Victoria MN Newspaper-City Scoop

Floor to Ceiling

In-Town Auto Repair 952-443-2868

STELLAR REPORT OF VICTORIA FIRE RELIEF

EXCEPT FOR ONE GLARING BLACK MARK

Said Mayor Tom O'Connor, "It was a stellar report except for the glaring black mark on the group." He was referring to the audit report of the Victoria Fire Relief Association for the year ended December 31st, 2012. The report was presented to councilmembers on Wednesday, Sept. 4th, by Jeff Nordeen, treasurer of the Association.

The stellar part showed a 12.9% increase in net portfolio growth or, in dollars, an increase of $101,000. "This is the first year where assets are higher than liabilities," said Jeff.

"There was also a painful finding," he continued. "There were expenditures that couldn't be accounted for. Someone was misusing Relief debit cards. The Relief Association informed the Carver County Sheriff's Office. The individual has confessed. Debit cards were frozen. The amount has been returned. It was about $6,000."

Said Jeff, "He was a friend of mine. It's very disappointing. It was small amounts over a long period of time. It'll come up again in the audit report for 2013.

"Debit cards are no longer being used," he said. "The convenience was not worth the risk. A monthly reconciliation would have caught this a lot earlier. Don Uram has graciously offered city staff to help us with this, effective immediately."

Jeff said the Fire Relief Association is considering transferring management of the pension fund to the State. That organization is the Minnesota State Board of Investment (SBI). "Then there's no need for an audit," he explained. He said the Relief Association would only have funds from the annual Fishing Contest to manage.

Asked Councilmember Tom Strigel, "What are the pros and cons of transferring to the State?"

"Both of our big costs go away," replied Jeff. "We don't pay $5,000 for the audit, and there are no advisory fees. The con is that once you get in, you can't get back out. It's a loss of local control. We haven't heard any horror stories about not getting pensions out. Also, the amount of pension benefits is frozen for five years, so older firefighters are against it."

Currently, the pension for a retiring Victoria firefighter is $2,000 per year of active service. If a Victoria firefighter retires after 30 years in the Victoria Fire Department, in other words, he receives $60,000. Members who retire with less than 20 years of active service and have reached the age of 50, and have completed at least five years of active service, are entitled to a reduced service pension.

According to City Manager Don Uram, there are three sources of contributions to the Pension Fund: State Fire Aid, the City contribution, and investment earnings. Last year, State Fire Aid was $37,783 and the City contribution was $25,586 for a total of $68,369.

If that Fund is turned over to the State for management, the City would send its contribution to the State.

Under state control, if city councilmembers raised the pension amount to $2,100/year, a retiring firefighter wouldn't be eligible for the increased amount for five years after the amount was raised. Under local control, the increase is effective immediately, including for a firefighter that retires the next day.

All members of the Victoria Fire Department are also members of the Victoria Firefighters' Relief Association. The Association is governed by a nine-member Board of Trustees -- six elected by the Association plus the Mayor of Victoria, Victoria City Manager, and the Victoria Fire Chief. Jeff said there are more than 700 Fire Relief Associations in the State of Minnesota. "We finally got a document that says we have tax exempt status again, a 501c4," he said.

VICTORIA WITHDRAWS FROM THE LMCC

COUNCIL MEETINGS WILL STILL BE TAPED

Councilmembers voted 5-0 to withdraw from the Lake Minnetonka Communications Commission and approve an engagement agreement with Moss & Barnett to negotiate a franchise agreement with Mediacom for the community. There was a unanimous commitment to ensure ongoing taping and televising of city council meetings.

"We've discussed this at least for the last couple of years," said City Manager Don Uram on September 23rd. "The organization includes primarily cities around the lake and in Hennepin County. The city has to give notice by October 15th."

"Three other communities -- Medina, Orono, and Minnetrista -- have indicated they are also withdrawing," he said. "We have opportunities with the county's fiber project. The LMCC is looking at the possibility of providing services to nonmember cities. All the money currently paid to the LMCC -- approximately $75,000 -- would come back to the city."

Victoria's savings from LMCC membership dues will be used to continue taping and televising city council meetings. The cost of retaining Ross and Barnett was between $5,500 to $7,500.

The current franchise agreement between the LMCC and Mediacom expires December 15th, 2013. Effective December 15th, 2013, the City of Victoria will no longer be governed by the LMCC franchise.

Click here for more City Scoop.