10.1. SR 06-05-2017 - Laserfiche WebLink

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CITY OF ELK RIVER NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDING DECEMBER 31, 2016 NOTE 11 DEFINED BENEFIT PENSION PLANS— FIRE RELIEF ASSOCIATION (CONTINUED) C. Contributions Minnesota statutes, chapters 424 and 424A authorize pension benefits for volunteer fire relief associations. The plan is funded by fire state aid, investment earnings and, if necessary, employer contributions as specified in Minnesota statutes and voluntary City contributions (if applicable).The State of Minnesota contributed $179,192 in fire state aid to the plan on behalf of the City Fire Department for the year ended December 31, 2016, which was recorded as a revenue. Required employer contributions are calculated annually based on statutory provisions. The City's statutorily -required contribution to the plan for the year ended December 31, 2016 was $0 but the City voluntarily contributed $30,000. D. Pension Costs At December 31, 2016, the City reported a net pension asset of $480,918 for the plan. The net pension liability (asset) was measured as of December 31, 2015. The total pension liability used to calculate the net pension liability (asset) in accordance with GASB 68 was determined by Van Iwaarden Associates applying an actuarial formula to specific census data certified by the Department as of December 31, 2015. For the year ended December 31, 2016, the City recognized pension expense of $176,635. At December 31, 2016, the City reported deferred outflows of resources, including its contributions subsequent to the measurement date, related to pension from the following sources: Description Changes in Actuarial Assumptions Net Difference Between Projected and Actual Earnings on Pension Plan Investments City Contributions Subsequent to the Measurement Date Total Deferred Outflows Deferred Inflows of Resources of Resources $ 258,790 $ - 286,845 - 204,826 - $ 750,461 $ - Deferred outflows of resources totaling $204,826 related to pensions resulting from the City's contributions to the plan subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2016. Other amounts reported as deferred outflows and inflows of resources related to the plan will be recognized in pension expense as follows: Year Endinq December 31, 2017 2018 2019 2020 2021 Thereafter (65) Pension Expense Amount $ 113,343 113,343 113,343 102,480 38,916 64,210