The meeting began with a presentation on the annual expenditure reports for the pension systems, focusing on the necessity to determine the annual required contributions for the next fiscal year. The funded ratios of the systems as of October 1, 2023, were scrutinized, and the major drivers of change between the 2022 and 2023 valuations were discussed. The importance of funding the assets currently to prevent unfunded liability was a point of emphasis.

A detailed examination of the impact of substantial salary increases on liabilities revealed a dramatic increase relative to assumptions. The board deliberated over the market value of assets, mortality gains, and retirement gains for both general employees and police officers. The general employees and police officers were shown to move away from a 100% funded ratio, while the firefighters exhibited an improvement. The need for investment performance discussions was highlighted due to the projected increase in contribution requirements. Additionally, the adoption of a new mortality table and its potential implications were addressed.

The board also received a presentation from the senior audit manager and partner on the engagement, who shared the opinion on the financial statements and associated required communications. The net position restricted for available benefits was reported to have increased for all employee groups, with a notable 11.2% increase for firefighters. The board approved the report, stressing the significance of making contributions and the benefits of small excesses in contributions.

An institutional investor provided the financial report, shedding light on the fund assets’ performance, which showed a cumulative assumed return of approximately $17 million and the growth of assets to over $121 million. The portfolio’s 22.52% return over six months and its outperformance were discussed, along with the performance of individual managers. The board also reviewed a draft of the Investment Policy Statement (IPS), which proposed adjustments to the asset allocation and the inclusion of alternative asset classes such as private equity. The potential impacts of these changes on liquidity, administrative complexities, and reporting were considered, with the board ultimately deciding to conduct further investigation before implementing any decisions.

The discussion then touched on the timing of receiving material from auditors for valuation purposes and the performance of portfolios in comparison to benchmarks. Challenges faced by the real estate portfolio due to interest rate hikes and the lack of transaction activity were mentioned. The board also discussed the budget for the upcoming year, the expected rate of return for the portfolio, and software updates.