Eminence Kentucky-Special Minutes

The City Council of the City of Eminence, Kentucky met in a special called session on Thursday, September 30, 2004 at 8:15 p.m. with Mayor Doug Bates and the following members present: Kelly Shannon, Howard Roberts, Laura Whitney, Tom Ferguson and Leeroy Winburn. Absent was Member Drane Stephens. Also in attendance were City Clerk Sandra Doane, City Attorney William Brammell, Kevin Harris, Steve Sparrow, Missy Ayers, and Cheryl Neal.

The purpose of the special meeting being called was to discuss and finalize the financing of the fire department truck and equipment, to discuss insurance and retirement benefits for the Mayor and/or council, to hold a closed session to discuss possible litigation and to hold a public holdings meeting.

Subject: Fire Department Truck & Equipment Financing – Mayor Bates reported that he has been successful in getting Farmers Deposit Bank to lower their rate for financing the Fire Department truck and equipment to 4.75% from the previous 4.95%. Attorney Brammell reviewed the differences in funding requirements between Farmers Deposit Bank and the Kentucky League of Cities. KLC would require pledging of tax revenues as compared to the bank, which would only require a lien on the equipment. The constitution has changed resulting in a City being able to pledge 3% of their tax base toward financing obligations. This would require an ordinance pledging the tax revenues which would require two readings. The truck is scheduled for delivery in about two to three weeks. The interest rate is still lower with the League, but they do have a lot of fees involved with the financing. The savings to finance through the League are probably not enough to justify taking it outside the City. The members of the Fire Department present stated that they would prefer to finance through Farmers Deposit Bank due to the time restraints and burden of the requirements through the League. Council was in agreement with this financing option. The actual financing will have to be through the Public Holdings Corporation, who will meet immediately following this council meeting.

Subject: Insurance and Retirement Benefits for Mayor/Council – Mayor Bates discussed with council the possibility of his participating in the City’s insurance plan now that it is thru the State. His wife is on the same plan and it would be cheaper for them to carry two individual plans instead of the couple plan. He is not asking the City to pay any portion for his insurance.

One of the requirements for the Mayor to participate in the insurance would include participation in the retirement system as a regularly employed employee of the City averaging at least 100 hours of work per month. The retirement rates involved would be 5.00% for the employee portion and 8.48% for the employer portion for a combined total of 13.48%, which would be pay entirely by the Mayor/Council.

Some discussion held concerning the ability of the County officials and school board members to be on the state insurance plan. Attorney Brammell stated that he does not know how this is being done but that the regulations could be different. Attorney Brammell stated that any compensation to the Mayor/Council cannot be increased due to City ordinance and that the City would not be able to pay any portion of the retirement or insurance.

Motion made by Member Roberts and seconded by Member Ferguson to authorize the Mayor and/or Council to participate in the City’s health insurance and retirement if all other criteria of the retirement system and all other legal requirements are met and if they pay all costs involved so as not to result in any additional compensation to the elected officials above what is established by ordinance. All members present voted “Yea”.

With no further business to discuss, motion made by Member Roberts and seconded by Member Shannon to adjourn. All members present voted “Yea”. Meeting adjourned at 8:55 p.m.

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