HomeMy WebLinkAboutAgenda Police Pension 111507Donna Cannon
From: Ray Ellis
Sent: Thursday, November 01, 2007 8:22 AM
To: Donna Cannon
Subject: FW: Palm Beach Gardens Police - Meeting 11 -15 -07
Attachments: Agenda 11- 15- 07.pdf
Ival
Ray Ellis
Deputy City Clerk
City of Palm beach Gardens
561- 799 -4195
rellis(a�pbgfl.com
From: Audrey Walker [mailto:audrey .walker @resource - team.com]
Sent: Wednesday, October 31, 2007 11:32 AM
To: Jay Spencer; piersl @adelphia.net; Wayne Sidey; Julius Barone; bradsticker @yahoo.com; Bonni S. Jensen;
steve .palmquist @gabrielroeder.com; sstack @icccapital.com; Ray Ellis
Subject: Palm Beach Gardens Police - Meeting 11 -15 -07
Good Afternoon,
Attached you will find an Agenda, Minutes and Financial Statements for the November 15, 2007 Meeting at 9AM. I will be
on vacation from November 2 till November 11, so I wanted to get most of the materials out to you so you will have time to
look them over. I will bring full packets to the meeting for everyone that will include the disbursements in them. Also at
the meeting Steve Palmquist from Gabriel, Roeder and Smith will be there to review and approved the 2006 Actuarial
Valuation.
In the meantime if you have any questions or concerns please feel free to contact me.
Thanks,
Audrey Walker
Administrator
The Pension Resource Center, LLC
4360 Northlake Blvd., Suite 206
Palm Beach Gardens, FI 33410
561.459.3007
561.624.3278 (Fax)
audrey.walker resource - team.com
www.resourcecenters.com
Agenda
City of Palm Beach Gardens Police Officers'
Pension Fund
MEETING OF NOVEMBER 15, 2007
LOCATION: City Council Chambers' Police Conference Room
10500 North Military Trail
Palm Beach Gardens, FL 33410
TIME: 9:00 AM
1. Call Meeting To Order
2. Roll Call:
• Lt. Jay Spencer, Chairman
• David Pierson, Secretary
• Jules Barone, Trustee
• Brad Seidensticker, Trustee
• Wayne Sidey, Trustee
3. Approval of Minutes: August 30th, 2007 Regular Meeting
4. Investment Manager Reports - ICC Capital (Steve Stack)
5. 2006 Actuarial Valuation Report - Gabriel, Rodeor & Smith (Steve Palmquist)
6. Attorney Report: Hanson, Perry, & Jensen, P.A. (Bonni Jensen)
7. Disbursements Approval
8. Financial Statements
9. Administrative Report (Scott Baur)
10. Old Business
• Progress of Investment Policy Guidelines and the investments benchmarks to
prohibits mortgage- backed securities
11. Other Business
• Discussion on members leaving their DROP money in the account once they
separate from service
12. Adjourn
Meeting Schedule:
*Need to reschedule all 2008 Meeting Dates
PLEASE NOTE:
Should any interested party seek to appeal any decision of this Board with respect to any matter considered at such
meeting or hearing, s /he will need a record of the proceedings and for such purpose may need to ensure that a verbatim
record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be
based.
In accordance with the Americans With Disabilities Act of 1990, persons needing a special accommodation to participate
in this meeting should contact the The Pension Resource Center, LLC no later than four days prior to the meeting.
