6.1. SR 07-09-2012REQUEST FOR ACTION
TO ITEM NUMBER
~Iavor and Cirn Council 6.1
AGENDA SECTION MEETING DATE PREPARED BY
~Crork Session ulv 9, 2012 Tim Simon, Finance Director
ITEM DESCRIPTION REVIEWED By
annual Fire Relief update Gal Portner, Cinr administrator
REVIEWED BY
ACTION REQUESTED
No action is required.
BACKGROUND/DISCUSSION
~nnuallv, the Elk River Fire Relief board provides an update to Council on benefit levels, funding ratios,
and dear-to-date investment ret«rns. Several board members will be in attendance as well as John Rudi,
an investment advisor from The Parr ~1IcI~iight ~~"ealth ~1lanagement Group of ~~ells Fargo advisors.
The Elk River Fire Relief association, prior to august 1 of each dear, is required to certif~~ to the cite the
required municipal contribution for the following ~~ear. also, a request for an increase iii per dear of
sei-~-ice pension amount for the nett near must be acted on by the Council before august 1. Given the
current market conditions and funding ratio, the Elk River Fire Relief association has requested no
increase in benefit level for 2013.
The Elk River Fire Relief association has assumed a rate of ret«rn on investments of five percent for
2012 in the form SC-12 which is certified to the State auditor's office. The rebel's investment advisor,
the Parr ~IcI~iight R'ealth Management Group of R'ells Fargo advisors, recommended the lire percent
based on the 60"'o equities and -IO" ~o bond portfolio. ~s of June 30, 2012, the rate of retl~rn on
investments is 3.7 percent.
wear 12/31/2011 12/31/2010 12/31/2009 12/31/2008 12/31/2007
Funded Rate 89.U"'o 91.3°'0 872"'0 70.~~"/0 11-4.7°'0
FINANCIAL IMPACT
Based on in~-esrinent retl~rns, the 2013 required city contribution will be under the X30,000 the cifi has
contributed in the past few Bears, ezcept iii 2011 when it was $38,300. The X30,000 is included in the Fire
administration Budget for 2013.
ATTACHMENTS
None
ID-Ct1011 Motion by Second by Vote
PUMEREU A1'
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