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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 & Members of the City Council <br />FROM: Shelly Rueckert, Finance Director <br />DATE: November 18, 2005 <br />RE: Fire Relief Benefit Increase <br />The Little Canada Relief Association asked me to help them in preparing an analysis in regards <br />to the evaluation of a benefit increase. Tautges has done projections like this in the past, but they <br />tend to cost between $500 and $700 to complete. In lieu of Tautges projections, I recomputed <br />schedules I and II based on various benefit levels. I presumed any benefit increase would be <br />effective in 2006. The summarized results are attached. <br />As you can see, I am projecting that at the end of 2005 the Relief assoc will be 98% <br />funded. At that same benefit level for 2006 (2800), 5% earnings /appreciation, a $15,000 city <br />voluntary contribution, no change in fire sate aid and no retirements the fund would be 100% <br />funded with no required municipal contribution. The percentage funded drops a hair under 100% <br />funded if the two most senior members retire. <br />At an increased benefit level of $2,850, the percentage funded is 99% with no retirements <br />and 97.9% with two retirements, all other assumptions remaining the same. Again there is no <br />required municipal contribution in this scenario. We would contribute the city's agreed upon <br />$15,000 contribution. <br />At an increased benefit level of $2,900, the percentage funded is 97% with no retirements <br />and 96% with two retirements, all other assumptions remaining the same. Again, there is no <br />required municipal contribution in this scenario, but we would continue with our $15,000 <br />contribution. <br />This information was presented at a recent Relief Association Board of Directors' meeting <br />After discussing various options, the Board recommended a $50 per year of service increase. <br />Documentation from the Relief Association is forthcoming. <br />Staff recommends a $50 per year of service benefit increase, subject to appropriate <br />approvals from the Relief Association. <br />cc: Joe Vitale, LCFRA <br />