Mound Fire Department. Other important, well informed city staff members support this project as well, including City Manager Kandis Hanson, Finance Director Catherine Pausche, and the Fire Commission Members representing our fire contract cities. I have provided additional relevant information and important details to help facilitate the approval process. Please review the enclosed attachments to this memorandum for more detail. If you have any questions or concerns about this project, please contact me directly prior to the April 10, 2012 city council meeting. My office direct line phone number is 952- 472 -3533. • The Mound firefighters and I greatly appreciate your consideration and ongoing support! gsp Attachments -35- Mound Volunteer Fire Department Relief Association, Inc. • 2415 Wilshire Blvd. Mound, MN 55364 April 3, 2012 Dear Mound City Council Members, Mayor Mark Hanus & City Manager Kandis Hanson; On behalf of the Mound Volunteer Fire Department (MVFD) Relief Association, I am requesting your approval of some important changes to our pension plan. These changes are vital to the future success of our pension plan and will allow us to accomplish the following: • Pay better more suitable pension benefits to our firefighters based upon the present day job /work requirements reflective of the high activity levels related to call responses, firefighter training, and overall time commitment. • Meet our member's requests asking for more pension plan benefit options. • Transition to a more modern pension plan, with short term partial vesting. Also increase the pension benefits to firefighters with longer added years of fire department service (allowing for better retention of experienced fire fighters) • Improve the financial health and status of the pension plan, with the implementation of plan changes that ultimately reduce the unfunded liability (in the long term). • • Alignment (and updates) of our Bylaws to meet requirements from State Auditor, State Pension Plan Statutes, and Pension Plan Legislation concerning relief pension plans. The details of these proposed changes will be thoroughly outlined at the Mound City Council Meeting on Tuesday, April 10, 2012. Given the importance of the proposed pension plan changes, it is the intent of the MVFD Relief Association to work diligently to complete the process with the following timeline (next steps) if the measures are approved: • April /May 2012: Complete all new wording for provisions to MVFD Relief Bylaws • June 2012: Post changes to MVFD Relief Bylaws at Mound Fire Station and officially notify all active and retired members of pending pension plan changes. • July 2012: Conduct membership vote (fro approval) of the proposed MVFD Relief Bylaw and Pension Plan changes. We appreciate your continued support and look forward to presenting you with the findings of the recent pension study and answering all questions you have concerning the changes and the reasoning behind them. Thank you in advance for your time and consideration. Sincerely • Josh Clemons MVFD Relief Association President -36- Mound Volunteer Fire Department Relief Association, Inc. • April 4, 2012 Detail and Justification of Pension Plan Changes 1. Background: The existing Mound Volunteer Fire Department (MVFD) Relief Association Pension Plan has been very successful and well funded since the plan inception in 1972. Our current plan type is a Monthly Benefit Plan which is extremely rare and somewhat obsolete considering today's relief association pension plan standards. IMPORTANT NOTIE: The Minnesota State Auditors Office 2011 reports confirm that our pension plan is one of only 5 plans of the monthly plan type within the state. There are a total of 710 relief pension plans, so our plan is in the less than 1% category as compared to others. 2. Current Situation: as shown in the DRAFT Actuarial Valuation Report dated April 4, 2012, the funding level of the MVFD pension plan has rebounded and is now very good, especially when compared to many other public pension plans that are significantly underfunded. The Mound firefighters have made a conscious decision to keep their wages very low, and therefore contributed money into their pension fund. The time to increase the pension plan benefits is here; as there has not been any pension benefit increases for the past 10 years (refer the Actuarial Valuation Report and to 40 year financial summary included). 3. Critical Factors and Considerations: the biggest single issue and challenge facing the U.S. Fire Departments is Recruiting and Retention of Volunteer Firefighters. A competitive and top notch pension plan providing fair and equitable benefits is a top priority item for the long term success of the Mound fire department. The Mound fire departments ongoing (and past) • success with maintaining the high levels of firefighter staff and long term .employee commitment dependent on the .quality of the pension plan and the plan benefits. 4. Other Benefits/Risks: the benefits of the proposed pension plan changes are many, but the risks are very minimal. The critically important benefits include: potential to lengthen careers of key firefighter staff, better control of costs related to fire department budget, and a more modern pension plan that compensates firefighters for the period of time (or years) they serve. 5. Financial Considerations: the timing of the proposed pension plan changes has been delayed for many years relative to affordability. These changes are now clearly within our means and can be supported by the fire department budget long term. The State Benefits Guidelines, and our Actuarial Valuation Report would allow for a pension benefit increase maximum amount of $10,000 per year of firefighter service, but this proposal asks for $5,585 per year of service, which is very prudent and realistic. 