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City Council Study Session — 07/17/06 <br />DRAFT Minutes - Page 11 <br />granted. Currently, we have done as we just completed the <br />request to have a$2.ODlyear increase, rising from $27 to <br />$291year of service to its members. <br />The Association would like to propose that in the future, <br />increases would be based on the Cost of Living Allowance <br />(COLA) that the yearly Social Security increase is based on. We <br />would like to have this increase effective with the year 2006 and <br />2007, with the increase effective January 1, 2008. The <br />Association would recommend the increase be rounded up to the <br />nearest quarter of a dollar. The COLA for the year 2006 would <br />be based on the actual percentage increase, while the COLA for <br />2007 would be based on the estimated percentage increase. This <br />format would be followed in future years, actual percentage in <br />the odd years and estimatedpercentage in the even years. <br />The rationale behind this, is that the Association is required by <br />Minnesota Statute to have an actuarial performed every two <br />years and that would mean one would need to be performed <br />effective December 31, 2007. This actuarial would show the <br />current fmancial picture of the Association and what if any City <br />contribution would be required. <br />The Association also recommends that if the unfunded liability <br />should fall below 70%, an increase would not be granted. The <br />Association could try to calculate an increase amount hat would <br />not bring the unfunded liability below the 70% figure, and <br />present that amount instead of the full COLA amount, for <br />consideration." <br />Discussion included index <br />Auditor's Annual <br />www, audi�or. state. mn. use; <br />process; <br />figures and their origination; State <br />Report avai�a�ility at <br />projected funding and adjustment <br />Mayor Klausing thanked the Firefighter's Relief Association for <br />their presentation and advised that the City Council would take <br />their request under advisement in upcoming budget discussions. <br />Finance Director Chris Miller sought City Council direction to <br />confer with the City Attorney to ensure that the proposal <br />