HomeMy WebLinkAbout1988-021 CCRMember Rich Theis introduced the following resolution and moved
its adoption:
RESOLUTION NO. 88 -21
RESOLUTION URGING AN AMENDMENT TO STATE AID FOR POLICE PENSIONS LAW
WHEREAS, a premium tax of 2% is imposed and collected by the State of
Minnesota on auto insurance premiums and this tax is distributed to cities and
counties to be used for police pension costs; and
WHEREAS, since 1977, cities and counties have been required to rebate
amounts received as police pension aid over and above city or county requirements
to fund employer contributions for police pensions to the PERA Police and Fire
Fund without crediting the local government or the employee for these amounts
against future pension contribution requirements; and
WHEREAS, the League of Minnesota Cities opposed the 1976 restriction
on the use of these aid funds at that time and in subsequent years even though,
in those times, only small amounts of money were involved and the PERA Police and
Fire Fund needed the extra infusion of money and cities were in fairly stable
financial condition; and
WHEREAS, these conditions have changed to the extent that the PERA
Police and Fire Fund is now more than 100% funded and the current rate of
employer and employee contributions is in excess of the funds needs and cities
now face a financial squeeze unparalleled since the local government aid suspen-
sions of 1982; and
WHEREAS, since automobile insurance rates on which the 2% police pension
aid is collected have increased far faster than police salaries on which the
pension contribution is figured; and
WHEREAS, during 1987, PERA has billed cities and counties for $1,649,959
in "excess" aid and, as inflation in auto insurance costs continues to outpace wage
costs, more and more cities will face uncredited transfers to PERA unless the
law is amended.
THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn
Center, Minnesota to urge the Minnesota State Legislature to amend the State Aid
to Police Pensions Law so that cities and counties will not be required to rebate
amounts received as police pension aid over and above city or county requirements
to fund employer contributions for police pension to the PERA Police and Fire
Fund.
BE IT FURTHER RESOLVED that certified copies of this resolution be sent
to Senator Bill Luther, Representative Linda Scheid, and Representajive Phil
Carruthers.
January 25, 1988
Date e
ATTEST:
Clerk
The motion for the adoption of the foregoing resolution was duly seconded by
member Gene Lhotka and upon vote being taken thereon, the following
voted in favor thereof: Dean Nyquist, Gene Lhotka, Celia Scott, Bill Hawes,
and Rich Theis;
and the following voted against the same: none,
whereupon said resolution was declared duly passed and adopted.