The City of Elizabethton will be offering their employees an early bit of holiday cheer, as the Elizabethton City Council agreed to changes in city’s 401(k) program management and a bonus for all part-time employees.
The City Council met Thursday evening and approved the transfer of city employees’ 401 (k) and 457 (b) assets to management by the Tennessee Consolidated Retirement System.
“Less fees will be taken out, making the value of the accounts higher,” said Financial Director Deborah Kessler.
In fact, a side-by-side comparison by TCRS found that employees will save 41 percent in fees and they will no longer have to pay a daily asset charge, she said. The 401(k) plan assets, formerly filed through Voya Financial, will be transferred to the state, and the city will no longer have fiduciary responsibility.
The 457 (b) assets were managed by Nationwide, and their transfer to the state will save city employees 67 percent.
Another benefit for City employees will be a one-time $250 bonus paid to all 11 part-time employees. A one percent bonus was included in the 2015/16 budget for all city employees, and this decision simply clarifies what part-time employees will receive.
In other news, Council members granted permission to the Elizabethton Public Library to open a bank account to make it possible to accept credit and debit card payments.
According to Library Director Renita Barksdale, over the last five months patrons complained because they cannot use cards to make payment on fines, and many of them do not carry cash. The current process for accepting payment is to record the payment on a piece of paper.
“With so many people writing transactions, there is a high probability for human error,” Barksdale said.
She cited one instance last week in which a patron wanted to pay a $30 fine, but only had a card, so she did not pay or return to settle.
Barksdale said they collect about $500 each month, but have to turn away approximately $200 monthly because they cannot accept card payments.
“The ability to use credit cards will help people pay off those fines,” said Mayor Curt Alexander.
Since the Council approved, the library will use the Square cash register, which will display a report of every purchase made and will make balancing the till much easier.
Patrons will be required to pay a 2.75 percent fee to run a card, and may only use it on transactions of $5 value or greater.
Additionally, the Council voted to approve an increase in seat belt violation fines, as mandated by Governor Bill Haslam in April. The increase will raise fines for 16- and 17-year-old drivers from $20 to $25. For first-time offenses by 18 and over drivers, the fine will be increased from $10 to $25, and for second offenders, the raise will be from $20 to $50.
The additional fines collected will go to the state, and none to the city, which is in accordance with state guidelines.
Councilman Jeff Treadway said because the city bears the costs of enforcement, it doesn’t sit well with him that the state collects the additional fees.
Jerome Kitchens responded, “Even though we’re using our resources, it serves a public benefit.”
The Council also recognized Wastewater Treatment Plant Operator Jeff Guy for being awarded the Operational Excellence Award. Johann Coetzee, city director of engineering, said this is the 8th consecutive year that the WWTP has received this award. Elizabethton was recognized for having zero wastewater treatment violations in 2014. Guy was also recognized by the Mayor for passing a Grade III wastewater treatment exam, the second highest in the state.