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Home My Public Portal About2021-08-31_Meeting_MinutesCITY OF CRESTVIEW GENERAL EMPLOYEES' PENSION TRUST FUND PENSION BOARD OF TRUSTEES QUARTERLY MEETING MINUTES 198 N. Wilson Street Crestview, FL 32536 TRUSTEES PRESENT: Tuesday, August 31, 2021, at 1:00pm Joe Carr Jerry Maughon David Williams TRUSTEES ABSENT: Chuck Powell Gene Strickland OTHERS PRESENT: Tyler Grumbles, AndCo Stu Kaufman, Klausner, Kaufman, Jensen, & Levinson (via phone) Kim Kilgore, Foster & Foster 1. Call to Order — Chair Jerry Maughon called the meeting to order at 1:09pm. 2. Roll Call — As reflected above. 3. Public Comments — None. 4. Approval of Minutes The minutes from the June 8.2021, quarterly meeting were approved, upon motion by Joe Carr and second by David Williams: motion carried 3-0. 5. Reports (Attorney/Consultants) a. AndCo Consulting, Tyler Grumbles, Investment Consultant i. Quarterly Report as of June 30, 2021 1. Tyler Grumbles reviewed the market environment during the past quarter. Tyler commented there was a reverse from recent quarters with growth outpacing value and large companies dominating. 2. The asset allocation by asset class for the fund was Domestic Equity at 45.80%, International Equity at 15.60%, Domestic Fixed at 22.10%, Non - Core Fixed at 4.00%, Real Estate at 8.20%, Infrastructure at 4.00% and Cash at .2°/0. Tyler commented the asset allocation was in line with the Investment Policy Statement and there was no need to rebalance. 3. Tyler Grumbles reviewed the financial reconciliation from the previous quarter with a beginning market value of $23,524,172 on April 1, 2021, and ending market value of $24,737,391 on June 30, 2021. Tyler further reviewed the financial reconciliation for the fiscal year with a beginning market value of $20,907,266 and ending market value of $24,737,391 as of June 30, 2021. 4. Gross earnings for the quarter were 5.66% outperforming the benchmark of 5.52%. The trailing returns for the FYTD, 1, 3, 4, and 5-year periods were 19.59%, 25.87%, 12.34%, 11.41%, and 11.63%. Since inception (07/01/1998) returns were 7.12%, outperforming the policy benchmark of 6.65%. 1 5. Tyler Grumbles reviewed each of the investment managers performance for the past quarter commenting overall the investments had been performing well for the plan. ii. Fee proposal 1. Tyler Grumbles commented AndCo had been serving the Crestview General Employees fund for the past 21 years. Tyler highlighted a few of the changes made to the plan's investment program while AndCo had been the consultant. 2. Tyler Grumbles requested the Board for consideration of a proposed fee change of either an annual retainer of $24,000 with a 2% annual escalator or annual retainer of $21,000 with a 5% annual escalator. Tyler commented these fees would be guaranteed for 3 years and effective October 1, 2021. 3. Tyler Grumbles commented while this request represented an increase to current hard dollar fee, the new proposed fees still reflected a significant reduction in the proposed rate when considering the asset growth and service provided. The Board approved the chance in fees fir AndCo to an annual retailer of $24,000 and an annual automatic escalator of 2% effective October 1. 2021, upon motioned by Joe Carr and second lair. David Williams: motioned carried 3-0. b. Klausner, Kaufman, Jensen, & Levinson, Stu Kaufman, Board Attorney i. Financial disclosures 1. Stu Kaufman reminded the trustees their annual financial disclosure form needed to be filed to avoid penalties. Kim Kilgore commented all trustees have filed. c. Saltmarsh, Cleaveland & Gund, Chuck Landers, Board Auditor i. September 30, 2020, Audit 1. Chuck Landers introduced himself and apologized for the delay in the audit due to the transfer of the plan administrator and the personnel changes within their company. Chuck further commented they usually liked to have the audit completed by March or April. 2. Chuck Landers explained the audit included evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. 3. Chuck Landers reviewed the statement of fiduciary net position showing a net position restricted for pensions in the amount of $20,418,189. 4. Chuck Landers reviewed the fund's additions (contributions) and deductions (benefits paid/administrative expenses). 5. Chuck Landers reviewed the breakdown of deposits and each investment with the fund. 6. Chuck Landers noted the Board was required to keep minutes and 1 out of the 4 meetings the minutes were missing and recommended the Plan maintain minutes of all their board meetings according to Florida Statutes. The Board voted to approve the audit as presented. upon motion by David Williams and second by Joe Carr; motion carried 3-0. 6. New Business a. Trustee term expirations: i. Chuck Powell, member elected trustees term expires 11/16/21 and he confirmed he would like to rerun for the position. 2 ii. Gene Strickland, commission appointed trustee term expires 10/25/21 and he confirmed he would like to be reappointed. iii. Kim Kilgore commented she would reach out to the City Commission for reappointment and would need to send request for nomination to post for the member elected seat. 7. Old Business a. Online member portal i. The board would like to table discussion on online member portal until next meeting when full board was present. 8. Consent Agenda a. Payment ratification — VVarrants #11, #12 and #13 b. Invoices for approval — None c. Fund activity report for June 2, 2021 — August 24, 2021 The Board voted to approve the Consent Agenda as presented. upon motion by David iIliams and second by Joe Carr: motion carried 3-0. 10. Staff ':epos s, iscussion and Action a. Foster & Foster, Kim Kilgore, Plan Administrator i. SB534 posting requirements 1. Kim Kilgore stated the SB534 State required postings have been published to the City's website. ii. Upcoming educational opportunities 1. Kim Kilgore reviewed the upcoming educational opportunities available to the Board. Kim commented the FPPTA Fall Trustee School would be held October 3-6, 2021, in Ponte Vedra, Florida and the Division of Retirement Conference would be held November 3-5, 2021, in Orlando, Florida 11. Trustee etcovrs, iiscvssion and Action — None. 12. Ad ournrnernt - The meeting adjourned at 1:40pm. 13. Text eetinq — November 30, 2021, at 1:00pm. p Kilgo , ' Ian • ministrator Date Approved by the Pension Board: