--------- Hey Dwayne, can you hear me? Hello. I can hear you. Perfect. can see. It's okay. We know we have to look for Good afternoon and welcome. Okay. Good afternoon and welcome to the
city of Palathie Shaw present. Assistant Chief Matt Duke present. Mayor Robbie Carrera present. Thank you. Thank you. Um so as
an opportunity and welcome to the Friday meeting minutes. Um yes ma'am Mayor. I just have a question um concerning the meetings for December 3rd of 2024 for the 11:30 a.m. meeting.
um under public comments. I was stepping from the uh the pension board. So I don't know if you correctly because that's not true. I wasn't here so I don't have it from you.
It came Alex was here. He already manage that. Yes ma'am. doing it. Okay. Motion to approve the minutes. Second. We have a motion to second. All in favor?
I Thank you. Can you hear us, sir? Can you hear us? I can hear you. Okay. Yeah, it's your turn. Thank you. It's your turn. Ready for you to present the information from the December
meeting. Okay. So, it's my turn, Dwayne. That Thank you. Can you uh put up the capital city trust report? Yeah. We do not have a copy of it, sir. Okay. Do you have it in front of Does
the board have it in front of them? No, we do not have a copy of it. Okay. Um I'll just go over it briefly. Um when I look at the asset allocation, all of the uh actual positions were
within range of the policy. So we were in compliance to that extent that we were within the range. At the time uh there was 7% in cash. On March uh
12th I put 250,000 to work. So there's less cash. Um so there's still twothirds of the cash available to invest. Um so having said that um I'll go on and
mention a few return numbers and then we can turn it over to Burgess. So this is the fourth quarter report for 24 the equity portion of the police plan for the calendar year 24 returned an outstanding
16.69%. Of that 16.69 69. The equity portion returned 19 and the high yield bonds returned 6.4 and cash is returning 4.2. So calendar year was a terrific year for 24. The last quarter things slowed down
a bit in equities because December things pulled back. So the last quarter, the latest quarter of 24, the fourth quarter was 089 and equities return one and bonds were down a little bit. So the fourth quarter not great but the
calendar calendar year was outstanding and the last five years uh the equity portion earned 10% per year which is also terrific. Um, I'll just say that I have some numbers at the end of
January where January was a a good month and so year to date in January the equity portion was up 2.7%. Um, so off to a good start in January and then of course on February
19th things starting started to falter a little bit. on into March, the market went down and of course as you know with tariffs uh the market fell more in April. Um fiscal year to date by the way
from November 30th through March 31st the equity portion is down 1.88. Not too bad. Uh that's something we can come back from. Um
so basically my comments from the equity side are that the economy is slowing down. Inflation is forecasted by several economists to to moderate into the low twos in the next 12 months. If you look
at the futures market and how traders are acting, they're forecasting about two interest rate cuts this year by the Federal Reserve. that should help stocks along with potentially a corporate tax cut. So even though things seem sort of
gloomy right now with the tariff issue on the table, there is a silver lining that uh eventually this will get resolved and maybe there'll be a tax cut which will help stocks. Um other than that, um I'll I won't steal Burgess's
thunder. Um, like I said, I'm looking forward to putting more cash to work in the coming weeks and months because stocks are cheaper than they were. Um, so that concludes my comments. Does anybody have questions, Mr.
Without a Motion to accept the report as presented? I make a motion to accept the report as presented. Second. The motion is second. All in favor? I want to support. Thank you, Mr. Thank you all with us. I'm sorry.
[Music] Yeah. Very nice. where he is placid page. So the start of this year we've been hearing a lot about the mag
stocks stocks driving the performance performance meta these companies and you can see on the chart here in It's horrendous
about these things. really importantly did not include the handbook. in place in this back in 2018 2020. all
these put in record amounts fuel to keep the furnace going. They got the furnace and you have inflation. You can see where the the represents
energy which was a component of the further of 22 or the middle of 22 actually January 22 is enough. So they began raising rates. this for everybody her real estate real estate
this stock market and bond market you can see how that that's really worked you can see the the inflation how rapidly uh that
year that's also kind of interesting to dichotomy in our country. people are Democrats, people Republicans agree on certain things like
schools are very important and education's importance but they disagree on a lot of things and you can see that during the Biden administration which is most of this start um it's had a greater propensity to
let's say believe that inflation was was going to go up much more than Democrats. Uh and once the Fed got involved in 22, which began in January 22, we saw interest rates go up very quickly. Everybody became very concerned
about the impact of higher borrowing rates and so forth. You see absolutely the euphoria of this Republicans had dropped off. Um then interesting enough is towards the
end uh of 24 the blue line goes up and the red line goes down. Now why do you think that is? because Trump was elected in November of 24. And actually the same thing happened
eight years ago when this first collected the quarter of that year just like the fourth just um the huge dichotomy in
expectations. Uh you hear about what the Fed does. F they set the shortterm or policy rates called the federal funds rate sort of predictions on where they thought the best funds were and right now they're between four and a quart and
four and a half% you still get a pretty good return on money market but last year at this time the ation was that the pen was going to continue to cut rates we'd be down in 3% area by now.
Well, that hasn't happened. Uh chief has indicated uh that he has no intention of cutting rates at this time because of the the flux of regarding
wrapping up on page nine. Uh one of the biggest challenges we had uh in 2020 was the that going on the US office market
meaning different places of the office space the United States that's downtown Miami or downtown Bford or downtown Coral Gables, but there's softness in Orlando.
There's softness in Austin, Texas. There's softness in Atlanta. There's softness in lots of markets. But of course, West Coast has a severe problem. But but the last three quarters
based on the information we have, it appears that the uh repricing that downwards of the overall real estate market pretty much ends about that. Does anybody have any questions? Thank
you. How much time do I have, Madam Chair? That was a really time. I I think you've got plenty of time. We do want to get out of here at some point, but I think I appreciate that. Dwayne Dwayne,
do you have anything to say? I beg your pardon. Have anything you want to add at this point? Um, no. You did a good job. Okay, page one.
