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CITY OF LITTLE CANADA <br />FIRE RELIEF ASSOCIATION <br />SIX YEAR FUNDING PLAN <br />The financial implications of the six year plan are indicated on <br />Attachment A. The plan is based upon the following components: <br />1. This plan is to be in effect for calendar years 1996 through <br />2001. <br />2. Roster changes are assumed in the projections with the most <br />senior person retiring each year commencing in 1997. <br />3. Investment earnings are projected at 6.5 %. <br />4. The City contribution is set at a flat amount of $18,000. <br />This amount will not increase or decrease during this time period <br />irrespective of fund performance or benefit levels; subject to <br />item #5. <br />5. The City reserves the right to re- evaluate its contribution <br />should a substantial reduction in Local Government Aid (LGA) <br />and /or Homestead Agricultural Credit Aid (HACA) be experienced <br />during the time period covered by this plan. <br />6. Fire state aid has been increased in 1996 to reflect an <br />adjustment due that year. It is then adjusted back to 1995 <br />levels. <br />7. Benefit increases of at least $25 per year of service are <br />projected for approval in the years 1997, effective 1998 and <br />1999, effective in 2000 based on these assumptions. If for some <br />reason the financial performance of the Relief Association <br />through its investment earnings and /or reductions in fire state <br />aid does not support the benefit increases based on the actual <br />calculation of schedules I and II for the year in question, then <br />the benefit increase would not be allowed. (Note on Attachment <br />A: This probability exists in 1997/1998 unless investment <br />earnings and /or fire state aid increase beyond current <br />projections.) It is also understood that the benefit increase <br />must not require the City's minimum municipal support to exceed <br />the $18,000 figure. <br />8. This plan may be reopened for discussion after four years <br />should the Relief Association not receive a benefit increase of <br />at least $25 in 1997 and 1999 or should the increases for either <br />of those years exceed $50. If either situation occurs, the City <br />or the Relief Association may open the plan for discussion as to <br />its appropriateness. <br />9. Request for benefit increases are to be submitted by July 1 <br />for the planned years. (1997 and 1999) <br />10. In the year 2001, this plan would be revisited for impact to <br />the years 2002 and beyond. <br />Page 53 <br />