Oh my god, I don't know, maybe this time we'll call call to order the June 15th, 2026 meeting of the City of Clearwater Community Redevelopment Agency.

This time we'll move to item 2.1 on the agenda.

Approve the minutes of the May 18 2026 CRA meeting.

So move.

Second.

All those in favor?

Opposed, unanimous.

This time we'll move to unanimous, but um trustee cotton is not here today.

That will move to item three on the agenda.

Citizens to be heard regarding items not on today's agenda.

At this time, are there any citizens here today who desire to be heard on a community redevelopment agency issue that is not on today's agenda?

Hearing saying no, we'll move to item 4.1.

Present Hatchet Hangout as the June 2026 winner of the Clearwater CRA Business Spotlight Program.

Good afternoon, everyone.

My name is Tasha Hatley, CRA specialist, and today I'm pleased to recognize Hatchet Hangout as our June business spotlight winner.

Located at 709 North North Myrtle Avenue, Hatchet Hangout is a unique destination for recreation and entertainment since opening in North Greenwood in 2020.

Owned by Drew Noivacik and managed by Barry Burris, the business offers axe throwing, league play, private events, team building activities, and fundraisers in a fun and welcoming environment for guests of all skill levels.

As an official axe throwing league venue, Hatchet Hangout provides opportunities for both casual and competitive throwers to connect through friendly competition and experiences.com.

Hatchet Hangout supports the city and CRA's shared goals of supporting local businesses by expanding recreational activities within our redevelopment areas.

At this time, we invite you to view the video showcasing Hatchet Hangout.

We've been in North Greenwood since 20 uh 2021.

North Greenwood was a great choice for us because of the closeness to everything.

You have the downtown, you have the major bus routes, and it's a thriving neighborhood that is just up and coming, so we want to contribute to that neighborhood.

First time visitors should expect a high energy, a fun atmosphere for all.

We have uh loads of games, tons of drinks for the guests to choose from.

Each lane gets a coach.

We can help the group make sure they're having a great experience, and we want everybody from 8 to 80 to have a great time.

Community involvement's huge in our business.

We love donating uh uh to organizations like PetPal.

Like to do a lot of events, we do host leagues, we also have a mobile trailer.

We come out to parties and local events.

So the hours of operation are 11 to 11, seven days a week.

We like to be full.

Okay.

Approve the minutes of the April 20, 2026 pension trustees meeting.

Sir motion to approve the minutes.

So move.

Second.

All those in favor?

Cosed unanimous.

Three today.

Are there any citizens here today to be heard?

Um regarding an issue with the pension trustees.

That's not on today's agenda.

Okay.

Hearing seeing none we'll move to item 4.1.

Except the January 20, January 1, 2026 annual actuary valuation for the City of Clearwater's employee pension plan.

Good afternoon, Monica Mitchell, Assistant Finance Director.

This item is requesting your formal acceptance of the plans annual actuary evaluation data January 1st, 2026.

This valuation will guide us in determining the city's contribution to the employees pension plan for the coming fiscal year.

I would like to introduce the plans actuary, Pete Strong with Gabriel Rotor Smith, who will review the actuary report with you.

Good afternoon, pension trustees.

This is probably the largest turnout that uh I've I've had for a pension trustees meeting.

So you're gaining popularity.

It's all you.

So uh for the record, my name is Pete Strong.

Uh, been the actuary for the Clearwater pension plan for about 12 years now.

Um, and I'm happy to uh present the highlights of this year's valuation.

I'll start with the demographics.

Um we have uh 1,563 active members in the plan, down slightly from last year, 1572 were in the plan as of 1125.

Um total covered payroll is 128 million up from 119, and so that translates to an average annual pay of about 82,000, um, up from 75.7 last year.

Uh there are 1,554 retirees receiving monthly checks from the pension plan.

That's up a bit from 1523 last year.

