Text · page 82 of 241
Read the whole document on one page (all 241 pages, each with its own heading)
Fire LOSAP 10/5/22 Meeting with Landmark Wealth & Penflex – As previously discussed… this is The Town was Provided the Following Options: being worked into the Annual Contribution Amount by Firefly • Amortize the $3 million unfunded liability & pay off as if it were debt – this would result in an annual payment of roughly $280,000 for next 20 years or $235,000 for next 30 years. Meanwhile no current Freeze the members are able to earn service credits and you are not adding any new members. Simply paying off the program debt. This leaves possibility to unfreeze in future • The plan ends and either the town has to come up with $3 million to make this full payout or pay out everyone at 46 cents to the dollar of what they are owed. Terminate • 2025 update would be having to come up with $3.1 million or pay out at 46 cents to each dollar owed & pay out • Switch from a defined benefit plan to a defined contribution plan • Defined Benefit – Town owes $20/month to each member per each year of service Change the • Defined Contribution - Town would pay $X to the plan each year and the payout to members varies based Plan on how the investments do • The town would have to make or exceed suggested contribution (currently $400,000/year) • Funding options: 20-25% Property Tax Increase in Fire Fund / Allocate Additional Sales Tax here / Mix of Get funded the 2 sources / Consolidate the 3 fire companies into 1 or 2 companies and use some of the contractual ratio back dollars saved towards LOSAP up The discussion of a large tax increase was first brought up in 2022… the Town did a 10% tax increase for 2026… mixed with increased Sales Tax Allocation… to bring this appropriation line up to $400,000 82