11-06-1986 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 Thursday November 6, 1986 by Mayor Karen Kirby with
the following in attendance:
Board Members: Mayor Karen Kirby
Dr. Robert Butler
Mr. William Walker
Sergeant Jack Ulmer
Mr. Melvin Moore
Mr. William Heffernan
Mr. Les Forney, Jr.
Also Present:
Mr. William Fann, Village Attorney,
Mr. Dave Newman and Ms. Karen Cole
of Kidder Peabody.
Ms. Glenda Rowland and Mr. Jim Rizzo
of Kruse, O'Connor & Ling, Inc., and
Ms. Gail Macdonald,Pension Administrator
1. Mayor Kirby introduced Sergeant Jack Ulmer to the Pension Board as the new
Police representative and Pension Board Member.
2. ELECTION OF CHAIRMAN OF THE PENSION BOARD
A motion was made to elect Mayor Karen Kirby as Chairman of the Pension
Board by Mr. Walker and seconded by Mr. Forney.
The motion was carried unanimously.
3. ELECTION OF SECRETARY OF THE PENSION BOARD
A motion was made to elect Mr. Les Forney as Secretary of the Pension
Board by Dr. Butler and seconded by Mr. Walker.
The motion was carried unanimously.
4. QUARTERLY INVESTMENT REPORT
The significant figures presented by Kidder Peabody with regard to the
Village's combined overall pension performance are detailed on the attached
page from the Kidder Peabody report which is made a permanent part of these
minutes. The combined equity and fixed income portfolio generated a
negative return for the quarter of -3.9% compared to a national median of
-2.2% on a time weighted basis. Ms.Cole reported the portfolio return for
the one year period ending September 30, 1986 was 18.6% which is slightly
under the national median of 21% for funds of similar asset structures.
Ms. Cole also suggested that it would be more convenient for Kidder Peabody
to schedule the quarterly Pension Board meetings in order to insure that
their paperwork was prepared on a timely basis.
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5. ANNUAL ACTUARIAL EVALUATION
Mr. Jim Rizzo and Ms. Glenda Rowland of Kruse, O'Connor & Ling presented
to the Board the actuarial evaluation report for the period ending
January 1, 1986. Mr. Rizzo reported that the Citys' annual contribution
had increased significantly to $266,262 compared to a prior year require-
ment of $177,745. Mr. Rizzo attributed this marked increase to a change
in actuarial assumptions - primarily to an increase in the salary
assumption from 3% to 6%. Mr. Rizzo further indicated that the figures
in this report should satisfy all the requirements set forth by the State
Department of Administration upon their review of the prior year's report.
Mr. Forney made a motion to accept the Actuarial report and it was seconded
by Mr. Walker.
The motion carried unanimously.
6. NCNB FEES
Mr. Forney reported that he had met with Mr. James Jackson of NCNB to
discuss the proposed fee structure for 1987. Mr. Forney advised the Board
that NCNB has agreed to retain the fee structure which the City has been
paying for the last two years through September 30, 1987. A motion was
made by Mayor Kirby to accept the proposal by NCNB and seconded by
Dr. Butler.
The motion carried unanimously.
7. OLD BUSINESS
Mr. Walker made a motion to approve the minutes of the August 26,1986
Pension Board meeting and the motion was seconded by Mayor Kirby.
The motion passed unanimously.
8. NEW BUSINESS
Mr. Forney recommended to the Pension Board that the entire Pension Plan
needed to be reviewed - both from a comparative benefit structure per-
spective as well as from a legal perspective. He advised the Board of his
intent to bring to them presentations by qualified individuals wishing to
undertake this task.
9. ADJOURNMENT
The motion for adjournment was made by Dr. Butler and seconded by
Mr. Walker.
The motion passed unanimously.
Karen Kirby, Mayo
ey, Jr., Secre
Investment
MIAMI SHORES VILLAGE
Employees Retirement Plan
guarter_Endina September 30,1986
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 426~,000 ( 9.8%)
Total $4,318,000
Management Structure
Eickhoff & Pieper:
Market Value for
Deposits:
9/30/86
$ 430,000
1.,939,000
1,741,000
551,433
$ 4,661,433
12/31/85 $ 1,545,958
636,000
Total $ 2,181,958
Market Value for 9/30/86 $ 2,352,607
Net Gain 170,649
Inception Date 8/28/85 $ 1,372,630
Deposit: 635,000
Net Deposits $ 2,008,630
Equities Only: Third Quarter (-8.7%)
NCNB:
Cash/Fixed Income as of 12/31/85 $ 2,346,042
Withdrawal. 786,925
Adjusted Value. 1,559,117
Cash/Fixed Income for 9/30/86 $ 1,756,883
Net Gain 197,766
111 Fixed Income Only: Third Quarter 2.3
Real Estate as of 12/31/85 $
Deposit.
Net Deposits
Real Estate for 9/30/86 ..$
Net Gain
Real Estate Only: Third Quarter 2.0%
Kidder, Peabody Co.
Incorporated
426,000
9.2,121
518,121
551,433
33,312
( 9.3%)
(41.6%)
(37.3%)
(11.8%)