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MINUTES <br />CITY COUNCIL <br />OCTOBER 11, 1995 <br />the Council decide later how much will be disbursed to <br />the Fire Department. <br />The City Administrator pointed out that whatever number <br />has been budgeted for, is the amount that has been paid <br />to the Relief Association. The Administrator pointed <br />out that the benefit level can only be increased to <br />$2,100 at this point based on the 3-year average in the <br />Schedules. Next year, however, it may be possible to <br />request an additional increase. <br />Fahey pointed out that a declining City contribution <br />will affect the three-year average, and the Fire <br />Department's ability to ask for an increase. <br />The City Administrator explained how the three-year <br />average works. <br />Fahey pointed out that at a 36-member level plus a <br />reduction in the City's contribution, there will be a <br />negative impact on the benefit level. Fahey did not <br />believe the City~s contribution should be reduced from <br />what it was last year. Fahey also pointed out that the <br />spreadsheet analysis assumes that the benefit level <br />will remain constant. <br />Morelan agreed that the 1996 City contribution should <br />not be less than it was in 1995. The Fire Department <br />is requesting an $18,000 contribution from the City. <br />Fahey stated that he believes the Fire Department <br />understands that increases will not be granted solely <br />on the basis of funding, but also on a comparison of <br />benefit levels being paid by other cities. Fahey was <br />concerned about being underfunded and the Fire <br />Department loosing its ability to provide incentive for <br />people to join. <br />Morelan pointed out that if the rate of inflation is <br />applied against the benefit level, that level would <br />rise by approximately $60 per year. <br />LaValle suggested that the rate of inflation cannot be <br />applied against deferred compensation. <br />The City Administrator stated that he would like to <br />bring this issue to closure, rather than have the <br />Council discuss it each year. The purpose of the <br />spreadsheet projections is to make sure there are no <br />surprises in the future. The Council must decide what <br />number they are comfortable with. <br />8 <br />