May 16, 2023 Fort Pierce Utilities Authority

[Call to Order]

[00:00:11]

.

>> PLEASE STAND FOR THE OPENING PRAYER AND PLEDGE OF

ALLEGIANCE. >> HEAVENLY FATHER, THANK YOU FOR THIS DAY AND FOR ALL THE PLANS YOU HAVE FOR OUR CITY.

GUIDE THE STEPS OF OUR LEADERS INTO THOSE PLANS WITHWISDOM , INSIGHT, BLESS THEM WITH YOUR FAVOR, PREPARE THEM FOR EXCELLENCE IN EACH PROJECT THAT IS PRESENTED IN THIS MEETING.

IN YOUR HOLY NAME WE PRAY, AMEN.

I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA. AND TO THE REPUBLIC FOR WHICH IT STANDS, ONE NATION UNDER GOD INDIVISIBLE WITH LIBERTY AND

JUSTICE FOR ALL. >> MISS CORTEZ, PLEASE CALL THE

ROLE. >> CLERK:

[A. SET THE AGENDA]

>> CHAIR: HAS EVERYBODY HAD AN OPPORTUNITY TO LOOK AT THE AGENDA ? WE REMOVING ONE ITEM ON YOUR, G1. WITH THAT CHANGE, CAN I GET A MOTION?WE REMOVING IT COMPLETELY.

>> I WILL MAKE A MOTION TO APPROVE THE AGENDA.

>> CLERK:

[B. APPROVAL OF MINUTES]

IF NOT I WILL GET A MOTION. >> MOTION TO APPROVE.

>> SECOND. >> PLEASE CALL THE ROLL.

>> CLERK: LIKE WE HAVE ANY COMMENTS FROM THE PUBLIC BUT I WILL THROW IT

[D. CONSENT AGENDA]

>> I WILL MAKE A MOTION TO APPROVE THE CONSENT AGENDA.

>> SECOND. >> CHAIR: PLEASE CALL THE ROLL.

>> CLERK:

[E.1. We received an email from Ms. Veronica Fountain complimenting three of our Customer Service employees, Shelia Parnell, Wendy Tomlinson, and Barbara Gibson.]

>> CLERK: YES MANAGER, WE HAVE RECEIVED A CALL FROM MR. VERONICA FOUNTAIN REGARDING THREE OF OUR EMPLOYEES IN CUSTOMER SERVICE AND WANTED TO COMPLEMENT THEM.

SHE WANTED US TO KNOW THAT SHE HAS DEALT WITH SHEILA PARNELL, WENDY TOMLINSON AND BARBARA GIBSON.

THEY WERE SO KIND AND KNOW THEIR JOBS.

[E.2. We received a message from Ms. Deborah Daly thanking FPUA Billing Specialist and Gas Technician.]

I'M VERY EMOTIONAL AS THIS VISIT - - HIGHER AMOUNT OF GAS AND TOOK ACTION. LOCATED IN THE ATTIC WAS A COPPER PIPE DAMAGED BY SCREWS FROM MY NEW ROOF INSTALLED.

YOUR COMPANY NEEDS TO BE RECOGNIZED FOR SAVING MY LIFE, MY DOGS LIFE AND MY THREE CHILDREN'S LIVES.

I LOVE FPUA AND ALWAYS HAVE. MORE THAN 25 YEARS, FPUA HAS BEEN MY HOME SAFER. IN YEARS PAST THERE WAS A WATER USAGE OVER NORMAL USAGE. AGAIN, FPUA TO THE RESCUE.

A PINHOLE OF A LEAK IN THE KITCHEN, FLOORING UNDER THE TILE WAS LOCATED BY FPUA. THE TECHNICIANS OF COME TO MY HOME AND HAD BEEN FRIENDLY AND PREPARED TO FIX MY PROBLEMS.

THANK YOU, DEBORAH DAILY.". >> CHAIR: I LOVE THOSE, THOSE

ARE VERY GREAT. >> THAT IS FANTASTIC, BUT THERE ARE MANY, MANY MORE OF THESE TYPES OF SITUATIONS THAT HAPPEN THAT THE PUBLIC NEVER GET TO HEAR ABOUT.

[G.2. POA NO. 23‐04: Approve funding for Enclosures and Handholds, in the not to exceed amount of $250,000 annually. Orders will be from the qualified vendor with lowest determined price based on daily market pricing quoted through the AURSI system. ]

>> CHAIR: MOVING ON THERE IS NO OLD BUSINESS FOR TODAY BUT WE HAVE NEW BUSINESS SO I WILL PASS IT OVER.

>> GOOD AFTERNOON MADAM TO MEMBERS OF THE BOARD.

