10-13-2004 Council Workshop Minutes

Home Browse Search

MINUTi'JS CITY COUNCIL OCTOI3I;R 13, 2004 Administrator Pelt it was a good idea to keep the plan in place to add objectivity Co the benefit increase disseminating process. The Administrator acknowledged that there have been no increases over the past three years. However, this has been true for most relief associations given losses that have been suffered in the stock market. The Administrator reviewed the data that he gathered supporting this fact. The Administrator noted that in preparing his analysis, used data from departments that are members of the Capitol City Mutual Aid Association. Of the 33 departments that belong to that association, 2 deparhmeuts are in PERA and 8 a~~e defined contribution or monthly plans and, therefore, not good comparisons in all financial areas. Therefore, he utilized the remaining 23 departments that have lump sum plans similar to Little Canada's. The Administrator indicated that another factor iu the analysis is State Aid revenues and how aid levels are determined. The Administrator gave a brief explanation of this issue. 7"he Administrator noted that investment income is a very important to the issue of benefit levels. H'there are losses in investments, the Fund has a reduced asset base which forces the City into mandatory contributions. "The Administrator reviewed a table which showed the impact on bereft Levels by adding an additional $100,000 to the Fund. The Administrator reviewed a ranked comparison of 2004 benefit levels, noting that Little Canada's pension level of $2,800 per year of service ranks 14°i of the 23 jurisdictions compared. The Administrator indicated that in doing his analysis it became apparent that one of the biggest factors in generating benefit levels is State Aid revenues. He noted on 'T'able VI that Little Canada receives $3.18 in State Fire Aid per capita which ranks 24°i of the 31 jurisdictions compared versus au average of $3.70. Ltowever, when measuring State Aid on a per fire fighter basis, we drop to 28°i place. Fw~thermore, our aid of $925 per fire fighter is less than half the average of $1,890. This is attributable to our department's complement for a city of our size. The Administrator reviewed Tables VIII and IX which show department ranking based on voluntary per capita contribution by cities. He noted that Little Canada's $15,000 contribution ranked at 3rd highest in per capita spending of the 28 jw~isdictions compared. "The Administrator noted that this table is based on 2001 contributions which was prior to poor stock market performance resulting in fund deficits. Vitale noted that in 2002 there are a lot more cities required to make conh~ibutions. The Administrator agreec9, noting that the requirement was the result oPfund deficits caused by poor investment performance. 2