Lake Wales Police Officers Pension Board

City of Lake Wales Police Officers’ Plan and Trust Fund April 26, 2021 MINUTES Board Members Present Also Present Absent / Excused David Black – Secretary Pedro Herrera – Attorney (via phone) Bill Raebig - Chairman Robert Plummer – Trustee Frank Wan – Consultant Thomas McKeon – Trustee Caleb Hynson – Administrator Carlos Unzueta - Trustee Frank Mega - Administrator Steve Stack – Highland Capital Patrick Donlan – Foster & Foster I. Call To Order & Roll Call Meeting called to order at 1:03 p.m. by Secretary David Black. Roll call by Plan Administrator. A quorum was in attendance. II. Open Forum No members or concerned parties requested to address the Board of Trustees. III. Minutes /Accounting Report Minutes from the January 25, 2021 meeting and accounting report offered for Board consideration. A motion was made by Robert Plummer to approve the minutes and accounting report as presented; the motion was seconded by Carlos Unzueta and passed unanimously. Minutes from the March 9, 2021 Special Meeting offered for Board consideration. A motion was made by Carlos Unzueta to approve the minutes as presented; the motion was seconded by Robert Plummer and passed unanimously. IV. Old Business Ordinance Update Plan Attorney reviewed the Ordinances with the Board. This includes making changes to the asset allocation, allowing for BBB rated bonds, Secure Act and changing language ordinance from calendar year to fiscal year. Also written in the proposed ordinance was the option to allow members to leave funds in their DROP account until age 59 ½. PBA representative Nick Marolda addressed the Board regarding the 90k CAP benefit study performed for the Police Plan by Foster & Foster. Discussion among Board members took place on the study. V. Investment Manager Report Steve Stack presented Highland Capital Report for quarter ending Q1. The first quarter of 2021 saw the market continue its move higher by gaining another (+)6.17%. The move was driven by improved earnings outlook, rising consumer confidence, and building optimism for stronger GDP Page 1 of 2  as the economy re-opens. The roughly 75% gain off the Covid induced market lows of 3/23/2020 caps the best 12-month market rally in 75 years. The quarterly return for the fund was (+)5.59%. The Fund beginning quarterly balance of $13,962,592 and ending quarter balance of $14,665,907, a (+) $703,315 increase. VI. Consultant Report Frank Wan from Burgess Chambers & Associates provided an overview of the fund. The fund began the quarter at $17,323,188 and ending balance of $18,108,346. For the quarter, the Trust earned $910,945 or (+) 5.2% net. The top performers were Highland large-cap value (+)13.8 & SPDR S&P Dividend (+)12.3%. The top performers for 1-year period Fidelity large-cap growth (+) 63.2% and Highland large-cap growth (+) 64.2%. The fund is in line with IPS. The fund is positioned well to perform for 2021 and setup to mitigate risks. The Consultant is awaiting city direction on ordinance changes to asset allocation and bond classification. VII. Attorney Report The Plan Attorney spoke on the continuing education opportunities available through the FPPTA. A virtual conference is being offered online and a live Summer conference is being considered. More information to be provided to Trustees as it becomes available.  ACTION ITEM: Plan Administrator to update Board members on educational opportunities. Pedro also provided an overview of the Florida State Legislative session. A Bill is actively being considered to close the Defined Benefit arm of FRS. The Bill has some traction and unsure if it will face a vote or pass. Pedro will continue to monitor and update the board accordingly. VIII. Adjournment / Next Meeting A motion to adjourn was made adjourn meeting by Secretary Black. The next regularly scheduled meeting is July 26, 2021 at 1pm. DISABILITY INFORMATION: In accordance with the Americans with Disabilities Act and F.S.S. 286.26, persons with disabilities needing special accommodation to participate in this meeting should contact HYN Consulting, Plan Administrator, within 48 hours subsequent to the proceeding at 727-559-7333 for assistance. If hearing impaired, call the Florida Relay Service Numbers at 800-955-8771 (TDD) or 800-955-8770 (VOICE) for assistance. APPEAL NOTICE: If a person decides to appeal any decision made by the Board, with respect to any matter considered at such meeting or hearing, that person will need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which appeal is to be based. Page 2 of 2