Minutes 07/12/1977 - Laserfiche WebLink

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231 July 12. 1977 On motion Of Mr. Barnes and seconded by Mr. Oast, the following ordinance was approved on first reading, and by unanimous vote: "AN ORDINANCE TO APPROPRIATE $80,000 FROM THE CAPITAL IMPROVEMENT FUND FOR REPLACEMENT AND REPAIR OF SIDEWALKS, CURBS AND GUTTERS." ?7-252 "Consideration of an ordinance on first reading to Anti-recession Fiscal Assistance Fund for the continuation of the in Portsmouth. appropriate $25,000 from the VPISU Extension Program This ordinance will provide the necessary local funds to pay one half of the salaries of three extension agents and the full salary of a clerk stenographer for the continuation of thc FPI & SU Extension Program in Portsmouth. Since the initiation of the program, the local sha~ required has been funded through both Community Development and Title XX funds. Due to recent changes in regulations of both programs it has become necessary to find another source of fund ing. The program has been well received by the community and continuation of the program has been endorsed by the Department of Social Services, the Parks and Recreation Department, and the Portsmouth Redevelopment and Housing Authority, each of which has worked closely with VPI & SU on various projects. Areas of~activities include educational programs in family resource management, food and nutrition, home and garden hortizulture, and 4-H. Two technicians, fund- ed partially through Community Development funds, work exclusively in SOuthside to assist res] dents affected by redevelopment activities. The City Manager recommends adoption on first reading." On motion of Mr. Barnes and seconded by Mr. Elliott, the following ordinance was approved on first reading, and by unanimous vote: "AN ORDINANCE TO APPROPRIATE $25,000 FROM THE ANTI-RECESSION FISCAL ASSISTANCE FUND FOR THE CONTINUATION OF THE V~PI~SU EXTENglON ~ROGRAM"IN~PO~TSMOUTH.~ 7?-253 "Consideration of an ordinance te amend Chapter 31 of the City Code pertaining to the Portsmouth Supplemental Retirement System and the Portsmouth Fire and Police Retirement System. In 1975, as a result of the Uniform Pension Adt of 1974, the City was required to make changes in the provisions for retirement especially in the areas of westing; and, ordinary and service connected disabilities. Many of the changes that were required at that time were to bring the City into 90% comparability with the State Retirement System. We have since been advised by the actuaries representing VSRS and the City of Portsmouth that ?5% comparability in many of these areas is acceptable. The proposed chan~es included in this amendment will reflect this change from 90% to ?5% comparability, as well as some minor changes recommended by the Retirement Board for more efficient administration and application of the retirement benefits. A copy of the letter from the Board of Trustees of the Retirement Systems is at- tached for your information. The City Manager recommends adoption." The following report was presented by Richard F. Wood, Jr., Chairman, Portsmouth Retire- ment System: "At a special meeting of the Board of Trustees of the Portsmouth Supplemental Retirement System and Portsmouth Fire and Police Retirement System held May 13, 1977 the Board reviewed in detail several proposod amendments to the City Code pertaining to retirement. At the conclusion of the meeting and upon unanimous vote of all members present, the Board of Trustee acted to recommend to the Portsmouth City Council adoption of the amendments effective July 1, 1977. A summary of the changes and their justification is attached~andsome general background as to how the recommendation came about is discussed as follows. In 1975 several significant increases in benefits were made to the System to comply with a State requirement that local systems be substantially comparable to the State System. In 1976 and again in 1977 the State Legislature reduced the comparability requirements because local systems throughout the State were finding inequities being created within their own systems as well as experiencing or expecting great expense due to changes the original law required. The comparability requirement enacted in the 1977 Legislature diluted the standard~ to the extent that ~he benefit levels the Portsmouth Systems had before 197S would be well within the new state requirement; in other words the changes the City made in 1975, and the expense since then due to the changes, are now unnecessary mn terms of the new State dictates~ Some idea as to what the cost of the 1~7S amendments has been can be seen by the followi~ The fiscal year 1974-75 Supplemental retirement cost, before the changes, was $422,000 and the FY ?5-76 cost, after the changes, was $750,500 or a one year increase of $328,500. A con- servative estimate of the amount of the increase attributable to the changes is 60~ or $200,000. The Fire and Police System went from $930,700 to $1,282,500 or an ~ncrease of $351,800. A conservative estimate of the amount of that increase attributable to the changes is 15% or $50,000. By the end of FY 76-77, the changes will have cost the City at least one- half a million over the two year period. Most of the amendments proposed now involve a scaling down of benefit increases granted in 1975. The increases granted in 1975 were under the auspices of state comparability requir( ments and not made under any employee pressure or demand to increase benefits. Most of the amendments are a compromise on the t975 changes, that is to say while the amendments are a reduction on present levels, in most cases benefits will still be greater than the levels in effect before the 1975 changes. A few of the proposed amendments involve improvements in language, improvements in benefit balance between the two ystems and between the various types of benefits, and benefit improvements.