THE FIRST ITEM IS TO REQUEST THE FUNDING FOR ELECTRIC ENCLOSURES. ERIC MEYER, SUPERVISOR

ENGINEERING. >> THANK YOU AND GOOD AFTERNOON MADAM CHAIR GIBBONS AND MEMBERS OF THE BOARD.

ON JANUARY 3 23, THE BOARD APPROVED THE ANNUAL FUNDING IN AN AMOUNT NOT TO EXCEED $125,000 SPREAD HOWEVER, THE NEED FOR MATERIALS AS FAR EXCEEDED THE 125,000 FUNDING AMOUNT DUE TO INCREASES IN - - PVARIES PROJECTS.

[00:05:17]

INVENTORY IS TO BE ORDERED FROM QUALIFIED VENDORS THE LOWEST PRICE BASED ON DAILY MARKET PRICING AT THE TIME OF PURCHASE. ADVANCED UTILITY RESOURCES AND SUPPLY IS AN INTERACTIVE NETWORK SOFTWARE PROGRAM THAT PROVIDES VALUE TO AGENCIES BY MAINTAINING ACCURATE, UP-TO-DATE REAL-TIME INFORMATION ON THE COST OF GOODS AND SERVICES.THEY MUST BE QUALIFIED BY AGENCY COMMAND THIS CASE FPUA TO BE - - ADDITIONAL VENDORS CAN ALSO BE QUALIFIED. STAFF IS REQUESTING APPROVAL IN AN AMOUNT NOT TO EXCEED 250,000 ANNUALLY TO FULFILL OUR OBLIGATIONS ON ADDITIONAL CONSTRUCTION PROJECTS.

I WILL TAKE ANY QUESTIONS YOU HAVE AT THIS TIME.

>> SO, IT'S DOUBLED? >> THE PRICE DOUBLED, YES.

WE ARE ALSO NEEDING THESE BOXES TO FULFILL PROJECTS THAT WE

NEED IN THE SYSTEM. >> WHERE THE ADDITIONAL FUNDS COMING FROM? I KNOW IS NOT MARKED BUDGETING

FROM CONTINGENCY. >> IT WILL COME FROM OTHER PROJECTS THE NEED THOSE ITEMS. THERE IS NO ADDITIONAL INCREASE OF THE FUNDING REQUESTS. THIS IS JUST FUNDING THE GET

ALLOCATED FROM OTHER PROJECTS. >> THIS WON'T RUN AFOUL OF OUR

BUDGET? >> PRICES ARE DOUBLING, SO THAT IS DEFINITELY CONCERN FOR THE FUTURE BUTAS OF RIGHT NOW , NO.

WE ARE CAREFULLY MONITORING THAT, THAT IS FOR SURE.

>> WILL THIS BE A BUDGETED ITEM FOR NEXT YEAR?

>> THIS IS THE ONE YOUR PURCHASE, RIGHT?

>> YES. >> WE DON'T KNOW.

WE WILL CONTINUE TO MONITOR MATERIALS BUT MY GUESS IS THAT MATERIAL COST WILL EITHER STAY WHERE THEY ARE AT OR INCREASE SO WE WILL HAVE TO ACCOUNT FOR THOSE NEXT YEAR AS WELL.

>> THIS IS AN ANNUAL THING THAT YOU DO?

>> IN THE NEXT COMING YEARS YOU WILL HAVE TO FACTOR IN A PRICE

INCREASE. >> MENTIONED TWO REASONS WHY WE HAVE AN INCREASE IN FUNDING NEEDED AND ONE OF THEM WAS BECAUSE THE PRICE OF THE MATERIAL DOUBLED BUT THERE IS A LOT THAT THIS IS BEING USED FOR.

DO WE STILL HAVE THE SAME LEVEL OF NEW CONSTRUCTION PROJECTED

FOR NEXT BUDGET YEAR? >> YES, WE ARE PLANNING FOR THAT. WE CAN ONLY BUDGET FOR WHAT WE KNOW IS GOING TO COME. A LOT OF WHAT HAPPENED TO SOMETIMES YOU WILL SEE A PROJECT THAT COMES IN MONTHS PRIOR TO LET ME KNOW ABOUT IT HAPPENING, SO WE DON'T KNOW ABOUT IT UNTIL THAT FISCAL YEAR HAPPENS.

CONSEQUENTLY, WE HAVE DEFINED THE BUDGETING FOR THEIR PROJECT. IT'S KIND OF A 12 THING.

WITH PRICES DOUBLING, WE ARE TO FIND THE RESOURCES FOR THAT.