Us in my office here in take turns in writing these different pieces. This little piece I I was at this everybody was talking about, you know, four months ago was this was this AI
uh grow the demand that AI is going to place on our electric electric grid. Our electric grid has not had any measurable growth in electric demand for 10 years. A lot of that has to do with now in the third paragraph here it
indicates that the expecting 16% rise in electric road demand um in but then I got an update on that from
the American Clean Power Association to expect a 35 to 50% decrease in electric years. And that's that's incredible. We don't have we don't have the infrastructure. We don't have the
grid. We don't have we can't do that unless we have massive investments in electrication. Um I don't follow this but but the major wind projects urban projects in the
northeast have been cancelled just like that coming that this administration is pulling uh pulling the uh credits uh but the manufacturers uh in Europe
uh that make stuff are losing so much money because the the technology isn't lasting as long as it's supposed to, especially around seawater. And it's not the Germans are having the same problem with all their wind turbines. They put it up in the
North Sea. So, what the take away from this is that when you find a stable, reliable source, and it looks like it's natural gas, at least for the time being, the third paragraph, it mentions the that US is the largest exporter of
liqufied natural gas. got an update on that. Last year we exported 81 million tons of natural gas and kind weight, right? But if you compress it, fill it, it becomes a
liquid. That's that's how they're coming up with these weights. Uh but a lot of this but to Europe needing to replace the Russian gas, the United States needs a lot of natural gas. You're going to be hearing more and more
about this and pipelines coming probably through this area and so forth and so on this enormous but ultimately it looks like nuclear is coming back and and be coming back to stay in a
big way and there are several companies Rolls-Royce being one of them that builds these modular uh nuclear power gener generation system from bander that you see on an 18 wheeler and they're in fairly
inexpensive to build and they'll put them in you know fields they'll put them in let's say 100 acre pass and fence it and it's all done remotely there's nobody you'll be hearing more about this
stuff I'm sure in the future once we get to the remark happening in the corner deep,000 calls. rank in the top 18% of your peers and his other governmental pension systems around the
country didn't do as well as you did before one year period and plan earned 1.6 6 million or about 12.7 behind the the model and uh we still ran in the top. We did we did have a slight
overweight to domestic equities and that had some impact but really as a nominal return but 12.7 last year is really very the 500 index this these are mega
capab stocks led the pack 25% % followed by mid mid and small business and years five years the plan earned 4.2 2 million or 7% per year or 8
net pretty close to the behind and it's very close to the model retirement system uses a 6.7% that's interesting enough the 10-year period where you earn 7.7
million you averaged exactly what FRS uses for expected return. I don't know that the under the manager reviews third bullet specific
but results are slightly had but but you'll see in the next report they were down to this port we they were down uh they're up 2.7% but their bench is up 7%. So Europe Pacific
is struggling with respect to uh questions about the report. Officer I Everyone says it's all page seven's interesting because 10 years ago about 2.4
million and you earned about 7.7 million. You had net flows out of the plant over that 10ear period of 1.4 million. that that is derived
from the city contribution that's positive. the payroll deductions, that's a positive. The cap 185 insurance premium money that goes into the program, that's positive. And then the the negative
outflow on the primarily you have some operating expenses but is going up retirement based earn twice as much as you spent. I could say spend that
spending 4.3 4.4 You've heard it almost twice. Wrap it up here for you on page eight on the allocations. That's the actual and we watch this very carefully and make
adjustments. Sorry, Dwight behind the scenes. page you can see the products that are new. Many of these are index products on page 11. You can see the the products depicted by by name within the domestic
equity category have large unit and small uh index cost effective very cost efficient. The infrastructure piece with coarser is
actually advantage but having a good quarter first quarter this year was very good tonight that's an index and you can see international
uh we have a split here between Europe Pacific and the Vanguard uh develop market index. page wrap it up. Drags here last beginning of 2022 has been private real
estate a They had, you know, two years in a row of negative returns, negative fees, negative quarters in a row. And this is a result of high interest rates driving occupancy levels
down and drives the appraisal down and the last three quarters they have reported positive. So it looks like within the bottom has 10 actually the last two next
report you're going to see will be the third where they had a questions. Thank you. Motion to accept the report as presented. Motion to accept. Second motion. All in favor? I position. Thank
you. On to Foster and Foster. Mr. Don here. All right. Can you guys see me and hear me? Okay. Yes. Yes. Um, do you guys happen to have the valuation report in front of you or No.
No. Well, can I share my screen? Virginia, we can share it here so we can display it on the screen for you, Patrick. Okay, perfect. Let me know when it's up there.
It's up here now. It's here. Okay. Can you go to page six? So every year as of October 1st, we look at the assets in the pension plan and then we project out all the future retirement benefits and we determine an
appropriate funding requirement for the city for the next year. And we always do it one year ahead so that the city can budget. So the right hand column on that page is the 1012023 valuation. We looked at
everything snapshot 101 2022 and that determined the requirements for the year that we're in right now. And then the left hand column is our snapshot as of October 1, 2024 and that determines the requirements for next fiscal year
starting 1012025. And you can see the costs went up a little bit. Um the city and the total required went from 30.9% of payroll to 32.7% of payroll. The members contribute
six. So the bottom line city and state goes from 24.9 to 26.7. And we're going to talk in a in a little bit about um the multiplier for the police officers. Um, but you know,
every year we also look at the state monies and the earnings that we've had on state monies and we determine how much of a multiplier that can buy. And so the multiplier because we had a good
year, a one-year period, um, the multiplier got to go up. And so if you increase the multiplier for all the current activives and retireds, that increases the funding requirement. So that's really the main reason why the
cost went up there. It really was a a pretty decent year overall. Um, can you scroll all the way back to page 32? So for the one-year period, like I said,
the investment return was very strong. It was 22.65% for 930 2024. So if you look towards the top of that page, it says development of investment gain or loss and it says market value of
assets 930 2023 was 11,599. So we had basically 11.6 million at the beginning of the year and we're expecting 7.5%. So we expected to earn
$857,000 on our money in fiscal 2024. and we actually earned 2,572. So we had a gain there above what we expected of 1,714,000. So again it was a great year
but um you guys have been on the board remember that we use a smoothing technique. So in the upper left hand corner it shows you the gains or losses we had each of the last four years. So we had a gain in 2021 of 1.39 million
but 2022 we had a loss of 3.2 million relative to our assumption. You know that year most of my plans lost you know 18% or something and they have the 7 and a half% assumption. So we
really missed the mark by about 25%. And so that loss we're going to spread out over a five-year period, but we're also going to spread out our gain from 2024 over a five-year period. So I heard
Burgess earlier mention, but you know, if we average those four years there, it basically is a 6.67% return. um you know he mentioned earlier F FRS
has a 6.7% assumption but we have a 7.5% assumption so you know we missed the mark by8% and so at the bottom of the page using that smoothing we had an actuarial loss of
106,000 but the good news is that 1.7 million gain this year that's going to help us each of the next four years. And then in if you guys can wait um two more years, then we'll be done
with that 2022 loss and we'll have a better smoothing of the assets. Does anybody have any questions about that page? Questions? Go ahead. Okay. Then if you go to page
39, so that's the turnover. And you know, if everybody left before they vested, we wouldn't have to put in any contributions to the plan. Um, so if there's more turnover or less turnover, that helps the funding requirements. And
this year you had slight overall actuarial losses on this page. Um you had 26 non-draft police officers at the beginning of the year. You had four of them terminate and take refunds. We expected about
4.27. But they also were all very young. They only had an average of one year of service. So when somebody, you know, the game comes when somebody terminates after, you know, six years of service. So that didn't really help the plan this
year. You had one member enter the drop and at the bottom of the page, you know, again, what's good for everybody else is bad for the plant. So you had no mortality, which is obviously a good thing, but it causes a little bit of an
actuarial loss in the pension plan. Does anybody have any questions about that page? No. Yeah, the these numbers are representing Does does that say that these numbers represent 2023 at the top? No. The top line there
is the activives you had as of October 1, 2023. And then it shows what happened during fiscal 2024. So during that year starting 1012023 you had four people terminate
and one person enter the drop. So the ending end of the end of that the letter I that's for 101 2024 you had 30 non-drop police officers.
