Pension Board of Trustees

City of Wilton Manors General Employee & Police Page 1 of 5 Pension Board of Trustees Minutes March 6, 2018 I. Pledge of Allegiance II. Call To Order Secretary Bihus called the meeting of the Wilton Manors Pension Board of Trustees to order at 5:35 p.m. III. Roll Call Biagio Balistreri, John Pilch &Secretary Barbara Bihus - Chairman Joshua Kroon was on speaker phone during the meeting. Others Present: Joan Wall, Eric Leventhal Auditor, John Small, Southeastern Advisory Services & Bob Mays, Finance Director IV. Additions/Deletions ❖ Attorney Levinson said that Trustee/5^'' MemberChristopher"Shawn Chadwick" has resigned from the board due to a conflict with his work schedule. Shawn will need to file Form 1F which lets the Supervisor of Elections know he resigned from the board. This now leaves an opening on the Board for a 5"^ Member, they do not have to live in the City ofWilton Manors. Trustee Bihus said she may have someone who might be interested and would contact him. Attorney Levinson said the other board members should also ask around too, and have anyone interested fill out an application for the board. ❖ Request for Benefit Calculation from General Employee Timothy Blanton who will be retiring from the City April 2, 2018. V. Comments from the Public None Consent Agenda Secretary Bihus asked for a motion to approve the consent agenda and also asked if anyone wanted any item pulled from the Consent Agenda for further discussion and if not she would like a motion to approve the minutes and receive and File under the Consent Agenda. Approval of Minutes: Trustee Balistreri made the motion to approve the December 5, 2017 minutes, seconded by Trustee Pilch. Vote: Ayes: Pilch, Balistreri and Secretary Bihus Nayes: None Motion to Receive and File: Warrant 2017-042 • Hoekstra - Recording/Secretarial Services &Supplies $508.74 Warrant 2017-043 • KSDT, Auditor Inv. #53649 $865.00 Warrant 2017-044 • Klausner, Kaufman, Jensen & Levinson Inv. 11/29/17  City of Wilton Manors GE & Police Pension Board of Trustees Minutes Page 2 of 5 March 6. 2018 Warrant 2017-045 • KSDT, Auditor Invoice #52404 Warrant 2017-046 • Gabriel Roeder Smith Invoice #434953 Warrant 2018-001 • Trustee per diem for FPPTA School Warrant 2018-002 • KSDT, Auditor Invoice #54699 • Gabriel Roeder Smith Invoice #435889 • Klausner, Kaufman, Jensen & Levinson Invoice 12/31/17 • Southeastern Advisory Services 12/31/17 Warrant 2018-003 • Joan L. Wall, Bookkeeper 9/23/17-1 /18/18 + Copies&Postage $1346.96 Warrant 2018-004 • Garcia Hamilton & Associates Invoice #28844 $4062.70 Warrant 2018-005 • SDT Invoice #55582 • NPEA - 2018 Membership Dues Warrant 2018-006 • Balistreri & Hoekstra Reimburse Expenses FPPTA School $1715.01 Warrant 2018-007 • Bihus & Pilch Reimburse Expenses FPPTA School $1945.58 Trustee Balistreri made a motion to ratify the bills, seconded by Trustee Pilch. Vote: Ayes: Balistreri, Pilch, Bihus, Nayes: None VII. New Business 1. Kabat, Schertzer, DeLaTorre, Taraboulos &Co - Presentation Financial Statements Eric Leventhal introduced himself to the board and said he was there to present the results of the audit for the year ended September 30, 2017 to the board. ❖ Independent Auditor's Opinion - It is an unmodified opinion and that means they have conducted the audit under and in accordance with auditing standards. It was clean opinion. ❖ Page 4 - Management discussions and analysis - Gives a summary of what he will be going through in the audit presentation. ❖ Page 8Statement of Fiduciary Net Position - this is going to show what the net position was as of September 30, 2017. The total net position restricted for pensions increased in 2017 $25,162,888 from 2016 $23,683,755. ❖ Page 9 shows the statement of changes in fiduciary net position and how they arrived at this figure ❖ Addition of deductions that came into the plan. ❖ Total Contributions were up slightly 2017 $1,749,732 and 2016 $1,702,141 ❖ The plans assets are the results of the investments. ❖ Net Investment Income was up for 2017 $2,437,040 compared to 2016 $1,717,354 ❖ Total Additions went up in 2017 $4,186,772 and 2016 $3,419,495  City of Wilton Manors GE & Police Pension Board of Trustees Minutes Paqe 3 of 5 March 6. 2018 ❖ Administrative Expenses went up slightly and on page 20 shows a schedule of these fees. In 2017 $104,068 and in 2016 $95,119 this was primarily due to Actuarial fees because of the extra actuarial work required and the other was Trustee Expenses and was because of schooling for Chair Kroon & Trustee Chadwick and the certification of two new Trustees to the Board. ❖ Total Deductions went down 2017 $2,707,639 and 2016 $2,801,284 ❖ Page 17 - this page is actuarial information which can be explained better by our actuary. Plan fiduciary net position as a percentage of the total pension liability 65.77% ❖ Funded percentage they have about 20. 