Palm Beach Gardens Police
Balance Sheet
FY 2007
Account Description
October
November
December
January
February
March
April
May
June
July
August
September
1001 -00
1 Bank of America.. Checking
332
712.24
308
007.80
333
410.72
329
258.85
298
917.16
292
625.11
361
264.99
367
463.54
373
755.93
4,825.98
0.00
0.00
1006 -00
Bank Atlantic Checking
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
309
769.34
301
680.55
310
451.17
1210 -00
Accrued Interest
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
1225 -00
A/R Contributions-Employee
82
183.16
82
183.16
82
183.16
82
183.16
82
183.16
82
183.16
82
183.16
82
183.16
82
183.16
82
183.16
82
183.16
82
183.16
1235 -00
Prepaid-Other
0.00
5,297.32
0.00
3,082.01
3,082.01
3,082.01
3,082.01
3,082.01
3,082.01
49
953.84
53
451.80
47
608.27
1527 -00
RhumbLine S &P 500 Large-Cap
7,881,706.67
8 030
333.09
8,142,751.18
8 264
102.11
8,103,047.85
8 194
393.08
8,556,402.32
8 853
881.30
8,707,715.78
6 542
727.09
6,640,805.19
6 889
013.90
1528 -00
RhumbLine S &P 400 Mid-Cap
1,885,230.58
1 945
691.23
1,935,925.75
2 006
644.19
2,020,892.21
2 046
587.13
2,109,212.43
2 214
462.73
2,166,821.77
2 075
355.49
2,094,287.89
2 149
336.93
1529 -00
RhumbLine S &P 600 Small-Cap
2,135,800.42
2 194
207.85
2,195,566.00
2 241
508.97
2,231,000.80
2 269
000.36
2,319,967.23
2 425
710.22
2,386,320.36
2 267
325.34
2,310,626.63
2 343
442.71
1531 -00
1ICAP International Fund
214
357.83
219
966.35
227
879.10
231
142.84
229
744.10
234
931.11
246
587.33
246
587.33
256
075.38
256
075.38
506
075.38
527
330.49
1532 -00
Vanguard Ind Value
216
958.27
216
958.27
238
760.60
238
760.60
238
760.60
246
514.10
246
514.10
246
514.10
267
052.01
267
052.01
517
052.01
546
029.83
1533 -00
Vanguard Global Equity
213
826.67
213
826.67
234
791.86
234
791.86
234
791.86
243
806.56
243
806.56
243
806.56
265
523.78
265
523.78
515
523.78
539
778.96
1534 -00
Vanguard Int'I Growth
217
015.67
217
015.67
239
913.52
239
913.52
239
913.52
247
057.19
247
057.19
247
057.19
268
962.34
268
962.34
518
962.34
554
995.96
1660 -00
ICC Capital
10 418
533.63
10 517
171.60
11 145
074.64
11 146
361.80
11 295
068.41
11 319
240.19
12 120
068.23
12 091
590.97
12 728
025.26
14 746
210.77
13 938
566.20
14 779
721.75
2010 -00
Accounts Payable
22
973.14
22
973.14
22
973.14
22
973.14
22
973.14
22
973.14
22
973.14
22
973.14
22
973.14
22
973.14
22
973.14
(22,973.1:L
2020 -00
Accounts Payable.. Other
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
2030 -00
Tax Withholdin s
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
TOTAL RESERVE FUND (MARKET VALUE):
23,575,352.00
23,927,685.87
24,753,283.39
24,994,776.77
24,954,428.54
25,156,446.86
26,513,172.41
26,999,365.97
27,482,544.64
27,112,991.38
27,456,241.79
28,746,919.99
Palm Beach Gardens Police
Statement of Income and Expense
FY 2007
Account Description
End October
End November
End December
End January
End February
End March
End April
End May
End June
End July
End August
End September
Year -TO -Date
Income•
4005 -00
Contributio2s -State
428 055.49
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0000
0.00
691 036.75
1,119,092.24
4010 -00
Contributions -Em to er
0.00
0.00
0.00
0.00
0.00
0.00
691 036.75
0.00
691 036.75
0100
0.00
0.00
1,382,073.50
4020 -00
Contributions -Em to ee
57 261.02
62 109.84
93 612.33
61 421.71
58 242.75
60 480.91
58 985.08
85 373.81
63 255.47
60 558.16
57 183.41
62 484.68
780 969.17
4045 -00
Contributions-Buy Back
0.00
0.00
0.00
0.00
0.00
0.00
66 428.00
0.00
0.00
0.00
0.00
0.00
66 428.00
4100 -00
Commission Reca Lure
0.00
0.00
0.00
0.00
264.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
264.00
4001 -00
Interest Income
26.98
18.18
12.96
12.79
11.00
11.67
11.60
14.05
13.81
610.75
0.04
0.00
743.83
4127 -00
Investment Income- RhumbLine500
