09-14-2022d' GtynfClermont
CLERMONT Retirement Plan and Trustfor the Police o U Ls d D
1 DRAFT Quarterly Meeting Minu NN 8 0 2022
September 14, 2022
By
1. Scott Tufts called the meeting of the Retirement Plan and Trust for the Police Officers Board of
Trustees to order at 9:15 AM, September 14, 2022 in Council Chambers at the Clermont City Hall He
called roll, there was a quorum Those persons present included:
TRUSTEES
OTHERS
Scott Tufts
Scott Baur & Kyle Tntle, Administrator, Resource Centers
Ross Hutto
Bonnl Jensen, Attorney, Klausner Kaufman Jensen & Levinson
Jason Sayre
Larry Cole, Investment Consultant, BCA (Electronically)
Chris Martin
Chuck Carr, Actuary Southern Actuary Services
Nadine Ohlinger, Pam Bronski, Nancy Zucardi, City of Clermont
2. Extraordinary(E)ugent) Circumstances for Trustees Joining Electronically
There were no Trustees Joining the meeting electronically.
Scott Tufts will be stepping down from the Board and his position as Chair. Jason Sayre noted that Scott
Tufts has been serving on the Board since 2005 Scott Tufts opened the floor for nominations for Chair
and Secretary. The Resource Centers will begin an election for the open seat on the board effective next
meetmg.
Scott Tuffs nominated Chris Martin as Chair. Jason Sayre seconded the motion. The motion was approved
by the Trustees, 4-0.
Chris Martin nominated Jason Sayre as Secretary. Ross Hutto seconded the motion. The motion was
approved by the Trustees, 4-0.
A discussion of the upcoming educational opportunities for the Trustees was held. The Division of
Management Services (DMS) has scheduled the W Annual Police Officers' & Firefighters' Pension
Conference on December 13 through 15. The FPPTA 2023 Winter Trustee School is scheduled for January
29 to February 1, 2023, at the Rosen Center Orlando. Jason Sayre and Chns Martin are interested in
attendingthe DMSconference.
The Trustees reviewed the Minutes from the May 25, 2022 meeting.
Ross Hutto made a motion approve the Minutes for May 25, 2022. Scott Tufts seconded the motion. The
motion was approved by the Trustees, 4-0.
3. Reports
a) Chuck Carr, Actuary (Southern Actuary Services)
Mr Carr reviewed the October 1, 2022 Actuarial Valuation for the Retirement Plan and Trust for the
Police Officers' of the City of Clermont. The assumed rate of return is 7.00%, the market value return was
20.89%, and the actuarial value of return was 20.50%, a tremendous return posted for the fiscal year
6-
CLER WONT
City of Clermont
Retirement Plan and Trust for the Police Officers
DRAFT Quarterly Meeting Minutes
September 14, 2022
The City's contribution is 9.58% for the 2021/22 plan year versus 18.52% for the previous fiscal year
2020/21. Assuming the level of Chapter 185 premium tax receipts; nearly cutting the City's contribution
in half. The resulting reduction is from the +20% gain on investments. The reported 11.26% reported
payroll is down from 18.52% last year. The funded ratio increased to 1S4.67% as of September 30, 2021.
All of the current contributions result from the 10.87% normal cost of benefits plus administration
expenses. All of those contributions now fund future benefit accruals. Mr. Carr estimates the returns are
-9.00% or-10.00% as of September 13, 2022 for fiscal year end (FYE). He stated in this case the plan can
withstand the losses. Mr. Carr raised another matter of business, the Board needs an official motion to
accept the actuarial valuation as presented, once approved, his office has 60 day to file the report with
the State. He will submit all of the required reports and disclosures for the plan. The Board last lowered
the assumption rate to 7.00% from 7.50% in 2018.
Chris Martin made a motion to accept the Actuarial Valuation for October 1, 2022. Jason Sayre seconded
the motion. The motion was approved by the Trustees, 4-0.
Ms. Jensen advised the Board must accept the 7% assumed rate of return.
