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<br /> 86 <br />City of Elk River <br />Notes to Basic Financial Statements <br /> <br /> <br />NOTE 12 – PENSION PLANS (CONTINUED) <br /> <br />Public Employees' Retirement Association (Continued) <br /> <br />D. Pension Costs (Continued) <br /> <br />Police and Fire Fund Pension Costs (Continued) <br /> <br />At December 31, 2024, the City reported a liability of $4,187,814 for its proportionate share of the <br />Police and Fire Fund's net pension liability. The net pension liability was measured as of June 30, <br />2024, and the total pension liability used to calculate the net pension liability was determined by an <br />actuarial valuation as of that date. The City 's proportionate share of the net pension liability was <br />based on the City's contributions received by PERA during the measurement period for employer <br />payroll paid dates from July 1, 202 3, through June 30, 2024, relative to the total employer <br />contributions received from all of PERA's participating employers. The City's proportionate share was <br />0.3183% at the end of the measurement period and 0.3180% for the beginning of the period. <br /> <br />The State of Minnesota contributed $37.4 million to the Police and Fire Fund in the plan fiscal year <br />ended June 30, 2024. The contribution consisted of $9 million in direct state aid that meets the <br />definition of a special funding situation, additional one -time direct state aid contribution of $19.4 <br />million, and $9 million in supplemental state aid that does not meet the definition of a special <br />funding situation. Additionally, $9 million supplemental state aid was paid on October 1, 2024. <br />Thereafter, by October 1 of each year, the State will pay $9 million to the Police and Fire Fund until <br />full funding is reached or July 1, 2048, whichever is earlier. The $9 million in supplemental state aid <br />will continue until the fund is 90% funded, or until the State Patrol Plan (administered by the <br />Minnesota State Retirement System) is 90% funded, whichever occurs later. The State of Minnesota 's <br />proportionate share of the net pension liability associated with the City totaled $159,638 . <br /> <br />City's proportionate share of the net pension liability 4,187,814$ <br />State of Minnesota's proportionate share of the net pension <br /> liability associated with the City 159,638 <br />Total 4,347,452$ <br /> <br />For the year ended December 31, 202 4, the City recognized pension expense of $827,635 for its <br />proportionate share of the Police and Fire Plan's pension expense. Included in this amount, the City <br />recognized $28,648 as pension expense (and grant revenue) for its proportionate share of the State <br />of Minnesota's contribution of $9 million to the Police and Fire Fund. <br /> <br />The State of Minnesota is not included as a non -employer contributing entity in the Police and Fire <br />Pension Plan pension allocation schedules for the $28.4 million in supplemental state aid because <br />this contribution was not considered to meet the definition of a special funding situation. The City <br />recognized $15,502 for the year ended December 31, 2024, as revenue and an offsetting reduction of <br />the net pension liability for its proportionate share of the State of Minnesota's on -behalf <br />contributions to the Police and Fire Fund. <br />Page 276 of 637