HomeMy Public PortalAbout062-2005 - DROP Levy AppealORDINANCE NO. 62-2005
AN ORDINANCE TO PETITION FOR AN INCREASE TO THE 2006 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, the DROP expires December
31, 2007 and all participants must exit the DROP by that date; and
WHEREAS, The City of Richmond’s Police Pension Funds and Fire Pension Fund have had one (1) participant exit the DROP in 2005 and three (3) participants are expected to exit the DROP
in 2006, for a total DROP benefit to be paid of $290,951.00; and
WHEREAS, I.C. 36-8-8.5-17 provides a formula to calculate excess levy amounts totaling $116,200.00 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 _6th _ day of September __ 2005 by the Common Council of the City of Richmond, Indiana.
S/S Bruce Wissel________, President
(Bruce Wissel)
ATTEST: _S/S Karen Chasteen____, City Clerk
(Karen Chasteen)
PRESENTED to the Mayor of the City of Richmond, Indiana, this 7th__ day of September___, 2005, 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 _7th_ day of September____, 2005, at 9:05 a.m.
S/S Sarah L. Hutton________, Mayor
(Sarah L. Hutton)
ATTEST: S/S Karen Chasteen______, City Clerk
(Karen Chasteen)