05-26-93 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL MAY 26, 1993 Morelan asked the Engineer to stress to the contractor the importance of keeping Vanderbie and Allen open not only for access by the residents but emergency vehicles as well. FRATTALONE The City Attorney reported that he has drafted an RECYCLING amendment to the Frattalone recycling development agreement which provides for a five-year extension for that operation. Mr. Frattalone's attorney is reviewing this agreement at this time. The Attorney suggested that Council review and approval be scheduled for the next Council meeting. FIRE RELIEF The City Administrator reported that the Fire Relief PENSION Association is requesting that their pension benefit be BENEFIT increased from $2,000 per year of service to $2,100. The Administrator reported that he has done a detailed analysis of the effect of that increase on the pension fund using information provided by the Relief Association, the State, the City's auditors, and Piper Jaffrey. The Administrator also reported that he has worked out State Schedules I, II, and III for the year 1994, which the Relief Association would submit to the State, and a$2,000 benefit level would require a City contribution of $8,156, a$2,050 level would require $12,610, and a$2,100 level would require between $18,000 and $21,326. These calculations are based on beginning asset values as listed in the Relief Association's annual report prepared by their auditors. The City Administrator reported that the Fire Relief Association's is using beginning asset values based on market value. There is a signifioant difference between book value and asset value and that difference may not be realized if the assets are held to maturity. The Administrator reported that he discussed this issue with the auditors who use book value and then amortize the assets over the life of the investment purchase. The Administrator felt that the City needed to take a conservative approach in this matter and use market value, otherwise the City could be at risk from a levy standpoint. The Administrator felt that the Council needed to come up with a figure that it was comfortable with contributing to the Relief Association Pension Fund. If the City feels that an $18,000 to $21,326 contribution is too high, than the $100 increase in pension level cannot be supported. If the City is comfortable with a$12,000 contribution, than an increase to $2,050 can be supported. Page 18