7.1. SR 07-19-2010 - Laserfiche WebLink

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REQUEST FOR ACTION To Item Number Ci Council 7.1 Agenda Section Meeting Date Prepared by Administration ul 19, 2010 Tim Simon, Finance Director Item Description Reviewed by Annual Benefit Level discussion for the Elk River Fire Relief Lori ohnson, Ci Administrator Association Reviewed by Action Requested There is no request for action as the Elk River Fire Relief Association is not asking for any change in benefit level per year of service for 2011. The one item Council may want to discuss is keeping the $30,000 contribution for the next budget year as this amount has remained the same the past three years. Background/Discussion The Elk River Fire Relief Association, prior to August 1 of each year, is required to certify to the City the required municipal contribution for the following year. Also, a request for an increase in per year of service pension amount for the next year must be acted on by the Council before August 1. Given the current market conditions and funding ratio, the Elk River Fire Relief Association has requested no increase in benefit level for 2011. The Elk River Fire Relief Association has assumed a rate of return on investments of 5 percent for 2010 in the form SC-10 which is certified to the State Auditor's office. The 5 percent is the recommendation from the reliefls investment advisor -The Parr McI~tiight Wealth Management Group of Wells Fargo Advisors based on the 60% equities and 40% bond portfolio. As of July 9, 2010 the rate of return on investments is approximately a negative 2.21 percent. Relief association board members will be at the meeting to go over any questions the Council may have. Year 12/31/2009 12/31/2008 12/31/2007 12/31/2006 12/31/2005 Funded Rate 87.2% 70.9% 114.7% 114.8% 105.9% Financial Impact The preliminary 2011 budget anticipated a voluntary contribution of $30,000 in the Fire Administration budget. If Council would like to continue the $30,000 amount it will cover the required contribution in the amount of $29,119. Attachments • Memo from Elk River Fire Relief President Scott Schmitt • Statement of Position -Required Municipal Contributions to Volunteer Firefighters' Pension Plans C:\Documents and Settings\XPMUser\Local Settings\Temporary Internet Files\OLK66\Fire relief benefit levels 07 19 IO.doc