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Regular City Council Meeting <br />January 12,2004 <br />Page 24 <br /> <br />TMRS sometime in the sixties and the same state law says that once you are in <br />the plan, you have to stay in it until all obligations are fulfilled. Councilman <br />Bell said some cities were looking at private plans, in which case, those city <br />would have to offer both plans. <br /> <br />Councilman Guest said the next plan was the FRRF, which covers the firemen. <br />The firemen contribute 10% of their pay with an 11.1% match by the city. This <br />costs the City $220,569.00 annually. The employee receives a City <br />contribution of $3869.00 annually. Councilman Guest discussed legislation <br />recently passed concerning non-statewide retirement programs, which <br />preserves the benefits at the current contribution levels. Mr. Anderson said that <br />current TMRS legislation had reduce the amount of years for vesting from 10 <br />to 5. He also stated that under the Fire Department system, they have to have <br />20 years and be 55 to meet the minimum requirement. He also explained that <br />in TMRS, the employee would have to be 60 to draw the retirement. <br /> <br />Councilman Guest said that Exhibit 5 was an attachment on car allowance, <br />which was another thing they discussed. He indicated the last four listed were <br />for the Health Department. Councilman Plata felt like the allowances needed <br />to be cut or at least reduced. <br /> <br />Councilman Guest, in summary, said that retirement and health benefits <br />accounted for nearly 50% what is left of the property taxes. He reminded the <br />Council that for every $107, 000.00 trimmed from the budget represented a <br />penny of tax per $100.00 property valuation. He also stated that property taxes <br />are not the largest source of income for the city, but it basically balances the <br />books. Revenues also come from sales tax, fees and money for services <br />performed. <br /> <br />Councilman Guest said the only monetary beneficial recommendation was on <br />the changes to the health insurance but the members of the committee had <br />individual opinions concerning the direction of future benefit considerations. <br />He felt that although it began as a process to review and possibly inform, it <br />became a process of gathering information, which the committee is respectfully <br /> <br /> <br />