Firefighters' Retirement Fund Board of Trustees

110 SE Watula Avenue Ocala Ocala, FL 34471 Firefighters' Retirement Fund Board www.ocalafl.gov of Trustees Minutes - Final Monday, February 21, 2022 9:00 AM 1 Meeting Called to Order You may also join the meeting through TEAMS: https://bit.ly/3HPaZpg Or call in (audio only) +1 352-448-0342,,513632441# United States, Gainesville Phone Conference ID: 513 632 441# Meeting was called to order by Chairman, Mr. Davis at 9:02 on February 21, 2022. 2 Roll Call Present: John Dozier Glen Fiorello Glen Fiorello Joshua Phillips Robert Davis Robert Davis Excused: Justin Hardy Others in attendance: Allen Peters, Richard Grubs, Dave West, Lawrence Watts, Alicia Gaither and Adam Levinson by Teams 3 Public Comment No Public Comments 4 Attorney Updates Mr. Levinson provided an updated on the lawsuit filing with the City. The document was emailed to the City of Ocala with a requested response date of March 18th. Complaint Filed Attachments: Complaint - filed (00206882xBC171) Page 1 of 6 Firefighters' Retirement Fund Board of Trustees Minutes - Final February 21, 2022 5 Bond to purchase Burn Building/Training Tower Discussion Attachments: Agenda Item - Bond (Fire Training Facility) Mr. Davis made a motion requesting the Board seek consultation from their advisors about the viability and legality of issuing a one-to-one and a half-million-dollar loan to the City of Ocala to purchase a Live Training Building/Tower to enhance firefighter safety. The Board was in agreement that Chairman Davis would meet with the plan's professionals and provide possible options for discussion at the May meeting. RESULT: APPROVED MOVER: Robert Davis SECONDER: Glen Fiorello AYE: Davis, Fiorello, Phillips and Dozier EXCUSED: Hardy 6 Nyhart Valuation Report & Cola Update Mr. Watts presented the 2021 annual valuation to the Board. The City's expected contribution for 2022-2023 will be 40% or 3.398 million. The funding ratio was up to 78.8%. Mr. Watts is recommending the plan do an experience study next year. RESULT: APPROVED A. Nyhart Cola & Valuation Attachments: COLA Jan 2022 Changes Ocala Firefighters 1-1-2022 COLA Letter (to Ocala 1.28.2022) Ocala Fire Board Summary 2021 (for 02-21-22 Meeting) Ocala Firefighters 10-1-2021 Valuation Report (for Client 021622 for 022122 Meeting) Ocala Firefighters GASB 67 & 68 Report 2021-09-30 (2022-02-16 to Ocala for Board Meeting) RESULT: APPROVED MOVER: John Dozier SECONDER: Joshua Phillips AYE: Davis, Fiorello, Phillips and Dozier EXCUSED: Hardy Page 2 of 6 Firefighters' Retirement Fund Board of Trustees Minutes - Final February 21, 2022 7. Consultant Review of Performance Mr. West provided an update on Andco the firm. Stating the firm is still employee owed with 87 employees and over 123 billion they provide advisory services for. Mr. West covered the current and prior quarter domestic and global market conditions and environmental issues. He presented the plan performance for quarter ending December 31, 2021. Overall the plan had a great quarter but gave back much of the gains in January and February already. Mr. West recommended moving 2% of domestic equity. That would mean taking $3 million from Integrity and giving $1 million each to Wells Fargo Large Cap Growth, Wells Fargo Large Cap Value, and Wells Fargo Vanguard R&D. A. Consultant - Quarterly Performance Report Attachments: 2021-12-31 Ocala Fire (Quarterly Report) 8. Minutes A. Minutes Nov 15, 2021 & Dec 15, 2021 Attachments: Fire Minutes November 15 2021 Fire Minutes Dec 15 2021 RESULT: APPROVED MOVER: John Dozier SECONDER: Robert Davis AYE: Davis, Fiorello, Phillips and Dozier EXCUSED: Hardy 9. Expenses, Revenue and Budget A. Expenses for the Quarter November 2021 - January 2022 B. Expenses & Revenue for Fiscal Year 2020-2021 C. Budget FY 2022-2023 A. Fire Expenses Attachments: Fire Expenses Nov 21 - Jan 22 RESULT: APPROVED MOVER: Robert Davis SECONDER: John