11-24-2004 Council Agenda - Laserfiche WebLink

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CCG9l (4r+1 i 2CL /4 C�J LJ'6 cZ 5 l 5 Little Canada Road, Little Canada, MN 55117 -1600 (651) 766 -4029 / FAX: (651) 766-4048 www. el. li tale- canada.mn.us MEMORANDUM MAYOR Michael I. Fahey COUNCIL Jim LaValle Matt Anderson Rick Montour Bill Blesener ADMINISTRATOR Joel R. Hanson TO: Mayor Fahey, Members of the City Council, & Members of the LCFRA FROM: Joel Hanson, City Administrator DATE: November 19, 2004 RE: Fire Relief Workshop At our last workshop involving the Fire Relief Association, some additional information was requested. (Please bring your earlier report with you to have all necessary information.) Attached is the following: ✓ Summary Spreadsheet showing Departments in the Capitol City Regional Mutual Aid Association that provided only fire service. ✓ Revised projections prepared by HLB Tautges Redpath, Ltd. with the revised assumptions consisting of 5% interest earnings, state aid at 2004 level, the two most senior members retiring each year, and city contributions of $15,000, $25,000, and $40,000 per year. You will note that two retirements per year would slow down projected increases due to the reduction in fund balance available to earn income upon. If this is truly reality, then it may be appropriate, However, it is important to keep in mind that we set up our parameters to be more conservative than what is establish via Schedules 1 & II. If we adopt an even more conservative approach, it may prevent an increase in one year while still building fund balance (a combination of higher investment performance than 5 %, less than two retirements in a year, or increasing state aid payments). An increased fund balance will help with increases in a later year while also giving more protection to the City. ✓ The investment policy of the Inver Grove Heights Relief Association. In reviewing the spreadsheet information, Bayport's information was revised based on a conversation I had with their City Administrator. Instead of serving only Bayport's 4000 people, I discovered they also covered two townships and Oak Park Heights. This increased the population of their service area to over 10,000 people.