248 661.89
148 626.42
112 418.09
123 350.93
161 054.26
97 345.23
362 009.24
297 478.98
146 165.52
164 988.69
98 078.10
248 208.71
1,255,969.12
4128 -00
Investment Income- RhumbLine400
75 047.74
60 460.65
(9,765.48)
70,71B.44
14 248.02
25 694.92
62 625.30
105 250.30
47 640.96
91 466.28
18 932.40
55 049.04
339 154.09
4129 -00
Investment Income-Rho mbLine600
101 024.48
58 407.43
1 1,358.15
1 45 942.97
(10,508.17)l
37 999.56
1 50 966.87
1 105 742.99
39 389.86
(118,995.02)l
43 301.29
1 32 816.08
1 308 666.77
4131 -00
lInvestment Income -ICAP Int'I
7,403 .26
5 608.52
7 912.75
3,2H .74
1 398.74
5 187.01
11 656.22
0.00
9 488.05
0.00
0.00
21 255.11
70 375.92
4132 -00
Investment Income -Van uard VAL
0.00
0.00
21 802.33
0.00
0.00
7 753.50
0.00
0.00
20 537.91
0.00
0.00
28 977.82
79 071.56
4133 -00
Investment Income -Van guard E
0.00
0.00
20 965.19
0.00
0.00
901470
0.00
0.00
21 717.22
0.00
0.00
24 255.18
75 952.29
4134 -00
Investment Income -Van uard GR
0.00
0.00
22 897.85
0.00
0.00
7 143.67
0.00
0.00
21 905.15
0.00
0.00
36 033.62
87 980.29
4230 -00
Investment Income ICC Capital
58 549.88
98,637.97
627 903.04
2,917.13
148 706.61
24 171.78
111 446.73
28,477.26
54,602.46
20 046.93
192 355.43
150,118.80
1,351 774.58
Total Income
1
976,030.74
433,869.01
899,117.21
305,627.71
48,511.21
268,802.95
1,415,165.79
565,382.87
540,155.56
(294,234.15)
409,850.67
1,350,235.79
6,918,515.36
Account Description
End October
End November
End December
End January
End February
End March
End April
End May
End June
End July
End August
End September
Year -TO -Date
Ex ens.:
5000 -00
Investment Management Fees
1,452.77
24,905.53
0.00
1,629.97
18,612.97
0.00
1,655.44
15,543.27
0.00
17 755.39
0.00
0.00
81,555.34
5005 -00
Custodial Fees
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
5010 -00
Performance Monitor
0.00
0.00
0.00
0.00
12 258.00
0.00
0.00
3,256.00
0.00
0.00
3,156.00
0.00
18,670 .00
5011 -00
Printing/Stationary
0.00
0.00
0.00
0.00
334.48
531.79
0.00
0.00
0.00
0.00
32.46
0.00
833.81
5100 -00
Benefit Pa ments
49 232.73
49,232 .73
62 963.25
52,665 .36
52,665 .36
52,665 .36
54,115 .36
52,715 .36
52 715.36
52,715 .36
61,423 .62
57,069 .49
650,179 .34
5105 -00
Share Account Withdrawals
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
5110 -00
Drop Account Withdrawals
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
5115 -00
Termination Refunds
3,393.05
1 630.86
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
5,023-9L
5205 -00
Prof.Fees- Accounting Fees
0.00
1 900.00
0.00
0.00
0.00
8,400.00
0.00
3,000.00
0.00
0.00
0.00
0.00
13 300.00
5210 -00
Prof.Fees- Actuarial Fees
3,649.00
1 324.00
0.00
6,181.00
2,084.00
0.00
0.00
0.00
0.00
2,329.00
0.00
0.00
15 567.00
5215 -00
Prof.Fees -Le al Fees
288.70
0.00
1,790.62
1,117.82
260.66
1,459.99
149.00
0.00
1,719.43
0.00
0.00
213.10
6,999.32
5220 -00
Prof.Fees- Administrative Fees
2,275.0
2 296.34
2 275.00
2 275.00
2,308 .58
2,279.21
2,275.0
2,475.00
2,275 .00
2,275.00
2,292.52
2,275.0
27 576.65
5222 -00
Prof.Fees- Custodial Fees
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
5231 -00
Fiducia Liabilit Insurance
0.00
0.00
6,244.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
6,244.00
5235 -00
Annual Membershi Fees
0.00
0.00
0.00
0.00
0.00
450.00
0.00
0.00
0.00
0.00
0.00
0.00
450.00
5240 -00
Trustee Ex enses
450400
0.00
0400
0.00
0.00
0.00
0.00
1 954.00
0400
0.00
239.42
0.00
2,164.58
5241 -00
Com uter Services
1,060.00
0.00
0.00
0.00
90.00
750.00
0.00
0.00
0.00
0.00
0.00
0.00
1,900.0
5245 -00
Postage
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
5250 -00
Bank Char es
275.63
245.68
246.82
265.18
245.39
248.28
245.44
245.68
267.10
244.36
0.00
0.00
2,52 9.56
-00
Miscellaneous Ex enses
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Expense
