Laserfiche WebLink
MINUTE5 <br />CITY COUNCIL <br />OCTOBER 11, 1995 <br />contributions will have to increase in order for <br />benefit levels to increase. It is unlikely that State <br />Aids will increase. Morelan pointed out that over the <br />next several years the City~s required contribution is <br />in the $12,000 range in order to maintain the benefit <br />level where it is today. Morelan felt that the City <br />had to provide for some increases in benefit levels, <br />and the only way for this to happen is if the City <br />contributes more than its required contribution. <br />The Administrator pointed out that the variables are <br />State Aid, City contribution, and investment yields. <br />Pedersen suggested that because the City's contribution <br />may be $14,000 in 1996 does not mean there will be no <br />increases in the future. <br />Morelan suggested that it would be interesting to see <br />what the required City contribution is to support a <br />benefit level of $2,150. Morelan stated that an <br />additional $50 in benefit level may require a <br />significant increase in the City's contribution. <br />The City Administrator estimated that it would take an <br />additional $3,000 to $4,000 from the City to support a <br />$50 increase. <br />Pedersen pointed out that the spreadsheet shows a <br />declining contribution to support a$2,100 benefit <br />level. If the City's contribution remained constant at <br />$14,000, there would be additional dollars going into <br />the fund. <br />Fahey pointed out that the City's contribution was <br />$17,160 in 1995, and felt that an increase to $18,000 <br />was reasonable. <br />LaValle pointed out that that is almost $4,000 than <br />what is required to support a$2,100 benefit level. <br />Morelan suggested that he would rather see the fund <br />built up gradually than have a large increase in the <br />City's contribution required in one year. <br />Pedersen suggested that if a big surplus is built up in <br />the fund, the Fire Department would expect an automatic <br />increase. <br />Fahey disagreed, pointing out that the City would <br />compare the benefit levels of other cities to determine <br />the level Little Canada should be at. Fahey also <br />pointed out the three-year rolling formula used to <br />6 <br />