Dozier AYE: Trustee Dozier, Trustee Fiorello, Trustee Hardy, Trustee Phillips, Chairperson Davis and Trustee Davis B. Fire Expenses FY 2020-2021 Attachments: PNRVEX20-21 Revised 1.25.2022 fire summary PNRVEX20-21 Revised 1.25.2022 fire RESULT: APPROVED MOVER: Glen Fiorello SECONDER: Robert Davis Page 3 of 6 Firefighters' Retirement Fund Board of Trustees Minutes - Final February 21, 2022 AYE: Trustee Dozier, Trustee Fiorello, Trustee Hardy, Trustee Phillips, Chairperson Davis and Trustee Davis C. Fire Budget FY 2022-2023 Attachments: Fire 2022-2023 Budget Pension Plans RESULT: APPROVED MOVER: Joshua Phillips SECONDER: Glen Fiorello AYE: Trustee Dozier, Trustee Fiorello, Trustee Hardy, Trustee Phillips, Chairperson Davis and Trustee Davis 10. Administrator's Report A. Disability Tax Update Ms. Gaither provide the Board with an update on the Disability Tax Issue. Stating that all of the members had been contacted regarding their current tax liability and those that wanted to make a change had been implemented. B. DROP Interest Update Ms. Gaither provided an update to the Board. Stating that all those that are currently active in the DROP had completed the new DROP Interest Acknowledge Form and that each member was aware of the current earnable interest rate of 6% and if or when the rate could change. C. Post DROP quarterly Statements Status Report Ms. Gaither provide an update to the Board reporting that: 9/30/2021 qrt end. 11/2/2021 Received performance report from Mr. West 11/2/2021 - Sent request to Nyhart to prepare the statements 12/6/2021 - Received statements from Nyhart 12/7/2021 - Emailed statements to Individuals 12/30/2021 qrt end 2/8/2022 - Received performance report from Mr. West 2/9/2022 - Sent request for statements to Nyhart Page 4 of 6 Firefighters' Retirement Fund Board of Trustees Minutes - Final February 21, 2022 D. Trustee Election & Appointments The nomination for Mr. Phillips elected position was open from August 17, 2021 through September 1, 2021. There were 14 responses, all for Mr. Phillips. Since there were no other nomination there was no election and Mr. Phillips accepted the nomination. Mr. Justin Hardy is the fifth member of the Board. His term expired October 2021. Mr. Hardy submitted an application to continue to be a trustee for the Board. The Board voted to reappoint Mr. Hardy as the fifth member. Approve Mr. Phillips Reappointment There being no further discussion the motion carried by roll call vote. RESULT: APPROVED MOVER: John Dozier SECONDER: Glen Fiorello AYE: Trustee Dozier, Trustee Fiorello, Trustee Hardy, Trustee Phillips, Chairperson Davis and Trustee Davis Mr. Hardy Reappointment There being no further discussion the motion carried by roll call vote. RESULT: APPROVED MOVER: Joshua Phillips SECONDER: Glen Fiorello AYE: Trustee Dozier, Trustee Fiorello, Trustee Hardy, Trustee Phillips, Chairperson Davis and Trustee Davis E. Expected Rate of Investment Return Based on the advice of its investment professionals and actuary, determined that the total expected annual rate of investment return for the fund for the next year, the next several years, and the long-term thereafter, shall be 7%, net of investment related expenses. this determination is made in accordance with Section 112.661 (9), Florida Statutes. There being no further discussion the motion carried by roll call vote. RESULT: ADOPTED MOVER: Joshua Phillips SECONDER: Glen Fiorello AYE: Davis, Fiorello, Phillips and Dozier EXCUSED: Hardy 11. Other/Informational Items Ms. Gaither will work with Mr. West and Wells Fargo to set up UBS and Crescent so that at the end of each month the cash is moved to be reinvested or used for expenses. Page 5 of 6 Firefighters' Retirement Fund Board of Trustees Minutes - Final February 21, 2022 12. Adjournment _________________________________ ________________________________ Robert Davis, Chairman Justin Hardy, Board Secretary Page 6 of 6