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MINUTES <br />CITY COUNCIL <br />OCTOBER 11, 1995 <br />This change represents approximately $5,700 in <br />additional cost to the City, and has been provided for <br />in the 1996 Budget. It was the consensus of the <br />Council to support the change to full-time status. <br />The Administrator reported that the Fire Department has <br />requested $18,000 in funding from the City for the Fire <br />Relief Association. The $18,000 has been provided in <br />the 1996 Budget. The City's contribution in 1995 was <br />$17,160. <br />The Administrator reported that the Accountant did the <br />Schedules I and II, and based on these schedules an <br />increase in benefit level from $2,050 to $2,100 is <br />supportable. The question is the level of continued <br />City support in the future. <br />Morelan asked which of the spreadsheets the <br />Administrator had prepared most closely approximates <br />what would actually happen. <br />The Administrator felt that the interest rate is a key <br />fiqure, and pointed out that the Relief Association has <br />done well with its investments. The Administrator <br />suggested that a 5o to 6% interest rate range was the <br />most realistic to use given a conservative approach. <br />The spreadsheet labeled D-9 was used for discussion <br />purposes. <br />LaValle noted that a contribution of $14,328 was needed <br />from the City in order to support a$2,100 benefit <br />level. <br />The City Administrator replied that the Auditor's <br />figure of $14,872 was needed from the City in 1996 in <br />order to support a$2,100 benefit level. <br />Morelan noted that the spreadsheet projects the City's <br />contribution out to the year 2002, and that the <br />required contribution actually drops off to $12,113 in <br />that year based on no change to the benefit level. <br />Fahey asked if the City Administrator was recommending <br />a City contribution of $18,000 for 1996. <br />The Administrator replied that that was an option for <br />the City to consider. The Administrator also noted <br />that the level of benefit increases is dependent upon <br />several factors. Three-year average income is used, as <br />well as performance of investments. <br />Morelan noted that either State Aid or City <br />5 <br />