Does that make sense? Yes, sir. Thank you. Any other questions? No. Thank you. So then if we go to page 18, but I haven't mentioned it, but the
individual salary increases were a little bit above the assumption when you compare fiscal 23 to fiscal 24. And so this page shows you your unfunded actuarial acred liability. Last year it
was 2.19 million at the top of the page, but we're making a payment each year to pay that down. So we expected it to go to 2,ion23,000 and in the end it was 2,676. And so you can see where the
gains and losses came from. So the investment return was a loss, salary increases was a loss, turnover, mortality, nothing really helped you on that page. And so um so the state monies, we don't use
smoothing with the state monies. So if if we have a great return then we say okay now we can increase the benefits. If we have a terrible return we have to reduce the benefits. So we calculated that we can
increase the multiplier from 0.55% that extra multiplier over and above the 2.75 that the that the general employees get. We can raise that from 0.55 to
0.63%. So now everybody's benefits starting 1012025 are going to be higher than they were 1012024. And so that increased the liabilities by
407,000. The last page I'll show you is probably page 13. So this is where we get our funding requirements. The top line is the normal cost and that's just everybody acrewing benefits each year and that stays pretty
stable. 12.7 last year and 13.6 now. And then administrative expenses. um your payroll went up some because you hired new employees. So that actually went down slightly as a percentage of
payroll 2.5% to 2.4%. And then the third line is that payment required to amvertise the unfunded actuarial acred liability. So that's you know directly related to that unfunded actuarial acred liability. So
that went from 15.7% uh to 16.7% of payroll. Spundit ratio is on page 11. So that went from 85.4% last year to 83.4% this year. The plan is still
healthy. plans try to be in the 80 to 100% range, then you're still in that in that range as of October 1, 2024. So, those were really the highlights of the report, but I'd be
happy to answer any questions. I got a question. Is it possible we can get a copy of that report? Um, physical or electronic? Either one is fine. Electronic is fine, too. Electronic would be fine. No problem. I can send that out, Patrick.
Sure. Thank you. Thank you. I don't think there are any additional questions. Thank you, Mr. So, the board actually has to approve this report by motion and that'll make it official. Thank you. Do I have a motion to approve? I'll make a motion that we
approve the report. Second. Motion second. Any opposition? I wanted to bring up another issue if you don't mind under my section. So, you know, we've talked in this
report about the multiplier and we've talked in the past about, you know, it affects not only the current active employees but also the current retirees. And so, as of
1012022, the multiplier was 65% extra. So um find it real quick. But so then when we did the 2020 two valuation, we said, "Oh, the
benefits should be reduced October 1, 2023 and we sent a letter to Jill with the new amounts and the old amounts for each retired police officer. But for some reason, um, the bank didn't
make those changes effective October 1, 2023. Um, I don't know if Jill didn't send it or the or the bank didn't get it or what happened, but the members have been getting the same benefit for the
last two years, and it should have been reduced October 1, 2023. And I talked to Anna this morning and she said, you know, if the board desires, they have the authority
to say, we won't worry about the last, you know, 15 months, we'll just make the adjustment starting with the June 1, 2025 payment. So their benefits would all go down some with the 2025 payment,
but then they're going to go up some starting 1012025 because of this report. So it won't be a huge impact on the retirees, but it's something that actually should have been done, you know, a little over
a year ago. especially discussion now. So, so Patrick, you're just a just to recap. You're saying that the current retirees should have had a reduction 15 months ago, but it it
did not occur. Correct. I believe you're correct. I couldn't hear all of it, but yeah, it was supposed to be done 15 months ago, but it was not. Can you hear me now? Yes. Okay. And so now if
we we have the ability to say we're not worried about that 15 months, but to go forward I guess from would it be the next pay cycle? 61 2025 you said? So 61 and 25 to up until 91 and
25 increase back to the 10th one. Exactly. Yep. It would go lower for nine or June 1, July 1, August 1, and September 1 and then October one, it would come back up almost to the same thing as it was before because the old
one was 65 extra multiplier and the new one will be 63% extra multiplier. So, it'll be very similar to the payment they're receiving right now. Pat, could you tell us what the um
impact would be to the fund if we um if we don't make those either pay that or reduce it? Well, when we did the October 1, 2024 valuation, the one that you're looking
at right now, and and just approved, uh we knew that those payments hadn't been made, and we did not um hold anything payable. So, the valuation you're looking at already really
reflects the impact on the plan. What was the problem with the overpayments? Patrick hopefully knows the answer to that. What's the dollar amount, Patrick, to the overpayment? Do you know?
[Music] Um, well, the for all of the retirees put together, it's $2,240 a month. No, collectively. Collectively per month. Is that collectively per month?
Per month. It's it's Correct. Yeah. You have about, you know, you have like 30 retirees or something. So when you, you know, the impact on, you know, the first member I'm looking at is $40 a month for
that particular retiree. But when you add all of them together, the total is $2,240 per month. So, you know, about if you multiply that by 12,
that's uh, you know, $30,000 for the year. Okay. It my opinion is the minimum amount of money to worry about. That was my thought. Rather than penalize them, they would just stop now and just go forward.
You could you could consider it a 13 jet. It just got a little kick a little kicker for that year. So with that said, do we have a motion to move forward and have this take effect first? Yes.
So So let's And so I make a motion that we start the reduction. Thank you. On what is that? June 1st. June 1st. And then we just waved the the last 15 months.
Do we have a second? Do you have it? I second. Question. Go ahead. So what what rate would that be over from June to
September for the for the uh retirees at what rate? Did you say what would the impact be to the retirees? Yes. From from June to September? Yeah. Well, like I said, it's a um it's different for each retiree.
Is there a percentage? What? 60. You think? Yeah. A change in the amount. Yes. Because it it fl he said it fluctuates as it goes on. Correct. It's a scale sliding scale from from June to
September. It would decrease. Well, no. from, you know, they're benefit like my first example, you know, they're currently receiving 1,274.54, but with the with the change in the multiplier, they should be receiving
1,234.08. So, they would get that same 1,234.08 08 each month starting June 1st and then it'll go up uh starting October 1st back to about
$1,270 a month. Does that make sense? Yeah, that makes sense. That answer my question and agree I second. We have any opposition? Thank you.
I wanted to bring if I can for one moment. This is why we're trying to get rid of the fluctuating multiplier and have a fixed multiplier for everyone's pension plan. We don't want this up and down up and down that a retiree doesn't
know what they're going to get each month based on the valuation. So if there are questions about it with the ranking file, this is why we're trying to get the member structure so the board can vote on having a fixed multiplier.
