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MAYOR <br />Michael I. Fahey <br />COUNCIL <br />Beverly Scatze <br />Jim LaVaile <br />Matt Anderson <br />Rick Montour <br />515 Little Canada Road, Little Canada, MN 55117 -1600 ADMINISTRATOR <br />(651) 766 -4029 / FAX: (651) 766 -4048 Joel R. Hanson <br />Email: eityhall@ci.little- eanada.mn.us <br />MEMORANDUM <br />TO: Mayor Fahey & Members of the City Council <br />FROM: Joel Hanson, City Administrator <br />DATE: March 23, 2001 <br />RE: Agreement with Fire Relief Association <br />Attached is the proposed agreement between the City and the Little Canada Firemen's Relief Association <br />that will govern future benefit increases for the association. This is essentially the same document we <br />reviewed last October. The substantive changes are as follows: <br />♦ The City's annual contribution has been fixed at $15,000 per year. (As you recall, we <br />reduced the City's contribution from $18,000 as part of the 2001 budget process.) It is <br />my understanding the Association is comfortable with the new amount, subject to the <br />understanding we will revisit the issue should benefit levels not remain competitive.) <br />♦ The funding ratio needs to stay above 100% if a benefit increase is proposed. (This was <br />at 105% in last draft.) This change should be acceptable, as we are not allowing deficit <br />funding to occur. Deficit funding is the factor that will trigger "Required City <br />Contributions ". <br />This plan is very similar to the previous agreement we have been working under. With solid financial <br />performance by the Association, it should provide for steady benefit increases. It also protects the City <br />from surprise "Required Contributions" in addition to reducing our annual contribution. <br />The plan does not incorporate comparison parameters with other departments as was contemplated last <br />fall. It is my understanding the survey information we have previously reviewed will be done in the <br />future on an as needed basis. Judgements as to appropriateness of this information will be made at that <br />time. Furthermore, I believe one of the driving forces to include that data in this agreement related to the <br />decreased City support. Now that the Association is comfortable with the new amount, that issue has <br />been eliminated. Also, both entities know that our overriding goal is to remain "appropriately <br />competitive ". <br />The Relief Association Board of Directors recommended its adoption. I would concur. <br />Cc: Joe Vitale <br />PAGE 7 <br />