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<br />In addition to the basic formula above, staff prepared a “sensitivity analysis”. The results of this <br />analysis are as follows: <br />Current Benefit Level <br />Assets-12/31/2020 $2,143,214 <br />Liabilities 1,793,644 (Based on Current Benefit Level of $4,195) <br />Surplus $349,570 119.50% <br /> <br />With Benefit Increase to $4,680 <br />Assets-12/31/2020 $2,143,214 <br />Liabilities 1,947,665 (Based on Proposed Benefit Level of $4,680) <br />Surplus $195,549 110% <br /> <br />If there is a 20% loss in asset balance <br />with benefit increase to $4,680 <br /> <br />Assets $1,714,571 <br />Liabilities 1,947,665 (Based on Proposed Benefit Level of $4,680) <br />Surplus/(deficit) $(233,094) <br /> <br />Required Contribution Calculation: <br /> Normal Costs $140,400 <br /> Administrative Costs 7,166 <br /> Amortization of deficit 23,309 <br /> Less: State Aid (52,109) <br /> Less: 5% Return on Assets (85,729) Based on 20% reduction of 12/31/2020 balance <br /> <br /> Required Contribution $33,038 This is larger than City’s current contribution of $32,537 <br />Therefore, it is estimated that the City would be required to make a larger contribution than the <br />budgeted 2021 City Contribution ($32,537), if the Fire Relief Investment holdings lost more than 20% <br />market value in 2021. <br /> <br />The following table shows the benefit levels since 1999: <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 $4,195 <br />2021 $485 <br />(Proposed) <br />$4,680 <br />(Proposed) <br /> <br /> <br />RECOMMENDED ACTION <br />Staff recommends approval of an increase to the benefit level for the Little Canada Fire Relief <br />Association by $485 pursuant to our contractual provisions.