HomeMy WebLinkAboutExhibit AComposite Exhibit A:
GESE Board of Trustees approval on May 29, 2020
and
Trustees subsequent amendment approval on July 24, 2020
of the GESE Retirement Trust Fund budget for Fiscal Year 2020-2021,
with all attachments thereto,
and the required City Budget Form
GESE Retirements and Deaths — Exhibit B - Mr. Hernandez stated
that there were 15 retirement checks with a total of $127,193.94. There
were 35 demises, 3 of which were Covid-19 related. Year to date there
have been 50 deaths, of which 38 were retirees and 12 were
beneficiaries. In addition, year to date there have been 21 retirements.
This number has increased slightly. Some discussion took place.
Vice -Chair Taylor moved to approve. Trustee Simmons seconded
the motion. The motion was unanimously approved.
ADMINISTRATOR'S REPORT:
Ratify Comprehensive Annual Financial Report for fiscal year ended
September 30, 2019 - Mr. Hernandez stated that the Board approved
the Financials back in January 31, 2020. It was to be approved by the
Board at the March meeting; however, that meeting was cancelled. The
CAFR has been submitted to GFOA and a motion to ratify is necessary.
Some discussion took place. Trustee Simmons moved to ratify the
CAFR with minor edits. Trustee Fernandez seconded the motion.
The motion was unanimously approved.
Proposed GESE Plan budget for fiscal year October 1, 2020, to
September 30, 2021 — Mr. Hernandez stated that the overall objective
was to keep the budget the same as last year. The total administrative
budget decreased from last year's budget. In the budget there were two
merit increases and one promotion due to the departure of the Chief
Accountant. A lengthy discussion took place. Mr. Hernandez stated that
health and dental insurance remained flat. Mr. Hernandez went over
each line item. Additional discussion on the budget took place, as well
as discussion regarding monies the Trust paid out to a deceased retiree
who may have passed away out of the country. Trustee Simmons
moved to authorize Ron Silver to take all necessary legal actions to
recoup our money and bring legal action to those involved. Trustee
Lugo seconded the motion. The motion was unanimously approved.
Mr. Hernandez informed the Board that Mr. Alcime, who we were
searching for to pay benefits due to him, was found. He passed away
January of this year. We are trying to contact his daughter, who was the
informant on the death certificate to pay out the monies in his estate.
Mr. Hernandez went back to discussing the budget. The Actuarial
3
Funding Requirement increased by approximately $2.6 million. Mr.
Hernandez asked for a motion to approve the GESE budget totaling
$3,050.77. Trustee Simmons moved to approve. Trustee Fernandez
seconded the motion. Some discussion took place. After a type-o on
the budget was noted, Trustee Fernandez moved to table the GESE
Budget. Trustee Simmons seconded the motion. The motion was
unanimously approved.
Proposed Excess Plan budget for fiscal year October 1, 2020, to
September 30, 2021 — Mr. Hernandez stated that the Excess Budget is
a percentage of the GESE Budget. We are not allowed to pay fees
incurred by the Excess Plan from the GESE Trust. The Total
Administrative Costs decreased by 2.5% from $113,712 to $110,903.
Trustee Fernandez moved to approve. Trustee Simmons seconded
the motion. Some discussion took place. A roll -call vote reflected
everyone voting "yes" except for Vice -Chair Taylor who was on
mute for the motion. The motion was unanimously approved.
Proposed Disaster Recovery Plan — Mr. Hernandez stated that this was
a disaster preparedness plan, typically in case of a hurricane. Planning
for a scenario like a hurricane allows us to continue services with the
least possible interruptions. There are minor updates throughout, where
we added wording regarding "emergency events" like the pandemic.
Mr. Hernandez went over the changes and asked for a motion to
approve. Trustee Fernandez moved to approve the Disaster
Recovery Plan with minor edits. Trustee Graves seconded the
motion. The motion was unanimously approved.
4
Proposed GESE Plan budget for fiscal year October 1, 2020, to
September 30, 2021 - (Continued)
Mr. Hernandez stated that the numbers on the budget have been
corrected and were online. Some discussion took place. Trustee
Simmons moved to approve the budget with corrections.
Chairman Moy seconded the motion. A brief discussion took place.
Trustee Simmons suggested placing a disclaimer/footnote regarding the
savings discussed and the steps. A roll -vote reflected trustees Lugo,
Torres and Sharpe voting "no" on the motion. Chairman Moy,
Vice -Chair Taylor, Trustees Graves, Jimenez, Simmons and
Fernandez voted "yes" on the motion. The motion passed 6 to 3.
