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HomeMy WebLinkAbout06/28/1990 (2) VICE MAYOR REFERRAL (PROPOSED ORDINANCES ONLY) DATE OF REFERRAL: June 28, 1990 REFERRED TO: Personnel Committee (Sue Whitfield) ITEM: INCREASE IN MONTHLY ALLOWANCE (Proposed) An Ordinance of the Council of the City of Bakersfield Adding Subsection E. to Section 2.92.330 of the Bakersfield Municipal Code Relating to Increases.in Monthly Allowance Paid by the Fire Department Pension Fund. BACKUP MATERIAL ATTACHED: Yes STATUS: To Council Committee on Committee Report No. Sent to Council on Public Hearing on Ordinance Adopted (date) Proposed Ordinance Canceled (date) Other cc: Carol Williams Mary Ellen Gonzales REFER7-90 JP " MEMORANDUM i J. DALE HAWLEY '~ CiTY MANAGER June 25, 1990 ' CITY OF BAKERSFIELD Vice Mayor Ken Peterson ~ - FROM: Arthur J. Saalfield, City Attorney SUBJECT: VICE MAYOR REFERRAL OF PROPOSED ORDIN~ Please refer the following proposed ordinance to whichever committee you deem appropriate: 1) INCREASE IN MONTHLY ALLOWANCE. Background: Pursuant to Municipal Code Section 2.92.010, the Fire Department Relief and Pension Fund Board consists of the Mayor, City Manager, Finance Director, Fire Chief and three fund participants elected by the participants. In March 1990, Peat, Marwick, Main & Company completed an actuarial study of the Fire Department Relief and Pension Fund. The results of the study were presented to the Pension Board that met on May 14, 1990. The study indicates that the fund is actuarially sound since it has $600,000 of uncommitted assets over and above the amount required to fully fund the actuarially projected liabilities. Therefore, staff has recommended and the Pension Board concurs with a proposed additional ten percent increase in monthly benefits effective July 1, 1990. If this action is implemented, the uncommitted assets will be reduced actuarially by about $261,000. The proposed increase will not impair the financial integrity of the plan and it will continue to be fully funded with $338,900 of uncommitted assets. AJS/meg ORD-REFERRAL\ PENSION.MEM Attachment cc: J. Dale Hawley? Dennis Needham Greg Klimko Bill Descary ' DRAFT ORDINANCE NO. AN ORDINANCE OF THE COUNCIL OF THE CITY OF BAKERSFIELD ADDING SUBSECTION E. TO SECTION 2.92.330 OF THE BAKERSFIELD MUNICIPAL CODE RELATING TO INCREASES IN MONTHLY ALLOWANCE PAID BY THE FIRE DEPARTMENT PENSION FUND. BE IT ORDAINED by the Council of the City of Bakersfield as follows: SECTION 1. Subsection E. is hereby added to Section 2.92.330 of the Bakersfield Municipal Code to read as follows: 2.92.330 Increase in monthly allowance - Retirements or deaths for period. E. In addition to the increases specified in Subsection C. of this section, commencing on July 1, 1990, the schedule provided in Subsection A. of this section shall be increased by a one time additional ten percent cost-of-living increase, and monthly payments will be rounded to the next highest even dollar amount after applying this increase. SECTION 2. This Ordinance shall be posted in accordance with the City Charter provisions and shall become effective thirty (30) days from and after the date of its passage. o0o I HEREBY CERTIFY that the foregoing Ordinance was passed and adopted by the Council of the City of Bakersfield at a regular meeting thereof held on , by the following vote: CITY CLERK and Ex Officio Clerk of the Council of the City of Bakersfield APPROVED CLARENCE E. MEDDERS MAYOR of the City of Bakersfield APPROVED as,to form: ARTHUR J. SAALFIELD CITY ATTORNEY of the City of Bakersfield LCM/meg FIRE-PEN.ORD 5/31/90