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of $2,970 per year. This data indicates that the investment income <br />requirements are very minimal for each of the future years. In fact, <br />generally between one to two percent annually. This information should give <br />the Council some comfort level as to its exposure in future years. Based on <br />the best assumptions available regarding retirements and future revenues, it <br />appears that the investment income required to maintain full funding should <br />be easily attainable. This is particularly true given the recent changes in the <br />investment ~]location of the Relief Association's portfolio. <br /> <br />Finally, the current request to increase to $2,970 per year of service does not <br />require a city contribution. However, the Council agreed as part of the <br />Firefighter Compensation package to contribute $20,150 in 1998. While it is <br />the Relief Association's obligation to offer the highest benefit possible to it's <br />members, keep in mind that the Council may approve any increase above the <br />current $2,674 per year of service up to the amount requested. The Council <br />should feel comfortable with the increase approved as the City is bound to <br />paying benefits at the level approved by the Council in the very unlikely <br />event that insufficient Relief assets are available to meet benefit obligations. <br /> <br />Action Requested <br /> <br />The Council is asked to consider the request to increase the 1999 benefit level <br />to $2,970 per year of service. The Council is also asked to authorize payment <br />of the previously approved $20,150 retirement contribution to the Elk River <br />Fire Relief Association. <br /> <br />\\elkriver \sys\shrdoc\councflXfdbeneft.doc <br /> <br /> <br />