06-10-2026 Council Packet - Laserfiche WebLink

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Staff Report To: From: Date: Re: Mayor Fischer and Members of the City Council Carl Jacobson, Finance Director June 10, 2026 Fire Relief Benefit Increase Action To Be Considered: Motion to approve, table, or deny the following: Consideration of a request from the Little Canada Fire Department to increase to the benefit level for the Little Canada Fire Relief Association by $770 per year pursuant to contractual provisions. Background: The City of Little Canada has a contract with the Little Canada Fire Department, which includes a formula for determining increases to the Fire Relief benefit level. The last time this benefit level was increased was at the July 23, 2025, City Council meeting, which was an increase of $155 per year pursuant to contractual provisions. A request from Fire Chief Don Smiley on behalf of the Little Canada Fire Department (LCFD) Board of Directors requesting an increase of $770 to the benefit amount for the Little Canada Fire Relief Association (LCFRA) is attached for your consideration. If approved, this would increase the LCFRA benefit level from $5,545 to $6,315 per year of service. According to Attachment A of the City contract with the LCFD, the benefit level increases can only be requested once per year, and the funding level ratio must be at or above 110% on December 31 of the previous year. Based on the LCFRA annual audit, the funded ratio of the investment account on December 31, 2025, was 123.3%. The following table demonstrates the basic formula. Benefit per year of Service $ 5,545 (current benefit) Ending Assets $ 2,208,740 (as of 12/31/2025) Pension Liability 1,791,514 (Underfunded)/Overfunded $ 417,226 Percent Funded 123.3%