2014-08-04 General Meeting & General Fund Meeting�
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�=:�4'���. CITY OF OKEECHOB�E/OKEECHOBEE UTILITY �' y's" ��
AUTHOFtITY/POLICEIFIRE PENSION BOARDS
REGULAR IiflEETING 11AINUTES, AUGUST 4, 2014
CITY H�4LL, 55 SE THIRD AVENUE
OI�(EECHOBEE, FL 34974
TRUSTEE ATTENDANCE:
CITY OF OKEECHOBEE/OUA Jamie Mullis, Chairperson
Daryl Roehm
POLICE:
FIRE:
OTHERS PRESENT:
Bettye Taylor, Secretary
Bill Bartiett
Gary Ritter
Adam Crum
Scott Christiansen, Attomey
Jack Evatt, Bogdahn Group
Janet McKinley, OUA Fnancial Liaison
Basil Coule, OUA Financial Liaison
Melisa Jahner, Secretary
Robbert Ellerbee
f2ay Woriey
Michael Skipper
1. CALL TO ORDER REGULAR MEETING: Jamie Mullis called the meeting to order at 5:04 p.m.
2. PUBLIC COMMENT: Jamie asked whether there were any comments from the public. There were none.
3. INVESTMENT REPORTS: The Bogdahn Group
a) Mr. Jack Evatt, of the Bogdahn Group, presented an overview for the quarter ending ,lune 30, 2014 as distributed
City General/OUA - The Total Fund Quarterly to Date: beginning 3/31/14 with $9,791,130.00 and ending 6/30/1�
with $10,163,180,00. The Total Fund Year to Date: beginning 10/1/2013 with $8,970,452.00 and ending 6/30/1�
with $10,163,180.00.
Police - The Total Fund Quarte�ly to Date: beginning 4/1114 with $7,467,385.00 and ending 6/30/2014 witl
$7,683,522.00. The Total Fund Year to Date: beginning 10/1/2013 with $$6,890,491.00 and ending 6/30114 witl
$7,683,522.00.
Fire - The Total Fund Qua�terly to Date: beginning 4/1/14 with $3,134,546.00 and ending 6/3012014 witl
$3,239,700.00. The Total Fund Year to Date: beginning 10/1/2013 with $2,905,928.00 and entling 6/30/14 witl
$3,239,700.00.
Mr. Evatt informed that all three boards have exceeded the benchmark. The DANA Investment Advisors po�foli�
• as of June 30, 2014, was distributed.
He asked the Fire Pension Board of Trustees to consider and approve the trade instNctions as set out in the letter
• dated August 4, 2014, to Ms. Farrow, of Salem Trust. it states the Board has elected to rebalance the po�folio and
instructs to carry out the following actions by DANA Investments:
Firefighter's:
1) Raise $400,000.00 in cash. Once the trades settle, Salem Trust is instructed to transfer $400,Q00.00 from the
DANA account to the R& D account and purchase the following mutual funtls:
a) $300,000.04 of Dodge & Cox Income Fund (DOQI�
b) $100,000.00 of the PIMCO Total Retum Fund (PTTRX)
2) Please notify the Bogdahn Group once all of the above has been completed.
4.a) Florida Dept. of Services, Bure�u of Local Retirement Systems letter regarding Actuarial Valuation. The letter is
tlated July 31, 2014, as a response to the letter sent by Administrator Whitehall, July 14, 2014: the State has
accepted all of the reports and impact statements for the General Employees and the Police Officers through
2012, with regard to the four items listed in the July 2, letter:1) the inflation rate can be lowered without having it
trigger a lowering of the discout rate used for determining the contribu6on amount. The investment consultant for
the Plans should be putting something together for the GASB 67 disclosure about expected returns for the
various major asset classes in which the fund is invested, and the assumed inflation rate should be part of that
process. The State gave no indication it was anticipating a change in the discount rate as a result of this change;
2) we have sharted showing DROP reconciliations in our reports, and in fact the 2013 report for the general
employees has one. There was apparently some confusion about the DROP reconciliation for police officers
because the beginning payment was reduced for contributions due, but the reconcilia6on will be included in the
2014 report; 3) we will include a verbal description of the aggregate funding method. This is a standard method
which is shown in full detail on page 9 of each report. We will add a written description; 4) we do not include the
balance of accumulated employee contributions. It is the firt item on page 5 of each report.
