10-11-95 Council Workshop Minutes

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MINUTES CITY COUNCIL OCTOBER 11, 1995 Morelan pointed out that benefit levels have only had inflationary increases over the past few years. Morelan also stated that the Fire Department realizes that the amount of money in the fund is not justification for a pension increase. The benefit level must be competitive with what other cities are paying as well. By contributing $18,000 toward the fund in 1996, the surplus amount can be applied toward future benefit increases. Fahey felt that at a minimum the City's contribution should be equal to last year's so as not to adversely affect the three-year formula. The City Administrator pointed out that the Council has until the adoption of the budget to decide this issue. Dick Boss, Fire Chief, was concerned that every year this issue becomes a focal point of discussion. LaValle pointed out that a City contribution of $14,872 will support a$50 increase. LaValle suggested that a City contribution of $15,000 be made with the surplus to build in the fund to support future increases. Fahey asked why the Fire Department is requesting an $18,000 contribution. The City Administrator replied that the Fire Department is requesting an inflationary increase in the City's contribution each year. Morelan felt that was reasonable. He stated that he would rather see a surplus build in the fund and cut back, if necessary, than to be caught short for funding future increases. LaValle pointed out that the fire relief benefit level was $600 or $900 per year of service when he first came on the Council. At that time, the City had to play catch-up to make that benefit competitive with what other cities were paying. Morelan stated that he would rather be in a position where the fund is sound than where it is short. Fahey agreed that the Council should not be short- sighted on this issue. LaValle suggested that a City contribution of $15,000 be established tonight, and once survey results are in- 9