Laserfiche WebLink
515 Little Canada Road, Little Canada, MN 55117 -1600 <br />(651) 484 -2177 / FAX: (651) 484 -4538 <br />Email: cityhall @ci.little- canada.mn.us <br />To: Mayor Fahey & Members of the City Council <br />From: Joel Hanson, City Administrator <br />Date: November 19, 1999 <br />Re: Fire Relief Benefit Increase <br />MAYOR <br />Michael I. Fahey <br />COUNCIL <br />Beverly Scalze <br />Jim LaValle <br />Steve Morelan <br />Bob Pedersen <br />ADMINISTRATOR <br />Joel R. Hanson <br />The Little Canada Fire Relief Association is requesting an increase in their benefit level from $2,200 per <br />year of service to $2,500. As you may recall, we have a Six -Year Funding Plan to guide this type of <br />decision (a copy is attached for your review). While the increase proposed, as well as the one approved <br />in 1997, exceed the targeted range of our Funding Plan, they appear reasonable in light of benefit levels <br />of other departments (see survey attached) and the financial well being of the Relief Association. <br />However, the City can reopen discussions on this plan because benefit increases exceeded $50 in each of <br />the two years. <br />Attached are projections for the Relief Association based upon their desired benefit increases. You will <br />note the increase proposed does not require a city contribution above the $18,000 amount. (In 2001, no <br />city contribution would be required if benefits remain at the $2,500 level.) Further, the funding level is <br />at 116% after the increase proposed. I have modified these projections from the one prepared by the <br />Relief Association as follows: <br />♦ Increased State Aid Contribution to reflect 1999 actual amounts ($29,580) <br />♦ Revised Interest Earnings to allow only 1/4 of a year on assets to be paid out to retirees <br />versus 1/2 of a year. <br />At the Relief Association Board of Directors Meeting, Council representatives felt that the Funding Plan <br />needs to be redone in light of current financial projections. Therefore, I would recommend we approve <br />the increase as requested due to the strong financial position of the relief association, the benefit levels <br />of neighboring departments, and the fact no city contribution is required in 2001 at the $2,500 level. My <br />recommendation is conditioned upon no further increases until a new funding plan is devised and <br />approved by the LCFRA and the City. <br />CC: Joe Vitale <br />Page 52 <br />