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<br />e <br /> <br />e <br /> <br />e <br /> <br />The second item I want to bring to your attention is the amount <br />of anticipated interest income. In 1993, the Relief <br />Association expects to receive approximately $54,500 in <br />interest income, which is a return of approximately eight <br />percent. This number may be a bit high; I did question this <br />and was assured by the Relief Association that they were <br />comfortable with an eight percent return. The 1992 schedules <br />for the 1993 benefit amount estimated interest at $44,600 while <br />the actual amount received was $28,390. The amount of <br />projected interest income of course affects the benefit level <br />and the associated surplus or deficit. <br /> <br />The attached schedule is calculated based on a benefit amount <br />of $2,240 per year. This is an increase of $140 per year. <br />This schedule also assumes that the City will make a <br />contribution in the amount of $19,000 in 1993. Using these <br />assumptions, this benefit level of $2,240 does not require a <br />City contribution. Past policy has been that the Council will <br />not approve a benefit level which requires a City <br />contribution. If the City Council decides not to contribute <br />$19,000 to the Fire Relief Association in 1993, a municipal <br />contribution of $1,819 will be required if the benefit is <br />increased to $2,240. Also keep in mind that the interest <br />earnings may not meet projections and although that would not <br />affect the contribution required in 1994, it would have an <br />effect on future requirements. <br /> <br />The following chart provides some historical data on benefit <br />amounts and City contributions to the Relief Association. <br /> <br /> Per Year Percent <br />Year Benefit Increase <br />----- -------- -------- <br />1994* $2,240 6.67% <br />1993 $2,100 10.53% <br />1992 $1,900 2.70% <br />1991 $1,850 19.35% <br />1990 $1,550 3.33% <br />1989 $1,500 7.14% <br />1988 $1,400 16.67% <br />1987 $1,200 20.00% <br />1986 $1,100 <br />*Requested by Relief Association <br /> <br />City <br />Contribution <br /> <br />State <br />Aid <br /> <br />$19,000 <br />$19,000 <br />$18,100 <br />$15,000 <br />$15,000 <br />$11,000 <br />$ -0- <br /> <br />$38,590 <br />$38,907 <br />$38,221 <br />$36,297 <br />$33,507 <br />$30,837 <br />$26,997 <br /> <br />According to State law, the Relief Association is to get <br />approval from the City Council for an increase in the benefit <br />amount prior to August 1. If the Council is to approve a <br />benefit increase it needs to be done at a City Council meeting <br />prior to August 1. It is my understanding that the Relief <br />Association has a supplemental Schedule 2 prepared in the event <br />that the City does not contribute $19,000 to the Relief <br />