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89-1277 WHITE — CI�V CLERR COURCll PINK — FINANCE CAN'ARV — D�PARTMENT G I TY O A I NT PAUL File NO. �_ /� �� BLUE — MAVOR • .:"`�s�,,` �� Counci esolution '�1 ,; Presented By Referred T Committee: Date Out of Com tee By Date WHEREAS , the Minnesot L�gislature pursuant to Chapter 319 , Article 11 , Section , has amended Laws 1955 , Chapter 151 , Section 13, so as to p rmit the St. Paul Police Relief Association' s Bylaws to p y to surviving spouses a pension of not less than 22'-z units n r more than 272 units per month; and WHEREAS , the St. Paul P lice Relief Association' s Bylaws may be amended by the Assoc ' a ion provided that any such amend- ments are subject� to being ra ified by the Council of the City of Saint Paul pursuant t innesota Statutes Section 69. 77 (subd. 2i ) ; and TnTHEREAS , Minnesota St t tes , Section 69. 77 , subdivision 2i further provides that p i r to the officers of the Relief Association seeking City Co n il ratification, that the Associ- ation obtain an updated ct rial valuation, including the proposed amendment or an es im te of the expected actuary impact of the proposed amendment p e red by the actuary of the Relief Association and shall submit t at acturial valuation or estimate to the City Clerk to be pres nt d to the City Council ; and WHEREAS , the City Cou ci has been requested to indicate what benefits it would a pr ve for surviving spouses ; now, therefore , be� it RESOLVED, that the C ' ty Council does hereby state and inaicate to the St. Paul Po ice Relief Association that the Council would consider ap o ing and ratifying amendments to the Associatiorn\ryBylaws wh' ch would upgrade surviving spouse benefits to ��units per m nt and the Association shall subrni�� to the City Council its ro osed Bylaw' s amendments together with the ac�u�^ial valuatio s r estimates as required hy Minne- sota Statutes , Section 69. 77 S bd. 2i . COUNCIL MEMBERS Requested by Department of: Yeas Nays Dimond ��g-�" In Favo Goswitz Rettman B Scheibel� A gai n s t Y �°� AU6 - 81989 Adopted by Council: Date JUL ? 01989 Form Appro e by City tor y Certified Yas Cou c.il re BY ; i sy A roved b lVlavor. Date Appr ve by Mayor for Submission to Council PP Y ,�,/ Readoqted over the veto of the Ma or n gy August 8, 1989 P�� AU G 1 `� 98 ' , . � � . �. • �,��'�j.�z.� bE?qRTMENT/OFFICE/OOUNqL ' DATE INITIATE city coun��i ,/18�s GREEN SHEET No. 3�� CONTACT PERSON 8 PHONE DEPARTMENT DIRECTOR. �GTY COUNqL Councilmember Long � . N�� c�rr nrroRNer �cirr o�RK MU3T BE ON COUNqI ACiENDA BY(DATE7 �RI�K,a BUDCiET DIRECTOR Q FlN.8 Mf3T.SERVICES DIR. MAYOR(OR ASSISTANT) TOTAL�Y OF SIGNATURE PAGES (CLIP ALL L CA ONS FOR SIGNATUR� . ACTION REQUESTED: Approve resolution stating that City Counci w uld favorably consider approving a St. Paul Police Relief Association Bylaw change sett ng the surviving spouse benefit at 22.5 units per month and indicating City Council inten ;t support annual increases in the benefit level to 27.5 units per month. � RECOMMENDA710NS:Approve(N a Relect(R) COUNCIL MI EE/RESEARCH REPORT OPTIONAL f '.. ANALYST PHONE NO. _PLANNINCi COMMISSION -qVIL SERVICE COMMISSION - _qB COMMITTEE - ;` , COMMENTS: _STAFF - , ;'`s' . ,., > � , .