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02-09-1995 Regular MeetingMIAMI SHORES VILLAGE PENSION BOARD MEETING FEBRUARY 9,1995 The meeting of the Miami Shores Village Pension Board was held on February 9, 1995, at the Miami Shores Village Hall. The meeting was called to order by Mr. William Heffernan at 8:06 iA.M. The fbsowing were in attendance: Board Members: William J. Heffernan, Chairman Richard Trumble Tim Dearden Joseph Charles Absent: Also present: Michael R. Couzzo, Jr. Steve Johnson Walter Latimer Patricia Varney, Plan Administrator William Fann, Village Attorney Don Bryant, Barnett Bank Trust Jeff Swanson, Merrill Lynch Karen Cole, Merrill Lynch Phillip Robert, Sun Bank Raymond Dunleavy, Sun Bank Stephen Palmquist, Kruse, O'Connor & Ling 1. REPORT FROM JEFF SWANSON, MERRILL LYNCH Mr. Swanson from Merrill Lynch reported that for the quarter ending December 31, 1995, earnings were down due to a difficult quarter. The composite return was down 0.8% for the quarter. For the year, the total return was -2.8%. Sun Bank's total portfolio earned a -1.2% return and ranked in the bottom 28% of other funds for the quarter. Barnett's total return of -0.5% ranked in the 50 percentile. Sun Bank's total equity portfolio was down 2.3% versus a flat market. Barrett's equity portfolio underperformed the S&P 500 with a -1.4% return. For the 2.5 year period since inception of Sun and Barnett, the fund returned 4.8% on average ranking in the bottom 26%. The equity portfolio trailed the S&P 500 by 1.0% and the bond portfolio met the index. 2. REPORT FROM DON BRYANT, BARNETT BANK Mr. Don Bryant reported that the account's total market value ending 12/31/94 was $4,399,972. The account return for the year was -3.19%, while for the quarter it was down 0.50%. The fixed income return for the year was -3.07% compared to -3.51% of Lehman G/C. For the quarter, the fixed income return was 0.59% compared to 0.37% of Lehman G/C. The equity investment return indicated a loss of 3.04% for the year compared to 1.31% of S&P 500. Equity comparison for the quarter was down 1.36% compared to 0.00% of S&P 500. Mr. Bryant indicated that for 1995 performance prospects for the fixed income portfolio will depend on the rate change. 3. REPORT FROM PHILLIP ROBERT, SUN BANK Mr. Phillip Robert reported that the total account return for the year was down 2.1%, while for the quarter there was a loss of 1.1%. The equity return for the year was -1.8% compared to 1.3% of the S&P 500. For the quarter, its return was -2.3% compared to 0.0% of the S&P 500. The fixed income portfolio was up 0.9% for the quarter compared to 0.4% of Lehman G/C. Mr. Robert indicated that a value fund had been added to the portfolio. 4. PRESENTATION OF '1 Hl; ACTUARY REPORT - STEPHEN PALMQUIST Mr. Stephen Palmquist from Kruse, O'Connor and Ling, Inc. presented the summary of the Pension financial information regarding the assets and liabilities of the plan. As of September 30, 1994, the market value of the Miami Shores Village Pension Plan shows an asset of $9,380,878.00. As of September, 1994, the investment return was down -1 to -2 %. It produced an actuarial loss of over $800,000 for the year. The actuarial gains from lower payroll increases and turnover were not enough to make-up for the poor investments for the year. Also, state revenue has not increased due to the inability of growth of the city. Therefore, due to the losses last year, the city cost increased by 1% to make-up for these losses. However, assets are still greater than the Pension Benefit Obligation for the year. The city cost as a percentage of payroll has gone up 0.6%. The employer contribution for the fiscal year ending 9/30/94 was $227,278.00. • 5. REQUEST APPROVAL OF PAYMENT TO KRUSE, O'CONNOR & LING Motion was made by Mr. Tim Dearden to approve payment in the amount of $4,519.00 to Kruse, O'Connor & Ling for services rendered. It was seconded by Mr. Richard Trumble. The motion was passed unanimously. 6. REQUEST APPROVAL OF PAYMENT TO BARNETT BANK Motion was made by Mr. Tim Dearden to approve payment for quarterly management fees to Barnett Bank in the amount of $7,369.95 for the period ending December 31, 1994. The motion was seconded by Mr. Richard Trumble and it was passed unanimously. 7. REQUEST APPROVAL OF PAYMENT TO SUN BANK Motion was made by Mr. Tim Dearden for approval of payment to Sun Bank in the amount of $8,972.42 for quarterly management fees ending December 31, 1994. The motion was seconded by Mr. Richard Trumble and passed unanimously. 8. REPORT FROM PLAN ADMINISTRATOR Ms. Varney reported that NCNB has lowered the management fees from 1.5% to 1% beginning the quarter ending 12/31/93. Mayor Heffernan asked Ms. Varney to write another letter to NCNB stating that the Board still objects to the fees being charged to us. 9. REQUEST APPROVAL OF MINUTES FROM DECEMBER 14, 1995 MEETING Mr. Joseph Charles moved to approve the minutes of the December 14, 1994 Pension Board Meeting. It was seconded by Mr. Richard Trumble. It was passed unanimously. 10. THE MEETING WAS ADJOURNED AT 9:46 AM.