ORD 463 1/9/1996ORDINANCE # 463
AN ORDINANCE CHANGING THE TEXAS MUNICIPAL RETIREMENT SYSTEM PAYROLL
DEDUCTION FOR CITY OF CIBOLO EMPLOYEES FROM FIVE PERCENT TO SIX PERCENT
WHEREAS, the City of Cibolo currently provides for a five percent payroll reduction by each employee to
provide retirement funds into the Texas Municipal Retirement System, and
WHEREAS, the State of Texas, 74th Legislature, adopted HB -2168, which became effective on
September 1, 1995 and this Act amends existing retirement legislation for municipal and other
government employees, and
WHEREAS, the TMRS only allows changes to deductions at the start of the calendar year, and
WHEREAS, the TMRS paid interest of 10.3 percent in 1994 and ten percent in 1995, and the City of
Cibolo employees seek to maximize the amount of tax deferred earnings that can be placed into their
individual account, and
WHEREAS, the employees of the City of Cibolo seek to increase their contribution to the TMRS from five
percent to six percent, and
WHEREAS, this action will change the monthly contribution rate to 4.73 percent, which is higher than
the City's contribution of 4.60 in 1994 and 3.89 in 1995, at a cost of approximately $2,100 over what the
contribution would have been at the 1995 rate, and $326 over what the contribution would have been at
the 1993 rate, and
WHEREAS, the City Council adopted its FY1995-96 budget which incorporated these changes,
THEREFORE, BE IT ORDAINED, THAT THE CITY COUNCIL OF THE CITY OF CIBOLO:
Directs the City Treasurer to change the rate of contribution by all employees from five percent to six
percent, beginning with the first payroll of January, 1996 and report those changes to the TMRS, and
Directs the City Administrator to notify all employees of this change as soon as possible.
APPROVED AND ADOPTED ON THIS 9 DAY OF JANUARY, 1996
HON. SAM BAUDER, MAYOR
FAN003d
Charles. A Balcar, City Secretary