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<br />concrete number. <br /> <br /> Ms. Carr asked if the board was recommending this one-time contribution of $1.2 <br />million because the City could or was it because of necessity. <br /> <br /> Mr. Carr stated that he did not know, but the minutes stated that there were $10 million <br />in reserves. He said he was against the motion and commented that the numbers used <br />were based on December 31, 2011, values and he felt the board should not present an <br />idea to City Council without a clear and specific need. <br /> <br /> Ms. Carr asked what would happen to the money if the market took a dive. <br /> <br /> Mr. Carr said if you put the additional $1.2 million in for a year and the market took a <br />dive then whatever was invested would go down in value. She asked if the board <br />considered any other approaches such as adjusting the amortization rate from 30 years <br />to 15 years or any other rate of return in determining the amount to be paid the pension <br />plan that was asked for each year. <br /> <br /> Mr. Carr said they discussed what would happen if they reduced their actuarial <br />assumption from 6½% to 6%. He said if it were reduced to 6%, it would be assumed <br />that the money is growing at a slower rate and therefore would have to put in more. He <br />believed the differential on annual contribution would be around $100,000. Mr. Carr <br />said if it was reduced to 5%, the contribution would almost double. He said the 6½% <br />was based on the long-term expectation of the growth of the assets in the plan and <br />were no higher than average. <br /> <br /> Ms. Carr asked if adjusting the rates by smoothing, as a utility budget billing method <br />would work. <br /> <br /> Mr. Carr said that would be called smoothing, which would average the market’s <br />fluctuations and would be based on a five year performance record. He said the market <br />has grown since the 2008 financial collapse but have not seen the benefits because the <br />past bad years are still calculated in. <br /> <br /> Ms. Carr asked when the board would receive the actuary’s next report. <br /> <br /> Mr. Carr stated that they are a little late this year because of changes in command <br />internally. <br /> <br /> Mayor Welsch noted that the discussion with Mr. Carr was over ten minutes and asked <br />how many more questions she had. <br /> <br />Ms. Carr said she had one more question. Ms. Carr asked if there was immediacy or <br />an emergency nature to this request or if it could be postponed and incorporated into <br />next year’s budget. <br /> <br />Mr. Carr stated that he did not know the immediacy of this request and the budget cycle <br />would be up to the Council. <br /> <br />5 <br /> <br /> <br />