Pension Board of Trustees

The City nf Wilton 1'\'lanor.s' Genera) Employee & Police .Pension .Board Meeting will be conducting a "Hybrid" Pension Me-eting i11 the City Commission Chambers vith limited public access and utilizing communications media technology ("CN.IT") for additional public access, in accordance with City -of Wilton l.Vlanors Ordinance No. 2020-11, and City of Wilton Manors .Emergency Order 2021-01. AGENDA City of Wilton Manors Hybrid General Employee & Police Pension Meeting Tuesday December 7, 2021 at 5:30 pm. 'I . PLEDGE OF ALLIGENCE 2. CALL TO ORDER 3. ROLLCALL 4. A DDITIONS/DELETIONS 5. COMMENTS FROM THE PUB IC Any member of the Public may speak on any issue for three (3) minutes 6. CONSENT AGENDA Items listed under Consent Agenda, Item VI, are viewed to be routine and One Motion will enact the recommendation in the form listed below. If discussion is desired, then the items(s) will be removed from the Consent Agenda and will be considered separately. Approval of Minutes: September 7, 2021 Hybrid Pension Meeting Motion t o Receive and File: Warrant 2021-026 Klausner, Kaufmann, Jensen & Levinson 8/31/2021 Invoice $875.00 Warrant 2021-027 Judith A. Hoekstra September ?' Invoice $825.00 Warrant 2021-028 • Gabriel, Roeder, Smith & Co., Invoice #464356 $6,790.00 • FPPTA Invoice #5163 & #5164 $1,650.00 Warrant 2021-029 • Trustees Balistrri & Pilch and Hoekstra per diem $660.00 Warrant 2021-030 • Southeastern Advisory Services quarter ending 9/30/2021 $4,885.25 • KISDT, CPA Invoice #106011 $500.00 Warrant 2021-031 • Klausner, Kaufmann, Jensen & Levinson 9/30/2021 Invoice $1,500.00 Warrant 2021-032 • Judith Hoekstra - reimburse expenses FPPTA School $943.82 Warrant 2021-033 • Garcia, Hamilton & Associates lnv. #34457 10-1-2021 $5,250.28 FPPTA Invoice #5551 2022 membership renewal $750.00 Invoice #5552 2021 & 2022 CPPT Re-Certification $310.00 Warrant 2021-034 Gabriel, Roeder, Smith & Co., Invoice #465970 $2,000.00 FPPTA lnv#5724 Registration for Winter School Trustee Mays $850.00 Klausner, Kaufman, Jensen & Levinson 10/31/2021 0  .A.GENDA December i, 202·1 3'd Quarter 2021 Rate of Return is -0.1 9% Jet of Fees October 6, 2021 GRS- GASB No. 68 Disclosure Information for Reporting Year Ending September 30, 2021 Independent Contractor Signed Agreement for Bookkeeping Services Saxena White Third Quarter 2021 Monitoring Report 7. NEW BUSiNESS • Garcia Hamilton 3rd quarter Portfolio 9/30/2021 • Southeastern Advisory Services Quarter Ending September 30, 2021 • Discussion NCPERS Membership • Discussion Current Employees/Board 8. BOOKKEEPING SERVICES • Bookkeeping Contract 9. A TfORNEY REPORT 10. REPORTS FROM BOARD MEMBER 11. ADJOUR JMENT "'The Public may participate in the meef n g in se·•eral ways: 1. Videoconference - the meeting will be hosted online using Zoom. The public may join the meeting online by selecting "join meeting" and entering the meeting number of 91 S 4353 4394 Passcode:719791 Attendees should visit Zoom and test their conn ctions in advance of the meeting. 2. The public may also provide input in advance that will be entered into the record at the beginning of the meeting. Such input must be submitted in writing in ad ance ofthe meeting by email to ~- _ a __ _ _ . If you desire for your written comments to be read into the record during the meeting, please indicate so and limit them to 300 .vords. Wtitten comments in excess of 300 words will be entered into the meeting rec rd and disttibuted to the Board before the start of the meeting. For questions regardin public comment or onnecting to the electronic meeting contact Judith Hoe!