BREAK.
MONEY MANAGERS' REPORT:
Barings presented by Ms. Ashley Hyotte and Mr. Jon Greenhill - Ms.
Hyotte reported that for the three month period ended on April your
portfolio outperformed the benchmark by 6.1% gross of fees. Year to
date through April, and the one year period, your portfolio has
outperformed by 4.7% gross of fees. For the 3 year period you had a
return close to 3%. For the 5 year period, you had a return of close to
3.4%. Mr. Greenhill went over Barings' strategy and holdings. Ms.
Thompson asked what was their month to date performance. Ms.
Hyotte responded they are up for the month but trailing on a relative
basis. Some discussion took place. This report concluded. No action
was taken.
8
City of Miami GESE Retirement Trust
Budget Template FY 2020-21 Proposed Budget
FY 2016-17 Actual
FY 2017-18 Actual
FY 2018-19 Actual
FY 2019-20 Budget
FY 2019-20 Projection
FY 2020-21 Proposed
Approved budget
Difference
Number of Full -Time Positions
10
10
10
11
9
9
Approved budget
$3,440,031.00
$3,377,792.00
$3,274,749.00
$3,051,580.00
$3,051,580.00
No
Commissioner Approved Budget Grand
Total
$3,440,031.00
$3,377,792.00
$2,824,749.00
$3,051,580.00
$3,051,580.00
$3,068,775
Expenditures
9/30/2017
9/30/2018
9/30/2019
9/30/2020
9/30/2020
9/30/2021
Regular Salary and Wages
$731,658
$810,585
$735,044
$787,109
$787,109
$740,750
-6%
Board Members Salaries
$0
$0
$0
$0
$0
$18,000
-
Fringe Benefits
$6,000
$6,000
$6,023
$6,000
$6,000
$6,000
0%
FICA Taxes
$52,997
$54,380
$52,107
$72,450
$72,450
$67,946
-6%
Retirement Contributions
$293,648
$276,246
$273,659
$263,096
$263,096
$293,777
12%
Life and Health Insurance
$217,514
$194,132
$191,153
$226,782
$226,782
$224,871
-1%
Workers' Compensation
$2,153
$2,426
$2,012
$3,500
$3,500
$3,500
0%
Professional Services - Legal
$95,112
$147,342
$127,735
$144,000
$144,000
$138,000
-4%
Professional Services
$617,314
$662,702
$536,795
$566,281
$566,281
$608,655
7%
Accounting and Auditing
$67,145
$74,515
$47,500
$70,000
$70,000
$72,000
3%
Other Contractual Services/ Medical
advisors
$1,149
$218
$109
$7,500
$7,500
$7,500
0%
Travel and Per Diem
$29,292
$37,523
$45,720
$25,000
$25,000
$25,000
0%
Communications and Related Services
$25,416
$41,284
$29,081
$33,708
$33,708
$33,846
0%
Postage
$14,176
$14,376
$9,026
$15,000
$15,000
$15,000
0%
Utility
$20,497
$21,912
$23,412
$32,596
$32,596
$30,157
-7%
Rentals and Leases
$16,942
$17,778
$20,428
$25,000
$25,000
$26,700
7%
Building Repair and Maintenance
$84,761
$136,038
$193,818
$213,065
$213,065
$211,065
-1%
IT Maintenance
$228,987
$271,055
$203,297
$350,950
$350,950
$333,711
-5%
Printing and Binding
$4,710
$1,343
$4,907
$11,500
$11,500
$11,600
1%
Advertising and Related Costs
$1,880
$4,148
$2,153
$4,500
$4,500
$4,500
0%
Office Supplies
$29,787
$92,483
$23,605
$45,000
$45,000
$45,000
0%
Operating Supplies
$361
$100
$653
$400
$400
$500
25%
Subscriptions, Memberships, and Licenses
$3,406
$3,313
$3,188
$4,650
$4,650
$4,555
-2%
Insurance
$144,065
$155,960
$186,745
$50,493
$50,493
$56,642
12%
Insurance deductible In Case of loss/ ex:
Hurricane
$0
$0
$0
$0
$0
$0
-
Capital Projects and Purchases
$52,696
$47,610
$44,495
$48,500
$48,500
$44,500
Depreciation / Use Allowance
$44,054
$44,054
$44,054
$45,000
$45,000
$45,000
0%
Budget Reserve
$0
$0
$0
$0
$0
$0
-
Expenditure Grand Total
$2,785,717
$3,117,521
$2,806,718
$3,052,080
$3,052,080
$3,068,775
0.5%
Printed: 7/31/2020 4:31 PM
Page 1 of 1
CR
Approved -Amended GESE Budget by the Board of Trustees on July 24, 2020
For the fiscal year ending September 30, 2021
