City Council

CLARKSVILLE CITY COUNCIL SPECIAL SESSION JUNE 22, 2021, 5:30 P.M. CITY COUNCIL CHAMBERS 106 PUBLIC SQUARE CLARKSVILLE TN 37040 AGENDA 1) CALL TO ORDER Mayor Joe Pitts 2) PRAYER First Lady Cynthia Pitts 3) PLEDGE OF ALLEGIANCE Councilperson Travis Holleman 4) ATTENDANCE City Clerk 5) FY22 BUDGETS Mayor Joe Pitts 1. ORDINANCE 120-2020-21 (Second Reading) Amending the FY21 Operating Budget and approving the FY22 Operating Budget for the Central Business Improvement District (CBID) 2. ORDINANCE 121-2020-21 (Second Reading) Amending the FY21 Operating and Capital Budgets and adopting the FY22 Operating and Capital Budgets for CDE Lightband  3. ORDINANCE 122-2020-21 (Second Reading) Amending the FY21 Operating and Capital Budgets and adopting the FY22 Operating and Capital Budgets for Clarksville Transit System 4. ORDINANCE 123-2020-21 (Second Reading) Amending the FY21 Operating and Capital Budgets and adopting the FY22 Operating and Capital Budgets for Clarksville Gas & Water Department 5. ORDINANCE 124-2020-21 (Second Reading) Amending the FY21 Budget and approving the FY22 Annual Action Plan and Budget and authorizing application for Community Development Block Grant and HOME Investment Partnership Funds as well as other programs 6. ORDINANCE 125-2020-21 (Second Reading) Amending the FY21 Operating Budget and adopting FY22 Operating Budget for the Internal Service Funds 7. ORDINANCE 126-2020-21 (Second Reading) Amending the FY21 Operating Budget and establishing the FY22 Operating Budget for the Clarksville Parking Commission, a Proprietary Fund 8. ORDINANCE 127-2020-21 (Second Reading) Amending the Official Code pertaining to establishment of the Building & Facilities Maintenance Department 9. ORDINANCE 129-2020-21 (Second Reading) Amending the Official Code pertaining to employee benefits (retirees hired after July 1, 2006) 10. ORDINANCE 128-2020-21 (Second Reading) Amending the FY21 Operating and Capital Budgets and adopting the FY22 Operating and Capital Budgets for the Governmental Funds and adopting the Tax Rate for the fiscal year beginning July 1, 2021 and ending June 30, 2022 6) ADJOURNMENT  ORDINANCE 120-2020-21 AN ORDINANCE AMENDING THE FISCAL YEAR 2020-2021 BUDGET AND APPROVING THE FISCAL YEAR 2021-2022 OPERATING BUDGET FOR THE CENTRAL BUSINESS IMPROVEMENT DISTRICT (CBID) WHEREAS, As per City Code Chapter 9 pertaining to the Central Business Improvement District and the budget review process as specified and required in the "Central Business Improvement District Act of 1990" (codified at Tenn. Code Ann. §7-84-501, et. seq.) as may be amended from time to time by the Tennessee General Assembly, and all other provisions of said state law, shall be followed and adhered to by the district management corporation designated; and WHEREAS, The district management corporation shall submit an annual proposed budget for review and approval by the city council. This proposed budget shall include a statement of the public improvements to be made, the services to be provided, and the projects and activities to be conducted, during the ensuing fiscal year, within and for the district, the proposed budget for same, and a statement of proposed recommended assessment rate(s) for financing the proposed budget; and WHEREAS, As per City Code, specifically Chapter 9, Section 12-905, the economic development council (EDC) is hereby designated as the "district management corporation" within the meaning of T.C.A. § 7-84-501, et seq., and specifically in accordance with T.C.A. § 7-84-519, for the "central business improvement district." WHEREAS, Article VII, Section 3 of the Official Charter of the City of Clarksville provides for the approval and adoption of a budget; and WHEREAS, the provisions of the Tennessee Code Annotated require each municipality to operate under an annual appropriation ordinance; and WHEREAS, the governing body has published the annual operating budget and budgetary comparisons of the proposed budget with the prior year (actual) and the current year (estimated) in a newspaper of general circulation not less than ten (10) days prior to the meeting where the governing body will consider final passage of the budget. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CLARKSVILLE, TENNESSEE: That the fiscal year 2020-2021 budget is amended and the fiscal year 2021-2022 Operating Budget is hereby adopted and approved. Section 1. Revenues and Expenditures. Revenues and expenditures of the CBID are shown on the budget schedule below. Section 2. The CBID is not requesting an assessment for FY22 and plans to use fund balance from previous activities to fund operating costs for FY22. Section 4. Statement of Public Improvements Planned Use of Funds Amount Third & Main Mixed Use Development 20,000 Streetscape and Hardscape Standards Document 5,000 Riverside Drive Corridor 15,000 Recognition for Recently Completed Private Projects within CBID 1,500 Administration of CBID 30,000 CBID Planning & Development Committee Consultant 48,000 Education 6,000 TOTAL $125,500 The CBID intends to make progress in all initiatives above through collaborations with vested civic and private organizations, negotiations with district property owners and strategic investment of resources. FIRST READING: June 17, 2021 SECOND READING: Scheduled for June 22, 2021 EFFECTIVE DATE: June 30, 2021  ORDINANCE 121-2020-21 AN ORDINANCE AMENDING THE OPERATING AND CAPITAL BUDGETS FOR FISCAL YEAR 2021 AND ADOPTING THE OPERATING AND CAPITAL BUDGETS FOR FISCAL YEAR 2022 FOR CDE LIGHTBAND WHEREAS, Article VII, Section 3 of the official charter of the City of Clarksville provides for the approval and adoption of a budget; and WHEREAS, the governing body has published the annual operating budget and budgetary comparisons of the proposed budget with the prior year (actual) and the current year (estimated) in a newspaper of general circulation not less than ten (10) days prior to the meeting where the governing body will consider final passage of the budget; and NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CLARKSVILLE, TENNESSEE: That the estimated revenues and expenses of CDE Lightband for the fiscal years 2021 and 2022 are amended and/or approved as follows: Expenses of enterprise funds may vary significantly especially due to the impact of purchased power, gas or chemicals. Due to the operational necessity to provide the services offered the enterprise fund is authorized to expend funds irrespective of the appropriations contained within this Ordinance. Any operationally necessary budget amendments will be made at fiscal year end. FIRST READING: June 17, 2021 SECOND READING: Scheduled for June 22, 2021 EFFECTIVE DATE: June 30, 2021  ORDINANCE 122-2020-21 AN ORDINANCE AMENDING THE OPERATING AND CAPITAL BUDGETS FOR FISCAL YEAR 2021 AND ADOPTING THE OPERATING AND CAPITAL BUDGETS FOR FISCAL YEAR 2022 FOR THE CLARKSVILLE TRANSIT SYSTEM WHEREAS, Article VII, Section 3 of the official charter of the City of Clarksville provides for the approval and adoption of a budget; and WHEREAS, the governing body has published the annual operating budget and budgetary comparisons of the proposed budget with the prior year (actual) and the current year (estimated) in a newspaper of general circulation not less than ten (10) days prior to the meeting where the governing body will consider final passage of the budget. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CLARKSVILLE, TENNESSEE: That the estimated revenues and expenditures of the Clarksville Transit System for the fiscal years 2021 and 2022 are amended and/or approved as follows: FIRST READING: June 17, 2021 SECOND READING: Scheduled for June 22, 2021 EFFECTIVE DATE: June 30, 2021  ORDINANCE 123-2020-21 AN ORDINANCE AMENDING THE OPERATING AND CAPITAL BUDGETS FOR FISCAL YEAR 2020-2021 AND ADOPTING THE OPERATING AND CAPITAL BUDGETS FOR FISCAL YEAR 2021-2022 FOR THE CLARKSVILLE GAS & WATER DEPARTMENT WHEREAS, City Charter, Article VII, Section 3(a) budget ordinances need not be in more detail than a lump sum for each department. TCA 7-34-114(a) requires revision of rates, fees or charges, from time to time, whenever necessary so that enterprise funds always remain self-supporting. WHEREAS, the governing body has published the annual operating budget and budgetary comparisons of the proposed budget with the prior year (actual) and the current year (estimated) in a newspaper of general circulation not less than ten (10) days prior to the meeting where the governing body will consider final passage of the budget. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CLARKSVILLE, TENNESSEE: That the estimated revenues and expenses of the Clarksville Gas & Water Department for the fiscal years 2020-2021 and 2021-2022 are amended and/or approved as follows: Expenses of enterprise funds may vary significantly especially due to the impact of purchased power, gas or chemicals. Due to the operational necessity to provide the services offered the enterprise fund is authorized to expend funds irrespective of the appropriations contained within this Ordinance. Any operationally necessary budget amendments will be made at fiscal year end. FIRST READING: June 17, 2021 SECOND READING: Scheduled for June 22, 2021 EFFECTIVE DATE: June 30, 2021  ORDINANCE 124-2020-21 AN ORDINANCE AMENDING THE 2020-2021 BUDGET