62,076.88
81,535.14
73,519.69
64,134.33
86,859.44
66,784.63
58,440.24
79,189.31
56,976.89
75,319.11
66,600.26
59,557.59
832,993.51
�52 ve Fund Last Period
22 661 398.14
23 575 352.00
23 927 68587
24 753 283.39
24 994 776.77
24 954 428.54
25 156 446.86
26 513 172.41
26 999 365.97
27 482 544.64
27 112 991.38
27 456 241.79
22 661 398.14
ce To/ From Reserve
913 953.86
352,333.87
825,597.52
241 493.38
40,348.23
202 018.32
1,356 725.55
486,193.56
483 178.67
369 553.26
343 250.41
1 290 678.20 6,085,521.85
L RESERVE FUND
23,575,352.00
1 23,927,685.87
1 24,753,283.39
1 24,994,776.77
1 24,954,428.54
1 25,156,446.86
26,513,172.41
26,999,365.97
27,482,544.64
27,112,991.38
27,456,241.79
28,746,919.99 1 28,746,919.99
City of Palm Beach Gardens Police Officers'
Pension Fund
Minutes of the Meeting Held
August 30th, 2007
The regular meeting of the Board of Trustees of the City of Palm Beach Gardens
Police Officers' Pension Fund was called to order at 9:07 AM by Chairman, Jay
Spencer in the Council Chambers at the Palm Beach Gardens Police Community
Room at 10500 North Military Trail, Palm Beach Gardens, Florida.
TRUSTEES PRESENT
OTHERS PRESENT
Jay Spencer, Chairman
John McCann (Thistle Asset Consulting)
David Pierson, Secretary
Steve Stack (ICC Capital Management)
Jules Barone
Cliff Rogers (ICC Capital Management)
Brad Seidensticker
Bonni Jensen (Hanson, Perry, & Jensen, P.A.)
Wayne Sidey
Annette Tucci (Palm Beach Gardens Clerk's Office)
Scott Baur (The Pension Resource Center, LLC)
Audrey Walker (The Pension Resource Center, LLC)
Denise D'Entremont (RhumbLine)
MINUTES
MOTION: Mr. Seidensticker made a motion to approve the minutes from
May 14th, 2007.
SECOND: Mr. Pierson seconded the motion.
CARRIED: The motion carried unanimously 5 -0.
Mr. Pierson and Mr. Seidensticker stated that they did not receive the meeting
packets that were send via email a week prior to the meeting.
INVESTMENT MANAGER REPORT
RumbLine — Presented by Denise D'Entremont:
Ms. D'Entremint began by thanking the Board for inviting her down from Boston to
be here at the meeting. She reported that as of July 31St, 2007, RumbLine had a
total of $10,885,407.92 of assets in the portfolio. Ms. D'Entremont continued
reviewing the returns of each individual index component, to make sure they were in
line with the corresponding benchmarks. She also reviewed the returns of the top
holdings, and went over the best and the worst performances in the index. She
stated that this particular plan has index components that track the S &P 500 (Large
Cap), S &P 400 (Mid Cap), and S &P 600 (Small Cap).
Mr. McCann questioned Ms. D'Entremont about the age of the commission recapture,
and she replied that she will review it and get back to the Board. She then provided
the Board with information on the longer term performances of the S &P component.
Lastly, Ms. D'Entremont advised the Board of changes to personnel including the
promotion of Wayne Owen to CEO of Rumbline.
Minutes 8 -30 -07 palm Beach Gardens Police
Page 1 of 6
ICC Capital Managment — Presented by Steve Stack and Cliff Rogers:
Mr. Stack reported that there was $11,447,976 in the fixed income assets. He
stated that despite all the macular turmoil the economy somehow still seems to a
have steady growth. He reported that for the quarter ending on June 30th, 2007 the
bonds had a return of -.26 %, and he also reported that the market continues to
experience heavy volatility. Mr. Seidensticker questioned if the plan had any direct
or indirect exposure to CDO's, and Mr. Stack stated that the portfolio has no direct
exposures to CDO'S. He continued explaining that the mortgage pools held by the
plan as investments were backed by the full faith and credit of the US Government.
