HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 02/16/2016 - FIRST READING OF ORDINANCE NO. 023, 2016, APPROPRIAgenda Item 6
Item # 6 Page 1
AGENDA ITEM SUMMARY February 16, 2016
City Council
STAFF
Jerry Schiager, Police Deputy Chief
SUBJECT
First Reading of Ordinance No. 023, 2016, Appropriating Prior Year Reserves in the General Fund for the City
of Fort Collins 2016 Contribution to the Employees' Retirement Health Savings Plans for Members of the
Police Services Collective Bargaining Unit.
EXECUTIVE SUMMARY
The purpose of this item is to fund the City’s contribution to employees’ Retirement Health Savings (RHS)
plans for members of the Police Services Collective Bargaining Unit. On December 1, 2015, Council approved
the Collective Bargaining Agreement with Bargaining Unit members of Police Services. As part of this contract,
the City agreed to make contributions to the RHS plans of Bargaining Unit members. This Ordinance transfers
the money from prior year reserves to pay this cost, which is estimated to be $225,000.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
BACKGROUND / DISCUSSION
On December 1, 2015, City Council approved the Collective Bargaining Agreement with members of the Police
Services’ Bargaining Unit. In accordance with Article 33 of the Agreement, the City agreed to make a
contribution to the employees’ RHS plans based on the employees’ years of service. The applicable section of
the agreement states:
Article 33: RETIREMENT HEALTH SAVINGS AND DEFERRED OMPENSATION
A. Employees shall participate and contribute to a retirement health savings (“RHS”) plan administered by
ICMA-RC based on the contribution in Schedule A below.
B. The City shall participate and contribute to an RHS plan administered by ICMA-RC on behalf of the BU
members of the RHS plan based on years of service to the City and as employees of Fort Collins
Police Services, based on the contribution in Schedule A below.
C. For those employees hired prior to March 31, 1986, the City shall contribute one and forty-five
hundreds of a percent (1.45%) of the employee’s base salary into the RHS Plan.
D. Employees shall have the right to invest the contributions how they wish in accordance with ICMA
guidelines and according to the Plan’s investment options. A payroll deduction account shall be
designated whereby the contributions are deducted and deposited directly into the employee’s RHS
Plan on behalf of the employee in accordance with the applicable ICMA-RC guidelines.
Agenda Item 6
Item # 6 Page 2
Schedule A
Years of Service Percent of Contribution (Employer and
Employee)
0 - 9.99 years of service 1.0% of base salary
10 - 19.99 years of service 1.25% of base salary
20 years of service until retirement 1.5% of base salary
This Ordinance provides funding from prior year reserves to pay for this agreed-upon amount.
CITY FINANCIAL IMPACTS
The estimated cost of these RHS Plan contributions for Bargaining Unit members in 2016 is $225,000.
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ORDINANCE NO. 023, 2016
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING PRIOR YEAR RESERVES IN THE GENERAL FUND FOR
THE CITY OF FORT COLLINS 2016 CONTRIBUTION TO THE EMPLOYEES’
RETIREMENT HEALTH SAVINGS PLANS FOR MEMBERS OF
THE POLICE SERVICES COLLECTIVE BARGAINING UNIT
WHEREAS, on December 1, 2015, City Council adopted Resolution 2015-104 approving
a collective bargaining agreement between the City and the Northern Colorado Lodge #3 of the
Fraternal Order of Police (“CBA”); and
WHEREAS, one of the terms of the CBA requires the City to make contributions to the
retirement health savings plans of the bargaining unit members covered by the CBA; and
WHEREAS, the estimated cost for the 2016 contribution is $225,000; and
WHEREAS, Article V, Section 9, of the City Charter permits the City Council to make
supplemental appropriation by ordinance at any time during the fiscal year, provided that the
total amount of such supplemental appropriation, in combination with all previous appropriations
for that fiscal year, does not exceed the current estimate of actual and anticipated revenues to be
received during the fiscal year; and
WHEREAS, Article V, Section 9 of the City Charter permits the City Council to
appropriate by ordinance at any time during the fiscal year such funds for expenditure as may be
available from reserves accumulated in prior years, notwithstanding that such reserves were not
previously appropriated; and
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the City Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above.
Section 2. That there is hereby appropriated from prior year reserves in the General
Fund the sum of TWO HUNDRED TWENTY FIVE THOUSAND DOLLARS ($225,000) for
expenditure in the General Fund for the City of Fort Collins contribution to the employees’
Retirement Health Savings plans for members of the Police Services as required by the CBA.
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Introduced, considered favorably on first reading, and ordered published this 16th day of
February, A.D. 2016, and to be presented for final passage on the 1st day of March, A.D. 2016.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
Passed and adopted on final reading on the 1st day of March, A.D. 2016.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk