02 City Council Min 08-03-04 - Laserfiche WebLink

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After the deletions and reductions, the budget City Council was reduced by $44,500.00. The next department budget was the City manager's budget. Mayor Fendley was wondering if the City Manager's salary was for the full 12 months of the year. Mr. Anderson indicated it was. Mayor Fendley also asked how the retirement benefits were calculated.Mr. Anderson explained that those calculations can only be changed on January 1 st, so they would remain the same until then, and then it would change. He said it is an actuarial determination and would have to be done by TMRS. Councilman Wilson said it concerned him that they will be taking essentially $550,000.00 from the employees in terms of the retirement match, but the City would only get $280,000.00 credit for that. Mr. Anderson confirmed that. Councilman Bell asked if the Council could get some kind of report explaining this from TMRS or get one of the representatives to come and explain it. Finance Director Anderson said the percentage for the retirement is 11.8, if it goes to a 1 to 1 match it will be 8.52 and for a 1 to 1 1/2 match, it will be 10.65. Finance Director Anderson was asked to run the numbers for different scenarios, 1 to l, at 5% and 6% and 2 to 1 at 5% and 6% to see which would be best. Mr. Anderson said he thought it was a state law that to reduce the employees' contribution, the employees would have to vote to do that. He said the employees were given an increase of 6% on the 2 to 1 match in lieu of a pay raise. Councilman Bell said he wanted to discuss who really needed car allowances and he needed justification as to who really needed one and who did not. He said the Council had, at one time, discussed cutting them, and so far in the budget, they have cut none. Councilman Wilson reminded him that if there was a contractual relationship when that person was hired and he wanted to get a