05-25-2022CLER 10NT
chaise d Champions
City of Clermont
Retirement Plan and Trust for the Police Officers
DRAFT Quarterly Meeting Minutes
May 25, 2022
1. Jason Sayre called the meeting of the Retirement Plan and Trust for the Police Officers Board of
Trustees to order at 9:03 AM, May 25, 2022 in Council Chambers at the Clermont City Hall. He called
roll, there was a quorum. Those persons present included:
TRUSTEES OTHERS
G. Ross Hutto Scott Baur & Kyle Tintle, Administrator, Resource Centers
Jason Sayre Bonni Jensen, Attorney, Klausner Kaufman Jensen & Levinson
Mark Vitek Ron Conrad, Cherry Bekaert (Electronically)
Mitchell Brennan, Investment Consultant, BCA
The election of Chair and Secretary will be held over until the August meeting.
The Trustees reviewed the Minutes from the following meetings: December 1, 2021, January 21, 2022
and February 23, 2022.
Mark Vitek made a motion approve the Minutes for 12/1/2021, 1/21/2022, and 02/23/2022. Ross Hutto
seconded the motion. The motion was approved by the Trustees, 3-0.
2. Reports
a) Ron Conrad, Auditor (Cheery Bekaert)
Mr. Conrad presented the September 30, 2021 audit report for the City of Clermont Police Officer's plan.
He reviewed the required communications to issue an audit report today. It was noted this is the first
separate audit for the Police Officer's plan as last year they were part of the City's pension plan. Mr.
Conrad explained the standards and presented a clean, unmodified opinion. The auditor identified no
material weaknesses in controls and no items of reportable noncompliance. Mr. Conrad had no
adjustments or unreported infractions. He reviewed the disclosures, most notably related to
investments. The plan is in strong shape. The plan had net assets of $30,777,502 as of September 30,
2021, up from $24,821,400 in 2020. The investment had excellent results in 2021 to account for the
increase in net assets. Mr. Conrad reviewed the audit report in further detail. He explained the
management discussion and analysis, noting a 24% market return on investment assets. The plan is 121%
funded at market value of assets. Mr. Conrad reviewed the GASB requirements and the audit notes. The
plan did not have any deficiencies in contributions in 2021. The administrative and investment expenses
were low and extraordinarily efficient.
Jason Sayre made a motion to accept the annual audit report as of September 30, 2021. Ross Hutto
seconded the motion. The motion was approved by the Trustees, 3-0.
b) Mitchell Brennan, Investment Consultant (Burgess Chambers Associates)
Mr. Brennan reported that inflation concerns and supply chain issues impacted the market in the March
31, 2022 quarter. Supply and demand issues weight on energy prices. The Fed has begun to aggressively
raise market rates; causing loses in both stocks and bonds. Used car prices jumped 27%. Value stocks
significantly outperformed growth stocks. The downturn may create buying opportunities. Market
declines of 14% during the year are typical. Mr. Brennan has no rebalancing recommendations at this
CLER 10NT
Chaise d Champions
City of Clermont
Retirement Plan and Trust for the Police Officers
DRAFT Quarterly Meeting Minutes
May 25, 2022
time, as the current assets allocations remain in line with the investment policy targets. The assets
returned -5.4% gross and -5.5% net for the quarter ending March 31, 2022 compared to -3.4% for the
benchmark. The 12.2% 3-year annual average return ranks in the top 14%. The plan finished the quarter
with total assets of $30,127,648. The infrastructure and real estate assets both had gains. Mr. Brennan
reviewed the individual manager performance, noting the cash and short term bonds also added to the
overall performance. Polen, the large cap growth manager, and American Funds Euro Pacific Growth
both performed below the benchmarks with growth equity holdings.
Mr. Brennen recommended the addition of an active manager for the current large cap value equity
allocations. He recommended the Board take 50% of the current index holding to invest in the Vanguard
Equity Income Fund. The fund has consistently underperformed the benchmark and other large value
managers over time with less risk. The fund charges 19 bps in fees. He compared the top Vanguard
holdings to the index. He would make the move in 4-weekly steps of $550,000.
Jason Sayre made a motion, based on the recommendation of the investment monitor, to move $2.2
million, in 4 step increments, to the Vanguard Equity Income Fund. Mark Vitek seconded the motion. The
motion was approved by the Trustees, 3-0.
c) Bonni Jenson, Attorney Report (Klausner Kaufman Jensen & Levinson)
Ms. Jensen reminded the Trustees the Form 1 financial forms will need to be completed and submitted
before July 1. She emphasized the Trustees should keep a submission receipt to keep for their records.
Ms. Jensen reviewed the IRS mileage reimbursement for travel which is at $0.585. She will inform the
board if the government increases the rate due to rise in gasoline prices. The Secure Act 2.0 has passed
the House and will be discussed by the Senate later in 2022. The IRS recommendation to increase the
required minimum distribution age to 75 from 72 is contained in the bill. The Department of Labor has
also begun to look at the suitability of crypto investments in pension plans. Ms. Jensen recommended
the Board update the signature authorizations due to the turnover of the Trustees. She reported that
Chad Edmondson had his benefits capped inappropriately, so she provided a proposed plan amendment
to clarify the ordinance language.
Ross Hutto made a motion to have Ms. Jensen draft a proposed ordinance to present to the City Council for
approval that clarifies the ordinance language. Jason Sayre seconded the motion. The motion was
approved by the Trustees, 3-0.
a) Scott Baur, Administrator Report (Resource Centers)
Mr. Baur informed the Board that the annual report has been filed. He discussed his office lease rollover
which caused the management to look at the post-COVID working patterns. The office space could be
reduced by one-third and satisfy the worker's needs. Mr. Baur encouraged the Trustees to seek
educational opportunities like the upcoming FPPTA Conference. He discussed the Share Allocations and
requested input from Jayson Sayre and Chris Martin to confirm any new hires. The Share statements will
be distributed after they have been reviewed.
CLER IONT
chaise d Champions
City of Clermont
Retirement Plan and Trust for the Police Officers
DRAFT Quarterly Meeting Minutes
May 25, 2022
6. 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 February 23, 2022 and May 25, 2022.
Ross Hutto seconded the motion. The motion was approved by the Trustees, 3-0.
7. Plan Financials
The Trustees received the interim financial statement for April 30, 2022. The Warrants for February 23
and May 25, 2022 were reviewed by the Trustees.
Jason Sayre made a motion to approve the Warrants dated February 23, 2022 and May 25, 2022. Mark
Vitek seconded the motion. The motion was approved by the Trustees, 3-0.
Mr. Baur presented and explained the purpose of the Administrative Budget. He informed the Trustees
the administrative expenses were as of the fiscal year end 2021 and the administrative budget is a
projection for the fiscal year 2023.
Ross Hutto made a motion to approve the FY21 Administrative Expenses and the FY23 Administrative
Budget. Mark Vitek seconded the motion. The motion was approved by the Trustees, 3-0.
8. Other Business
The Fire Department made changes to the years of service and benefits. The Board would like an update
from Chris Martin at the August meeting on the changes. Mr. Baur is requested to send a clean copy of
the Audit report to Marsha Pridgeon and Pam Brosonski.
9. Public Comment
There was no public comment.
10. The next pension board meeting will be Wednesday, August 24, 2022 at 9:00 AM.
11. Jason Sayer called the meeting adjourned at 10:50 AM.
Chair
Secretary
Date