6.3. SR 07-10-2000 - Laserfiche WebLink

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City of River MEMORANDUM Item #6.3. TO: FROM: DATE: Mayor and Council Lori Johnson, Finance Director July 10, 2000 SUBJECT: Discuss Fire Relief Association Benefit Request for 2001 and 2000 City Contribution At the June 14, 2000, Elk River Fire Relief Association meeting, the trustees discussed the 2001 benefit amount and are requesting that the City Council consider increasing the per year benefit from $3,370 to $3,575 per year of service. As you may recall, the Council must take action on the Relief Association request before August 1, 2000. The benefit amount can only be increased if the Council approves the increase or the Relief Association is funded at 110%. The requested increase requires Council approval. Representatives from the Elk River Fire Relief Association will be present at the Council meeting to discuss the requested increase. Additionally, attached is a memo from Rob Dreissig, President of the Relief Association, providing some historical information on the Relief Association as well as current investment information. As we have discussed previously, the Relief Association has significantly changed its investment portfolio and most of the funds are now with the State Board of Investment. Also attached are Schedules I and II which are used to determine the fund liability and municipal contribution for the requested benefit amount. The Schedules assume a seven percent return on investments and a city contribution of $21,350. Predicted assets at year-end are at $1,383,126 and the associated accrued liability is $1,381,640 leaving a surplus of $1,486. Based on the requested benefit increase, no municipal contribution is required in 2001. However, the city has contributed in the past even though it was not required to. 13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425