City Council - Regular Meeting

Thank you. Thank you. Thank you. Thank you. Thank you. you Thank you. Thank you. Thank you. you Thank you.

So when I look at this, notice on the far right to add rule of 80, this adds $437,000 of liability to your plan or roughly about an additional 4%, 4.8%. When you go down to the column that says the cost, I'll start with the number that says $61,000. That is an annual cost increase, $61,033. That cost increase is divided between the amount to amortize people who are already currently working here. So basically we're saying, for your people who are currently working here who could potentially qualify for this benefit, we've got to make sure that the money is in the bank faster. So those folks are $38,973 annually. Then the normal cost is we're saying today not everybody would qualify under that rule, so this is today looking forward, that cost would be $22,060 for a total of $61,033. Roughly, we're talking about $5,000 a month in increased cost to your plan. Okay. Questions on that so far? Anybody?

Questions?

Okay. I do want to go over to the next page that looks like this. So because you are in a cruel basis city, Gatsby says if you provide a benefit increase in your retirement system, you have to expense that benefit increase in the year it's given. And so on this page, notice the far right at the bottom, it says $482,000. What we're saying is we would recognize this on your expenses in July of 2027. And so that is the $437,000 from the previous page plus another year of cost, your normal cost, $22,000, plus 7.25% interest. And that's where that comes from. So when you give this, if you give this, If that happens, next year on your financial statements, you would have to book an expense for your pension system of $482,065. Does that make sense? So may I answer questions for you? Where do we...

Where do we stand today? How does this affect us today, employee-wise? Numbers of employees, are there people that immediately would qualify on the Rule of 80 that don't the other way or vice versa?

Yeah, yeah. I did not pull the actual number to see how many employees that it would affect today, but there are a number of employees that it would affect today. I can get that number for you, Mr. Schaffer, if you would like me to.

Well, I'm just wondering, is there a... we don't want it to adversely affect somebody that would have been eligible for oh this does not adversely affect anybody it only benefits them okay there's there's no there's no mathematical possibility in there where we could where we're going to hang somebody where you're hurting somebody so so you mentioned in the 62 25 whatever that was yes sir it where it would negatively affect you if you missed it by a year, cost you 5%. Yes, sir. So what about the rule of 80? What if you miss it by a year?

So the earliest that I can ever begin paying somebody is age 55. Regardless, the earliest I can ever begin paying is age 55. If somebody, let's say that they started work for you at age 35, so at age 55, they only have 75 points. In that instance, they would have that 5% penalty reduction for every year under normal retirement age that they would go.

Same thing.

Yeah, that does not change whatsoever. It's the same thing.

Yes, sir.

I think it only would affect people who are already qualified to retire under the normal retirement now. I don't believe we have anybody. That would qualify. I don't believe.

Yeah, and I did not look at the specific census data to see specifically. You can look, but I don't think we do have it. Yeah.

Tim, do you have anything to add?

No. The idea behind it and what started these conversations is we have a lot of employees. It applies only to non-union employees, right, because fire employees have their own pension systems. This is only non-union, so it's going to be a lot of public works and or other general city staff. But there's a lot of public works employees that don't quite make it to, I mean, to make it to 62. their laboring positions takes a toll on their body, they may not make it that far before they have to retire for other reasons, right? So this actually helps those positions to retire a little bit earlier.

Yes, without a doubt. And it also, to a certain extent, it puts your general service employees more on par with your police and fire because they can go out, either do a 20 and out and start collecting at age 50 or 55, depending on whether police or fire. So it helps to put your general service employees more on a par with them as well. But there's no doubt those public works people, they work hard for you. And the reality is, is their bodies break down over time. And telling somebody that you are going to have to be 64 or 65 working in the hot weather, that's rough. That's extremely rough.

When they've been with you since they were 25. Yes, ma'am.

Yes, ma'am.

of the Treaty of Paris. Daughters are celebrating our nation's rich history and diversity of experience by honoring all men and women who achieved American independence, whose sacrifice and service laid the foundation for the freedoms enjoyed today. The Fort Reno Chapter National Society Daughters of the American Revolution, located in El Reno, Oklahoma, is committed to preserving history, promoting education, and honoring the legacy of the American Revolution within our local community through service, patriotic observance. And a lot of those members are here with us tonight. We thank you for coming and stuff. But therefore, be it resolved that I, Steve Jensen, Mayor of El Reno, Oklahoma, do hereby commend this celebration to all El Reno residents to be America's 250th anniversary. So thank you, and thank you all for coming. Our next proclamation is Proclamation of Flag Day, whereas on June 14th, 1777, the Second Continental Congress adopted the first flag resolution, establishing the Stars and Stripes as the official flag of the United States of America. And the flag of the United States of America with its 13 stripes, 50 stars, stands as a lasting symbol of the nation's unity, history, and enduring principles of liberty, justice, and democracy. Flag Day is observed annually in accordance with public law 94-344 as a time for Americans, including the citizens of El Reno, Oklahoma, to reflect upon the history meaning of the United States flag and honor the ideals it represents. And it is fitting and proper that the citizens of El Reno observe Flag Day with appropriate ceremonies, observances, education activities that promote respect for the flag and deepen our understanding of its significance in the preservation of American freedoms. I, Steve Jensen, the mayor of El Reno, do hereby proclaim June 14th, 2026 to be Flag Day. And our last proclamation is. Juneteenth day, President Abraham Lincoln issued the Emancipation Proclamation on January 1st, 1863, declaring that all persons held as slaves shall be free. And on June 19th, 1865, Union soldiers led by Major General Gordon Granger landed at Galveston, Texas, with news that the war had ended and that the enslaved were now free. And June 19th, also known as Juneteenth, is also called Emancipation Day, is the oldest known celebration which started in 1866 commemorating the announcement of the abolishment of slavery in the state of Texas, and in remembrance of that day, all remaining slaves acquired their freedom in the United States. And on June 17th, 2021, President Joseph Biden signed Juneteenth into law, declaring it a national holiday. Juneteenth reminds us of the promises of freedom, equity, opportunity, equality, and the celebration of black freedom, culture, and achievements made. Therefore, I, Steve Jensen, Mayor of City of Reno, and all its citizens do hereby proclaim June 19th, 2026 to be Juneteenth today. So that's our proclamations, and if somebody