>> IT IS ALSO AS A RESULT OF THE CITY DOING MORE CONSTRUCTION WORK ON STREETS? DOES THIS HAVE ANYTHING TO DO

WITH THAT? >> PART OF IT IS STREETLIGHT

BOXES SO PART OF IT IS THAT. >> ONE OF THE THINGS THAT IS HAPPENING WHICH IS A GOOD THING IS THE CITIES USING THE MONEY FOR MORE CONSTRUCTION ON THE STREETS BUT IT IS ALSO ADDING

TO THE BUDGET OF THE FPUA. >> DOUBLE-EDGED SWORD.>

RIGHT. >> THE HALF CENT SALES TAX THAT

GOES TO ROADWAYCONSTRUCTION . >> EVERYBODY WANTS OUR RODES FIXED BUT IT ALSO INCREASES WITH THE FPUA HAS TO DO BECAUSE WHY WOULD YOU TEAR UP THE ROAD TWICE?

>> I HAVE A QUICK QUESTION, DO YOU THINK THIS WILL GET US THROUGH THE END OF THE YEAR? WHAT IS THE LIFE EXPECTANCY OF

THESE? >> LIFE EXPECTANCY, THERE PREDICTED TO LAST AS LONG AS THEY ARE IN THE FIELD FOR THERE IS AN INDUSTRY STANDARD LIFE, I WILL HAVE THAT INFORMATION WITH THE LAST FOR QUITE A WHILE. AS FAR AS GETTING TO THE END OF THE YEAR, I DON'T KNOW FOR SURE IF PRICES GO OUT OF CONTROL.

[00:10:03]

I HOPE NOT, BUT THIS SHOULD GET US THROUGH THE END OF THE

FISCAL YEAR. >> HAS IT BEEN HARD TO GET THESE AT OUR FINGERTIPS AS WELL?

>> YES, THESE HAVE GONE UP CONSIDERABLY AS WELL DUE TO THE HIGH DEMAND FROM OTHER UTILITIES AS WELL SO IT IS PRETTY CHALLENGING. THESE ARE STANDARD UNDERGROUND DEVICES COMPONENTS THAT ARE USED FOR CONNECTING STREETLIGHTS AND SERVICES AND THAT SORT OF THING.

>> THINGS THAT WE HAVE TO HAVE. >> YES.

>> HOW LONG HAS IT TAKEN IS TO GET THEM?

>> I WILL HAVE INFORMATION ON ME BUT I KNOW THAT THE WAY TIMES OF COME UP CONSIDERABLY. IT USED TO BE SOMETHING WE COULD GET IN THE MATTER OF WEEKS BUT THEY HAVE GONE INTO A DIRECTION THAT NORMALLY KNOW. SOMETIMES THEY HAVE COURT IN MONTHS AND WILL GIVE YOU AN EXACT TIME WHEN IT HAPPENED SO IT IS USUALLY WITHIN THREE MONTHS, COULD BE SIX MONTHS, NINEMONTHS . IT'S PRETTY OUT OF CONTROL.

>> MADAM CHAIR, I AM ON THE FIRE DISTRICT BOARD AND WE HAD TO ORDER FIRE - - TO BE A NEED FOR FOUR YEARS BECAUSE THAT'S THE EARLIEST WE CAN GET THEM. THIS IS THE FIRE ENGINE BUT

EVERYBODY HAS TO DO THIS. >> ANY OTHER QUESTIONS OR A

MOTION TO APPROVE? >> MOTION TO APPROVE.

>> CLERK:

[G.3. Retirement Board Update – For Information Only]

>> MADAM CHAIR AND MEMBER OF THE BOARD, THE NEXT ITEM IS AN INFORMATION PRESENTATION ON THE RETIREMENT BOARD PROGRAM.

- - WILL PRESENT THIS ITEM AND JUST FOR CONTEXT, MR. STEVENS IS SELECTED BY THE EMPLOYEES AND - - IS APPOINTED TO THE RETIREMENT BOARD SO WE HAVE TWO INDIVIDUALS.

HE IS A LONG SERVING MEMBER. >> THANK YOU, MADAM CHAIR, BOARD MEMBERS. THIS IS OUR ANNUAL UPDATE OF THE RETIREMENT SYSTEM. IT WILL BE DIFFERENT THAN LAST YEAR'S UPDATE. WE WILL GET RIGHT INTO IT.

SOME OF THIS IS REPETITIVE, YOU HAVE HEARD IT YEAR AFTER YEAR AND THERE ARE A LOT OF PEOPLE STILL HAVE NOT AND WITH UPDATES TO SOME OF THE INFORMATION. THE BOARD STILL HAS SEVEN MEMBERS. THE CITY COMMISSIONERS, DIRECTOR OF FINANCE, FPUA APPOINTEE, THREE ELECTED MEMBERS OF THE DIFFERENT AREAS AND CURRENTLY WE HAVE THREE CERTIFIED PUBLIC PENSION TRUSTEES.

OVER THE PAST YEAR AND A HALF WE HAD A BIG TURNOVER ON THE RETIREMENT BOARD. THE GOOD THING IS WE KNOW EVERYBODY'S COMMITTEE TO BECOMING A TRUSTEE.