• , -, _DISTAICT OOURT - y;:. � ,:�. `. , . .. ; SUPPORTS WHlpi COUNqL OBJECTIVET t+• ", �`"°i -- . ' v, . �4 . . . . . . .. , ,xi'� .. .. . . . - . � . . . . .. ir�mnnnu�PROe�M.issue,o�oaTUNm Mmo.wna�,wn.n.wms�.,w� ..�, '�:��` .. ,, ,; �° ' �'.z Survivors of the Saint_Paul Fire Relief As� c tion receive a monthly benefit.�of approximately 27.5X of-the maximum pay of a firefighter ` i survivors of the'Saint Paul Police:Relief Association receive a monthly benefit of 2 � the maximum pay�of a patrol �officer. � Patrol ' officers and firefighters' wages are the s` e and so' is their'contribution to,'their local . pension plan. ADVMtTAGES If APPROVED: < � . . DISADVANTA(iE31F APPROVED: �;°„ „ , ';. •. ' - The granting of this benefit has not been ,_ un ed. . The past,liability .for .full. parity (27.5�) exceeds $12,000,000. In compliance with''p es nt Iaw; •this liability must be;-amortized with annual payments in excess of $900.,000 'per: ea based on an"actuarial valuation completed in . November, 1988. If a change is�:made:.to 22 5,.+ nits per:month, ,annual..amortization „payment would be in `excess of $300,000.�' In additi n, there `�is the ongoing cost to provide'this ', benefit. . Based on present payroll, the cu re t,normal cost fory;;.jfull parity„.,{27�.5�);,,would . be approximately $240,000 per 'year 'and if he .benefitX�level-.is�at��22.5=units,�the�no"rmal ��SY:. cost would be about $80,000 per year. ' � DISADVMfTACaES IF NOT APPROVED: . � t«i S�5�` '�/1� "':�` e,��, � � � � a .�1 1 a r�t"�4"4'#zrQ +�'�� ay�+a� t�h�l�#." Y7 �{�j'�,-n£�flt'_ � � +�dy�� ,tdaC#�� e� y � � , .�„tt- xl`� ��n� e ''.� 4 ��'�1 y k; YFl p7�M��i�§`,#r yy�' i s '•'hv� q�"r}c`�"�� ' d t (��, . . " C',� �.'�r:�y'Rl�s1'x^Y 'i w"�;ra d$�'.�D�k; 4"ia�a �.a,��..�� r f+ �� < f � - � t �r i r��•f a '�� f S ,: i �.�ir i � y g y�� . y� ��- � ��3Q�y ' 1 1 P'„��d'Y�"�u�� .} ��n �div 1��wX�� v � .� �7�� h� �rJl`n x #, r,. t��{1��Y �c��A' ♦ �' �y y . ... '� �.'��. !.}5.'��' :: '�'. J � � �:, ,� } .e,Cl�`+.�a y��`{��`��f�d{��m1�l�y.l�-i S�.a r?�+Le;,*�� ''- „5� -� �' r' 1� + ,�±; r�' !�„�'A'�#�.3� ��f� J�:'�`a;�?��4i"�4`i�x"'��'i�:� >��'{ ��7�,1�� ' �, s , i � - rn t, j�, tt�'t at� :;#x�y. � ;^!. � .' a ; ,�["?aYtl'r.T'f.��-'.*�'3��sw �r,�T��„ �as.,-,�+,��a+ .tv;r a � ir 1� "• . � . . . . ..� ,,' ....� .`�'�.�� . ,..':". . i',�. i :� :. .�.. � � TOTAL AMOUNT OF TRANSACTION i � �:,�COST/REVENUE BUOOETED(CIRCLE ONq.w YES g:��y NC��'��t�'.'•' ;'; : ' � FUNDIN�i SOURCE 'ACTIVITY NUMBER ''' �;a` � FINANGALINFOFiMAT10N:(D(PWN) t.'+ ` '�; �;�;` t`i ` e n. ` a �1�;�4M . �;i i, �': c�r �x � .. , . � .. � .. , f:�:' ;.�SC. .8.� i�.� r� Y �':�S Y.l -, r .hr .. . . ..y .,- � � . _- . . . � �� . . �_.. .__._,_____�_�_________ � . iscussion of surviving spouse benef ts for Police. Approved Resolution 89-1182 and related resolution 8. Resolution 89-860 - amending the Sal ry Plan and Laid over two weeks Rates of Compensation Resolution reg rd ng Unclas- sified Positions. (Referred from Co nc 1 May 18) 9. Resolution establishing the rate of ay for Public No recommendation ` Health Division Manager in Grade 32, Se tion ID4 of the Professional Supervisory Stan ar Ranges in the Salary Plan and Rates of Comp �ns tion Resolution. (Referred from Council pr 1 7, 1988, laid over June 19, 1989) 10. Resolution 89-1003 - amending Sectio 1 of the Approved as amended Civil Service Rules pertaining to pr 'vi ional employment. (Referred from Council un 6, laid over June 19) . ._. . _ ... .. - -- -. ._ _.. .... . ... �... . . ...,�.. � - . . ...... . . . .. . .. . . ._ ._ ._.._..,._,..:- �.