8.1. SR 07-20-2009 - Laserfiche WebLink

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REQUEST FOR ACTION To Item Number Ci Council 8.1. Agenda Section Meeting Date Prepared by Administration ul 20, 2008 Tim Simon, Finance Director Item Description Reviewed by 2010 Benefit Level for Elk River Fire Relief Association Reviewed by Action Requested The City Council is asked to consider no increase as requested by the Elk River Fire Relief Association and the benefit level per year of service will remain at $5,091 for 2010. Background/Discussion The Elk River Fire Relief Association, prior to August 1 of each year, is required to certify to the City the required municipal contribution for the following year. Also, a request for an increase in per year of service pension amount for the next year must be acted on by the Council before August 1. Given the current market conditions and funding ratio, the Elk River Fire Relief Association has requested no increase in benefit level for 2010. The Elk River Fire Relief Association has assumed a rate of return on investments of 15 percent for 2009. They felt the importance of limiting the impact on the City and allowing the market some time to recover. As of June 30, 2009 the rate of return on investments is approximately 7.76 percent. Relief association board members will be at the meeting to go over any questions the Council may have. Year 12/31/2008 12/31/2007 12/31/2006 12/31/2005 12/31/2004 Funded Rate 70.9% 114.7% 114.8% 105.9% 98.9% Financial Impact The proposed 2010 budget anticipated a voluntary contribution of $30,000 in the Fire Administration budget. The anticipated $30,000 budget amount will cover the required contribution in the amount of $28,516. Attachments • Memo from Elk River Fire Relief President Scott Schmitt • Statement of Position -Required Municipal Contributions to Volunteer Firefighters' Pension Plans Action Motion by Second by Vote FOllow Up S:\Council\Tim\2009\Fire relief benefit levels 07 20 09.doc