ST. LOUIS — Tonight, the board of aldermen convened to discuss the results of a survey conducted among the city’s residents regarding the allocation of a significant settlement sum, along with another potential investment avenue.
Over 12,000 area residents participated in the survey, expressing their preferences among a range of options for the $250 million. The top five choices were identified as follows: water main replacements, traffic calming measures, increasing city employee wages, free or municipally subsidized childcare, and improving downtown pedestrian infrastructure.
However, the primary focus of tonight’s committee meeting was the exploration of an endowment fund as a potential investment strategy. In this setup, the $250 million would be invested through a non-profit organization, with the expectation that the money would grow in accordance with market interest rates.
At present, the prevailing interest rates hover around 5.5%. This would translate to an annual return of $12 million. Alisha Sonnier, the chairwoman of the committee, noted that a conservatively managed fund could potentially double the investment in around 23 years.
Adam Layne, the Saint Louis City Treasurer, expressed optimism about the current interest rates, suggesting that even with a hypothetical reduction to 3%, the annual interest generated would still exceed $7 million.
The idea of an endowment fund has received support from Mayor Tishaura Jones’ office. There will be further discussions on the matter, all of which will be made available to the public.