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STAFF REPORT <br />TO: <br />FROM: <br />DATE: <br />RE: <br />Mayor Fischer and Members of the City Council <br />Sam Magureanu,Finance Director <br />July 23, 2025 <br />Fire Relief Benefit Increase <br />ACTION TO BE CONSIDERED <br />Consideration of a request from the Little Canada Fire Department to increase to the benefit level for <br />the Little Canada Fire Relief Association by $155 per year pursuant to contractual provisions. <br />BACKGROUND <br />The City of Little Canada has a contract with the Little Canada Fire Department which includes a <br />formula for determining increases to the Fire Relief benefit level. The last time this benefit level was <br />increased was June, 2022. A request from Fire Chief Don Smiley on behalf of the Little Canada Fire <br />Department (LCFD) Board of Directors requesting an increase of $155 to the benefit amount for the <br />Little Canada Fire Relief Association (LCFRA) is attached for your consideration. If approved, this <br />would increase the LCFRA benefit level from $5,390 to $5,545 per year of service. <br />According to Attachment A of the City contract with the LCFD, the benefit level increases can only be <br />requested once per year and the funding level ratio must be at or above 110% on December 31 of the <br />previous year. Based on the LCFRA annual audit, the funded ratio of the investment account on <br />December 31, 2024 was 112.35 %. The following table demonstrates the basic formula. <br />Benefit per year of Service $5,390 (current benefit) <br />Ending Assets <br />Pension Liability <br />$2,242,537 (as of 12/31/2024) <br />$1,996,085 <br />(Unfunded)/Overfunded $246,452 <br />Percent Funded 112.35% <br />All benefit increases must be approved by the City Council. According to the contract, if the percent <br />funded is at 110% or above, the increase will be granted. If the requested increase is approved, the <br />funding level would be brought to 110%. The goal of this formula is to provide sustainable benefit <br />increases to the Little Canada Fire Relief Association while avoiding potential the levy requirements <br />for the City due to investment volatility or account losses. <br />In addition to the basic formula above, staff prepared the following sensitivity analysis: