4.3. & 4.4. SR 07-06-1998 - Laserfiche WebLink

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,~ity of 'ver TO: FROM: DATE: SUBJECT: MEMORANDUM Item # 4.3 & 4.4. Mayor & City Council Lori Johnson, Finance Director June 24, 1998 Fire Relief Association Benefit Increase Health/Dental Insurance Proposals There are two items on the July 6, 1998, agenda which may require considerable discussion. However, because I will be out of the office starting June 25 and returning July 6, only general information will be presented in this memo as I do not yet have all of the information needed to fully address these items. Additional detailed information will be presented verbally and in writing at the July 6 Council meeting. If you have questions prior to the meeting, please contact me on Monday, July 6. The two issues to be discussed are the Elk River Fire Relief Association benefit increase request and consideration of health and dental insurance proposals for non-union employees. A final decision on the Relief Association's request is not needed until the July 27 meeting so adequate time will be available to consider this item. A decision does need to be made on the health and dental insurance proposals so that there is enough time to implement an August 1 contract date. The following will provide a brief and very general overview of these agenda items. Fire Relief Association Benefit Request As you may recall, each year the Relief Association has the option to increase its per year benefit amount. Unless the Relief Association is fully funded (110%) the Council is asked to approve the increase. If the Council did not approve the increase the Association could still pay at the higher rate as long as it meets the fully funded requirement but the Council would not be responsible for any liability above the last benefit amount which the Council had approved. For example, the current benefit level, which was approved by the Council, is $2,674.00 per year of service. The Relief Association is requesting an increase to $2,970.00 per year of service. As in the past, with the exception of one year when a municipal contribution of approximately $675 was required, no municipal contribution is required to support an increase to $2,970.00. Because of the asset level necessary to support this increase, the Council is being asked to approve the increase. 13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425