2008-02-11 Police Fund Meeting•
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U
CITY OF OKEECHOBEE AND OKEECHOBEE UTILITY
AUTHORITY
PENSION BOARD MEETING MINUTES
February 11, 2008 5:05 PM
CITY GENERAL/OUA, POLICE AND FIRE FUNDS
l. The meeting was held at City hall, 55 Southeast 3rd Avenue, Room 200,
Okeechobee, Florida, and was called to order by Mr. Mullis at 5:08 p.m.
CITY GENERAL/OUA MEMBERS
Jamie Mullis, Chair - Present
Robin Brock - Present
POLICE OFFICERS MEMBERS
Denny Davis, Chair - Present
Bettye Taylor, Secretary-Present
Victoria Williams - Present
Louise Chandler - Present
Bill Bartlett- Present
FIREFIGHERS MEMBERS
John Koepke, Chair - Present
Bill Douglas, Secretary-Present
Glen Hodges - Present
Gary Ridder - Present
Brook Conway-Present
2. Investment Reports:
A. Trusco Capital Management, Inc. Representative Mary Durkin presented the First
Quarter 2007, period ending March 31, 2007, investment report for all three funds:
Citv GetteraUOUA
Portfolio Value on 09/30/2007 $5831,865.93
Beginning Accrued Income $ 285.56
Portfolio Yalue $5832,151.49
Net Contributions $130 2131 S
Withdrawals
Gain (loss)
Interest and Dividends
Net Accrued Income
Market i�alue
Ending Accrued Income
Portfolio i�a[ue at IZ/31/07
Citv Fire
Market i�alue oii 09/30/07
Begiii�ii�zg Accrued Inconie
Portfolio Yalue
Contributions
Witlidra►vals
Gain (Loss)
� .
� (63, 213. 85)
$ (47, 395. S8)
$ 54, 297.14
$ 23. 64
$5905, 766. 79
,$ 309.20
$S, 906, 075. 99
$2,229,494.86
75.62
2,224,570.98
37,682.54
(13,814.47)
(18,105.38)
�
•
Iftterest and Dividends
NetAccrued Income
Market i�alue
EndingAccrued Lzcome
Portfolio Value o�:12/31/07
City Police
Market Iralue on 09/30/07
Begin�tingAccrued bicome
Portfolio Value
Contribuiions
Witlidrawals
Gain (Loss)
I�:terest and Dividends
NetAccrued Income
Market i�alue
EndingAccrued Inconie
Portfolio i�atue on 12/31/07
20,805.39
83.00
2,251,062.94
158.62
2,251,221.56
$5,282,285.31
222.73
5,282,508.04
99,000.81
(54,039.12)
(43,030. 71)
49,117.88
(128.36)
5,283,339.17
94.37
5,283,428.54
James Phebus and Marv Durkin of Trusco �ave a review of the Portfolio
Economic momentum slowed due to continued weakness in the housing market, higher
oil prices, sagging job growth and tighter credit conditions. The Federal Reserve was
dealing with stubborn core inflation but cut the overnight federal funds rate to 4'/4%.
The Russe113000 lost 3.3% in the final quarter but finished the year with a 5.1% gain.
The International Index fell a more modest 1.8% for the quarter and rose 11.2% for the
year. Large caps and Growth style continued to outperform in domestic markets, while
Large Cap and Emerging Markets outperformed internationally.
Investment grade bond indexes improved during the quarter do to the trading in higher
quality Treasury bonds. The Lehman Aggregate Bond Index rose 3.0% for the quarter
and 5.9% for the year.
Bottom line was that stocks fell and bonds gained in the final quarter amid concern over
the health of the economy and corporate profits. Strength, sustainability and qaality
outperformed.
They advised that Trusco feels market will continue to be volatile for thelst part of the
year. They are favoring the equities.
Monitor Ernie Mahler advised Trusco that they have to report the slight loss in their
books even through it was no amount of consequence.
SmithBarnev Citi�roun renresentatives, Mr. Ernie Mahler nresented his
comnarative fund analvsis renorts.
• Mahler advised he had not been given an answer by his company on the possibility of
signing a new contract with the city. Mahler also commented that he had not been given
any information showing any type of conflict between SmithBarney and Trusco. Mary
Durkin of Trusco advised they did find where Trusco and Citicorp had some dealings but
nothing that would ever cross their desk and have any conflict with the Pension Boards.
Mahler advised the reports from Trusco look good. He advised he had checked the cash
flow of the boards and did not find any problems there. He advised this is an area where
any problems normally show up.
He advised he did not like bonds moving forward because they would take months to
realize a profit and things would turn around again. He advised he felt Trusco was doing
a good job and they were handling things appropriately. He advised the benchmark of
7% was passed and realized with an 8.69% earning.
Ernie Mahler advised that our contract was still good with his company and it does have a
fiduciary statement in the letter.
Items/Renorts from Board Attornev Christiansen.
No legislation passed the house and will be back on the floor in government this
year. He asked about the pretax legislation. Bettye Taylor advised that Chief Mobley was
contacted and did not want to change the way he pays for his health insurance. According
to Christiansen the law says the City has to offer to allow an employee stay in the group
plan health insurance but they can make you pay for it. He asked that I call Chief Mobley
and have him talk with Attorney Christiansen because this would save him approximately
� $600.00 per year with the pretax deductions. He said to make sure that only normal and
disability retirees are eligible for this deduction.
Sent memo stating that we get omissions and admissions Certificate of Insurance
from all companies.
Fire Fighters cannot get more the 6% of total payroll for department. He advised
that they need to know this means total payroll including FICA and SS paid in on all
employees. He advised the additional money goes into supplemental fund which is where
the money comes from to pay for education incentives.
He reviewed the new legislation on the Social Security Protection act and what
the boards need to do to stay compliant. He wanted to make sure the letters were sent to
the people that were required to get it.
He asked for a vote on which three of the Monitor Companies that the boards
wanted to invite in for a special meeting.
Police : Victoria Williams made a motion that we interview Thistle Asset
Consulting, CapTrust and Bogdahn Group. Louise Chandler seconded the motion. All in
favor. The date will be set after Police reviews their training schedule for the next couple
of months. He advised this would all so pull the General Board into compliance for the
meeting they needed.
Christiansen advised that he would work out a meeting time and then we could
contact everyone.
•
. Police Board Called to Order at 6:18 PM by Chief Denny Davis
Bill Bartlett made a motion to accept the minutes from the November 19, 2007
meeting. Louise Chandler seconded the motion. Motion passed with all in favor.
Bill Bartlett made motion to accept expenditures of Following:
1. Gabriel Roeder Smith and Co $1150.00
2. Christiansen and Dehner $1070.32
3. LB Bryan and Company $3209.78 (Insurance)
4. City for Conference Cost $ 496.59
i
Open discussion:
Victoria Williams advised the board that her term actually expired on October 1,
2007. It was noted that ballots would be distributed immediately to all members for a
vote on the slot Sgt. Williams maintains. She did indicate she would like to stay on the
board.
Victoria Williams made motion to adjourn the meeting. Bill Bartlett seconded
motion. All in favor.
Denny Davis, Chairman
Bettye Taylor, 5ecretary