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<br /> )JD£ J <br /> City of San Marcos, Texas <br /> - Exhibit 6 <br /> Notes to General Purpose Financial Statements (continued) <br /> September 30, 1992 <br /> 3. Ad Valorem Property Taxes (continued) <br /> Under the Property Tax Code, if the effective tax rate, excluding tax rates for bonds and <br /> other contractual obligations adjusted for new improvements and revaluations, exceeds <br /> the rate for the previous year by more than 8%, qualified voters of the City may petition <br /> for an election to determine whether to limit the tax rate to no more than 8% above the <br /> effective tax rate of the previous year. <br /> 4. Retirement Plan <br /> Plan Description <br /> The City provides pension benefits for all of its full-time employees through a <br /> nontraditional, joint contributory, defined contribution plan iq the state-wide Texas <br /> Municipal Retirement System (TMRS), an agent multiple-employer public employee <br /> retirement system. It is the opiniòn of the TMRS management that the plans in TMRS <br /> are substantially defined contribution plans, but TMRS has elected to provide additional <br /> voluntary disclosure to help foster a better understanding of some of the nontraditional <br /> characteristics of the plan. <br /> Benefits depend upon the sum of the employee's contributions to the plan, with interest, <br /> and the city-fmanced monetary credits, with interest. At the date the plan began, the City <br /> granted monetary credits for service rendered before the plan began of a theoretical <br /> amount equal to two times what would háve been contributed by the employee, with <br /> interest, prior to establishment of the plan. Monetary credits for service since the plan <br /> began are a percent (100%, 150%, or 200%) of the employee's accumulated <br /> contributions. In addition, the City can grant as often as annually another type of <br /> monetary credit referred to as an updated service credit which is a theoretical amount <br /> which, when added to the employee's accumulated contributions and the monetary <br /> creditS for service since the plan began, would be the total monetary creditS and employee <br /> contributions accumulated with interest if the current employee contribution rate and City <br /> matching percent had always been in existence and if the employee's salary had always <br /> been the average of his salary in the last three years that are one year before the effective <br /> date. At retirement, the benefit is calculated as if the sum of the employee's accumulated <br /> contributions with interest and the employer-financed monetary creditS with interest were <br /> used to purchase an annuity. <br /> -22- <br /> I <br /> I <br />