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City Council <br />Page 2 <br />The maximum potential cost to the City for funding this amendment <br />could be $26,934 the first year. This cost was calculated by the <br />State actuary several months ago. Since then several of the <br />retired employees have died and been removed from the rolls. In <br />actual practice, when the State has conducted its mandatory audits <br />every four years it has been determined that the additional costs <br />caused by adoption of the first amendment have been almost completely <br />offset after the fourth year due primarily to increased earning <br />power of the investments made with these retirement funds, and also <br />due to cost reductions from removals from the rolls. However, if <br />Council approves this amendment, some adjustments will have to be <br />made in the 1970-71 budget and they could probably best be accom- <br />plished in the mid -year review. <br />Most of the other major cities in the State that are members of the <br />State retirement system have already adopted this proposed amendment, <br />including Anaheim, San Bernardino, Long Beach, Riverside, Glendale, <br />Torrance, Berkeley, etc. In addition, the recent salary agreement <br />approved by the Orange County Board of Supervisors provides that <br />cost of living adjustments for retired County employees will be <br />granted annually up to a maximum of 3% per year. It seems only <br />fair and equitable that retired City employees be helped with this <br />increase to partially offset the cost of living increase. <br />RECOMMENDATION: That Council adopt Resolution 70-47. <br />arl J, Thoo <br />City Manager <br />ml <br />TION OF <br />DATE <br />CLERK OF T1-aL COACiL <br />