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08-26-1986 Regular MeetingMIAMI SHORES VILLAGE PENSION BOARD MEETING The meeting of the Miami Shores Village Pension Board was called to order at 8:05 a.m. on Tuesday August 26, 1986 by Mayor Karen Kirby with the following in attendance: Board Members: Mayor Karen Kirby Dr. Robert Butler William Heffernan William Walker Chief John Fletcher John Moore Les Forney Also Present: Karen Cole and Gerald Bott of Kidder Peabody and Gail Macdonald, Pension Administrator Absent: Mr. William Fann 1. QUARTERLY INVESTMENT REPORT The significant figures as presented by Kidder Peabody with regard to the Village's combined overall pension performance are detailed on the attached two pages of the Kidder Peabody report which are made a permanent part of these minutes. The combined equity and fixed income portfolio generated a return for the quarter of 4.0% compared to a national median of 2.7% on a time weighted basis. Mr. Bott reported the overall portfolio return for the one year period ending June 30, 1986 as 23.7% which is in line with the national median of 23.1% for funds with similar asset structures. 2. MOTION TO INCREASE THE ASSET ALLOCATION The motion to increase the equity portion to 50% with the difference made up from the fixed income and cash portion was made by Mayor Kirby and seconded by Dr. Butler. The motion carried unanimously. 3. MOTION TO APPROVE THE MINUTES OF THE JUNE 3, 1986 MEETING The motion was made by Mr. William Walker and seconded by Dr. Butler. The motion was carried unanimously. 4. A MOTION WAS MADE BY MR. FORNEY TO DIRECT HIM TO PREPARE AN ORDINANCE FOR THE APPROVAL OF THE VILLAGE COUNCIL TO ACCOMPLISH THE FOLLOWING CHANGES TO THE POLICE & FIRE PENSION PLAN AS REQUESTED BY THE STATE LEGISLATURE: 1. Change the Board of Trustees so that they eliminate the Chief of Police from the Board and elect a representative from the police officers who are participants of the plan. 2. Elect a new chairman and a new secretary from members of the Board the first meeting after the first of October, 1986. 3. Before the 1st of October, write into the Ordinance the authorization for the Board to set the Asset Allocation for the Plan. The motion was made by Mr. Forney and seconded by Dr. Butler. The motion carried unanimously. Mr. Forney also stated that between October 1, 1986 and January 1, 1987 the question of disability benefits in the retirement plan for police officers must be clarified. The liability of the Board, seperate powers of the Board need to be clarified also. The motion for adjournment was made by Mr. Walker and seconded by Mayor Kirby. The motion carried unanimously. Karen Kirby, Mayor • MIAMI SHORES VILLAGE Employees Retirement Plan Quarter EndinjJune 30, 1986 Investment Structure 12/31/85 Cash Reserves $ _ 758,000 (17.6%) Equities 1,261,000 (29.2%) Fixed Income 1,873,000 (43.4%) Real Estate 4263000 ( 9.8%) Total $ 4,318,000 Management Structure Eickhoff & Pieper: Market Value for 12/31/85 Deposits - 6/30/86 $ _ 349,000 (--7.2%) 2,143,000 (44.3%) 1,801,000 (37.3%) 5403000 (11.2%) $ 4,833,000 $ 1,548 _ 3543439 Total $ 1,900,397 Market Value for 6/30/86 2,3013021 Net Gain 400,624 Inception Date 8/28/85 $ 1,372,630 Deposit- _ 354,439 Net Deposits $ 1,727,069 'Equities Only: Second Quarter 6.4% NCNB: Cash/Fixed Income as of 12/31/85 $ 2,346,042 Withdrawal•___4513062 Adjusted Value- $ 1,894,980 Cash/Fixed Income for 6/30/86 19913671 Net Gain $ 96,691 'Fixed Income Only: Second Quarter 1.7% Real Estate as of 12/31/85 $ 426,004 Deposit- 92 121 Net Deposits 518,121 Real Estate for 6/30/86 Net Gain Real Estate Only: Second Quarter 2.3% Kidder, Peabody Co. Incorporated 5403561 $ 22,440 MIAMI SHORES VILLAGE EMPLOYEES RETIREMENT TRUST ASSET ALLOCATION ASSET MI 12-31-85 INVESTMENT POLICY ASSET MI, H `JJ 1,1�'rtil ��r 1,