6. Department Goals and Anticipated Outcomes: we expect the changes to help facilitate and maintain our successful firefighter volunteer staffing, and delay the need to hire part -time or full time hires (continue to use volunteers). Our staff is, and always will be our most important department asset. Approval of this plan would also create more pension fund financial stability and help lower our long term financial risk and should reduce the cities unfunded liability. 7. Key Activities, Next Steps and Timing: upon city council approval, the final Relief Bylaw language defining the detailed pension plan changes will post for a 30 day review and then be voted on by the entire MVFD Relief Association membership in July 2012. The two phase • implementation schedule for pension plan benefit changes is noted in the DRAFT Actuarial Valuation Report. The MVFD Relief Association Board of Trustees will finalize numerous Bylaws language changes that include the following: State of Minnesota Statute Law changes, beneficiary language changes, return to service and return to duty clauses, and pension benefits accrual language related minimum job performance requirements. -37- N m O V N a cc i .- U. L O O m a-+ O m 0 T-4 O N Ln c -38- Ln 0 0 0 N N C a Q ii N Ln C -- �- � m c r-i E -- C o Ln O :3 N N O c O O N E O O ? �' N L t Q U E ^ ri 0 O O °1 E E -v U -38- Ln 0 0 0 N N C a Q ii N N ^NCN N O b N A • M cd 3 cd to C;3 4 °v •--� °o —4 C) 3 O . bo > 3 .O ww �� 4 N "tj 0 � ? 4) ^O O O o O U .d O o cd y ¢ y p p O C. � a�i O tn ai o o 1* •2 O �O ova ° z o >1 CG 24 ON Cd w wn ° on to O cq-g "o "0 U >P.� �U�U�^ �wU C14 en &ma�yy cd Q) C 0 C) kn 3 a� d 4. Cd O �+ N U cd N N N � gyp+ +•• ..� N 41 .. v Q) cd O OJ 5 si O .O N O tom, O N' O ..fir • �" N N r-+ En O j✓'�i 6�7- a.O'cj �.fl.y", �y .0 (S o o w >zz: zz 5oUZ y rA an N W O ~ wl • � G � 'a . � r+ GA CI V � •� a Q� -39- H O O N w � � w 0 +-+ O U � C> �0 Cd O r. •.� >, d •-� N O N v� N N P, w m ti a to cd U V m o w M- o�al.� ry O cd xj _ O • • • N_ O N O O P-4 AM N N to ct v cld a� U C� W 0 ! 0 024 u 0 P4 -40- T C� N Q .--+ r-+ O N 00 CIS 0 a� O • • MOUND VOLUNTEER FIRE DEPARTMENT RELIEF ASSOCIATION, INC. December 31, 2011 Actuarial Valuation Reflecting Plan Changes April 24, 2012 Van Iwaarden Associates 840 Lumber Exchange Ten South Fifth Street Minneapolis MN 55402 -1010 612.596.5960 f: 612.596.5999 www.vaniwaarden.com -41- 10 1 10 • MOUND VOLUNTEER FIRE DEPARTMENT RELIEF ASSOCIATION, INC. December 31, 2011 Actuarial Valuation Table of Contents Page Introduction and Actuarial Certification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Valuation of the Current Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Reconciliation of Plan Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Changes in the Unfunded Actuarial Accrued Liability . . . . . . . . . . . . . . . . . . . . . . . . . 5 Determination of Amortization Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Average Available Financing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Summary of Participant Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Summary of Changes in Membership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . v Summary of Plan Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Actuarial Methods and Assumptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 -42- • MOUND VOLUNTEER FIRE DEPARTMENT RELIEF ASSOCIATION, INC. December 31, 2011 Actuarial Valuation Introduction and Actuarial Certification Purposes of the valuation This report presents the results of the December 31, 2011 valuation for the Mound Volunteer Fire Department Relief Association, Inc. Its primary purposes are: • to determine the annual municipal obligation to the plan, • to review the plan's funded status as of December 31, 2011, and • to document the actuarial impact of plan changes adopted during 2012. Sources of data The Relief Association supplied the December 31, 2011 data for all active and retired members. Wells Fargo supplied asset data for the special fund. We have relied on that data in preparing this report. Changes from the previous valuation This valuation reflects the plan changes approved by the Relief Association Board at their March 5, 2012 meeting. The changes are: • define monthly pension benefit as $30.25 times years of service subject to a maximum of 20 years, • new members and members with less than 10 years of service as of 1 /1 /2012 will receive a lump sum of $5,585 times years of service at retirement with a maximum of 20 years, • members with 10 or more years of service as of 1/ 1 /2012 will have the option of taking a lump sum payment or a • monthly annuity at retirement, • a graded vesting schedule is added for members with service from 10 to 20 years, • the service cap will be extended to 25 years beginning 1/1 /2013, and • the pre- retirement survivor annuity was changed to 100 %. In addition, the plan was amended to remove the $3,000 lump sum funeral benefit. That benefit will be paid from a different fund so it is not valued as a liability for the Relief Association Plan. These plan changes necessitated some assumption changes as well. The termination assumption described on page 12 was added and the retirement rate assumption was modified. The prior actuarial valuation of the plan was prepared as of December 31, 2009. Summary of valuation results