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HomeMy WebLinkAbout2023 08 10 BOT Regular Meeting Minutes CITY OF WINTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING AUGUST 10, 2023 CALL TO ORDER Vice-Chairperson Marco Santoro called the Regular Meeting of Thursday, August 10, 2023, of the Board of Trustees to order at 5:30 pm in the Commission Chambers (City Hall, 1126 East State Road 434, Winter Springs, Florida 32708). Roll Call: Chairperson Greg Smith, absent Vice-Chairperson Marco Santoro, present Board Member Michael Blake, absent Board Member Arif Fareed, present Board Member David Withee, present City Clerk Christian Gowan, present Also present: Mr. Dave West, Senior Consultant, AndCo Consulting, 4901 Vineland Road, Suite 600, Orlando, Florida Ms. Donna Bruno, Interim Director, Finance Department Mr. Brian Dunigan, Director, Operations Department Vice-Chairperson Santoro led the Pledge of Allegiance. AWARDS AND PRESENTATIONS 100. Not Used INFORMATIONAL AGENDA 200. Not Used PUBLIC INPUT Vice-Chairperson Santoro opened Public Input. No one addressed the Board. Vice-Chairperson Santoro closed Public Input. CONSENT AGENDA 300) Approval of the Thursday, May 11, 2023 Board of Trustees Regular Meeting Minutes "MOTION TO APPROVE." MOTION BY VICE-CHAIRPERSON SANTORO. SECONDED BY BOARD MEMBER FAREED. DISCUSSION. VOTE: FAREED (AYE; WITHEE (AYE); SANTORO (AYE) MOTION CARRIED 3-0. CITY OF WINTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING – AUGUST 10, 2023 PAGE 2 OF 3 PLANNING AND ZONING BOARD/LOCAL PLANNING AGENCY REGULAR MEETING | WEDNESDAY, PUBLIC HEARINGS AGENDA 400. Not Used REGULAR AGENDA 500) Quarterly Investment Return Report from AndCo. Consulting Mr. West opened the item and briefly discussed the potential for a rolling recession, the performance of the “Magnificent Seven,” recent inflation numbers, and potential impacts of future Federal Reserve actions. Mr. West then briefly reviewed the “Asset Allocation Flash Report,” highlighted the investment environment over the last quarter, and expanded on numbers for various funds, cash flow, and asset allocation. Mr. West noted the plan was still overweight in domestic equities and discussed changes to the strength of the dollar related to international equities. Discussion followed on risk, bottom line returns, the fact that the City’s plan was outperforming other public plans, and the cash needs of the City. Ms. Bruno commented on increasing disbursements and dedicated money in the budget to address any shortages in disbursement funds from the plan. Further discussion followed on priority sources of cash and Mr. West suggested that he felt comfortable recommending moving $500,000.00 out of the Vanguard Short Term Index Fund and transfer the proceeds to Receipts and Disbursements to cover any plan needs. Discussion followed on seasonality of cash flow, any tracking of anticipated retirements, and the ability to project impacts that would result from retirements. "MOTION TO APPROVE FOLLOWING THE RECOMMENDATION OF ANDCO TO REDEEM FIVE- HUNDRED THOUSAND DOLLARS ($500,000.00) FROM THE VANGUARD SHORT TERM BOND INDEX AND TRANSFER TO RECEIPTS AND DISBURSEMENTS TO ADDRESS PLAN NEEDS AND AUTHORIZE CITY MANAGER TO GO BACK TO FUND AS NEEDED" MOTION BY BOARD MEMBER WITHEE. SECONDED BY BOARD MEMBER FAREED. DISCUSSION. VOTE: FAREED (AYE; WITHEE (AYE); SANTORO (AYE) MOTION CARRIED 3-0. 501) Consideration of Winter Springs Investment Policy Statement to Address Compliance with House Bill 3 (HB 3) Mr. West noted the recommended changes to the Investment Policy Statement were a product of leading pension attorneys and would bring the document into compliance with recently changed statutory requirements. Mr. West briefly reviewed House Bill 3 language requiring pecuniary investments, limited to considerations of total return or managing risk and noted that this wouldn’t change anything that the plan or AndCo were currently doing. Mr. West explained that good corporate governance was still allowed to be considered, commented that AndCo was awaiting the State to publish specific reporting requirements, and noted AndCo’s responsibility for ensuring that investment managers were conforming to requirements. "MOTION TO RECOMMEND THE CITY COMMISSION ADOPT THE REVISED INVESTMENT POLICY STATEMENT." MOTION BY BOARD MEMBER WITHEE. SECONDED BY VICE-CHAIRPERSON SANTORO. DISCUSSION. CITY OF WINTER SPRINGS,FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING-AUGUST 10,2023 PAGE 3OF3 VOTE: FAREED (AYE;WITHEE (AYE); SANTORO (AYE) MOTION CARRIED 3-0. 502) Winter Springs Defined Benefit Plan Experience Study Following a brief discussion on actuarial assumptions, Ms. Bruno suggested Staff did not currently have the bandwidth to conduct the study and noted that it was typically done by the actuary. Ms. Bruno noted that the actuary had provided a proposed scope and associated cost for the Board's review and recommendation. Mr.West noted that a projection on cash flow would be useful and recommended the Board consider asking for this to be included in the study. "MOTION TO APPROVE, PURSUANT TO MEETING IN MAY, RECOMMENDING THE CITY TO PROCEED WITH ENGAGING GABRIEL, ROEDER,SMITH &COMPANY(GRS)TO REVIEW ACTUARIAL ASSUMPTIONS FOR THE DOLLAR AMOUNT IN THE AGREEMENT($12,123.00)WITH ASK THAT THEY ADD A PROJECTION ON CASH FLOW." MOTION BY BOARD MEMBER WITHEE. SECONDED BY VICE-CHAIRPERSON SANTORO. DISCUSSION. VOTE: FAREED (AYE;WITHEE (AYE); SANTORO (AYE) MOTION CARRIED 3-0. REPORTS No reports PUBLIC INPUT Vice-Chairperson Santoro opened Public Input. No one addressed the Board. Vice-Chairperson Santoro closed Public Input. ADJOURNMENT Chairperson Smith adjourned the Regular Meeting at 6:41 p.m. • • • '`��� ;. `'d J � RESPECTFULLYSUBMITTED: CHRISTIAN D. GOWAN, MPA y. '• �b � CITY CLERK ,SE�AIN4`1' NOTE: These Minutes were approved at the November 09,2023 Board of Trustees Regular Meeting.