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HomeMy WebLinkAbout1974-192 CCR Member Maurice Britts introduced the following resolution and moved its adoption: RESOLUTION NO. 74 -192 RESOLUTION AUTHORIZING THE TRANSFER OF FUNDS BETWEEN THE GENERAL FUND AND THE POLICE PENSION FUND WHEREAS, the State of Minnesota levies a one percent tax on the premiums reported to the Commissioner of Insurance by auto casualty insurers in Minnesota; and WHEREAS, 20% of the monies collected are distributed by the State to the Public Employees Retirement Association Police and Fire Pension Fund to be applied against their deficit and 80% is distributed to municipalities maintaining police departments; and WHEREAS, the City of Brooklyn Center received $22,767.72 from this source in the calendar year 1973; and WHEREAS, it was the City's interpretation of the statute establishing the State police aid, that, since the City had provided for the 1973 City contribution necessary to meet the current normal cost and to retire the accumulated deficit by the levy of ad valorem taxes as required by the statute establishing the Brooklyn Center Policeman's Pension Fund, the 1973 distribution could be used for police appropriations other than pensions; and WHEREAS, in accordance with said interpretation, the 1973 police aid was deposited into the General Fund to be used for police appropriations as approved in the 1973 General Fund Budget; and WHEREAS, on September 5, 1974, the City was notified by the State of Minnesota Department of Commerce, Insurance Division, of its interpretation that the police aid must be deposited directly to the Police Pension Fund; and WHEREAS, the interpretation will create a surplus of $22,767.72 over and above the amount needed for the 1973 funding of the Police Pension Fund and will create a deficit of the same amount in the General Fund: BE IT THEREFORE RESOLVED by the City Council of the City of Brooklyn Center that the City Treasurer be directed to transfer the amount of $22,767.72, representing the State aid, from the General Fund to the Police Pension Fund in accordance with the interpretation of the State of Minnesota Department of Commerce, Insurance Division; and BE IT FURTHER RESOLVED that the City Council determines that said transfer will create a surplus thereby enabling the City to reduce its 1973 contribution to the Police Fund and accordingly directs the City Treasurer to return $22,767.72 of the City's 1973 contribution to the General Fund. RESOLUTION NO. 74 -192 r November 4. 1974 Date Mayor ATTEST:° Clerk The motion for the adoption of the foregoing resolution was duly seconded by member Bill Fignar and upon vote being taken thereon, the following voted in favor thereof: Philip Cohen, Maurice Britts, Tony Kuefler, Bill Fignar and Robert Jensen; and the following voted against the same: none, whereupon said resolution was declared duly passed and adopted. i i