·stra, Administrative Assistant, _  Zoom I nformation: Topic: General Employee & Police Pension Board of Trustees Meetings Time: This is a recurring meeting Meet anytime Join Zoom Meeting Meeting ID: 916 4353 4394 Passcode: 719791 One tap mobile +130171 58592,9 1643534394# US (Washington DC) +13 126266799, 91643534394# US (Chicago) Dial by your location +1 30 1715 8592 US (Washington DC) + 1 312 626 6799 US (Chicago) + 1 929 205 6099 US (New York) +1 253 215 8782 US (Tacoma) + 1 346 248 7799 US (Houston) +1 669 900 6833 US (San Jose) 877 853 5247 US Toll-free 888 788 0099 US Toll-free 833 548 0276 US Toll-free 833 548 0282 US Toll-free Meeting ID: 916 4353 4394 Find your local number: -~r~-'-'-'-====~~~-=...:.~:--.=~ City of Wilton Manors Hybrlcl Genera! Employee & Poli- e Page 1 of 5 Pension Board of Trus tees Minutes Septem. er 7, 2021 Pledge of Alligence Call t o Order Chairman Balistreri called the hybrid meeting of the \iVilton Manors GE & Police Pension Board of Trustees to order at 5:30 pm o il Call Present at Meeting Chair Balistreri, Trustees Bob lv ays & George Farrell, Trustee Vodicka joined the meeting via zoom at 5:35 pm. 1 ot Present Trustee John Pilch Others Virtually Present Attorn ey A dam Levinson, Pennie Zuercher, Finance Director Theora Braccialarg he & N elissa Z relack, GRS , John Small, Southeastern Advisory Services Janna Hamilton, & Jeff Detw iler Garcia Hamilton & Associates A dditions /Deletio ns None Comments f rom the Pu blic None Consent Agenda App roval of Min utes: June 15, 2021 Hybrid Pension Minutes Motion t o Receive and ile: Warrant 2021-016 Professional Indemnity Insurance $7,699.00 Warrant 2021 -017 Gabriel Roeder Smith & Co. lnv #4627 40 $11 ,500.00 Judith A. Hoekstra June 15th Invoice $850 .00 Warrant 2021-018 Trustee Bob Mays - per diem FPPTA Conference $220.00 Warrant 2021-01 9 Southeastern Advisory Services quarter ending 6/30/2021 $4,885.25 Klaus ner,Kaufman,Jensen&Levinson June 30th Invoice $1 ,625.00 Warrant 2021-020 Joan Wall, Bookkeeper 2/2/2021-6/30/2021 $2,354.39 Warrant 2021 -021 Trustee Bob Mays reimbu rse expenses FPPTA Co nf $784.36 Warrant 2021-022 FPPTA Invoice #4822 2020 CPPT Re-Certification $1 55.00 Warrant 2021-023 Trustee Brian Vodicka Reimburse Expenses i CPERS Seminar $850.00 Warrant 2021 -024 FPPTA Registration for Fall School Balistreri & Hoekstra $1,650.00 Warrant 2021-025 Garcia Hamilton & Associates Invoice #3400 t: $4,379.56 Klaus ner, Kaufman, Jensren & Levinson 7/31 /2021 0 2"d Quarter 2021 Rate of Return is 4.7% 1 et of Fees Fiduciary Insurance Binder of Insurance Saxena White - Second Quarter 2021 Monitorin_ Report Chairman Balistreri asked for a motion to approve the Consent Agenda. Trust ee Farrell made the motion to approve the Consent genda, seconded y Trustee 1ays. Approved Unanimously City of Wilton Manors Virt1.1al General Employee & Po li e~ Pe sion Board f Tr·1stees Min• tes September 7, 202·! Page 2 of 5 New Business • KSDT -Approval of Engagement Letter for Auditing SeNices There was a brief discussion about the auditing services pr.ovided by KSDT and the Board said that there service is very good. Attorney Levinson said a motion would be in order to approve the Chair to sign the engagement letter. Trustee Farrell made the motion, seconded by Trustee Mays. Approved Unanimously • Garcia Hamilton 2"d Quarter Portfolio 6/30/2021 Janna Hamilton & Jeff Detwiler were present via zoom. Manager of portfolio for18 years - Janna thanked the Board Disappointing quarter and fiscal year 2019 Trade Wars would affect the market It also affected the 3 & 5 years numbers too Page 3 Calendar year Rates of Return- Outperformed 14 