2003-08-13 Police Fund Meeting•
CITY OF OKEECHOBEE
POLICE PENSION FUND
August 13, 2003
l��IINUTES
Trustees Present: Dennis Wayne Davis, Steve Padgett, Tommy Raulerson, Beriye
Taylor
Trustees Absent: Steve Nelson
General meeting called to order by L.C. Fortner at 5:00 PM.
Report from Brian Coker of Invesco. Handed out book of investments. Said July
2003 was good. Dennis Davis questioned Coker as to whether they (Invesco) had
changed their investment style. Coker advised they had invested into financial,
material and utilities stocks last year. Coker said it took to now for their choices to
turn around the fund.
� Re ort from Earnest Mahler III of Salomon Smith Barne . Said stocks axe rall in ,
p Y Y g
bonds are not due to interest rate being kept same.
Presentations were given by Trusco Investments and Invesco Investments.
Presentation by Brian Coker of Invesco. Coker stated that in June of 2001 they
combined with Invesco-Nam. Said Invesco Nam had 18 years of experience in this
field. Coker said their investment strategy is with Blend Value and Growth. Coker
said they were close to the S& P 500.
Presentation by Steve Gordon of Trusco Investments.
Gordon said Trusco Investments in tied to Suntrust Banks. Gordon said there fees are
65% basis points. Gordon said included in the 65 % is custodian; check writing, and
all other services including tax papers being filed. Gordon said this office is Orlando.
Gordon said they are a full service Money Manager. Gordon said their portfolio was
not much different then Invesco's. Gordon said their policy is not to jump on each
new stock that climbs quickly then drops. Gordon said they use Balanced Investment
Performance. Gordon said they also had a rally in their portfolios in July. Gordon
'• said Trusco will not deal in low quality stocks; their policy is to hold middle of the
road. Gordon said they would take the pension funds under one umbrella to reach
• their 10 million dollar mark to reduce the basis fees to he thought 50%.
Earnest Mahler III of Salomon Smith Barney did comparison of both companies.
Said he could not pin down actual cost of dealing with Trusco that he had asked and
not gotten a straight answer. Gordon was called back before the board and
questioned as to bottom line of cost of all fees. Gordon said all fees are included in
the 65 basis point fee. Mahler kept questioning Gordon as to asset allocation fees.
Gordon said all fees are including in the basis point.
A motion was moved by Steve Padgett of the Police Pension board to switch
investment companies to Trusco, at stated fees by Trusco. Tommy Raulerson
seconded the motion. All in favor on the Police Pension Boards.
A motion was moved by Steve Padgett of the Police Pension board to give Attorney
Scott Christiansen direction to make new contract at sta.ted fees with Trusco.
Fire Pension Board and General Services voted to make the same switch.
Attorney Scott Christiansen advised all members to make sure their financial
� disclosure forms were filed. Christiansen said the state had upped the amount to the
Police Pension Fund to approximately $104,Q00 total this year. Christiansen
reviewed the Public Records Management Resolution. And asked Carolyn Arnold of
Public Service if the City Clerk, Lane Gamiotea, could store the records. Arnold said
there should be no problem having this done at City Hall.
All boards conducted separate meetings beginning at 7:45 PM.
Chairman Dennis Davis called the Police Pension Board to order.
Present: Major Tommy Raulerson, Steve Padgett and Bettye Taylor
Motion was made by Steve Padgett to accept the minutes of the May 14, 2003 Police
Pension Board meeting. Seconded by Tommy Ra.ulerson. Motion was carried
unanimously.
Motion was made by Steve Padgett to accept the Public Records Management
Resolution requested by Attorney Scott Christiansen. Seconded by Tommy
Raulerson. Motion was carried unanimously.
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Motion made by Steve Padgett, seconded by Tommy Raulerson, carried unanimously
to accept the following expenditures:
Retirement payments
Arthur Weyman
Lawrence Coonfare
Rehmund Farrenkopf
Janis Levin
Larry Mobley
Eugene O'Neill
Overall total
$4276.86
$2882.43
$7079.67
$2523.57
$7604.22
$3455.31
$27,822.06
Terminated Members Payments
Christopher Hill $853.71
Outflows of fees from 4/1/03 through 6/30/03
Accountant Fees $624.00
Actuary Fees $390.00
Attorney Fees
Contributions Refunded
Funds Transferred
Investment Fees
Pension Payment
Overall total
$925.14
$853.71 (Christopher Hill)
$50,000.00
$11,085,09
$27,822.06 (Retiree Payments)
$91,700.00
Motion made by Tommy Raulerson seconded by Steve Padgett carried unanimously
to accept new member Todd Lorentzen.
Tommy Raulerson made motion seconded by Steve Nelson, carried unanimously to
send Steve Nelson a letter reference his lack of attendance and necessity of having
him replaced.
Meeting adjourned at 8:00 PM
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Chairman Dennis Davis
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iS'ecretary �ettye Taylor