CITY COUNCIL BUDGET WORKSHOP
APRIL 10, 2003, 10:40 a.m.
CITY COUNCIL OF THE CITY OF ABILENE, TEXAS
CITY COUNCIL CHAMBERS OF CITY HALL
The City Council of the City of Abilene, Texas, met in Budget Workshop at 10:40 a.m., immediately following the Regular City Council meeting on April 10, 2003, in the City Council Chambers of City Hall. Mayor Grady Barr was present and presiding with Councilmen Norm Archibald, Kris Southward, John Hill, Jimmy McNeil, and Councilwoman Kay Alexander. Also present were City Manager Larry Gilley, City Attorney Sharon Hicks, City Secretary Jo Moore, and various members of the City staff. Councilman Anthony Williams was absent.
City Manager Larry Gilley recognized Ronnie Kidd, Director of Administrative Services and Judy Elmore, Human Resources Program Manager. Mr. Kidd distributed handouts and reviewed for Council the Compensation and Benefits as follows:
Compensation and Benefits
Compensation Plan Review
Salary Groups
Compensation Plan Evolution
1986
1994
1996
1999
Survey Analysis Groups
| Employees | Positions | Surveyed | |
| Police | 180 | 5 | 5 |
| Fire | 171 | 6 | 6 |
| R.15-44 | 640 | 165 | 34 |
| R. 45-59 | 120 | 77 | 21 |
| Management | 49 | 22 | 25 |
| Executive | 16 | 15 | 15 |
Summary of Survey Results
Spring 2000 – 2003 (%)
| Spring 2000 |
Police | Fire | R 15-44 | R 45-59 | Management | Executive |
| FY01 |
-12.64 | -14.79 | -13.07 | -17.73 | -15.41 | -5.51 |
| FY02 2002 |
-14.00 | -14.97 | -11.11 | - 2.58 | -13.78 | 0.06 |
| FY03 2003 |
- 6.00 | - 4.16 | - 8.31 | 0.12 | - 7.93 | -3.38 |
| FY04 | -4.88 | -3.90 | -8.76 | - 1.43 | -3.57 | 2.17 |
Retirement Plans
Texas Municipal Retirement System (TMRS)
Employee
7.0%
City of Abilene 13.63%
| COMPARISON OF TMRS BENEFITS ABILENE AND TEN SURVEY CITIES |
||||||||
|
City |
Employee Contri-butions |
City Match |
Updated Service Credits |
Incr. Retiree Benefit |
Vesting Require-ments |
Service Retirement Eligibility |
||
|
Rate (%) |
Year Effective |
Rate (%) |
Year Effective |
|||||
|
Abilene |
7% |
2-1 |
100% T |
2000 |
30% |
1994 |
10 years |
25 yrs-any age/10 yrs-age 60 |
|
Carrollton |
7% |
2-1 |
100% T |
1993R |
70% |
1993R |
5 years |
25 yrs-any age/ 10 yrs-age 60 |
|
Denton |
7% |
2-1 |
100% T |
2000R |
70% |
2000R |
5 years |
20 yrs-any age/ 10 yrs-age 60 |
|
Grand Prairie |
7% |
2-1 |
100% T |
1993R |
70% |
1993R |
5 years |
25 yrs-any age/ 10 yrs-age 60 |
|
Killeen |
7% |
2-1 |
100% T |
2003 |
70% |
2003 |
5 years |
20 yrs-any age/ 10 yrs-age 60 |
|
Lubbock |
7% |
2-1 |
100% T |
1998R |
70% |
2001R |
5 years |
25 yrs-any age/ 10 yrs-age 60 |
|
Midland |
7% |
2-1 |
100% T |
1992R |
50% |
1992R |
10 years |
25 yrs-any age/ 10 yrs-age 60 |
|
Odessa |
7% |
2-1 |
100% T |
2000R |
70% |
2000R |
5 years* |
20 yrs-any age/ 10 yrs-age 60 |
|
San Angelo |
7% |
2-1 |
100% T |
1995R |
70% |
1995R |
10 years |
20 yrs-any age/ 10 yrs-age 60 |
|
Waco |
6% |
2-1 |
100% T |
2003 |
70% |
2003 |
5 years |
20 yrs-any age/ 10 yrs-age 60 |
|
Wichita Falls |
5% |
2-1 |
50% T |
1997R |
70% |
1997R |
10 years |
25 yrs-any age/ 10 yrs-age 60 |
|
(Police Dept) |
7% |
|||||||
|
FY 03 |
T = Transfer Credits |
R = Annually Repeating |
