Village of Lansing

 

 

MINUTES of a regular meeting of the Board of Trustees of the Village of Lansing held on Wednesday, September 5, 2001, in the Village Office.

 

Present: Mayor Donald Hartill; Trustees Janet Beebe, Larry Fresinski, Lynn Leopold, Frank Moore; Clerk/Treasurer, Jodi Dake; P.T. Clerk, Carol Willard; Code & Zoning Officer, Benjamin Curtis; Supt. Of Public Works, Dennis Reinhart; MEO, Rick Beckwith and Jack Little, CPA.

 

Mayor Donald Hartill called the meeting to order at 12:10p.m. The first order of business was to reschedule the September 17th meeting since Rosh Hashanah started at sunset that evening.

 

Resolution #3806-To Change the Monday September 17, 2001 Meeting to September 24, 2001 at 7:30pm Due to a Holiday Conflict

 

 Trustee Lynn Leopold moved that the meeting date be changed and Trustee Larry Fresinski seconded the motion. A vote was taken:

 

Mayor Donald Hartill - Aye                              Trustee Lynn Leopold- Aye

                        Trustee Frank Moore-Aye                                Trustee Larry Fresinski- Aye

Trustee Janet Beebe-Aye

 

The main reason for this meeting was to discuss the New York State Retirement Plan with Jack Little, the Village accountant from Ciaschi, Dietershagen, Little & Mickelson, LLP. Jack explained that general municipal law lays out retirement for New York State employees. As NYS employees we only have two options, the NYS Retirement Plan or a Deferred Compensation Plan (NYSDC) like we currently have through Copeland. NYSDC is a section 457 plan that is a salary deferral, similar to a 401K Plan.

 

Jack gave the staff some history as to why the Village decided to go with the NYSDC Plan verses the NYS Retirement Plan. In 1987 the Village decided to increase everyone’s salary by 10% and join the NYSDC plan for the following reasons:

            1. Simplicity

            2. More investment options which each individual is in control of

            3. Big cost savings for the Village-there was a very high rate at the time

            4. Sylvia was the only one at that time who would have benefited because it took 10 years to

                be vested

The cost to the employer at that time was 15-19% plus the 3% that the employee had to pay. Another change is that now it is only 5 years before your vested. The buy in or deficiency payment is ~$21,345 per year for 25 years. This is in addition to the current payment the Village would be required to make of 1.8% of gross payroll. The Board found it hard to swallow the half million-dollar buy in cost.

 

Anyone who would join now would be a Tier 4 member. Each employee would have to contribute 3% of his or her salary to the retirement plan for 10 years. After that there is no cost to the employee. You would have the option of buying back the time you’ve been employed with the Village.

 

At retirement you get to choose how you would like to receive your retirement money:

            1. You can get a fixed dollar amount for as long as you live

            2.  You can receive less and cover your spouse’s life as well

            3.  You could get a set amount for 10 years.

 

Ben likes the security of a fixed benefit plan. He was concerned that the Copeland Plan was not secure but Jack informed him that these are secure funds. He feels that joining the NYS Retirement Plan is something that the employees want. He would continue to invest in the Copeland Plan even after the Village joins the NYS Retirement Plan.

 

Some of the drawbacks would be that once you’re in you couldn’t get out. The 3% contribution is not tax-free. You will no longer have the flexibility to choose how your money is invested. Once the Village decides to join they must buy back time. Basically, it will double the Village’s costs.

 

Back in 1987 the decision to not join was a good idea. Now it is time to reevaluate.  It’s confidence verses flexibility and the Board’s job is to look at the financial exposure and make a conclusion. Both plans must be looked at very carefully so that the Village does whatever is best for both the Village and the employees. Don suggested that the Board have an executive session to further discuss this at their Sept. 24th meeting and then talk again with the employees at the Oct. 10th meeting.

 

The Mayor proposed a motion to approve the vouchers.

 

Resolution #3807- Abstracts of Audited Vouchers

 

Be it RESOLVED, that Abstract of Audited Vouchers No. 4 for the General Fund, in the amount of $10,485.98, is hereby approved for payment, and 

 

Be it further RESOLVED, that Abstract of Audited Vouchers No. 4 for the Water Fund, in the amount of  $218.50, is hereby approved for payment, and 

 

Be it further RESOLVED, that Abstract of Audited Vouchers No. 4 for the Sewer Fund, in the amount of  $25.18, is hereby approved for payment, and 

 

Be it further RESOLVED, that Abstract of Audited Vouchers No. 4 for the Capital Projects Fund, in the amount of  $111,651.39, is hereby approved for payment

 

Trustee Lynn Leopold moved to approve the vouchers and Trustee Larry Fresinski seconded the motion. A vote was taken:

 

Mayor Donald Hartill - Aye                              Trustee Lynn Leopold- Aye

                        Trustee Frank Moore-Aye                                Trustee Larry Fresinski- Aye

Trustee Janet Beebe-Aye

 

Motion-To Adjourn 

 

Trustee Larry Fresinski motioned to adjourn and Trustee Lynn Leopold seconded the motion. A vote was taken:

 

Mayor Donald Hartill - Aye                              Trustee Lynn Leopold- Aye

Trustee Frank Moore-Aye                                Trustee Larry Fresinski- Aye

Trustee Janet Beebe-Aye

 

The meeting adjourned at 1:17pm.

 

                                                                                                            Jodi Dake

                                                                                                Village Clerk/Treasurer