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2020-05-04 General Meeting & All Funds Individual MeetingsCITY OF OKEECHOBEE GENERAL EMPLOYEES/POLICE/FIRE PENSION BOARDS REGULAR MEETING MINUTES, May 4, 2020 CITY HALL, 55 SE THIRD AVENUE OKEECHOBEE, FL 34974 ELECTRONIC MEETING 1. CALL TO ORDER Nathan Pippin called the meeting of the Board of Trustees for the City of Okeechobee General Employees, Police, and Firefighter Pension Boards to order at 5:10 PM in the Council Chamber at City Hall. Those persons present included: TRUSTEES OKEECHOBEE GENERAL Nathan Pippin, Chair Donna Howard Melissa Henry, Secretary TRUSTEES POLICE Cody Daigneault Bettye Taylor, Chair Ray Worley James Pickering, Secretary OTHERS Kyle Tintle & Scott Baur, Resource Centers Scott Christiansen, Attorney, Christiansen & Dehner John McCann, AndCo India Reidel, Finance Director, City of Okeechobee Jennifer Borregard & Shelly Jones, Gabriel Roeder Smith TRUSTEES FIREFIGHTERS Herb Smith, Chair Adam Crum, Secretary Glen Hodges The Agenda was review and approved. The Boards agreed the reports will be presented sequentially beginning with the General Employees, followed by the Police and Firefighters. Adam Crum made a motion to approve the Agenda and the reports should be presented sequentially. The motion received a second from Glen Hodges, approved by the Trustees 3-0. Bettye Taylor made a motion to approve the Agenda and the reports should be presented sequentially. The motion received a second from Ray Worley, approved by the Trustees 4-0. Melissa Henry made a motion to approve the Agenda and the reports should be presented sequentially. The motion received a second from Donna Howard, approved by the Trustees 3-0. 2. Jennifer Borregard & Shelly Jones, Gabriel Roeder Smith & Company (GRS) Ms. Borregard came before the Boards to present the October 1, 2019 Actuarial Valuations for the City of Okeechobee General Employees' Retirement System, (General Employees - GE); the City of Okeechobee Firefighters' Retirement System (Firefighters' — FF); and the City of Okeechobee Police Officers' Retirement System, (Police — PD). She began by thanking the first responders and essential workers for serving the community during the pandemic. Larry Wilson prepared and presented the valuations has retired from GRS. Ms. Borregard said that Nickolas Lahey has joined the team serving the Okeechobee Boards. Hopefully, he will be coming to the board meeting next year. All three plans had a clean valuation. She reviewed the provisions and assumptions for the three Plans. The minimum payment for the GE for the year ending September 30, 2020 is 15.3% of covered payroll ($173,676) which is up from last year at $150, 582. The cost is based on the projected covered annual payroll for the fiscal year ending (FYE) October 1, 2020 is $1,132,085 versus 2019 of $986,150. The anticipated member contribution is 6.0% of covered payroll ($67,925). The City's required minimum contribution is 9.3% of covered payroll ($105,751) to be paid in FYE September 30, 2021. The System has a credit Meeting May 4, 2020 Page 2 of 5 balance of $123,702 as of September 30, 2019. The City may use this credit to offset the minimum required City contribution. The minimum payment for the PD for the year ending September 30, 2020 is 22.4% of covered payroll ($230,117) which is down from the previous year of ($239,057). This cost is based upon projected covered annual payroll for the FYE October 1, 2020 (1,061,836) versus the previous year at ($932,186). The anticipated member contribution is 5.0% of covered payroll ($53,092) and the State will contribute ($90,153) or 8.5%. The City's required minimum contribution is 8.9% of covered payroll ($94,872) to be paid quarterly in FYE September 30, 2021. The System has a credit balance of $59,327 as of September 30, 2019. The City may use this credit to offset the minimum required City contribution. The minimum payment for the FF for the year ending September 30, 2020 is 29.5% of covered payroll ($125,387) which is down from last year at $183,016. This cost is based upon projected covered annual payroll for the fiscal year ending (FYE) October 1, 2020 ($425,697). The anticipated member contribution is 5.0% of covered payroll ($21,285) and the State will contribute ($52,810) or 12.4%. The City's required minimum contribution is 12.0% of covered payroll ($51,292) to be paid quarterly in FYE September 30, 2021. The System has a credit balance of $28,046 as of September 30, 2019. The City may use this credit to offset the minimum required City contribution. Melissa Henry made a motion to approve the Actuarial Valuation for October 1, 2019 for the General Employees' Plan. The motion received a second from Donna Howard, approved by the Trustees 3-0. James Pickering made a motion to approve the Actuarial Valuation for October 1, 2019 for the Police Plan. The motion received a second from Cody Daigneault, approved by the Trustees 4-0. Adam Crum made a motion to approve the Actuarial Valuation for October 1, 2019 for the Firefighters' Plan. The motion received a second from Glen Hodges, approved by the Trustees 3-0. 