The following budget represents the fiscal year 2020-21 financial requirements necessary to support
the approximately $733 8 million GESE Trust Fund, which serves 4,215 members as of Fiscal year 2019
Personnel Services
Regular Salary & Wages
Pension Administrator
Treasurer
Benefit/Accountant (T)
Administrative Assistant III
Payroll Specialist B
Benefits Specialist
Data Benefit Analyst
Senior Fund Accountant
Office/Facility Attendant
Administrative Aide
New Hire
Total Salaries
ORACLE 2019/2020 2020/2021
BOARD APPROVED
OBJECT APPROVED BOARD
CODE BUDGET BUDGET Diff. $
512000
**Board implemented a strategic plan to reduce Personnel expenses
164,887
68,080
64,675
72,990
56,987
58,447
52,887
52,492
37,706
36,678
65,000
169,835
68,080
60,000
72,990
56,987
63,211
57,198
60,720
39,592
40,346
0
$730,829 $688,959 ($41,870) -5.7%
Special Pay (OT & Balance Payout) 512000 30,000 30,000
Deferred Compensation 26,280 21,791
Total Salaries & Wages $787,109 $740,750
Board Members Salaries 511000 0 $18,000
Fringe Benefits:
Car Allowance 516000 6,000 6,000
Payroll Taxes (Includes FICA, SUTA, FUTA) 521000 72,450 67,946
Retirement Contributions 522000 263,096 293,777
(Assumes one lump sum GESE Staff & Two Excess Payments)
Life, Health & Dental Insurance 523000 226,782 224,871
Workers' Compensation 524000 3,500 3,500
Total Personnel Services
Professional Services
$1,358,937 $1,354,844
Investment Consultant 531000 247,777 278,477
Consulting Actuary 176,000 177,500
Special Consulting Actuary 20,000 20,000
Computer Specialists 103,510 107,000
Other (Banking Fees, Paychex, Death Audit) 18,994 25,678
Total Professional Services 531000 566,281 608,655
($4,093) -0.3%
Legal Fees 531010 144,000 138,000
Medical Advisors and Specialists 531020 7,500 7,500
Auditing Services 532000 70,000 72,000
Total Professional Services $787,781 $826,155 $38,374 4.9%
Budget Summary 2020-21
1 EH 7/31/2020 3:09 PM
Approved -Amended GESE Budget by the Board of Trustees on July 24, 2020
For the fiscal year ending September 30, 2021
ORACLE 2019/2020 2020/2021
BOARD APPROVED
OBJECT APPROVED BOARD
CODE BUDGET BUDGET Diff. $
Office & Administrative
Travel and Training (Conference Per Diem) 540000 25,000 25,000
Communications & Related Services 541000 33,708 33,846
(Office phones, Cellphone allowances, and Internet) 541100
Postage & Courier 15,000 15,000
Printing and Binding 547000 11,500 11,600
(TAX forms, Retiree Payrolls, Annual Statements)
Advertising & related costs 551000 4,500 4,500
Office Supplies+ Meeting Expenses 552000 45,000 45,000
Operating Supplies (Death Certificates & Notary) 554000 400 500
Subscriptions, Memberships, Licenses 4,650 4,555
Total Office & Administrative $139,758 $140,001 $243 0.2%
Insurance & Occupancy
Insurance (Commercial Property & Liability)
Total Insurance
$50,493 $56,642
$6,149 12.2%
Utility Services (Electricity, Water, Garbage) 543000 32,596 30,157
Rentals & Leases 544000 25,000 26,700
IT Repair & Maintenance Services 546001 350,950 333,711
Building Repair, Maintenance & Capital Outlays 546000 172,000 170,000
Building Insurance Ded (Hurricane repairs) 546000 41,065 41,065
Bldg Use Allowance /Depreciation 559000 45,000 45,000
Machinery & Equipment 664000 48,500 44,500
Total Insurance & Occupancy $715,111 $691,133 ($23,978) -3.4%
TOTAL ADMINISTRATIVE COSTS $3,052,080 $3,068,775 $16,695 0.5%
(Detailed ofAdmin Budget Items on Exhibit A)
ACTUARIAL FUNDING REQUIREMENT 522000 $51,506,047 $54,121,724
(Assumes one lump sum payment)
Budget Summary 2020-21
2 EH 7/31/2020 3:09 PM