Sauk Rapids Council increases firefighter pensions

by Dave DeMars

news@thenewsleaders.com

The Sauk Rapids City Council followed the advice of the finance department and approved firefighter pension increases at its Nov. 14 meeting.

The action was carefully laid out in a memo from Sauk Rapids Finance Director Jack Kahlhamer. In his memo, Kahlhamer noted the Relief Association Board had requested $4,700 per firefighter for each year of service, an increase of $400 per firefighter per year.

Kahlhamer’s concern was with over-promising pension payments and then defaulting on them, or putting the city in difficult financial straits. He cited Brainerd as a city that had run into difficulty in its pension payments as a result of losing large township contracts that helped to pay maintenance and pension costs for the firefighters.

Another area had to do with losses in pension value due to stock-market fluctuations. He pointed out in 2008, the pension fund lost $232,555 in market value, and the city contributed an extra $50,000 to the pension fund in 2012 to offset losses sustained in 2011.

The year-end 2015 value of the pension assets showed a net market value loss of $63,718, but Kahlhamer said the need for the city having to contribute additional funds can be reduced by not over-estimating proceeds from the market and maintaining a good funding ratio.

Kahlhamer reminded the council the pension benefit had been increased from $3,750 to $4,300 per firefighter in December of 2014. With that in mind and taking into account the volatility of the market with its large swings, the finance committee recommended and Kahlhamer concurred with a $200 increase. That would give each firefighter $4,500 for each year of service.

Kahlhamer also pointed out even if things should turn sour in the market after 2017, the proposed increase could be sustained while enduring a 5 percent drop in market value and still be nearly 100 percent funded.

During the mayor’s communications portion of the meeting, the council heard from the 2016/2017 Sauk Rapids Community Ambassadors Allyson Walz and Sydney Burk. Clo Meyer, a third ambassador, was unable to attend.

The Community Ambassador program is an education program designed to use the talents of young high-school-aged women as ambassadors for the city. It focuses on building confident women through city involvement and is based on service and participation.

The ambassadors represent the city in a variety of parades in other surrounding towns throughout the year, attend community functions such as ground-breaking and ribbon-cutting ceremonies, and they help to represent the city in the best light possible.

“The ambassadors not only represent the community well,” Sauk Rapids City Administrator Ross Olson said, “but they go one step further and make a real effort to learn about the community.

Other business

● Approval of the 2017 water-supply plan update completed by city engineering firm SEH.

● Approval of 2016 plumbing-and-mechanical contractors license.

● Acceptance of a $1,000 donation to the police and fire departments from Kwik Trip Inc.

● Approval of the police chief’s discretion to renew the agreement between the State of Minnesota and the Sauk Rapids Police Department for use of Department of Defense equipment.

● Approval of the audit proposal for the 2016 audit.

● Approval of using the liquor-store profits to help fund the purchase of an air rescue boat.

● Approval of a resolution for municipal state-aid street-advance payment.

● Approval of the purchase of a 4-in-1 car camera system for police vehicles.