Minutes 05/14/1991 - Laserfiche WebLink

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.... · .~ zz.~=~! TUESDAY. MAY 14. 1991 qu sti a d e= un6ii,-s=decision to participate in the Early Retirement-Program due'tO" the following reasons: the inclusion of the elimination.of four positions; no increase in estimated health insurance costs; he questioned the workers compensation calculations; the salary levels did. n6t match those C'~ntained in the Pay Plan effective 12/1/90; the ages of the employees who were included in the program were not considered; and that Council had been asked to "sign a blank check" when it had been asked to participate- Mr. Carter said that the potential savings resulting from the program should be included in the proposed FY91-92 Budget. Mr. Carter, in recommending a ,,reconciliation" of the projected salaries for City employees for FY91-92 to the proposed budget, stated that he felt Council would find that ,,~ubs~'antial" increases were included in the proposed budget that may not in fact take place during FY91-92. Mr. Carter said that if this reconciliation were done, Council would find that no increase in water or sewer rates was necessary and that there exists a possibility of a decrease in the real &atate tax rate. Mr. Carter, reading from the 1990 Audit Report of the City, q~oted an unfunded pension benefit obligation of $7,020,336- Mr. Carter said that the unfunded pension benefit obligation in the teachers pool for the stated State of Virginia as of June 30, 1989 was $2,044,149,000. Mr. Carter~ 'that the Virginia Retirement System is ,,grossly under-funded" and that any additional'liabilitY added to the System under an early retirement program 'woUld lead to higher costs. Councilman Oakes asked Mr. Carter to provide a written statement summarizing his comments to Council There being no other public comment, Mayor McClain declared the public hearing closed- ~Mr' Brown, in response to Mr Carter's comments, stated that the budget material provided to Mr. Carter may have contained the 3% original cost-of-