2006-05-15 Study Budget - Laserfiche WebLink

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MINUTES OF THE UNIVERSITY CITY COUNCIL MAY 15, 2006 At a Budget Study session of the City Council of University City held at the City Library auditorium, 6701 Delmar, on Monday, May 15, 2006. Mayor Joseph Adams called the meeting to order at 6:00 p.m. In addition to Mayor Adams, the following Councilmembers were present: Mr. Byron Price Ms. Francine Brungardt Ms. Stefany Brot Mr. Michael Glickert Mr. Arthur Sharpe, Jr. Mr. Robert Wagner Also present were Frank Ollendorff, the City Manager, Willie Norfleet, the Director of Finance, and Yolanda Williams, Director of Human Resources. The meeting was called to order at 6:30 p.m. City Clerk, Joyce Pumm was absent and minutes were supplied by Willie Norfleet. The City Manager indicated that the city is required to make contributions in the nonuniformed pension plan. The city is required to contribute $316,000 which the employees will pay an estimate of $69,000. The employees will have their nonuniformed pension contribution increased from 2% of their salary to 3%. The city will have to pass an ordinance. The City Manager said the increase was necessary because of the increase of improvement made in the nonuniformed plan. The actuarial earning in the plan was estimated at 6½%. The nonuniformed pension plan board is working on changing the asset allocation. The investment earning according to the investment managers was an estimate of 12%, while the benchmark was an estimate of 7%. Last year and this year the actuary reported that the fund was in good shape. Last year no contribution was necessary, and he estimated $400,000 would be required this year. The city added over $200,000. There was disagreement related to the true status of the nonuniformed pension fund. It was suggested that last year’s actuarial report and a copy of the most recent financial report be provided. The City Manager indicated that the cost of living increase affordable in the budget was 3%. There will be 11 or 12 positions reclassified. There was a question about how the property tax revenue was generated. It was based on the current assessed valuation, not adjusted. There were questions related to why the personal property tax estimate was lower than former years of collection. The collection rate for personal property taxes was estimated at 92% of the billing. If collections are higher it would be reflected in the totals. There was discussion about electric and natural gas estimates. The City Manager explained that these two revenue items are directly related to weather, usage of the utility, and rate charged. Revenue down due to weather and rate cut. 1