Mr. Stack also reported that the lower rated securities held by the plan are an A -.
He stated that ICC invests in costly service that advises the portfolio managers of
potential quality upgrades and downgrades in the portfolio. Mr. Stack recommended
that the plan policy exclude investments that are made in either CMO's or CDO's,
even though the plan does not invest in these issues anyways. Ms. Jensen stated
that even though the paid services managers should have direction, she advises the
trustees that they can always amend the policy again in the future, if the conditions
warrant it.
MOTION: Mr. Seidensticker made a motion to have written in the policy
that all mortgage obligations have to be guaranteed by the
Government Agencies.
SECOND: Mr. Pierson seconded the motion.
CARRIED: The motion carried unanimously 5 -0.
Mr. Stack stated that he will email Mr. McCann with some suggested language and
then he will forward it to the Board.
Mr. Stack commented that he does not have a summary on the growth portfolio,
which is still evolving and still performing well. He stated that ICC is still slowly
investing the cash and will update the Board on the progress. Ms. Jensen requested
Mr. Stack to provide a report to her on the new portfolio before September 30th,
2007.
INVESTMENT CONSULTANT REPORT
Thistle Assets Consultant — Presented by John McCann:
Mr. McCann reviewed the performance of the international stock mutual fund. He
recommended no changes to the use of the current fund choices. He reported that
Mainstays ICAP added an additional manager to their group, which had no affect on
the plan.
Mr. McCann then reviewed the compliance of the portfolio with the investment policy.
Even though the portfolio slightly under performed the policy guidelines, the portfolio
did significantly out perform the peer manager universe. Mr. McCann also reviewed
all the other asset allocations.
Mr. McCann reported that for the quarter ending June 30th, 2007, the portfolio
earned 3.35% versus 3.77% for the benchmark and for one year the portfolio earned
Minutes 8 -30 -07 palm Beach Gardens Police
Page 2 of 6
13.28% versus 15.07 for the benchmark. Mr. McCann stated that the one year
returns ranked in the top 17 percentile, and the year to date fiscal was 9.57 %. Mr.
McCann commented that the risk of the portfolio is lower then the market.
Mr. McCann requested that the Board execute a revised investment policy
Mr. Spencer shared some information from the last FPPTA conference he attended
regarding the investments in the international markets.
ATTORNEY REPORT
Hanson, Perry & Jensen, P.A. — Presented by Bonni Jensen:
Ms. Jensen reported that the amount of the Chapter 185 premium tax money that
was received was $460,437.69, which has slightly risen from the previous year which
was $428,055.49. Ms. Jensen stated that the plan actually gave some money back
for a guarantee that the police plans money would not decrease. Ms. Jensen
commented that the state advises that the plan should begin to look into
implementing some benefit improvements.
Ms. Jensen gave an updated to the Board on the progress of the 2006 Annual
Report, stating that the Administrators are still working on resolving some additional
questions that the state came back with.
Mr. McCann suggested that the Chapter 185 money go to ICC Capital; dividing 60%
into the large cap growth and the remaining 40% into the fixed income.
MOTION: Mr. Pierson made a motion to move the Chapter 185 money to
ICC Capital, with 60% going into large cap growth and 40%
going into the fixed income.
SECOND: Mr. Seidensticker seconded the motion.
CARRIED: The motion carried unanimously 5 -0
DISBURSEMENTS APPROVALS
MOTION: Mr. Sidey made a motion to approve the Disbursements.
SECOND: Mr. Barone seconded the motion.
CARRIED: The motion carried unanimously 5 -0
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ADMINISTRATOR REPORT
The Pension Resource Center, LLC — Presented by Scott Baur:
Mr. Baur answered any questions or concerns that the Board might have had in
regards to the switch of the banks.
Mr. Baur also updated the board on the situation regarding the data transition from
the city which resulted in inaccurate calculations for the payroll data. He stated that
they are still working very hard on getting this matter resolved.
OTHER BUSINESS
Mr. Spencer reported that there were some conflicts on meeting dates with the
council chambers. He stated that the Board will continue to meet in the Police
Community Room on the fourth Thursday, of the second month in the quarter.
Mr. Spencer wants to further discuss at the next meeting about allowing members to
keep their DROP funds in the plans account following separation from their service.
AJOURN
There being no further business, the Trustees officially adjourned the meeting at
10:50AM
Respectfully submitted,
DAVID PIERSON, Secretary
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