The actuarial accrued liability used for determining the minimum required contribution increased from $4,389,143 as of December 31, 2009 to $4,996,365 as of December 31, 2011. Special Fund assets increased from $3,755,091 as of December 31, 2009 to $4,026,747 as of December 31, 2011. The fund has increased its unfunded accrued liability from $634,052 to $969,618 due to plan changes. The municipal contribution based on the results of this report before any offset for State Aid is $198,816, up about $22,000 from $176,658 determined by the 2009 valuation. • The State Aid amount is not yet known of course, but if it is $75,000 for 2012, the remaining minimum municipal obligation would be $123,816 annually for fiscal years ending 2012 and 2013. Since the budgeted municipal contribution for 2012 is $143,625, the additional benefits are supported by adequate contributions. -43- • MOUND VOLUNTEER FIRE DEPARTMENT RELIEF ASSOCIATION, INC. 2 December 31, 2011 Actuarial Valuation Introduction and Actuarial Certification (continued) Actuarial certification Chapter 356.216 of Minnesota Statues requires than an actuarial valuation of the fund be conducted periodically. The State Auditor has determined that a valuation must be conducted at least every two years. An actuarial valuation is a calculation to determine the normal cost and accrued liability of the fund and includes a determination of the payment necessary to amortize the unfunded liability over the stated period and a determination of the payment necessary to keep the unfunded liability from increasing. The funded ratio has decreased from 85.6% to 80.6% primarily due to plan changes. Any tax advice included in this report is not intended to be used, and cannot be used, to avoid any tax penalties. The actuarial assumptions and methods used to develop the financial disclosure amounts in this report were selected in accordance with the requirements of Government Accounting Standards Board Statement No. 25 (GASB 25). We are available to answer any questions on the material contained in this report, or to provide explanations or further details as may be appropriate. The undersigned credentialed actuaries meet the Qualification Standards of • the American Academy of Actuaries to render the actuarial opinion contained in this report. Respectfully submitted, Sandra L. Bruns, EA, FSA Consulting Actuary April 24, 2012 L /D /C /R: 4 /ek /sb /mm • -44- Mark D. Meyer, JD, FSA Consulting Actuary 10 lie I* MOUND VOLUNTEER FIRE DEPARTMENT RELIEF ASSOCIATION, INC. December 31, 2011 Actuarial Valuation Valuation of the Current Plan A. Actuarial accrued liability (AAL) 1. Active members 2. Vested terminated members 3. Retired members 4. Spouses receiving benefits 5. Children receiving benefits 6. Disabled members receiving benefits 7. Total actuarial accrued liability B. Special fund assets C. Unfunded actuarial accrued liability D. Credit for surplus E. Amortization payment 1. Amortization period 2. Payment F. Normal cost G. Annual contribution payable 1. Preliminary contribution (D. + E. + F.) 2. Administrative expense (previous year x 1.035) 3. Annual contribution (1. + 2.) 4. Estimated State Aid 5. Est municipal contribution (3. + 4., not less than zero) H. Funded Status -45- 2011 3 2009 Before Changes After Changes $ 1,325,849 $ 1,412,148 $ 1,774,444 329,285 248,367 311,839 2,472,347 2,579,527 2,667,715 261,662 234,354 242,367 0 0 0 0 0 0 $ 4,389,143 $ 4,474,396 $ 4,996,365 $ 3,755,091 $ 4,026,747 $ 4,026,747 $ 634,052 $ 447,649 $ 969,618 $ 0 $ 0 $ 0 10 8 11 $ 78,203 $ 65,963 $ 111,173 $ 91,621 $ 85,529 $ 80,342 2010, 2011 2012, 2013 2012, 2013 $ 169,824 $ 151,492 $ 191,515 6,834 7,301 7,301 $ 176,658 $ 158,793 $ 198,816 (81,300) (75,000) (75,000) $ 95,358 $ 83,793 $ 123,816 85.6% 90.0% 80.6% luj I* 10 MOUND VOLUNTEER FIRE DEPARTMENT RELIEF ASSOCIATION, INC. December 31, 2011 Actuarial Valuation Reconciliation of Plan Assets 1. Value of assets on December 31 2. Contributions for the year a. Municipal contributions b. State contributions c. Supplemental benefits d. Total contributions 3. Benefits paid during the year 4. Expenses (non- investment) paid from plan assets 5. Investment earnings for the year 6. Asset value on December 31 (sum of 1. thru 5.) 7. Approximate rate of return a. By year b. Two year period -46- 4 2010 2011 $ 3,755,091 $ 4,137,018 130,355 172,592 78,104 74,362 0 0 208,459 246,954 (236,479) (243,252) (17,960) (7,054) $ 4,137,018 $ 4,026,747 11.5% -2.6% 4.2% • • 0 MOUND VOLUNTEER FIRE DEPARTMENT RELIEF ASSOCIATION, INC. December 31, 2011 Actuarial Valuation Changes in the Unfunded Actuarial Accrued Liability A. Liability Bain or loss 1. Expected actuarial accrued liability (AAL) a. AAL as of December 31, 2009 b. Normal cost 2010 c. Normal cost 2011 d. Benefit payments 2010 e. Benefit payments 2011 (estimated) f. Interest to December 31, 2011 on a. through e. g. Expected AAL on December 31, 2011 (sum of a. through f.) 2. Actual AAL on December 31, 2011 a. Before any assumption, method or plan changes b. After assumption and method changes, but before plan changes c. After assumption, method and plan changes 3. Difference from the expected AAL a. (Gain) or loss due to plan experience diff from that expected (2.a. - 1.e.) b. Due to changes in actuarial assumptions and methods (2.b. - 2.a.) c. Due to plan changes (2.c. - 2.b.) d. Total (a. + b. + c.) B. Asset gain or loss 1. Expected value of assets a. Value of assets on December 31, 2009 b. Benefit payments c. Contributions d. Interest to December 31, 2011 on a., b. and c. e. Expected assets on December 30, 2011 (sum of a. through