East Central Reporter

City of Olney Fire Pension Board met Nov. 12.

City of Olney Fire Pension Board met Nov. 12board:

AGENDA #1 CALL TO ORDER The City of Olney Fire Pension Board met in the Fire Station at 9:07 a.m. on November 12, 2024, with Daron Harmon presiding.

AGENDA #2 ROLL CALL The following members were present: Interim Fire Chief Daron Harmon, Firefighter Logan Muston, and City Treasurer Guinn. Rusty Holmes and Leon Stallard were absent. City Clerk Sterchi was also present.

AGENDA #3 APPROVE MINUTES FROM FIRE PENSION BOARD MEETING ON SEPTEMBER 24, 2024 Mrs. Guinn moved to approve the Fire Pension Board minutes from September 24, 2024, seconded by Firefighter Muston. A majority affirmative voice vote was received.

AGENDA #4 TREASURER’S REPORT

4-A “Discussion: Income and Expense May 1, 2024 – October 31, 2024” The Board was provided with a copy of an income and expense statement from May 1, 2024, through October 31, 2024.

Mrs. Guinn reported that two of the three tax levy payments had been received. All other revenues were tracking to budget.

As of October 31, cash held at the local banks totaled $77,742.93.

4-B “Investment Results Summary – September 30, 2024” Mrs. Guinn had not yet received October’s numbers from the FPIF. The investment fund’s current value was at $2,818,750.04. The MTD return for September was 2.04% and YTD return was 13.40%.

Firefighter Muston moved to approve the Treasurer’s Report, seconded by Interim Chief Harmon. A majority affirmative voice vote was received.

AGENDA #5 REVIEW/ACCEPT FOSTER & FOSTER ACTUARIAL REPORT Mrs. Guinn reminded the Board that the FPIF hired Foster & Foster to create the actuarial report. This year’s report indicated that Olney’s statutory minimum required contribution would be $62,045.00. Mrs. Guinn expected the next year’s statutory minimum required contribution to be higher now that the Fire Department had gone from 3 full-time staff members to 5 full-time staff members.

The Fire Pension Fund’s current unfunded liability totaled $863,316.00 with a funded ratio of 75.90%. The Fund was seeing progress on the funded ratio.

Firefighter Muston asked what the goal was for the funded ratio. Mrs. Guinn replied that the ratio would need to reach 90% by 2040. The funded ratio moved up and down based on certain factors, and those factors are what the actuaries used for their determinations.

Firefighter Muston then asked how the City planned to make up the difference. Mrs. Guinn indicated that the goal should be hit as long as the City contributed at least the statutory minimum required contributions each year. To help get there faster, Mrs. Guinn stated that the City typically made additional contributions.

Firefighter Muston moved to accept the Foster & Foster Actuarial Report, seconded by Interim Chief Harmon. A majority affirmative voice vote was received.

AGENDA #6 REVIEW/ACCEPT REQUIRED REPORTING TO MUNICIPALITY Mrs. Guinn explained that each year, a Required Reporting to Municipality needed to be presented to the Council for their review. Information from the actuarial report, annual report, and annual budget were used to compile this reporting.

Mrs. Guinn gave a brief overview of the report, and the Board was able to review the information.

Firefighter Muston moved to accept the Required Reporting to Municipality, seconded by Interim Chief Harmon. A majority affirmative voice vote was received.

AGENDA #7 REVIEW/APPROVE THE RECOMMENDED 2024/2025 TAX LEVY FOR THE FIRE PENSION FUND The Board would need to take action to recommend a tax levy to the Council for the 2024/2025 year. Mrs. Guinn had prepared 2 options for the Board to consider.

Both options included the statutory minimum required contribution amount of $62,045.00 and also amounts that would cover expenses for the year. The first option would also include an additional contribution of $125,000.00. The second option would include an additional contribution amount of $115,000.00.

Firefighter Muston moved to recommend the first option for a total tax levy of $201,000.00 to the City Council, with the second option of a tax levy of $191,000.00 as an alternative, seconded by Interim Chief Harmon. A majority affirmative voice vote was received.

AGENDA #8 APPROVE FIRE PENSION PAYMENT INCREASES EFFECTIVE JANUARY 1, 2025 Mrs. GuinN reminded the Board that statute required retirees to receive a 3% pay increase each year. Surviving spouses would not receive increases, and former Chief Mike Hill would not be eligible for an increase until 2028.

Firefighter Muston moved to approve pension payment increases effective January 1, 2025, seconded by Interim Chief Harmon. A majority affirmative voice vote was received.

AGENDA #9 AUTHORIZE PAYMENT/REIMBURSEMENT OF INVOICES Mrs. Guinn expected to receive the fiduciary liability insurance invoice before the end of the year that would be close to $9,500.00.

Firefighter Muston moved to authorize payment of the fiduciary liability insurance invoice, up to an amount of $10,000.00, seconded by Interim Chief Harmon. A majority affirmative voice vote was received.

AGENDA #10 PUBLIC COMMENTS/PRESENTATIONS No one from the public was present.

AGENDA #11 SCHEDULING OF NEXT MEETING The next meeting of the Fire Pension Board would be at 9:00 a.m. on March 13, 2025.

AGENDA #12 ADJOURN Mrs. Guinn moved to adjourn, seconded by Firefighter Muston. A majority affirmative voice vote was received.

The Fire Pension meeting adjourned at 9:28 a.m.

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