�:::�:��r� . ' _-;s-::, .. ;;.__ - GITY OF SAINT PAUL .`� 2 "�"�}; f ��»[�sin - " :;� ^ "° t!` OFFICE OF TAE CITY COIINCIL ' ` ' _; Committee Report - �' Finance. Manaaement. & Personnel Committee _ _ JULY 10, 1989 1. Approval of minutes of June 5, 1989, meeting. � Approved 2. General discussion of the Mayor' s mid-year budget adjustments. (Laid over June 19) 2a. Resolution 89-351 - amending the 1989 budget by Laid over two weeks transferring $32,062 from Contingent Reserve to for amendment Police Administration for full-time position to oversee license renewal and application process. (Referred from Council March 2, laid over June 19) 2b. Resolution 89-354 - amending the 1989 budget by Withdrawn adding $51,661 to the Financing and Spending Plans for Police Vice Unit to conduct investigations of liquor and Class III license applicants. (Referred from Council March 2, laid over June 19) 2c. Resolution 89-830 - amending the 1989 budget by Denied transferring $38,574 to Community Services Parks and Recreation Administration and Finance and - Management Services for renovation of third floor of City Hall Annex. (Referred from Council May 9, laid over June 19) 2d. Resolution 89-820 - amending the 1989 budget by Denied adding $99,755 to the Financing and Spending Plans for City Attorney' s office automation project. (Referred from Council May 11, laid over June 19) 2e. Resolution 89-1004 - amending the 1989 budget by Laid over two weeks adding $112,000 to the Financing & Spending Plans for amendment for Community Services Utility Needs. (Referred from Council June 6, laid over June 19) CITY HALL SEVENTH FLOOR SAINT PAUL, MiNNESOTA 55102 � B�b48 . ` ... , . , . - ��`�� ' � GITY OF �S I�TT PAUL � ' GiTT OD � � ; 406 '; OFFICE � F HE MAYOR � uff�t'ililt � • .m! 111 �� +m �e ,... 347�CIT HALL SAINT PAU , M NNESOTA 55102 GEORGELATII4ER (612) 8-4323 MAYOR �"'��D July 24, 1989 J�� p�, � Council President James Scheib � �rr� 9 and Honorable Members of t e City Council �R/( 7th Floor City Hall Saint Paul, MN 55102 Dear President Scheibel and Me rs of the City Council: I veto Council File No. 89-127 hich calls for upgrading surviving spouse benefits to 2 . units per month for members of the Saint Paul Police Relief A s ciation. I agree that the disparity between survivor ben f'ts for the St. Paul Police Relief Assiciation and the St. P 1 Fire Department Relief Association is unfair and that t e gap must be closed. However, discussions with staff on this i sue make it clear to me that the increase in benefits should be p ased in over a period of time, rather than done in one step a is resolution suggests. My reasons are as follows: -- When this issue origin l came before us earlier this year, Council File No. 89 298 and accompanying ; documentation indicate