d.) 2. Actual assets as of December 31, 2011 a. Before any assumption or method changes b. After assumption and method changes 3. Difference from the expected assets a. (Gain) or loss due to plan exp diff from expected (1e. - 2a.) b. Due to changes in actuarial assumptions Et methods (2a. - 2b.) c. Total (a. + b.) C. Changes in the unfunded actuarial accrued liability 1. Unfunded AAL on December 31, 2009 (A.1.a. - B.1.a.) 2. Expected unfunded AAL on December 31, 2011 (A.1.e. - B.1.e.) 3. Changes a. Actuarial (gain) or loss (A.3.a. + B.3.a.) b. Changes in actuarial methods and assumptions (A.3.b. + B.3.b.) c. Changes in plan provisions (A.3.c.) d. Total change 4. Unfunded AAL on December 31, 2011 -47- 01 $ 4,389,143 91,621 91,621 (236,479) (243,252) 439,896 4,532,550 4,541,049 4,541,049 4,996,365 8,499 0 455,316 463,815 3,755,091 (479,731) 455,413 370,582 4,101,355 4,026,747 4,026,747 74,608 0 74,608 634,052 431,195 83,107 0 455,316 538,423 969,618 VANIWAARDEN • MOUND VOLUNTEER FIRE DEPARTMENT RELIEF ASSOCIATION, INC. December 31, 2011 Actuarial Valuation Determination of Amortization Period 6 The amortization periods shown are required by Minnesota Statutes 569.773 Subd 4. Per Subd 4.(d)(3)(i) actuarial losses are amortized over 10 years. Per Subd 4.(d)(3)(v) increases in the UAL due to plan changes are amortized over 20 years. A. Amortization of actuarial losses 1. Unfunded AAL due to actuarial losses 83,107 2. Payment to amortize loss over 10 years 10,250 B. Amortization of prior UAL 1. AAL before plan and assumption changes 4,541,049 2. UAL before any change (not less than zero) 431,195 3. Prior amortization years (updated to valuation date) 8 4. Payment to amortize UAL over prior period 63,538 C. Amortization of plan change 1. AAL after plan and assumption changes 4,996,365 2. UAL after changes (not less than zero) 969,618 • 3. Change in UAL for plan and assumption changes 455,316 4. Payment to amortize over 20 years 34,796 D. Total amortization payments 108,584 is E. Period to amortize UAL after changes by payments in D. 11 -48- U� 10 MOUND VOLUNTEER FIRE DEPARTMENT RELIEF ASSOCIATION, INC. December 31, 2011 Actuarial Valuation Average Available Financing State City Credit for Active Average Aid Contrib Surplus Total Members Financing 2009 $ 75,889 $ 133,500 $ 0 $ 209,389 43 $ 4,870 2010 78,104 130,355 0 208,459 39 5,345 2011 74,362 172,592 0 246,954 41 6,023 Average available financing for 2012: $ 5,413 Minimum required for $30.25 monthly benefit: 2,511 Maximum monthly benefit permitted: 66 Maximum lump sum benefit permitted: 10,000 7 Notes: • The State Aid and City Contributions shown are those made during the calendar year indicated. • The number of active members is from the State Reporting Form for the year indicated, that is, the number as of December 31 • The average available financing for 2012 is the average for the three years preceeding 2012 (2009 to 2011). See Minnesota Statutes 5424A.02. -49- � 0 I* MOUND VOLUNTEER FIRE DEPARTMENT RELIEF ASSOCIATION, INC. December 31, 2011 Actuarial Valuation Summary of Participant Data A. Active employees 1. Number 2. Average age 3. Average years of service B. Vested terminated CM/6vees 1. Number 2. Total annual deferred benefits 3. Average annual benefit 8 2009 2011 43 41 39.2 40.0 10.4 11.5 4 $28,080 7,020 3 $21,780 7,260 C. Retirees 1. Number 29 31 2. Total annual benefits being paid $203,580 $225,060 3. Average annual benefit being paid 7,020 7,260 D. Widows 1. Number 6 5 2. Total annual benefits being paid $31,590 $27,225 3. Average annual benefit being paid 5,265 5,445 E. Children 1. Number 0 0 2. Total annual benefits being paid $0 $0 3. Average annual benefit being paid n/a n/a F Total number ofaarticivants (A.1. + B.1. + C, I. + D.1. + E.1.) 82 80 -50- MOUND VOLUNTEER FIRE DEPARTMENT RELIEF ASSOCIATION, INC. December 31, 2011 Actuarial Valuation I* A. Members on December 31, 2009 B. Chances in the member eroua 1. New active members 2. Retirements 3. Separation, deferred lump sum 4. Separation, not vested 5. Separation, disability benefit 6. Deaths 7. Lump sum distributions 8. Rehire 9. Total changes C. Members on December 31, 2011 I* n I* Summary of Changes in Membership Terminated Active Vested Retired Beneficiaries Total 43 4 29 6 82 3 (1) (1) (2) 3 (1) 1 (3) 31 (1) (1) 3 0 0 (3) 0 (2) 0 0 6 (2) (1) 2 (1) (2) 41 3 31 5 80 -51- • MOUND VOLUNTEER FIRE DEPARTMENT RELIEF ASSOCIATION, INC. 10 December 31, 2011 Actuarial Valuation Summary of Plan Provisions A. Plan provisions as of December 31, 2011 1. Eligibility: (a) Members covered: Members of the Mound Volunteer Fire Department Relief Association, Inc. after having served a one year probationary period. Minimum age is age 18. 2. Retirement dates: (a) Normal retirement: The later of age 50 or after completion of 20 years of service. 3. Pension Amounts: (a) Monthly Service Pension: 1) For active members with less than 10 years of service as of 1/1 /2012: $5,585 per year of service up to 20 years paid as a lump sum at normal retirement. The service cap is increased to 25 years effective 1 /1 /2013. 