10-08-2014 Council Agenda - Laserfiche WebLink

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Option B: To address the levy volatility concerns mentioned earlier, Option B would resemble our past funding/benefit increase arrangements. We envision that program with benefit increase governed by the following factors: • Projections carried forward for five years. (See Attachment A for sample Projection Format.) • City Contribution of $15,000 per year. (Maybe $20,000 so we have provided some increased funding to show our good intentions???) • Roster changes with the most senior member retiring each year and replaced by a new member for liability calculations. • Investment earnings assumed at 4.2% (2012 State Auditor's Report calculation of LCFR's performance results or the most recent State Auditor's published calculation if available. • Fire State Aid shall be projected at the previous year's level unless specific adjustments are actually known for the years included in the analysis. • Administrative expenses shall be based on 2013's actual costs plus a 3.5% annual increase commencing in 2014 and carrying through the term of this agreement. • The funding level, after the proposed increase cannot fall below 110% for any of the five years projected in to the future. • Levy support cannot exceed the $15,000 (or number we agree to above) per year city contribution, except for mandatory deficit retirement that results for deficits that have exceeded these parameters. • This plan would be in effect for five years forward, including the year of approval. • Either party can terminate this agreement with by written notice made prior to July 1 g with the termination to be effective on January 1st of the following calendar year, unless a shorter notice provision is mutually agreed to. • The benefit increase calculation process may be requested once per year.. 4