Minutes 05/09/1995 - Laserfiche WebLink

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127 May 9, 1995 I recommend that you adopt an ordinance to ~uarantee $1,540,000 as the City's pro rata share of the Regional Jail Authority's debt. I also recommend your approval of a motion authorizing me to sign a Guaranty Agreement with the other participating jurisdictions committing the City to repay its pro rata share of the debt, if required." Motion by Mr. Hawks, and seconded by Mr. Pitts, to adopt the following ordinance, and was adopted by the following vote: "AN ORDINANCE AUTHORIZING A GUARANTY AGREEMENT WHEREBY THE CITY OF PORTSMOUTH WILL GUARA/~TEE 22% OF A NOT TO EXCEED $7,000,000.00 HAMPTON ROADS REGIONAL JAIL AUTHORITY VARIABLE RATE BOND ANTICIPATION GUARAITTEED LINE OF CREDIT NOT (HAMPTON ROADS REGIONAL JAIL PROJECT) SERIES 1995.I~ Ayes: Griffin, Hawks, Martin, Pitts, Webb Nays: Clemons Motion by Mr. Martin, and seconded by Mr. authorize the signing of a guaranty agreement, by the following vote: Hawks, to and was adopted Ayes: Griffin, Hawks, Martin, Pitts, Webb Nays: Clemons 95-234 - Letter from the City Manager recommending adoption of an ordinance amending the Portsmouth Supplemental Retirement System to include a provision permitting retirement at age 50 with at least 10 years of service. "The 1995 General Assembly approved legislation which will affect retirement benefits for City employees who are members of the Virginia Retirement System (VRS). Essentially, the provisions of the new law provide that an individual may retire at age 50, having at least 10 years of service, but with a reduction for every month prior to the employee reaching the normal retirement age of 55. This reduction in the amount of retirement benefits makes the actuarially determined cost of the retirement to the system equal to the same amount of funding needed for the individual if retirement occurred at age 55, thereby making the new provision cost neutral. Having this cost neutral feature on the VRS system persuaded the General Assen~bly to extend this benefit to not only state employees, but to all employees covered under the VRS system, including Portsmouth employees who are in VRS. I have had the Director of Finance contact the City's actuary regarding extending this ssane provision to the members of the Portsmouth Supplemental Retirement System. The actuary has indicated that putting a reduction feature of one-half of one percent (0.5%) per month, for each month the individual retires after attaining age 50, but before reaching the 55th birthday would be cost neutral to our system. It is with this neutral cost factor, coupled with the ability for some of our employees to take advantage of a reduced, but early retirement, that I recommend City Council adopt the attached ordinance authorizing this provision in the Portsmouth Supplemental Retirement System."