HomeMy WebLinkAboutCP 190 CST FO WO I, TEXAS
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COUNCIL PROPOSAL
Date File Number Subject Opposition to Legislation Concerning
03/21/95 Cp- 190 Employees' Retirement Fund
Proposed by Those City Manage s Review 2
listed below �Q Page 10
PROPOSAL:
It is proposed that:
1. City Council oppose any state legislation that will diminish, modify or eliminate
the Council's role or authority with regard to the Employees' Retirement Fund,
including any legislation that places administration of the Fund under the
operation of a state statute; and
2. City Council and City staff express the City's opposition to any such legislation
and take whatever actions are necessary to oppose the legislation including
appearing to testify against the legislation and meeting with members of the
Legislature, Lieutenant Governor, and Governor.
DISCUSSION•
City staff has recently advised City Council about proposed legislation that would
attempt to place administration of the Employees' Retirement Fund (the "Fund") under
a state statute. The proposed statute seeks to diminish authority of the City Council
to control operation of the Fund and, therefore, represents a threat to local control.
LEGALITY•
Article III, Section 51-e of the Texas Constitution authorized cities to establish
retirement and disability pension systems for their officers and employees, if approval
was given by the qualified voters. The Employees' Retirement Fund of the City of Fort
Worth was established by ordinance in 1945 and approval was given by the voters.
In 1949, the Legislature adopted a state statute that attempted to make several changes
concerning operation of the Fund. The City refused to implement the changes and a suit
was filed. In City of Fort Worth v. Howerton, 236 S.W.2d 615 (Tex. 1951) , the Texas
Supreme Court held that where certain rights, duties and obligations have been created
by a city under a pension system adopted under the Texas Constitution, the Legislature
is not authorized to change the operations of the fund without the consent of the city.
The court determined that the statute was inoperative because the City of Fort Worth
had not consented to the changes.
Under the Howerton decision, if the statute now being proposed is adopted without the
City's consent, it will be inoperative. On the other hand, if the City Council
consents to adoption of the statute, the Legislature will have authority to control
operation of the Fund and might make future legislative changes without the City's
consent.
FISCAL NOTE:
There should be limited financial impact that will involve costs associated with travel
to Austin to meet with members of the Legislature.
LEGALITY
❑ FISCAL NOTE
❑ CITY MANAGER'S COMMENTS
0 CITY POLICIES MANUAL
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CIT FO WO 9 TEXAS
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COUNCIL PROPOSAL
rate File Number Subject Opposition to Legislation Concerning
/21/9h5 Cp-190 Employees' Retirement Fund
rO�idybelowose City Manager's Review 2 2
Page of
CITY MANAGER'S
The City Manager's Office agrees with the proposed policy a will comply as necessary.
ay G nger, Mayor
(q-L3 b2n
Kenneth Barr
Councilman, District 9
APPROVED
CITY COUNCIL
MAR 2
�ss.eJ E�iCJ
A -ftoPortW ry of the
9 LEGALITY
'(] FISCAL NOTE
❑ CITY MANAGER'S COMMENTS
0 CITY POLICIES MANUAL