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<br />conservative to 8½% being very risky depending on the assumption made. <br /> <br />Mr. Kraft asked if 6½% was an unreasonable rate. Mr. Carr felt that it was a good <br />average to use. <br /> <br />Mr. Price stated that the money was not just sitting around, but it was there to be used <br />for the upkeep of the City. He said to make a statement of excess money sitting around <br />was invalid. <br /> <br />Mr. Crow said that the Director of Finance said this was not just money we have sitting <br />around with no use but rather a Reserve Fund for City to use in an emergency. He said <br />comparing money in a checking account vs. money in a pension plan was like <br />comparing apples to oranges. Mr. Crow said a checking account was readily <br />assessable as oppose to a long-term investment with lots of strings attached to it. He <br />said part of the reason Council was in this quandary was not because we have earned <br />our 6½% in the last few years, but because no one in the country has earned 6½% <br />since coming out of the second most significant economy crisis in our country. Mr. <br />Crow agreed with Mr. Kraft and stated that this was not a zero sum game as some <br />presented tonight. He believed the prudent approach was to ask the pension board <br />members if they would like to participate with the City Councilmembers and meet with <br />the actuary. He felt there was no need to vote right now, but to ask the City Manager to <br />set up a meeting with the actuary, invite members of the pension board, and get their <br />input on this specific question. <br /> <br />Ms. Carr questioned if the payments were a one-time payment or if paid monthly. <br /> <br />Mr. Walker stated that payments could be made either way. He said it would just be an <br />accounting transaction. <br /> <br />Mr. Gregory Pace, 7171 Westmoreland Drive <br />Mr. Pace stated that defined contribution was the way to go as this was now happening <br />in the private industry. He said if it were defined contributions then we would not have <br />to be concerned about this. He suggested that if it was any interest to Council then to <br />get in touch with Mr. Aaron Hilmer, Director of the Mehlville Fire Protection District to <br />examine their strategy because they use defined contribution. <br /> <br />Mr. Crow made a motion to direct the City Manager to set up a study session with the <br />City’s actuary and the members of the Pension Board to ascertain an appropriate <br />course of action as to the allocation of any funds from the general fund to the pension <br />fund, and was seconded by Mr. Sharpe. <br /> <br />Ms. Carr asked if the money was actually coming from the general fund or the reserves. <br /> <br />Mr. Crow stated the reason he made the motion that way was because if the actuary <br />comes back and wants Council to do this, then this number needs to be a part of the <br />budget process and by making it part of the general fund denotes to him that it would <br />be part of the budget process moving forward. He said it allows all Councilmembers to <br />prioritize this contribution along with streets, public safety and everything else. <br /> <br />7 <br /> <br /> <br />