Minutes 04/11/1995 - Laserfiche WebLink

Home Browse Search

TUESDAY, APRIL 11, 1995 Upon motion, duly seconded and by unanimous vote, Council accepted and appropriated (to the Police Department's forfeited assets line item) $445.89 received from the U. S. Department of Justice resulting from the seizure of forfeited assets. Terry L. Roop, Chief of Police, was present to respond to questions from the members of Council. Council considered adoption of a Resolution providing a 3% benefit increase for current and future retirees of the City under the Virginia Retirement System (VRS). City Manager Earl B. Reynolds, Jr. stated that in 1994, the VRS had notified the City that the General Assembly had approved a 3% benefit increase to "State" participants in the VRS effective October 1, 1994. This increase was granted by the General Assembly as compensation for the fact that VRS benefits had become subject to State income taxation as one result of a lawsuit filed by Federal retirees over the taxation of Federal retirement benefits. The legislation provided that "non-State" participants in the VRS could be included in the 3% benefit increase if the local jurisdictions agreed to pay for the costs (estimated to be $103,000 in additional expense for the City beginning in 1996). Mr. Reynolds noted the City Administration was very concerned about the original legislation in that it considered it to be an "unfunded mandate". These concerns were discussed with local legislators during Council's annual meeting with the legislators. Subsequently, Delegate Wm. Roscoe Reynolds introduced legislation which would require the State to fund the increase for all participants of the VRS, however, this legislation was not considered by the State Senate Finance Committee. (At this point in the meeting, 7:45 P.M., Councilman Crabtree arrived.) In response to questions from the members of Council, Finance Director Richard Fitts noted the City's current rate for retirement expense is 14.85% of base salary and the