2) For active members with 10 or more years of service as of 1/1 /2012: • $30.25 per month per year of service up to 20 years paid as a life annuity starting at normal retirement, or • $5,585 per year of service up to 20 years paid as a lump sum at normal retirement. . • The service cap is increased to 25 years effective 1 /1 /2013. (b) Deferred Service Pension: 1) The Monthly Service Pension payable at age 50 multiplied by the following vesting schedule: Years of Service Vested Percent Less than 10 0% 10 60% 11 64% 12 68% 13 72% 14 76% 15 80% 16 84% 17 88% 18 92% 19 96% 20 100% 5. Death and Survivor Benefits: (a) If an active member dies, his spouse (or children if there is no spouse) wilt receive the member's accrued benefit without regard to vesting, payable immediately. (b) If a deferred or retired member dies, his spouse (or children if there is no spouse) will receive 75% of the member's accrued benefit payable immediately. • (c) If there is not spouse or children, then the beneficiary will receive a lump sum equal to 60 times $30.25 per year of service. -52- • MOUND VOLUNTEER FIRE DEPARTMENT RELIEF ASSOCIATION, INC. 11 December 31, 2011 Actuarial Valuation Summary of Plan Provisions B. Plan provisions effective after December 31. 2011 On 1/ 1 /2013 the service cap increases from 20 years to 25 years. We have reflected this change in the calculation of the cash contributions. C. Changes in plan provisions since prior year • The monthly benefit has changed from $29.25 per month to $30.25 per month after 20 years of service at normal retirement. For retirements on or after January 1, 2013, the 20 year limit on credited service is increased to 25. • An optional lump sum benefit of $5,585 for each year of service has been added for active members with ten or more years of service on January 1, 2012. For retirements on or after January 1, 2013, the 20 year limit on credited service is increased to 25. • For active members with fewer than ten years of service on January 1, 2012, a lump sum benefit of $5,585 for each year of service up to 25 replaces the old $585 per month annuity benefit after 20 or more years of service. • The accrued benefit is now vested after 10 years of service. The vesting schedule is shown in the table on the previous page. . • The funeral benefit is no longer valued since it is not paid from the Special Fund. -53- r� f• J 0 • MOUND VOLUNTEER FIRE DEPARTMENT RELIEF ASSOCIATION, INC. December 31, 2011 Actuarial Valuation Actuarial Methods and Assumptions A. Economic Assumptions Interest rate 5.00% B. Demographic Assumptions Mortality 1971 Group Annuity Mortality Table Turnover Turnover rates are based on 50% of the SOA Basic Age Turnover and 50% of PERA Police and Fire. Sample rates are: Ape Rate 20 11.74% 25 10.88% 30 7.05% 35 5.12% 40 4.13% 45 3.56% 50 0.00% Retirement 50% after age 50 and 20 years of service 5% for each year from 21 to 29 and age 50 100% after age 50 and 30 years of service 100% at age 65 regardless of service Form of payment For participants with at least 10 years of service on 1/1 /2012: 50% will choose a life annuity, joint and 75% to survivor for married participants and 50% will choose the lump sum option. For participants with less than 10 years of service on 1 / 1 /2012: Lump sum Marital status All members are assumed to be married with wives 3 years younger than husbands. C. Actuarial Methods 12 • Normal Cost and Actuarial The Entry Age Normal actuarial cost method. This actuarial funding Accrued Liability method is one of the projected benefit cost methods. The normal cost for each active member is the annual amount required from the member's entry date to retirement date so that the accumulated contributions at termination or retirement will equal the liability at that time. This cost is expressed as a level annual amount. • Actuarial Value of Assets The actuarial value of assets is equal to the market value of assets. • Benefits Valued All benefits summarized in the plan provisions section of this report. D. Changes in assumptions and methods from the prior year • The following assumptions were changed: Retirement rates were changed from 100% at the later of age 53 and 20 years of service to the rates shown above. The following assumptions were added: • Turnover rates were added for the January 1, 2012 valuation. • We assumed that for those participants with a choice of a lump sum payment or monthly benefits, that 50% will choose a lump sum. -54- i Cd cq N , �N N N �^� p u 0 0 O N �N pN N N 03 V N N N M Q r.0 c� 3 m cld Cld O N �N cd m CIS a) �---� cd cl c� �-- 3 • V ~ . Q�j CJ Cl 4-A CIS 4 to tb o Q M i.., In O O n U C13 Q cn c,3 cn En C13 4� • cri cYi 4 00 C� -55- 0 Mound Volunteer Fire Department Relief Association, Inc. Pension Study Overview November 2006 Background: The Mound Volunteer Fire Department Relief Association, Inc. ( MVFDRA) and its Pension Plan have historically been well funded and very successful. The conception of the pension funds in the early 1970's, the ongoing financial contributions, and the well managed investments have all contributed to the success of the plan. All of these factors have contributed to making the MVFDRA Pension Plan one of the better funded fire department pension plans in the State of Minnesota. I believe this successful pension plan and its financial benefits for its retiring (fully vested) members are a major contributing factor to the ongoing Mound Fire Department recruiting and retention success. Proposal: As the Fire Chief and a member of the Mound Fire Relief Board of Directors, I believe it would be in the best interest of all parties involved to support a study of the current pension plan vs. the other available and viable options for improving the plan and improving benefits to the retirees in the future. The study must also compare the future costs of funding the existing pension plan as is vs. the cost of an improved plan; this assumes of coarse that the result is an improved pension plan. The current pension benefit retirees, active firefighters, and all the cities that fund the plan should all be involved as interested parties in this