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MINUTES <br />CITY COUNCIL <br />DECEMBER 11, 2013 <br />and noted if that happened again, the City's required contribution could be <br />substantial. <br />Montour suggested that if the City provided inflationary increases, and <br />there was a downturn in the market, an option may be to require decreases <br />in other areas of the Fire Department budget to offset the City's required <br />pension contribution. Keis noted that whether the City guaranteed a $25 <br />or $50 increase per year, the scenario is the same. If the market has a <br />downturn, it is the City's responsibility to make up difference to support <br />the pension level. Keis also indicated that he would like to look at the rate <br />of inflation over the past several years. <br />Montour asked the Fire Department what they would cut from the City's <br />budget if the decision was to base increases on the rate of inflation and the <br />City's required contribution to the pension fund went up substantially. He <br />noted past years where the City employees have had salary freezes and the <br />Demont warming house was closed. Liebel suggested that in the event of <br />a market crash, the Fire Department would be willing to revisit the issue. <br />Morelan indicated that there could be an out in the agreement that would <br />address out -of -the- ordinary circumstances and bring the issue back to the <br />table. <br />Blesener suggested that this evening the Council should come to <br />consensus on the amount of City contribution for 2014 and then continue <br />to work on a long -term agreement. <br />Smiley agreed that an agreement could be drafted that would provide an <br />out in the event of a market downturn. Smiley stated that the Fire <br />Department is not here to shut down skating rinks for the sake of funding <br />its pension plan. <br />Keis noted that for the last 20 years, the rate of inflation ranged from 1.5% <br />to 4 %, except for the years with severe market downturns. Blesener asked <br />if the Fire Department would agree to a maximum inflationary rate. <br />Liebel noted that this would be asking fire fighters to take a cut. Liebel <br />stated that the Department is only asking for what is fair, and feels that <br />cost of living increases are fair. <br />The City Administrator felt that basing increases on the rate of inflation <br />results in the City taking a lot of risk without any control of what will <br />happen with investments. <br />Keis felt this was a discussion issue at this point and some analysis had to <br />be done on what is doable and what is not. Smiley agreed, noting that it is <br />almost the end of the year and some time will be needed to come up with a <br />3 <br />