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MINUTES <br />City Council <br />September 30, 1981 <br />RESOLUTION N0, 81-9-515 - APPROVING THE FIRE PROTEC7ION <br />PORTION OF THE 1982 CITY BUDGET IN TEIE FlMOUNT OF ~77,025 <br />The foregoing resolution was duly seconded by Mrs, Nardini. <br />qyes (5) Hanson, Nardini, Scalze, Forsberg, Fahey. <br />Nayes (0). <br />Resolution declared ado~ted. <br />This resolution appears in Resolution Book No. 7, Page 344•. <br />Recreation A 10% increase is proposed for the salaries and mi1eage expenses of <br />Director & the Recreation Director and Assistant Directors, <br />Assistant <br />Directors Mayor 4an~on ~sk~d how the amount paid for travel expenses was <br />Salaries arrived at. <br />Mr. More7an replied that years ago it was decided to pay the directors <br />for travel expenses rather than including that portion of money in the <br />directors salary. This was in order to minimize the taxes that the <br />clirectors would have to pay. <br />Mayor Hanson stated that he questioned this large amount of money <br />being paid for trave1 expenses and suggested that perhaps there <br />should be a readjustment in the salary figure of the directors, <br />Hanson felt that someone could question this. <br />Mr. Fahey agreed that if the IRS were to review this, it could present <br />a problem.The City cou7d be considered to be guilty of tax evasion. <br />Mr. Morelan suggested that the salary portion of the budget could <br />be increased along with an amount to make up for the taxes that would <br />be paid on the increase. <br />Mayor Hanson stated that he would like to have legal clarification on <br />~his matter. Mr. Fahey agreed that a legal opinion shou7d be requested <br />from the attorney. Fahey suggested that there be an increase in the <br />salary plus an amount paid for trave1 on a per mile basis. <br />The City Clerk replied that if the salary of the directors go beyond <br />a certain point, the City will have to pay P.E,R.A, for these employees. <br />Fahey stated that if that happens, the City will have to pay it. <br />Fahey suggested that the budget be approved with the understandinq <br />that it could change contingent upon the legal opinion that the Council <br />will get from the City Attorney on the travel expense matter, <br />Mr. Fahey introduced the following resolution and moved its adoption: <br />RESOLUTI0~1 N0. 81-9-516 - APPROVING THE PROPOSED 1982 <br />SALARIFS FOR THE RECREATION DIRECTOR ANQ TFIE FlSSISTANT <br />DIRECTORS WITH TFIE UNDERS7ANDING THFlT THE COUNCIL GET <br />AN OPINION FROM THE CITY ATTORNEY REGARDING TIiE LEGAL <br />ASPECTS ON TFIE TRAVEL PAYMENT PORTIOPI OF 7HIS ~UDGET <br />Page -18- <br />