study. Current Pension Plan strengths: • The pension plan has always been very well funded • Funds have been well managed and investments have been quite successful. • The fund balance is over 3 million dollars (now over 4 million). • The pension plan been consistent, is well understood, and been in place since inception • The existing plan typically provides increasing (raises in paid out benefits) and ongoing financial benefits to all retired benefit recipients as investment gains allow. • The current firefighters and the retirees are familiar with the current plan and have accepted the plan as it is. Current Pension Plan weaknesses or issues: • The MFD current "Monthly Benefit Plan" (vs. a Lump Sum Benefit Plan) is rare among Minnesota Fire Relief Associations. Only about 1 -2% of the fire department pension plans in Minnesota use the monthly payment benefit plan format that we use today. • The firefighters can only be vested after 20 consecutive years of service, nothing less than 20 years. This is also quite uncommon in pension plans today. • The firefighters that serve the department more than 20 years do not receive equitable pension benefits for time worked beyond 20 years. This is a disincentive for firefighters to stay beyond 20 years. 1 -56- • The current pension plan forces a fully vested firefighter to retire at age 50 years, or lose his /her monthly pension benefits. This age limit or 50 year old retirement age is no longer 49 appropriate for the times. • All of current retirees drawing a pension continue to get the same pension increases. This seems inequitable for the current firefighters and recent retirees that have made a much higher time commitment. • I have concerns about the pension fund balance and its financial ability or wherewithal to support the existing plan and benefit format in the future. Goals of the Study: • Continue to improve the MVFDRA Pension Plan and provide for consistency and improved benefits to all of its members. • Insure fair and equitable benefits are provided now and in the future for both the current retirees and active firefighters (future retirees). • Consider retirement benefit options that make the pension plan more appropriate for today's environment and based upon firefighter years of service issues. • Evaluate and compare the existing pension plan to other plans or several other available options,. to see if changes need to be made. • Update the pension plan only if it is determined to be beneficial to all parties involved and as appropriate for now and the future. Priorities and Options to Consider: 1. Maintain a fair and equitable benefit package for current retirees, with pension benefit fiscal increases that are reasonable and appropriate. • 2. Create a pension benefit transition plan for active firefighters that allows for, and provides options (choices) for a fair and equitable pension benefit. Maybe a five year transition plan that allows for either monthly or lump sum benefits. 3. Establish a new and improved MVFDRA pension benefit plan for the firefighter members that will retire further down the road and into the future. A plan that is more appropriate for the time of retirement and level of commitment required. 4. Consider both of these vesting items: a). shorten the vesting requirements in terms of years of service to possibly 10 years with reduced pension benefits b). also provide more financial benefits to those who serve the department more that 20 years. 5. Increase the mandatory retirement age to something above the present 50 years of age, to something higher like 55 or 60 years of age. 6. Consider allowing members a break in consecutive years of service, with credit for previous service time upon return to active duty. Establish clear cut rules for this. Pension Plan Study to possibly include the following parameters: • Regular (possibly annual) benefit increases or cost of living benefit increases for all retirees on the existing monthly pension benefit plan. • Analyze and forecast what the realistic outlook is for continued benefit $$ increases in monthly benefits based upon the current fund balance, anticipated fund investment performance, and the beneficiaries. • Transition to a financial pension benefits system that allows members to make a one time choice of either a). a monthly pension benefit plan or b). a lump sum benefit plan. • Consider shortening the vesting requirements to ten (10) years, with reduced pension benefits prorated for members with less than the fully vested time of 20 years. 2 -57- • Consider improving the pension benefits for members that serve more than 20 years, by providing equal financial benefits for each year served beyond the fully vested 20 years. • • Consider increasing the mandatory retirement age to 55 — 60 years of age. • Factor into the study the costs associated with the concept of having more than one fire station (multiple fire stations in Minnetrista), and the possibility of staffing and operating 2, 3, or more fire stations. • Evaluate the pension plan "financial impact' and funding requirements of increasing the Mound Fire Department staff to 45 -48 firefighters. What is the long term financial effect and impact, all thing considered. GSP 112906 • • -58- Mound Fire - 40 Year Financial Summary Year Operating Budget Hourly Wage Pension Contribution 2% Contribution Pension Benefit 1973 $ 3.50 $ 9,743.00 $ 11,514.00 $ 70.00 1974 $ 3.50 $ 7,410.00 $ 15,090.00 $ 70.00 1975 $ 3.50 $ 10,589.00 $ 12,443.00 $ 70.00 1976 $ 3.50 $ 13,419.00 $ 13,782.00 $ 120.00 1977 $ 3.50 $ 13,158.00 $ 16,300.00 $ 120.00 1978 $ 3.50 $ 