LEGISLATIVE, FINANCE AND ADMINISTRATION COMMITTEE

The Legislative, Finance, and Administration Committee meeting was held on January 9, 2006, at 5:32 p.m. with Chairman Salters presiding. Members present were Mr. Hogan, Mr. Shevock, and Mr. Shelton. Mr. Slavin was absent. Members of Council present were Mr. Carey, Mrs. Russell, Mr. Sadusky, Mr. Ritter, and Mr. Ruane. Mayor Speed was also present.

AGENDA ADDITIONS/DELETIONS

Mr. Hogan moved for approval of the agenda, seconded by Mr. Shelton and unanimously carried.

Pension Actuary Study

Mrs. Mitchell, Finance Director/Treasurer, provided members with the Pension Actuarial Analysis for the General Employee Pension Fund and Police Pension Fund, which depicts the schedule of funding progress. She explained that this information is used for preparation of the budget.

Mrs. Mitchell also reviewed the changes in percentage in payroll for the General Employee Pension Fund (contribution rate) for fiscal years July 1, 1998 through July 1, 2005. This reflects a $281,202 (3.81%) estimated increase over the fiscal year 2006 Budget. She explained the importance of the City’s investments in providing an increase and the effect it has on the unfunded liability. As of July 1, 2005, the unfunded accrued liability for the General Employee Pension Fund totals $24,975,306 and for the Police Pension Fund totals $5,906,582.

Mr. Hogan moved to recommend acceptance of the Pension Actuary Study Report as presented by staff, seconded by Mr. Shevock and unanimously carried.

Actuarial Analysis of Postretirement Benefits

Based on a study conducted by Palmer & Cay, Mrs. Mitchell, Finance Director/Treasurer, provided a report of the GASB Postretirement Benefits Summary of Liability and Expenses as of July 1, 2005. If the City discontinued medicare reimbursements, there would be a savings in the amount of $603,000. The total unfunded actuarial accrued liability, including medicare reimbursement, is $51,269,000. The annual required contribution over budget is $3,271,975, which includes the normal cost, in the amount of $1,340,000, and the amortization payment of unfunded liability, in the amount of $3,335,000, less what we currently pay for retiree’s, in the amount of $1,403,025.

Responding to Mr. Ruane, Mrs. Mitchell stated that a Benefits Committee has been established and that employee contract negotiations have begun. She assured members that a plan will be presented with various options for members of Council to consider during the budget review process.

Mr. Hogan moved to recommend acceptance of the GASB Postretirement Benefits Summary of Liability and Expenses at July 1, 2005 as presented by staff. The motion was seconded by Mr. Shelton and unanimously carried.

Mr. Hogan moved for adjournment, seconded by Mr. Shevock and unanimously carried.

Meeting Adjourned at 6:16 P.M.

                                                                                           Respectfully submitted,

                                                                                           Reuben Salters

                                                                                           Chairman

RS/jg

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