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HomeMy WebLinkAboutBoards & Commissions - Firefighter's Relief Pension Board - 01/16/2024 • 40 Firefighters' Relief & Pension Board KENT Agenda WASH IN G T O N Board Members: Dana Ralph, Mayor, Kimberley A. Komoto, City Clerk, Councilmember Bill Boyce, Sam Grubbs, Retired Firefighter, Marvin Berg, Retired Firefighter Steven Barber, Alternate January 16, 2024 3:30 p.m. Click here to join the meeting Meeting ID: 214 757 276 929 Passcode: dR9MX7 Or call in (audio only) 872-239-8456 Phone Conference ID: 157 350 862 Item Description Action Speaker Time 1. Call to order Mayor Ralph 1 min 2. Roll Call Kim Komoto 1 min 3. Changes to the Agenda Yes Mayor Ralph 1 min MOVE TO APPROVE THE AGENDA 4. Approval of Minutes of July 18, 2023 Yes Mayor Ralph 1 min Move to approve the minutes of the meeting of July 18, 2023 5. INFO ONLY: Second and Third Quarter NO Paula Painter 5 min 2023 Financial Report 6. INFO ONLY: CPI Increase NO Susanne Shaw 2 min 7. Adjournment Yes Mayor Ralph 1 min Unless otherwise noted, the Firefighters' Relief and Pension Board meets quarterly at 3:30 p.m. in Kent City Hall, Mayor's Conference Room, 220 Fourth Avenue South, Kent, WA 98030. For additional information, please contact Kimberley A. Komoto at 253-856-5728 or via email at Kkomoto@KentWA.gov. Any person requiring a disability accommodation should contact the City Clerk's Office at 253- 856-5725 in advance. For TDD relay service call Washington Telecommunications Relay Service at 7-1-1. Firefighter's Relief and Pension Board July 18, 2023 Minutes Kent, Washington Pending Approval BOARD MEMBERS PRESENT: Mayor Ralph, Councilmember Thomas, Sam Grubbs, Marvin Berg and Kim Komoto. STAFF MEMBERS PRESENT: Courtney Black, Deputy Finance Director, Susanne Shaw, Senior Financial Analyst. 1. Call to Order The meeting was called to order at 3:32 p.m., with Mayor Ralph presiding. 2. Roll Call Mayor Dana Ralph - Present Councilmember Les Thomas - Present Kim Komoto - Present Sam Grubbs - Present Marvin Berg - Present Alternate, Steven Barber - Absent 3. Changes to the Agenda None. Thomas moved to approve the agenda as presented, seconded by Grubbs. The motion passed unanimously with a vote of 5-0. 4. Approval of Minutes Thomas moved to approve the minutes dated January 17, 2023, seconded by Grubbs. The motion passed unanimously with a vote of 5-0. S. INFO ONLY: Position No. 2 Election Update Komoto advised the recent election resulted in Marvin Berg being reappointed to Position No. 2 for a term that will expire on June 30, 2025. Additionally, Berg advised that this will be his last term. 6. INFO ONLY: LEOFF 1 COLA Senior Financial Analyst, Susanne Shaw provided details on the LEOFF 1 COLA increase of 8.81% that went into effect on April 1, 2023. This lowered the City's obligation. 7. INFO ONLY: Pension Changes Effective July 1, 2023 Senior Financial Analyst, Susanne Shaw provided details on the CPI increase. There are no beneficiaries that are in the CPI Group. 8. INFO ONLY: FINANCIAL REPORTS Deputy Finance Director, Courtney Black provided details on the 5-Year Cash and Investments through December 31, 2022 and pointed out the decrease since the same period in 2021. Black detailed the investment portfolio. Black reviewed the Statement of Revenues and Expenses through December 31, 2022 and provided details on the Fire Insurance Premium Tax and Interest Income. Page 11 Firefighter's Relief and Pension Board July 18, 2023 Minutes Kent, Washington Pending Approval Black provided details on the Cash and Investments through March 31, 2023 and pointed out the decrease since the same period in 2022. Black detailed the investment portfolio. Black reviewed the Statement of Revenues and Expenses through March 31, 2023 and provided details on the Interest Income and pension expenses, including health insurance costs. 