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HomeMy WebLinkAbout2004 05 26 Board of Trustees Regular Minutes CITY OF WINTER SPRlNGS MINUTES BOARD OF TRUSTEES - PENSION PLAN REGULAR MEETING MA Y 26, 2004 (POSTPONED FROM APRIL 27,2004) I. CALL TO ORDER The Board of Trustees - Pension Plan Regular Meeting was called to order by Chairman Robert Nippes on Tuesday, May 26, 2004 at 7:30 p.m. (Postponed from April 27, 2004) in the West Conference Room of the Municipal Building (City Hall, 1126 East State Road 434, Winter Springs, Florida 32708). Roll Call: Chairman Robert Nippes, present Vice Chairman Vernon Rozelle, absent Board Member Vincent Giannoni, present Board Member Mark Queen, present Board Member Tim Pesut, absent Chairman Nippes led the Pledge of Allegiance. Discussion ensued with City Manager Ronald W. McLemore and Ms. Michelle Greco, Director, Finance Department. II. CONSENT AGENDA CONSENT A. Approval Of The July 29, 2003 Regular Meeting Minutes. "I MOVE THAT WE APPROVE THEM AS WRITTEN." MOTION BY BOARD MEMBER QUEEN. SECONDED BY BOARD MEMBER GIANNONI. DISCUSSION. WITH CONSENSUS OF THE BOARD THE MOTION WAS APPROVED. MOTION CARRIED. CITY OF WINTER SPRINGS MINUTES BOARD OF TRUSTEES REGULAR MEETING - MAY 26, 2004 (POSTPONED FROM APRIL 27, 2004) PAGE20F4 III. REGULAR AGENDA REGULAR A. Review Of Trusco Capital Management Financial Statements. Mr. Blake My ton, Investment Officer, CCM, Trusco Capital Management, 300 South Orange Avenue, Suite 1600, Orlando, Florida: introduced himself to the Board of Trustees, then summarized the performance of the City's Portfolio over the last quarter. Discussion. Mr. Myton stated, "We [City' s Portfolio] were up 3.31 for the ninety (90) days ending March 1st [2004] which left us up over thirteen percent (13%) for the six (6) months, longer term numbers. The one (1) year we are up over twenty-seven percent (27%)." Mr. Myton also stated, "But, the ten (10) year and the longer term number - what I would consider historically normal returns for allocation in the ten and one-half (10 Y2) to ten percent (10%) range." Further discussion ensued regarding investments for the next quarter. REGULAR B. Election Of Officers. Discussion ensued regarding not having an Election of Officers. Tape l/Side B "MOTION TO DEFER THE ELECTION." MOTION BY BOARD MEMBER QUEEN. SECONDED BY BOARD MEMBER GIANNONI. WITH CONSENSUS OF THE BOARD THE MOTION WAS APPROVED. MOTION CARRIED. IV. FUTURE AGENDA ITEMS Not discussed. V. REPORTS Manager McLemore formally introduced Ms. Greco as the Finance Director for the City of Winter Springs. CITY OF WINTER SPRINGS MINUTES BOARD OF TRUSTEES REGULAR MEETING - MA Y 26, 2004 (POSTPONED FROM APRIL 27, 2004) PAGE30F4 Manager McLemore presented two (2) initiatives on the Retirement System that will be brought before the City Commission. With discussion regarding the benefit strategy that would be presented to the City Commission, Manager McLemore stated, "Going backwards and taking that two percent (2%) benefit retro and increasing that [benefit] to three percent (3%) which has always been a part of our strategy, we just could not afford it before.',' Manager McLemore also stated, "Our latest report - demonstrates that an extra two percent (2%) contribution would - fund that extra one percent (I %) backwards." Furthermore, Manager McLemore, "We are trying to equalize that now so - the older employees would have that three percent (3%) benefit also." "Our policy was to do it at a point in time that it made economic sense. This year, in my discussion with the Union and my discussion with the [City] Commission, I am bringing that back to them [City Commission] for a policy determination to do that in this coming fiscal year," stated Manager McLemore. In addition, Manager McLemore stated, "Most of the - older employees are happy about it. The younger employees may not be - happy about it because the way we intend to recommend to fund this is by reducing our Merit system down to two (2) years from four percent (4%) to two percent (2%). Basically, the older employees are saying, we are willing to take the cut in salaries and merit increases to get that extra one percent (l %) restored. So, that is the way I will take to the [City] Commission that would not represent any new cost to the tax payers in order to fund that." Chairman Nippes asked, "What is the percentage of 'old' versus 'new' employees?" Manager McLemore stated, "It is about sixty (60) and forty (40). Probably the older group is the small group. Mainly, because we have so many new people coming in and out of 'Public Safety' and you know we expanded our numbers of employees. We have a lot of new people, particularly in the Fire Department and we have a lot of turnovers." Manager McLemore stated, "The other piece of that too that I am bringing to the [City] Commission to review is we have lost ground to some degree because of market conditions and earnings - during the decline in the stock market. Our amortization rate of unfunded past service and liability, when we initiated this plan, was fifteen (15) years. That was the goal - to - try to go lower than fifteen (15) and gradually as a goal - move toward a totally funded plan." Furthermore, Manager McLemore also stated, "I want to recommend to the [City] Commission this year that we try to do another two percent (2%) over two (2) years to get us back to fifteen (IS) years in case we do have some unusual downturn." In summary, Manager McLemore stated, "In the future, that we are not automatically compelled immediately to raise contribution rates because we are by Statute required to keep this 'Plan' within normal standards. I wanted to advise you of what we will be doing. I can send you the information, actual studies - if you want to see it." CITY OF WINTER SPRINGS MINUTES BOARD OF TRUSTEES REGULAR MEETING - MA Y 26, 2004 (POSTPONED FROM APRIL 27, 2004) PAGE40F4 VI. ADJOURNMENT "I MOVE THAT WE ADJOURN." MOTION BY BOARD MEMBER QUEEN. SECONDED. DISCUSSION. WITH CONSENSUS OF THE BOARD THE MOTION WAS APPROVED. MOTION CARRIED. With consensus of the Board, Chairman Nippes adjourned the Meeting at 8:30 p.m. RESPECTFULLY SUBMITTED: ~~ DEBBIE FRANKLIN DEPUTY CITY CLERK NOTE: These Minutes were approved at the October 26 .2004 Board of Trustees (Pension Plan) Meeting.