HomeMy WebLinkAbout[04d] Fire Relief Contribution Council Agenda Item 4(d)
MEETING DATE: August 31,2015
AGENDA ITEM: Fire Relief Contribution—Requested Action: Increase the
annual contribution from the current$ 1,800 per year of service per fire fighter to$2,000 per year of service per
fire fighter effective January 1,2016.
SUBMITTED BY: Administration
BOARD/COMMISSION/COMMITTEE RECOMMENDATION: The Fire Board had previously authorized the Fire
Chief to seek funding through the DNR Rural Fire Department Matching Grant Program for needed equipment.
The Department received a funding letter in the amount of$ 1,100 for which the Fire Board is recommending
acceptance.
PREVIOUS COUNCIL ACTION:
BACKGROUND INFORMATION: Currently the retirement for the Fire Department is$ 1,800 per year of service.
The Fire Relief is requesting to increase that amount to$2,000 per year. Their retirement is a separate fund and
by Statute has to be fully funded. So annually the Relief Association must prepare financial schedules prescribed
by the State to show the solvency of the fund. If the fund is not fully funding all the retirements then a municipal
contribution is required and that can vary.
The fund is self-sufficient and if the retirement contribution is increased to$2,000 per year,the fund will still be
fully funded and not require a municipal contribution. Looking to the next couple of years they don't anticipate
much of a change. A number of years ago the Fire Board agreed that any year a municipal requirement is not
needed,$3,000 will be added to the fund. This helps level the fund with interest rates going up and down. The
attached worksheet is a form used by the State to determine solvency. As can be seen from the attached form,
based on the most recent three year period,the fund could have supported an average$2,234 per fire fighter.
The increase would become effective January 1,2016.
BUDGET/FISCAL IMPACT: No impact for 2016
ATTACHMENTS: Request for Council Action
Benefit Worksheet
REQUESTED COUNCIL ACTION: Increase the annual contribution from the current$ 1,800 per year of service per
fire fighter to$2,000 per year of service per fire fighter effective January 1,2016.
2015 Maximum Benefit Worksheet (MBW-15)
Plan Name: Saint Joseph Fire Relief Association
Plan Type: Lump Sum
Enter data in columns A, B, C and D for each year requested.
--=�-- ---B--- --C-- D --E---
Fire State Aid and Active Members Per Year
Supplemental State Municipal 10%of in Relief Average
Aid Contribution Surplus* Association [(A+B+C)/D]
(From RF-14) (From RF-14) (SC-14 or Actaarial) (From RF-14)
2014 50,192 15,736 0 26 2,536
(From RF-13) (From RF-13) (SC-13 or Actuarial) (From RF-13)
2013 50,538 18,830 0 28 2,477
(From RF-12) (From RF-12) (SC-12 or Actuarial) (From RF-12)
2012 35,285 13,679 0 29 1,688
*If deficit for the year,leave blank.
Average available financing per active member for the most recent 3-year period: 2,234
(sum of column E divided by 3)
Maximum Lump Sum Benefit Level under Minn. Stat. § 424A.02, subd. 3 4,1 QO
Relief Officer Certification
On or before August 1,the average amount of available financing per active member for the most recent
three-year period was calculated in accordance with Minn. Stat. § 424A.02, subd. 3, and certified to the
governing body of the applicable qualified municipality.
Signature of Relief Association Officer(President,Secretary,or Treasurer) Date
First Name Last Name Officer Title