me that a phase in was anticipated (attached) -- To immediately impleme t n increase in survivor's benefits to 27.5 units pe month would unnecessarily burden the City's taxp ye s. -- This resolution is inc ns 'stent with various other Council actions indica in the desire to make reducing the property tax levy p iority. Let me address these issues. There are several ways that th C ty of Saint Paul could bring about parity in survivor benef''ts Since employee contributions will be held constant, any inc ea e in expense must be borne by the City's taxpayers. However,' C ty contributions to the St. Paul Police Relief Association a e been decreasing. Assuming that current assets continue t p ovide a reasonable return and inflation remains under control, he city contribution will continue to decrease. This pro i es an opportunity to phase in parity over a period of time wh' 1 minimizing the negative impact on the taxpayers. The City wou d annually grant a permanent 3 46 . � ,.y �� . - ��`�-�°�� . . . City Council Page 2 July 24, 1989 increase in the percentage pa' o surviving spouses of Saint Paul Police Relief Associatio m mbers until the surviving spouse benefit becomes 27.5% of the ax mum pay of a patrolman. This is the method of achievin arit t at I su ort and that was clearl antici ated b Counci F le No. 89-298. Council Resolution No. 89-127 c lls for immediate implementation of full parity. This would a ou t to a total annual increase of $1, 129,089 consisting of an a or ization payment of $903,489 and a normal cost of $235, 600 (1. 2% of estimated $15,500, 000 payroll) . Without an increas e ployee contributions, the total amount becomes the employer's re ponsibility. That would necessitate an increase in th p operty tax levy of about $750, 000 in 1991. I oppose t is option because the original resolution that I supported 1 id the groundwork for a phase in of benefits that would avoid pla in a needless burden on the City's taxpayers. In addition, this e hod of achieving parity is at odds with the goal of reducin t e property tax burden on Saint Paul residents. � Very truly yours, . • eor La r Mayo cc: Gary Norstrem City Clerk enclosures � .y �� . . ��-�r- �� 7 � � � � . ST. PAIIL POLICE R LIEF ASSOCIATION SURVIVOR B FIT INCREASE (Parity with Fire Relief s ociation Survivor Benefit) Background . -"r For'inany years the survivor be e it level of the St. Paul Fire Department Relief Association a exceeded the survivor benefit for the St. Paul Police Relief A sociation by approximately 37%. During these earlier years, th ollar amount of the difference was not real significant. Ove he years, with the 37 percent difference a constant, inflati n and now comparable worth have caused the dollar amounts to s r ad significantly. The difference between the su i or benefit now is $238.00 per ' month. A police pension survi o receives $635.00 per month and a fire pension survivor receiv s $873 .00 per month. After the Police received a suls antial pay increase as a result of comparable worth, the Fire e e able to negotiate parity. The St. Paul Police Relief Associa i n strongly feels that if there is parity in salary, parity in t e pension contribution, and - parity in