11-14-2001 Council Agenda - Laserfiche WebLink

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AGREEMENT This Agreement is entered into this 5., day of /id, , <; , 2001 by and between the Little Canada Firemen's Relief Association, a Minnesota non - profit corporation (hereinafter "LCFRA "), and the City of Little Canada, a Minnesota Municipal Corporation (hereinafter "City "). PURPOSE: The purpose of this Agreement is to provide parameters and criteria by which funding of and benefits for LCFRA shall be approved by City. The components of this Agreement are as follows: 1. This plan will take effect in the calendar year 2001 and shall be in effect indefinitely, subject to Item #5. 2. The City's annual contribution is set at a flat amount of $15,000.00 per year. It is the intent of this Agreement that this amount remain constant as long as this Agreement is in effect, irrespective of fund performance and /or benefit levels and subject to Item #5. 3. The City reserves the right to re- evaluate its annual contribution should a substantial reduction in Local Government Aid (LGA) and/or Homestead Agricultural Credit Aid (HACA) be experienced during any calendar year covered by this plan. 4. Requests for a benefit increase shall be submitted by LCFRA no later than October 1st of each year with implementation of said increase to occur on January 1st of the following year, subject to approval criteria. Benefit increases shall be approved by City if Schedule I and II projections (see Exhibit 1) maintain a funding ratio between (100 %405 %) and that no additional City financial support in excess of the agreed City contribution stated in Item #2 is required for the following five years based on the new benefit level. The assumptions that shall be used in the creation of the Schedule I and II projections are as follows: • Annual increases in administrative expenses of 3.5% per year shall be utilized. • Investment earnings are to be projected at 6.5% per year. • Roster changes are assumed in the projections with the two most senior people retiring in 2001 and the most senior person each year thereafter. However, in the event that one of the most senior two people does not retire in 2001, then that person will be carried forward and combined with the next most senior person in the subsequent year. This carry forward shall continue until that person actually retires. Furthermore, should anticipated retirements exceed the impact of these projections, then the schedules shall be adjusted to reflect actual conditions. ♦ Fire State Aid shall be projected based on the actual amount received for the previous calendar year and carried forward throughout the years to be included in the projections. ♦ Projections shall be extended five years beyond the impact of the proposed benefit increase. This Agreement may be terminated by either party with six months written notice to the other. 6. This Agreement constitutes the full understanding between LCFRA and City relative to this issue. Any modifications to this Agreement shall be done in writing and approved by both parties. n: \KrisP\PIREDEPI\Agreement.doc Page 2