3.2. SR 07-16-2001MEMORANDUM
**3.2.**
TO: Mayor and Council
FROM: Lori Johnson, Finance Director
DATE: July 16, 2001
SUBJECT: Consider 2002 Benefit Level for Elk River Fire Relief Association
The Elk River Fire Relief Association board of trustees met recently to discuss the per year
of service benefit level for 2002. Each year the Relief Association is required to present its
request for an increase in the benefit level to the City Council for action prior to August 1.
The Relief Association is not requesting an increase in the benefit level for 2002. The
current benefit of $3,575 per year of service would also apply to benefits paid in 2002.
Attached is a letter from Mark Richardson, Relief Association treasurer, explaining why the
Relief Association is not requesting an increase. To limit the City's financial commitment,
the Relief Association has consistently set its benefit at an amount that does not require a
City contribution. However, the City has continued to make annual, voluntary
contributions; these contributions are included in the fire department budget. The 2001
budget includes a voluntary contribution of $22,650 to the Relief Association.
Because no change in the benefit is being recommended for 2002, no Council action on the
benefit level is required. Mayor Klinzing and I are members of the Relief Association board
of trustees and are available to answer questions you may have regarding the 2002 benefit.
Action Requested
The Council is asked to authorize the $22,650 contribution to the Elk River Fire Relief
Association.
llAver
Fire Department
415 Jackson Avenue
Elk River, MN 55330
TO:
FROM:
DATE:
SUBJECT:
Elk River City Council
Elk River Firemen's Relief Association
July 5, 2001
Annual Benefit Amount
The Elk River Firemen's Relief Association (Association) has gone before the Elk River
City Council in previous years to ask for an increase in the annual benefit level for its
members. The growth of the Association fund supported these increases. This year the
anticipated increase did not come to fruition, due to various factors in the marketplace.
The Association is currently at a benefit level of $3575 per year of service. At this benefit
level, there is no mandatory city contribution. In order to avoid the possibility of a
mandatory contribution, the Association has decided not to ask for an increase in the
benefit level for the 2002 calendar year. The benefit level will remain $3575 for 2002.
The Association anticipates that t~eezing the benefit level at $3575 for this year will allow
for a greater surplus in the future, which will warrant an increase in the benefit level for
the 2003 calendar year without a mandatory city contribution.
If you have any questions, please contact me at (763) 441-4919
Thank you, ~
Mark P. Richardson, Treasurer
Phone: 763.441.4919
Fax: 763.4413299
www. ci.elk-rivenmn.us