IV.6. Resolution Increasing the Annual Benefit Payout for the Hopkins Fire Department Relief Association; Specken CITY OF HOPKINS
City Council Report 2025-148
To: Honorable Mayor and Council Members
Mike Mornson, City Manager
From: Dale Specken, Fire Chief
Date: October 7, 2025
Subject: Annual Benefit Increase for the Hopkins Fire Department Relief
Association
_____________________________________________________________________
RECOMMENDED ACTION
MOTION TO Approve Resolution 2025-059 Increasing the Benefit Payout for the
Hopkins Fire Department Relief Association.
OVERVIEW
On September 10, 2025 the Hopkins Fire Department Relief Committee unanimously
approved increasing the annual benefit payout to $13,500. This decision was based on
the Association’s strong financial position, with a current coverage ratio of
approximately 131% (total portfolio value to liabilities). Projections assume 5% annual
portfolio growth, flat state aid and city contributions, and auditor-provided liability
estimates. The Relief Committee determined that the increase keeps the fund
financially stable while moving payouts closer to levels offered by neighboring
departments.
SUPPORTING INFORMATION
•Hopkins Fire Department Relief Association Memo
•Resolution 2025-059
Fire Department
Hopkins Fire Department Relief Association
To: Hopkins City Council
Re: Supporting Documentation for Annual Benefit Payout
At our most recent HFD Relief Committee meeting on September 10th, 2025 – we unanimously approved an
increase to our annual payout to $13,500.
This increase was proposed due to the strong financial position of the portfolio, relative to our current and
expected liabilities over the next couple of years.
Our current coverage ratio (total portfolio value / liabilities) sits at ~131%. The Relief Committee utilized the table
below to highlight the expected coverage ratio over the next few years, inclusive of the following assumptions:
- Portfolio growth of 5% a year (state mandated assumption)
- Flat state aid and Hopkins city contribution
- Current and future liabilities from our auditor
At an increased annual payout of $13,500, the Relief Committee believes the payout achieves a level that is
getting closer to competitive versus our surrounding departments, while maintaining sufficient prudence relative
to forward liabilities.
Hopkins Fire Department - Relief Association
Paul Farrell (President)
Adam Freeman (Vice President)
Matt Paulson (Secretary)
Derek Mann (Treasurer)
Jared Niebuhr
Brad Schilling
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 2025-059
RESOLUTION INCREASING THE ANNUAL BENEFIT PAYOUT FOR THE HOPKINS
FIRE DEPARTMENT RELIEF ASSOCIATION
WHEREAS, the City of Hopkins Fire Department Relief Association Committee
unanimously approved increasing the annual benefit payout to $13,500; and
WHEREAS, the City of Hopkins provides the Relief Association with a set amount of
funding each year and has agreed to allow the Relief Association to determine the
benefit amount as long as no additional City funds are requested; and
WHEREAS, according to Minnesota state law, the Relief Association can maintain the
new benefit amount without any additional City contributions,
NOW THEREFORE BE IT RESOLVED, that the City Council of the City of Hopkins
hereby approves an increase to the Hopkins Fire Department Relief Association annual
benefit amount to $13,500.
Adopted by the City Council of the City of Hopkins this 7th day of October, 2025.
By:___________________________
Patrick Hanlon, Mayor
ATTEST:
_______________________________
Amy Domeier, City Clerk