HomeMy WebLinkAbout1998 04 28 Board of Trustees Regular Minutes
MINUTES
BOARD OF TRUSTEES - PENSION PLAN
APRIL 28, 1998 - REGULAR MEETING
I. CALL TO ORDER
The Board of Trustees - Pension Plan Regular Meeting was called to order by Chairman
Jim Ryan, Tuesday, April 28, 1998 at 7:30 p.m. in the Conference Room of the Municipal
Building (City Hall, 1126 East State Road 434, Winter Springs, Florida 32708).
Roll Call
Jim Ryan, Chairman, present
Robert Nippes, Vice Chairman, present
Vernon Rozelle, present
Ron Warble, present
Also Present
John Drago, Administrative Assistant
Peter Hardy, SunTrust Representative
There was brief discussion confirming the resignation of Larry Nadrowski.
Approval of the January 27,1998 Minutes
Board Member Vernon Rozelle asked that the following correction to the January
27, 1998 minutes be noted: On Page 1, line 2 of the last paragraph - labeled 1) -
instead of unfounded, it should read "unfunded" or "underfunded".
Motion by Robert Nippes. Seconded by Ron Warble. It was agreed that with this
revision, the motion to adopt the minutes of January 27, 1998 was carried by
consensus of the Board. Motion passed.
ll. REGULAR AGENDA
A. Review of SunTrust's Financial Statements with an STI
Representative
Mr. Peter Hardy, STI Representative explained that Michael Aloian with STI will most
likely be our representative, and he should be attending our future meetings.
MINUTES
BOARD OF TRUSTEES - PENSION PLAN
APRIL 28, 1998 - REGULAR MEETING
PAGE20F3
"Fantastic quarter" is how Mr. Hardy began his discussion of our financial statement,
saying that "What we've seen in stocks is...a rebound from the concerns of Southeast
Asia...on order from 13% in the large-cap market, phenomenal return - can't continue, but
we're glad to ride the ride; and your diversified account kind of keeps you from.. . from
experiencing the full ride of what the large caps are doing, but it also diversifies you and
reduces your risk" .
He further spoke about the effects and concerns of Southeast Asia; the performance of the
International Markets for this quarter; inflation and possible interest rates adjustments; and
how this has been one of the greatest cycles in history.
Mr. Hardy then explained the performance of the different funds in our portfolio,
specifically saying that "The high grade equity fund is up over 50%; S & P 500 is up over
48%; all your funds... the equity funds have over 30% returns, and the high grade bond
fund has...has about 11...12% return; SO, stocks and bonds continue to do very, very
well".
Regarding the Cash Flow Report, Mr. Hardy stated that "With $253,000 dollars in
contributions, added to your $2.6 million that we started out with, you withdrew $32,000,
and on absolute terms we made a little more for you than you contributed - about
$260,000, leaving you with $3.162 million dollars...so that's...we're...we're getting the plan
up into good numbers. If things continue, contributions continue, this plan will be a $5...
$6 million dollar plan...in not very long of a time".
Mr. Hardy explained to the Board, that the best way to determine how our money is being
managed is by looking at the "Portfolio Characteristics" section (this is usually located in
the upper right hand comer for each fund, under the second tab which lists portfolio
information). He then elaborated on the different characteristics that one should refer to
and evaluate.
Further discussion included progress and problems with other markets; interest rates; the
overall status of the market, and money market funds. Mr. Hardy replied to a question
from the Board about possible changes saying, "I meant to say that for the Attorney - the
allocation is prudent at this time. The reasons that you are more heavily allocated to Small
Mid-Cap is because those stocks are more aggressive... the reasons for being there are still
in... place - there's just been a slight under performance of those asset classes for the.. .large
companies" .
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BOARD OF TRUSTEES - PENSION PLAN
APRIL 28, 1998 - REGULAR MEETING
PAGE 3 OF 3
ill. OTHER DISCUSSION ITEMS
The Board asked when the next meeting will be. (NOTE: The next Regular Meeting is
scheduled for Tuesday, July 28, 1998 at 7:30 p.m.).
Vice-Chairman Robert Nippes asked if the plan is fully operational now? John Drago,
Administrative Assistant to the City Manager replied that the Attorney was working on
some additional forms for the distribution of some monies. In addition, the City is
finalizing a contract with the Actuarial, and as soon as the trust documents have all the
required signatures, then the financial institution will be able designate the trust account
for the Defined Benefit Plan. At that point, the City will make a $135,000 contribution to
that fund - to be followed by a transfer of any monies that have already been collected for
the Defined Benefit Plan. He said that everything should be ready to go before June.
IV. ADJOURNMENT
Chairman Jim Ryan adjourned the meeting at 8: 12 p.m.
Minutes respectfully submitted by: Andrea Lorenzo-Luaces, Deputy City Clerk
City of Winter Springs, Florida
DOCSiboardsltrnsteeslfY9798/minutesl042898.doc