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Regular City Council Mmoutes — 11/17/03 <br />DRAFT ® e5 <br />Finance Director Chris Miller clarified several projections <br />and assumptions on the staff report noting they reflected <br />the range opined by Councilmembers, and that some of the <br />numbers didn't reflect tax levy savings, as they were <br />addressed in funds other than the General Levy. <br />Finance Director Miller noted, for Council's further <br />discussion, that additional funding for unfunded liability <br />for the Fire Relief Association had not been appropriated, <br />pending Council direction. Mr. Miller noted that the City <br />had received two formal requests from the Relief <br />Association', and that the unfunded liability amounts may <br />be negligible as more members were becoming eligible for <br />pension benefits. Mr. Miller further noted that, even if <br />another actuarial study were done, it would not be <br />completed prior to final budget adoption deadlines. <br />Further discussion among Councilmembers and staff <br />included the upcoming Fire Relief Association where <br />additional information should be available; obligations <br />under state statute for conducting an actuarial every three <br />years by the Fire Relief Association and who would be <br />responsible for costs associated with completion of a mid- <br />term actuarial; and responsibility for notification of the <br />County Auditor related to the unfunded liabilities, <br />Further discussion included whether it would be to the <br />taxpayer's advantage (i.e., fiscal disparities) for the City or <br />the Fire Relief Association as another taxing authority to <br />report the unfunded liability. <br />Finance Director Miller noted that the City Council <br />needed to provide direction on how to fund the liability, <br />from reserves or as a bevy increase, or through a <br />corresponding reduction in another service or program. <br />Further discussion ensued related to various components <br />of recommended budget reductions, including use of <br />reserves that had been anticipated prior to 2004 budget <br />preparation; addition of the taxpayer -voted levy <br />referendum; League of Minnesota Cities Insurance Trust <br />