Laserfiche WebLink
W opt `` °Slid Wana /a <br />MAYOR <br />Bill Blesener <br />COUNCIL <br />Jim LaValle <br />Rick Montour <br />Barbara Allan <br />John Keis <br />515 Little Canada Road, Little Canada, MN 55117 -1600 ADMINISTRATOR <br />(651) 766 -4029 / FAX: (651) 766-4048 Joel R. Hanson <br />www. ci.little- canada. mn. us <br />MEMORANDUM <br />TO: Mayor Blesener and Members of the City Council <br />FROM: Joel Hanson, City Administrator <br />Shelly Rueckert, Finance Director <br />DATE: November 17, 2006 <br />RE: Little Canada Fire Relief Association — 2007 Benefit Increase <br />City staff, along with Mayor Blesener and Council Member LaValle, attended the <br />October 25, 2006 Relief Association Meeting. Brian McKnight of Wachovia Securities <br />presented a report on the Relief Association's investment portfolio and investment <br />earnings as of September 30, 2006. Brian noted that investment growth was at 5.33% at <br />the end of September. The funds asset allocations were reviewed and are in line with the <br />goal of 60% equity and 40% fixed investments. <br />Given the funds positive performance during 2006, the City staff had prepared a benefit <br />increase analysis, see Exhibit A. Staff reviewed this analysis with the members of the <br />Relief Association Board. It was noted that a $100 benefit increase for 2007 was feasible <br />given the funds' 2006 investment performance to date. Assuming one retirement in 2007 <br />and 2008, a $100 benefit increase, and 5% investment earnings, the pension liability <br />funding is projected at 101.33% for 2007 and 109.14% for 2008. This is in line with <br />current State Auditor's recommendation that pension liability funding be maintained in <br />the range of 100% to 110 %. <br />Based on the above, the Board members concluded that a $100 benefit increase would be <br />prudent and reasonable. Therefore, at a subsequent meeting of the entire Relief <br />Association, a $100 benefit increase was approved by the membership. <br />Staff is recommending that the City Council approve the Little Canada Fire Relief <br />Association benefit increase of $100, increasing the current benefit of $2,850 per year of <br />service to $2,950 for 2007. <br />