OFFICE OF THE CITY COUNCIL

117 WEST DUVAL STREET, SUITE 425

4^TH FLOOR, CITY HALL

JACKSONVILLE, FLORIDA 32202

904-630-1377

Finance Committee Special Meeting Minutes

June 21, 2017

Immediately following 9:00 a.m. Finance Committee meeting

Topic: Police and Fire Pension Fund administration report

Location: City Council Chamber, 1^st floor, City Hall – St. James Building, 117 West Duval Street

In attendance: Council Members Anna Lopez Brosche (Chair), Matt Schellenberg, Greg Anderson, Katrina Brown, Bill Gulliford, Sam Newby

Excused: Council Member Aaron Bowman

Also: Kyle Billy and Kim Taylor – Council Auditor’s Office; Peggy Sidman– Office of General Counsel; Jeff Clements – Council Research Division; Crystal Shemwell and Adri Segui – Legislative Services Division; Jordan Elsbury – Mayor’s Office; Tim Johnson – Executive Director, Police and Fire Pension Fund

Meeting Convened: 11:39 a.m.

Chairwoman Brosche called the meeting to order and called on Tim Johnson, Executive Director of the Police and Fire Pension Fund (PFPF), to make the presentation. Mr. Johnson made a PowerPoint presentation covering three topics: the PFPF’s vision, values and transformational journey. The vision of the PFPF is to be “A solution that delivers value to all stakeholders.” The values include: governance, transparency, solvency, education and outreach. The transformational journey includes establishment of the value statement in FY16, erection of structures based on those values in FY17, execution of reforms in FY18, and exporting the model in FY19 and beyond.

In response to a question from Council Member Gulliford, Mr. Johnson explained how the rate of return on the PFPF’s real estate holding (its building and parking garage) is determined through rental charges, including charging rent to itself for its office and parking spaces. In response to another question about why the administrative cost per member increased substantially from FY15 to FY16, Mr. Johnson explained that the FY16 figure included a one-time convergence of overlapping CEO salaries (former Executive Director John Keane, interim executive Beth McCague and the beginning of Mr. Johnson’s tenure). He did note that the cost per member will gradually increase over time because after October 1^st no new members will be joining the pension, so the ongoing administrative costs will be spread over fewer and fewer members as years go by.

The committee members complimented Mr. Johnson on his vision and the PFPF’s embrace of transparency and cooperation with the City. Mr. Johnson answered additional questions about the investment rate of return and annual contribution trends in the years ahead.

Meeting Adjourned: 12:08 p.m.

Minutes: Jeff Clements, Council Research

6.21.17 Posted 3:00 p.m.

Tapes: Finance Special Meeting– LSD

6.21.17