other pension benefi s nder the local relief associations, there also shoul parity in the survivor benefit. Status � The St. Paul Police Relief Ass c' tion obtained an actuarial evaluation showing that to imp e nt full parity, the total annual increase would be $1, 13 ,0 9 consisting of an amortization payment of $903,489 and a norm 1 ost of $235,600 (1.52% of estimated $15,500,000 payroll) ithout an increase in employee contributions, the total amoun b comes the employers responsibility. Assuming that cu rent assets provide a reasonable return and inflatio mains under control, the City contribution (without parity) 'il be decreasing. It is reasonable to believe under th se circumstances that parity could be phased in over a period of im without increasing the City contribution to the Police Rel ef Association. The 1989 City contributions to the Relief As oc'ations are as follows: Police Relief Association $3,902,741; jFi e Department Relief Association $5,331,429. • The Saint Paul Position The City of Saint Paul support 1 gislation which would allow the City Council an option to annu 11 grant a permanent increase in the percentage paid to survivi g pouses of Saint Paul Police Relief Association members unt'1 he surviving spouse benefit becomes 27.5% of the maximum p y f a patrolman. survivor. inc/police � � . � � � ��-�-i�77 , , �_ WMI'7E — UTV Q�,ERK - PINK — FINAN-CE CANAFV — DEPAFTMENT OURCI �� BLUE — M�.YOF7 ; � GITY OF �s I �'T �AUL File N0. �'�� '="�j�� ,� ,c�. � �i�s�/rc�� cr � � ' Counci esolu ion U ��, s , _ �/f. ""r`�.,;"�.j w-=-- +� '� ' /( ' / ' '.� � ".� Pcesented By --� -- _ z r- _%. __ ; �F. r�%. � � . _�— , _ , Referred To �� Committee: Date �`� N r, ,�,n J Out of Committee By �! Date ir�.�i.v. +,�� >>��!:��'.:::i , 1 �UFi,L:ittt i:i . ��SCCtii' I'i:.= _..lo�._ �^C�.C�F_'t'�'i t. lt',_ (`�i1 _ l.:.�t: �tlY�'2�`��i' �::�i)�'E 1�._ �3i:-:� j-ci� 2.�••'' :2 : 3.=7L1 .Sttl.'ti l.�"t�T' ��f:[i�.t t .! �:� : ;t.l i -:�fF.:�.�'::��. . � iI< .r' '� tn.si' . i,❑ �:i:�1"i � 1 a ;t-!�':i�� }�'i3'LCL. l:t ��"'t't'i� l`�r! .�C<ft4.�".3 [`t:�. !•>:l:_ , f"tiI'i �. .4[�: �1tiYt_ � fi_. 1•��[i �.".c:Llcrit_�'� ��i>''1"d .;��'l:.f.;.4 �.� ;'1Ct�:`," .i:1 �t.tt'l'3.ic. � i•�tic.}:L�: , -�it� Sli�;��j�r:ti � lt [.. Z1iiLJc' Lj�3i��'Li �.Zi_ Z E1S:� }'.i:it.� �=:1] L-'.� J'�)-.i:_:.:� 21i ,j� •>i' �:.!l:i,-. r. l Ciir:;!t�. il:�'1'.:?ir_;i�L:; 41-� =:.E : � �.��['i?T'i i�ti�l<?ii t.si "f�i.' T''� i }.:_ _ �+.•. �i 1 c' �� c1:v.:v•_ 1 :j_!U l; i r;j j:�. � `('(iT�`j:.E.:i:..E;;� S�i'. IT }:Li�ti�:'+'�.�•` t ;1.:. �_L's- �:i t.}" i_'C .� .`..i 1'4i. f':a:t j -�al'!`i�1•1. � _ _ ,.� ?:t! }_��ti Ct� >,1. .'F� tl . �i �t' ��iJ!i11�: 1 � t.Il� `=(.1 1>>i� t�i .iti,:l..i.� > >' �. :l::� ._. t��_i'i:;cc!?t'C'i�. tt"t� T'c_ 6:=t t- �,• ,.�• - _ (;,, _ ` l.ii tc�� L' Ctic3�::;> r:1.t.; �. :�.iCt-.L\' lt:� �('�1:t.:. _. L:f �•_i!ll�. �'Li? S. '�t� ii:�_' �%:� 1.<�� =•'-_r��_ T �3�: ��iii tL�:IIA�'�.C:i !Ii"t�!. t � f�'i`�� .:t.:['� A�. .It:•� a[:��..�+�t.l .. �i�_:;r:i.1 �. r•;sL:G�E�ic'; �_:; , .,`�y !� !Y'iE' s:i:i_C i..st+.;:ta s�irt• �f� z2 i^�.': 1 t :F: :� �:i - I'; �:�� T i�►:f:,�1�;:Ct f<i;� =�1.:. �::. , ; t:��F ; i,: +._i k.,� _,f � _{t::t_ l'•3s.:� _>t�t:�r,...rt.