East Central Reporter

City of Olney Fire Pension Board met Nov. 16.

Here are the minutes provided by the board:

AGENDA #1 CALL TO ORDER The City of Olney Fire Pension Board met in the Fire Station at 9:00 a.m. on November 16, 2023, with Daron Harmon, presiding.

AGENDA #2 ROLL CALL The following members were present: Fire Chief Rusty Holmes, Firefighter Daron Harmon, Firefighter Daniel Runyon, City Treasurer Jane Guinn, and Leon Stallard. City Clerk Kelsie Sterchi was also present.

AGENDA #3 APPROVE MINUTES FROM FIRE PENSION BOARD MEETING ON SEPTEMBER 21, 2023 Mr. Stallard moved to approve the Fire Pension Board minutes from September 21, 2023, seconded by Mrs. Guinn. A majority affirmative voice vote was received.

AGENDA #4 TREASURER’S REPORT

4-A “Discussion: Income and Expense May 1, 2023 – October 31, 2023” The Board was provided with a copy of an income and expense statement from May 1, 2023, through October 31, 2023.

Mrs. Guinn reported that she had just received the final tax levy payment, so that receipt was not reflected in this statement. Expenses were coming in a bit lower than the previous year. Mr. Stallard asked for the reason for a lowered expense amount. Mrs. Guinn replied that since the investments had been transferred to FPIF, Kemper CPA Group did not have to do as much work on the annual report.

Mrs. Guinn did not receive the October statement from FPIF in time for this meeting, so the cash balances reflected totals as of the end of September. An amount of $72,686.49 was in the First National Bank money market account with $47.19 in the checking account at TrustBank. The FPIF pool reported a total of $2,392,543.81 which would make total funds $2,465,277.49.

4-B “Investment Results Summary – September 30, 2023” Mrs. Guinn had not received an updated report from the FPIF since September’s statement, so that was what she provided. According to that statement, the beginning NAV for September was $2,432,718.07 with the ending coming in at $2,392,543.81. She had also contributed $49,000.00 just this month from the levy funds. Unrealized gain/loss was ($90,390.29).

Chief Holmes moved to approve the Treasurer’s Report, seconded by Mr. Stallard. A majority affirmative voice vote was received.

AGENDA #5 AUTHORIZE PAYMENT/REIMBURSEMENT OF INVOICES Mrs. Guinn was in possession of an invoice for fiduciary insurance in the amount of $8,896.00. Mr. Stallard asked if that type of insurance was shopped around. Mrs. Guinn replied that their carrier did shop around for this type of insurance.

Mr. Stallard moved to approve payment of the fiduciary insurance invoice in the amount of $8,896.00, seconded by Chief Holmes. A majority affirmative voice vote was received.

AGENDA #6 REVIEW/ACCEPT THE FOSTER/FOSTER ACTUARIAL REPORT After Mrs. Guinn submitted the annual report to the FPIF, they then transferred that information to the Foster/Foster actuaries for creation of the actuarial report. According to this year’s report, the total statutory contribution for next year should be about $105,000.00. Member contributions were estimated at $16,000.00, so the City would only be required to provide a minimum of $88,759.00.

Mr. Stallard asked how those amounts compared to last year. Mrs. Guinn replied that last year, the City was required to provide a minimum of $89,660.00 after member contributions. Also, the Fund was now 69.3% funded.

Mr. Stallard moved to accept the Foster/Foster actuarial report, seconded by Firefighter Runyon. A majority affirmative voice vote was received.

AGENDA #7 REVIEW/ACCEPT THE REQUIRED REPORTING TO MUNICIPALITY After receipt of the actuarial report, Mrs. Guinn must prepare the Required Reporting to Municipality. Once the Board approved this report, she would submit it to the Council. The actuarial value of the Fund came in at about $2,662,000.00 and showed a net income of $21,000.00. The assumed rate of return was 7.125%, but the actual rate of return was 0.92%. The prior year’s actual rate of return was a negative amount.

The Fund had three active employees that were contributing, three annuitants, two surviving spouses, and one deferred annuitant. The unfunded liability totaled approximately $1,180,000.00.

Mr. Stallard asked if the unfunded amounts were improving. Mrs. Guinn indicated that the underfunded amounts were slowly improving.

Chief Holmes moved to accept the Required Reporting to Municipality, seconded by Mr. Stallard. A majority affirmative voice vote was received.

AGENDA #8 REVIEW/APPROVE THE RECOMMENDED 2023/2024 TAX LEVY FOR THE FIRE PENSION FUND Mrs. Guinn reminded the Board that a minimum amount to be levied by the City for Fire Pension was $88,759.00. Expenses would total about $11,650.00. Mrs. Guinn also hoped to contribute an additional amount of $115,000.00. Last year, an additional $125,000.00 was contributed.

Overall, Mrs. Guinn recommended levying a total amount of $215,409.00. This would still leave a difference of about ($56,979.00), but Mrs. Guinn hoped to make up that amount in investments.

Firefighter Harmon had heard that the levy would increase by 4.99%. Mrs. Guinn indicated that the Fire Pension levy request would be included in the full City levy. The Council had set a cap of 4.99% at its last meeting, but Mrs. Guinn did not believe the levy would increase by that much.

Firefighter Runyon moved to approve the recommended 2023/2024 tax levy for the Fire Pension Fund, seconded by Chief Holmes. A majority affirmative voice vote was received.

AGENDA #9 APPROVE FIRE PENSION PAYMENT INCREASES EFFECTIVE JANUARY 1, 2024 State statute provided that annuitants shall get a 3% raise each year. Surviving spouses would see no additional increases.

Mr. Stallard moved to approve Fire Pension payment increases of 3% as of January 1, 2024, seconded by Firefighter Runyon. A majority affirmative voice vote was received.

AGENDA #10 RESOLUTION: APPOINT AUTHORIZED DELEGATES FOR THE ELECTRONIC FILING OF DOCUMENTS WITH THE INTERNAL REVENUE SERVICE Mrs. Guinn explained that the IRS now required all filing to be done electronically. In order to do this, an authorized delegate must be appointed. Because Tina Seessengood was the Payroll & Benefits Administrator, she would need to be designated as the authorized delegate.

Firefighter Runyon moved to approve FP2023-R-01, seconded by Mr. Stallard. A majority affirmative voice vote was received.

AGENDA # 11 PUBLIC COMMENTS/PRESENTATIONS No one from the public was present.

AGENDA #12 SCHEDULING OF NEXT MEETING The next meeting of the Fire Pension Board was scheduled for at 9:00 a.m. on March 14, 2024.

AGENDA #13 ADJOURN Mr. Stallard moved to adjourn, seconded by Firefighter Runyon. A majority affirmative voice vote was received.

The Fire Pension meeting adjourned at 9:17 a.m.

https://cms2.revize.com/revize/olneynew/NOV%2016%202023.pdf