2023.06.27 CC Packet - Laserfiche WebLink

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June 13, 2023 Page 3 of 7 Public Hearing None. Council Business 1. Consider Fire Relief Association Benefit Level Increase. City Manager Massopust indicated Public Safety Director Paetznick would be presenting this item to the Council. Public Safety Director Paetznick stated the Fire Relief Association is again providing updated financial projections to Council for benefit level increases to assure ongoing recruitment and retention of firefighting personnel for the City of New Brighton. Based on the funding formula from the Minnesota Office of the State Auditor, the $500 benefit level increase demonstrates a continued surplus for the retirement fund even when accounting for all firefighters, including full, partial, and nonvested, and deferred members. He reviewed the financials in further detail with the Council and recommended approval of the increase to the retirement benefit level by $500 for 2023. Councilmember Axberg asked if there were any guidelines around the percentage of funding that should be in place. She questioned how staff arrived at the increase of $500. Public Safety Director Paetznick stated there was no recommended guideline, but rather he looked at appropriate benefit increases to keep the fund at a healthy level. He explained the $500 increase was recommended given the 5% COLA increase for police and fire this year. He reported the Board looked at the increases that were approved by other fire relief associations along with their retirement benefit levels. Councilmember Axberg inquired if the City would have to make a contribution if the fund level to were to go below 100%. Public Safety Director Paetznick commented on the reporting formula and the assumed rate of return for the fund. He explained the board could recommend a decrease in the benefit level or a contribution would be required from the City if the fund were to drop below 100%. He discussed how the rate of return was assumed at 5%, which was generally on the low side. Mayor Niedfeldt-Thomas explained she attended a recent Fire Board meeting. She indicted the Fire Board went through a number of scenarios when approaching this request. She stated she supported the conservative approach of the team and noted she would be supporting the proposed increase. Motion by Councilmember Allen, seconded by Councilmember to Approve the Resolution to Authorize an Amendment to the New Brighton Firefighters’ Relief Association Bylaws to Increase the Retirement Benefit Level by $500 for Firefighters to $10,500 per year of service effective June 14, 2023. 5 Ayes, 0 Nays-Motion Carried 2. Consider Resolution Approving a Purchase and Sale Agreement for the Sale of City-Owned Property to United Properties Development LLC. City Manager Massopust indicated Director of Community Assets and Development Schlichting would be presenting this item to the Council. Director of Community Assets and Development Schlichting stated the New Brighton Exchange has become a showcase example of how to maximize the value of reinvestment dollars to bring quality living space and high paying jobs to a community, getting the project to the finish line was neither inexpensive or without risk, but the rewards have become clearer with each passing year. To fund this redevelopment, New Brighton Challenge Course. Public Hearing Council Business 1. Consider Fire Relief Association Benefit Level Increase. 2. Consider Resolution Approving a Purchase and Sale Agreement for the Sale of City- Owned Property to United Properties Development LLC.