3. Investment Report (John McCann) Mr. McCann remarked what a horrible quarter it has been due to the global pandemic, COVID 19. Both domestic and international markets have taken a tumble over the quarter. Mr. McCann provided the quarterly investment reports for each Board's review for the period ending March 31, 2020. He continued reviewing the performance of the portfolios for the General Employees', Police and Firefighters' Plans. The market value for this quarter for the General Plan was $4,826,681 versus the previous quarter at $4,395,306 a difference of $431,375; the Police Plan ended the quarter with $9,230,983 in assets versus last quarter's balance of $8,645,662 in assets a difference of $585,321; the Fire Plan ended the quarter with assets of $4,196,697 versus the previous quarter's ending balance of $3,843,233 a difference of $353,464. Mr. McCann reviewed the asset allocations for each Plan. He continued with the numbers for the quarter: General Employees' 10.25% versus the policy of 9.20% a difference of 1.05%; Police 10.11% versus the policy of 9.02% a difference of 1.09%; and Fire 9.96% versus the policy of 9.02%, a difference of 0.94%. Mr. McCann reviewed the fiscal year to date numbers, one year, three-year, five year, and the returns since inception for each of the Plans. He noted the Plans have already recouped some of their losses by April. For the General Employees the fiscal years to date numbers are: -0.55% against the benchmark of 0.73%, a difference of -1.28%, Police -0.38% against the benchmark of 0.73%, a difference of -1.11%; Firefighters' -0.40% against the benchmark of 0.73%, a difference of -1.13%. Mr. McCann noted Dodge & Cox did much better for the month of April. In May he will mail Ms. Tintle a copy of a Flash report showing where the Plans are at that time. These investments are meant to be long term investments and there is no sense trying to time the markets. The investments are for the long term, set up for 30 or 40 years returns for the members. Meeting May 4, 2020 Page 3 of 5 Nathan Pippin made a motion to approve a 7% investment return for the Okeechobee General Employees Retirement System based on the advice of the investment consultant for the next year, the next several years and for the long-term thereafter. The motion received a second from Melissa Henry, approved by the Trustees 3-0. James Pickering made a motion to approve a 7% investment return for the Okeechobee Police Officers' Retirement System based on the advice of the investment consultant for the next year, the next several years and the long-term thereafter. The motion received a second from Cody Daigneault, approved by the Trustees 4-0. Adam Crum made a motion to approve a 7% investment return for the Okeechobee Firefighters' Retirement System based on the advice of the investment consultant for the next year, the next several years and the long -tern thereafter. The motion received a second from Glen Hodgs, approved by the Trustees 3-0. 4. Attorney Report (Scott Christiansen) Mr. Christiansen reminded the Trustees that their Form 1 financial disclosure was due to the Supervisor of Election in their place of residence by July V. He will review the Trustee compliance before the August 5th meeting and let everyone know who did not summit the forms on time. Mr. Christiansen informed the Boards the Firefighters' Cancer Presumption ordinance was adopted and sent to Tallahassee. The election for the fifth member of the Firefighters' plan can be anyone the other four Trustees elect, and Josh Sanders has agreed to return to the Firefighter's Board. Mr. Christiansen noted that the Minutes for the Special Meeting of March 30, 2020 were not included in the meeting packet. He requested the minutes be available for the August meeting. A discussion ensued of the City's interest of merging the Firefighters with the County's Firefighters. Currently the City Council has not made a decision of how they will proceed. Mr. Christiansen requested copies of any Inter -local agreement between the City and the County for his review. There was a discussion of an actuarial study of the cost of merging the two departments. An actuarial impact study was not formally requested from the City to GRS. Ms. Reidel requested the study be performed and she will put the request in writing for GRS to proceed with the study. 