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City Council Retreat Meeting — April 14, 2007 - Page 3 <br />GASB 45 only defines health benefits; other post employee benefits to employees beneficiaries or third party <br />for services rendered while they were active employees, retiree insurance categories — pension, health care. <br />Defined contribution plans — give so much money per year to retirees <br />Defined benefit plans — what we currently do — fund each year — employer defines. <br />If we continue defined benefits the City would need to put money into irrevocable trust to fund insurance for <br />retirees. <br />Implicit Rate Subsidy — Mr. Dolby reported Implicit Rate Subsidies occur due to retirees purchasing insurance <br />at the same premium rate as current employees. — GASB effective December 15, 2008 respectively. <br />The Sick Leave Buy Back Program was discussed. <br />Interim Finance Director Michael Dolby gave an overview of the Sick Time Buy -Back Program. <br />Purpose —is to reduce current sick leave liability and provide employees with money in their pockets. <br />Compensation — for Non -Civil Service Only <br />2006 Sick Liability (Non -Civil Service) $1,903,402.00 <br />Benefits to the City — Savings & Reduces Liability <br />Benefits to Employee, increase take home, offset rising health costs, increase ICMA. <br />Mr. Dolby explained the eligibility and proposed ideas. <br />Interim Finance Director Michael gave an overview of cash options <br />Option 1: CASH — current vested employee's only <br />Option 2: CASH — All Employees <br />ICMA account — employees cash option of ICMA Option <br />Interim Finance Director Michael Dolby gave an overview of how long to get liability off books and overview <br />of recommendations to stopping accrual. <br />Council will need to set new maximum sick time accrual. <br />Overview of options to implement Short Term / Long Term Disability were discussed <br />Council requested survey of other cities sick leave per year - the average number of sick leave used by <br />employees per year. <br />Council retired for a short break at 10:50 a.m. <br />Council returned at 11:00 a.m. <br />6. HOTEL/MOTEL FUND <br />Interim City Manager John Joems provided Mayor and Council an overview of the Fiscal Year 06-07 Annual <br />Commitments/Revenue <br />