HomeMy WebLinkAbout6.g. Fire Relief Association Retirement Benefits Adjustmentt
CITY OF ROSEMOUNT
EXECUTIVE SUMMARY FOR ACTION
CITY COUNCIL MEETING DATE: DECEMBER 15, 1992
AGENDA ITEM: ROSEMOUNT FIRE DEPARTMENT RELIEF
AGENDA SECTION:
ASSOCIATION BENEFITS ADJUSTMENT
NEW BUSINESS
PREPARED BY: STEPHAN JILK, CITY ADMINISTRATOR
AGENDAII_Lf
ATTACMdENTS: LETTER OF AUGUST 17, 1992
APP OVE BY:
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The Fire Department Relief Association is the organization that funds the
membership retirement benefit program. The sources of funds for these
benefits are
1. Payments from the State of Minnesota from the collection and
distribution of 20 of the fire insurance premiums paid in the State.
2. Investment returns on the investment of Relief Association Reserve
Funds.
3. Contributions.
4. A general tax levy by the City.
At the present time the Association benefits are set at $1400 per year of
service. This payment is paid out according to rules established by the
Association after approval by the City Council. The City Council must
approve this benefit rate since state law places responsibility on the City
to fund adequately and ultimately the retirement program.
The last time this rate was adjusted was in 1990 and after reviewing other
surrounding city rates we find that Rosemount is low at $1400 per year.
The Relief Association is requesting an increase of the $1400 per year to
$1600 in 1993, $1800 in 1994, and $2000 in 1995. To support this increase
the City's estimated tax support is set at $26,000 for 1993, $35,000 for
1994, and $40,000 for 1995. Sufficient funds to support a $1600 rate in
1993 is budgeted. My recommendation is to approve the 1993 rate of $1600
and to review the funding needs for 1994 and 1995 in the 1994 budgeting
process.
RECOMMENDED ACTION:
Motion to approve the rate of $1600 per year of service for the
Fire Relief Association benefits for 1993.
August 17, 1992
Stephan Jilk
City Administrator
2875 --145th Street West
Rosemount, Minnesota
RE: Relief Association Benefits Increase
The Rosemount Fire Relief Association is requesting an increase of
benefits of approximately 1k% of the total levy which would support
an increase of:
$1,600 effective January 1, 1993
$1,800 effective January 1, 1994
$2,000 effective January 1, 1995
The following is a list of cities around the city of Rosemount
and their benefits scheldule:
Apple Valley $3,600 per year of service after 20 years
Eagan $3,375 per year of service after 20 years
Farmington $1,200 per year Of service after 20 years
Hastings $2,200 per year of service after 20 years
Inver Grove Heights $2,000 per year of service after 20 years
Lakeville $3,250 per year of service after 20 years
Sincerely,
Bob Turek
Rosemount Fire Relief Association