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<br />-\1 -\.( <br />( ;; <br />.Yl~' <br />E ~ River <br /> <br /> <br />ITEM 7.5. <br /> <br />MEMORANDUM <br /> <br />FROM: <br /> <br />MAYOR & CITY COUNCIL <br />LORI JOHNSON, FINANCE DIRECTOR ~ <br />JUNE 23, 1994 <br /> <br />TO: <br /> <br />DATE: <br /> <br />SUBJECT: FIRE RELIEF ASSOCIATION BENEFIT <br />INCREASE REQUEST <br /> <br />At the May 31 City Council meeting, Randy Sykes, Treasurer of the Elk <br />River Fire Relief Association, presented the Council with preliminary <br />schedules for the 1995 benefit level for the Relief Association. The present <br />benefit is $2200 per year of service and the preliminary schedules requested <br />an increase to $2400 per year of service. <br /> <br />e <br /> <br />The Fire Relief Association has revised its request and is asking for approval <br />of a $2350 per year benefit. This benefit calculation assumes that the City <br />Council will make a contribution of $19,000 to the Relief Association in 1994. <br />The benefit level does not require a City contribution in 1995. <br /> <br />Randy Sykes will be at the Council meeting to provide additional information <br />on this item. Because the schedules need to be submitted to the state by <br />August 1, 1994, the Relief Association is asking for Council action on the <br />schedules as well as the 1994 contribution to the Relief Association. The <br />1994 contingency budget includes funds for this expenditure. If the City <br />Council authorizes a contribution at a level other than $19,000, schedules 1 <br />and 2 would need to be recalculated and resubmitted to the Council for <br />approval. <br /> <br />e <br /> <br />Finally, the Fire Compensation Task Force has been working on reviewing <br />the total firefighter compensation package. This review includes the <br />possibility from changing to a defined benefit pension plan to a defined <br />contribution pension plan. At this time, it is anticipated that this change <br />would take place on January 1, 1995. If that changes does occur, schedules 1 <br />and 2 would no longer be relevant as the payment to a retiring firefighter <br />would be based on the firefighter's percentage of the total available in the <br />pension fund versus an amount per year of service. The Task Force is <br />continuing to work on this item and will provide updates to the Council as <br />progress is made. <br /> <br />P.O. Box 490 · 13065 Orono Parkway · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425 <br /> <br />