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An Ordinance Authorizing the Mayor, On Behalf of the City, To Execute a Specific Contract With the State Agency of the Old-Age and Survivors Insurance System. Be It Ordained by the Board of Commissioners of the City of Owensboro, Kentucky, as Follows: Sec. 1. [Contract authorized.] That Mayor Casper S. Gardner be, and he is hereby, authorized to execute on behalf of the city a contract between the city and the state agency of the old-age and survivors insurance system, which contract is in words and figures as follows, to wit: "Form PS-2 COUNTIES AND CITIES Rev. 5-55
DEPARTMENT OF ECONOMIC SECURITY
Division of Personnel Security
Frankfort
"PLAN AND AGREEMENT"
(Name) CITY OF OWENSBORO, KENTUCKY (Address) CITY HALL, OWENSBORO, KENTUCKY hereinafter called "political subdivision," does hereby apply to the Division of Personnel Security of the Commonwealth of Kentucky, hereinafter called "state agency," pursuant to the provisions of KRS 61.460, to extend the insurance system established by title II of the Social Security Act to services performed by individuals as employees of the political subdivision. The political subdivision submits for the state agency's approval this plan and agreement to become effective on the date hereinafter stated. I. Definitions: For the purposes of this plan and agreement: (a) The term "employee" means an employee as defined in section 210(k) of the Social Security Act and any amendments thereto and shall include an officer. (1) Any service performed by an employee in a position covered by a retirement system on the date this agreement is made applicable to his coverage group, unless and until the conditions prescribed under section 218(d), Title II of the Social Security Act, as amended by Public Law 761-83d Congress, have been met. (2) Service performed by an employee who is employed to relieve him from unemployment. (3) Service performed in a hospital, home or other institution by an inmate thereof. (4) Covered transportation service (as defined in section 210(1) of the Social Security Act.) (5) Service (other than agricultural labor or service performed by a student) excluded from employment by any provisions of section 210(a) of the Social Security Act, other than paragraph (8) of such section. (6) Services of an emergency nature. II. Services Covered: This plan and agreement includes all services performed by individuals for the political subdivision except: No exception. III. Administration of the Plan: The political subdivision agrees and has heretofore authorized and directed the appropriate officers and employees to do and perform all things found necessary by the state agency to the proper and efficient administration of the plan, including but not limited to the maintenance of employment records relating to both services and salaries, required contributions by both the political subdivision and its employees and other data required by the state agency or the federal security administrator, to make such reports in such form and containing such information as the state agency may from time to time require, and to comply with such provisions as the state agency or the federal security administrator may from time to time find necessary to assure the correctness and verification of such reports. IV. Contributions: (a) The political subdivision will pay into the contribution fund established by KRS 61.470, with respect to wages as defined in KRS 61.420, at such time or times as the state agency may by regulation prescribe, contributions equivalent to the sum of the taxes which would be imposed by sections 1400 and 1410 of the Internal Revenue Code if the services covered by this plan and agreement constituted employment as defined in section 1426 of such code. (b) The political subdivision agrees to levy a tax on all property assessed for taxation by the political subdivision for each and every year this contract shall be and remain in force, which levy shall be sufficient in itself, or when added to the balance remaining from previous levies, to insure the payment of the obligations of the political subdivision to the state agency imposed by this contract for the ensuing fiscal year; and the payment of such obligations shall be specifically provided for in the political subdivision's budget for each and every year this agreement shall be and remain in force. In determining the rate of taxation for such annual levies, the political subdivision shall anticipate the collection of taxes in an amount not to exceed ninety (90) per centum of the levy. All collections pursuant to said levy shall be covered into a revolving fund, to be created by the political subdivision, which shall be devoted exclusively to the payment of the obligations imposed under this contract, as and when the same shall become due and payable, until all of such obligations shall have been satisfied in full. Provided however, for the fiscal year commencing July 1, 1951, and ending June 30, 1952, or for any subsequent fiscal year hereunder, the foregoing requirements of this subsection (IV(b)) may be dispensed with by the political subdivision paying in advance into its revolving fund an amount of money sufficient to meet the combined employer-employees contributions for such fiscal year. (c) The political subdivision agrees to and shall advance to the contribution fund, provided for in KRS 61.470, an amount equal to the average quarterly contributions provided for in subsection (a) of this section plus ten (10) per centum thereof, which shall be credited to the political subdivision in the contribution fund account. The average quarterly contribution shall be arrived at in the first instance by a fair estimate based on the payroll for the previous calendar year; provided, however, that said advancement may be adjusted from time to time as the state agency may require, and when adjusted the estimate shall be based on the payroll for the calendar quarter immediately preceding the date of the adjustment. The advancement provided for herein may be used by the state agency to offset any unpaid financial obligation incurred by the political subdivision hereunder, and for no other purpose, and may be applied thereto summarily, but such use shall not relieve the political subdivision of such obligation to the state agency; provided, however, no advancement by the political subdivision shall be applied to the default of any other political subdivision. (d) The political subdivision will pay to the state treasury, at such time or times as the state agency may by regulation prescribe, an amount equal to the political subdivision's share of the cost of administration of the state agency, such amount to be not greater than five (5) percent of the contributions made by the political subdivision under paragraph (a) of this section. (e) The political subdivision agrees that it shall impose upon each of its employees, as to services which are covered by this plan and agreement, a contribution with respect to his wages, not exceeding the amount of the tax which would be imposed by section 1400 of the Federal Insurance Contribution Act if such services constituted employment within the meaning of that act, and to deduct the amount of such contribution from his wages as and when paid. It is further understood that the contributions so collected shall be paid into the contribution fund in partial discharge of the liability of the political subdivision, but that failure to make such deduction shall not relieve the employee or the political subdivision from liability therefor. V. Adjustment, Refunds and Interest on Delinquent Payments: (a) If more than the correct amount due under part IV of this plan and agreement is paid with respect to any remuneration, proper adjustment (or refund, if adjustment is impracticable) shall be made without interest in such manner and at such times as the state agency shall prescribe. (b) If the political subdivision does not make, at the time or times due, the payments required under this plan and agreement, there shall be added, as part of the amounts due, interest at the rate of one-half of one (0.5) percent per month or fraction thereof. (c) Without prejudice to other available methods of collection, the state agency in its discretion may deduct such delinquent amounts plus interest from any other money payable to the political subdivision by any department, agency, or fund of the state. VI. Modification: This plan and agreement may be modified, at the request of the political subdivision, to include coverage groups or services in addition to those now included by this plan. Such modification must be consistent with KRS chapter 61 and the provisions of section 218 of the Social Security Act. VII. Effective Date: This plan and agreement shall be effective as of July 1, 1956. This plan and agreement is entered and submitted by the political subdivision this twenty-fifth day of June, 1956.
CITY OF OWENSBORO, KENTUCKY
(Name of Political Subdivision) By /s/ Casper S. Gardner Title Mayor Attest: /s/ Adelle Shelton City Clerk (Title) The foregoing plan and agreement is approved and accepted. Dated _____ , 195__.
DEPARTMENT OF ECONOMIC SECURITY
By _____ Commissioner Attest: _____ Title _____ Sec. 2. [Effective date.] This ordinance shall be in full force and effect from and after its final passage, approval and publication as required by law. Introduced, publicly read and passed on first reading this eighteenth day of June, 1956. Publicly read and finally passed on second reading this twenty-fifth day of June, 1956. |