HomeMy WebLinkAboutfinancial statement S 1 �G
Chris Swope
Lansing City Clerk
rcH I O
May 8, 2015
City Council President and Lansing City Council Members
10th Floor City Hall
Lansing, MI 48933
Dear President and Council Members:
Pursuant to Section 7-110 of the Lansing City Charter, on May 1, 2015 the Mayor's Office
placed on file with my office:
2014 Financial Statement Audit
This document is available for review at the office of the City Clerk and on the City Clerk's
website (www.lansingmi.gov/clerk).
Sincerely,
C94111
Chris Swope, CIVIC
Lansing City Clerk
Lansing City Clerk's Office
Ninth Floor, City Hall, 124 W. Michigan Ave., Lansing, MI 48933-1695
517-483-4131 • TDD 517-483-4479. 517-377-0068 FAX
www.lansingmi.gov/clerk • clerk@lansingmi.gov
Q 1`t S I rV FINANCE DEPART�ENTj:_I ED
ti G 124 K Michigan Ave., 8 �Fi
Lansing,Michiganq48933y
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LANSING CITY CLERK
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Virg Bernero,Mayor
April 23, 2015
Honorable Mayor Bernero and Lansing City Council Members
124 West Michigan Avenue
Lansing, MI 48933
RE: 20.14 Financial Statement Audit
Dear Mayor and Council Members:
Recently, the Trustees of the Lansing Police and Fire Retirement System and the Lansing
Employees' Retirement System (collectively, the "Systems") reviewed the City's 2014 Financial
Statement Audit as prepared by Rebmann Robson (dated December 19, 2014). As in previous
years, we noted that one of Rehmann's "comments and recommendations" included a
recommendation that the City seek to accelerate the timeframe for submitting data to the
Systems' actuary in relation to required annual actuarial valuations. We continue to agree with
this recommendation for a variety of reasons.
Accordingly, on February 19, 2015 and March 17, 2015, the Systems amended their
respective "Annual Report Policies" to include specific dates for the submission of the required
data by the Systems' Secretary (the City's Finance Director) to the Systems' actuary. Adherence
to the amended policies should serve to comply with Rebmann's recommendation. Copies of the
amended policies are attached for your convenience.
Please feel free to contact us with any questions.
Sincerely,
Brad St Aubin Dennis R. Parker
Chair, Police and Fire Retirement System Chair, Employees' Retirement System
"Equal Opportunity Employer"
CITY OF LANSING
EMPLOYEES'RETIREMENT SYSTEM BOARD OF TRUSTEES
ANNUAL REPORT POLICY
1. Purpose,
The Lansing Employees' Retirement System Board of Trustees (the "Board") establishes the following
policy to provide a procedure, consistent with City ordinance, state law and past practice, for the
compiling of the Board's annual report to the Mayor and City Council as required by Lansing Codified
Ordinance Section 292.10 and MCL 38.1133, as amended.
II. Policy.
A. In compliance with Michigan law, each calendar year the Board shall receive from its actuary a report
in writing showing the fiscal performance and condition of the retirement system for the year that ended
on the preceding December 31 ("actuary's annual report"),
B. On or before June 30 of each calendar year, to facilitate the timely preparation of the actuary's annual
report the City's Finance Director and secretary to the Board shall cause to be provided to the Board's
actuary all requested and necessary data, including financial and employment information, investments
and performance information,reports,tables and calculations.
C. On or before August 31 of each calendar year,the Board's actuary shall prepare and provide a draft of
the actuary's annual report, inclusive of the data provided by the secretary, to the Board for its
consideration and review.
D. The actuary's annual report, in conjunction with the investment performance report of the Board's
financial consultant, shall at least include the following information;
1. The name of the retirement system;
2. The amount of cash held by the retirement system as of the preceding December 31;
3. The amount of securities held by the retirement system as of the preceding December 31;
4. Any changes in net plan assets, on a plan-year basis;
5. The retirement system's administrative and investment expenses for the preceding year,
including professional training and education and travel expenses, complied in accordance
with the standards of the governmental accounting standards board;
6. An itemized budget containing all projected expenditures.
7. The final balance sheet of the retirement system;
8. An actuarial valuation of the retirement system's assets and liabilities;
9. The names of the retirement system's investment fiduciaries;
10. The names of the retirement system's service providers;
11. The retirement system's funded ratio for the preceding year, including the ratio of the
retirement system's valuation assets to its actuarial liabilities, on a plan-year basis;
12. The retirement system's investment performance net of fees on a rolling calendar-year basis
for the previous 1, 3, 5, 7 and 10-year periods;
13. The number of active members in the retirement system;
14. The average annual retirement allowance;
15. Total annual retirement allowances paid for the preceding plan-year;
16. The valuation payroll;
17. The employer's computed normal cost of benefits expressed as a percentage of valuation
payroll;
18. The annual contribution due from the City for the preceding calendar year based on the
actuarial assumptions of the retirement system expressed as a percentage of valuation payroll;
19, The weighted average of member contributions, if any;
20. The actuarial assumed rate of investment return;
21. The actuarial assumed rate of long-tern wage inflation;
22. The smoothing method utilized to determine the funding value of assets;
23. The amortization method and period utilized for funding the retirement system's unfunded
actuarial accrued liabilities, if any;
24, The retirement system's actuarial cost method;
25. Whether membership is open or closed to specific groups of employees.
E. Prior to September 30 each calendar year, the actuary's annual report, in final and acceptable form,
shall be presented or otherwise received by the Board at a regular meeting,
F. When satisfied with the form and content of the actuary's annual report, the Board shall publicly
approve and accept the actuary's annual report. Such acceptance shall be reflected in the Board's meeting
minutes,
G. After Board approval of the actuary's annual report, the Retirement Analyst shall notify the Mayor's
Office and the City Council that the approved report is on file and available for review. The Retirement
Analyst shall forward a copy of the approved report to the Mayor's Office and to the City Clerk's Office
who shall forward the approved report on to the City Council.
