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Home My WebLink About2026 05 14 BOT Regular Meeting Minutes BOARD OF TRUSTEES REGULAR MEETING MINUTES MAY 14, 2026 CITY HALL – COMMISSION CHAMBERS CITY OF WINTER SPRINGS, FLORIDA CALL TO ORDER City Clerk Christian Gowan called the Regular Meeting of Thursday, May 14, 2026, 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 Marco Santoro, present Vice-Chairperson Arif Fareed, present Board Member Michael Blake, present via telephone Board Member Brandon Fair, present Board Member Karl Furno, present City Clerk Christian Gowan, present Also present: Mr. Jack Evatt, Director of Institutional Advisory Services, Mariner Ms. Shelly Jones, Consultant, Gabriel, Roeder, Smith & Company Mr. Kevin Sweet, City Manager Ms. Holly Queen, Director, Finance Department Mr. Brian Dunigan, Director, Administrative Services and Operations Department Chair Santoro held a moment of silence and then led the Pledge of Allegiance. No changes were noted for the agenda and the agenda was adopted. AWARDS AND PRESENTATIONS 100. Not Used INFORMATIONAL AGENDA 200. Not Used PUBLIC INPUT Chairperson Santoro opened Public Input. No one addressed the Board. Chairperson Santoro closed Public Input. CONSENT AGENDA 300) Approval of the Thursday, April 9, 2025 Board of Trustees Regular Meeting Minutes No discussion. CITY OF WINTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING – MAY 14, 2026 PAGE 2 OF 4 MOTION TO APPROVE THE MINUTES. MOTION BY BOARD MEMBER FAIR. SECONDED BY VICE CHAIR FAREED. VOTE: BLAKE (AYE); FAIR (AYE); FURNO (AYE); FAREED (AYE); SANTORO (AYE) MOTION CARRIED: 5-0. PUBLIC HEARINGS AGENDA 400. Not Used REGULAR AGENDA 500) Quarterly Investment Return Report and Asset Allocation Analysis from Mariner Investment Advisor Jack Evatt presented the quarterly investment performance review for the period ending March 31, 2026, and an accompanying asset allocation analysis. He noted that much of the quarter-end data had been superseded by subsequent market events, with the fund recovering from a low of $82.8 million at March 31 to approximately $89.9 million as of the day prior to the meeting. Mr. Evatt noted that domestic equity had risen to approximately 56% of the portfolio as of the day prior, exceeding the Investment Policy Statement's maximum target of 55%. He recommended transferring $5,000,000 from the Vanguard Total Stock Market fund to the Galliard Core Fixed Income Fund to return domestic equity weighting to its 50% target. Discussion followed on inflation risk, interest rate uncertainty, and the value of voluntary rebalancing over a market-forced reduction. Mr. Evatt also presented the asset allocation analysis, which modeled five hypothetical portfolio mixes illustrating the effect of various combinations of equity, fixed income, core real estate, direct lending, and bank loans on expected return, standard deviation, and Sharpe ratio. The Board agreed that this was the beginning of a longer discussion regarding investment policy targets and asset class selection, with no motion on allocation changes sought at this meeting. MOTION TO TRANSFER FIVE MILLION DOLLARS ($5,000,000.00) FROM THE VANGUARD TOTAL STOCK MARKET FUND TO THE GALLIARD CORE FIXED INCOME FUND. MOTION BY BOARD MEMBER FAIR. SECONDED BY VICE CHAIR FAREED. DISCUSSION. VOTE: BLAKE (NAY); FAIR (AYE); FURNO (AYE); FAREED (AYE); SANTORO (AYE) MOTION CARRIED: 4-1. 