out of 18 Time Periods need to do a better job Page 6 Historical Excess Returns When Corporate Spreads are Nan·ow 12 Month Change -Average: 41 bps -12 Month Excess Return -Average: 65 Page 10 Total Returns During COVID-19 Downturn BBB -13.13% High Yield -19.78% Convertibles -20.66% REITs -37.57% S&P 500-30.75% Page 11 Total Returns Durning Financial Crisis (2008) BBB -9.60% High Yield -26.16% Convertibles -34.59% REITs -37.73% S&P 500-36.99% Attorney Levinson asked Garcia Hamilton to talk about the mortgages they are acquiring. These mortgage back securitiies with similar characitics. Jeff explained this to the Board . Fixed lnome Portfolio Characteristics Cash1% Treasuries49% Corporates19% Mortgages3 1% Southeastern Advisory Services Quarter Ending June 30, 2021 John Small was virtually present to go over the 2nd quarter performance with the Board. S&P 500 8.6% for the quarter, one year 40.8%, 3 year 18.7% The EAFE Index 5.2% for the quarter, 32.4% for the one year, 3 year 8.3% BbgBarc U.S. Aggregate 1.8%.for the quarter, -0.3% for the one year, 5.3% 3 year 91 Day Treasury Bills 0.0% for the quarter, 0.1% for one year, 1.3% 3 years CPI 2.6% for the quarter, 5.4% for the one year, 2.5% 3 years Portfolio Growth For the quarter there was a gain $1 ,600,713 Ending Value $34,944,148 for the quarter ending 6/30/21 Perfonnance Comparison Total Fund Analysis 2nd quarter Composite Fund 4.7%/84111 - 1 year 25.9%/68111 -3 years 11.v%/48th- 5 years 11 .0%/55111 Actuarial Return Assumption 1.65% 6.6% 6.6% 6.6% Target Index* 4.8%/78111 28.9%/26th 13.1 %/25th 10.8%/59th City of Wilton Manors Vi tu al General .Employee & Police Pensio n Boa rd of Trllstees Mi utes S~ptembe r 7, 2!121 Page 3 of 5 2"d Quarter Ecluity Analysis Va nguard Russell1000 8.5% - 1 year43.1 % Russell 1000 8.5% - 1 year 43.1% *Vanguard Russe~l1000 1as funded on June 16, 2016 Vanguard Mid Cap Value 4.8% - 1 year 49.9% Russell Mid Cap Index 5.7% - 1 year 53.1% *Vanguard Mid Cap Value was funded on June 14, 2016 Eaton Vance SMID Cap 5.3% - 1 year 42.8% Russell 2500 5.4% - 1 year 57.8% *Eaton Vance SMID Cap was fu nded on June 16, 2016 Fixed Income Analysis Garcia Hamilton Fixed 0.5% - 1 year -0.5% Barclays Int. Gov't/Credit 1.0% - 1 year 0.2% Vanguard Ultra Short Bond 0.2% - 1 year 1.1 % 91 Day Treasury Bill 0.0% - 1 year 0.1% Money Market 0.0% - 1 year 0.0% 91-Day Treasury Bill 0.0% 1year0.1% Al location of Assets for the Quarter Ending June 30, 2021 Equity 68.6%- International 0.0% - Fixed Income 24.7%- Cash 6.7% Objectives and Policy Review The total rate of return should equal or exceed the Consumer Price Index plus 5% over a rolling three-year period Achieved 11.9% Tile total rate of return should rank in the top half of the VVilshire Cooperative Public Fund Universe over a rolling three year period . Achieved 8th Each security class to exceed the appropriate selected unmanaged market index over a rolling three year period . Garcia Hamilton - Fixed - Not Achieved 3.8% Barclay's Int. G/C: . 7% Asset Allocation - Actual versus Policy Equity 60% Within Range 68.6%- Fixed Income 30% Outside Range 24.7%- Cash 10% Within Range 6.7% No violations of policy · Fixed Income Manager Comparison- 2014-2021 John Small went over the fixed income comparison with the Board. Manager YTD 2021 Garcia Hamilton (gross) -1.3% Dodge & Cox Fixed (DODD<) (net) -0.6% Vanguard lnterm-Term Bond Index I (\IBIMX) (net) -1.9% . Western Asset Core Bond (WATFX) (net) -1.8% Index BB lnterm Go 1/Credit -0.9% Cit y of Wi lton Manors Virtual Genera l Employee &. Police Pensio n Soard of T( 1S'L~S MimJtes S~ tem ber 7, 202·1 Page 4 of 5 Trustee Farrell asked John Smail if the fees can all be net of fees, beccJUse Garcia Hamilton is sho ing gross of fees on page 3 and on page 36 it is showing net of fees. There was a brief discussion about this and John Smal agreed to make all net of fees on page 3. sset Allocation 9/30/2021 . John Small said we needed to rebalance $-800 Once this is approved he will notify Regions. Trustee Mays made the motion to rebalance the $-800, seconded by Trustee Farrell Approved Unanimously Discussion of Bookkeeping Services Attorney Levinson said the Board has been discussing this at prior meetings and it is in the best interest for the Plan going forward . The contract has been reviewed and the Board can choose the services that are needed. The one that has been discussed is the bookkeeping services. Theora & Melissa from GRS were on zoom to go over the contract, services & answer any questions the Board may have. Theora said that at the last meeting the Board was focusing on bookkeeping and concerns about the Firefighter's State Report and what other services they provide. There would be a fee for the bookkeeping services and also a separate fee for the State Report. The way they provide the bookkeeping is they have a subcontractor and she has been doing this for a long time and their other clients are very happy with her work. The arrangement that GRS has with her is they like to have each month done by the end of the month following whatever date that was. Trustee Mays asked how they came up with "Exhibit A"? It is basically their standard list of services. Theora said this list of services needs to be reviewed by the Board. There were 13 services on the list number 14 & 15 were strictly for this Board . The Board went over each service listed to determine who will handle these services. Trustee Mays said #4, 5 & 10 need to be researched as to who will take ca re of them. Trustee Farrell said to contact Regions Bank to see if they take care of them. Chairman Balistreri said he could contact them and maybe have someone from the bank attend our next meeting by zoom to go ove the services they offer. These three items may be something they can do for the pens ion plan or are already doing. Attorney Levinson said the State Report for the Firefighter Pension Board will still be prepared by KSDT not GRS. Trustee Mays made a motion to sign the contract with GRS to take over the bookkeeping services, seconded by Trustee Farrell. Approved Unanimously Chairman Balistreri asked Attorney Levinson about a start date and when would Joan Wall's last day be? The new bookkeeping services start date will be October 1, 2021 and Joan Wall will end September 30, 2021, Joan •..viii work with the auditors to answer any questions the auditors may have to prepare the audit Joan Wall, Bookkeepfu •lone Attorn ey Report The State is taking action on COVID shots for firefighter's & police officers, t is does not pertain to this board . Reminder for the Board to fill out their Form 1 Disclosure and mail them to Supervisor of Elections . City of Wilt on Man ors Virtual General Employee & Police Pe. sion Bo ard of Trustees Mim1tes Sep tem ber 7, 202·1 Pag e 5 of 5 Repo rts f rom Board Members The Board reviewed the Proposed Budget for 2022. There was a brief discussion and Trustee Mays said he would make a motion to increase the line item, Bookkeeping from $S,OOO to 10,000 and approve the total budget from $188,500.00 t o $193,500.00, seconded by Trustee Vodicka. Approved Unanimously Adjournment Trustee Farrell made the motion to adjourn, seconded by Trustee Mays Respectfully Submitted , , I (~ Judith A Hoekstra Recording Secretary