Laserfiche WebLink
<br />Current Benefit Level <br />Assets-12/31/2019 $2,118,408 <br />Liabilities 1,823,013 (Based on Current Benefit Level of $3,940) <br />Surplus $295,395 116% <br /> <br />With Benefit Increase to $4,195 <br />Assets-12/31/2019 $2,118,408 <br />Liabilities 1,928,140 (Based on Proposed Benefit Level of $4,195) <br />Surplus $190,268 110% <br /> <br />20% loss in asset balance @ $4,195 <br />Assets $1,694,726 <br />Liabilities 1,928,140 (Based on Proposed Benefit Level of $4,195) <br />Surplus $(233,414) <br /> <br />Required Contribution Calculation: <br /> Normal Costs $125,850 <br /> Administrative Costs 8,774 <br /> Amortization of deficit 23,341 <br /> 157,965 <br /> <br /> State Aid $60,478 <br /> 5% Return on Assets 84,736 Based on 20% reduction of 12/31/2019 balance <br /> 145,214 <br /> <br /> Required Contribution: $12,751 This is less than City’s current contribution of $31,930 <br /> <br />Based on the unprecedented 2020 financial crisis, staff did further analysis. It is estimated that the <br />City of Little Canada would not be required to make a larger contribution than the budgeted 2020 <br />contribution of $31,930 unless the Fire Relief Investment holdings lost more than 23% market value in <br />2020. The investment holding had experienced a 14.4% market value reduction as of 3/31/2020. <br /> <br />The following table shows the increase in benefit levels over the past twenty years: <br /> <br />Year Increase Pension Level <br />1999 $100 $2,500 <br />2001 $200 $2,700 <br />2002 $100 $2,800 <br />2006 $50 $2,850 <br />2007 $250 $3,100 <br />2011 $50 $3,150 <br />2013 $50 $3,200 <br />2014 $65 $3,265 <br />2015 $35 $3,300 <br />2017 $80 $3,380 <br />2018 $560 $3,940 <br />2020 $255 <br />(proposed) <br />$4,195 <br />(proposed) <br /> <br />RECOMMENDED ACTION <br />Staff recommends approval of an increase to the benefit level for the Little Canada Fire Relief <br />Association by $255 pursuant to our contractual provisions.