Then when are we going to take action? When would we take action to vote on that? Well, it's not really a board decision. You know, it's the city council that or commission that has to approve it. They have to change the
ordinance, but the board the board is working with the retirees and the active employees and trying to facilitate anything they can, but ultimately it's up to the city. Okay. So, the ordinance needs to be revised. Correct. But the
board needs to approve the correction to the ordinance to put through to propose it to the city to make the recommendation to the city. Thank you. Thank you for the clarification, Patrick. And when do we want to do that? Because I think that things move sometimes in slow and mysterious ways in
the city and I we want to accomplish those as we can. Fire services is looking at doing the same thing based on our workshop that we had with the fire service retirey board and as well as our board sitting up here. Correct. uh what three months ago or actually probably
longer longer than wasted. Well, and and I believe that the firefighters are in negotiations right now because they just asked for some documents from the board. When we mentioned fixed rate, what what
does the fixed rate actually look like? Well, if we fix it at um you know the the new rate for the for the plan is in this
report it came to 3.13% you know for the multiplier. So if if we said okay let's fix it at what it is 1012025 then that would be the amount
it would be say that say that again Patrick did you say 3.13 yes correct okay you know it was down to 3.05 5. But then in this report, we had the good year. So
now it's going to be effective October 1, 2025. It's going to be 3.13% multiplier. And so we could fix it right now and say, let's keep it at that multiplier and it won't fluctuate
anymore. And then, you know, the city's costs right now would be about 21.3% of payroll, you know, going forward. But what the city commission would have to understand is that if the
mark if we have a terrible year in the market, well, then the city's costs go up, right? It it doesn't affect the retirees benefits at all. And that's the way all of my other plans work. Um, but
you know, the city would have to agree to that because right now in the ordinance, if the market goes down, then the city shares that loss with the membership and the multiplier then goes down, you know, and same with good news.
It gets shared between the members and the city. So, so with that being the case, if we were being approached for a fixed rate, then we would also have to go through the police union as well. Yes. Because I mean it's a benefit change. So if if you're I think benefit
changes are bargainable unless both sides agree to wave their bargaining available for the police and the commission now we are Chief Shaw correct me if I'm wrong but we are um
communicating with the union right now um and there's there's a possibility of it coming forward in the next commission meeting as to what their request is to to show the different levels of negotiation. So, this could be something
that we take to the union, you know, over the next whenever Chief Shaw is able to do so. Well, we have to communicate uh some correspondence anyway that we got from the meeting today. Um I'll go ahead and provide the same correspondence uh attitude to the
email when I return so that they can then also take this under consideration as well and hopefully we'll have a response back from them at least uh what direction they're going relatively so
and pallet track this this will affect the current retirees as well correct because from time to time I get phone calls from them and ways to do this fixed rate. It will fix it for the current retirees as well.
So their rate would go from the 3.5 to the 3.13 as well. Yeah. So that example I gave where the new multiplier with the well actually I don't have the 3.13 on here
but whatever that is starting 1012025 then that would be fixed forever you know if if that's what ends up getting adopted by the city. Thank you. Thank you. So at this point
hopefully we'll know more for the main meeting to make a recommendation from this board to move forward. Thank Miss Paris. Hi everyone. Um I just have a quick item to bring up.
[Music] Um when we did not meet at the last um meeting, we did have the meeting for GE and they requested um an ordinance change that would allow for a partial um
lump sum option. So before I dropped the ordinance um get with Patrick get a um statement showing that it's not going to cost anything for the plan um or what it would cost for the plan. I just wanted to know if that's something that you all would be interested in as well. So it
would be 5% 10% 15% 20%. So you'd be able to take that um assuming you you don't enter the drop, you'd be able to take that percentage 5 10 15 20 as a lump sum and then the rest would go in your benefit um to be paid out. So, if
that's something that you all wanted to discuss or maybe it's not something you're interested in, I just it makes sense to do it for all the boards at the same time. Uh, for those who are interested, is the percentage the same for fire services and for general or are
they different for each board? So, GE did request the 5, 10, 15, 20 options. I suppose the options could be whatever you would like them to be. That's just what they requested. I would say that's typical um for the choices. Patrick may
have some other insight on that as well, but from what I see on my end, it's typically those four options. And and this is a benefit to the individual employee if they elect to take a percentage and then just collect the rest throughout their Exactly. If for
whatever reason they want the option to have, you know, a percent in a lump sum payment, then this would allow them to do that. So, the plan doesn't currently allow for it. Um, I don't foresee it being an issue, but ultimately, just like anything else, to change the plan, it would have to go before city council.
Um, but in order for us to do that, I'll do what I need to do on my end. Um, and drop the ordinance, get that approved by you all, and then it would move forward. So, if it's something that you're interested in, I can certainly do that. I don't think there's a downside to it, you know.
I don't know. I didn't see the numbers. Is Patrick on the line? Yeah. Yeah. Yeah. So, I mean, I will issue a letter, you know, once Anna drafts the ordinance. I would issue a letter that it has no anticipated
negative impact to the city funding requirements because right now when someone retires, we calculate optional forms that all have the same actuarial value based on our assumptions for
mortality and interest rate. And so this would just be another option for them that would have the same actuarial value. So, so it would be no actuarial impact.
And you know the the downside Anna said is there any downside and the reason that we do 5 10 15 and 20 is because you know the purpose of the pension plan is to provide a lifetime retirement benefit as
opposed to a 401k that provides you a lump sum. So that's why we limit it to 20%. That way, you know, they're still getting a lifetime retirement benefit that they can live on, but they are getting a little bit of their benefit in
a lump sum. Okay, this question I think when you take the last couple from the draft is if that's the case and that still has to be approved you make the recommendation that still has to be approved by the city
commission itself. Correct. Correct. Again, it it's not going to cost um the city anything. So theoretically there shouldn't be um you know anything against it but obviously you never know
that motion that we have you adjust the uh ordinance then great to reflect the changes. That's it. Thank you. Thank you, Miss Kil. First, I wanted to remind the board that
the uh form ones are due by July 1st. You'll hear me say this again in May, but um they have to be done electronically this year. If you have any need some assistance um I can get
those some phone number that will walk through but it all has to be done through the department electronically. hard pay for cards. Um, we only have to do that once for we don't have to do it for each. Yeah, I'm saying we don't have to do it
for each entity. For instance, as department heads, we or I have to already do one. I don't have to do an additional one because I'm now part of the member on the board. Anna, do you know the answer to that? You know what? I'm actually not sure. Um I I've only
done you don't I would say just once but I will certainly double check on that. Okay. Thank you. Yeah. And I have to do the form six. Oh yeah. You have to do a form six also. Yes. Thank you. Um in your pocket there's a copy of our sock
one type two audit. This is something my company spend a lot of time. proud of that. also resource center that there's people that are available in
the district next If there's Some people are not comfortable signing up. So thank you. Any
questions? Thank you. Anything else? That's it. Thank you. Thank you. Um I am going to open the floor up to public comment for public comment. Seeing none of public comment. Do we have a motion to have
two? Sorry. I have two quick items. There's a benefit approval in your packet for two uh members. If I can get a motion to approve both benefit approvals. Okay. Do you have
and Anthony? Do we have a motion to approve? I'll make a motion to approve. Second and then the ratification of the war um for December meeting that were paid.
