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2018-04-23 Special Meeting All FundsCITY OF OKEECHOBEE GENERAL EMPLOYEESIPOLICEIFIRE PENSION BOARDS SPECIAL MEETING MINUTES, April 23, 2018 CITY HALL, 66 SE THIRD AVENUE OKEECHOBEE, FL 34974 1. CALL TO ORDER Bettye Taylor called a meeting of the Board of Trustees for the City of Okeechobee General Employees/Police/Fire Pension Boards to order at 5:11 PM in the Council Chamber at City Hall. Those resent included: TRUSTEES OTHERS OKEECHOBEE GENERAL Scott Baur & Kyle Tintle, Resource Centers Nathan Pippin - Chairman (5:16 PM) Scott Christiansen, Attorney Jackie Dunham -Secretary Melissa Moskovitz, GRS Consulting, Actuary Melissa Henry Jay McBee, DiBartolomeo, McBee, Hartley, & Barnes, Auditor POLICE Jack Boon -Chairman Bettye Taylor — Secretary Ray Worley Ryan Holroyd Darren Boyd FIRE Glen Hodges Adam Crum John Koepke It was noted that the 2. PUBLIC COMMENT There were no additional comments from the public. 3. REPORTS Auditor Report (Jay McBee) Mr. McBee presented the audited financial reports for the fiscal year ending (FYE) September 30, 2017. He discussed the audit process and explained the required disclosures for the plans. Mr. McBee provided a clean, unqualified opinion for the financial statement for the Okeechobee Police Officers Retirement System. He stated that the Plan had a total net asset of $8,943,879, The assets had a net increase of $908,150 from the previous year. Mr. McBee addressed the footnotes and the changes to the net fiduciary position. The auditor reviewed the balance sheet which includes the employer and the employee contributions for the fiscal year 2017. He discussed in detail the investments and he noted that the Plan was operating very efficiently with low administrative expenses. Mr. McBee reviewed changes to the Plan for the past year, which included the change to the mortality Meeting April 23, 2018 Page 2 of 3 assumption that was effective October 1, 2016. He concluded with reviewing the GASB 67 schedule of employer's net pension liability. Mr. McBee provided a clean, unqualified opinion for the financial statement for the Okeechobee Firefighters Retirement System, free of material mistakes and fairly presented in the GASB format. He reviewed the balance sheet indicating the total assets for the Plan as of September 30, 2017 were $3,989,831; minus the total liabilities of $27,926; resulting in a fiduciary net position of $3,961,905. The total assets were up $453,373 from the previous fiscal year end. Mr. McBee continued discussing contributions, benefit payments, expenses, and the impact they had on the Plan. Nathan Pippin arrived at the meeting at 5:16 PM. Mr. McBee provided a clean, unqualified opinion for the financial statement for the Okeechobee Employees; Retirement System, free of material mistakes and fairly presented in the GASB format. He reviewed the balance sheet indicating the total assets for the Plan as of September 30, 2017 were $4,707,869; minus the total liabilities of $6,925; resulting in a fiduciary net position of $4,700,944. Mr. McBee continued discussing contributions, benefit payments, expenses, and the impact they had on the Plan. He provided a summary of the new GASB 72 accounting principles and the impact on the report and reviewed the employer and employee contributions for the fiscal year. Jack Boon made a motion to approve the Audit for the City of Okeechobee Municipal Police Officers' Pension Trust Fund dated September 30, 2017. The motion received a second by Ryan Holroyd, approved by the Trustees 5-0. John Koepke a motion to approve the Audit for the City of Okeechobee Municipal Firefighters' Pension Trust Fund dated September 30, 2017. The motion received a second by Glen Hodges, approved by the Trustees 3-0. Jackie Dunham made a motion to approve the Audit for the City of Okeechobee Employees' Retirement System dated September 30, 2017. The motion received a second by Melissa Henry, approved by the Trustees 3-0. Actuarial Valuation (Melissa Moskovitz) Ms. Moskovitz began by reviewing the Plan provisions and assumptions for the City of Okeechobee Police Officers' Retirement System for the Board. The City contribution of $125,952 which is 12.98% of payroll will be added to the expected State Premium Tax Revenue of $78,659. The total required City and State contribution for 2018-19 is $204,611. The City has a $22,288 prepaid contribution as of October 1, 2017 which can be used to offset the required contribution. Ms. Moskovitz reviewed the funded ratio that increased from 102.5% last year to 306.4% this year, due to more assets compared to liabilities. The recommendation was to monitor investment earnings assumptions to keep it at a level that the investment consultant thinks can be achieved annually over the next ten years. Ms. Moskovitz reviewed the Plan provisions and assumptions for the City of Okeechobee Firefighters' Retirement System for the Board. The City's contributions of $88,554 which is 17.72% of payroll will be added to the expected State Premium Tax Revenue of $50,589, The total required City and State contribution for 2018-19 is $139,143, The City has a $30,216 prepaid contribution as of October 1, 2017 which can be used to offset the required contribution. Ms. Moskovitz reviewed the funded ratio that increased from 101.5% to 106.1% this year. The recommendation was to monitor investment earnings Meeting April 23, 2018 Page 3 of 3 assumptions to keep it at a level that the investment consultant thinks can be achieved annually over the next ten years. Ms. Moskovitz began by reviewing the Plan provisions and assumptions for the City of Okeechobee General Employees' Retirement System for the Board. The City contribution of $109,197 which is 10.44916 of payroll compared to the City contribution for 2017/18 of $71,639 which was 7.54% of payroll. The City has a $123,253 prepaid contribution as of October 1, 2017 which can be used to offset the required contribution requirements. Ms. Moskovitz reviewed the funded ratio of 111.0% this year compared to 111.6916 last year. The market value of assets exceeded the actuarial value of assets by $61,563, This difference will be smoothed in over the next few years. The recommendation was to monitor investment earnings assumptions to keep it at a level that the investment consultant thinks can be achieved annually over the next ten years. Attorney Report (Scott Christiansen) Mr. Christiansen stated that there will be additional fees for the Actuary due to the Division of Retirement online reporting requirements and additional actuarial services necessary to comply with State requirements. The reallocation of Plans is continuing with Mr. Lee Dehner now assuming responsibly of the City of Okeechobee Police, Fire and General Employees Plans. There being no further business, The Boards adjourned at 6:25 PM.