HomeMy WebLinkAboutIR 9277 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9277
Revised
k " To the Mayor and Members of the City Council August 10, 2010
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x SUBJECT: UPDATE ON THE PUBLIC AGENCIES RETIREMENT SERVICES
(PARS) RETIREE HEALTH CARE PLAN TRUST
This revised Informal Report is to update the City Council about the PARS Retiree Health Care
Plan Trust.
Due to time constraints during the pre-Council meeting on July 20, 2010, this informal report has
been moved back to the August 10"' meeting. No action has been taken between the two
meetings regarding this topic.
On August 18, 2009, City Council approved M&C C-23730 which authorized the trust agreement
with PARS and the initial FY09 $5 million transfer for the purpose of establishing a tool to fund
future OPEB liabilities.
Until a decision was made on how to allocate the dollars in the fund for investment purposes, the
initial deposit was placed in a money-market fund. Financial Management Services (FMS) staff
met with representatives from the City's co-financial advisors, First Southwest and Estrada
Hinojosa, and the investment manager for the trust, High Mark Capital Management to review
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options for funds that ranged from Conservative to Moderately Aggressive, as well as to consider
the choice between active management and passive management of the trust. The group of staff
and financial advisors determined that the Moderately Conservative fund with a passive
management style is the proper mix of asset allocation and management style. This combination
is expected to produce a long-term return of approximately 6.5% with minimal fees.
This investment strategy will apply to any transfers made into the trust at a future date until staff
communicates otherwise to the PARS organization.
If you have any questions, please contact James Mauldin, City Treasurer, at (817) 392-2438.
rl)a . Fisseler, P.E.
U_# City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS