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Home My Public Portal About2021-08-31_Pol Fire Meeting_MinutesCITY OF CRESTVIEW POLICE OFFICERS' & FIREFIGHTERS' 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 2:30pm Andrew Schneider Corey Winkler Ellis Conner TRUSTEES ABSENT: David Grigg OTHERS PRESENT: Tyler Grumbles, AndCo Consulting Stu Kaufman, Klausner, Kaufman, Jensen, & Levinson (via phone) Kim Kilgore, Foster & Foster Gina Toussaint, City Finance Director 1. CaII to Order — Andrew Schneider called the meeting to order at 2:32pm. 2. Roll CaII — 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 Corey Winkler and second by Ellis Conner: motion carried 3-0. 5. Reports (Attorney/Consultants) a. 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 Administrator and the personnel changes within their company. Chuck further commented they usually like 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 $22,150, 024. 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. 7. Andrew Schneider asked about the delay of the audit and the approval of the State report. Kim Kilgore commented the audit report had been sent to the State today and was expecting the annual report approval soon. 1 The Board voted to approve the audit as presented, upon motion by Ellis Conner and second by Corey Winkler; motion carried 3-0. b. 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. Tyler Grumbles stated the rebalance was completed during this quarter adding 3.80(3/0 allocation to the Infrastructure investment. Tyler commented the goal was 5.00% allocation to Infrastructure and may rebalance next quarter to reach the target. 3. The asset allocation by asset class for the fund was Domestic Equity at 44.40%, International Equity at 14.60%, Domestic Fixed at 24.60%, Non -Core Fixed at 5.00%, Infrastructure at 3.80%, Real Estate at 7.80%, and Cash at -.20%. 4. Corey Winkler asked about the negative Cash account. Tyler Grumbles commented the custodian needed additional cash for DROP disbursement which had been paid out. Tyler further commented the Cash account was in the positive now. 5. The financial reconciliation from the previous quarter had a beginning market value of $25,273,579 on April 1, 2021 and ending market value of $26,608,896 on June 30, 2021. The financial reconciliation for the fiscal year had a beginning market value of $22,032,191 and ending market value of $26,608,896 as of June 30, 2021. 6. Gross earnings for the quarter were 5.42% outperforming the benchmark of 5.26%. The trailing returns for the FYTD, 1, 3, 4, and 5-year periods were 19.68%, 25.85°/0, 11.97%, 11.10%, and 11.37%. Since inception (10/01/1994) returns were 8.21%, slightly underperforming the policy benchmark of 8.25%. 7. Tyler Grumbles reviewed each of the investment managers performance. 8. Corey Winkler asked about the under performance of the Dana investment. Tyler Grumbles commented Dana's style of investment had not been in favor. Tyler further commented Dana was a very tough strategy fin evah iatP anrt wn3 ilrl viva tham a Iittla 1. Stu Kaufman commented the 2020 State premium tax distribution allotted to the Fire was $155,451.17 and Police was $222,792.21 which was an increase from the previous year. ii. 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. Legislation update 1. Stu Kaufman reviewed the Federal and State COVID benefits for Public Safety Officers. Stu commented 1-IS 53 was filed on August 27, 2021, and proposed to extend the communicable disease provision to include a line of duty presumption for COVID 19 or an infectious disease. Stu further commented the bill would also require the public safety member to be vaccinated by an FDA approved vaccine to be covered under the presumption. iv. Stu Kaufman stated the transition of the new plan administrator had been positive and smooth. 6. New Business a. Trustee term expirations: i. Andrew Schneider, member elected trustees term expires 11/13/21 and he confirmed he would like to rerun for the position. ii. Ellis Conner, commission appointed trustee term expires 11/30/21 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. b. Proposed 2021-2022 budget i. Kim Kilgore reviewed the budget requirement and each expenditure type. The Board approved the 2021-2022 budget as presented in the total amount of $142,500. loon motion by Corev Winkler and second by Ellis Conner: motion carried 3-0. 7. ON Business a. Online member portal i. Kim Kilgore commented the portal demo was presented at the last meeting at the cost of $7,500 implementation fee with annual fee of $12,500 for weekly payroll updates or $8,500 for annual updates. li. Corey Winkler commented he was concerned about the cost versus the benefit but liked the idea of having the portal for the members. iii. Conversation ensued on the pension fund doing well and maybe it was a good time to add a portal for the members to assistance them with their retirement planning. iv. Corey Winkler suggested to table further discussion on the portal until the full board was present. The Board approved to table the discussion on the member portal until the next ouarterly meetinu when the full board was present. upon motion by Corev Winkler and second by Ellis Conner: motion carried 3-0. b. Vacant city appointed trustee seat i. Kim Kilgore commented the City was still looking for applicant to fill the open city appointed position on the board. a. Consent Agenda a. Payment ratification — Warrants #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 Ellis Conner and second by Corey Winkler: motion carried 3-0. 10. Staff Reports, Discussion and Action a. Foster & Foster, Kim Kilgore, Plan Administrator i. Update on State monies 1. Kim Kilgore commented we were currently waiting on the district's audit report to be completed to finalize the State annual report. Kim further commented the audit report was sent to the State today and was expecting the approval in time to receive the State monies 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 Reports, Discussion and Action — None. 12. Adiournment - The meeting adjourned at 3:35pm. 13. Next Meeting — November 30, 2021, at 2:30pm. Reap "ctfully s mitted by: App _11.2 0 it �. K)n Kilgr9 , Pla$4 Administrator jl4ndrew S neider, Chairman Date Approved by the Pension Board: ///g0%/� / r 4