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HomeMy WebLinkAbout04.21.25 Work Session Packet AGENDA Council Work Session Meeting 5:00 PM - Monday, April 21, 2025 Farmington City Hall Page 1. CALL TO ORDER 2. APPROVE AGENDA 3. DISCUSSION ITEMS Farmington Firefighters Relief Association Pension Options for 2025 To choose one of three options for the firefighter's relief association pension for 2025. Agenda Item: Farmington Firefighters Relief Association Pension Options for 2025 - Pdf 2 - 3 4. CITY COUNCIL COMMITTEE UPDATE 5. CITY ADMINISTRATOR UPDATE 6. ADJOURN Page 1 of 3 COUNCIL WORK SESSION AGENDA MEMO To: Mayor, Councilmembers and City Administrator From: Matt Price, Fire Chief Department: Fire Subject: Farmington Firefighters Relief Association Pension Options for 2025 Meeting: Council Work Session - Apr 21 2025 INTRODUCTION: Have a discussion on three different pension options for the fire relief association. DISCUSSION: Below are three options that have been carefully built and discussed between the Fire Chief and the President of the Relief. All options have been verified to be financially stable and acceptable. We currently are at 132% funded. Option A A raise of $500.00 a year for the next five (5) years. 2025: $10,000 2026: $10,500 2027: $11,000 2028: $11,500 2029: $12,000 The vesting terms will remain 10 years partial (60%) and 20 years full (100%) This provides a clear outlook for amounts/raises for the membership for the next five years. This amount will raise the liabilities by only approximately $22,000 each year. Keeps percent funded around 120-125%. Chief discussion: Option B A raise of $2,000 bringing the new amount to $11,500. This amount would be locked in and NO raise discussion for the next five (5) years or until the percent funded is 135% or more. This amount would bring the percent funded to 120%. Chief discussion: Page 2 of 3 Option C We drop the vesting terms to 7 years partial and 15 years full vested. The schedule would look like this: Year 7: 40% Year 8: 45% Year 9: 50% Year 10: 55% Year 11: 60% Year 12: 70% Year 13: 80% Year 14: 90% Year 15: 100% We also raise the pension $1,000 for a new amount of $10,500. This would bring us to a percent funded of 122%. Chief discussion: BUDGET IMPACT: Does not impact the budget ACTION REQUESTED: To choose one of three options for the firefighter's relief association pension for 2025. Page 3 of 3