5. Staff Report Relief Cost AnalysisAt the August 7th Work Session, Council approved a cost analysis for a potential
increase to the Fire Relief Benefit Level. The analysis follows this report.
Staff Report
Date of Meeting: August 7, 2019
To: City Council
From: Mike Hinz, Fire Chief
Re: Cost Analysis of Fire Relief Benefit Level
Background:
Scandia is part of the state wide volunteer firefighter retirement plan. On July 26th we received a
letter from the state telling us our plan has a surplus. The letter also gave a recommendation to
request a cost analysis of a benefit level change from $2,800/year of service. Their review stated
we could increase to $3,500/year of service. This account is funded by the Fire state aid we
receive and interest earned on the assets.
Issue:
Should the city request a benefit level change cost analysis?
Proposal Details:
Scandia Fire Relief Association is asking the city to request a cost analysis of our benefit level in
the amount of $3,300, $3,400 & $3,500.
Fiscal Impact:
There is no cost to have the analysis done by the state.
Options:
(1) Direct staff to submit the request for cost analysis to the state
(2) Do nothing
Recommendation:
Option (1).