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515 Little Canada Road, Little Canada, MN 55117 -1600 <br />(612) 484 -2177 / FAX: (612) 484 -4538 <br />MEMORANDUM <br />TO: Mayor Hanson & Members of the City Council <br />FROM: Joel Hanson, City Administrator <br />DATE: December 3, 1993 <br />RE: Fire Relief Update <br />MAYOR <br />Raymond G. Hanson <br />COUNCIL <br />Beverly Scalze <br />Jim LaValle <br />Steve Morelan <br />• Bob Pedersen <br />ADMINISTRATOR <br />Joel R. Hanson <br />Attached for your review is a copy of a letter I sent to <br />Krista Boston of the State Auditor's office regarding the <br />impact of the new law relative to fire relief benefit <br />levels. Based on the information I obtained, it appears <br />that the current benefit level of $2,050 per year of <br />service is grandfathered in. However, no future benefit <br />increase can be made until compliance with the new schedule <br />for lump sum benefits based on average available financing <br />per active firefighter is complied with. Given that <br />information, how do we approach funding of the Little <br />Canada Fire Relief Association? <br />In my opinion, our approach should be based on what is a <br />reasonable level for fire relief benefits. As we know, our <br />current benefit level is competitive with those of <br />surrounding fire departments as well as similar sized <br />departments. As a result, one could take the approach that <br />other departments will face the same capitation limits that <br />we have experienced and therefore the pressure to increase <br />benefits will not exist. In that event, we only need to <br />provide enough money to maintain the current benefit level <br />into the future. Based on past projections, that amount <br />appears to be approximately $12,000 per year. <br />Another approach would be based on the assumption that <br />other departments will not be subjected to the same <br />capitation problem we are experiencing. Therefore, <br />pressure to increase benefits may exist into the future. <br />If this is the case, we may want to plan accordingly to <br />even out future City contributions. To obtain the next <br />benefit level of $2,100 per year of service, $1,134 of <br />income per active firefighter is needed. <br />Page 33 <br />