I have to disagree.
The ice displaces its weight in water.
As the ice melts the water that was once ice displaces its weight in water.
The weight of the ice and the weight of the water that was once ice are the same.
So their volume of displacement is also the same.
There is no change in water level.
Whatever decrease in volume of the ice happens (during melting process due to density change) will be canceled out by the fact that some of the ice was above the water line and therefore not contributing to the water level.