Minutes 05-25-2022 Firefighter Quarterly Meeting rev+ Retirement Plan & Trust for Firefighters of the City of Clermont
C�ER ANT DRAFT Minutes Quarter) Meeting
May 25, 2022
1. Chair Judd Lent called a Quarterly Meeting of the Firefighters Retirement Plan Board of Trustees to
order at 11:08 AM on May 23, 2022 in Council Chambers at the Clermont City Hall. Mr. Baur called
roll on behalf of the Board. Those persons present included:
TRUSTEES
Judd Lent, Chair
Ryan Moore, Secretary
Ariel Guerrero, Trustee
Richard Pastor, Trustee
Adam Watkins, Trustee (11:20 AM)
2. Approval of Minutes:
OTHERS
Scott Baur & Kyle Tintle, Administrator (Resource Centers)
Mitchel Brennan, Investment Consultant (BCA)
Bonni Jensen, Attorney (KKJL)
Members in Attendance:
Matthew Hise, Stephen Murdock, Bryan Bull
Fernando Jimenez, Thomas Bennett, Bruce Wisniewski
Electronically:
Marsha Pridgeon, (City of Clermont)
Ron Conrad & Justin Conley, Auditors (Cherry Bekaert)
The Trustees reviewed the Quarterly Board Meeting Minutes dated February 23, 2022 and the Special
Joint Meeting dated January 21, 2022.
Ryan Moore made a motion to approve the Quarterly Board Meeting Minutes dated February 23, 2022. The
motion received a second from Richard Pastor, approved by the Trustees 4-0.
Richard Pastor made a motion to approve the Quarterly Board Meeting Minutes dated January 21, 2022.
The motion received a second from Ariel Guerrero, approved by the Trustees 4-0.
The Agenda was adjusted to accommodate the members in attendance to have their questions answered
at the beginning of the meeting so they return to work.
The members requested an update on the status of their buybacks. Mr. Baur provided a brief update of
the progress for the Board. For those before October 1, 2002 it is a 3% multiplier. For those hired after
October 1, 2002 the multiplier is 2.25%. He discussed a 9% longevity bonus for members at 22 years of
service. Then the multiplier drops to 2% per year thereafter. Ms. Jensen has a draft ordinance. Adam
Watkins may have further clarification. The Administrative report is complete.
3. Reports:
Audit Report: Auditor (Ronald Conrad and Justin Conlev)
Mr. Conrad presented the September 30, 2021 audited financial statements. He reviewed the required
communications, including the responsibility of the auditor. He presented an unmodified (clean) opinion
without weaknesses in internal controls or instances of noncompliance. The auditor made no
adjustments. He explained any estimates cited. Mr. Conrad did not encounter any difficulties, no
disagreements with management.
+ Retirement Plan & Trust for Firefighters of the City of Clermont
C�ER ANT DRAFT Minutes Quarter) Meeting
May 25, 2022
The plan assets increased from $28,802,023 in 2020 to $30,484,926 in 2022. The plan had strong
investment returns in 2022 to drive the increase in assets. The expenses of 27 bps for administrative and
7 bps for investment indicate a plan that runs very efficiently. Mr. Conrad reviewed the Management
Discussion Analysis (MDA) letter details and the audit report. The funded ratio increased from 109.83% in
2020 to 122.52% in 2021 at market value of assets. He reviewed the reporting risks.
Ryan Moore made a motion to approve the audited financial statements for September 30, 2021. The
motion received a second from Judd Lent, approved by the Trustees 5-0.
Quarterly Investment Report: Investment Consultant, (Mitchel Brennan- BCA)
Mr. Brennan reported that inflation concerns and supply chain issues impacted the market in the March
31, 2022 quarter. Supply and demand issues effected 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
time, as the current assets allocations remain in line with the investment policy targets.