6. Adjournment At 3:44 p.m., Mayor Ralph declared the meeting adjourned. Kimberley A. Komoto Firefighter's Relief and Pension Board Secretary July 18, 2023 Page 12 • KEN T W A 5 H I N G T O N CITY OF KENT FIREMEN'S RELIEF & PENSION TRUST FUND FINANCIAL REPORT June 2023 MANAGEMENT REPORTS Cash and Investments as of June 30, 2023 5-year comparison and breakdown of current investments 1 Statement of Revenues and Expenses for the Six Months Ended June 30, 2023 2 Date Presented: 01/16/2024 City of Kent Firemen's Relief& Pension Trust Fund #6200 Cash & Investments June 30, 2023 Five-Year Comparison • Total Gash and Investments have increased since the same period in 2022, primarily due to the increase in interest revenue and the Fire Insurance Premium Tax- i The Local Government Investment Pool (LGIP)was earning 5.199% at the and of the second quarter. In June of 2022 it was earning 1.013%. i At the end of the 2°d quarter 2023, our managed investment portfolio was earning 1.730%. In ,tune of 2022 the portfolio was earning 1.130%. 6/30/19 6/30/20 6/30/21 6/30/22 6/30/23 CASH&INVESTMENTS Cash in Checking&LGIP $ 933,819 39.88% $ 1,222,905 51.74% $ 907,902 39.16% $ 916,190 40.35% $ 1,051,250 45.19% Investments,at Cost 1,407,472 60.12% 1,140,536 48.26% 1,410,519 60.84% 1,354,633 59.65% 1,274,806 54.81% TOTAL CASH&INVESTMENTS $ 2,341,291 100.00% $ 2,363,441 100.00% $ 2,318,421 100.00% $ 2,270,823 100.00% $ 2,326,056 100.00% LIABILITIES AND RETAINED EARNINGS Accrued Expenses $ 7,363 0.31% $ 7,421 0.31% $ 7,241 0.31% $ 7,339 0.32% $ 4,533 0.19% Held in trust for Pension Benefits 2,333,928 99.690/6 2,356,020 99.69% 2,311,180 99.69% 2,263,484 99.68% 2,321,523 99.81% TOTAL LIABILITIES&RETAINED EARNINGS $ 2,341,291 100.00% $ 2,363,441 100.00% $ 2,318,421 100.00% $ 2,270,823 100.00% $ 2,326,056 100.00% CITY OF KENT I FIREMEN'S RELIEF AND PENSION FUND INVESTMENTS June 30,2023 S44,635 Purchase Investment Date Security Description Yield Maturity Total $1,274X6 $1,006.615 06I30123 Cash in Checking NIA $ 44,635 06/30/23 Local Gov't Investment Pool 5.199% Overnight $ 1,0065616 06/30/23 Other Investments 1-730% 771 Days $ 1,274,806 $ 2,326,056 (The weighted average maturity fot the LGIP is less than 60 days and quickly reflects current market conditions) ■Cash in Checking (The Long-Term Portfolio has maturites up to five years and is slower to reflect the higher interest rates in the current market) ■Local Gov't Investment Pool Other Investments Date Presented: 01/16/2024 City of Kent Firemen's Relief and Pension Trust Fund #6200 Statement of Revenues and Expenses For the Six Months Ended June 30 Five-Year Comparison The Fire Insurance Premium Tax revenge was $370,230 this year, an increase from $337,940 in 2022. • Year to date expenses have decreased from the same period in the prior year. 6/30/19 6/30/20 6/30/21 6/30/22 6/30/23 OPERATING REVENUES Interest Income $ 15,317 4.77% $ 26,488 8.15% $ 12,358 3.87% $ 6,879 1.99% $ 28,397 7.12% Fire Insurance Premium Tax 305,467 95.22% 298,650 91.85% 306,966 96.13% 337,940 98.00% 370,230 92.88% TOTAL REVENUES $ 320,784 100.00% $ 325,138 100.00% $ 319,324 100.00% $ 344,819 100.00% $ 398,627 100.00% OPERATING EXPENSES Pension Payments to Retirees 91,880 47.07% 90,767 44.62% 88,256 45.87% 98,233 45.73% 72,616 38.92% Health Insurance 100,000 51.23% 100,000 49.16% 100,000 51.98% 100,000 46.55% 110,000 58.97% Actuarial Study and Other Expense 3,300 1.69% 12,634 6.21% 4,139 2.15% 16,574 7.72% 3,949 2.12% TOTAL EXPENSES $ 195,180 100.00% $ 2039401 100.00% $ 1929395 100.00% $ 214,807 100.00% $ 186,565 100.00% NET INCOME(LOSS) $ 125,604 $ 121,737 $ 126,929 $ 130,012 $ 212,063 Date Presented: 