20,808.00 $ 18,901.00 $ 145.00 1979 $ 3.50 $ 25 421.00 $ 21,689.00 $ 145.00 1980 $ 5.10 $ 9,780.00 $ 23,906.00 $ 185.00 1981 $ 107,950.00 $ 5.43 $ 41,271.00 $ 26,244.00 $ 185.00 1982 $ 120,050.00 $ 5.80 $ 32,880.00 $ 35,495.00 $ 210.00 1983 $ 5.80 $ 33,000.00 $ 29,974.00 $ 210.00 1984 $ 6.00 $ 36,300.00 $ 31,249.00 $ 240.00 1985 $ 134,650.00 $ 6.00 $ 39 930.00 $ 34,021.00 $ 250.00 1986 $ 142,802.00 $ 6.00 $ 43,923.00 $ 39,620.00 $ 290.00 1987 $ 6.00 $ 48,325.00 $ 42,194.00 $ 290.00 1988 $ 221,430.00 $ 6.00 $ 53,147.00 $ 44,857.00 $ 350.00 1989 $ 229,230.00 $ 6.00 $ 58,462.00 $ 45,818.00 $ 350.00 1990 $ 234,290.00 $ 6.00 $ 64,308.00 $ 46,024.00 $ 395.00 1991 $ 256,000.00 $ 6.00 $ 66,880.00 $ 46,041.00 $ 395.00 1992 $ 251,600.00 $ 6.00 $ 69,556.00 $ 45,725.00 $ 395.00 1993 $ 274,200.00 $ 6.00 $ 73,338.00 $ 42,738.00 $ 425.00 1994 $ 270,190.00 $ 6.00 $ 75,231.00 $ 45,541.00 $ 425.00 1995 $ 285,330.00 $ 6.00 $ 80,500.00 $ 48,685.00 $ 425.00 1996 $ 6.50 $ 85,394.00 $ 64,108.00 $ 460.00 1997 $ 335,320.00 $ 6.50 $ 88,810.00 $ 63,412.00 $ 460.00 1998 $ 360,220.00 $ 6.50 $ 92,360.00 $ 64,712.00 $ 510.00 1999 $ 409,680.00 $ 6.50 $ 96,050.00 $ 66,128.00 $ 510.00 2000 $ 411,520.00 $ 6.50 $ 101,810.00 $ 68,798.00 $ 510.00 2001 $ 415,850.00 $ 7.00 $ 105,880.00 $ 73,287.00 $ 585.00 2002 $ 439,470.00 $ 7.50 $ 109,060.00 $ 84,816.00 $ 585.00 2003 $ 464,460.00 $ 7.50 $ 112,340400 $ 106,833.00 $ 585.00 2004 $ 451,410.00 $ 7.50 $ 115,700.00 $ 140,838.00 $ 585.00 2005 $ 479,300.00 $ 7.50 $ 118,600.00 $ 108,098.00 $ 585.00 2006 $ 507,930.00 $ 8.00 $ 122,160.00 $ 116,354.00 $ 585.00 2007 $ 539,730.00 $ 8.00 $ 125,830.00 $ 102,730.00 $ 585.00 2008 $ 8.00 $ 129,600.00 $ 86,739.00 $ 585.00 2009 $ 8.50 $ 133,500.00 $ 75,889.00 $ 585.00 2010 $ 8.75 $ 137,500.00 $ 78,104.00 $ 585.00 2011 $ 9.00 $ 141,625.00 $ 74,362.00 $ 585.00 2012 143,625.00 2013 2014 a8104�,00 a $ s 84 00000 605.OQ 2015 160 '00.00 . $ 86OOCi 00 :$ X06,00 2016 1600:0 00;0:00' 605.00 2017 $ ... - .,'".0'00,00' X00;000 2018 2019 2020 . } ,. 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Accomplish the fire district plan by utilizing existing resources from Mound Fire and St. Bonifacius Fire. Advantages: • Better overall strategic planning for future with longer term contracts. • Restructuring administration for effectiveness and efficiency • Financial consolidation efficiency and more consistency. • Improved service through efficient resources utilization. • Much improved fire operations, through strategic planning, and staffing. • Improved Capital Equipment and Fire Apparatus Capital planning. • Better, more consistent firefighter training. • Standardization of documentation for all fire departments • Utilization of existing facilities, apparatus, equipment, staff • Challenges: • Allocation of financial revenue appropriately. • Current wage and Pension Plan inconsistencies. • Proper allocation and placement of fire apparatus and equipment. • Maintaining fire department identity and ownership. • Establishment of appropriate / acceptable organizational structure. Other Issues: • Future fire station study and placement. • Recruitment and allocation of firefighter personnel for stations. • Long term budget forecasting and cost control. NOTE: Refer to Mound Proposal dated 12/12/2011 for assumptions and specific details -65- Other assumptions or considerations with St. Bonifacius Fire as part of the Fire District solution: • • The implementation time frame or start u date will be January 1 2013 or begin the p p rY � g transition before January 1, 2013 as allowable and appropriate. • Full implementation will be a work in progress and will take place after January 1, 2013 as an ongoing continuous improvement project. • One, all inclusive Fire Department Budget will be submitted which will contain all aspects of the budget: Administration, Operations, Pension Plan funding, Facilities, Capital Equipment and Apparatus Plan, a combined Staffing Plan. • The overall Fire Protection costs will likely not be reduced, however core services will continue to improve, and certainly be more efficient and effective long term. • A 10 year contract agreement will be in place. • Fire Station Facilities: utilize the existing two fire station facilities, or the Mound facility plus temporary location(s). • Expansion and additional fire stations will be necessary in the future, stations will be built and operated by Mound Fire as part of the Fire District. • Minimal Capital Apparatus or Equipment purchases required (short term) as we use existing apparatus and deploy or locate as necessary. • A full time Fire Chief and a full time Administrative Assistant will be budgeted. • The staffing models and fire department response protocols will change, utilizing more time conscious efficient methods (not a cost savings) such as Duty Officer, Duty Crews, and All Call paging concepts. Firefighter numbers will remain similar to current staffing levels, may fluctuate + or — 10 % depending on staffing models • Computer Aided Dispatch "CAD Zones" will be evaluated, redrawn, and reconfigured as necessary to improve response times and efficiency. • Primary Protection and Geographical Fire Areas (which fire department "Primarily" serves the geographic area) will be redrawn and department response by CAD Event Types will be evaluated and reconfigured. • Automatic Mutual Aid will be more prevalent, expanded, and will likely include the City of St. Bonifacius. • All OSHA Laws and relevant NFPA Standards will be adhered to meet firefighter safety, response times, and service quality objectives 2 -66- • Fire District Options and Costs: • Option A: Keep existing Fire Protection Contracts with Mound Fire and St. Bonifacius Fire each protecting a portion of the City of Minnetrista. Total Cost 2012: $ 442,105 • Option B: Mound Fire Department provides fire protection for all areas of the City of Minnetrista by consolidating with and utilizing existing resources from both Mound Fire and St. Bonifacius Fire. Total Cost 2013: $ 428,400 - $473,495 (up or down 5% or $22,540) • Option C: Mound Fire Department provides fire protection for all areas of the City of Minnetrista by utilizing existing resources from Mound Fire (without St. Bonifacius Fire), and the use of duty crews staffing and short term temporary facilities and systems. • Total Cost 2013: $ 622,003 (up 29% or $ 179,898 plus buildin ) • • Option D: Mound Fire Department provides fire protection for all areas of the City of Minnetrista by utilizing existing resources from Mound Fire (without St. Bonifacius Fire), and the use of part- time duty crews staffing and only the Mound Fire Station Facility. Total Cost 2013: $ 424,811 down 3.9% or $17,294 3 -67- • August 13, 2010 TO: Kandis Hanson, City Manager FROM: Greg Pederson, Fire Chief SUBJECT: MFD 2011 Fire Department Budget and Financial Considerations On July 29th the Mound Fire Commission met for our regularly scheduled quarterly meeting. At the meeting the group discussed and accepted (with some reservations) the 2011 proposed fire department budget which reflected a 1.44% percent increase over the 2010 budget. Further discussion on the 2011 budget identified and focused on some of the major budget concerns for the fire department and the financial challenges for all municipalities. In the end, • the representatives from the fire commission cities asked me to revisit the 2010 proposed budget and reduce line items wherever possible, including the proposed staff pay increases. The result of further reduction of line items resulted in the current proposed 2011 Fire Department budget which reflects a .84 % overall increase over the 2010 budget, with a .35 % increase in operating costs (refer to attachment). The acknowledgment of our future (major) Budget and Financial items and commitments should be considered as we forge ahead. The key items discussed were: • The Mound Fire Department Budget and Cost Control Plan includes cautious firefighter staffing levels, use of duty officers or duty crew staffing, continued implementation of the apparatus utilization plan, and other cost saving concepts. • The MFD Apparatus Replacement Program and the fact that this account is likely underfunded, primarily because of the need to replace our 1981 Sutphen 100' Aerial Ladder Truck. Note: this aerial ladder truck is a key component of our current Insurance Services Office Public Protection Classification rating in all cities we serve. • Completion of a MFD Relief Association Pension Plan study and continuing to maintaining adequate funding of the Mound Fire Relief Pension Fund, which took a major investment hit in 2008 and 2009. The above listed topics are very important and should be considered and discussed as part of our • budgeting process for the future. -68- Other financial considerations and potential cost savings measures for 2011 are: Capital Equipment Purchases: • Only $2,100 in the new capital spending budget for 2011 which is for three (3) new computers, 2 desk tops for administration and 1 laptop for training officer. Possibly can purchase the 2 desk tops at $1,200 in 2010 using funds from the current operations budget. • The existing SCBA lease to own contract for 24 Self Contained Breathing Apparatus continues through year 2012 and then ends, which is an annual cost of $18,251. Dollar savings will not be apparent until 2013, at which time we might need to designate the funds toward a Ladder Truck purchase. • Replacement of 1981 Sutphen Ladder Truck, and all related including replacement options and finances will be discussed at October 2010 Fire Commission meeting. • Other Capital Equipment purchases include approximately $32, 400 for 10 year equipment certificates already issued for two new fire apparatus. • All other Capital Equipment expenditures from 2010 and several items from previous years have been delayed (ongoing delay) which will eventually catch up to us. • Staffing Items for Consideration: • Reorganize firefighter staff hours and response based upon a reconfigured plan, change some staff to part time duty officers, and reallocate firefighter wages or salary. • Implement duty officer or duty crew programs on certain types of emergency calls (may be small $$ savings or no savings). • Evaluate the current volunteer firefighter staff levels based upon the present level of 42 firefighters, and hire new probationary firefighters from waiting list as budget allows. Potential Savings through Elimination of Programs: • Most of our extra public relations programs, events, and activities are supported with volunteer time and do not provide much savings potential. • Eliminate Fire Code and Fire Inspection support from MNSpect ($4,750 annually), but this would create major deficiencies in our fire code and inspection support to Mound and all other contracting cities. • Fire Prevention materials and supplies costs $1,500 annually, but get lots of mileage out of this at all of our public safety and public relations events.. • • Sell the WAFTA Site and eliminate the $2,000 annual dues (this is a goal, but wishful thinking at least in the short term). 0 -69- • • >~ r N U p d N OV O ° 64 V) o l� O 64 N N a.. 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