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THE CITY OF SOUTH BEND
<br />2006 BUDGET - SUMMARY OF MAJOR CHANGES FROM 2006
<br />POLICE PENSION FUND (Fund #702)
<br />Total Expenditures Increase /(Decrease)
<br />Expenditures Increasel(Decrease) as a Percent
<br />Revenue Over I(Under) Expenditures
<br />(968,929} 608,784 1,6( 20,816}
<br />NOTES:
<br />a - These distributions are based on an estimate of the pension payments the City will make in the current year.
<br />At least 501/4 of the pension payments the City makes will be covered by the pension relief fund and the rest Is to be covered
<br />by the City. This is a result of state legislallon passed during 2001, SEA 260 - PENSION RELIEF FUND DISTRIBUTIONS.
<br />b - Represents a 3.9% increase over prior years tax levy.
<br />c - Represents the Department of Local Government & Finance estimate_
<br />d - This increase reflects the Patrolmen First Class salary at $41,000 for 2006 which is a 2.5% increase over the $40,000 salary for 2005.
<br />All pension payments are calculated using the current year's Patrolmen First Class salary as a base.
<br />e - This amount represents an estimated amount of pension payments for police officers that are eligible and actually do retire during 2006.
<br />The total amount of pension payments that would be due if all eligible police officers actually did retire as of 111106 would be an additional
<br />$992,400 for the full year. The impact of this 'Worst case scenario" is detailed below.
<br />f- Reflects amount due to police officers enrolled in the Deferred Retrement Option Plan that plan an retiring in 2005.
<br />i -An interfund transfer from the General Fund is necessary to cover additional costs in this fund due to the fact that the current level
<br />of funding is inadequate to cover projected and future pension payments. (see footnotes below)
<br />Active Police Officers eligible to retire under the 1925 Plan
<br />2004
<br />2008
<br />2006
<br />Anticipated
<br />1,198,704
<br />2006
<br />(15D,000)
<br />Shortfall in this fund if'Worse case scenario" occurred
<br />Actual
<br />Actual
<br />Budget
<br />Changes
<br />57,428
<br />Budget
<br />909,468
<br />REVENUE:
<br />(1,606 672)
<br />Cash shortfall/surplus after known DROP expenses
<br />(697,205)
<br />Additional pension payments assuming "worse case scenario"
<br />(992.400)
<br />Cash shortfallisurplus in this fund if'Worse case scenario" occurred
<br />(1,689,605)
<br />State Pension Relief Funds
<br />2,682 906
<br />2,795,531 a
<br />2,740,995
<br />100,486 a
<br />2,841,431
<br />General Property Taxes
<br />748,751
<br />1,296,055
<br />1,345,096
<br />52,233b
<br />1,398,129
<br />Auto Excise Taxes
<br />80,168
<br />80,438
<br />77,872
<br />0 c
<br />77,872
<br />Commercial Vehicle Excise Tax
<br />17,866
<br />19,044
<br />18,737
<br />937 c
<br />19,674
<br />Financial Institutions Tax
<br />3,744
<br />3,732
<br />3,005
<br />0
<br />3,005
<br />Police Officers' Contribution
<br />63,009
<br />62,936
<br />63,645
<br />(24,445)
<br />39,200
<br />Interest on Indiana's Public Deposit Insurance Fund
<br />156,684
<br />89,283
<br />225,000
<br />(146,000)
<br />65,000
<br />Interfund Transfer - General Fund
<br />0
<br />0
<br />0
<br />1,306,000 g
<br />1,306,006
<br />Miscellaneous Revenue
<br />20,5%
<br />34.165
<br />0
<br />0
<br />0
<br />Total Revenue
<br />3,773,724
<br />4,381,124
<br />4.475, 156
<br />1289,161
<br />5,764,311
<br />Total Revenue Increasel(Decrease)
<br />1289,161
<br />Revenue Inoreasel(Decrease) as a Percent
<br />28.8%
<br />2004
<br />2008
<br />2006
<br />Salary
<br />Other
<br />2006
<br />% of
<br />Actual
<br />Actual
<br />Budget
<br />Ordinance
<br />Changes
<br />Budget
<br />Change
<br />EXPENDITURES:
<br />Personnel Costs:
<br />Salaries
<br />7,015
<br />7,296
<br />7,296
<br />146
<br />0
<br />7,442
<br />Benefits - Medical Check -ups
<br />1.610
<br />860
<br />2,670
<br />35
<br />0
<br />2,905
<br />Total Personnel Costs
<br />8.625
<br />8,164
<br />10.166
<br />181
<br />0
<br />10,347
