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MINUTES <br />CITY COUNCIL <br />MAY 26, 1993 <br />DeBace reported that the Relief Association is grateful <br />to the City for its past contributions and would like <br />to see that continue to the best of the City's ability. <br />DeBace reported that based on a$2,000 pension level, <br />the fund will be overfunded by quite a bit at the end <br />of 1993. <br />The Administrator felt it was a matter of how much the <br />City wants to contribute. The Administrator <br />recommended based on the calculation of Schedules I, <br />II, and III, provided that the City was comfortable <br />with a$12,610 contribution, that the pension level be <br />increased to $2,050 for 1993. If the fund does well, <br />the Administrator pointed out that another increase can <br />be requested for 1994, provided that the parameters <br />that will be established by the City and Relief <br />Association are met. These parameters will be <br />presented to the Council for approval once a draft is <br />put together. <br />DeBace pointed out that a$2,100 benefit level in 1993 <br />based on a$16,500 contribution from the City would put <br />the fund at 98% funded using market value. <br />5calze felt an increase was a year pre-mature at this <br />point and agreed with the use of the auditor's numbers. <br />Scalze indicated that to her the question was how the <br />pension benefit level compared with surrounding cities, <br />with whom the City contracts for mutual aid, as well as <br />how much use of property taxes was necessary to <br />guarantee the pension benefit. Scalze stated that she <br />did not like the pension benefit in Little Canada to be <br />above the surrounding cities, and again stated that she <br />felt the increase was a year premature. <br />DeBace pointed out that there are cities with a higher <br />pension level. <br />Scalze pointed out there were cities with a lower <br />level, and felt that Little Canada should compare with <br />the surrounding cities with which the City has a mutual <br />aid agreement. Scalze also pointed out that the City <br />has been contributing something like $20,000 per year <br />to the pension fund from tax dollars in order to bring <br />the pension up to be comparable to surrounding cities. <br />LaValle suggested an increase to $2,050 with a program <br />worked out so that future increases would be required <br />to meet certain parameters before they would be <br />approved. <br />The City Administrator reported that he has a list of <br />the Relief Association's current investments and <br />Page 20 <br />