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Board Agenda 11.10.16 w attachmentsCITY OF ATLANTIC BEACH BOARD OF TRUSTEES OF THE ATLANTIC BEACH PENSION FUNDS BOARD MEETING AGENDA FOR November 10, 2016 - 6:30 P.M. Call to Order both boards 1. Courtesy of the Floor to Visitors 2. Approval of the Minutes for August 11, 2016, General Employee’s board meeting – (1) 3. Approval of the Minutes for August 11, 2016, Police Pension board meeting – (2) 4. Fund Balance Report, General Employee Plan – non actionable, for discussion and information only. (3) 5. Fund Balance Report, Police Plan – non actionable, for discussion and information only. (4) 6. To be discussed by Sidney Taylor and Chris Bridges, Morgan Stanley: a. Recap Investment Performance for the Police Officers’ for the period ended 9/30/16 & 10/31/16and subsequent activity since. b. Recap Investment Performance for the General Employees’ for the period ended 9/30/16 & 10/31/16 and subsequent activity since. 7. Pension Board Attorney to discuss matters of interest to the General Employees’ & Police Officers’ Pension Board – Pension Board Attorney Scott Christiansen of Christiansen & Dehner, P.A. 8. Financial Expenditures through September 30, 2016 – Police Officers’ Pension Fund – (5) 9. Financial Expenditures through September 30, 2016 – General Employees’ Pension Fund – (6) 10. Proposed change to the quarterly meeting dates: a. February 9th (formerly the 16th) b. May 11, 2017 (no change) c. August 10, 2017 (no change) d. November 9, 2017 (no change) 11. Any New Business 12. Adjournment – Police 13. Adjournment – General CITY OF ATLANTIC BEACH BOARD OF TRUSTEES OF THE ATLANTIC BEACH PENSION FUND GENERAL EMPLOYEES’ PENSION BOARD MEETING MEETING MINUTES August 11, 2016 1 1. The City of Atlantic Beach General Employees’ Pension Board meeting was called to order at 6:33 P.M. Those in attendance were: Members Non - Members Ray Brandstaetter Russell Caffey - Plan Administrator Mike Jones Chris Bridges - Graystone Consulting Alan Gleit Scott Christiansen - Plan Attorney Jim Griffiths 2. Courtesy of the floor to visitors. Chris Jorgensen made general comments regarding the behavior of oil companies drawing comparisons to a poker game. 3. Approval of the minutes from the General Employee Pension Plans for July 14, 2016. Motion to approve was made by Ray Brandstaetter and seconded by Jim Griffiths. The vote was approved unanimously. 4. Chris Bridges of Graystone consulting lead a discussion of the portfolios of both plans. a. Discussion related to current allocation and rate of return. The current plan has 62.0% in Equity, 27.3% in Fixed Income, 4.9% in Alternatives and 5.9% in Cash. The ending portfolio value of $16,184,246. Return Summary Month 7/1/2016 - 7/31/2016 2.6% Quarter 7/1/2016 - 7/31/2016 2.6% Fiscal YTD 10/1/2015 - 7/31/2016 9.2% Last 3 Years 7/1/2013 - 7/31/2016 5.7% 5. Motion to rebalance account made by Alan Gleit and seconded by Jim Griffiths. The vote was approved unanimously. Official motion was to move 50% from Columbia holdings (Equity) to purchase Pioneer. 6. There was general discussion regarding the expected annual rate of return. Motion to keep assumed rate of return at 7% was made by Alan Gleit seconded by Mike Jones. The vote was approved unanimously. 7. Adjournment 8:06 pm – Ray Brandstaetter made a motion to adjourn the meeting, it was seconded by Mike Jones. __________________________ ____________________________ Ray Brandstaetter Mike Jones Chair Vice Chair CITY OF ATLANTIC BEACH BOARD OF TRUSTEES OF THE ATLANTIC BEACH PENSION FUND POLICE EMPLOYEES’ PENSION BOARD MEETING MEETING MINUTES August 11, 2016 1 1. The City of Atlantic Beach Police Employees’ Pension Board meeting was called to order at 6:33 P.M. Those in attendance were: Members Non - Members Vic Gualillo Russell Caffey - Plan Administrator David Cameron Chris Bridges - Graystone Consulting Bob Liggero Scott Christiansen - Plan Attorney Bill Tomson John Wolfel 2. Courtesy of the floor to visitors. Chris Jorgensen made general comments regarding the behavior of oil companies drawing comparisons to a poker game. 3. Approval of the minutes from the Police Pension Plans for June 9, 2016. Motion to approve was made by Vic Gualillo and seconded by Bill Tomson. The vote was approved unanimously. 