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<br /> <br />REQUEST FOR ACTION <br /> <br />To Item Number <br />City Council 5.2. <br />Agenda Section Meeting Date Prepared by <br />Administration July 16, 2007 Tim Simon, Finance Director <br />Item Description Reviewed by <br />Consider 2008 Benefit Level for Elk River Fire Relief Lori Johnson, City Administrator <br />Association Reviewed by <br /> <br />Action Requested <br />The City Council is asked to consider increasing the Elk River Fire Relief Association benefit level per <br />year of service to $5,091 per year for 2008. The Council is further requested to authorize payment of the <br />budgeted 2007 pension contribution to the Association in the amount of $29,800. <br /> <br />Backiround/Discussion <br />The Elk River Fire Relief Association prior to August 1 of each year is required to certify to the City the <br />required municipal contribution for the following year. A request for an increase in the per year of service <br />pension amount for the next year must also be acted on by the Council before August 1. <br /> <br />The Elk River Fire Relief Association is requesting an increase of $641 in the per year benefit level to <br />$5,091 for 2008. This increase does not require any city contribution. It assumes a return on investments <br />of six percent and 100 percent funding of the pension fund. If the benefit level for 2008 increased to <br />$5,975 that would cause the funding ratio to decrease to 85 percent and initiate a mandatory funding <br />obligation from the City of less than $100. <br /> <br />The Relief Association projections indicate that the fund will be fully funded (100%) if this increase is <br />approved. The need for a City mandatory contribution as stated above is remote and the funding level <br />would have to decrease to an estimated 85 percent for a mandatory contribution. Mayor Klinzing, Bruce <br />West and I serve as trustees of the Association, and we will be available to answer questions you may <br />have on this request. Relief Association representatives will also be at the meeting to answer questions. <br /> <br />Year 12/31/2006 12/31/2005 12/31/2004 12/31/2003 12/31/2002 <br />Funded 114.8% 105.9% 98.9% 98.2% 81.8% <br />Rate <br /> <br />Financial Impact <br />The voluntary contribution of $29,800 was budgeted in 2007 in the Fire Administration budget. <br /> <br />Attachments <br />Memo from Fire Relief President Robert Dreissig <br /> <br />I Action <br /> <br />Motion by _ <br /> <br />Second by _ <br /> <br />Vote _ <br /> <br />s: \Council\ Tim \Firereliefbenefitlevels.doc <br />