02-23-11 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL FEBRUARY 23, 2011 LITTLE CANADA FIRE RELIEF BENEFIT INCREASE DIANNA LANE IMPROVEMENT DECLARE COSTS CALL FOR ASSESSMENT HEARING The City Administrator reported that the Board of Trustees of the Little Canada Fire Relief Association has voted to recommend the City Council approve a $50 per year of service pension benefit increase. This would bring the pension benefit per year of service to $3,150. The Administrator reported that the City voluntarily contributes $15,000 per year toward the pension fund. He also noted that the City's policy has been to consider pension benefit increases when the pension fund is 100% funded. The Relief Association pension liability was 100.77% funded as of 12/31/10 based on the current $3,100 pension level. With the increase to $3,150, the fund is projected to be funded at 101.55% assuming no active requirements and standard investment earnings, and at 101.26% funded assuming two active retirements. Keis introduced the following resolution and moved its adoption: RESOLUTION NO. 2011 -2 -50 APPROVING A LITTLE CANADA FIRE RELIEF ASSOCIATION PENSION BENEFIT LEVEL OF $3,150 PER YEAR OF SERVICE EFFECTIVE IMMEDIATELY The foregoing resolution was duly seconded by Montour. Ayes (4). Nays (0). Resolution declared adopted. The City Administrator reported that it has been the City's practice to assess for the cost of improvements in the fall, after a project has been substantially completed. However, in the case of the Dianna Lane street reconstruction there is an outlot that that is informally governed by the Dianna Lane homeowners' association. Residents of Dianna Lane have requested the street assessment that would accrue against this outlot be divided equally and assessed against the Dianna Lane parcels. Given the possibility that this additional assessment for the outlot could be contested, the Administrator recommended that the assessment hearing be held at this time. If the assessment is contested, the City can delete the assessment and reassess the outlot directly. The City Administrator pointed out that bids have not been obtained for the Dianna Lane improvement, so actual project costs are not yet known. However, given the City caps the amount it assesses for street improvements, assessment costs are known. The Administrator also recommended that the interest rate for assessment balances certified to Ramsey County for collection over a ten year period be set at 5.25 The 2010 interest rate on assessment balances was 5 5