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Board Agenda 05.10.18CITY OF ATLANTIC BEACH BOARD OF TRUSTEES OF THE ATLANTIC BEACH PENSION FUNDS BOARD MEETING AGENDA FOR May 10, 2018 - 6:30 P.M. Call to Order both boards 1. Courtesy of the Floor to Visitors 2. Approval of the Minutes for February 15, 2018, General Employee’s board meeting – (1) 3. Approval of the Minutes for February 15, 2018, 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 Pension 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 03/30/18 and subsequent activity since. b. Recap Investment Performance for the General Employees’ for the period ended 03/30/18 and subsequent activity since. c. Investment Policy Statement Review. 7. Pension Board Attorney to discuss matters of interest to the General Employees’ & Police Officers’ Pension Board – Pension Board Attorney Sugarman & Susskind, P.A. 8. Presentation of the annual actuary reports by Gabriel, Roeder, Smith & Company 9. Financial Expenditures through March 30, 2018– Police Officers’ Pension Fund – (5) 10. Financial Expenditures through March 30, 2018–General Employees’ Pension Fund – (6) 11. Change in status – General Employee Pension Plan – Carolyn Thomas 12. Any New Business 13. Adjournment – Police 14. Adjournment – General CITY OF ATLANTIC BEACH BOARD OF TRUSTEES OF THE ATLANTIC BEACH PENSION FUND POLICE EMPLOYEES’ PENSION BOARD MEETING MEETING MINUTES February 15, 2018 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 Dave Cameron Chris Bridges - Graystone Consulting Tim Anderson Sidney Taylor - Graystone Consulting Bob Liggero David Robinson - Plan Attorney Bill Tomson Commissioner Candace Kelly – Commission Liaison 2. Courtesy of the floor to visitors. None 3. Motion to approve minutes from November 9, 2017 meeting. Motion by Bill Tomson, seconded by Bob Liggero. The vote was 4-0. 4. Chris Bridges and Sidney Taylor of Graystone consulting lead a discussion of the portfolios of both plans. A. Discussion related to current allocation and rate of return. The ending portfolio value is $10,238,986. Return Summary Quarter to Date 10/1/2017 - 12/31/2017 3.74% Fiscal Year to Date 10/1/2017 - 12/31/2017 3.74% Performance Since Inception 3/10/2010 - 12/31/2017 6.81% Motion to rebalance the weighting of investments. Motion to accept the recommendation with modification was made by Bob Liggero and seconded by Bill Tomson. The vote was 5- 0. Graystone recommendation (Reduce Vanguard S&P 500 Index VOO 1.1%, Reduce Vanguard Total Int’l Stock Mkt VXUS .2%, Reduce Cash .5%, Increase Goldman Sachs EM Debt GSDIX 2%). Additional recommendation: Reduce Sage Intermediate 1%, Increase Ashton/Double line Core Plus 1%) B. Discussion regarding the Investment Policy Statement was led by Mr. Bridges and Mr. Taylor. Ultimately it was decided that they will rebuild the Investment Policy Statement incorporating sound practices for municipal pensions. Additionally, other sample items may be included for reference. The Board will discuss adoption, modification and potentially a workshop at the next meeting. 5. David Robinson updated the board on pending and upcoming items. No actionable items. 6. Vote to approve the Quarterly Financial Expenditure Report. Motion was made by Dave Cameron and seconded by Tim Anderson. Vote was 5-0. CITY OF ATLANTIC BEACH BOARD OF TRUSTEES OF THE ATLANTIC BEACH PENSION FUND POLICE EMPLOYEES’ PENSION BOARD MEETING MEETING MINUTES February 15, 2018 2 7. Motion for change in status for Merlyn Alvaro. Motion by Dave Cameron, seconded by Vic Gualillo. Vote was 5-0. 8. Commissioner Kelly requested that a member of the Pension Board give the City Commission Quarterly updates. Tim Anderson volunteered. 9. Adjournment – Bill Tomson made a motion to adjourn the meeting at 8:00, it was seconded by all members. __________________________ ____________________________ Vic Gualillo David Cameron Chair Vice Chair CITY OF ATLANTIC BEACH BOARD OF TRUSTEES OF THE ATLANTIC BEACH PENSION FUND GENERAL EMPLOYEES’ PENSION BOARD MEETING MEETING MINUTES February 15, 2018 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 Sidney Taylor - Graystone Consulting Jim Griffiths David Robinson - Plan Attorney Commissioner Candace Kelly – Commission Liaison 2. Courtesy of the floor to visitors. None 3. Motion to approve minutes from November 11, 2017 meeting. Motion by Alan Gleit, seconded by Jim Griffiths. The vote was 4-0. 