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<br />NOTICE OF SPECIAL MEETING <br /> <br />A SPECIAL MEETING OF THE CHARLOTTESVILLE CITY COUNCIL WILL BE <br />HELD ON Thursday, January 26, 2006 AT 5:00 p.m. IN THE Basement Conference <br />Room. <br /> <br />THE PROPOSED AGENDA IS AS FOLLOWS: <br /> <br /> Budget Work Session <br /> <br />BY ORDER OF THE MAYOR BY Jeanne Cox <br /> <br />BASEMENT CONFERENCE ROOM – January 26, 2006 <br /> <br /> Council met in special session on this date with the following members present: <br />Dr. Brown, Mr. Caravati, Mr. Lynch, Mr. Schilling. Absent: Ms. Hamilton. <br /> <br /> Mr. O’Connell said that budget requests from all agencies and departments are <br />significantly greater than projected revenues. <br /> <br /> Mr. O’Connell reviewed the major expenditure drivers for the FY 07 budget. <br /> <br /> Mr. Schilling asked what are the areas of hiring difficulties for the Schools, and <br />Mr. O’Connell said they include the school bus program and teacher attraction and <br />retention. <br /> <br /> Mr. O’Connell reviewed the tentative proposals for salaries and benefits. He said <br />that the Retirement Commission is discussing retirement issues. <br /> <br /> Mr. Schilling asked what the difference in cost is to the City for defined benefits <br />versus defined contributions, and what would be the savings if 50% of employees went to <br />defined contributions. <br /> <br /> Mr. O’Connell said that is the type of issue that the Retirement Commission is <br />looking at. He said there has been a savings of $500,000 with the defined contributions <br />in place. <br /> <br /> Mr. Lynch asked about providing incentives for people in better health, and asked <br />about the possibility of having an approved health savings account. <br /> <br /> Mr. O’Connell said we need to look at health care for current employees versus <br />retirees. <br /> <br /> Mr. Schilling said the City is estimating a 15 – 20% increase in health costs, but <br />Albemarle County has contained their cost to a 5% increase. He asked if we can learn <br />from what they are doing. <br /> <br /> Mr. O’Connell said that the City’s most recent estimate for health care is an <br />increase of 10%. He said both the County and University of Virginia are being looked at. <br /> <br /> Responding to a question from Dr. Brown about whether the private sector offers <br />defined benefit plans, Mr. O’Connell said that most governments offer traditional pension <br />plans. <br /> <br /> Dr. Brown said that down the road Council should have a work session on these <br />issues. He wondered if the City should move in the direction of offering the defined <br />contribution program to new employees. <br /> <br /> Mr. O’Connell said that an in-depth study is being done by the Retirement <br />Commission, and it is likely that recommendations will be made regarding health care for <br />spouses of retirees. <br /> <br /> <br />