81-022 RES t
RESOLUTION NO. 81-22
RESOLUTION AUTHORIZING AGREEMENT WITH
CITY ADMINISTRATOR RELATING TO DEFERRED COMPENSATION
WHEREAS, Robert C. Middaugh, (Middaugh) , City Administrator of the City of Elk
River has elected to be excluded from membership in the Public Employees Retire-
ment Association, which election has been approved by the City Council; and,
WHEREAS, prior to such action the City has contributed an employer's contribu-
tion to the Public Employees Retirement Association for his account; and,
WHEREAS, by reason of such election, the City's employer contribution to PERA
on his account will cease; and,
WHEREAS, Minnesota Laws,. 1981, Chapter 254, Section 1, provides as follows:
"[DEFERRED COMPENSATION; CITY CONTRIBUTION.] If an election
of exclusion is made, and if the City Manager and the govern-
ing body of the City agree in writing that the additional
compensation is to be deferred and shall be contributed on
behalf of the City Manager to a deferred compensation program
which meets the requirements of Section 457 on the Internal
Revenue Code of 1954, as amended through December 31, 1980,
• the governing body may compensate the City Manager, in addition
to the salary allowed under any limitation imposed on salaries
by law or charter, in an amount equal to the employer contri-
bution which would be required by Minnesota Laws, 1981, Chapter
254, Section 1, if the City Manager were a member of the association."
WHEREAS, the City Council desires to exercise the authority conferred by the
aforementioned Minnesota Laws, 1981, Chapter 254, Section 1,
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk River,
Minnesota, as follows:
1. In addition to the City Administrator's salary now in effect or
which may hereafter be established from time to time as his stated salary,
shall be compensated in an additional amount equal to the employer contribution
which would be required by Minnesota Laws, 1981, Chapter 254, Section, 1, if he were
a member of the Public Employees Retirement Association subject, however, to the
provisions of the following paragraph of this resolution.
2. Such additional compensation shall be paid only if and during
the time that there is an agreement between City and Middaugh wherein it is
agreed in writing that the additional compensation is to be deferred and shall
be contributed on behalf of Middaugh to a deferred compensation program which
meets the requirements of Section 457 of the Internal Revenue Code of 1954,
as amended through December 31, 1980.
S
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Resolution 81-22
Page Two
June 22, 1981
a3. The Mayor, acting for and in behalf of the City, is hereby
authorized and directed to enter into an agreement of a type described in
the foregoing paragraph no. 2 with Middaugh. Upon the execution of such agree-
ment, the Mayor, City Administrator and other appropriate officials of the City
are authorixed to take the actions necessary to give effect to the provisions
of such agreement.
WHEREUPON SAID RESOLUTION WAS DECLARED DULY PASSED AND ADOPTED THIS
22nd DAY OF June , 1981.
Richard Hinkle
Mayor
ATTEST:
• Roiert C. Middaugh
City Administrator
(Seal)