Um, the total annual pension payroll or pensions being paid out is 66.1 million versus 63.3 last year.

Um, and that means the average annual pension is about 42,500.

Let's go to the next slide.

The uh principal assumptions that we're using, we've been using 6.5% net of investment fees as the investment return assumption for the plan.

That's also the discount rate to discount all the future expected pension payouts.

Um that's been in place since 2021, so it's it's been stable at at that 6.5 level.

Um we're using the same, we're required by the state to use the same mortality rates that the Florida retirement system uses, and those were updated uh last year uh based on the PUB 2010 tables.

The uh for an age 65 retiree, the life expectancy uh is 86 and a half for males, 88.6 for females, and for hazardous police and fire, it's 85.4 and 88.2.

Um experience during 2025.

We had a nice investment return on the market value of assets, 11.4 percent.

Um we're smoothing returns over five years.

So the the smooth because we're still phasing in 2022, which was a negative year.

The uh the five-year average is about six point two.

So on a smooth value basis, the actual real value uh return was six point two seven.

The ten-year average return though is really good at eight point five percent.

So we're trending well ahead of the six point five percent assumption.

Um average salary increases last year were well ahead of expectations.

We assumed uh we we assume salary increases vary by age and service and group, uh, but the overall average expected rate was 5.74, and average actual salary increases were 11.56 on average.

Um the mortality experience was lower than expected amongst retirees.

We had a decrease in retiree payroll due to mortality of 845,000 versus 1.3 million expected.

Um, so people are living longer than they're expected to by the assumptions.

Uh overall, that experience that I just went over led to a loss of 39 million.

What that means is the unfunded liability or the total liability versus the assets climbed by 39 million versus what it was expected to do, which is about three percent, 3.17% of the of the liability.

Um the required contribution is up 12.35 million this year, which is 9.6% of covered pay.

Uh last year's was 7.3 million or 6.15.

It went up quite a bit because of the experience we just went over, the 11.56% salary increases versus 5.74.

Um, and that experience was mainly driven by the police and firefighter uh salary increase experience.

Um those salary increases and and mortality experience led to a 4.6 million dollar increase in the required contribution.

And the plan surplus, I mean fortunately, this plan is in a very positive position relative to assets relative to uh liabilities.

And so the but the surplus did decline by 39 million because of that experience.

Um the plan does have a credit balance, which can be used to offset the required contribution.

It's 40 point 44.2 million dollars, so well ahead of the required 12 million.

But the city does have a requirement to fund at least 7% of covered pay.

So you could fund 7% of covered pay and use a portion of the credit balance to offset the rest.

The liabilities, uh the total present value of all future benefits as of $126 are $1.56 billion versus $1.47 billion last year.

The accrued liability, which is based on service through $126, is $1.29 billion versus $1.23 billion last year.

And we've calculated a load default.

This is basically an annuity purchase rate.

If you bought an uh liabilities or offset the liabilities to an insurance company and bought annuities for everybody at 4.9%, that liability would be 1.57 billion.

So now the assets, the market value of assets is 1.44 billion up from 1.34 billion last year.

The smooth actuarial value is 1.39 billion versus 1.35 last year, and the actuarial smooth value minus the credit balance is 1.34.

And that translates to very good funded ratios.

11.7% on a market value basis, 107.5% on a smooth actuarial value basis, 104% net of the credit balance.

So in conclusion, the plan is in great shape.

It's one of the only fully funded pension plans in the state that has over 250 million in assets.

Amongst uh plans throughout Florida that have over 250 million, which is about 60 retirement plans for municipalities.

Clearwater has the highest market value-based funded ratio at 11.7%.

And to compare that to the Florida retirement system, which is the benchmark for pretty much all systems throughout Florida, they have an 82.2% funded ratio as of their last valuation, 87% on a market value basis.

And they also have 150 times the assets of your plan at 212 billion.

And they're using a higher investment return assumption at 6.7 as well.

