05-27-2015 Council Packet - Laserfiche WebLink

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Vire Relief Funding/Benefit Increase Program The Little Canada Fire Department and the City of Little Canada hereby agree to the following parameters to govern the funding of the Little Canada Fire Relief Association and the methodology by which benefit increases shall be granted for the period of 1/1/2015 through 12/31/2019. Those parameters are as follows: • City Contribution of $31,000 for 2014. • City Contribution of $31,000 per year for 2015 through 2019. • Benefit Increases shall be granted as follows: 1. Benefit increase calculations shall be done once per calendar year and close as possible to January 1" of each year of this agreement. 2. Any increases granted shall be retroactive to January 1 of the calculation year or will be effective as soon as possible thereafter in that calendar year if retroactivity is not allowed pursuant to State Statutes. 3. All benefit increases must be approved by the City Council. To achieve a benefit increase, the proposed increase will be applied as indicated on Exhibit A attached hereto. This calculation will utilize the previous year's fund balance as of 12/3 t/xx. No estimates of investment returns, state aid payments, administrative costs, or city contributions are needed as they will already be reflected in the ending fund balance. Using the 12/31/xx balance, the new benefit level will be applied to the calculation on the attached worksheet. When applied, the funding level cannot go below 110%. If 110% or above, the increase will be granted. If below 110%, no increase will be granted for that benefit level. Either party can terminate this provision of the Fire Department Contract for any reason by written notice made prior to July 14 each year the agreement is in effect with the termination to be effective on January 1s` of the following calendar year, unless a shorter notice provision is mutually agreed to. • The goal of this agreement is to provide steady and sustainable benefit increases to the Little Canada Fire Relief Association while avoiding volatility in the levy requirements for the City due to the retirement of deficits. Both parties acknowledge that the investment performance is beyond the control of either party and poor investment performance will likely result in no benefit increases. • It is understood that as a condition of this agreement, the City will provide any required contribution for deficit retirement in excess of the $31,000 noted above based upon State Form SCxx (xx represents the last two digits for the year in question).