Chris Martin made a motion, based on the advice of the actuary and the investment consultant, the
expected rate of return for the short term, midterm, and the long term thereafter at 7%. The motion
received a second from Jason Sayre, approved by the Trustees 4-0.
The Board received the annual benefit statements for members. Ms. Ohlinger will distribute the
statements to the members. Jason Sayer raised a question about changes to the benefit similar to
changes requested, 70% at 20 years up from current 3% multiplier. If a member does not retire of DROP
the multiplier begins to decrease thereafter. If a member goes beyond 20 years, the member continues
to earn a 3% multiplier. Members must have a 2.75% minimum accrual per Ms. Jensen. The Firefighters
do not have such a provision. The Police want a 20 years at 20% rather than 22 years at 73%, otherwise
mirror the Firefighters' plan, retro to all years of service. Mr. Carr can cost now as of October 1, 2021 or
wait for the data updates.
All active members even those already with 20 years of service would receive the increase. Mr. Carr will
value as of October 1, 2021. Ross Hutto said his officers has a 20 and out but members cannot draw until
the age of 50. The pension plan is a strong recruiting tool for the City of Clermont. Ms. Jenson noted the
union is ready to speak to the City. Jason Sayer proposed a study, costing between $500 and 51,000, to
be presented at the next quarterly meeting. Mr. Carr thinks it can be produced within 2 months' time.
Jason Sayer said the union needs a copy of the study when it is produced.
Mark Vitek joined the meeting electronically at 9:48 AM. Ms. Jensen advised having a motion for Mark
Vitek to join the meeting remotely.
Chris Martin made a motion approve the Mark Vitek joining the meeting remotely. Ross Hutto seconded
the motion. The motion was approved by the Trustees, 4-0.
CLER ONT
City of Clermont
Retirement Plan and Trust for the Police Officers
DRAFT Quarterly Meeting Minutes
September 14, 2022
Jason Sayer made a motion approve the cost study on buyback not to cost more than $1,000. Ross Hutto
seconded the motion. The motion was approved by the Trustees, 5-0.
b) Larry Cole, Investment Consultant (Burgess Chambers Associates)
Mr. Cole said the quarterly investment report is outdated due to the meeting being rescheduled. He
reported on the markets as of June 30, 2022. All of the main assets categories returns were lower.
Stocks had their worst 6 months since 1970 and bonds had the worse 6 months on record. The supply
chain issues seem to be lessening. Mr. Cole said this morning had a better Producer Price Index (PPI) at
8.7% which should eventually help lower or stabilize the Consumer Price Index (CPI). Inflation remains
high.
Mr. Cole reviewed the assets which remain in compliance with the policy. Asset allocation is in line with
the policy as well. The quarter to date is still positive, about 3% as of September 131h. The plan has an
overweight to equites. A request will be made to have the representative from Polen Capital attend the
November 2022 meeting. The plan finished the June 30, 2022 quarter with 5 26,773,371 in assets. The
portfolio returned -11.3% for the quay er compared to -10.2 for the benchmark. The 5-year average
assumed gain of 6.9% ranked in the top 36%. Only real estate assets had gains for the quarter. Mr. Cole
reviewed the individual manager's performance. He recommended moving $1 million from Fidelity US
Bonds to Fidelity Short Term. Mr. Cole predicts the Fed will ,likely raise rates 0.75% with continued
increases thereafter. lie briefly reviewed the historical performance over time of the plan which ranks in
the top 25% and top 50% all of the time.
Chris Martin made a motion, based on the recommendation of the investment monitor, to rebalance $1
million from Fidelity U.S. Bonds to Fidelity Short -Term Bond Index. Ross Hutto seconded the motion. The
motion was approved by the Trustees, 5-0.
Ross Hutto made a motion authorize the Investment Consultant Chuck Carr to rebalance up to $3 million in
between meetings. Mark Vitek seconded the motion. The motion was approved by the Trustees, 5-0.
c) Bonni Jenson, Attorney Report (Klausner Kaufman Jensen & Levinson)
Ms. Jensen reported she provided a proposed ordinance to correct the definition of salary related to the
415 limits. Ms- Bronski asked about the fiscal year end rather than calendar year on limits. It would
change the tracking of the 300 hours of overtime from calendar to fiscal. Right now the City does
calendar year then preliminary repot!ng on a fiscal period. Ms. Jensen suggested this impacts the
member more than the pension. It was requested to table this discussion to the next meeting,
Ross Hutto made a motion authorize the Investment Consultant Chuck Carr to rebalance up to $3 million in
between meetings. Mark Vitek seconded the motion. The motion was approved by the Trustees, 5-0.