The plan is now down an estimated 6.6% for the fiscal year to date. Mr. Brennan reported that the plan
had total assets of $30,502,799 as of March 31, 2022, a return of -5.5% on assets compared to -3.4% for
the bench. He noted that the large growth equities managed by Polen performed below the bench due
to holdings such as Meta and Netflix, which had significant declines during the quarter. The consultant
continues to lose confidence in Polen as a manager. The EuroPacific Growth also performed under the
International bench with a small exposure to Russian holdings, overweight to growth issues, and
underweight to financial issues. Cohen & Steers (Infrastructure) and real estate holdings generated
positive results. Mr. Brennan reviewed other manager results in detail as well. He recommended
splitting the current large cap value allocation invested in the Fidelity Large Cap Value Index with
Vanguard Equity Income Fund. He reviewed the historical performance and risk for the Vanguard
manager. This fund provides greater returns with less risk then the benchmark. The Vanguard fund also
offers further diversification from the current holdings. Mr. Brennan recommends making 4-weekly
moves, of $550,000 to invest a total of $2.2 million in additional funds.
Ryan Moore made a motion to approve the recommendation of the investment consultant to move of
$2,200,000 from the Fidelity Large Cap Value Index in 4-weekly moves of $550,000 to the Vanguard Equity
Income Fund. The motion received a second from Adam Watkins, approved by the Trustees 5-0.
Attorney Report: Bonni Jensen (Klausner, Kaufman, Jensen & Levinson)
Ms. Jensen reminded the trustees to file their annual form 1 financial disclosure forms by July 1 with the
Supervisor of elections for the county in which they reside. The federal mileage reimbursement rate
increased to 62.5 cents. The IRS provided clarification of the required minimum distribution provisions in
the SECURE Act, which requires distributions (RMD) beginning at age 72, further legislation may
eventually increase the age for the RMD from 72 to 75. The Department of Labor has also begun to look
at crypto investments in pension plans. Ms. Jensen provided a memo recommending signature
authorization updates. She provided an update on John Sevelli, who did not approve of the deposition of
i
CLER IONT
Choice of Champions
Retirement Plan & Trust for Firefighters of the City of Clermont
DRAFT Minutes Quarterly Meeting
May 25, 2022
the physician and continues to represent himself. Ms. Jensen has not heard anything from Lawrence
Crawford. Mr. Crawford's file is now closed.
Mr. Baur discussed the Share distributions; he requested Judd Lent, Adam Watkins, and Ryan Moore
review the Share distributions to verify the information before the statements are distributed. There was
a discussion of forfeitures and reallocations. Mr. Baur will provide the final Share information to Judd
Lent to distribute to the members.
4. Plan Financials
Interim Financial Statement Dated April 30, 2022: Mr. Baur presented the Board with the Interim Financial
Statement for informational purposes.
Approval of Invoices, Warrant Dated Mav 25, 2022
Mr. Baur presented the Board with the Warrant Dated May 25, 2022, for review and approval.
Ryan Moore made a motion to approve the Warrant dated May 25, 2022. The motion received a second
from Ariel Guerrero, approved by the Trustees 5-0.
Mr. Baur presented the FY21 Administrative Expense Report and the FY23 Budget. He explained the
purpose of the budget; the administrative expenses are the actual expenses for the fiscal year ending on
September 30, 2021. The FY23 budget is a proposal of expenses which should not be exceeded by the
end of the fiscal year of 2023.
Ryan Moore made a motion to approve the FY21 Administrative Expense Report and the FY23 Budget. The
motion received a second from Adam Watkins, approved by the Trustees 5-0.
5. Other Business
Adam Watkins noted a correction to be made to the Summary Plan Description. He also clarified the
provisions of the new negotiated benefit.
Ariel Guerrero departed the meeting at 12:50 P.M.
Mr. Baur will send a copy of the Valuation with the City.
6. Public Comment
No members of the public had any comment.
+ Retirement Plan & Trust for Firefighters of the City of Clermont
C�ER ANT DRAFT Minutes Quarter) Meeting
May 25, 2022
There being no further business and the next meeting having been previously scheduled for May 25, 2022
at 11:00 AM, the Chair adjourned the meeting at 12:57 PM.
Respectfully Submitted,
Ryan Moore, Secretary