501) GRS Actuarial Valuation Report of the Defined Benefit Plan – October 1, 2025 Actuary Shelly Jones of Gabriel, Roeder, Smith & Company presented the October 1, 2025 actuarial valuation of the defined benefit plan. She reported a strong year overall, with investment returns significantly exceeding the 6.75% assumption, a declining unfunded actuarial accrued liability (from $7.3 million to $5.9 million), and an improved actuarial funded ratio of 92.8% on a smoothed basis. The plan's required minimum contribution decreased to $1,070,408, or 24.7% of payroll, with the city's share at $853,726 (19.7% of payroll)—noted as low relative to peers given the inclusion of sworn officers. CITY OF WINTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING – MAY 14, 2026 PAGE 3 OF 4 Ms. Jones further commented on updates to the mortality assumption pursuant to Florida Statute to align with the Florida Retirement System tables and noted the plan holds $7.6 million in total deferred actuarial gains, providing a buffer in the anticipated volatile fiscal year 2026 environment. Long-term investment performance has outpaced the assumed rate by a substantial margin over three, five, and ten years. Ms. Jones asked that the Board accept the report and noted that, upon approval, GRS would submit the required 140 data items and the valuation report to the State of Florida within the statutory 60-day compliance window. MOTION TO ACCEPT THE GRS ACTUARIAL VALUATION REPORT OF THE DEFINED BENEFIT PLAN AS OD OCTOBER 1, 2025. MOTION BY BOARD MEMBER FAIR. SECONDED BY VICE CHAIR FAREED. DISCUSSION VOTE: BLAKE (AYE); FAIR (AYE); FURNO (AYE); FAREED (AYE); SANTORO (AYE) MOTION CARRIED: 5-0. 502) Updated Actuarial Projection Study as of October 1, 2025 City Manager Kevin Sweet presented the updated actuarial projection study, prepared by GRS, outlining proposed pension plan design changes intended to improve the city's competitiveness with neighboring Seminole County agencies and the Florida Retirement System. He described approximately twelve months of internal analysis and discussions with law enforcement leadership preceding the proposal. City Manager Sweet noted the city's recommended scenario (Scenario 7) combined four individual changes: (1) increasing the maximum accrued benefit cap from 90% to 99% of average final compensation, achieved by extending the accrual period from 30 to 33 years at the existing 3% multiplier; (2) increasing pensionable overtime from 150 to 300 hours annually; (3) adding a normal retirement eligibility provision allowing unreduced retirement upon completion of 30 years of service regardless of age; and (4) establishing a Deferred Retirement Option Program (DROP) with a maximum participation period of 3 years, a 4% fixed annual interest credit, and eligibility at age 55 with 15 years of service or upon normal retirement. City Manager Sweet confirmed that all proposed changes are prospective only and would not retroactively alter any existing benefit for current retirees or active members. It was further noted that the corresponding increase in unfunded actuarial accrued liability under Scenario 7 was approximately $1.4 million, moving from $7.3 million to $8.7 million, while the city's required contribution as a percentage of payroll remained manageable and the city intends to continue budgeting at 30% of payroll in FY27. Board Member Blake advised that the Board of Trustees should exercise care not to endorse or recommend a specific plan design to the City Commission, as benefit design is solely a policy matter within the Commission's authority. He noted that the board's appropriate role is to confirm it has received and understood the proposed changes and that it could administer the trust under any scenario the Commission may adopt. City Manager Sweet concurred with that characterization. Chair Santoro and Board Member Blake both acknowledged the value of the city administration bringing the study before the board for informational purposes. MOTION THAT THE BOARD OF TRUSTEES ACCEPT THE SPECIAL ACTUARIAL PROJECTION STUDY OUTLINING THE COST PROVISIONS WITH RESPECT TO SEVERAL NEW BENEFIT SCENARIOS, AND THAT THE BOARD NOTIFY THE COMMISSION THAT IT WOULD BE ABLE TO SUPPORT AND MANAGE THE TRUST UNDER ANY OF THOSE SCENARIOS THE COMMISSION MAY ELECT TO EMPLOY. MOTION BY