2004 AGN APR 20 I12 - Laserfiche WebLink

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Golden Handshake — Misc./Safety April 12, 2004 Page 2 of 2 FISCAL IMPACT: The cost of providing the two years additional service credit is calculated based on the individual member's annual reportable compensation, the cost factor, and whether the agency's contract provides the post-retirement survivor allowance (applies to Safety Members only) and the cost -of -living allowance. It has been calculated that the two years additional service credit for the three (3) miscellaneous positions listed above will cost $107,034.87 and for the eight (8) safety positions listed above $383,818.12. In addition, there is a $10 valuation charge for the eligible members who will be retiring during the designated period and who receives the additional service credit. Government Code Section 7507 requires that the costs to provide this benefit be made public at a public meeting at least two weeks prior to the adoption of the resolution. This one-time cost of $490,852.99 will be paid this fiscal year from each funds' reserves, but will be more than offset by annual savings of approximately $904,794.61 in salary and benefit costs in each of the future fiscal year budgets. RECOMMENDATION: As required by Government Code Sections 20903 and 7507, Staff respectfully requests that an announcement be made to the public informing that the costs to offer the golden handshake to 11 City employees will be $490,852.99, along with a $10 valuation charge for each member that retires. Further, it is requested that the City Council declare that the window for the Golden Handshake shall be from May 5, 2004 to September 30, 2004. City Attorney: : Finance Director -- City Manager: OTHER: