09-14-1983 Council Agenda - Laserfiche WebLink

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September 8, 1983 Dear Council Members, The Little Canada Fire Department Relief Association recently employed the Delahunt Voto accounting firm to review and summarize our financial status in regards to benefits paid by the association. Our current benefit level is $600.00 per year of service. Our interest was to determine the capability of our increasing that amount without substantially increasing our unfunded liabilities or the corresponding levels of City funding required to pay the benefits. Two (2) years ago we had a verbal agreement with the Council indi- cating that we would not ask for any increased City funding for two (2) years - which is now at hand. Prior to our approaching the Council, we wanted to determine what would be a reasonable increase and what that increase would require insofar as City support. The accountant's report concluded that our fund is comparatively in excellent shape and financially sound. At our current benefit level ($600.00 per year of service) and the current rate of City contribution ($12,500.00 per year), our existing unfunded accrued liability would be eliminated by 1985 year end. They indicated that we could immediately increase our benefits by $75.00 per year without any increase from the City. At an August 29th meeting of our Board of Directors and City Council Repre- sentatives, the unanimous consensus was that we provide for the increase of our benefit level to $700.00 per year of service. This will increase our unfunded liability to $27,798.00 - which would be eliminated by 1988. The current City contribution, however, would not be sufficient to finance 1984 benefits. The accountant suggests that a more favorable situation would exist if the City contribution would increase by $1,000.00 per year - to $13,500.00. By doing so, our 1984 financial requirements would be met and the increased unfunded accrued liability would be eliminated by 1.987. In order that we may provide our membership with this benefit, we are asking the Council to approve the $1,000.00 annual increase required to support it. The $1,000.00 amounts to approximately $25.00 per man -- which is quite insig- nificant considering the fire protection provided. Sincerely, Utw o/ce_ Robert DeBace President Little Canada Fire Department Relief Association