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All benefit increases must be approved by the City Council. According to the contract, if the <br />percent funded is at 110% or above, the increase will be granted. If the requested increase <br />is approved, the funding level would be brought to 110%. The goal of this formula is to <br />provide a sustainable benefit increases to the Little Canada Fire Relief Association while <br />avoiding potential additional levy requirements for the city due to investment volatility or <br />account losses. <br />In addition to the basic formula above, staff prepared the following sensitivity analysis: <br />Current Benefit Level: <br />Benefit per year of Service $5,545 <br />Assets 12/31/2025 2,208,740$ <br />Liabilities ($5,545 Current Benefit Level)(1,791,514)$ <br />417,226$ 123.3% <br />With Benefit Increase to $6,315: <br />Assets 12/31/2025 2,208,740$ <br />Liabilities ($6,315 New Benefit Level)(2,007,210)$ <br />201,530$ 110.04% <br />If we have a 20% loss in the asset balance <br />with the benefit increase to $6,315: <br />Assets 1,766,992$ <br />Liabilities (New Benefit Level)(2,007,210)$ <br />Deficit (240,218)$ <br />Required Contribution Calculation: <br />Normal Costs 166,350$ <br />Admin Costs-Current Year plus 3.5%30,351 <br />Amortization of Deficit 10%24,022 <br />Less: State Aid (102,353) <br />Less: State Aid-Supplemental (3,000) <br />Less: 5% Anticipated Net Position (88,350) <br />Required Contribution 27,020$