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MINUTES <br />CITY COUNCIL <br />February 13, 1991 <br />benefit level, but would only slow the rate of growth <br />for increases in fund balances available for future <br />benefit changes. <br />Bob DeBace, representing the Fire Relief Association, <br />pointed out that interest earnings on pension benefits <br />are down considerably so far this year from 1990. <br />DeBace stated that he opposed the reduction in the <br />discretionary levy since those funds are needed to keep <br />pension benefits as fully funded as possible. <br />Currently these benefits are 96% funded. DeBace <br />pointed out that unfunded benefits are a liability on <br />the City. DeBace also reported that the Fire <br />Department has agreed not to put proceeds from <br />charitable gambling into the pension fund. <br />Scalze pointed out that the interest earnings quoted by <br />DeBace of 7.65% are over the 5% that must be used to <br />determine funding of pension benefits. <br />Hanson asked if the Fire Department can legally use <br />charitable gambling proceeds to fund pension benefits. <br />Blesener thought the Law had changed so that such <br />proceeds could not go towards pension benefits. <br />Blesener suggested that the discretionary levy not be <br />reduced at this time suggesting that the matter be <br />reconsidered in six months when the City knows what <br />additional cuts will be made in Local Government Aid. <br />Council discussed the 10% contribution that the Fire <br />Department makes to the City from its charitable <br />gambling proceeds. Blesener suggested that money from <br />these contributions should be used to offset the City's <br />expenses in the area of charitable gambling. Blesener <br />pointed out that just tonight there is the cost to the <br />City for attorney's time in drafting a gambling <br />ordinance revision. <br />Scalze agreed, pointing out that some cities assess a <br />3% administrative fee in addition to the 10% donation <br />requirement. <br />The City Administrator reported that he just learned <br />today that the City will be receiving a rebate of <br />approximately $4,400 for overpayment of insurance <br />premium for general liability and umbrella coverages <br />during 1989. This rebate could be used as an <br />alternative to reducing the Fire Relief Association <br />discretionary levy at this time. The Administrator <br />also stated that the Fire Relief Association has not <br />been singled out, but that all areas of the City are <br />Page 8 <br />