Agenda
Transcript
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[0:09]
Puyallup City Clerk's Office: Yes.
[0:13]
Puyallup City Clerk's Office: The time is 11.03 a.m. on Tuesday, September 8th. City Clerk Dan Vessels is calling the Fire Pension Board meeting to order. I'll note for the record that we do have a quorum with, Finance Director Barbara Lopez and Member Gary Turner. So, do I have a motion to approve the agenda?
[0:33]
Puyallup City Clerk's Office: So moved. Second. All is there? Aye.
[0:38]
Puyallup City Clerk's Office: consideration of minutes from the June 9th meeting. I would like to have one correction. I would like it noted that the mayor did not attend.
[0:49]
Puyallup City Clerk's Office: We will make that adjustment.
[0:53]
Puyallup City Clerk's Office: Hold on.
[0:55]
Puyallup City Clerk's Office: Is there a motion to approve… to approve the agenda with the noted correction from Member Turner?
[1:03]
Puyallup City Clerk's Office: Move approval. I'll second. I'll look in favor? Aye. This might be good. I just heard the elevator. I did too, yeah. Could be. Give it a second.
[1:15]
Puyallup City Clerk's Office: It could… it could be… Kurt could be the individual that was… Yeah, they're okay. Yeah.
[1:22]
Puyallup City Clerk's Office: We've got security cameras. They don't see him anymore, but they don't know if he's in the elevator, so…
[1:38]
Puyallup City Clerk's Office: I don't hear anything, it's maybe somebody find out if there's…
[1:41]
Puyallup City Clerk's Office: All right, moving on to item 4A, the financial updates. Barbara?
[1:46]
Puyallup City Clerk's Office: Thank you. The financial update's pretty much the same. It's on page 3 of the packet. We did receive our fire insurance premium tax, which was just over $102,000 this year, so that's been steadily climbing.
[2:01]
Puyallup City Clerk's Office: It's an indication that fire insurance premiums have just been going up and up and up, but it does provide a good chunk of the funding necessary for this fund.
[2:11]
Puyallup City Clerk's Office: Interest income is still coming in pretty decently. We do expect, you know, our pension payments to be right around $200,000 for the year, and then there is the professional service other costs of $11,500. That is the actuarial cost of the actuarial report that we will be getting to here shortly. Fund is doing well. We've still got significant funding
[2:36]
Puyallup City Clerk's Office: moving.
[2:37]
Puyallup City Clerk's Office: towards the future, and as always, the city's responsible for paying these pensions regardless of the balance that's in that fund. What is the price in the actuary?
[2:48]
Puyallup City Clerk's Office: study. It is the $11,500, yeah, it is. And that's required every 2 years? It is required every 2 years by accounting standards. So, yeah, we have to pay for that every 2 years.
[3:04]
Puyallup City Clerk's Office: And again, the city would always be kicking in the money for that, to cover that particular piece of it.
[3:13]
Puyallup City Clerk's Office: If you've got any other questions, I'm happy to answer them.
[3:16]
Puyallup City Clerk's Office: I don't.
[3:18]
Puyallup City Clerk's Office: I will move her through the financial reports.
[3:21]
Puyallup City Clerk's Office: I circled the motion.
[3:22]
Puyallup City Clerk's Office: All those in favor?
[3:24]
Puyallup City Clerk's Office: Sorry.
[3:26]
Puyallup City Clerk's Office: And we'll move on now to 4B, the Pension Calculations.
[3:29]
Puyallup City Clerk's Office: So that starts on page 4, and it's pages 4, 5, and 6 are the backup for that. In July, as you're probably very well aware of, only, only trout's changes, and that's just based on a CPI, so that is what is reflective on this particular… in these particular documents.
[3:51]
Puyallup City Clerk's Office: So that change went in effect July 1st.
[3:55]
Puyallup City Clerk's Office: Any questions on that? None.
[3:59]
Puyallup City Clerk's Office: Have we ever… Did we send an inquiry? We did. Yeah, okay, because…
[4:05]
Puyallup City Clerk's Office: I think he's in Iowa or something like that, that we don't…
[4:08]
Puyallup City Clerk's Office: Yes, we did. Dana in HR has been sending them. I… when was it? It was… Him and, Floyd Butler. Yes, and she… she's had contact, I believe, with Floyd Butler, but I know she sent inquiries out. Okay.
[4:26]
Puyallup City Clerk's Office: Because, wait, with Barnhart, we had that issue, and… Yes. And with Barnhart,
[4:35]
Puyallup City Clerk's Office: It was… yes, it was an issue in that we did not do the… our due diligence in giving survivor benefits, yeah. They'd been married so many times that…
[4:46]
Puyallup City Clerk's Office: How many times is it divided? How do you… yes. So, we do have parameters in place for that, but yes, Dana's been planning on doing inquiries out at least once a year. Okay, thanks.
[5:01]
Puyallup City Clerk's Office: I move to, approve the pension calculations as of July 1st.
