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<br />City Council Minutes <br />July 16, 2007 <br /> <br />Page 3 <br /> <br />. <br /> <br />5.2. <br /> <br />Consider 2008 Benefit Level for Elk River Fire Relief Association <br /> <br />Mr. Simon presented his staff report. <br /> <br />Councilmember Motin stated the increase for this year seems high (14-15%) and questioned <br />how it compares to other years. <br /> <br />Mr. Simon stated this is a higher increase than previous years. He stated last year the <br />investments returned 10.27%. He stated the state fire aid and the voluntary city contribution <br />factors into the normal cost. <br /> <br />Councilmember Motin questioned why the high increase and how everyone will be affected <br />going forward and in prior years; especially if the city adds more firefighters or builds more <br />stations. <br /> <br />Mr. Pearson stated the per year increase will be about $200,000. He stated $150,000 is <br />covered with the 2% state fire aid. He stated new firefighters don't take on 100% liability <br />and they need to be a firefighter for 5 years before there is a 40% vesting percentage. <br /> <br />Councilmember Motin questioned how 14% is warranted and whether the city can keep a <br />surplus in case the market goes down. <br /> <br />. <br /> <br />Mr. Pearson stated the Association tries to be conservative in their actuarial calculations <br />because they don't know what the market will do and unless the market takes a downtown <br />they will see a surplus. <br /> <br />Mr. Simon stated if additional firefighters are hired for an Otsego fire department, Fire <br />Chief West will be completing an actuarial study to see how much the firefighters would <br />have to pay into the fund <br /> <br />MOVED BY COUNCILMEMBER GUMPHREY AND SECONDED BY <br />COUNCILMEMBER ZERWAS TO INCREASE THE ELK RIVER FIRE RELIEF <br />ASSOCIATION BENEFIT LEVEL PER YEAR OF SERVICE TO $5,091 PER <br />YEAR FOR 2008 AND TO AUTHORIZE PAYMENT OF THE BUDGETED 2007 <br />PENSION CONTRIBUTION TO THE ASSOCIATION IN THE AMOUNT OF <br />$29,800. MOTION CARRIED 5-0. <br /> <br />4.a. Open Mike <br /> <br />Mayor Klinzing reopened Open Mike for a late-comer to the meeting. <br /> <br />A resident, along with some kids, requested funds to finish a park designated in the Oak <br />Hills development. <br /> <br />Mayor Klinzing noted the city would be reviewing the Capital Improvement Plan later this <br />year and will take the request into consideration. <br /> <br />6.1. <br /> <br />Consider Property Tax Abatement and Business Subsidy for Metal Craft Machine & <br />Engineering Expansion Project. Public Heamw <br /> <br />. <br /> <br />Ms. Steinmetz presented the staff report. She noted a change in the draft agreement in that <br />Metal Craft would like to reduce the number of jobs to be created from 28 to 20. She stated <br />