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Elk River Fire Department Relief Association <br />May 12, 2009 <br />Page 6 <br />Funding Percentage <br />The funding percentage is calculated by taking the Special fund net assets and dividing it by the accrued pension liability. <br />This graph will show your funding percentage fora 5-year period and compare your percentage to other relief associations. <br />170.0% <br />150.0% <br />130.0% <br />110.0% <br />90.0% <br />70.0% <br />50.0% <br />114.8% 114.7% <br />108.1% 105.9% <br />110.0% 109.8% <br />98.9% 104.1 <br />70.9% <br />2004 2005 2006 2007 2008 <br />-*-Fire relief percent f Peer group average <br />Market Concern <br />There was a significant downturn in the investment income during the 4th quarter of 2008 that resulted in considerable losses. <br />The State has also decreased state aid by approximately 14 percent in 2008 and with possible additional cuts in 2009. This <br />decrease was due to past overstated amounts of insurance premiums that dealt with fire insurance and fewer taxes collected on <br />insurance premiums. Fire state aid is dedicated funds and the decrease is not due to the large budget deficit the State is <br />currently facing. These decreases will have a significant impact on the required municipal contributions in future years until <br />the market changes. <br />952.835.9090 Fax 952.835.3261 <br />www.aemcpas.com <br />