4. Chris Bridges and Sidney Taylor of Graystone consulting lead a discussion of the portfolios of both plans. A. Discussion related to current allocation and rate of return. The ending portfolio value is $18,765,183. Return Summary Quarter to Date 10/1/2017 - 12/31/2017 3.82% Fiscal Year to Date 10/1/2017 - 12/31/2017 3.82% Performance Since Inception 3/10/2010 - 12/31/2017 6.89% Motion to rebalance the weighting of investments Motion to accept the recommendation was made by Alan Gleit and seconded by Jim Griffiths. The vote was 4-0. (Sell 2% Vanguard S&P 500 Index, Buy 2% Goldman Sachs EM Debt). B. Discussion regarding the Investment Policy Statement was led by Mr. Bridges and Mr. Taylor. Ultimately it was decided that they will rebuild the Investment Policy Statement incorporating sound practices for municipal pensions. Additionally, other sample items may be included for reference. The Board will discuss adoption, modification and potentially a workshop at the next meeting. 5. David Robinson updated the board on pending and upcoming items. No actionable items. 6. Motion for change in status for Harry McNally. Motion by Alan Gleit, seconded by Mike Jones. Vote was 4-0. 7. Commissioner Kelly requested that a member of the Pension Board give the City Commission Quarterly updates. Ray Brandstaetter volunteered. CITY OF ATLANTIC BEACH BOARD OF TRUSTEES OF THE ATLANTIC BEACH PENSION FUND GENERAL EMPLOYEES’ PENSION BOARD MEETING MEETING MINUTES February 15, 2018 2 8. Adjournment– Jim Griffiths made a motion to adjourn the meeting at 8:00, it was seconded by Mike Jones. __________________________ ____________________________ Ray Brandstaetter Mike Jones Chair Vice Chair Pooled Equity (@03.31.18) Morgan Stanley Account (03.31.18)Total Balance 10.01.17 98,202$ 16,324,242$ 16,422,444$ - Revenue - Employer Contributions 666,054$ 666,054$ Employee Contributions 60,157 60,157 Morgan Stanley Portfolio 2,425,697 2,425,697 726,211$ 2,425,697$ 3,151,908$ Expenses Admin (42,252)$ (42,252)$ Retirees Payouts (557,019) (557,019) (599,271)$ -$ (599,271)$ Transfers - 225,142$ 18,749,938$ 18,975,080$ City of Atlantic Beach General Employee Pension Fund Fund Balance Report March 31, 2018 Pooled Equity (@03.31.18) Morgan Stanley Account (03.31.18)Total Balance 10.01.17 468,175$ 8,723,191$ 9,191,366$ - Revenue - Employer Contributions 372,768$ 372,768$ Employee Contributions 65,123 65,123 Morgan Stanley Portfolio 1,470,363 1,470,363 437,891$ 1,470,363$ 1,908,254$ Expenses Admin (22,593)$ (22,593)$ Retirees Payouts (351,888) (351,888) (374,481)$ -$ (374,481)$ 531,585$ 10,193,554$ 10,725,139$ City of Atlantic Beach Police Pension Fund Fund Balance Report March 31, 2018 Account Description 2017 Actual Expense FY 18 Budget FY 18 Expense % Total Budget Plan Expense: Service Providers: Admin Expense (Acutuary & Legal)25,838 25,042 2,476 11.0% Investment Expense 34,907 16,437 18,475 81.8% Subtotal:60,745 41,479 20,951 92.7% Trustee Expenses: Book, Subscription, Memberships - - - 0.0% Training - 3,500 - 0.0% Subtotal:- 3,500 - 0.0% Other Plan Expenses: Insurance 2,915 3,545 - 0.0% Subtotal:2,915 3,545 - 0.0% Pension Office: Office Expenses: COAB Internal Services - City Manager 299 486 246 1.1% COAB Internal Services - Finance Department 999 76 36 0.2% COAB Internal Services - Human Resources 2,484 2,686 1,344 5.9% Printing & Publishing 11 11 16 0.1% Subtotal:3,793 3,259 1,642 7.3% TOTAL:67,453 51,783 22,593 100.0% Admin Expense Reconciliation GABRIEL ROEDER SMITH & CO 300 SUGARMAN & SUSSKIND,P.A.1,105 CHRISTIANSEN & DEH 1,070 City of Atlantic Beach Police Pension Fund Expenditures as of March 31, 2018 Account Description 2017 Actual Expense FY 18 Budget FY 18 Expense to Date % Total Budget Plan Expense: Service Providers: Admin Expense (Acutuary & Legal)44,662 25,000 2,561 6.1% Investment Expense 66,700 45,000 35,905 85.0% Subtotal:111,362 70,000 38,466 91.0% Trustee Expenses: Book, Subscription, Memberships - 800 - 0.0% Training - 4,200 - 0.0% Subtotal:- 5,000 - 0.0% Other Plan Expenses: Insurance 2,915 4,270 - 0.0% Subtotal:2,915 4,270 - 0.0% Pension Office: Office Expenses: COAB Internal Services - City Manager 311 505 252 0.6% COAB Internal Services - Finance Department 1,487 163 84 0.2% COAB Internal Services - Human Resources 6,294 6,804 3,402 8.1% Printing & Publishing 33 50 48 0.1% Subtotal:8,125 7,522 3,786 9.0% TOTAL:122,402 86,792 42,252 100.0% Admin Expense Reconciliation GABRIEL ROEDER SMITH & CO 300 SUGARMAN & SUSSKIND,P.A.1,105 CHRISTIANSEN & DEH 1,155 City of Atlantic Beach General Employee Pension Fund Expenditures as of March 31, 2018