AND APPROVING THE 2021-2022 ANNUAL ACTION PLAN AND BUDGET AND AUTHORIZING APPLICATION FOR COMMUNITY DEVELOPMENT BLOCK GRANT AND HOME INVESTMENT PARTNERSHIP FUNDS AS WELL AS OTHER PROGRAMS WHEREAS, Regulation 24 CFR Part 91 issued by the U.S. Department of Housing and Urban Development (HUD) requires the city to submit and receive HUD approval of an annual action plan as part of a HUD-approved five-year consolidated plan for the City of Clarksville; and WHEREAS, Title I of the Housing and Community Development Act of 1974, as amended, establishes a Community Development Block Grant (CDBG) program for the purpose of developing viable urban communities by providing decent housing and suitable living environments and expanding economic opportunities and preventing and/or eliminating conditions of slum and blight, principally for persons of low and moderate income; and WHEREAS, the Statement of Purpose for this Ordinance reflects comments from agencies, organizations and citizens as related to funding received from two HUD programs; the Community Development Block Grant and the HOME Investment Partnership Program; and WHEREAS, Article VII, Section 3 of the Official Charter of the City of Clarksville provides for the approval and adoption of a budget; and WHEREAS, the provisions of the Tennessee Code Annotated require each municipality to operate under an annual appropriation ordinance. WHEREAS, the governing body has published the annual operating budget and budgetary comparisons of the proposed budget with the prior year (actual) and the current year (estimated) in a newspaper of general circulation not less than ten (10) days prior to the meeting where the governing body will consider final passage of the budget. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CLARKSVILLE, TENNESSEE: That the 2020-2021 budget is amended and the 2021-2022 Annual Action Plan and the 2021-2022 “Budget and Program of Expenditures” is hereby adopted and approved. Section 1. Revenues and Expenses. Revenues and expenses for the COMMUNITY DEVELOPMENT BLOCK GRANT, HOME INVESTMENT PARTNERSHIP FUNDS, EMERGENCY SOLUTIONS GRANT AND CONTINUUM OF CARE GRANT are shown on the budget schedule below. The budgets shown below are on a cash basis. Revenues are estimated to be sufficient to pay the estimated expenses of the operations. FIRST READING: June 17, 2021 SECOND READING: Scheduled for June 22, 2021 EFFECTIVE DATE: June 30, 2021  ORDINANCE 125-2020-2021 AN ORDINANCE AMENDING THE FISCAL YEAR 2021 AND ADOPTING THE OPERATING BUDGET FOR FISCAL YEAR 2022 FOR THE INTERNAL SERVICE FUNDS. WHEREAS, Article VII, Section 3 of the Official Charter of the City of Clarksville provides for the approval and adoption of a budget; and WHEREAS, the provisions of the Tennessee Code Annotated require each municipality to operate under an annual appropriation ordinance; and WHEREAS, the governing body has published the annual operating budget and budgetary comparisons of the proposed budget with the prior year (actual) and the current year (estimated) in a newspaper of general circulation not less than ten (10) days prior to the meeting where the governing body will consider final passage of the budget. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CLARKSVILLE, TENNESSEE: That the estimated revenues and expenditures of the City of Clarksville’s Internal Service Funds for the fiscal years 2021 and 2022 are approved as follows: Section 1. Revenues and Expenditures. Revenues and expenditures for the City of Clarksville’s Internal Service Funds are shown below. Revenues are estimated to be sufficient to pay the estimated expenditures of the Internal Service Funds' operations. The basis of accounting for the purpose of budget preparation is cash basis. FIRST READING: June 17, 2021, Amended SECOND READING: Scheduled for June 22, 2021 EFFECTIVE DATE: June 30, 2021  ORDINANCE 126-2020-2021 AN ORDINANCE AMENDING THE FISCAL YEAR 2021 BUDGET AND ESTABLISHING THE OPERATING BUDGET FOR FISCAL YEAR 2022 FOR THE CLARKSVILLE PARKING COMMISSION, A PROPRIETARY FUND WHEREAS, Article VII, Section 3 of the Official Charter of the City of Clarksville provides for the approval and adoption of a budget; and WHEREAS, the governing body has published the annual operating budget and budgetary comparisons of the proposed budget with the prior year (actual) and the current year (estimated) in a newspaper of general circulation not less than ten (10) days prior to the meeting where the governing body will consider final passage of the budget. