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REQUEST FOR ACTION <br />TO ITEM NUMBER <br />~Iavor and Cirn Council 6.1 <br />AGENDA SECTION MEETING DATE PREPARED BY <br />~Crork Session ulv 9, 2012 Tim Simon, Finance Director <br />ITEM DESCRIPTION REVIEWED By <br />annual Fire Relief update Gal Portner, Cinr administrator <br /> REVIEWED BY <br />ACTION REQUESTED <br />No action is required. <br />BACKGROUND/DISCUSSION <br />~nnuallv, the Elk River Fire Relief board provides an update to Council on benefit levels, funding ratios, <br />and dear-to-date investment ret«rns. Several board members will be in attendance as well as John Rudi, <br />an investment advisor from The Parr ~1IcI~iight ~~"ealth ~1lanagement Group of ~~ells Fargo advisors. <br />The Elk River Fire Relief association, prior to august 1 of each dear, is required to certif~~ to the cite the <br />required municipal contribution for the following ~~ear. also, a request for an increase iii per dear of <br />sei-~-ice pension amount for the nett near must be acted on by the Council before august 1. Given the <br />current market conditions and funding ratio, the Elk River Fire Relief association has requested no <br />increase in benefit level for 2013. <br />The Elk River Fire Relief association has assumed a rate of ret«rn on investments of five percent for <br />2012 in the form SC-12 which is certified to the State auditor's office. The rebel's investment advisor, <br />the Parr ~IcI~iight R'ealth Management Group of R'ells Fargo advisors, recommended the lire percent <br />based on the 60"'o equities and -IO" ~o bond portfolio. ~s of June 30, 2012, the rate of retl~rn on <br />investments is 3.7 percent. <br />wear 12/31/2011 12/31/2010 12/31/2009 12/31/2008 12/31/2007 <br />Funded Rate 89.U"'o 91.3°'0 872"'0 70.~~"/0 11-4.7°'0 <br />FINANCIAL IMPACT <br />Based on in~-esrinent retl~rns, the 2013 required city contribution will be under the X30,000 the cifi has <br />contributed in the past few Bears, ezcept iii 2011 when it was $38,300. The X30,000 is included in the Fire <br />administration Budget for 2013. <br />ATTACHMENTS <br />None <br />ID-Ct1011 Motion by Second by Vote <br />PUMEREU A1' <br />N:',Public Bodies ~Cityl ~tinal'~,CouncilRC~,~,genda Pacbet ~~~ 09-30L`6.1 Fire RelietUpdate.doct ~~~~ <br />