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City of Clermont
Retirement Plan and Trust for the Police Officers
DRAFT Minutes: Workshop
February 23, 2022
1. Jason Sayre called the meeting of the Retirement Plan and Trust for the Police Officers Board of
Trustees to order at 9:20 AM, February 23, 2022 in Council Chambers at the Clermont City Hall. Kyle
Tintle called roll, as there was not a quorum, the meeting became a workshop. Those persons present
included:
TRUSTEES
Scott Tufts, Chair (Electronically)
G. Ross Hutto (Electronically)
Jason Sayre
Mark Vitek (Electronically)
Chris Martin
OTHERS
Kyle Tintle, Administrator, Resource Centers
Bonni Jensen, Attorney, Klausner Kaufman Jensen & Levinson
Pam Brosonski, Finance Director (Electronically)
Mitchell Brennan, Investment Consultant, BCA
2. Reports
a) Mitchell Brennan, Investment Consultant (Burgess Chambers Associates)
Mr. Brennan presented the investment report for the quarter ending on December 31, 2021. He
reviewed the quarter's economic environment the market was down 10% from an all-time high. The Fed
is expected to raise interest rates to help slow down the flow of money. They announced they will be
tapering off the bond repurchasing plan. Ms. Jensen said this could be good for the pension plan with
higher rate of returns for fixed income. The Plan earned $917,000 (3.1% gross and 3.0% net) behind the
target index (5.1%), the one-year returns down below the benchmark (11.6% versus 14.2%). The
beginning market value was $30,778,943 and the ending market value was $31,175232, a gain of
$917,012 (3.0% versus the target index of 5.1%). The one and five year numbers showed gains of
$3,200,166 and $7,627,679 respectively. Mr. Brennan reviewed the current asset allocation and he does
not recommend a rebalancing at this time. He noted the domestic equity was slightly overweight, which
could come down due to volatility in the market and the fixed income was slightly underweight. The
market trend is shifting from growth to value as growth has underperformed in the current quarter. Two
funds with less than favorable results this quarter were iShares Convertible Bond (EFT) and Am Funds
EuroPacific Growth R6 (MF). Both funds outperformed the policy 2 years ago 26.8% versus 25.5% and
13.8% compared to 9.7%. The private real estate fund PREDEX fund has beaten the benchmark for the
quarter at 8.5% vs. 8.0%; the one year return 23.2% compared to the ranking 22.2%; 2 year 11.9% and
the NCREIF fund Index — ODCE (VW) was at 11.2%. The PREDEX real estate fund was the top performer
for the quarter. Mr. Brennan reported the investment policy requirements where met. Investing in TA
Reality will be an additional hedge against inflation. TA Realty will give a 30 day notice for the capital call
which is expected during the 2"d quarter of the year, possibly in June. Investing $1,000,000 million or
$1,500,000 approximately 10% in TA real estate will be a good addition to the PREDEX real estate fund.
TA is a fairly new portfolio which holds space for ecommerce warehouse space and industrial real estate
space. Adding TA Reality to the portfolio will be a big benefit for the long term as an alternative to fixed
income and the capital call is expected in the 2nd quarter.
City of Clermont
CLER On, Retirement Plan and Trust for the Police Off
T DRAFT Minutes: Workshop
Choke of Champions
February 23, 2022
c) Attorney Report (Bonni Jensen, (Klausner Kaufman Jensen & Levinson)
Ms. Jensen presented an updated Special Tax Notice which reflected the IRS changes, including the new
required minimum distribution at age 72 versus 70 %:. As of January 1, 2020 if you have not attained the
age of 70 % by December 31, 2021 you may wait until age 72 to begin taking the required minimum
distribution. Ms. Jensen reviewed the side letter for the contract with TA Reality, discussion the various
options included with the contract.
Ms. Jensen informed the Board of a retirement calculation anomaly which came to light during a
retirement calculation for a Clermont Firefighter. She informed the Board the interpretation of the law
put a cap upon the earnings when it was looked at with the payout when it is from a short year. The
entire fiscal year needs to be looked at when there is a short year from changing from a calendar year to
a fiscal year, the employees' income needs to be prorated. Ms. Jensen will provide an amendment to
clarify the law which is not intended to cap the earnings that will have a perverse impact to the member.
a. Administrator Report
Ms. Tintle followed up with the City on the update of the audit process. She asked Pam Bronski if there
were any pending items. Ms. Bronski informed her that items had been uploaded, including the buybacks
from finance. The only pending item is the 2021 payroll, which is being worked on. Ms. Tintle informed
the board that Mr. Edmonson has been paid his pending amount.
b. Plan Financials
Ms. Tintle informed the Board the items for approval will be included in the next quarterly meeting as the
meeting is a workshop. The Trustees received the interim financial statement for December 31, 2021.
7.Other Business
There was no other business.
8. Public Comment
There was no public comment.
9. The next pension board meeting will be Wednesday, May 25, 2022 at 9:00 AM.
10. Jason Sayer called the meeting adjourned at 10:02 AM.
Chair
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