1998-06-16MINUTES - COMMITTEE OF THE WHOLE - JUNE 16, 1998
The meeting was called to order at 7:30 p.m. Members Present:
Mayor Polston;
Councilmembers: Ahrens,
Hanus and Weycker. Absent
and Excused: Jensen.
Also Present: Members of the Mound Fire Relief Association: Jeff Andersen, Kevin Grady,
Mike Savage, Randy Engelhart and Gene Gervais; Gino Businaro, Finance Director; and Ed Shukle,
City Manager.
Review of 12/31/97 Actuarial of the Mound Fire Relief Association
City Manager Ed Shukle introduced the subject. He indicated that the Association has been in
existence for 75 years and has provided a pension benefit to volunteer firefighters on a monthly basis
based upon a minimum of 20 years on the Fire Department.
The purpose of discussing the actuarial at this time was to review the feasibility of providing a
pension increase in the near future without increasing the unfunded accrued liability of providing
the pension benefit. Shukle indicated that this matter has been under study for the past 3-4 years as
the unfunded accrued liability amount continued to increase. Based upon the 1997 actuarial, the
unfunded accrued liability has been reduced but any increases to the pension benefit will drive the
unfunded accrued liability up and likewise pushes out the statutory date that the amount must be
fully funded. Excellent investment practices have assisted in reducing the unfunded accrued liability
amount as well as increases in the fire district's contributions and increases in state fire aid. City
staff indicated that the unfunded accrued liability issue continues to be a concern and wanted the
City Council to understand that as it looks at future pension increases.
The Association defended the actuarial indicating that the pension benefit increase could be an
additional $50 per month which puts the pension benefit at $510 per month from its present $460
per month. This could take place without any increases in the fire district's contributions. However,
the Association indicated that they would like to see a 4% increase in the fire district's contribution
as it has occurred in the past several years. City staff asked if the Association has looked at other
ways of dealing with these pension issues. Their response was basically that with the revenues that
they have received, the excellent return on investment, expected interest income and that the reduced
unfunded accrued liability as estimated by the actuarial, they did not propose any other revenue
alternatives other than what is presently in place.
The Council consensus was to grant the increase of $50 in the form of a resolution to go into effect
on September 1, 1998. This item will appear on the agenda at the August 11, 1998 regular City
Council meeting. In addition, the 4% fire district contribution will be included in the 1999 Budget.
Update on Minnetonka Boat Rental
Committee of the Whole Minutes
June 16, 1998
Page 2
Ed Shukle updated the City Council on the possible location of a public access at the Minnetonka
Boat Rental location on Harrison's Bay. He indicated that appraisals would be conducted on the
Lebra property, Maloney property and the Boat Rental property. More information will be available
in August, 1998.
Encroachment Ordinance on Commons
Mark Hanus asked if this item ought to pass through the Planning Commission. The consensus was
that the draft be given to the Planning Commission as an FYI where the Commission could make
comments to the Dock and Commons Advisory Commission.
Recognition Dinner for Curt Pearson
Ed Shukle indicated that he would like the City of Mound to hold a recognition dinner for Curt
Pearson, long time City Attorney. He indicated that Curt has been the City Attorney for 30+ years
and he is now in semi-retirement as John Dean has taken over the City Attorney function. The
Council was in agreement and the City Manager was directed to organize the event later this
summer.
Sorbo Sword
Ed Shukle asked the Council where they would like this sword displayed. Consensus was to have
it placed in a secure case and mounted behind the reception desk. The City Manager will pursue
this.
Other Business
There being no other business it was noted that there will not be a committee of the whole meeting
in July. The next committee of the whole meeting is scheduled for Tuesday, August 18, 1998, 7:30
p.m.
Upon motion by Weycker, seconded by Hanus, the meeting was adjourned at 9:30 p.m.
City Manager