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HomeMy WebLinkAbout1999 07 27 Board of Trustees Regular Minutes CITY OF WINTER SPRINGS MINUTES BOARD OF TRUSTEES - PENSION PLAN REGULAR MEETING JULY 27, 1999 I. CALL TO ORDER The Board of Trustees - Pension Plan Regular Meeting was called to order by Chairman Jim Ryan, Tuesday, July 27, 1999 at 7:30 p.m. in the West 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 Ron Warble, present Vernon Rozelle, absent Bill Dickey, absent Also Present Ronald W. McLemore, City Manager Peter Hardy, STI Capital Management Representative Harry Martin, Finance Director Approval of the April 27, 1999 Minutes "I MOVE TO APPROVE THE APRIL 27, 1999 MINUTES." MOTION BY BOARD MEMBER ROBERT NIPPES. SECONDED BY BOARD MEMBER RON WARBLE. DISCUSSION. VOTE: RON WARBLE: AYE; ROBERT NIPPES: AYE; JIM RYAN: AYE. MOTION CARRIED. II. REGULAR AGENDA A. Review of SunTrust's Financial Statements with Mr. Philip Senderowitz, (Client Service Officer with STI Capital Management) Mr. Peter Hardy, in the absence of Mr. Philip Senderowitz, addressed the City's "fantastic quarter". Mr. Hardy explained that the markets broadened out enabling funds to get a good return that had not been doing well; the High Grade Equity Income Fund returned l4% whereas the S&P 500 Index returned 7%; the International Fund is slightly up due the improvement of Japan's economy; and that when the economy becomes "hot" and interest rates go up, the price value of bonds decrease. City Manager Ronald W. McLemore arrived at 7:38 p.m. CITY OF WINTER SPRINGS MINUTES BOARD OF TRUSTEES - PENSION PLAN REGULAR MEETING-JULY 27,1999 PAGE20F2 Mr. Hardy explained that the portfolio value, as of June 30, 1999, was $3,5l8,901.37, which gave the City a return of 6.97% in the last three months; and l8.98% return this fiscal year to date; with the Small Equity fund the City is growing 2% faster than the index. Stock, "as a whole did not do well", the first quarter was the narrowest market he has seen in thirteen years; and now he is seeing the broadest market in eleven years and the City is doing very well because of that. Mr. Hardy added, "Your fine and 1 think you made prudent decisions thus far and the allocations are ok" and "It is prudent because we didn't pick this as a one or two year deal, but rather a four or five year deal. At the end of five years, go back and look at it again. I feel that there is no reason to change it because I think it is just starting to benefit you having this diversification." Discussion followed regarding how employees can be better informed of the portfolio and it's performance in the past; reports for each department; construction of the statement; and a web site. Mr. Hardy stated that he would speak to Mr. Senderowitz concerning a more extensive spreadsheet and additional books. A question was raised as to why there was not an employee representative on the Board. Mr. McLemore explained that the Commission structured the Board and the meetings are open to the public. He further stated that the Commission felt that choosing Board members, independent of the City and possessing some expertise, would be more beneficial than employees managing it themselves. III. OTHER DISCUSSION ITEMS Discussion ensued regarding 3% defining benefit. Mr. McLemore stated that the documents are not ready, but are "close", and when everything is completed, they will be brought before the Board. IV. ADJOURNMENT "WITH NO FURTHER DISCUSSION OR QUESTIONS, I MOVE TO ADJOURN THE MEETING." MOTION BY CHAIRMAN RYAN. SECONDED BY BOARD MEMBER WARBLE. WITH CONSENSUS OF THE BOARD THE MEETING WAS ADJOURNED AT 8:20 P.M. Minutes respectfully submitted by: Debbie Gillespie, City Clerk's Office City of Winter Springs, Florida DOcS/boards/trus teesl al 111m i n utes/O 72 799. doc