2006-10-09 Regular Meeting and Workshop Meeting of La Porte City Council

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City Council Regular and Workshop Meeting —October 9, 2006 Page 9 Mayor Porter noted we made a pretty significant adjustment based on the initial compensation study or wage study to the budget. We are pressing $400,00.00 or $450,000.00 since we adopted the budget on those issues. The money has to come from somewhere. Interim City Manager John Joerns noted he knew Council was dealing with and wrestling with some difficult decisions. He noted the timeliness needed on this item due to open enrollment activities and deadlines in November and December. Mayor Porter — We would have to prepare an ordinance for future action of we want to freeze retiree rates for the 06 levels. Assistant City Attorney Clark Askins confirmed it would take an additional ordinance at a future meeting because the ordinance this evening did not address freezing retiree rates. Interim City Manager John Joerns noted the ordinance being passed this evening addresses plan eligibility and not budget. Mayor Porter noted there will be a budget impact if retiree rates are frozen. Interim City Manager John Joerns noted yes, if you freeze the retiree rates, we have to come back with that budget adjustment at the next Council meeting in the amount of $171,000.00 Mayor Porter noted that to accomplish no increase for retirees or employees it would have to be frozen at cities contribution level for 2006. Interim City Manager John Joerns indicated yes. Mayor Porter asked if that would accomplish that. Interim City Manager John Joerns noted for the next plan year. Mayor Porter noted again at an approximate cost of $200,000.00 dollars Councilmember Clausen asked if that was the way the ordinance was written? Interim City Manager John Joerns noted, no the ordinance language is a separate item from the budgetary action. The ordinance does not lock you into budgetary dollars it talks about access to the health plan and under what conditions and access to the health plan with the one time deferral now. Councilmember Rigby inquired clarification that there is no action this evening on the budgetary consideration. Councilmember Clausen requested the same clarification. Interim City Manager John Joerns noted we do not have an action item this evening on the budgetary items. He stated if Council directed staff to freeze retiree costs, he would bring back at a future meeting for action. Mayor Porter stated but in effect that is the trigger mechanism for the budget