HomeMy WebLinkAbout[04e] Fire Relief Contribution
Council Agenda Item 4e
MEETING DATE: March 19, 2018
AGENDA ITEM: Relief Contribution – Requested Action: Increase the annual
contribution from the current $ 2,000 per year of service per fire fighter to $ 2,100 per year of service per fire fighter
effective January 1, 2019.
SUBMITTED BY: Administration
BOARD/COMMISSION/COMMITTEE RECOMMENDATION: The Fire Board met with representatives of
the St. Joseph Relief Association to discuss the year of service contribution. Relief members presented an
illustration with contributions of area municipalities and St. Joseph is on the lower end. The Fire Board
recommended approval of an increase of $ 100 per year of service effective January 1, 2019. Therefore, effective
January 1, 2019 the retirement benefit for fire fighters will equal $ 2,100 per year of service.
PREVIOUS COUNCIL ACTION: August 2015 the City Council approved the increase from $ 1,800 to $ 2,000
BACKGROUND INFORMATION: Currently the retirement for the Fire Department is $ 2,000 per year of
service. The Fire Relief is requesting to increase that amount to $ 2,100 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 $ 2,100 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 following table illustrates the per year of service contribution for some of the area departments:
City of Waite Park $2,100.00 City of Sauk Rapids $5,000.00
City of Sartell $3,740.00 City of Cold Spring $2,055.80
City of St. Augusta $1,000.00 City of Rockville $2,120.00
The increase would become effective January 1, 2019.
BUDGET/FISCAL IMPACT: No impact for 2018
ATTACHMENTS: Request for Council Action
Appendix for the Bylaws
REQUESTED COUNCIL ACTION: Increase the annual contribution from the current $ 2,000 per year of
service per fire fighter to $ 2,100 per year of service per fire fighter effective January 1, 2019.
APPENDIX A
Effective January 2, 2019 the St. Joseph Fire Relief Association shall pay to each member of the St.
Joseph Volunteer Fire Department the sum of $ 2,100 for each year that the member has served as an
active member of the St. Joseph Volunteer Fire Department.