65.77% is the lowest percentage and they have three (3) Plans that are fully funded. Over time ours should improve. This is a discussion to have with the actuary. ❖ The actuary is using 7% as Investment rate of return and that is more conservative than FRS which is at 7.5% <* The disclosures are nothing really new in this year's report like we had last year. Mr. Leventhal said they received full cooperation from everyone and no significant adjustments that they needed to make or nor did they find any material weaknesses or significant deficiencies in the internal control. No further comments to the Board for further recommendations for improving the internal control. There was a brief discussion about the Representation letter that also will need to be signed and approved also. Trustee Bihus made the motion to approve the Financial Statements as presented, seconded by Trustee Pilch. Approved Unanimously Trustee Bihus made the motion to approve the Chair to sign the Representation Letter after Counsel has the opportunity to look it over, seconded by Trustee Pilch. Approved Unanimously VIII. Other Business 1. Southeastern Advisory Services Fourth Quarter - December 31, 2017 John Small was present to go over the 4"^ quarter performance with the Board. ❖ S &P had a great 4"^ quarter 6.6%, 1 year 21.8%, 3 year 11.4% ❖ The EAFE Index good quarter 4.2% for the quarter, 1 year 25.0% and 7.8% for 3 year ❖ Barclays U.S. Aggregate 0.4% for the quarter, 1 year 3.5% and 3 year 2.2% »:♦ 91 Day Treasury Bills 0.3% for the quarter, 1 year 0.9% and 3 year 0.4% ❖ CPI -0.1% for the quarter, 1 year 2.1% and 3 year 1.6%  City ofWilton Manors GE &Police Pension Board of Trustees Minutes Pace 4 of 5 March 6. 2018 Portfolio Growth ❖ All of our funds had a positive quarter ❖ Quarter gain $1,181,472 - $28,944,081 for the quarter ending 12/31/17 Performance Comparison Total Fund Analysis 4'^ quarter 4.3%/14'^ - 1year 13.4%/75''' - 3 year 4.9%/92"<' - 5 year 7.7%/84"^ Equity Analysis 4'^ Quarter ❖ Vanguard Russell 1000 6.6%/72"^ for the quarter ❖ Vanguard Mid Cap Value 6.1 %/30'^ for the quarter ❖ Eaton Vance SMID Cap 9.0%1®' for the quarter ❖ Garcia Hamilton-Fixed 0.1 %/42"'^ forthe quarter ❖ Vanguard Ultra Short Bond 0.2%/17^^ forthe quarter Allocation of Assets for the Quarter Ending December 31, 2017 ❖ Equity 64.1% - International 0.0% - Fixed Income 28.1% - Cash 7.8% Oyerall Median for the Period Ending 12/31/17 ❖ Equity 35.5% - International 12.6% - Fixed Income 34.0% - Cash 1.6% Objectiyes and Policy Reyiew The total rate of return should equal or exceed the Consumer Price Index plus 5% over a rolling three-year period. Not Achieved 4.9% The total rate of return should rank in the top half of the Wilshire Cooperative Public Fund Universe over a rolling three year period. Not Achieved 92"" Each security class to exceed the appropriate selected unmanaged market index over a 3 year period ❖ Garcia Hamilton Jackson - Fixed Income - Achieved 2.3% versus 1.8% Percentile rank of manager in appropriate universe must exceed the median (50'^ percentile) *1* GH Fixed Income - Not Achieved 71®' Percentile rand of manager in appropriate universe must place within the top third (33 1/3 percentile) ❖ GH Fixed Income - Not Achieved 42"" Composite: Equity 64.1"/o within range - Fixed Income 28.1% within range -Cash 7.8% within range No violation of policy. No recommendations for any changes. Very happy with this quarter. John Small feels we are in a very good position and very happy were we are. Trustee Pilch made a motion to accept Southeastern Advisory's Report, seconded by Trustee Balistreri - Approved Unanimously  City of Wilton Manors GE & Police Pension Board of Trustees MinntPs Page 5 of 5 March 6. 2018 2. Review Ordinance No. 2018-003 Excused Absence from Meetings Attorney Levlnson said he was happy to see that the City Attorney and the City were willing to understand that for certain boards this ordinance needed to be adopted. 3. Discussion Retiree Joan Kon question to the Board Attorney Levlnson read the e-mail dated February 20, 2018 from Joan Kon. Is health Insurance sub benefit taxable Income or as In FRS Is It excluded from Income to IRS If insurance premiums are deducted from your pension?" sub benefit Is the medical stipend Attorney Levlnson said that In 2006 the tax law was amended to allow Public Safety Officers to deduct from their taxable Income up to $3000 health Insurance that Is being paid by the plan to an insurance company. If Joan Kon Is not a sworn officer she Is not eligible for that $3000 deduction. There was a brief discussion about this and then Attorney Levlnson said he would answer Joan Kon's question e-mail to me (Judy) to e-mail to Joan Kon. 4. Joan Wall, Administrator Nothing to report today. Attorney Report Attorney Levlnson said there are afew Senate Bills In Tallahassee they are monitoring Adjournment Trustee BIhus made the motion to adjourn the meeting, seconded by Trustee Ballstrerl. Respectfully Submitted Judith A. Hoekstra Recording Secretary \