So this plan isn't in great shape.

So I'll I'll stop there and see if you have any questions.

Okay.

Any questions for our does anyone here from the public desire to speak to this gender?

Just me, but I think maybe in the audience, I don't know.

I think this is the best report you've ever given.

So great job.

Thank you very much.

So uh is there a motion to approve the move to approve agenda item 4.1?

Second.

All those in favor?

Opposed.

Unanimous.

Thank you very much.

That move to the agenda item 4.2.

Approved investment advisory agreement with Dreas Capital Management LLC for investments and the Dreas Small Cap Growth Strategy Account and authorized approved officials to execute sale.

Good afternoon, Monica Mitchell, assistant finance director.

This item is the or backwards.

The plans investment consultant, Cap Trust Advisors conducted a money manager search for domestic equity equity small cap growth money manager to replace Riverbridge, a money manager recommended for termination by the pension investment committee.

The committee unanimously recommends dry house capital management LLC as the replacement.

Mike Villone, the city's investment consultant with Cap Trust Advisors, is here to answer any questions she may have.

Okay.

Um here from the public desire to speak to this agenda item.

Trustees discussion.

Um I I would like to know just a little bit about the the reasoning behind this and why we're doing this.

So if he could come up and just maybe add a little bit more context to it for Product's benefit.

Good afternoon.

Mike Malone with Cap Trust.

Um so the reason for this change is Riverbridge, the manager that we're going to be terminating, has actually been in the portfolio for about 17 years now.

They've been a long time good performer, but there have been some changes there, and performance really started to tail off about two years ago.

Um our research team recommended replacing them because they feel like there are some better options now.

Um Dreehouse is the new firm that our research team at CapTrust recommends using for small cap growth.

So it's really just about optimizing performance.

Okay.

Thank you.

Okay, anything else?

If not, their motion motion to approve it in item 4.2.

Second.

All those in favor?

Aye.

Opposed unanimous.

Thank you.

Thank you.

Agenda item 4.3.

Approve the termination of small cap growth equity man money manager, river bridge partners LLC, and authorize the approved officials to execute in.

This item is requesting approval to terminate an underperforming pension investments money manager.

River Bridge Partners was hired in 2010 as a domestic equity small cap growth money manager.

Due to underperformance in recent years, the pension investment committee is recommending termination at this time.

And again, Mike Vallone is here to answer questions.

Do you want to hear from the public desire to speak for this agenda item?

Hearing saying none, is there any trustees discussion?

If not, is there a motion?

Second.

All those in favor?

Aye.

Opposed, unanimous.

Thank you.

Agenda item 4.4.

Approve the new highest for acceptance into the pension plan as listed.

Good afternoon, Tiffany Macriss, Human Resources Director, available for any questions you may have.

Okay.

Anyone here from the public desire to speak to this agenda?

Hearing seeing that, is there any trustees discussion?

If not, is there a motion?

Welcome to the team and uh move to approve agenda item 4.4.

Second.

All those in favor?

Aye.

Opposed, unanimous.

Agenda item 4.5.

Approve the request of Salvatore Aquamondo Police Department, Jonathan Coop, Kappa Police Department, Powell Dabinsky, Public Works Department, Keith Law Library Departments, Robert Reedy, Public Utilities Department, Philip Ruppel, Public Utilities, and Anthony DeTesco from the Fire Department for Regular Pension is provided.

Good afternoon.

Tiffany Macris, human resources director available for any questions.

Okay.

So you want to have from the public desire to speak to agenda item 4.5.

Hearing seeing none.

Is there any trustees discussion?

If not, is there a motion?

Motion to approve agenda item 4.5.

Okay.

All those in favor?

Aye.

Opposed, unanimous.

This time we'll move to item five, director's report.

If there's no director's report, then we will adjourn the June 15th, 2026 meeting of the City of Clearwater pension trustees.

And we will recess for about five minutes.