Finance Committee Meeting

Finance Committee Meeting Commission Chamber - 9/10/2019 ATTENDANCE: Present: Hons. Fennoy, Chairman; D. Williams, Vice Chairman; Frantom, member. Absent: Hon. Hardie Davis, Jr., Mayor; M. Williams, member. FINANCE 1. Motion to approve the minutes of the Finance Committee held on August 27, Item 2019. Action: Approved Motions Motion Motion Motion Text Made By Seconded By Type Result Motion to approve. Commisioner Commissioner Approve Passes Motion Passes Sean Frantom Dennis Williams 3-0. 2. Motion to approve Option 2 concerning the Guaranteed Minimum Interest Item Rate (GMIR) for the fixed annuity investment option in the Nationwide Fixed Action: Annuity offered in the 457(b) Deferred Compensation Plan. Approved Motions Motion Motion Motion Text Made By Seconded By Type Result Motion to approve. Commisioner Commissioner Approve Passes Motion Passes Sean Frantom Dennis Williams 3-0. www.augustaga.gov  Finance Committee Meeting 9/10/2019 1:20 PM Attendance 9/10/19 Department: Presenter: Caption: Background: Analysis: Financial Impact: Alternatives: Recommendation: Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY:  -fr ]T Finance Committee Meeting Commission Chamber - 812712019 ATTENDANCE: Present: Hons. Hardie Davis, Jr., Mayor; Fennoy, Chairman; D. Williams, Vice Chairman; M. Williams and Frantom, members. FINANCE 1. Motion to approve the minutes of the Finance Committee held on August Item 13,2019. Action: Rescheduled Motions Motion fr'J:" Motion rext Made By Seconded By Result Motion to refer this item to the full Commissioner Commissioner Defer Commission with no Marion Dennis Passes recommendation. Williams Williams Motion Passes 4-0. www.augustaga.qov  Finance Committee Meeting 9/10/2019 1:20 PM Minutes Department: Presenter: Caption: Motion to approve the minutes of the Finance Committee held on August 27, 2019. Background: Analysis: Financial Impact: Alternatives: Recommendation: Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY:  Finance Committee Meeting 9/10/2019 1:20 PM Nationwide 457(b) Fixed Annuity Interest Rate Change Department: Finance and Human Resources Presenter: Caption: Motion to approve Option 2 concerning the Guaranteed Minimum Interest Rate (GMIR) for the fixed annuity investment option in the Nationwide Fixed Annuity offered in the 457(b) Deferred Compensation Plan. Background: One of the investment options for Augusta's employees who participate in the voluntary 457(b) plan is a fixed annuity with a guaranteed minimum interest rate. In the climate of declining interest rates, Nationwide has not adjusted the rate downward until now. Augusta must choose an option prior to September 30. Analysis: Both options have the same schedule of interest rates but Option Two allows the employee to transfers a larger percentage annually out of the fixed annuity to other investment plans, allowing more flexibility in their investment strategy. Financial Impact: There is no cost to Augusta and no cost to the employee. Alternatives: 1) choose Option One which allows less flexibility to the employee 2) do not choose an option, which will result in the loss of the fixed annuity option for the employee. Neither of these alternatives are preferred to Option Two Recommendation: Select Option Two Funds are Available in the N/A Following Accounts: REVIEWED AND APPROVED BY: Finance. Law. Administrator. Clerk of Commission