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CLARKSVILLE, TENNESSEE: That the amended revenues and expenses of the City of Clarksville’s Parking Commission for the fiscal year 2021 and the estimated revenues and expenses for the fiscal year 2022 are as follows: Section 1. Revenues and Expenses. Revenues and expenses for the City of Clarksville’s Parking Commission (a Proprietary Fund) are shown on the budget schedules below. The budgets shown below are on a cash basis. Revenues are estimated to be sufficient to pay the estimated expenses of the Parking Commission’s operations and any annual debt service. Section 2. Operating services for the Parking Commission are provided by the general fund of the City, the Parking fund reimburses the General Fund of the City for actual expenses incurred as a management fee. FIRST READING: June 17, 2021 SECOND READING: Scheduled for June 22, 2021 EFFECTIVE DATE: June 30, 2021  ORDINANCE 127-2020-21 AN ORDINANCE AMENDING TITLE I (ADMINISTRATION, OFFICERS, AND PERSONNEL), CHAPTER 1 (IN GENERAL) OF THE OFFICIAL CODE OF THE CITY OF CLARKSVILLE, TENNESSEE PERTAINING TO ESTABLISHMENT OF THE BUILDING AND FACILITIES MAINTENANCE DEPARTMENT WHEREAS, the Clarksville City Council desires to establish a new City department to maintain the City’s buildings and facilities; and WHEREAS, Article VI of the Official Charter of the City of Clarksville, Tennessee, “Organization and Personnel,” provides the ability to create departments by ordinance. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CLARKSVILLE, TENNESSEE: That the Official Code of the City of Clarksville, Tennessee, Title 1, “Administration, Officers, an Personnel,” Chapter 10, “City Departments and Organization,” is hereby amended by adding the following new section: Section 10-118. Building & Facilities Maintenance Department There is hereby established a Building and Facilities Maintenance Department which shall be headed by a director of building and facilities maintenance. BE IT FURTHER ORDAINED that this ordinance shall be effective July 1, 2021. FIRST READING: June 17, 2021 SECOND READING: Scheduled for June 22, 2021 EFFECTIVE DATE: June 22, 2021  FY 2021-2022 BUDGET GOVERNMENTAL FUNDS (EXCLUDING HOUSING & COMMUNITY DEVELOPMENT) ORDINANCE 128 2020-21  ORDINANCE 128-2020-21 AN ORDINANCE AMENDING THE OPERATING AND CAPITAL BUDGETS FOR FISCAL YEAR 2020-2021 AND ADOPTING THE OPERATING AND CAPITAL BUDGETS FOR FISCAL YEAR 2021-2022 FOR THE GOVERNMENTAL FUNDS AND ADOPTING THE TAX RATE FOR THE FISCAL YEAR BEGINNING JULY 1, 2021 AND ENDING JUNE 30, 2022. WHEREAS, Article VII, Section 3 of the official charter of the City of Clarksville provides for the approval and adoption of a budget; and WHEREAS, Tennessee Code Annotated Title 9 Chapter 1 Section 116 requires that all funds shall first be appropriated before being expended and that only funds that are available shall be appropriated, and WHEREAS, the governing body has published the annual operating budget and budgetary comparisons of the proposed budget with the prior year (actual) and the current year (estimated) in a newspaper of general circulation not less than ten (10) days prior to the meeting where the governing body will consider final passage of the budget. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CLARKSVILLE, TENNESSEE: That the estimated revenues and expenditures of the City of Clarksville for the fiscal years 2019 and 2020 are amended and/or approved as follows: Section 1. That the governing body estimates anticipated revenues for its governmental funds from all sources to be as stated in the attachments that follow. Section 2. That the governing body appropriates from these anticipated revenues and unexpended and unencumbered funds as follows in all of the attachments that follow. Section 3. At the end of the current fiscal year, the governing body estimates balances as follows in all of the attachments that follow. Section 4. That the governing body recognizes that the municipality has bonded and other indebtedness as follows: Bonded or Total Debt FY2022 FY2022 Interest Debt Previously Other Principal Requirements Authorized and 7/1/2021 Indebtedness Requirements Unissued Bonds 76,457,000 7,745,000 1,911,809 Notes 21,316,000 1,140,000 657,054 Total Debt 97,773,000 8,885,000 2,568,863 85,155,946 Section 5. No appropriation listed above may be exceeded without an amendment of the budget ordinance as required by Article VII, Section 3 of the Clarksville City Charter. Amendments to the adopted budget ordinance may be approved by ordinance at any time during the fiscal year by the affirmative vote of a majority of the council on two separate readings. Section 6. Tax Rate. The City of Clarksville’s fiscal year 2022 (tax year 2021) tax rate for real and personal property is set at $1.23 Section 7. Payments to Tennessee Consolidated Retirement System. For the fiscal year 2020, the City of Clarksville’s rate of funding to the Tennessee Consolidated Retirement System (TCRS) will be 18.03% of covered salaries and wages for public safety employees and 14.53% for all others. Section 8. Other Post Employment Benefits. The City recognizes that under the provisions of Governmental Accounting Standards Board (GASB) Statement 75 that it has an obligation for “Other Post Employment Benefits” (“OPEB”). In FY 2022, the City’s governmental funds will continue on a pay-as-you-go basis. Nothing in this section shall prevent any proprietary fund, agency, or component unit of the city from funding its OPEB obligations under the provisions of GASB 45 in FY 2022. Section 9. In Lieu of Taxes, Clarksville Department of Electricity and Clarksville Department of Gas, Water & Sewer. The City has budgeted to collect the maximum in lieu of tax payment permitted by the Tennessee Code Annotated from the Clarksville Department of Gas, Water & Sewer and CDE Lightband and accounts for these payments in the general fund as operating revenues. Section 10. Payments to Montgomery County – In Lieu of Taxes. Under the provisions of the Tennessee Code Annotated, 22.5% of the in lieu of tax payment actually paid to the city by the Clarksville Department of Electricity (CDE Lightband) to the City of Clarksville's general government must be paid over to Montgomery County. The amount of the appropriation to be paid over to Montgomery County contained within this appropriating ordinance is based on an estimated annual in lieu of tax payment included in the financing sources of the city. The Chief Financial Officer is authorized to comply with the legal requirement that provides for the actual payment of 22.5% of the in-lieu-of-tax paid to the city to be paid to Montgomery County irrespective of the appropriation contained within this ordinance. Section 11. Payments to Montgomery County – Share of State Liquor Taxes. Under the provisions of the Tennessee Code Annotated, 50% of the state liquor taxes paid to the City of Clarksville by the State of Tennessee must be paid over to Montgomery County for the purpose of funding education. The amount of the appropriation to be paid over to Montgomery County contained within this appropriating ordinance is based on an annual revenue estimate of the state shared revenue for the liquor tax. The Chief Financial Officer is authorized to comply with the legal requirement to pay over to Montgomery County 50% of the state liquor taxes received by the city irrespective of the appropriation contained within this ordinance. Section 12. A departmental budget and the published operating budget and budgetary comparisons shown by fund with beginning and ending fund balances and the number of full time employees authorized by department and/or fund shall be considered part of this ordinance. Department FY2021 FY2022 Full-time Full-time Employees Employees Legislative/Administrative (includes Council) 14 14 Building Codes 30 30 Building Facility Maintenance 0 14 City Court 5 5 Finance & Revenue 22 20 Fire Department 252 252 Garage 15 15 Human Resources 12 13 Human Resources – Security 10 10 Legal Department 5 6 Information Technology 13 13 Internal Audit 3 3 Mayor's Office 6 6 Municipal Properties 2 2 Parks and Recreation/Golf 87 75 Dispatch 34 34 Police 367 368 Purchasing 3 3 Street Department 89 94 Gas, Water & Sewer 283 306 CDE Lightband 201 201 Transit 92 96 Housing & Community Development 6 6 TOTAL FULL-TIME 1551 1586 Section 13. Policy for Funding of Non-Profit Agencies 1. Per State Law: a. Organization must be a 501(c)(3), 501(c)(4), or 501(c)(6) with documentation provided from the Internal Revenue Service. b. Organization provides year-round services benefitting the general welfare of the city’s residents. c. Organization files a copy of an annual audit of its business affairs and related transactions 2. Additional City of Clarksville requirements: a. Organization must be related or support moving the City forward in providing a municipal purpose. b. Organization must disclose at least annually and throughout the funding year any City employee or elected official associated with their agency in any capacity, stating their name and role they play in the non-profit agency. c. Funding may be withheld at the discretion of the City of Clarksville’s Finance Department until all requirements are met and kept current. d. If approved for funding by the City of Clarksville, the organization agrees to allow access to financial records during the funding period. e. Organization agrees that funds requested will only be used for the purposes stated and approved in their budget request f. The City shall determine funding distribution to be either monthly, quarterly, or annually g. Any change in proposed use of funds during the funding year must be submitted to the City in writing for approval prior to use.  h. Organizations receiving $50,000 or more of funding from the City are required to follow the City’s purchasing policy including but not limited to bids and quotes for any purchase made with City provided funds. i. Organizations receiving any audit findings shall disclose these findings with their annual funding request. At the discretion of the CFO for the City, funding may be withheld until a satisfactory plan to address the findings has been received. j. Organization is required to submit quarterly financial reports no later than 45 days after the end of the quarters ending September, December, March and June of each year. Section 14. If for any reason a budget ordinance is not adopted prior to the beginning of the next fiscal year, the appropriations in this budget ordinance shall become the appropriations for the next fiscal year until the adoption of the new budget ordinance, provided sufficient revenues are being collected to support the continuing appropriations as per Charter provision. Approval of the Director of the Division of Local Finance in the Comptroller of the Treasury for a continuation budget will be requested if any indebtedness is outstanding. Section 15. In an effort for the City’s pay practices to remain competitive with changes in labor market conditions, City Code Section 1.5-403 provides for the Human Resources Department to review and propose adjustments to the compensation plan including adjusting the salary structure to be competitive with the market. Further Section 1.5-405b provides for the recommendation by the Human Resources Department to provide annual general pay increases for City employees. Notwithstanding any provision of the Official Code of the City of Clarksville to the contrary, based on current market conditions and city finances, the Human Resources Director has recommended a general wage increase for City employees of 2.5% for Fiscal Year 2021-2022. Also, recommended is the increase in the pay tables of 2.5%. The effective date for both the table move and the GWI will be October 9, 2021. Section 16. Parks & Recreation and Golf Courses. This ordinance shall provide authorization for the budgets of Parks and Recreation, Mason Rudolph Golf Course and Swan Lake Golf Course to be merged, therefore allowing operational efficiencies of shared resources. As provided for by City Code in certain circumstances the Department head or Mayor have authority to move funds within the department’s budgets. For the purposes of budget appropriations and expenditures of Parks and Recreation and the Golf Courses shall be considered one department. Section 17. This ordinance shall take effect June 30, 2021 for the good of the public. BUDGET SUMMARY PUBLISHED: June 6, 2021 PUBLIC HEARING: June 17, 2021 FIRST READING: June 17, 2021 SECOND READING: Scheduled for June 22, 2021 EFFECTIVE DATE: June 30, 2021  ORDINANCE 129-2020-21 AN ORDINANCE AMENDING THE OFFICIAL CODE PERTAINING TO EMPLOYEE BENEFITS (RETIREES HIRED AFTER JULY 1, 2006) WHEREAS, effective upon July 1, 2006, the City of Clarksville, pursuant to ordinance, ceased offering retirement healthcare benefits to new employees; and WHEREAS, public safety employees hired on or after July 1, 2006, have a mandatory retirement age of 60 (62 for administrative positions) due to the “bridge” plan administered through the Tennessee Consolidated Retirement System (TCRS), and as a consequence, such employees have no healthcare benefits from the time of their mandatory early retirement until their eligibility for Medicare at age 65; and WHEREAS, the City Council finds that for all City employees hired after July 1, 2006, not just public safety employees, due to debilitating medical conditions and / or other unforeseen circumstances, and without fault, some may be forced to choose between retirement prior to their eligibility for Medicare at age 65, and thus leaving them without group health insurance, or remaining employed in order to maintain group health insurance; and WHEREAS, the City Council further finds, as a result of the above stated situation, that some employees may continue employment with the City solely to maintain health benefits, which would lead to increased medical claim costs for the City, such costs to the City being a minimum of $1,025.00 per month per employee, plus all expense costs for medical claims for each employee; and