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Yeas: (5) Crabtree, Dallas, Haskell, Roop, Teague. <br /> <br />Nays: (0) None <br /> <br />TUESDAY, JUNE 22, 1999 <br /> <br /> Council next considered adoption, on second reading, of Ordinance No. 99-5 establishing the <br />City's Budget and Tax Rates for Fiscal Year 1999-2000. Mayor Crabtree noted that two amendments to <br />the budget had been made, providing for salary increases of 2.95% for both the City Manager and the City <br />Attorney. Mr. Sam Owens of the City Electric Department then addressed Council concerning Council' s <br />action to opt out of the program offered by the Virginia Retirement System which would allow <br />participants in the system to retire with full benefits when they reached age fifty with at least thirty years <br />of service. Mr. Owens stated that the matter was one of both fairness and money for the employees who <br />might qualify for the benefit. He stated that when implemented the City's Market Based Pay Plan <br />included both City and School non~teaching employees, and that this was taken to mean a fair and just <br />system for all employees. Mr. Owens said that the 30/50 Retirement Benefit was another form of <br />compensation, and listed a number of other jurisdictions that had adopted the benefit, including Henry <br />County. He added that there were 621 City and non-teac'ning School employees, and that the 350 School <br />employees would receive the benefit. He also noted that both the Police and Fire Service personnel had <br />an early retirement plan, yet the balance of 190 City employees would be left without an early retirement <br />option. Mr. Owens noted that only 42 such City employees would be eligible for the 30/50 Plan. He <br />further stated that this would be very unfair, and that Police, Fire and teachers had lobbyists to look after <br />their interests, which was not true for the balance of City personnel. Mr. Owens then stated that he had <br />calculated the potential cost to the City for the program should the balance of City employees be included, <br />and said that overall retirement costs would in all likelihood be no greater than if the plan were not <br />ad~, through the year 2002. Mr. Owens also pointed out that if there was an additional cost to the <br />City In the future for participation in the program there was time for the City to prepare for this cost, and <br />that savings in benefit costs achieved from replacement of long term employees with new employees <br /> <br /> <br />