I need a motion and a second for that. Oh, do I have a motion? I'll make a motion to accept the uh report as as revenue. Thank you. And also the one the award for the 25th.
Is that in the same packet? In the same packet. Yes. should be 25th and one for the third. Yes. I make a motion to accept. Thank you. Motion second on the table. Any
question? Any further? That's it. Thank you. Okay. Do a motion for Thank you all. Thank you. Thanks. Thank you. I will let you know about the form one. I will send Kyle.
Thank you. Thank you. Appreciate it. Bye. Thank you. May 27 was injured really bad, but as of this morning, he was in stable condition. I won't be here. I'll be on vacation very soon. Part: 2
We will call this meeting to order with choice. Yes, ma'am. And determination has been called to order, please. Yeah. Avery Hunter. Yeah. Yeah.
[Music] Chairman I have a motion to approve the I'll make motion to approve the minutes as written. All in favor I with unanimously approved to
In this case, we don't have DC. I'm happy to report to you that my strong colleague Mitchell Brennan will be attending the next meeting. I believe that's been set up. Yes. You're welcome.
It's not unusual for me uh cover for me and then when I show up to the next meeting they the client wonders why am I back but Mitch was going to present to you
and uh I'm going to uh do they have They do not. [Music] Um, I tell you what I'll do. There's no reason to hand. I I can just pass it around, but I'll just give you the high
points of it. You ready? Yes, sir. No. Like this. these toss these things in the trash. Where's the trash can? Good. And very resourceful. Well, we can
share them. Um, so the the other board members left a few of these behind, right? Fantastic. So u paint I know you heard about the magnificent seven stocks and the slide
illustrates the hyper performance that the MAG stocks have had since 21 uh versus the S&P 500 which is in brown and then the S&P 500 excluding the bank stock. So if you look at the say 24 on
the absolute difference in in kilo returns between the blue and the green it's it's dramatic and that all I'm going to just let you know that all ended in January of this year but anyway up through December this hyper hyper outperformance
was very evident thing I want to show you take you over to page five the inflationary uh peak uh in June of 2022. You remember everything on the left here is sort of
quiet 2018 2019. What happened at the end of 2019? CO co and then by by by the first and second quarters of 20 in the first quarter of 20 the stock market rolled over and then it came back
because of this massive intervention by the Federal Reserve and and Congress to liquefy the economy. I mean it was all hands on deck. Well, they overdid it a little bit because you can see the inflation that ensued.
uh this rally began during the the uh Trump's first term. That's when this uh tremendous amount of stimulation that was the first big phase of it and see that the energy for example was a big component of
it. The cost of going out dining and so forth. Have you noticed that the quality in restaurants is going down? that prices are up, the service is lousy, and the food is I won't even I don't even go out anymore. I'm cooking
more. I'm more I mean, no one can make a steak better than me. Don't you agree? Even they can't do they can't get anything right in a restaurant. Not even salad for crying out loud. You
agree? Yeah. But then see what happened in January of 2022. The chair of the uh Federal Open Market Committee FOMC under Chairman
Pal's leaders just like the parties over they started raising rates. Now it's important to say this because it worked. They they bombed the economy. They dropped bombs on the stock market and
the bond market. Everything came apart in 22 and so did inflation. That went from 9.9 all back at the end of 2024. It was down to 2.9%. And no known Fed chair has ever
been able to move the the inflation down that much to 1970s. She was alive in the 1970s. I was but I was going to college then. You weren't you weren't you weren't here
yet. But inflation was so out of control. They had three different Fed chairs in there trying to figure this thing out. They all got they got fired. But I think Pal did a good job inflation. We had stagflation and that they're worried about that right now.
But we'll we can talk about that if you want. But that let's go to the next page. Page six. This is interesting. Depends on your political persuasion. And the left side of this
graph, which really it's it's sort of the end of the of the um first term. Um the expectation, well it was really right. Yeah. The expectation was that we were going to have
uh inflation Republicans and Democrats weren't weren't that uh concerned about it. But once the once the Fed started to cut, you can see how fast the inflationary
expectations among Republicans. You just see the the slope the red line there where Democrats were more sanguin about about about inflation expectations. But look at the very right hand side. It's during November of last year.
So as soon as uh Trump won the election, the 10th percent of inflation went up and the Republicans went down. Ain't that isn't that amazing? I mean this is from JP Morgan. So I think this data is
correct. The next page on page seven. Is this interesting? Yeah. This is more interesting than my report is going to be. I'm just warning you. Um but these this graph shows the Fed's intervention historically going back to
93 in setting shortterm interest rates. Very interesting. Look at 2007. rates are about over 5%. 2007 mean anything to anybody? You know, right at the end of the fourth quarter of
2007, the stock market was starting to wobble a little bit. Didn't really come up really came apart in 08. The Fed quickly dove into action and brought interest rates down to zero and there for quite a
while. They started then they started taking it up and down. You just see this the the way that the they set course and move the the policy rates around this bit aged. But right now the
Fed funds rate is between 4 and a/4 and 4 and a.5%. And these the prediction the predictions that were being made last year from lots of procrastinators is that by this time the
price be down in the threes and so that why? because tariffs the tariff phenomenon uh is u it'sing the Fed that it's time to just
wait and see what happens and see if how much inflation may caused by but I'm happy to report that the last time that these tariffs were uh used to influence China's behavior I'm not sure they
worked but what China, this is back during Trump's first term. Um, China just devalued their currency. They said, "You want to play this game? Watch out." And so they took the lawn down. So their products are
cheaper, so cheap, whatever, whatever, clothes, toys. Just go to Walmart if you want to see what I'm talking about. U so the prices are in global because the value their their currency
They're the same thing again. They're devaluing their currency on page nine. The takeaway here is uh about the office market. We've talked about real estate and your private real estate product uh has experienced the end of
the year by two consecutive quarters of positive returns. This was followed two years of negative markdowns. This all began in 22. remember that dropped these bombs on the economy and quarter we just finished
which you'll see in the next report uh it's the third consecutive quarter where private state prices have started to tick up right that up as much of the act time as I can this is an interesting piece
And I've got some updates to it, but four months ago wasn't tariffs. It and what and what stems from that is this huge amount of electric demand that's going to happen here. Now we've
got a 10 year. You're in the power business with a city, right? I'm in the gas business there. Yep. A lack of gas. Yeah. Yeah. It's mid. A lot of natural gas used to make electricity though. You can make electricity. Yes, you can.
