HomeMy Public PortalAbout058-2006 - Pension Levy AppealORDINANCE NO. 58-2006
AN ORDINANCE TO PETITION FOR AN INCREASE TO THE 2007
MAXIMUM LEVY DUE TO COST OF THE DEFERRED RETIREMENT
OPTION PLAN
WHEREAS, The City of Richmond funds the retirement benefits of members of
the 1925 and the 1953 Police Pension Funds and the 1937
Firefighter Pension Fund; and
WHEREAS, The State of Indiana enacted into law, in 2002, through Senate Bill
60, the Deferred Retirement Option Plan (DROP); and
WHEREAS, Senate Bill 60 in 2002 (DROP) provides that beginning January 1,
2003 an eligible employee may enter the DROP. Under the current
provisions of the law, there is no expiration date to exit the DROP,
however, an eligible employee can only elect to enter the DROP
once in his or her lifetime; and
WHEREAS, The City of Richmond's Police Pension Funds and Fire Pension
Fund have had one (1) participant exit the DROP in 2005, three (3)
participants are expected to exit the DROP in 2006 and ten (10)
participants are expected to exit the DROP in 2007 for a total
DROP benefit to be paid in 2007 of $882,478.00; and
WHEREAS, I.C. 36-8-8.5-17 provides a formula to calculate excess levy
amounts totaling $305,376.00 that may help fund the portion of
this benefit that is not reimbursed by Pension Relief.
NOW THEREFORE, BE IT ordained by the Common Council of the City of Richmond,
Indiana, as follows:
SECTION 1. APPROVAL OF APPEAL
BE IT RESOLVED that the Common Council approves the City of Richmond's appeal to
the Local Government Tax Control Board and Department of Local Government
Finance for an excessive levy due to additional costs of the DROP in their Police
Pension Funds and Fire Pension Fund, pursuant to I.C. 6-1.1-18.5-16. This appeal shall
be filed with the Department of Local Government Finance office in Indianapolis.
SECTION 2. EFFECTIVE DATE
This Ordinance shall be in full force and effect from and after its adoption by the City
Council and signing by the Mayor.
Passed and adopted this _5th _ day of _September 2006 by the Common Council of
the City of Richmond, Indiana.
S/S Karl Sharp , President
(Karl Sharp)
ATTEST: S/S Karen Chasteen City Clerk
(Karen Chasteen)
PRESENTED to the Mayor of the City of Richmond, Indiana, this _6th_ day of
September 2006, at 9:00 a.m.
S/S Karen Chasteen City Clerk
(Karen Chasteen)
APPROVED by me, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this
_6th_ day of _September 2006, at 9:05 a.m.
S/S Sarah L. Hutton Mayor
(Sarah L. Hutton)
ATTEST: S/S Karen Chasteen City Clerk
(Karen Chasteen)