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Office of: <br />JOEL R. HANSON, Administrator <br />515 Little Canada Road <br />Little Canada, MN 55117 <br />612- 484.2177 <br />FAX: 612- 484 -4538 <br />CITY OF LITTLE CANADA <br />RAMSEY COUNTY, MINNESOTA <br />MEMORANDUM <br />TO: Mayor Fahey and Members of the City Council <br />FROM: Joel Hanson, City Administrator <br />DATE: September 7, 1990 <br />RE: Firemen's Relief Association Benefits Increase <br />MAYOR <br />Michael Fahey <br />COUNCIL <br />Beverly Scalze <br />Bill Blesener <br />Rick Collova <br />Jim LaValle <br />Bob DeBace will be present at Wednesday's meeting in his capacity as <br />treasurer of the Firemen's Relief Association. The Relief Association's <br />Board of Trustees and Membership has recommended an -increase in their <br />maximum benefits per year of service for a fully vested member from $1,600 <br />to $1,800 per year. It is my understanding, based on the conversation I <br />had with Mr. DeBace, that at the end of 1990 the Relief Association will <br />still be 93% funded after this benefit increase. <br />The only concern I have regarding this matter relates to budgetary <br />issues. Specifically, as part of our overall budgetary review process, <br />one item I am asking the Council to look at is the discretionary levy made <br />on behalf of the Relief Association which approximates the yearly Fire <br />State Aid amounts. This figure is approximately in the range of $20,000. <br />Assuming our Relief Association's benefits level is comparable to that of <br />other area relief associations, the Council could consider reallocating <br />those funds to other areas of the City depending on priorities. If this <br />option were to be considered, we should address the financial impact which <br />decision would have upon this and future benefits increases. <br />I would like it understood that I am in no way trying to undermine the <br />recognition the Council has given the Fire Department and its members for <br />their dedicated service as evidenced by this financial commitment. <br />However, .I do feel it is my responsibility to point out any potential <br />areas where the utilization of dollars could be reconsidered. <br />Therefore, it is my recommendation that the Council consider withholding <br />final action on this matter pending review of the financial implications <br />of this transaction pursuant to any potential budgetary modifications. My <br />recommendation is based on the fact that by postponing a decision, no <br />negative consequences occur to any member of the Department unless they <br />were planning an immediate retirement. <br />JRH:kpv <br />cc: Frank Graczyk <br />Bob DeBace <br />Page 3 <br />10 <br />