Title
Resolution to Authorize Administrative Approval of Distributions from the Police and Fire Relief Fund
Memorandum
The Police and Fire Relief Fund was created by the City in 1926 (the “Fund”). (The Trust’s full legal name is the “Police and Fireman’s Relief Fund” and hereafter referred to as the “The Police and Fire Relief Fund” or simply the “Fund.”) Money from the Fund was to be used for the benefit of “the widows and orphans of firemen and policemen.” From 1926 until approximately 1972, the Fund was funded through proceeds from the sale of certain unclaimed personal property held by the City. In 2018, the City registered the Fund with the State of Michigan as a charitable trust and reclassified the Fund in the City budget from a special revenue fund to a private-purpose trust fund. Although the City no longer contributes to the Fund, the City continues to act its Trustee. Currently the Fund provides that money may be withdrawn “for the relief of the widows and orphans of firemen and policemen” upon recommendation by the joint action of the [Police Chief and Fire Chief] to the [City Council] and its action there.”
This resolution seeks City Council approval for payments from this Fund to be administratively approved by the City Administrator, or their designee, upon the joint recommendation with the Police and Fire Chiefs, and upon the death of any active or retired sworn police officer or firefighter for reasons including, but not limited to the following: a line of duty death; an unexpected death of an active employee that is not considered a line of duty death; or occupational cancer.
To the extent funding is available, distributions of $25,000.00 shall be made to the deceased’s spouse at the time of death. If no such spouse is living, then the distribution shall be made to the deceased’s children, who are born and living at the time of death. If there is more than one born and living child at the time of death, then each child shall receive the distribution in equal amounts.
Budget/Fiscal Impact: This fund currently has a fund balance of $733,292.00 as of June 30, 2024.
Staff
Prepared by: Kim Buselmeier, Interim Chief Financial Officer
Reviewed By: Marti Praschan, Interim Deputy City Administrator
Margaret Radabaugh, Deputy City Attorney
Michelle Landis, Senior Assistant City Attorney
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, The Police and Fireman’s Relief Fund is a private purpose trust fund that the City maintains for the benefit of the “widows and orphans of the [City’s] firemen and policemen” (the “Fund”);
Whereas; The Police and Fire Chiefs shall make a joint recommendation to the City Administrator or their designee for any distributions from the Fund for reasons including but not limited to a line of duty death, an unexpected death of an active employee that is not considered a line of duty death, or occupational cancer;
Whereas, Distributions of $25,000.00 shall be made either to the deceased’s spouse or born and living children as applicable;
RESOLVED, That City Council authorizes the City Administrator or their designee to approve distributions from the Fund upon joint recommendation from the Police and Fire Chiefs;
RESOLVED, That distributions from the Fund may be made upon the death of any active or retired, sworn police officer or firefighter for reasons including, but not limited to, a line of duty death, an unexpected death of an active employee that is not considered a line of duty death, or occupational cancer.
RESOLVED, That distributions of $25,000.00 shall be made either to the deceased’s spouse or born and living children as applicable (“Beneficiary”), to the extent that funding is available within the Fund;
RESOLVED, That as a condition of any disbursement, the City may require the Beneficiary to provide relevant information to enable the City to comply with applicable tax and accounting laws, and to sign a receipt and refunding agreement, as approved and required by the City Attorney;
RESOLVED, That the City Administrator or their designee be authorized to take all necessary actions to implement this resolution.