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HomeMy WebLinkAbout6.i. Fire Department Pay DecreaseCITY OF ROSEMOUNT EXECUTIVE SUMMARY FOR ACTION CITY COUNCIL MEETING DATE: December 18, 2001 AGENDA ITEM: Fire department pay decrease AGENDA SECTION: Consent AGENDA NO: o PREPARED BY: Scott Aker, Fire Chief , .,: ATTACHMENTS: None APPROVED BY: At the present time the fire department receives $8.25 per hour for responding to emergency calls. They also receive $6.00 per hour for training sessions. Effective January 1, 2002, the fire department would like those amounts decreased to a $2.00 stipend per event. Instead of being paid by the hour the members would each receive a $2.00 stipend for responding to fire calls, rescue calls and also for attending the 3 hour drill sessions.. Other events such as an open house, hall cleaning nights, fire department meetings, committee meetings and the like, which are currently paid at one of the two above mentioned rates, would be one stipend per event. In switching to this stipend method of payment, rather than an hourly method, the fire department would be able to reduce salaries by approximately $80,000 per year at the current rates of pay. The savings would be approximately $100,000 per year if the fire department had pursued a salary increase to keep them competitive with surrounding departments of our size. We would then request that the savings be paid to the relief association. This increase in revenue for the relief association will allow them to raise retirement benefits and make them more attractive to retain members and be competitive with surrounding communities. That payment to the relief association along with their current payment and state aid would take place in the later part of the year 2002 with council approval. RECOMMENDED ACTION: MOTION to reduce the Rosemount Fire Department pay from the salaries as listed above to a $2.00 stipend per event with the intent being that the savings would later be approved for the relief association. COUNCIL ACTION: I I -. r Page 1 of 1 Jentink,Linda From: Burt,Tom Sent: Wednesday, January 09, 2002 4:49 PM To: Jentink,Linda Subject: FW: Relief Association City Contribution Include this with the PO for finance. Thanks T. - - - -- Original Message---- - From: Scott Engelmann [mailto: Scott. Engelmann@peregrinecapital.com] Sent: Wednesday, January 09, 2002 12:48 PM To: Tom Burt (E -mail) Cc: Jerry Noll (E -mail) Subject: Relief Association City Contribution Tom, I am requesting on behalf of the Rosemount Relief Association the first installment of the city contribution to the Relief Association. Jerry Noll mentioned that he discussed this with you and came up with the amount of $94,000 as the first installment to be paid in early February, and then the second installment of $36,000 to be paid at the normal time in the fall (usually September or October). The reason that we are requesting this contribution in early February is to split up the amount of money we are depositing into our investment at any one time. Because of the unpredictability of investments, if it is possible it is better to deposit smaller amounts of money over time instead of one big chunk all at once. By depositing the $94,000 now it would split up the amount of money being invested into two fairly even chunks of money (in fall we would get the $36,000 from the City and also our State Aid contribution). If the contribution of $94,000 is authorized to be sent to the Rosemount Relief Association in early February, the check should be filled out exactly like it has in the previous years and given to. Mark Evenson and he will deposit it into the investment accounts. If you have any questions or would like to discuss this further I can be reached at 612.343.7651 during the day, or 651.322.5692 in the evenings, or you can reply to this email address. Thanks Scott Engelmann Secretary Rosemount Relief Association 1/10/2002