5. Administrative Report (Scott Baur) Mr. Baur reviewed how the Resource Centers is equipped to maintain standards while working remotely. The phone system works well, and the employees are setup to operate efficiently. He asked if any of the Boards had any unfinished or new business to be addressed. There was none. The boards were addressed sequentially to review, discuss and vote on items. The General Employees' Trustees were asked if they have reviewed the February 3, 2020 meeting minutes. Donna Howard made a motion to accept the Quarterly Meeting Minutes for the February 3, 2020. The motion received a second from Nathan Pippin, approved by the Trustees 3-0. The financial statements for March 2020 were presented to the Board for review. The financial statements were received and filed. The quarterly expenses were reviewed by the Trustees. Melissa Henry made a motion to approve the Warrants presented for May 4, 2020. The motion received a second from Nathan Pippin approved by the Trustees 3-0. The Board was presented with the new employee's acknowledgement for Jacob Smith. Meeting May 4, 2020 The new employee acknowledgements were accepted by consensus. PUBLIC COMMENT There were no public comments at this time. There being no further business, the Board was adjourned at 6:22 PM. Page 4 of 5 Chair Secretary Bettye Taylor called the individual meeting of the City of Okeechobee Police Officers' Retirement System to order at 6:22 PM. The Police Officer Trustees were asked if they have reviewed the May 4, 2020 meeting minutes. James Pickering made a motion to accept the Quarterly Meeting Minutes for the February 3, 2020. The motion received a second from Cody Daigneault, approved by the Trustees 4-0. The financial statements for April 2020 were presented to the Board for review. The financial statements were received and filed. The quarterly expenses for May 4, 2020 were reviewed by the Trustees. Ray Worley made a motion to approve the Warrants presented for May 4, 2020. The motion received a second from James Pickering approved by the Trustees 4-0. The Board was presented with the Administrative Budget reflecting the FY19 Expense Report and the FY2021 Budget. Mr. Baur reviewed the purpose of the Administrative Budget and next year's projections. Cody Daigneault made a motion to approve the Administrative Budget for FY2021. The motion received a second from James Pickering approved by the Trustees 4-0. The new employee acknowledgements were accepted by consensus. Other Business A discussion was held on members going into the DROP and what would the start date be if a member enters the DROP in the middle of the month. Mr. Baur explained that the DROP starts the first day of the following month after they resign. He answered the various questions that were raised. PUBLIC COMMENT There were no public comments at this time. There being no further business, the Board was adjourned at 6:32 PM. Meeting May 4, 2020 Page 5 of 5 Herb Smith called the individual meeting of the City of Okeechobee Firefighters' Retirement System to order at 6:32 PM. The Board reviewed the minutes from the Quarterly Meeting which was held on May 4, 2020. Adam Crum made a motion to approve the Okeechobee Firefighters' Retirement System held on May 4, 2020. The motion received a second by Herb Smith approved by the Trustees 3-0. Mr. Baur presented the Board with the Interim Financial Statements. The Trustees received the financials and they were accepted by consensus and filed. Mr. Baur presented the Board with the Administrative Budget reflecting the FY19 Expense Report and the FY2021 Budget. Adam Crum made a motion to approve the Administrative Budget for FY2021. The motion received a second by Herb Smith approved by the Trustees 3-0. Other Business Glen Hodges asked if everything was in order for him going into the DROP. Ms. Tintle replied that she was waiting on proof of age for his fiance to complete the process. Mr. Christiansen requested the proof should be sent to the Resource Centers before the end of the month. Glen Hodges agreed to do so. The Board requested a copy of the Actuarial Impact Statement requested by the City regarding the merger with the County Firefighters. Ms. Jones agreed to provide a copy to the Board. There being no further business, the Board was adjourned at 6:43 PM. Chair Secretary