Open Letter to CSFA Members from President Kevin Nida
Open Letter to CSFA Members:
Grateful to you...
As many of you know, I was re-elected to another term as President, CSFA Board of Directors on March 3, 2010 at our 88th Annual Conference and Leadership Summit in San Diego. I appreciate the confidence and trust you have placed in me, in our Board of Directors and in our very capable staff in Sacramento. We have much work to do together to grow and develop CSFA and to realize its expanded potential to serve California's firefighters. I look forward to working with you over the next year in this worthy endeavor.
Legal action concluded successfully...
In early March the Board of Directors concluded an arbitration and settlement with the expert assistance of our law firm McDonough Holland and Allen. By mutual agreement the parties have approved the following statement:
"The CSFA employee defined benefit pension plan, as amended in January 2006, was found to be unaffordable and defined pension benefits were frozen effective December 31, 2006. In 2009, the CSFA Board of Directors initiated a private arbitration action against the former CSFA General Manager in relation to the selection and passage of this pension plan amendment. This arbitration was resolved by mutual agreement of the parties, the terms of which included a lump-sum pension payment to the former General Manager that reduced CSFA's pension liability by approximately $1.4 million. This reduction in liability caused the defined benefit pension plan to become fully funded so that all [vested participants] can now receive lump-sum pension payments, and CSFA can close the plan."
Financial strategy developed for loan repayments...
The Board of Directors is securing a loan to 1) make the lump sum pension payment to the former General Manager as referenced above, 2) refinance a line-of-credit used to make quarterly payments into the pension plan (which are no longer necessary given that the plan will now be fully funded), and 3) pay associated legal expenses. In April we will post on-line, in our "Members-Only" section, our 2009 year-end financials and our first quarter 2010 financials, which will reflect this reduced pension plan liability.
It is our goal to pay off this loan and a previous building improvement loan prior to the year 2022, our CSFA one-hundred year anniversary. In order to keep us focused on this priority objective, our Board Finance Subcommittee, currently including Directors Ken Wuchner and Mike Cromer, will work with Executive Director John Dane and Consulting Accountant Cassie Bangerter to identify strategies for early loan repayment.
Developing a new CSFA fundraising and development working group...
This month I plan to appoint a number of individuals to a new CSFA-FSTI Fundraising and Development Working Group. This working group will be tasked with bringing more non-dues revenue into CSFA. New revenue will 1) help fund CSFA operations, 2) increase firefighter training, 3) finance effective political action and lobbying, 3) build our fastest growing event, the Valor Award Dinner, and 4) reactivate our scholarship program for the children of California firefighters at a time when California college and university fees are being raised significantly.
Highlight our long-term strategic objectives and business plan...
The CSFA Board has specified strategic objectives for 2010 - 2014, but it is my intent to distribute this information more widely among our membership so that you understand more fully the direction CSFA is headed and what benchmarks the Board will be using to measure our progress together over the next several years.
Thank you for your support and trust!
Sincerely,
Kevin R. Nida
President, CSFA Board of Directors