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Case #5: Contribution to the Fire Fighters' Relief Association Finance Officer Sandra Ashley stated that at the City Council workshop on January 12, 1991, the topic of the Fire Fighters' Relief Association's request for a City contribution in the amount of $17,500.00 was discussed. Due to budgetary constraints, the Council discussed the possibiliD, of a contribution in a future year. Miss Ashley stated that Councilmember Beyer had suggested the City might consider a special levy for 1991 payable in I992. Finance Officer Ashley explained that she reviewed the various levy authorizations and limitations provided by Statute and discussed the issue with staff from the Local Government Services Division of the Department of Revenue. She was informed that if the intention is to levy outside of the levy limit, the only levy identified as available to the City would be for unfunded, accrued liability such as might be incurred in a Fire Fighters' Relief Association Defined Pension Plan. She explained that since the Ramsey's Fire Fighters are suggesting a "Piece of the Pie" plan, the City would not incur an unfunded liability in any year. She also explained that currently the City does levy for fire services as part of the General Levy for General Fund Operations. This levy is subject to the levy limit. She explained her figures listed on the case sheet and stated that if the Council would find it helpful, the future value in benefits for City contributions at varying levels and staffing size could be determined for their review. Mayor Gilbertson stated that he had discussed with Dave Griffin, Ramsey Fire Chief, that the City is expecting funding "cuts" in 1991 and even bigger cuts in 1992 and 1993. He added that he did not a~ee with the Fire Department's request for contributions for the years 1988 and 1989. Fire Chief Dave Griffin stated that the budget for 1991 that was submitted to Council contained $20,000.00 as a contribution for the relief association and the abbreviations next to the line meant "typically funded from the Landfill Trust Fund". He asked if this is a possibility. Councilmember Cich stated that the start up monies (close to $500,000.00) came from the Landfill Trust Fund. Councilmember Peterson commented that at the workshop it was indicated that the Fire Department will be budgeted in the General Fund in the future. Chief Griffin stated that the amount of money could be negotiated each year. Mayor Gilbertson asked where the money is expected to come from - the homeowners? Would there be a special referendum? Finance Officer Ashley replied that the Fire Department's operating costs need to funded out of the City's General Fund. She added that the 1991 budget didn't include fuel or supplies. (The estimated fuel expenses would be approximately $4,000.00 to $5,000.00) Councilmember Beyer stated that maybe she was misunderstood when she said to put it on a lex'),, it's part of the overall levv. Miss Ashley stated that the levy is subject to levy limitations and whatever is allocated for the Fire Department would nm be there for other things. Mavor Gilbertson assumed everything is included in the taxes. Councilmember Beyer stated that it would be included, but separately ear-marked for the Fire Department. City Council/January 22, 1991 Page 7 of' 14