Minutes 05/28/1991 - Laserfiche WebLink

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TUESDAY, MAY 28, 1991 that.= the retirement program offered to local governments is~ different from the plan offered to School Divisions and therefore the two programs cannot be compared. In response to a question by Councilman Oakes, Mr. Brown said that' the City Administration would monitor the costs and savings resulting from the program from FY91-92 forward. Councilman Oakes stated that Council had guaranteed that the plan would not result in any costs to taxpayers. Vice- Mayor Groden disagreed with this, stating that he did not feel that this could be guaranteed. Several Councilmen said that the program's costs and benefits should be tracked. Councilman Oakes criticizedthe State for making the early retirement plan "complicated" and difficult to understand. Mr. Brown reviewed a written report presented to Council regarding his response to concerns voiced by Mr. Worth H. Carter, Jr. at the May 14, 1991 Council meeting. Mayor McClain reported that he and Councilman Oakes had reviewed' the salary calculations used by the Administration in determining the cost of personnel services contained in the FY91-92 Budget and that they were satisfied with the methodology used in arriving at these costs. Mr. Brown noted that the Classification and-Pay Plan is the basis for determining all personnel services costs and that prior to entering salaries and any line item, a detail of salary calculations is prepared which shows the employee's name, job title, pay range and step, salary rate, and the total proposed annual salary for each employee. Mro Brown's report noted that the total cost of payroll for FY91-92 is $140,454 greater than FY90-91. This cost increase is due partially to the fact that the 2% COLA increase in the second part of-FY90-91 began December 1, 1990, which was for a 7-month period. When the 2% COLA is fully annualized, the increased cost amounts to $51,924. The projected cost of the Pay Plan is $56,452, leaving a balance of the increase of $32,078, which is the cost of annualizing longevity, training and merit increases given during FY90-91.