7.1. SR 07-19-2010 - Laserfiche WebLink

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Investments Approximately ninety-seven percent of the Reliefs assets have been transferred over to the Parr McKnight Wealth Management Group. The Parr McKnight Group manages the funds for over fifty relief associations in the State and has a consistent record of beating the State Board of Investment. Our funds are allocated similar to the State Board of Investment Income Share fund which invests sixty percent in stocks, thirty-five percent in bonds and five percent in cash. The Relief Board believes in long term investing and has resisted attempting to time market moves. Funding Ratios The ERFD relief Board believes that it has fiduciary responsibilities to both the membership and to the Council. The responsibility to the membership is to seek the highest financially sound benefit level. The responsibility to the Council is to not expose the city to any financial risk associated with mandatory contributions. Historically after the State and City contributions our investments only needed returns of 2-3% to cover normal costs and stay one hundred percent funded. Str teQv The Relief Board values the long term support and working relationship with Council. We recognize that these continue to be fiscally challenging times. The annual State reporting schedules are used to determine any mandatory city contributions. The formula used to calculate the City contribution uses some numbers that are historical and some that are projected. The 2010 investment gain is one of the numbers that is projected in the formula. Under the advice of the Parr McKnight Group we are projecting an investment gain of five percent for 2010. The five percent investment gain produces a mandatory city contribution of $29,119, which is consistent with the previously budgeted contributions. This mandatory contribution is due sometime in 2011. The following is the recent contribution history: Year Contribution Amount Portion that is Mandato 2005 $28,100 0 2006 $28,950 0 2007 $29,800 0 2008 $30,000 0 2009 $30,000 0 2010* $30,000 $28,516 * -anticipated The recovery has been a bumpy road but we have been able to keep the mandatory City contribution to less than what has been a budgeted contribution. Action Requested None: The Relief Association membership thanks the Council for its past and future support.