HomeMy WebLinkAbout2.a. Firefighter Compensation
EXECUTIVE SUMMARY
City Council Work Session: December 3, 2019
AGENDA ITEM: Firefighter Compensation AGENDA SECTION:
Discussion
PREPARED BY: Logan Martin, City Administrator
Jeff May, Finance Director AGENDA NO.: 2.a.
ATTACHMENTS: 2019 Fire Department Comparisons APPROVED BY: LJM
RECOMMENDED ACTION: Discuss the City’s compensation package for Firefighters and provide
feedback.
BACKGROUND
Based upon direction received from the Council at its work sessions this summer, staff would like to continue
a discussion on the overall compensation package that the City provides to its Firefighters. As the Council
is aware, the City operates under a “paid on call” Fire Department, meaning that officers get an hourly rate
for responding to calls, attending training, and performing ancillary duties. Currently, Rosemount
Firefighters are paid $12 per hour for calls, $10 per hour for training. The average shown on the attached
list of comps is $14.04
Secondly, members of the Fire Department receive a retirement benefit based on their years of service. The
Fire Relief Association, which manages the pension funds for our firefighters, has worked closely with the
City to remain competitive in the pension compensation offered to our staff. In August, the Council agreed
to increase that annual rate to $7,400 per year of service. The average shown on the attached list of comps
is $7,344.
Relief Association
As the Council will recall, the City worked with the Relief Association in 2015 to reduce the City’s annual
contribution to the Relief Fund from $171,000 annually to $30,000. This allowed the City to reduce its levy,
and also led to the development of a five-year plan whereby an annual retirement benefit increase of $100
per year would be considered, up to the Relief Association’s goal of $7,500 per year. A fund balance
requirement of at least 120% coverage was also an agreed upon component of this plan, as the fund needs
to be able to support its future liabilities. Currently, reports indicate that the Relief Fund will be 131% funded
after accounting for the 2020 increase.
In August, representatives from the Relief Association presented a new proposal going forward, which
would be more directly tied to the performance of their investments and their State-mandated funding ratio.
Based on feedback received from Council and staff at that time, the Relief Association has worked to update
their proposal. Representatives from the Association will be at the work session to discuss this issue.
Wages
Staff understands that hourly compensation is also an important part of the compensation offered to the
Firefighters. Based on feedback received at the September work session, staff would offer the following
wage progression to ensure our staff remains competitive in the region.
2
The below table shows a $1 per hour increase in 2020 and 2021 to allow the group to more quickly achieve
the average wage of our comporables. Additionally, staff would propose that the Firefighters receive the
same cost of living increase provided to other staff. The model below shows a 2.75% COLA from 2021-
2026 for demonstration purposes. This could ensure that wages don’t become artificially “frozen” for long
spans of time, but rather will remain competitive.
2020 2021 2022 2023 2024 2025 2026
$ 13.00 $ 14.00 $ 14.39 $ 14.78 $ 15.19 $ 15.60 $ 16.03
Additional information and a broader list of comps can be provided during the discussion. Staff requests
Council direction on this item, to allow for formal action to occur prior to the end of the year.
RECOMMENDATION
Discuss proposal and provide direction.
2019 Compensation Fire Relief Annual City
Total Operating Per Hour Beneft Amount Contribution
City Budget (If Paid-On-Call)(Per Year of Service)To Fire Relief
Apple Valley $1,963,642 $16.50 $7,000 $255,233
Burnsville *$7,551,808 n/a n/a n/a
Eagan **$4,288,100 $13.00 $8,261 $34,715
Farmington $1,267,885 $12.88 $7,500 $150,000
Hastings **$1,823,522 $13.60 - $15.65 $6,100 $0
Lakeville ***$2,034,937 $13.00 - $18.00 $8,395 $0
Rosemount $453,000 $12.00 $7,400 $30,000
South St. Paul ****$2,467,945 n/a n/a n/a
West St. Paul ****$2,467,945 n/a n/a n/a
Chanhassen $1,020,000 $13.39 $6,800 $60,000
Cottage Grove $1,183,485 $14.75 $6,000 $0
Prior Lake *****$933,000 $12.20 $8,500 $20,000
Savage $813,689 $14.92 $6,074 $184,514
Shakopee ******$2,272,100 $15.30 $8,750 $0
Avg= $14.04 Avg= $7,344 Avg= $66,769
* Burnsville has a Full-Time department so columns 2, 3 & 4 are not applicable
** Eagan & Hastings have part Full-Time and part Paid-On-Call
*** Lakeville's benefit for 2020 will go from $8,395 to $9,195
**** South St. Paul & West St. Paul shares a full-time department called the
South Metro Fire Department so columns 2, 3 & 4 are not applicable
***** Prior Lake's compensation for 2020 is proposed to go from $12.20/hr to $14.10/hr
****** Shakopee's budget reduced by State Aid pass through of $258,000
2019
Fire Department Comparisons
O:\taxation\TNT\2016\2.a. Firefighter Compensation - Attach 1.xlsx