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<br />lREQ.lT FOR CITY COUNCIL AGENDA ~M <br /> <br />Agenda Date Requested: October 25 <br /> <br /> <br />Administrative Services <br /> <br />Requested By: <br /> <br />Report <br /> <br />x <br /> <br />Ordinance <br /> <br />Exhibits: <br /> <br />Ordinance <br /> <br />SUMMARY & RECOMMENDATION <br /> <br />The Texas Municipal Retirement System Act allow member cities to adopt Updated Service Credits <br />and annuity increases, providing cities the opportunity to upgrade retirement benefits for both active <br />employees and retirees who are currently receiving a monthly annuity from the System. <br /> <br />By adopting the 100% Updated Service Credit effective January 1, 2000, member's retirement <br />benefit will be recalculated based on the member's average monthly salary for the previous three <br />years. The member's retirement benefit is "updated" based on the higher wages earned in recent <br />years. <br /> <br />Adoption of the ordinance also increases the monthly annuities being paid to its retirees. The <br />increase that can be granted is calculated based on a maximum of 70 % of the change in the <br />Consumer Price Index, less any previously granted increases. <br /> <br />This ordinance is non-repeating and will be effective January 1, 2000. Any future updates will <br />require adoption of a new ordinance. Should the City choose to not adopt this ordinance, our <br />contribution will still decrease $128,260 in the year 2000. We were anticipating such a decrease <br />when we adopted the 20 year retirement option. By adopting this ordinance, the City's contribution <br />rate will be $114,518 less than the 1999 contribution. <br /> <br />Action Required by Council: Adopt Ordinance 99-1875-G, authorizing Updated Service Credits <br />and increased annuities for 2000. <br /> <br />Availability of Funds: <br />General Fund <br />_ Capital Improvement <br />Other <br /> <br />Water/Wastewater <br />_ General Revenue Sharing <br /> <br />Account Number: <br /> <br />Funds Available: <br /> <br />Yes <br /> <br />No <br /> <br />Approved for City Council Al!enda <br /> <br />~~ -r: ~~ <br /> <br />Robert T. Herrera <br />City Manager <br /> <br />\0. ~O.C\'\ <br />Date <br />