FY 17 Annual Report

Special Revenue Funds

2017

CITY OF SPENCER, IOWA

POLICE PENSION FUND

FUND #118

FUND INFORMATION

This fund accounts for the City's contribution into the Municipal Police and Fire Retirement System (411 System). The 411 System is a state controlled pension fund for municipal police and fire employees. These employees do not qualify for IPERS or Social Security benefits. This fund is one of six separate employee benefits funds created by the City to account for certain employee benefits. Legal authority for the fund is established by two sections of the Iowa Code. Iowa State Code chapter 386.61 provides authority for municipalities to establish a fund for the purpose of "accounting for pension and related employee benefit funds as provided by the City Finance Committee," while also providing the authority to levy a tax in the amount necessary to meet these obligations. Chapter 545.4 of the Administrative Code of Iowa provides the City Finance Committee's definition of eligible benefits and how they must be accounted for. During the 2009 legislative session, a bill was passed amending section 411.I6(5)(c)(2) of the Code of Iowa. This amendment added a presumption for police and fire personnel that any infectious disease and/or cancer is presumed to have been contracted during the performance of the duties, placing fiduciary responsibility for all related medical claims upon the employer. Prior to the creation of the 411 System, the City maintained its own Police Pension fund. With the conversion to the 411, the City retained certain funds and has used those funds to lessen the burden on the property taxes. However, in the coming years, these funds will have been exhausted and the full amount of the City's contribution will be placed on the property tax roll. The City levies property taxes to cover the its portion of police pension payments. For FY17, the City levied $0.59295 / $1,000 of valuation to pay police pension payments. This is an increase over the FY16 levy of $0.58711, an increase of $0.00584 / $1,000 of valuation. The total dollars increased slightly in FY17 due to the amount of existing reserves dwindling and the transfer of payments to the property tax levy.

CURRENT BUDGET

YEAR TO DATE

% OF

FY 2016 ACTUAL

ACTUAL

BUDGET

REVENUES

TAXES

273,290.00 11,822.00

288,920.70 12,419.92

105.72 105.06 145.64

278,039.97

INTERGOVERNMENTAL

-

USE OF MONEY

1,000.00

1,456.37

1,406.11 279,446.08

TOTAL REVENUES

286,112.00

302,796.99

105.83

EXPENDITURES EMPLOYEE BENEFITS

303,290.00

298,466.09

98.41

294,229.82 294,229.82

298,466.09

98.41

303,290.00

TOTAL EXPENDITURES

Fund Balance

INCREASE / (DECREASE)

BALANCE

BALANCE

REVENUES

EXPENDITURES

JULY 1, 2016

JUNE 30, 2017

4,330.90

159,669.43

302,796.99

298,466.09

164,000.33

SPECIAL REVENUE