1998-051City of Southlake, Texas
RESOLUTION NO. 98-51
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SOUTHLAKE
AUTHORIZING THE CITY MANAGER TO ENTER INTO ALL NECESSARY
AGREEMENTS WITH THE EMPLOYEES RETIREMENT SYSTEM (ERS) TO
EXTEND MEDICARE TO THE ELIGIBLE EMPLOYEES, THOSE HIRED
BEFORE APRIL 1, 1986, OF THE CITY OF SOUTHLAKE BY HOLDING A
REFERENDUM TO ACCEPT THIS BENEFIT FOR EACH INDIVIDUAL
EMPLOYEE.
WHEREAS, the City of Southlake has eleven (11) employees hired before April 1, 1986 who do not
participate in Medicare; and
WHEREAS, the City chose not to cover it's employees hired prior to April 1, 1986 when the new law
came into effect, requiring Medicare coverage for new employees; and
WHEREAS, coverage may be extended to employees hired prior to April 1, 1986 by following
specific steps as set by the Employee's Retirement System (ERS) of Texas; and
WHEREAS, ERS must supervise and certify an employee referendum on this issue in which
employees have 90 days' notice before the referendum. Employees will vote on the referendum by
written ballot and once elected, are prohibited from withdrawing from Medicare; and
WHEREAS, contributions to Medicare include a 1.45 percent employee deduction and a 1.45 percent
employer match for a total of 2.9 percent based on the current eligible employees' salaries; and
WHEREAS, the City of Southlake estimates, that if all 11 employees participate, the cost will be
6,430.29 for the first fiscal year, and this amount is to be included in the fiscal year 1998 - 1999
budget; NOW THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEXAS:
Section 1. That all matters stated in the preamble are true and correct and incorporated herein as if
copied in their entirety.
Section 2. That the City Manager is directed to work with the ERS to make all the necessary
arrangements in order to complete and implement this benefit for the eligible employees.
Section 3. That this resolution be in effect immediately upon its adoption.
PASSED AND ADOPTED, this the { day of , 1998.
Resolution No.
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I AL -Z 0 ": v
Mayor Rick Stacy
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ATTEST:
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City Secretary
APPROVED AS TO FORM:
City Attorney