2009-01-05 Regular Council Meeting Agenda

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MINUTES OF UNIVERSITY CITY COUNCIL STUDY SESSION December 08, 2008 The Council Study Session, held in the Chambers of the City Hall, on Monday, December 08, 2008, was called to order by Mayor Adams at 5:30 p.m. In addition to Mayor Adams, the following members of the Council were present: Mr. Arthur Sharpe, Jr. Mr. Michael Glickert Mr. RobertWagner Ms. Lynn Ricci Mr. ByronPrice Mr. Terry Crow was excused from the meeting. Also present were the City Manager Julie Feier, Deputy City Manager Janet Watson, the City Attorney John Mulligan and the City’s Actuary, Steve Siepman of Buck’s Consultants. The Study Session was to discuss the City’s current pension plans description, their funding and the difference between a defined benefit plan and a defined contribution plan. The City has two pension plans, uniform and non-uniform. The two funds are not co- mingled. The City did not make any contributions into the non-uniform fund from 1998 through 2005. The City started to contribute to the fund again in 2006 to the present. Funding for the fiscal year 2009 is estimated to be $472,761. The Uniform Pension plan had no City contributions added from 1997 through 2007. The City started to contribute to the fund in 2008. Funding for the fiscal year 2009 is estimated to be $890,000. The Uniform Plan contribution is based on property tax revenue. Anyone leaving the City employment would receive their contributions made plus a five percent interest. Mr. Wagner and Ms. Ricci questioned the percentage of return given to employees who left the City’s workforce. The Uniform Fund can only be increased to statutory limits by vote of the residents. Ms. Watson supplied a comparison sheet to show how University City compared with other local municipalities. Mr. Siepman explained how an actuary estimates a fund’s stability. They look at the number of employees in valuation, the applicable annual compensation, the average age and service, the number of retired and beneficiaries, the annual benefits payable, the annual pensions payable to deferred, the accrued liability and assets. It was suggested that it would be better to contribute yearly whether needed or not instead of being caught in a catch-up position. Mr. Price asked what affect the discontinuance of the defined benefit pension plan would have on the City’s employees.Mr. Siepman stated that it would be unfavorable in mid- career. The longer covered the more the employee would have to loose.