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THE CITY OF SOUTH BEND
<br />2007 BUDGET - SUMMARY OF MAJOR CHANGES FROM 2006
<br />FIRE PENSION FUND (Fund #701)
<br /> 2005 2006 2006 Anticipated 2007
<br /> Actual Projection Budget Changes Budget
<br />REVENUE:
<br />State Pension Relief Funds 2,488,926 2,782,766 2,782,766 (24,766) a 2,758,000
<br />General Property Taxes 1,443,033 1,491,379 1,556,681 59,705 b 1,616,386
<br />Auto Excise Taxes 89,560 85,343 86,857 (1,514) c 85,343
<br />Commercial Vehicle Excise Tax 21,203 22,332 21,923 1,526 c 23,449
<br />Financial Institutions Tax 4,155 4,168 3,349 819 4,168
<br />Firefighters' Contribution 38,891 19,610 19,584 516 20,100
<br />Interest on Indiana's Public Deposit Insurance Fund 89,283 85,000 85,000 0 85,000
<br />Intertund Transfer-General Fund 0 1,100,000 1,100,000 (300,000) 800,000 h
<br />Miscellaneous Revenue 37,950 18,000 5,000 15,000 20,000
<br />Total Revenue 4,213,001 5,608,598 5,661,160 (248,714) 5,412,446
<br />Total Revenue Increase/(Decrease) (248,714)
<br />Revenue Increase/(Decrease) as a Percent -4.4%
<br /> 2005 2006 2006 Salary 2007 % of
<br /> Actual Projection Budget Ordinance Budget Change
<br />EXPENDITURES:
<br />Personnel Costs:
<br />Salaries 9,914 10,927 10,927 10,927
<br />Benefits -Medical Check-ups 0 0 2,500 0 2,500
<br />Total Personnel Costs 9,914 10,927 13,427 0 13,427 0.0%
<br />Supplies 26 200 200 0 200 0.0%
<br />Services:
<br />Legal Costs 0 2,000 2,000 0 2,000
<br />Other Misc Services 12,126 1,886 2,591 0 2,591
<br />Total Services 12,126 3,886 4,591 0 4,591 0.0%
<br />Benefit Payments:
<br />Retired/Disabled Firefighters Receiving Payments 3,029,453 3,047,395 3,138,298 97,126 d 3,235,424
<br />Widows/Dependents Receiving Payments 1,344,911 1,320,871 1,352,920 (16,291) e 1,336,629
<br />Estimate for Current Year Retirees 72,038 116,283 234,000 25,306 259,306 f
<br />Insurance Benefits 103,488 131,250 173,656 150,928 324,584
<br />Deferred Retirement Option Plan (DROP) 104,371 442,674 594,657 1,325,000 g 1,919,657
<br />Death Benefit Payments (8 x $9,000) 51,750 83,250 72,000 0 72,000
<br />Total Benefit Payments 4,706,011 5,141,723 5,565,531 1,582,069 7,147,600 28.4%
<br />Total Expenditures 4,728,077 5,156,736 5,583,749 1,582,069 7,165,818
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<br />Total Expenditures Increase/(Decrease) 1,582,069
<br />Expenditures Increase/(Decrease) as a Percent 28.3%
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<br />Revenue Over/(Under) Expenditures (515,076) 451,862 77,411 (1,753,372)
<br />NOTES:
<br />a -These distributions are based on an estimate of the pension payments the City will made in 2006 and will be reimbursed in 2007.
<br />At least 50 % 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 legislation passed during 2001, SEA 260 -PENSION RELIEF FUND DISTRIBUTIONS.
<br />b - Represents a 4 % increase over prior year's tax levy.
<br />c -Represents the Department of Local Government & Finance estimate.
<br />d -This increase reflects the Firefighters First Class salary at $40,800 for 2006, a 2 % increase over the $40,000 salary for 2005.
<br />All pension payments are calculated using the current year's Firefighters First Class salary as a base.
<br />e -Reflects the change in the anticipated pension payments after taking into account the reduction of the pension rolls due to the death of widows.
<br />f -This amount represents an estimated amount of pension payments for firefighters that are eligible and actually do retire during 2006.
<br />The total amount of pension payments that would be due if all eligible firefighters actually did retire as of 1/1/06 would be an additional
<br />$899,016 for the full year. The impact of this "worst case scenario" is detailed below.
<br />g -Reflects amount due to firefighters enrolled in the Deferred Retirement Option Plan that plan on retiring in 2006.
<br />h - An intertund 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 Firefighters eligible to retire under the 1937 Plan 184,008
<br />Active Firefighters eligible to retire under the 1977 Plan 796,252
<br />Total Active Firefighters eligible to retire as of 1/1/06 980,260
<br />Amount included in 2007 Budget Expenditures (259,306)
<br />Shortfall in this fund if "worse case scenario" occurred 720,954
<br />Fire Pension Fund Cash Balance as of 1/1/06 1,548,435
<br />2006 Projected Fund Surplus/(Deficit) (see above) 451,862
<br />Projected Fire Pension Fund Cash Balance as of 12/31/06 2,000,297
<br />Projected Fire Pension Fund Cash Balance as of 1/1/07 2,000,297
<br />2007 Budget Fund (Deficit)/Surplus (see above) (1,753,372)
<br />Projected Fire Pension Fund Cash Balance as of 12/31/07 246,925
<br />Deferred Retirement Option Plan 2008 (72,420)
<br />Cash shortfall/surplus after known DROP expenses 174,505
<br />Additional pension payments assuming "worse case scenario" (720,954)
<br />Cash shortfall/surplus in this fund if "worse case scenario" occurred (546,449)
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