The 10ear stretch for electric demand in the US been fairly constant because installation like that paragraph shows that the DOE, Department of Energy
uh predicted with this dated now that we would see about a 16% rise in electric demand in the five years. That's following a 10 year period where we had we saw no demand. Now here the
update is 15 years it's going to go up between 35 and 50%. Now we don't have the infrastructure right? We don't have the grid. We don't have the wire. We don't have the pipe.
that if you like the turbine uh powered uh wind wind farms, the subsidies are being pulled. They're not going to build a bunch this big wind farm up in New England is not going to be built now. They pulled the
subsidies. The company in Europe that builds builds the systems will probably end up going out of business. They can't the cost of out of control. The reliability is unbelievably poor. Mhm. And
so the return on investment now so low, it's too risky. So they're pulling out of it. What's going to happen is solar can do just so much. I mean, you got a lot of land here, but you don't have enough land. I mean, solar, we're talking
milliamps per, you know, per square foot. We're not talking a lot of energy. So natural gas is clearly uh here to provide this reliable steady energy but problem is we don't have enough pipeline
tax. Does Europe have as much natural gas as the US? They probably do in the North Sea but they but they stop drilling for it. Okay. So they were big drillers back in the 70s and 80s and Netherlands,
Norththeast sector, UK, Norway, you know, you know what our, you know, Norway does not have a their federal debt is zero. Our federal debt is like what 37 trillion. Why is
Norway? Because all the gas they sold. Sure. And they put all that those royalties into a sovereign fund and paid all their the country operated and built itself on oil revenue and
there's no federal debt. Good place to fire. Yeah. That's cool. So anyway, this is interesting because natural gas is going to become the big supplier to stop measures and it's pretty easy to build
turbines. They're fast, easy to permit. And you're going to see you're going to be hearing more and more about this probably around here. pipelines coming through Alaska and they're gonna, you know, you're gonna want to hit those pipelines with as much money as you can to those ement
rights. They'll be here as far as a big consumer of gas. Mhm. And and the biggest exporter now of liquefied natural gas LNG. Yep. But last year 2024, the LG exports essentially
doubled and they're going to continue to probably double as fast as they can get these facilities built in Louisiana. Things impact the world we live in and how we look
strategically because this cut companies that have reliance on expensive energy like natural gas in Europe natur it's about $3. So that there's a
more than 10fold difference in Europe here than they said in Europe and this much for this country because it means that these European companies are going to be moving their operations and they already
have they started some years ago. Okay, let's go to the summary on page four. a very good quarter, but you lost $49,000. Um but what happened in the quarter was follow election in
November happened eight years before people thought that the new administration was going to bring in a lot of money and a lot of tax breaks and a lot of corporate stimulation that
would drive the economy faster. So the bond market had tanked in the fourth quarter and did but in spite of this you still ranked in the top 18 percentile which say you outperformed
92% of your peer other pension plans. We really had a pretty decent relative performance grow we talked about the mag seven at the very beginning. This is sort of the last inning uh for mag for
the mag seven stocks because they've all come apart this this year but growth is of 8% we have we have the bullion product and then the index to complement it at 7% and those are the top three
performers then for the year I wish we could have these kind of yearly returns every It was happen only 12 months programmer 2.6% net was primarily due
to uh tax cap value and small cap. So that's kind of where that underperformance came from. But look at the oneear return for boy large capital 356. You saw it on the
graph. So the 500 index. So we have the three top performers for growth growth and large cap. two three are index months. Pretty impressive about the three-year return because it caps
2022 everybody because number was 6 million 6% net assumption. So not too far. So some fun money was raised in November
cash needs to get back or some comments about the managers and products. What's notable here is that value out previously here's um doesn't always uh
win the quarter, but longer term the the 500 numbers are are longs have been a real winner view. They were brought in here originally to replace or to supplement or complement the corp strategy.
And so the last five years that actually paid out paid out well you aver mentioned here briefly been somewhat chopped here ever since longterm numbers are fine but in
the meat Ukraine by by this has not been as strong as it used to be. A the you have the index as well in here to complement it. The
index American core u I don't think there's anything wrong with this product that they're just working a way out of a downturn, excuse me, in the commercial sector with a
downturn valuations about two years. I mention here at the end that the inpolio think about this bond has two important is a income
generator the market value. So if if the average coupon of a bump is portfolio is 5%. rates go down by 6 year duration translates to 6%
returns based off duration here. Nothing changes this year. We haven't had this kind of both about less than go to page 10 years
ago. It was almost 10 years ago. Seven years ago was on sabatical. I'm sorry. When last on this board, how long have you been on the board? North Carolina. Nice, right? Mhm.
The county is at 22 and a half million 11.1 million and that whole 10year period the plan had a net outflow of 6.8 million and that number
is period this way. The city contributes money on on behalf of the employees to payroll. Correct? Yes. Then the city contributes money based on what tells you to do. There's no state money that comes into
this like the police and fire. There's obviously purpose of the plan is to pay benefits. So not quite two times. It's interesting the police and fire ratio but nearly twice what was the
outflow was replaced by what you earned. Okay. Mhm. On page 12, you can see the allocations. We track carefully. Uh we have a model here designed to what's
even okay these these allocations fall back into a historical model simulations that were done. will revisit this with a
analysis system essentially designed to achieve somewhere between a seven and and 7 and a half% return on page 13 really more specifically on page 14 the domestic equity ones that do three, four, five, six or
six pieces to it. The next piece at the top is 500 index. Now, we did that because almost impossible to beat it with an active manager and and this way reduce has been here a long
time. Uh their rankings, their results have actually improved recently kind of kind of a flat period while so we introduced the capital index which is to uh
complement what they're doing. So um that's what would happen as soon as we introduce the index to do better. So but that's good. Um the index is very difficult to beat and more recently they've been able to beat it. That was another
certain the X group which based in Orlando 10ear number it's pretty much benchmark couple years have faded a little bit reasons they they've avoided some
areas in the value space like energy stocks they're not particularly fond of energy so they miss missed that Um you can see here that there is an index Russ 1000 value index which
they're being measured against and they've been training that recently you could har because in these difficult times right now challenging times with all the when you want an active manager
uh or you could split some of it and and go into the index. We cut cost and get results maybe more in line with the index for now. Just leave it as is the Fidelity Midcap. Uh that's
another index product which is actually produced for years. And then we have the small cap small Stocks tend to go down faster than their
larger brothers and sisters. They come down first starts to small tend to come back. They enter first. first in first out. That's an accounting
term, right? And so in this car, we just finished which the next report pretty harsh. So actually went up in value this past quarter and stocks took on. So all
indications are that post this report we're in a recession. Now we had two we have when we have two consecutive GDPs gross domestic products uh that's technically a recession and
the Atlanta Fed has already indicated that the first quarter was negative. We don't I haven't seen the official numbers yet. Uh but I think we're in a recession now and and the the market has told us
that in this past quarter that says domestic equity and it identifies the That index is what is being measured by the 500 index. So then it's standard for Yeah. index. Yeah.
