Agenda - Council - 08/13/2013 - Laserfiche WebLink

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Ramsey, Nowthen, St. Francis, Oak Grove, and Bethel, Minnesota Feasibility Study for shared or Cooperative Fire and Emergency Services Figure 15: Comparisons of Cost per Capita for Fire Protection and Emergency Services $160 $140 $120 $100 $30 $60 $40 $20 $p $137.83 Bethel Oak Grove Ramsey St, Francis National Minnesota Region Relief Associations One issue that could be a major factor in the decision to enter into a shared services or other cooperative services agreement between the fire departments concerns each agency's Fire Relief Association. A 2011 report issued by the Minnesota Office of the State Auditor found that 717 relief associations were in existence in Minnesota during 2009.1 Those 717 relief associations held nearly $403 million in net assets, which represents accrued benefits for 20,812 firefighters statewide. During 2009, relief associations received $15.4 million in fire state aid and received $7.8 million in municipal contributions. During that same year, $30.8 million in service pensions was paid out by 444 different relief associations. BFD, OGFD and SFFD participate in lump sum plans; at the appropriate time, eligible members receive a one-time payment from the association based on set criteria. RFD participates in a defined -contribution plan. A defined -contribution plan is always fully funded based on the fact that assets are always equal to liabilities. All assets are divided among plan members, and the value of each member's account rises or falls based on revenues and expenditures to or from the plan. The differences in the plans within the study region are identified in the following figure. 1 Financial and Investment Report of Volunteer Fire Relief Associations. March 2011. Emcrgrnry 5rrri rim Co.14 king it page 23