� .1[t '.Lf]CC'_'.:L.-'f`' 11'i �.�.31. 't' :�iiU't't �.:.�.� 1�: t `31'j j�titif:-21�.:� fU t�it' .Et_� t'i�� :;::�::s��: 3'ac;l � COUNCIL MEMBERS Yeas Nays Requested by Department of: Dimond � �ng In Favor Goswitz Rettman ;.; B scne�ne� A gai n s t Y Sonnen Rilson ;_ -. Form Approved by City Attorney Adopted by Council: Date ' ' .-- ^ertified Passed b Council Secre.tar BY �� ; .�, YY. �•��_,_�� i � y ,�' . By �,.h,\/�"'�i `i `�ti ��r-._. � �' Approved by 1�lavor: Date �y j � �;:';�� Approved by Mayor for Submission to Council � WMl7j'I - C�TV CLERK + � PINK - F`�NANCE` ' � COUflCI� CAfJARV - DEPARTMENT �� I TY OF �� I NT PA U L � - /� �J�J 'BLI�E - MAYOR F�IE NO. � � 5��P� -� ja,�� Counci esolution Presented By �-� F'{ '�r"" Referred To�• Committee: Date Out of Committe�,,By Date ` �. WHEREAS, tti`� Minnesota Legisl tu e, pursuant to Chapter 319, Article 11, Section 2, has amen�ied Laws 1955, C ap er 151, Section 13, so as to permit the St. Paul Police Reli��f Association' B laws to pay to surviving spouses a pension of not less ttt�n 22-1/2 uni s or more than 27-1/2 units per month; and WHEREAS, the St. Pau'�. Police el ef Association's Bylaws may be amended by the Association provided '�hat an s ch amendments are subject to being ratified by the Council of th�. City 'of Saint Paul pursuant to Minnesota Statutes Section 69.77 (subd. 2i); nd WHEREAS, Minnesota Statutes;. ec ion 69.77, subdivision 2i, further provides that prior to the officers� of the Relief Association seeking City Council ratification, that the Asso i;a ion obtain an updated actuarial valuation, including the proposed a e ent or an estimate of the expected actuary impact of the proposed amen e prepared by the actuary of the Relief Association and shall submit that a u '�al valuation or estimate to the City Clerk to be presented to the City C nc'l;�and \ WHEREAS, the City Council has ee req ested to indicate what benefits it would approve for surviving spous s; Now, herefore, Be It RESOLVED, that the City Counci d es here state and indicate to the St. Paul Police Relief Associatio� t at the Coun '1 would consider approving and ratifying amendments to the Asso ia ion Bylaws which would upgrade surviving spouse benefits to 22-1/2 ni s per month and the Association shall submit to the City Council its propo ed Bylaws' amen ments together with the actuarial valuations or estimates as re uired by Minn sota Statutes, Section 69.77, Subd. 2i ; and, Be It \ FINALLY RESOLVED, that the Cit C uncil intends t\ consider and ratify amendments to the Association Bylaws in 1990 and 1991 to�{pgrade surviving spouse benefits until they reach the 27 1/2 units per montl�. � , COUNCIL MEMBERS Yeas Nays Requested by Department�caf: Dimond Lo�g In Favor Goswitz Rettman Scheibel Against BY - Sonnen Wilson Form A pe ved by Ci Attor y Adopted by Council: Date Y/�i '`� /f Certified Yassed by Council Secretary BY sy� Approved by Mavor. Date Ap r ed by Mayor for Submission to Council gy BY " _ - 9 " i � AUGUST� 1989 - Yeas Nays - - - �SWITZ - ' - ; ) � � �9— �o�� l.i�`" -- _ :y d � � �� - �o�� _ - - _ - �ILSON \.�DIMOND .'j - - - PRESIDENT� SCHEIB � - �' � . .. :� . _ . . :�� ``} s _ _ =�w - - - 1� - - � ,