02-10-1994 Regular MeetingMIAMI SHORES VILLAGE
PENSION BOARD MEETING
FEBRUARY 10, 1994
The meeting of the Village of Miami Shores Pension Board was called
to order by Mr. William Heffernan at 8:05 A.M. The following were
in attendance:
Board Members:
Richard Trumble
William Heffernan (Chairman)
Joseph Charles
Walter Latimer
Michael Couzzo, Jr.
Absent: Steven Johnson
Tim Dearden
Also present:
Patricia Varney,
Plan Administrator
William Fann,
Village Attorney
Joe Luksis
Karen Cole
Mike Callaway
Steve Palmquist
Don Bryant
Barbara Ochipinti
1. REPORT FROM DON BRYANT, BARNETT BANK
Mr. Don Bryant from Barnett Trusts reported that the account
return for the first quarter ending December 30, 1993, was .40%.
Fixed income return was -.05% compared to -.29% of Lehman
Government Group. The equity investment return was .78%
compared to 2.32% of S & P 500.
Mr. Bryant indicated that investment in the future will be
weighted more on the equity rather than on the fixed income
investment.
2. REPORT FROM JOE LUKSIS, SUN BANK
Mr. Joe Luksis reported that the total return for the first
quarter was 1.58%. The equity return for the quarter was
2.72% compared to 2.32% of S&P 500. Fixed income return
indicated a loss of -.19% compared to -.29% of Lehman G/C.
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3. MERRILL LYNCH REPORT BY MR. MIKE CALLAWAY
Mr. Callaway reported that for the quarter ending December 31,
1993, Sun Bank total portfolio return rendered the top 43% while
Barnett Bank rendered the bottom 18%. Barnett Bank's equities
portfolio was significantly underperformed when compared to
S&P 500 for the quarter. However, from inception date, that is
one and one half years of investment, the total return from
Barnett Bank is 10.7% which is close to the target index of
11.7%. As for Sun Bank, the return for the year and a half
was 13.2% rendering the top 28%.
4. PRESENTATION OF THE ACTUARY REPORT
Ms. Barbara Ochipinti from Kruse, O'Connor, & Ling presented to
the Board the summary of the Pension financial information
regarding the assets and liabilities of the plan. As of
September 30, 1993, the market value of the Miami Shores Village
Pension Plan shows an asset of $9,539,357.00.
Mr. Steve Palmquist, Actuary, of Kruse, O'Connor, and Ling,
indicated that the Miami Shores Village Pension Plan is in good
financial standing. The City contributions for fiscal year
1995 will be $208,080.00, a decrease of $9,305.00 when compared
to fiscal year 1994. The reduction in the cost is partly due to
the net investment return of 8.7%, while the assumption rate is
8%. Further, on the general employees, the cost went down from
1.3% of payroll to .57% of payroll which is also partly due to
the actual increase in salary, is lower than the assumption
rate. The police officer cost increased from 15.14% to 15.51%
of payroll which is still due to higher salary increase than
general employees and also increase in benefits.
Mr. Steve Palmquist indicated that when compared, the employer's
cost of the Miami Shores Village Pension Plan to other plans,
the Miami Shores Plan, especially for the general employees with
the cost of .57% of payroll is unheard of. As for the police,
the employer's contribution is in the teens, which is pretty
much in line with other plans.
5. REQUEST APPROVAL OF PAYMENT TO BARNETT BANK
Motion was made by Mr. Walter Latimer to approve payment in the
amount of $7,301.53 to Barnett Bank for management fees for
quarter ending December 31, 1993. It was seconded by Mr. Joseph
Charles. The motion was passed unanimously.
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6. REQUEST APPROVAL OF REIMBURSEMENT
Motion was made by Mr. Walter Latimer to approve reimbursement
to Miami Shores Village in the amount of $8,405 for services
rendered by Kruse, O'Connor and Ling through December 1993, and
seconded by Mr. Joseph Charles. With no discussion, the motion
was unanimously passed.
7. REQUEST APPROVAL OF PAYMENT TO SUN BANK
Motion was made for approval by Mr. Walter Latimer for payment
to Sun Bank in the amount of $8,685.44 for quarterly management
fees for period ending December 31, 1993, seconded by Joseph
Charles, and it was unanimously passed.
8. REQUEST FOR APPROVAL OF MINUTES FROM MEETING OF DECEMBER 16,
1993
Request was made by Mayor William Heffernan for approval of
minutes of the previous meeting on December 16, 1993. Motion
was made by Mr. Richard Trumble, seconded by Mr. Walter
Latimer, and it was unanimously passed.
9. OTHER BUSINESS
Mayor Heffernan was concerned about the management fees charged
by NCNB. Mr. Fann informed the Board that it is very expensive
for the City to take action by itself. Ms. Varney informed
the Board that Mr. Callaway had given her the name of an
attorney to contact with regard to this matter. That attorney
told Ms. Varney to get back in touch with him around March to
see if they will proceed with any legal action. Mayor
Heffernan requsted that Ms. Varney report this issue to the
Board at the next meeting.
10. The Meeting was adjourned at 9:30 AM.
Michael R. Couzz
. Secretary
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William Hef erna Mayor