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Investments <br />Approximately ninety-seven percent of the Relief's assets are invested in mutual funds with <br />the State Board of Investment and American Funds. The Relief Association has engaged <br />Mike Miller of Intergra Shield Financial Group as an investment professional to help guide <br />our asset allocations and achieve our investment goals. The Relief Board believes in long <br />term investing and has resisted attempting to time market moves. <br />Funding Ratios <br />The ERFD relief Board believes that it has fiduciary responsibilities to both the membership <br />and to the Council. The responsibilityto the membership is to seek the highest financially <br />sound benefit level. The responsibility to the Council is to not expose the cityto any <br />financial risk associated with mandatory contributions. Historically after the State and City <br />contributions our investments only needed returns of 2-3% to cover normal costs and stay <br />one hundred percent funded. <br />StrateQv <br />The Relief Board values the long term support and working relationship with Council. We <br />recognize that these are fiscally challenging times for the City. The Relief Board has <br />considered a number of alternatives for mitigating a large mandatory city contribution. The <br />annual State reporting schedules are. used to determine any mandatory city contributions. <br />The formula used to calculate the City contribution uses some numbers that are historical <br />and some that are projected. The 2009 investment gain is one of the numbers that is <br />projected in the formula. C-ur investment gain as of June 30`i' is around seven to eight <br />percent. The Relief Board unanimously voted to use a projected investment gain of fifteen <br />percent for 2009. The fifteen percent investment gain produces a mandatory city <br />contribution of $28,516 which is less than the budgeted contribution of $30,000. The <br />current strategy summarized is: Position for a market rebound and eliminate a mandatory <br />City contribution. <br />Action Requested <br />None: <br />The Relief .Association membership thanks the Council for its past and future support. <br />