� b) Recommendatin to Gabriel Roeder Smith & company to consider lowering the inflation assumption for future
actuarial valuations as suggested by the Florida Division of Retirement or present rationale for not lowering rate
and impact. This was the response from GRS & Co, letter dated July 21, 2014:1) the inflation assumption used in
the October 1, 2009, Qctober 1, 2010, October 1, 2011, and October 1, 2012, actuarial valuatins was 3.50%. This
is higher than what we expect, given market conditions as of these valuation dates suggest an inflation rate closer
to 2.50% or 2.75%. Therefore, we recommend consideration be given to lowering the inflation assumption for
future actuarial valuations; 2) the October 1, 2012, valuation report does not include a reconcilia6on of DROP
accounts. We recommend that this be included in future valuation reports; 3) the October 1, 2009, October 1,
2010, October 1, 2012 and October 1, 2012, valuation repo�ts do not include a detailed description of the
aggregate actuarial funding method. We recommend that such a description be included in future valuation
reports; 4} the October 1, 2009, October 1, 2010, October 1, 2011 and October 1, 2012 valuatin report do not
include the balance of employee contributions with interest. We recommend that this amount be included in furute
valuation reports.
c) Florida Department of Management Services, Bureau of Local Retirement Systems letter verifying receipt of the
Expected Annual Rate of Retum for the City of Okeechobee General Pension Trust Fund. The letter was dated
May 22, 2014, verifying the receipt of the Expected Annual Rate of Retum for the City of Okeechobee General
Pension T�ust Fund.
d) City of Okeechobee letter to Theora Braccialarghe of Gabriel Roeder Smith & Company regarding Actuarial
Valuation. The letter was dated July 2, 2014, notifying all reports and actuarial impact statements being state
accepted.
5. (TEMS/REPORTS FROM BOARD ATTORNEY CHRISTIANSEN.
✓ GeneraVOUA Board still needs a 5m Member
✓ Final Financial Disclosure Form for Linda Tewksbury
6. UNFINISHED BUSINESS TO DISCUSS IN OPEN SESSION. �eneraUOUA Board still needs a 5� member.
• 7. NEW BUSINESS TO DISCUSS IN OPEN SESSION. None at this time.
8. RECESS FROM OPEN SESSION AND CONVENE IN INDIVIDUAI. SESSIONS AT 5:30 P.M.
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CITY GEfVERALJOUA PE �}-B F TRUSTEE ITEMS
. May 5, 20 G�� ��C Zp �/
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A. Motion to dispense with the reading and approve the minutes for the May 5, 2014, meeting. Darvl moved to approve
the Mav 5, 2014 meetinq minutes as presented; seconded bv Robbie. Motion carried unanimouslv.
B. Motion to approve the financial reports as presented by Basil Coule, Pension Financial Liaison: Robbie moved to
approve the financial reports 1-4 as presented on the aqenda; seconded bv Darvl. Motion carried unanimouslv.
1. Check register from April 2014 through June 2014.
2. Statements from Salem Trust that refleci activity fo� the General Pension Fund for the months April
2014 through June 2014 for the following accounts: Receipt & Disbursement, Dana Investments &
Equity.
3. Apprave the list of inembers terminated and/or contributions refunded or rolled over from 4/1/2014 to
6130/2014: Jeremiah Payne (OUA).
4. New members enrolled from 4/1/2014 to 6/30/2014: Kyle Jenkins, Joshua Mercer, Jeremiah Payne,
David Womble and Sheldon Woodham (OUA).
C. Unfinished Business or New items.lt was discussed that they still were in need of a 5m member.
D. Adjourn meeting. Robbie moved to adioum the meetinq at 5:35; seconded bv Darvl. Motion carried unanimouslv.
Minutes prepared by: Melisa Jahner, Secretary