Ms. Jensen provided an update on Jeremy Kevitt's charges. This case is Chris Martin said the State hopes
to reach an agreement this year. She presented a memo listing the increased IRS mileage rate to 62.5
cents as of July 1, 2022. Ms. Jensen provided the 2023 proposed quarterly meeting dates. Jason Sayer
S- City of Clermont
CLERWONT Retirement Plan and Trust for the Police Officers
;.11.1 . DRAFT Quarterly Meeting Minutes
September 14, 2022
suggested moving the November meeting to November 29`h rather than the 22n6, as that is the week of
Thanksgiving 2023.
Jason Sayre made a motion to adjust the November 2023 meeting to November 29 h and approved the
proposed meeting dates for 2023 as amended. Ross Hutto seconded the motion. The motion was
approved by the Trustees, 5-0.
Ross Hutto informed the Board he will be on vacation the week of November 301h and not be at the next
quarterly meeting.
aj Scott Baur, Administrator Report (Resource Centers)
Mr. Baur informed the Board that the annual report had been approved. He reported on the shortfall of
contributions. Mr. Baur explained the Chapter 185 premium tax receipts is due members. The City
contributions allocated 185 money is not in the fiscal year. Ms. Jensen said the plan has the prior years'
185 Chapter money as an overlap of funds. Mr. Carr noted this is not really an issue as it is not material
due to the small amount of dollars involved. He explained the receivables are at the City if they would
like to make up the shortfall. The accounting has no material impact on the plan. The state contact the
Actuary to verify the money is coming to the plan. Mr. Baur does not think this is an issue he just was
informing the Board.
Mr. Baur presented the audit engagement letter from Cherry Bekaert. He will send requests to the City
to coordinate any data requests from the Actuary. Ms. Jensen commented the auditor may be testing
the information from Mr. Baur as it is the first year they are auditing the information.
Jason Sayre made a motion to approve the Audit Engagement letter dated July 13, 2022. Ross Hutto
seconded the motion. The motion was approved by the Trustees, 5-0.
Mr. Baur informed the Trustees of the upcoming FPPTA Trustee School scheduled for October 2"d to 51h in
Orlando. Another educational opportunity is the Department of Management Services 51" Annual Police
and Firefighters' Pension Conference, scheduled for September 26`h to 28'h, 2022 in Orlando.
4. Benefit Approvals
Mr. Baur presented the Benefit Approvals for February 23 and May 25, 2022 for the Board to review.
Jason Sayre made a motion to approve the Benefit Approvals for August 24, 2022 for Brenda Teets, David
Johnson, Lauren Weilons, Darrell Demastus, and Elijah Wells. Ross Hutto seconded the motion. The
motion was approved by the Trustees, 5-0.
S. Plan Financials
The Trustees received the interim financial statement for July 31, 2022. The Warrants for August 24,
2022 were reviewed by the Trustees.
6' City of Clermont
CLERMONT Retirement Plan and Trustfor the Police Officers
DRAFT Quarterly Meeting Minutes
September 14, 2022
Chris Martin made a motion to approve the Warrants dated August 24, 2022. Ross Hutto seconded the
motion. The motion was approved by the Trustees, 5-0.
6. other Business
There was no other business.
7. Public Comment
There was no public comment.
8. The next pension board meeting will be Wednesday, November 30, 2022 at 9:00 AM.
Chris Martin made a motion to adjourn the quarterly meeting. Scott Tufts seconded the motion. The
motion was approved by the Trustees, 5-0.
9. Jason Sayer called the meeting adjourned at 10:59 AM.
Cha6
Secretary �t
Date I /3Ci Ia0 �.r7.