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Session 1223, Minutes June 25, 1979 Page 12 PERSONNEL REPORT The Personnel report for the week ending June 23, 1979, was received and ordered filed. POLICE DEPARTMENT REPORT The Police Department report for the week of June 10, 1979, through June 16, 1979, was received and ordered filed. FIRE DEPARTMENT REPORT The Fire Department report for the week of June 17, 1979, through June 23, 1979, was received and ordered filed. DISCUSSION OF PENSION BILLS AND SETTING OF TAX RATES The Council decided, before the reading of any bills, to discuss the merits of the various bills having to do with the pension fund, specifically whether the fund should be at 29¢ or go to 32¢. Councilman Adams said he was very disappointed that the media did not cover the discussion on pensions at the last Council meeting, since he feels it is an extremely important topic at present, having great impact on the fiscal viability of the City now and in the future. Mr. Adams said he was in favor of using the 29¢ figure for the pension fund, rather than going to 32¢, for a great many reasons. In order to make his position clear, he stated that in August, 1978, Missouri voters passed Constitutional Amendment #4, submitted by the 79th General Assembly~ which "requires preparation of statement of costs for public inspection by qualified actuary as provided by law before final action may be taken to change sub- stantially any retirement benefits for public officials and employees." Also, in August, 1978, the citizens of University City voted on this issue, and vote being 6,238 Yes and 2,186 No. In other words, Mr. Adams feels University City citizens want their legislators to look at pension plans very carefully before making any changes. In the 80th General Assembly, H. B. 130 was passed which puts forth a pro- gram and even asks questions of actuaries before a pension plan can be changed. He emphasized that the pension plan must be actuarily sound so that when employees are ready to retire, there will be money in the pension fund on which they may retire. Mr. Adams said that when the citizens of University City voted in 1976 a maximum rate of up to 40¢ for the pension fund, that rate was to maintain the fund and not necessarily improve it. He asked that the pension board rethink its position, look at other alternatives, and come up with a different proposal. He feels some small changes may be in order, but the changes recommended now are too drastic. Council- man Adams moved that the funding for the retirement system for the fiscal year 1979-80 be 29¢. Councilman Kelley reviewed briefly the proposal for the pension plan as recommended by the Pension Board of the Uniformed Employees, and stated that the revisions which were made will correct some inequities which existed in the old plan. He also said that it is estimated that the rate which is reco-,,ended, 32¢, will result in reach- ing the limit of 40¢ only one year earlier than the present plan. He feels that the report from the actuaries is actuarily sound. Mr. Ellman said, for the record, he wanted to correct some inaccurate information which had been given to the Council. He said that the present plan provides that retirement can be gained at the age of 50 with 20 or more years of service at 37½%