Yeah. First the first category the 500 is being measured against with the 500 index. It's supposed to be dead on the small cap was the 2000. Yeah, this is the small cap. Actually,
this is a replacement of the previous small cap. We used to have a we used to have a different small product because it has we used to use the Russell uh 2000 which is small cap index and our research determined that
this index the Russell 300 has higher quality better small companies and ask on the next page we were talking about bonds and I said well you know with a
5% deal The Vertus flag bond portfolio should make about 5%. But look at the one year return. It's still 5% value the portfolio. The water last
year down because it expect this past quarter it flipped bonds have now started go up in price. So my starting work out here it's
starting to go perform well fact up about two and a half% here and that's not even a recession. That's why it's happening but you're not going to
hear about it for a while because they ask but I the Atlanta uh it's the bank in Atlanta which is typically um pretty much happening. They've indicated
that we're in a slow down now, but it's a while to the stops coming down the tree, but it takes a while for it on the ground, but it's happening. The tariffs are
only propelling this thing faster. Oil prices are down. Mhm. Have you noticed at the pump a little bit? The uh the oils come down from like 85 down to
like 60 price are actually up. I don't understand it yet on your side, but gas prices are up. There is a there is a global slowing down of shipments out of
China. Uh slow down I think I saw just the other day is around 15% already and that's with that's a couple of months. So you can see 25% decrease in shortness out
of just next couple couple of quarters which is significant prices. Anybody looking for a car? Bought one for my granddaughter granddad. What? It's the second one. I bought one and a price in
the time in two months double. Yeah, that makes that takes money out of people's pockets. Restaurant business is down in Miami. I know some people in the restaurant industry
30%. That's that's the sales in Miami are off 30%. And that's hot market. That's an international, you know, hospitality destination. Things are slowing down. You know, if the food was better, I
would know, would it? Depends where you go. He knows some secret restaurants. Restaurants. Where? I like to go to Cuban.
Sure. Me, too. Me too. Question about the report. I want to ask a basic question. Everybody thinks I know the answer, but I don't. Okay. And so you keep saying and
the magnificent setting like I don't know the magnificent. No, I want you to tell me please. You're gonna help me with this because they represent companies. I do. I don't have it with me, but I do.
Who has I do? I do. Okay. Who uses desktop computers every day at the office? Microsoft. Yeah, there's another one. Who sits around?
Huh? I knew you were gonna say that. Who goes on Google? Uh, actually, who goes on YouTube? Me. I do. Thank you. Google. Google.
Okay. Who watches all those cool movies that are on TV? Netflix. And then Meta is on there. Meta. Facebook. There's many different Yeah. Right.
What do they do? Processors. They're a dynamite company. I mean, they're three years ahead of everybody. Okay. So, that's good pretty much. I think I got them all. Tesla. I was gonna say something. You guys are
moving up in the class here. Tesla. Um, let's see. Did you get uh alphabet? Yes. Thank you. So you think about it, what you do every
day when where you spend money, where you're ordering merchandise, when you're watching television or working at the office, you're touching pretty much all of these top seven companies. Now, something very
odd happened two months ago that tripped the mag seven stocks. How many months ago? Change in administration. No.
No. Tariffs before tariffs. Come on. Oh yeah. What was deep sex deep Chinese company, little tiny
company claims to have come up with a a processing system that is a fraction of the cost of of the video. Mhm.
And um once that came out, you know, it's a Chinese thing, it just it's the whole just data centers you've been hearing about. Remember we started off talking about electric
command the centers are worthund million this kind of spending billions and billions of dollars on these and now they're thinking maybe we don't need to do all that because the Chinese are going to have a very inexpensive solution to
this. So all of that has created bless you some reservations let's say a pause in how we think about then the tariffs came didn't help because
uh China is a big buyer of our stuff and now China is being uh is having to pay well they're being restricted on what they can buy. Anyway, thank you very much. Hope I didn't talk too much. We enjoyed that.
May I have a motion to approve the report? I'll make a motion to approve the report. All right. Okay. Can you guys hear me and see me? Okay. Yes, we can hear you. Thank you. All right. Well, if you want to scroll
down to page six, Patrick, can you turn your mic up a little louder for us? Um, not really, but I'll try to talk louder. Is that better?
It's a little better. Thank you. So, if you look at page six of the report, I have good news. I like to share good news. Um, every year as of October 1st, Hold on one second.
Thank you. So, every year as of October 1st, we look at the assets in the pension plan and then we project out everybody's future retirement benefits and we determine an appropriate funding requirement for the next year. And we
always do it one year ahead so that the city can budget. So the right hand column there is a snapshot valuation date October 1, 2023 and that determine the requirements for the year that we're in right now.
And the left hand column is a snapshot as of October 1, 2024 that determines the requirements for next fiscal year. And that'll be what the city needs to budget for the budget year starting 1012025.
And so you can see the costs went down by 3% of payroll. And there was really one main reason for that. And you guys hired several new employees in fiscal
2024. And some of the costs in the valuation like that payment required to advertise the unfunded, that mortgage payment, you know, those are relatively fixed costs as a dollar amount. And then
when you increase the payroll, well, now you spread that out over a larger payroll and it reduces the percentage. So that that's the main reason why the cost went down from 30.7% of payroll this year to
27.6% of payroll for next year. Not a significant. And so if you want to go to page 30 I don't think we have a copy of that report, do we? We don't.
Okay. Well, we just completed it the other day. Um, we can email you guys all a copy, but here it is on the screen. So at the bottom of what you see there
it says development of investment gain or loss and it says market value of assets 930 2023 19 million6. So at the beginning of the year we had $19 million in the plan and
we have a 7.4% assumption. So we expected to earn 1,381 during the year and we actually earned 4,373. So remember my report is as of
September 30th. Um so you know we had a great fiscal year. So we actually earned 2,992 extra earnings more than what we expected to earn. And so it was the best
year we've probably ever had for the pension plan. But but you guys remember that we have to use a smoothing technique for this valuation because we don't want the city's cost to go way up and way down
every year. So to develop this actuarial value of assets, we actually use what's in the upper left hand corner there. We take those gains or losses each year and we spread them out over five years. So that
2,992 there, we're going to recognize 598,000 each year for the next five years. But we also had to recognize 20% of that $5.5 million loss from 2022.