<br />1.8%
<br />Supplies
<br />620
<br />600
<br />1,100
<br />0
<br />0
<br />1,160
<br />0.0%
<br />Services:
<br />Legal Costs
<br />375
<br />0
<br />1,000
<br />0
<br />0
<br />1,000
<br />Other Misc Services
<br />3,632
<br />19,162
<br />1,710
<br />0
<br />(135)
<br />1,575
<br />Total Services
<br />4,007
<br />19,162
<br />2,710
<br />0
<br />(135)
<br />2,575
<br />-5.0%
<br />Benefit Payments:
<br />Retired /Disabled Police Officers Receiving Payments
<br />3,370,620
<br />3,614,953
<br />3,732,073
<br />B8,741 d
<br />0
<br />3,824814
<br />Widows /Dependents Receiving Payments
<br />1,237,059
<br />1.246,925
<br />1,335,893
<br />(59,731) d
<br />6
<br />1,276,162
<br />Estimate for Current Year Retirees
<br />45,357
<br />86,444
<br />150,000
<br />0
<br />0
<br />150,000 e
<br />Insurance Benefits
<br />49,165
<br />44,761
<br />77,124
<br />(19,639)
<br />0
<br />57,485
<br />Deferred Retirement Option Plan (DROP)
<br />0
<br />114,899
<br />114,900
<br />191,500 f
<br />0
<br />306,400
<br />Death Benefits (8 x $9,000 projection amt)
<br />27.000
<br />54,000
<br />72,000
<br />0
<br />72,600
<br />Total Benefit Payments
<br />4,729,401
<br />5,161,982
<br />5,481990
<br />200,871
<br />0
<br />5,682,861
<br />37%
<br />Total Expenditures
<br />4,742,653
<br />5,189,908
<br />5,495,966
<br />201,052
<br />(135)
<br />5,696883
<br />Total Expenditures Increase /(Decrease)
<br />Expenditures Increasel(Decrease) as a Percent
<br />Revenue Over I(Under) Expenditures
<br />(968,929} 608,784 1,6( 20,816}
<br />NOTES:
<br />a - These distributions are based on an estimate of the pension payments the City will make in the current year.
<br />At least 501/4 of the pension payments the City makes will be covered by the pension relief fund and the rest Is to be covered
<br />by the City. This is a result of state legislallon passed during 2001, SEA 260 - PENSION RELIEF FUND DISTRIBUTIONS.
<br />b - Represents a 3.9% increase over prior years tax levy.
<br />c - Represents the Department of Local Government & Finance estimate_
<br />d - This increase reflects the Patrolmen First Class salary at $41,000 for 2006 which is a 2.5% increase over the $40,000 salary for 2005.
<br />All pension payments are calculated using the current year's Patrolmen First Class salary as a base.
<br />e - This amount represents an estimated amount of pension payments for police officers that are eligible and actually do retire during 2006.
<br />The total amount of pension payments that would be due if all eligible police officers actually did retire as of 111106 would be an additional
<br />$992,400 for the full year. The impact of this 'Worst case scenario" is detailed below.
<br />f- Reflects amount due to police officers enrolled in the Deferred Retrement Option Plan that plan an retiring in 2005.
<br />i -An interfund transfer from the General Fund is necessary to cover additional costs in this fund due to the fact that the current level
<br />of funding is inadequate to cover projected and future pension payments. (see footnotes below)
<br />Active Police Officers eligible to retire under the 1925 Plan
<br />351,060
<br />Active Police Officers eligible to retire under the 1977 Plan
<br />833_624
<br />Total Active Police Officers eligible to retire as of 111106
<br />1,198,704
<br />Amount included in 2006 Budget Expenditures
<br />(15D,000)
<br />Shortfall in this fund if'Worse case scenario" occurred
<br />LQ029A
<br />Projected Police Pension Fund Cash Balance as of 111106
<br />842,040
<br />2005 Budget Fund (Deficit)/Surplus (see above)
<br />57,428
<br />Projected Police Pension Fund Cash Balance as of 12131106
<br />909,468
<br />Deferred Retirement Option Plan 2607
<br />(1,606 672)
<br />Cash shortfall/surplus after known DROP expenses
<br />(697,205)
<br />Additional pension payments assuming "worse case scenario"
<br />(992.400)
<br />Cash shortfallisurplus in this fund if'Worse case scenario" occurred
<br />(1,689,605)
<br />200,917
<br />3.7%
<br />67,428
<br />
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