01/16/2024 2 • KEN T W A 5 H I N G T O N CITY OF KENT FIREMEN'S RELIEF & PENSION TRUST FUND FINANCIAL REPORT September 2023 MANAGEMENT REPORTS Cash and Investments as of September 30, 2023 5-year comparison and breakdown of current investments 1 Statement of Revenues and Expenses for the Nine Months Ended September 30, 2023 2 Date Presented: 01/16/2024 City of Kent Firemen's Relief&Pension Trust Fund#6200 Cash &Investments September 30, 2023 Five-Year Comparison • Total Cash and Investments have increased since the same period in 2022, primarily due to the increase in interest revenue and the Fire Insurance Premium. • The Fire Relief & Pension Fund owns a portion of the City's investment portfolio. • At the end of the 3rd quarter 2023, our Ion g-teirn portfoiio was earning 1.870%. The investments in this portfolio have maturities up to 5 gears. The average yield reacts slower to market changes. Our shark-term portfolio was earning 5.385% at the end of the 3rd quarter. This portfolio has average maturities of 60 days. The yields react to market changes very quickly. 9/30119 9/30/20 9/30/21 9/30/22 9/30/23 CASH&INVESTMENTS Cash in Checking&LGIP $ 1,328,787 58.91% $ 1,113,705 48.84% $ 650,338 29.16% $ 873,104 39.93% $ 988,283 43.68% Investments,at Cost 926,901 41.09% 1,166,455 51.16% 1,579,641 70.84% 1,313,745 60.07% 1,274,248 56.32% TOTAL CASH&INVESTMENTS $ 2,255,688 100.00% $ 2,280,160 100.00% $ 2,229,979 100.00% $ 2,186,849 100.00% $ 2,262,531 100.00% LIABILITIES AND RETAINED EARNINGS Accrued Expenses $ 7,424 0.33% $ 7,462 0.33% $ 7,241 0.32% $ 6,106 0.28% $ 5,033 0.22% Held in trust for Pension Benefits 2,248,264 99.67% 2,272,698 99.67% 2,222,738 99.68% 2,180,743 99.72% 2,257,498 99.78% TOTAL LIABILITIES&RETAINED EARNINGS $ 2,255,688 100.00% $ 2,280,160 100.00% $ 2,229,979 100.00% $ 2,186,849 100.00% $ 2,262,531 100.00% CITY OF KENT FIREMEN'S RELIEF AND PENSION FUND INVESTMENTS September 30,2023 $111 Purchase Investment $1,274,248 $970,692 Date Security Description Yield Maturity Total 09/30/23 Cash in Checking N/A $ 17,591 09/30/23 Local Gov't Investment Pool 5.385% Overnight $ 970,692 09/30/23 Other Investments 1.870% 727 Days $ 1,274,248 $ 2,262,531 ■Cash in Checking ■Local Gov't Investment Pool (The weighted average maturity fot the LGIP is less than 60 days and quickly reflects current market conditions) (The Long-Term Portfolio has maturites up to five years and is slower to reflect the higher interest rates in the current market) Other Investments Date Presented: 01/16/2024 1 City of Kent Firemen's Relief and Pension Trust Fund#6200 Statement of Revenues and Expenses For the Nine Months Ended September 30 Five-Year Comparison • Interest earnings have increased significantly overthe prior year. The Fire Insurance Premium Tax revenue was larger than the prior year_ • Year to date expenses have decreased from the same period in the prior year_ 9/30/19 9/30/20 9130/21 9/30/22 9/30/23 OPERATING REVENUES Interest Income $ 24,196 7.34% $ 38,391 11.39% $ 17,721 5.46% $ 12,942 3.69% $ 47,299 11.33% Fire Insurance Premium Tax 305,467 92.66% 298,650 88.61% 306,966 94.54% 337,941 96.31% 370,230 88.67% TOTAL REVENUES $ 329,663 100.00% $ 337,041 100.00% $ 324,687 100.00% $ 350,883 100.00% $ 417,529 100.00% OPERATING EXPENSES Pension Payments to Retirees 136,423 47.09% 135,539 45.39% 131,702 46.02% 134,869 44.42% 100,312 37.22% Health Insurance 150,000 51.77% 150,000 50.23% 150,000 52.41% 150,000 49.41% 165,000 61.23% Actuarial Study and Other Expense 3,300 1.14% 13,088 4.38% 4,498 1.57% 18,743 6.17% 4,179 1.55% TOTAL EXPENSES $ 289,723 100.00% $ 298,627 100.00% $ 286,200 100.00% $ 303,612 100.00% $ 269,491 100.00% NET INCOME(LOSS) $ 39,940 $ 38,414 $ 38,487 $ 47,271 $ 148,037 Date Presented: 01/16/2024 2