[5:07]
Puyallup City Clerk's Office: I second the motion. All those in favor? Aye.
[5:12]
Puyallup City Clerk's Office: And I don't foresee the actuarial valuation.
[5:16]
Puyallup City Clerk's Office: So, thank you, Dan. You attached the entire packet to it, and I'm not going to go over the entire thing. As I mentioned a minute ago, it is required every two years, and the liability of this fund is actually reported on our annual financial statements as a liability, and it's those financial statements that require the actuarial report every 2 years.
[5:41]
Puyallup City Clerk's Office: On… Page 8, just on the summary level, this valuation is as of January 1st, 2026.
[5:52]
Puyallup City Clerk's Office: So that's… that's when they… they picked the first day of that particular year as their valuation. So, whatever was in place at that particular point in time is the data that they used.
[6:04]
Puyallup City Clerk's Office: I don't think anything has changed since then, but that… that's the actual date of it.
[6:15]
Puyallup City Clerk's Office: Again, I'm not going to go through every single item on here. We need to. If you, so basically, just two real highlights on pages 12 and 13. Page 12,
[6:27]
Puyallup City Clerk's Office: It comes up with, down at the very bottom, it says total present value of future benefits, $2.173 million. That's the number that ends up on our financial reports as a future liability.
[6:40]
Puyallup City Clerk's Office: We've got approximately 45% of that on hand right now in the fund balance. We're not required to have it 100% funded in advance.
[6:49]
Puyallup City Clerk's Office: But we've got a good portion of it on hand.
[6:52]
Puyallup City Clerk's Office: And then on page 13 is just their… their prediction of what we will pay out in pension payments each year. And that gets updated
[7:05]
Puyallup City Clerk's Office: every two years. We don't take it as gospel. We actually have to go through all the calculations like we do, but they… they… they do this so that we've got a good idea moving forward.
[7:19]
Puyallup City Clerk's Office: 2055, I don't… My guess is that it won't be going quite that late, but I want y'all to stick around as long as y'all want to. So, there we go.
[7:34]
Puyallup City Clerk's Office: The rest of the report is basically just, like, backup information, their analysis, what they take a look at. Honestly, some of it's easier to follow than other pieces of it. Some of it can read, like, Greek actuarial… Action. Actuarial folks are very particular in how they word things.
[7:56]
Puyallup City Clerk's Office: But the rest of it is basically just backup data. We don't… we at the city don't do a ton with it. It's mostly those earlier amounts that we pay most attention to, so…
[8:10]
Puyallup City Clerk's Office: Happy to answer any other questions.
[8:12]
Puyallup City Clerk's Office: Okay.
[8:13]
Puyallup City Clerk's Office: I will move to, approve the actuarial evaluation as of,
[8:20]
Puyallup City Clerk's Office: Okay, great. This is January 1st?
[8:24]
Puyallup City Clerk's Office: I'll second it.
[8:26]
Puyallup City Clerk's Office: All those in favor? Aye. Aye.
[8:29]
Puyallup City Clerk's Office: Is there any other business for the good of the order?
[8:32]
Puyallup City Clerk's Office: Not that I'm aware of. I don't have anything.
[8:35]
Puyallup City Clerk's Office: Great. Then our next meeting is scheduled for Tuesday, December 8th, at 11 o'clock. I'll just note, for everyone here, do the holidays, instead of sending out my email 2 weeks prior, asking if there's anything to be put on, I'll probably do it 3 weeks. Two weeks prior to that, I believe, is the week of Thanksgiving. Everybody's gonna have family commitments going on, so you just may see that notification from me moved up, and then we'll publish
[8:59]
Puyallup City Clerk's Office: the agenda on December 1st, and we'll have that year-end meeting on December 8th.
[9:04]
Puyallup City Clerk's Office: And that will definitely be my last one, and I'm…
[9:08]
Puyallup City Clerk's Office: I'm guessing… I don't know whether Central Pierce is negotiating a new contract. No, I don't… no. I don't know, so I don't know if we'll have that. I know, because they added a shift, it's not going to be much of a pay raise problem. Okay. Well, they added a shift a year ago. Right.
[9:25]
Puyallup City Clerk's Office: You know, that… That was a 25%. Right.
[9:30]
Puyallup City Clerk's Office: So, it didn't help as retirees. No, it did not. So, just depending on how, you know, if we have those rates for 27, it may just be a very, very light… Well, yeah.
[9:43]
Puyallup City Clerk's Office: there is a basic on, you know, like on my pension, there's a minimum. Yes. Yeah. Yes. So, we will… and definitely planning on doing what it is now, moving forward, but depending on what happens with those pay schedules, we may or may not have updates, so…
[10:02]
Puyallup City Clerk's Office: Alright, as there's no other business, the time is 11-12, and the Fire Pension Board meeting for September 8th is adjourned. Well, thank you. Awesome, thank you.
[10:12]
Puyallup City Clerk's Office: And good luck on your…