* Odessa effective 05/01/03 |
|||||
Updated Service Credits
Last Update was in 2000
City’s Cost +0.08%
General Fund Expense $20,177
Retiree Service Credits
Last Update was in 1994
30% of CPI
Year 1 0.36% $ 90,797
Year 2+ 0.04% $ 10,089
50% of CPI
Year 1 0.68% $171,505
Year 2+ 0.05% $ 12,611
70% of CPI
Year 1 1.00% $252,214
Year 2+ 0.06% $ 15,133
Five Year Vesting
Cost to Implement 0.13%
General Fund $32,788
Retirement Eligibility
Reduce Service Eligibility from 25 to 20 years
City's Cost 0.19%
General Fund $47,921
Abilene Fireman's Relief and Retirement Fund
Employee 11.0%
City of Abilene 13.5%
Projected Cost to Increase City's Contribution
From 13.5% to 13.75% 0.25%
$20,279
From 13.5% to 15.0% 1.0%
$81,114
| PROJECTED COSTS AND OPTIONS FOR UPDATES FOR TEXAS MUNICIPAL RETIREMENT SYSTEM 2/12/2003 |
||||
| Assumptions |
% Increase to Retirement Plan Contribution |
Total TMRS Payroll FY03 (w/o Firefighters): |
General Fund Portion of Payroll FY 03: |
Non-General Fund Portion of Payroll FY03: |
| $32,047,161 |
$25,221,397 |
$6,825,764 |
||
| Updated Service Credits |
0.08% |
$25,638 |
$20,177 |
$5,461 |
| Retiree Annuity Increases |
||||
| Options: |
||||
| 70% OF CPI - Year 1 |
1.00% |
$320,472 |
$252,214 |
$68,258 |
| Year 2+ |
0.06% |
$19,228 |
$15,133 |
$4,095 |
| 50% OF CPI - Year 1 |
0.68% |
$217,921 |
$171,505 |
$45,415 |
| Year 2+ |
0.05% |
$16,024 |
$12,611 |
$3,413 |
| 30% of CPI - Year 1 |
0.36% |
$115,370 |
$90,797 |
$24,573 |
| Year 2+ |
0.04% |
$12,819 |
$10,089 |
$2,730 |
| Five Year Vesting |
0.13% |
$41,661 |
$32,788 |
$8,873 |
| 20 Year Retirement Eligibility |
0.19% |
$60,890 |
$47,921 |
$12,969 |
| PROJECTED COSTS TO INCREASE CITY'S CONTRIBUTION FOR FIRE RETIREMENT 2/12/2002 |
||
| Assumptions |
% Increase to Retirement Plan Contribution |
Based upon Budgeted Salaries for Firefighters FY03: |
| $8,111,407 |
||
| Increase Options: |
||
| From 13.5% to 13.75% |
0.25% |
$20,279 |
| From 13.5% to 14.0% |
0.50% |
$40,557 |
| From 13.5% to 14.25% |
0.75% |
$60,836 |
| From 13.5% to 14.5% |
1.00% |
$81,114 |
Discussion among Council and staff included: 1) all employees being covered by Social Security except Police and Fire, who in 1986 voted not to be covered; 2) inequities in budgetary costs between Fire Employees & other city employees, and 3) for Police and Fire to opt back into Social Security, which would be a 6.2% impact to the budget, would require City Council authorization before they could vote on the issue.
Mayor Barr requested staff provide information concerning the ten survey cities' fire, police, and all other employees participation in Social Security, and in reviewing retiree benefits, how Abilene compares to the ten survey cities in the area of health insurance.
Mr. Gilley stated the issue of equity is important and although what is equitable, depending on many factors, can be difficult to determine, all the City plans will be reviewed to determine what improvements may be needed.
No Council action was required.
There being no further business, the meeting was adjourned at 11:30 a.m.
________________________ _____________________________
Jo Moore Grady Barr
City Secretary Mayor