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MINi1TES <br />CITY COUNCIL <br />NOVB+IBER 8 , 1995 <br />Council with any concerns about his ability to react to <br />issues because of his involvement on the Fire <br />Department, he would like to hear from them. If not, <br />then this child-like innuendo should cease, and Council <br />Members should act as adults and move on. <br />Fahey stated that he would expect every City Council <br />member to abstain on issues where there is a conflict- <br />of-interest. However, it is totally appropriate for <br />Council Members to act on Fire Relief issues and there <br />is no conflict-of-interest present. Innuendos to the <br />contrary are not appropriate. Fahey stated that in his <br />own dealings on Fire Department issues while a member <br />of the City Council, he many times advocated for the <br />opposite view. Fahey stated that he did not question <br />Morelan's perspective or judgement. <br />Fahey reviewed the City Administrator's November 3, <br />1995 report wherein he recommended a City funding level <br />of $18,000 per year to the Fire Relief Fund over the <br />next six years. The report also projected a$25 <br />benefit level increase in the year 1997, payable 1998, <br />and in the year 1999, payable 2000. If the fund cannot <br />support those amounts or if a larger than $50 per year <br />increase can be supported, the issue would be open for <br />review after 4 years. <br />The City Administrator reported that his recommendation <br />is based on an extensive review involving projections <br />of future required municipal contributions at various <br />benefit levels and at various levels of municipal <br />support. There has also been extensive review and <br />discussions with the Fire Chief and president of the <br />Relief Association. The Administrator indicated that <br />he used conservative assumptions in putting together <br />the recommendation. However, if investment yield is in <br />excess of 6 1/2% or there is an increase in State Aid <br />dollars, there would be higher surpluses. The <br />Administrator felt it would not be likely that benefit <br />level increases could exceed $50, and reported that he <br />ran a couple of scenarios to confirm this. There is <br />the possibility for a$35 increase in 1998. However, <br />there are a lot of variables involved. <br />Fahey asked if the $18,000 contribution by the City <br />could be accommodated within the 2.88% levy increase <br />that is projected at this time. <br />The Administrator replied <br />the budget now, that being <br />Fire Department. <br />that the $18,000 figure is in <br />the amount requested by the <br />2 <br />