07-26-1993 CC MIN - Laserfiche WebLink

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. . . City Council Meeting July 26, 1993 Page 2 that with an increase of five additional firefighters there has been a drop in retirement benefits for all firefighters. He further stated that the $19,000 contribution by the City has been, and was, a verbal commitment in 1986 that this money is part of firefighters' compensation and the firefighters consider this part of their compensation on a per year basis. He indicated that firefighters put in many hours of community service and the City and state put unlimited demands on their time. He stated that the firefighters feel the $19,000 contribution from the City is fair pay for a job well done. Mayor Duitsman requested that in the future, he and Lori Johnson be included at all Fire Relief Association meetings. Mayor Duitsman stated that the City is requesting the firefighters consider changing their plan to eliminate the unfunded liability placed on the City. He recommended that the City increase the hourly wage instead of making a contribution to the retirement plan as this is a fair method of reimbursing the firefighters. He further stated that the firefighters must consider changing their plan to a defined contribution benefit system. Randy Sykes indicated that the Fire Relief Association has been looking at changing to a defined contribution benefit system, but it is a very complex method and will take time. It was indicated by several firefighters that they would prefer a deferred benefit rather than an increase in hourly wage. The City Administrator stated that in 1986 there was never an ongoing commitment for a contribution to the Fire Relief Association from the City Council, but it was meant to be evaluated year by year. MAYOR DUITSMAN MOVED THAT THE CITY CONTRIBUTE $19,000 TO THE ELK RIVER FIRE DEPARTMENT RELIEF ASSOCIATION FOR 1993 WITH THE IDEA THAT NEXT YEAR THE CITY WILL LOOK AT WAGE INCREASES IF THE FIRE DEPARTMENT IS NOT WILLING TO TRANSFER THE PLAN ASSETS TO A DEFINED CONTRIBUTION PLAN. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 4-0. 4.2. Fire Relief Per Year of Service Benefits Request Randy Sykes stated that the Fire Relief Association is recommending that the per year of service benefit be raised to $2,240. He stated this amount requires no City contribution and that it is a very conservative calculation. COUNCILMEMBER FARBER MOVED TO INCREASE THE YEARLY RETIREMENT AMOUNT TO $2,240 PER YEAR OF SERVICE. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION FAILED 2-2. Councilmember Dietz and Mayor Duitsman opposed. COUNCILMEMBER DIETZ MOVED TO INCREASE THE YEARLY RETIREMENT PER YEAR OF SERVICE. MAYOR DUITSMAN SECONDED THE MOTION. CARRIED 4-0. TO $2,200 THE MOTION