H. If the City Council requests that a Board member attend a meeting of the Council to provide
additional information relating to the approved report,the Board may designate a Board member to attend
the meeting to provide such information.
1. To ensure that the accepted actuary's annual repot is available to members, retirees and beneficiaries
of the retirement system, and to the citizens of the City, within 7 days after its approval,the Board shall
publish the actuary's annual report on the"retirement system"page of the City's website.
III. Compliance with Applicable Laws.
Nothing contained within this policy shall be construed to relieve a person of the duties and obligations
imposed by the Lansing Code of Ordinances or state and federal law.
Policy adopted: February 19,2015
201824667.3 26005/118235
CITY OF LANSING
POLICE AND FIRE RETIREMENT SYSTEM BOARD OF TRUSTEES
ANNUAL REPORT POLICY
I. Purpose.
The Lansing Police and Fire Retirement System Board of Trustees(the`Board") establishes the following
policy to provide a procedure, consistent with City ordinance, state law and past practice, for the
compiling of the Board's annual report to the Mayor and City Council as required by Lansing Codified
Ordinance Section 294.02(e) and MCL 38.1133, as amended.
IL Policy.
A. In compliance with Michigan law, each calendar year the Board shall receive fi•om its actuary a report
in writing showing the fiscal performance and condition of the retirement system for the year that ended
on the preceding December 31 ("actuary's annual report").
B. On or before June 30 of each calendar year, to facilitate the timely preparation of the actuary's annual
report, the City's Finance Director and secretary to the Board shall cause to be provided to the Board's
actuary all requested and necessary data, including financial and employment information, investments
and performance information,reports,tables and calculations.
C. On or before August 31 of each calendar year,the Board's actuary shall prepare and provide a draft of
the actuary's annual report, inclusive of the data provided by the secretary, to the Board for its
consideration and review.
D. The actuary's annual report, in conjunction with the investment performance report of the Board's
financial consultant, shall at least include the following information:
1. The none of the retirement system;
2, The amount of cash held by the retirement system as of the preceding December 31;
3. The amount of securities held by the retirement system as of the preceding December 31;
4. Any changes in net plan assets, on a plan-year basis;
5. The retirement system's administrative and investment expenses for the preceding year,
including professional training and education and travel expenses, complied in accordance
with the standards of the governmental accounting standards board;
6. An itemized budget containing all projected expenditures.
7, The final balance sheet of the retirement system;
8. An actuarial valuation of the retirement system's assets and liabilities;
9. The names of the retirement system's investment fiduciaries;
10. The names of the retirement system's service providers;
11, The retirement system's funded ratio for the preceding year, including the ratio of the
retirement system's valuation assets to its actuarial liabilities,on a plan-year basis;
1.2. The retirement system's investment performance net of fees on a rolling calendar-year basis
for the previous 1,3, 5, 7 and 10-year periods;
13. The number of active members in the retirement system;
14, The average annual retirement allowance;
15. Total annual retirement allowances paid for the preceding plan-year;
16. The valuation payroll;
17. The employer's computed normal cost of benefits expressed as a percentage of valuation
payroll;
18, The annual contribution due from the City for the preceding calendar year based on the
actuarial assumptions of the retirement system expressed as a percentage of valuation payroll;
19. The weighted average of member contributions,if any;
20. The actuarial assumed.rate of investment return;
21. The actuarial assumed rate of long-term wage inflation;
22. The smoothing method utilized to determine the funding value of assets;
23. The amortization method and period utilized for funding the retirement system's unfunded
actuarial accrued liabilities, if any;
24. The retirement system's actuarial cost method;
25. Whether membership is open or closed to specific groups of employees.
E. Prior to September 30 each calendar year, the actuary's annual report, in final and acceptable form,
shall be presented or otherwise received by the Board at a regular meeting.
F. When satisfied with the form and content of the actuary's annual report, the Board shall publicly
approve and accept the actuary's annual report. Such acceptance shall be reflected in the Board's meeting
minutes.
G. After Board approval of the actuary's annual report, the Retirement Analyst shall notify the Mayor's
Office and the City Council that the approved report is on file and available for review. The Retirement
Analyst shall forward a copy of the approved report to the Mayor's Office and to the City Clerk's Office
who shall forward the approved report on to the City Council,
H. If the City Council requests that a Board member attend a meeting of the Council to provide
additional information relating to the approved report,the Board may designate a Board member to attend
the meeting to provide such information.
I. To ensure that the accepted actuary's annual report is available to members, retirees and beneficiaries
of the retirement system, and to the citizens of the City,within 7 days after its approval, the Board shall
publish the actuary's annual report on the"retirement system"page of the City's website,
III. Compliance with Applicable Laws,
Nothing contained within this policy shall be construed to relieve a person of the duties and obligations
imposed by the Lansing Code of Ordinances or state and federal law.
Policy adopted: March 17,2015
201824639.3 26005/118235