4. Chris Bridges of Graystone consulting lead a discussion of the portfolios of both plans. a. Discussion related to current allocation and rate of return. The current plan has 63.5% in Equity, 27.4% in Fixed Income, and 9.0% in Cash. The ending portfolio value of $8,659,668. Return Summary Month 7/1/2016 - 7/31/2016 2.7% Quarter 7/1/2016 - 7/31/2016 2.7% Fiscal YTD 10/1/2015 - 7/31/2016 9.1% Last 3 Years 7/1/2013 - 7/31/2016 5.8% 5. Motion to rebalance account made by Vic Gualillo and seconded by David Cameron. The vote was approved with one dissenting vote (Bill Tomson). Official motion was to move 2.0% from Columbia (Equity) and 4.0% cash to purchase 6% Tortoise MLP. Then, liquidate half of the remaining Columbia holdings and purchase Pioneer. (Percentages are in relation to entire portfolio) 6. There was general discussion regarding the expected annual rate of return. Motion to keep assumed rate of return at 7% was made by Bill Tomson seconded by Bob Liggero. The vote was approved unanimously. 7. Change in Status in the Police Pension Plan for Barrett Hatfield. Motion to grant was made by David Cameron and seconded by Vic Gualillo. The vote was approved unanimously. 8. Adjournment 8:06 pm – Bob Liggero made a motion to adjourn the meeting, it was seconded by Vic Gualillo. __________________________ ____________________________ Vic Gualillo David Cameron Pooled Equity Morgan Stanley Account Total Balance 10.01.15 68,735$ 14,905,074$ 14,973,809$ - Revenue - Employer Contributions 1,112,334$ 1,112,334$ Employee Contributions 128,204 128,204 Morgan Stanley Portfolio 1,427,054 1,427,054 1,240,538$ 1,427,054$ 2,667,592$ Expenses Admin (64,118)$ (64,118)$ Retirees Payouts (1,207,803) (1,207,803) (1,271,921)$ -$ (1,271,921)$ Transfers 100,000$ (100,000)$ - 137,352$ 16,232,128$ 16,369,480$ City of Atlantic Beach General Employee Pension Fund Fund Balance Report 09.30.2016 Pooled Equity Morgan Stanley Account Total Balance 10.01.15 68,372$ 7,933,173$ 8,001,545$ - Revenue - Employer Contributions 729,483$ 729,483$ Employee Contributions 117,014 117,014 Morgan Stanley Portfolio 793,684 793,684 846,497$ 793,684$ 1,640,181$ Expenses Admin (42,836)$ (42,836)$ Retirees Payouts (570,310) (570,310) (613,147)$ -$ (613,147)$ 301,723$ 8,726,857$ 9,028,580$ City of Atlantic Beach Police Pension Fund Fund Balance Report 09.30.2016 Account Description 2015 Actual Expense FY 16 Budget FY 16 Expense % Total Budget Plan Expense: Service Providers: Actuary - Admin Exp 27,801 25,000 20,034 46.7% Investment Expense 44,250 45,000 13,149 30.6% Subtotal:72,050 70,000 33,183 77.3% Trustee Expenses: Book, Subscription, Memberships 600 700 600 1.4% Training 605 3,500 2,194 5.1% Subtotal:1,205 4,200 2,794 6.5% Other Plan Expenses: Insurance 3,098 3,882 2,979 6.9% Subtotal:3,098 3,882 2,979 6.9% Pension Office: Office Expenses: COAB Internal Services - City Manager 324 296 296 0.7% COAB Internal Services - Finance Department 1,327 1,265 1,265 2.9% COAB Internal Services - Human Resources 2,218 2,406 2,406 5.6% Printing & Publishing 11 20 20 0.0% Subtotal:3,880 3,987 3,987 9.3% TOTAL:80,233 82,069 42,943 100.0% Retirement Payouts: Service Retired Pay 406,206 406,207 428,309 Disability Retired Pay 118,331 118,331 118,331 Drop Pay - ICMA 401 Plan - - - Pension Refunds 28,505 15,000 23,671 Subtotal:553,043 539,538 570,310 City of Atlantic Beach Police Pension Fund Expenditures as of September 30, 2016 Account Description 2015 Actual Expense FY 16 Budget FY 16 Expense to Date % Total Budget Plan Expense: Service Providers: Admin Expense (Acutuary & Legal)29,636 25,000 19,530 30.2% Investment Expense 78,464 75,000 31,869 49.3% Subtotal:108,100 100,000 51,399 79.5% Trustee Expenses: Book, Subscription, Memberships 600 800 600 0.9% Training 641 4,200 1,206 1.9% Subtotal:1,241 5,000 1,806 2.8% Other Plan Expenses: Insurance 3,098 3,882 2,979 4.6% Subtotal:3,098 3,882 2,979 4.6% Pension Office: Office Expenses: COAB Internal Services - City Manager 337 307 307 0.5% COAB Internal Services - Finance Department 1,946 2,005 2,005 3.1% COAB Internal Services - Human Resources 5,618 6,097 6,097 9.4% Printing & Publishing 33 50 50 0.1% Subtotal:7,934 8,459 8,459 13.1% TOTAL:120,373 117,341 64,642 100.0% Retirement Payouts: Service Retired Pay 690,055 690,000 789,096 Disability Retired Pay 55,582 56,400 46,859 Beneficiary Pay 123,847 123,200 132,570 Drop Pay - ICMA 401 Plan 142,594 - - Drop Pay - DB Plan 19,113 - - Lump Sum Distribution - - 207,381 Pension Refunds - - 31,898 Subtotal:1,031,191 869,600 1,207,803 City of Atlantic Beach General Employee Pension Fund Expenditures as of September 30, 2016