02 Council Min 08-26-04 - Laserfiche WebLink

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Special City Council Meeting August 26, 2004 Page 3 in stages. It was decided this would affect employees that have already retired. Following a lengthy discussion of percentages and insurance options, it was decided to implement 10% or the contribution of current employees, whichever is greater, and research to see how much that contribution will be raised over time. A motion to accept this contribution rate was made by Councilman Bell and seconded by Councilman Guest. The motion carried 7 ayes, 0 nay. The Council agreed this benefit was for current employees and retirees and would not be available to new hires. Interim City Manager Townsend said they were hoping to have the Personnel st Manual completed by October 1 and the 80/20 Plan would be in the Manual. Finance Director Anderson said if the Council implemented the freeze in the step pay for a year, that would amount to a savings of about $68,000.00. He said this freeze would be for everyone. It was decided to make a decision on the step pay plan later. On a discussion concerning the pension, Finance Director Anderson said the savings on a 1 to 1 match at 6% and a 2 to 1 match at 6% would be $416,035.00, including General Fund and Water and Sewer Fund, with $288,057.00 being General Fund only. Finance Director Anderson said the Council could change the match, but they couldn’t change the percentage without a vote by the employees ,according to law. Different percentages at different matches and total savings were discussed at length. Mayor Fendley explained that the 1 to 1 match at 6% was already in the budget and there wouldn’t need to be a motion unless the Council wanted to amend that. Councilman Bell made a motion to go to 1 ½ to 1 match at 6%. The motion failed for lack of a second. After discussing the public hearing and publication dates, it was decided to set the Public Hearing for Thursday, September 9, 2004 at 6 p.m.