WHEREAS, as a result, the City Council finds that a “defined benefit” type of plan, such as the City currently uses, greatly increases the City’s “Other Post Employment Benefits” (OPEB) liability; and WHEREAS, the City Council finds that a “defined contribution” plan, is less expensive and will result in less OPEB liability than a “defined benefit” plan, will provide an option to workers with debilitating medical conditions and / or unforeseen circumstances to retire and thereby will decrease and limit City current medical claims costs, will provide fair treatment to public safety employees who are forced to retire early, and will help qualified employees who have separated from service to offset health care expenses, all of which will thereby further the City’s ability to recruit, and retain, talented and productive workers. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CLARKSVILLE, TENNESSEE: (1) That the Official Code of the City of Clarksville, Part II, Title 1.5 (Human Resources), Chapter 7 (Benefits), is amended by deleting Sec 1.5-701 in its entirety and replacing with the following:  Sec 1.5-701 – No retroactive application. All persons who have separated from employment under the provisions of a city sponsored pension or retirement plan and who were receiving health, dental, and/or life insurance coverage as additional retirement benefits in addition to the pension benefit from a city sponsored pensions or retirement plan prior to the effective date of the ordinance from which this section derives shall continue to receive and shall be provided all health and dental insurance that they were provided by the city prior to the effective date of the ordinance from which this section derives. (2) Sec 1.5-709 Employees hired on or after July 1, 2006 eligibility for monthly health stipend. a. All persons employed by the city, whose hire date is on or after July 1, 2006, shall be provided a monthly stipend, to be used for health related expenses, until age 65, upon separation from the city only if the employee meets the criteria of this section. Persons hired on or after July 1, 2006, must complete a minimum of ten (10) years of total credited service and be at least fifty-five (55) years of age to be eligible to receive this monthly stipend pursuant to the provisions of this section. b. For the purpose of this section, credited service with the city shall be that service performed as a regular full-time or regular part-time employee of the city as defined within this Code. Credited service recognized by the Tennessee Consolidated Retirement System but not with the city as a full-time employee or a regular part-time employee as defined within this Code, shall not be recognized as credited service with the city for the purpose of determining the eligibility for the health stipend benefit provided for within the ordinance from which this section derives. c. An employee must have been covered by the city’s health plan immediately prior to the employee’s separation from the city to be eligible for this monthly stipend. d. Upon an employee’s separation from the city, the employee must be immediately eligible or eligible within six (6) months after the effective separation date to receive pension or disability benefits from the Tennessee Consolidated Retirement System, or from a city sponsored pension plan. e. On and after the effective date of the ordinance from which this section derives, eligible employees hired on or after July 1, 2006, and separating from employment with the city may apply for and receive a monthly stipend of at least $800 for health related expenses, to age 65, in accordance with the following schedule:  Years of credited service Allocation of Health Dollars Age at % funded by Equal to or greater than: But less than: separation the City 20 55 100% 19 20 55 95% 18 19 55 90% 17 18 55 85% 16 17 55 80% 15 16 55 75% 14 15 55 70% 13 14 55 65% 12 13 55 60% 11 12 55 55% 10 11 55 50% f. Application to receive partial monthly stipend under this section must be made prior to the employee’s separation from the city. g. The Human Resources Director, with the approval of the Finance and Administration committee of the City Council, shall promulgate rules and regulations necessary to administer the benefits conferred by the ordinance from which this section derives. A bi-annual review will be performed, by the Human Resources Director, to assess the need to adjust the monthly health stipend amount. A review can be performed, at other times, based on market data or other contributing factors. FIRST READING: June 17, 2021 SECOND READING: Scheduled for June 22, 2021 EFFECTIVE DATE: June 22, 2021