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Special Council Meeting September 6, 2016 Page 2 Schenk said it was past time to look upon City retirees as they would any other deserving entity or asset and begin again the practice of COLA adjustments for retirees. With no one else speaking, Mayor Hashmi closed the public hearing. Mayor Hashmi inquired a time that Council could review the COLA for retirees. Mr. Godwin said they could discuss it at their regular meeting on September 12 and then pointed out the cost would be over a million dollars. 4. Discuss and act on RESOLUTION NO. 2016 -030: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, CALLING A PUBLIC HEARING ON PROPOSED AMENDMENTS TO THE CITY MANAGER'S PROPOSED BUDGET FOR FISCAL YEAR 2016 -17; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND PROVIDING AN EFFECTIVE DATE. Mr. Godwin explained that a public hearing was required on any amendments to the budget and that the public hearing was scheduled for the September 19 special city council meeting. Mayor Hashmi inquired how the million dollar figure was reached for the retiree COLA. Mr. Godwin explained that Mr. Anderson obtained the financial information from TMRS. Mr. Anderson said if they went back and made the adjustments every year like they did in the past, that the City's contribution would increase by $1,330,807 per year, which would provide an annuity increase equal to 70% of the inflationary change since the last update. Mr. Anderson further explained to provide a one -time raise for retirees at 70% would increase the annual costs by $293,815 and if that inflationary percentage were reduced to 50 %, costs would be $212,336. Mr. Anderson said the lowest inflationary percentage allowed by TMRS was 30% and that would cost $146,907 each year. Mayor Hashmi inquired the amount each retiree would receive should they make changes. Mr. Anderson said several factors would determine that such as age and years of service. He also said that the City did not make that determination, but that TMRS calculated those numbers. Council Member Lancaster wanted to know the latest date they could add something to the budget. Mr. Godwin said Monday. A Motion to approve this item was made by Mayor Hashmi and seconded by Council Members Clifford, Trenado and Lancaster. Motion carried, 6 ayes — 0 nays. 5. Adjournment. There being no further business, a Motion to adjourn was made by Council Member Drake and was seconded by Council Members Clifford and Trenado. Motion carried, 6 ayes — 0 nays. The meeting was adjourned at 5:47 p.m.