04-12-2017 Council Packet - Laserfiche WebLink

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Fire Relief Funding/Benefit Increase Parameters The Little Canada Fire Department and the City of Little Canada hereby agree to the following parameters to govern the annual contribution to the Little Canada Fire Relief Association and the methodology by which benefit increases shall be granted for the period of 1/1/2015 through 12/31/2019. Those parameters are as follows: • City Contribution of $31,000 for 2014. • City Contribution of $31,000 per year for 2015 through 2019. • There will be no inflationary adjustments to City Contribution through 2019 given this represents more than a 100% increase in funding ($15,000 to $31,000). • Benefit Increases shall be granted as follows: 1. Benefit increase calculations shall be done once per calendar year based as close as possible to January 1st of each year of this agreement. 2. Any increases granted shall be retroactive to January 1 of the calculation year or will be effective as soon as possible thereafter in that calendar year if retroactivity is not allowed pursuant to State Statutes. 3. To achieve a benefit increase, the proposed increase will be applied as indicated on Exhibit A attached hereto. This calculation will utilize the previous year’s fund balance as of 12/31/xx, and that year’s actual investment returns, state aid payments, and administrative costs will be applied with a $31,000 city contribution. Using the actual numbers previously described, the new benefit level will be applied to the calculation. Once applied, the funding level cannot fall below 110%. If 110% or above, the increase will be granted. If below 110%, no increase will be granted for that benefit level. • Either party can terminate this provision of the Fire Department Contract for any reason by written notice made prior to July 1 st each year the agreement is in effect with the termination to be effective on January 1st of the following calendar year, unless a shorter notice provision is mutually agreed to. • The goal of this agreement is to provide steady and sustainable benefit increases to the Little Canada Fire Relief Association while avoiding volatility in the levy requirements for the City due to the retirement of deficits. Both parties acknowledge that the investment performance is beyond the control of either party and poor investment performance will likely result in no benefit increases. • It is understood that as a condition of this agreement, the City will provide any required contribution for deficit retirement in excess of the $31,000 noted above based upon State Form SCxx (xx represents the last two digits for the year in question).