And so when you average them all together there, we get an actuarial return of 6.06% which is less than our 7.4% assumption. So using the smoothing we
had an actuarial loss of 284,000. Um this is a year when you wish we weren't using the smoothing technique because otherwise we would have a have a gain of 2.9 million. Um but you know we
have to use it in good years and bad years. So the good thing is is that $2.9 million gain this year you know that's going to help us each year for the next four years. Um, and then two more years
from now, we'll be done recognizing that $5.5 million loss. So, does anybody have any questions on this page? Yeah, I have a question. Sure. Yeah. So,
I know we'll finish recognizing the 5 million, but then we'll have additional years that we're recognizing the 2.9 million for the king. Right. Correct. Okay. So then the the turnover is also
important and that's on page 37. So this page is really why the cost went down on page six because you can see there at 101 2023 you had 92 non-drop active
employees and you had 19 of them separate nonretirement and you had one person enter the drop and then you hired 35 five new employees. So you went from 92 to
107 and so you know your payroll went up which helps the percentage of payroll and then the turnover there the the 19 people that terminated we expected about 12 and a
half. So you had more turnover than we expected and that was also a gain because if somebody leaves before they're vested all they get back is their own contributions and all the city contributions and investment return all
that stays in the plan. So high turnover helps the funding requirement and that did help you a little bit this year. at the bottom of the page. Um, this is when it sucks to be an actuary because mortality is a good thing for the
pension plan, but obviously a bad thing for the retirees. And so you had three of your retirees pass away uh in that lefthand column, but two of them actually had
joint and survivor benefits. So now their beneficiaries are receiving payments. Um so you really only had one retiree pass away that had no survivor. So the mortality
um hurt the plan a little bit this fiscal year. Does anybody have any questions about that page? No. So then I'll make you go back towards the beginning of the report page
um 17. So that's a reconciliation of your unfunded actuarial acred liability. And at the beginning of the year it was 7.9 million but we make a payment each year to pay that down. So, we expected it to
go to 7.1 million. And part of why the expectation went down so much is because we're making a pretty hefty payment anyway. And then you hired all those new employees, right? And so the
city made contributions on those those new employees. So all that to say, you got quite a bit of contributions in fiscal 2024. So we expected the unfunded to go from 7.9 million to 7.1 million and in the
end it was 7.39 million. So you had a net actuarial loss there of 230,000 but you can see that it was pretty much all the result of that smoothing of the assets. So that
actuarial asset return of 6.06% 06%. That's what gave you that $284,000 loss there. The rest of the experience was pretty neutral. A little bit of an increase in salaries, you
know, above our expectation. That was a loss. The turnover was a gain of 30,000. The inactive mortality was a loss of 42,000. And all the other experience was a gain.
Um, so then if you go to page well the top line on page 12 is the normal cost and that's just the cost of each employee acrewing a year of service each year. So that stays pretty stable.
11.9% of payroll last year, 11.9% of payroll this year. And then the administrative expenses stayed the same, 1% of payroll. But that third line is our payment to pay down that unfunded actual acred liability. So your payment
went down a little bit because we made a big payment this year. And your payroll went up and and so that line went from 23.8% 8% of payroll to 20.7% of payroll. Um the last thing I'll show you
is on page 10. That's the funded ratio. Uh the bottom of that page. So that last year it was 72.9% and this year it's 74.9%. So you had an improvement in the
actuarial funded ratio of the plan. So really all all pretty much good news in this report. Does anybody have any questions about it? I I So for budgeting purposes for next year, you
said we could budget at 27.6%. Correct. Um, I didn't hear all of it, but yes, 27.6% of payroll is what the city needs to contribute next fiscal year. set up and report. So we have
we have one more item to go through. Um we need to set the expected rate of return for the based on the advice of the consultant what return to expect for in the next year the next several years and
the longterm. Okay. So and I'm comfortable with the 7.4% right now. I mean, this year has been rocky, but um you know, we're in it for the long haul, and I'm comfortable
with the 7.4%. Yes. So, based on the advice of the consultant, the board expects to get a 7.4% rate return for the next year, the next 30 years, and the long term thereafter. Okay. So, you want number to
say all. All right. So, yeah, I'll make the motion that was uh recommended by uh Patrick uh that we accept that proposal. So, going forward to make sure that
Yes. Do I have a second? Second. Okay, perfect. It has been favor. Thank you. And we now look forward to
Hi everybody. Um just a quick note, the two other boards have decided to move forward with um a possible ordinance change that would allow for new um benefit options. And this would be a
partial lumpsum option. So um the member would have the opportunity to take 5, 10, 15 or 20% of their benefit in a lump sum option when they retire and then the rest would be distributed um you know monthly. But
this would give them that option if for whatever reason they do want to take a lump sum. um as we discussed with the other boards, you know, the it's limited to um a maximum of 20% just so that we're not having a situation where someone is is trying to take out um too
much of their benefit that's supposed to last, you know, a lifetime for them. So, I am going to be drafting the ordinance for the other two boards. Um so, if that's something that you would want to discuss or move forward with, then I could certainly do it for this board as well.
make a motion to dispense it first or just discuss it. Would you all like to discuss? I don't think it hurts to have options. Doesn't mean everyone has to partake in that, but to give those retirees that want to take advantage of
that stuff. And this this should be a no cost item to the plan, which once the ordinance is drafted, I'll send it to Patrick and he will provide a letter saying so. Um, so again, it has to be as with anything that's changing the plan
document approved by city council, but it will be a no cost item. So hopefully there won't be um much push back on that. motion. I'm not sure what that is for me. If most employees were to take that
option at 20% that would effect I'm sorry you were asking me a question. If most of the employees take the 20%. Yes, it won't it won't be an issue from my perspective. The only issue could be that you would
need to keep a little bit more in cash. Um because if you know 10 people decided to retire at once and all take a 20% lump sum, then you might have to have a little extra cash on hand. But
we've already accumulated the money ideally by the time that person retires. You know, that's why we do this contribution every year. So from an actuarial perspective, it has no negative impact at all.
So to restate, we all have liquidity because more individuals will be ga. I'm sorry. Can you repeat the question? I think we're finished.
So, now that we've discussed it, would we like to make a motion, please? I'll make a motion that we um participate in the ordinance that's being drafted employees to make that long for the time where people
[Music] Anna, who originally brought up the question um requesting the lump sum benefit. I I believe it was the fire board. Okay. I'm sorry. I I don't know how I was muted. It was the fireboard.
Thank you. I want to remind everyone the form one with the state has to be submitted can only be submitted electronically from now on. If you need any help in finding out how to submit it, you let me down
and I'll over some assistance. It looks like no multiple. And that's not due until June, right? Um July 1st is the cut off date. So the end of Joe. Yes. I'll put
a business result. Make sure we're policies and procedures. this outside. So that was something they just wanted to
vote. Register. So it's So that's fair. They chose different training classy about it. Well, the state one is is very good.
last year. They should do our window. Thank you. you're going to join. So you get to be certified and it's taxable. Thank
you. Let's see. 2020. Motion for the financials. Mr. Thank you. Perfect. Thank you. Now
approvals several pages of them between distrib They can all be done in one time. If I get everyone to take a look at them in writing or as a group as a group we can do all of at one time they will need to be signed
and cosigned the actual is there any issue with Mr. Bush voting since he's one of the uh participants through yes he will have to abstaining okay I'll make a motion that we approve
and then we'll do Mr. Bush. Um, you'll need to fill that on personal phone. Did you want to ask about getting the plan? There's a very description
question. There was a request for a summary description. Has one ever been done for this board? Um, let me pull that up. I'm sorry. Your your audio is going in and out, so I apologize. I hear that. Let me
check. One moment. I can tell you. If not, I can certainly prepare an updated one. post description which was the latest. It looks like there was one updated in 2024.
Before that, it was 2021. So, let me review. There probably have even been some changes since then. It was May. Um, and I can have that ready for the next meeting if that's okay. Thank you. I would like to make a motion for the updated summary description. Updated
summary plan description. I'll second that motion. It's the motion. Okay. We