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<br />In addition to the basic formula above, staff prepared the following sensitivity analysis: <br />Current Benefit Level <br />Assets-12/31/2021 $2,163,734 <br />Liabilities 1,738,925 (Based on Current Benefit Level of $4,680) <br />Surplus $424,809 124.4% <br /> <br />With Benefit Increase to $5,390 <br />Assets-12/31/2021 $2,163,734 <br />Liabilities $1,959,577 (Based on Proposed Benefit Level of $5,390) <br />Surplus $204,157 110.4% <br /> <br />If there is a 20% loss in asset balance <br />with benefit increase to $5,390 <br /> <br />Assets $1,730,987 <br />Liabilities 1,959,577 (Based on Proposed Benefit Level of $5,390) <br />Surplus/(deficit) $(228,590) <br /> <br />Required Contribution Calculation: <br /> Normal Costs $140,400 <br /> Administrative Costs 7,166 <br /> Amortization of deficit 22,859 <br /> Less: State Aid (52,109) <br /> Less: 5% Return on Assets (86,549) Based on 20% reduction of 12/31/2021 balance <br /> <br /> Required Contribution $31,767 (This is less than City’s current contribution of $32,537) <br />It is estimated that the City would be required to make a smaller contribution than the current budgeted <br />City Contribution ($32,537) if the Fire Relief Investment holdings lost 20% of market value in 2022. <br />This does not reflect any adjustments that are made to the Administrative Costs or State Aid during the <br />2023 budget process. The following table shows the benefit levels since 1999: <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 $4,195 <br />2021 $485 $4,680 <br />2022 $710 <br />(Proposed) <br />$5,390 <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 $710 per year pursuant to Attachment A of the City contract with the LCFD.