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<br /> <br />City of Elk River <br />REQUEST FOR COUNCIL ACTION <br />Agenda Section Meeting Date <br />Achninistration ul T 17, 2006 <br />Item Description <br />Consider Z007 Benefit Le\Tel for Elk Ri\Ter Fire Relief <br />.i\ssociation <br /> <br />Item Number <br />7.2. <br /> <br />Prepared by <br />Lori ohnson, Ci T Administrator <br />Reviewed by <br /> <br />Introduction <br />Before .i\ugust 1 of eacll year the Elk River Fire Relief .L\ssociation is required to certify to tlle <br />City tlle required municipal contribution to the Relief Association for the follo~ving year. A <br />request for an increase in dle per year of service pension amount for the next year must also be <br />acted on by the Council before _August 1. <br /> <br />Discussion <br />The Relief Association is requesting an increase of $275 in the per year benefit le,\Tel to $4,450 for <br />2007. -L\ttaclled is a letter from Relief i\ssociation President Robert Dreissig regarding tile <br />requested increase. Tlus increase does not require any city contribution. It assumes a return on <br />in"1\lestments of three percent and 100 percent funding of tlle pension fund. <br /> <br />Furtller, tlle 2006 budget includes a \Toluntary pension contribution to the Relief Association of <br />$28,950. _Authorization to make this payment is requested at this time. <br /> <br />Finally, it is important to again mention that by ratifying an increase in tlle benefit amount, the <br />City must pro\Tide the funds needed to support tllose benefits. As I stated earlier, Relief <br />Association projections indicate that tlle fund ~vill be fully funded if this increase is appro\Ted. <br />Tllerefore, based on tllose projections, tlle need for an additional City contribution is extremely <br />relnote. BOtll Ivlayor I<linzing and I serve as trustees of tlle .L\ssociation, and \ve ,vill be available <br />to ans\ver questions you may ha\Te on this request. Relief .L\ssociation representatives \vill also be <br />at tlle meeting to ans\\rer questions. <br /> <br />Attachments <br />· Ivfemo from Fire Relief President Robert Dreissig <br />· Excerpt from 2005 Fire Relief .L"\udit <br /> <br />Action Requested <br />TIle City Council is asked to consider increasing the Elk River Fire Relief Association per year of <br />sel\lice benefit le,\Tel to $4,450 per year for 2007. The Council is further requested to authorize <br />payment of the budgeted 2006 pension contribution to the .L"\ssociation in the amount of $28,950. <br /> <br />s: \ Council \Lori \ 2006 \ FircRclie fCon tribu tion.doc <br />