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pumper truck and something tells me 550 thousand dollars is going for a second <br />pumper truck. He said he was in a pension meeting and it looks as if our <br />pension fund is underfunded by two million dollars. Mr. Kraft asked, if the City <br />converted their plan to a defined contribution plan, would the City have to fund <br />the existing plan in order to make the conversion. <br /> <br />Ms. Watson said it did not have to be fully funded because if the present plan <br />continues, there will still be liabilities and assets with the plan. She stated that <br />there might be higher contributions because new employees require less funding. <br /> <br />Mr. Kraft said if the City is two million dollars down in funding payments and it <br />has to come from somewhere. The accounting practice is to fund it at an <br />amortized rate over 30 years. So the City has thirty years to come up with two <br />million dollars. Mr. Price asked what was the balance of the pension fund as of <br />today, as the DOW went over 13, so hopefully we will have a gain. <br /> <br />Ms. Watson provided a handout about the market value of the pension plan. <br />She said it had gained quite a bit in 2009 and was a little down in 2010. She got <br />these first two numbers, 08 and 09, from the actuarial reports that were handed <br />out. She used the investment report we received from our investment manager <br />for December 3, 2010. Ms. Watson said there was significant gains in 2009 and <br />2008 was low, very low. <br /> <br />Mr. Price said the number he needed to know is how it is today as there is a big <br />difference between now and December 31. <br /> <br />st <br />Ms. Watson stated she could find the amounts for January 31 only because the <br />City does not market value their assets daily. <br /> <br />Mr. Price said he knew that so whatever she can get. <br /> <br />Ms. Ricci asked Ms. Watson if the gain in 2009 was the fiscal year or the <br />calendar year because fiscal year 2009 was when the City had that $12,000 <br />budget difference where there was a several million dollar loss of income, so if <br />the City had that loss, how was there a gain. <br /> <br />Ms. Watson explained the information Ms. Ricci was looking at was for a fiscal <br />year and the actual low was March 2009. The market fell in the fall and winter of <br />08 and 09. <br /> <br />Mr. Crow stated according to the numbers provided it looked like there was a 2.8 <br />million for non-uniform and 2.9 million for police and fire. His question was do we <br />have the same portfolio manager for both retirement funds and are they invested <br />the same across the board. He saw the funds increase about the same but the <br />downturn appeared different between the funds. He asked if the City was still <br />with only one custodian for both funds. <br /> <br />Ms. Watson stated the City has only one custodian. She noted the Pension <br />Board has discussed this issue and they are working with the City Manager on <br />developing an RFP for investment management services. <br />4 <br /> <br /> <br />