Laserfiche WebLink
<br /> <br />Item # 6.4. <br /> <br />MEMORANDUM <br /> <br />TO: Mayor and Council <br /> <br />FROM: Lori johnson, Finance Director <br /> <br />DATE: july 18, 2005 <br /> <br />SUBJECT: Consider 2006 Benefit Level for Elk River Fire Relief Association <br /> <br />By August 1 of each year the Elk River Fire Relief Association is required to certify to the <br />City the minimum required municipal contribution to the Relief Association for the <br />following year. In addition, if the Relief Association is requesting an increase in the per year <br />of service pension amount for the next year, that request must also be presented to the <br />Council for consideration prior to August 1. <br /> <br />The Relief Association is requesting an increase in the benefit level for 2006 to $4,175 from <br />$4,000. Attached is a letter from Relief Association President Robert Dreissig regarding the <br />requested increase. There is no required municipal contribution associated with the <br />requested increase. As Mr. Dreissig's memo states, the funding percentage is expected to <br />increase to 99.2 percent, essentially fully funded, in 2005 which is an improvement over the <br />98.9 percent funding level for 2004. <br /> <br />Further, the 2005 budget includes a voluntary pension contribution to the Relief Association <br />of $28,100. The voluntary payment is reviewed annually during budget discussions; typically <br />an inflationary increase is usually applied so the City's pension contribution increases for the <br />following year. Authorization to make this payment is also requested at this time. <br /> <br />Finally, as we have discussed in previous years, by ratifying an increase in the benefit <br />amount, the City must provide the funds needed to support those benefits. Relief <br />Association projections state that the fund will be almost fully funded if this increase is <br />approved so, based on those projections, the need for an additional City contribution is <br />extremely remote. Both Mayor Klinizing and I serve as trustees of the Association and we <br />will be available to answer questions you may have on this request. Also, Relief Association <br />representatives will be present at the meeting to answer questions. <br /> <br />Action Requested <br />The City Council is asked to consider increasing the Elk River Fire Relief Association per <br />year of service benefit level to $4,175 per year for 2006. The Council is further requested to <br />authorize payment of the budgeted 2005 pension contribution to the Association in the <br />amount of $28,100. <br /> <br />s: \ Council \Lori\2005\FireReliefContribution.doc <br />