IT MAKES US MORE KNOWLEDGEABLE IN THE DECISIONS THAT WE MAKE AS THE RETIREMENT BOARD AND ONE OF THE THINGS I WANT TO PUT OUT THERE IS RETIREMENT BOARD, WE MAKE DECISIONS ON OUR CONSULTANTS OR RECOMMENDATIONS ON OUR CONSULTANTS AND SOME OF THE MONEY MANAGERS. EVERYTHING WE DO, I WANT TO MAKE SURE EVERYONE UNDERSTANDS THAT, THE CITY COMMISSION HAS TO VOTE ON IT TO BECOME FINAL. ALL WE ARE IS AN ENTITY TO MAKE RECOMMENDATIONS FOR THOSE CHANGES THAT HAPPEN.

THEY ULTIMATELY ARE THE POWER OF RETIREMENT BOARD FOR THE CITY OF FORT PIERCE. LIKE I SAID, WE HAD AN ATTORNEY IN THE INVESTMENT CONSULTANT AND MONEY MANAGER.

IT WAS ESTABLISHED CHAPTER 13 OF THE CHARTER AS YOU ALL SEE RIGHT THERE. THE PENSION IS CALCULATED OFF TOP FIVE OF THE LAST 10, THIS IS FPUA I'M SPEAKING OF YEARS OF SERVICE FOR THE MULTIPLIER. THIS IS NOT A DEFINED CONTRIBUTION PLAN. EVERY YEAR I SAY THE SAME THING, IMAGINE TAKING UP HIGH AND WHEN YOU RETIRE, YOU HAVE TO DECIDE HOW BIG PIECE OF PIE YOU ARE GOING TO EAT THAT YEAR AND HOPE THAT YOUR INVESTMENTS REPLENISH THAT PIE HOLE AGAIN BY THE NEXT YEAR OR EVENTUALLY THAT PIE PLATE BECOMES EMPTY.

THERE IS YOUR DEFINED CONTRIBUTIONS.

HOW MANY PEOPLE HAVE YOU HEARD SAY I HAVE TO GO BACK TO WORK

[00:15:01]

OR I CAN RETIRE BECAUSE OF WHAT HAPPENED WITH THE STOCK MARKET AND HOW THE ECONOMY IS RIGHT NOW.

THAT HAPPENS A LOT WITH DEFINED CONTRIBUTIONS.

DEFINED BENEFIT ALTHOUGH BECAUSE OF THE WAY THE CHARTER IS WRITTEN AND WE WANT TO MAINTAIN THE PLAN I WILL SAY THIS, WHEN YOU RETIRE AND THEY TELL YOU YOU ARE GOING TO GET THIS AMOUNT OF MONEY, YOU GET THAT AMOUNT OF MONEY DEPENDING ON WHAT YOU CHOSE, FOR THE REST OF YOUR LIFE.

MAYBE YOUR BENEFICIARY DOES TOO DEPENDING ON THE CHOICE YOU CHOSE AT THE END. JUST WANT TO MAKE SURE EVERYBODY UNDERSTANDS THAT. FPUA EMPLOYMENT RETIRE FOR 25 YEARS OF SERVICE OR AT AGE 60 AS LONG AS THEY HAVE FIVE YEARS OF SERVICE. THIS YEAR WE HAD NO CHANGES, THAT'S A GOOD THING. THIS IS BASED OFF THE ACTUARY REPORT THAT WE RECEIVED JUST RECENTLY ENDING SEPTEMBER 30, 2022. I KEEP BRINGING THIS UP BECAUSE THESE ARE RELEVANT.WE HAVE PEOPLE THAT STARTED BEFORE AND AFTER THESE EFFECTIVE DATE. THE FINAL SALARY IS LIMITED, YOU CAN HAVE MORE THAN 300 OVERTIME HOURS PER YEAR.

AND AS A 6/30/2011, IF YOU ARE AN EMPLOYEE, WHATEVER THE BALANCE OF YOUR SICK TIME WAS AT THAT TIME, THAT IS THE NUMBER THAT YOU CAN SELL THAT GOES TOWARDS RETIREMENT.

THERE IS ZERO SELL BACK TOWARDS RETIREMENT OF EMPLOYEES THAT WERE HIRED AFTER 10/1/2012 THAT IS TOWARDS THEIR RETIREMENT AVERAGE SALARY. AFTER 10/1/2012, IT'S 75% OF THE FINAL AVERAGE THIS MEANS IF SOMEBODY STARTED AFTER THAT DATE AND THEY DID 25 YEARS, THEY GOAHEAD AND RETIRE.

IF THEY WANT TO CONTINUE TO WORK WITH THE ENTITY, THEY CAN STAY THERE WITH THE DROP PROGRAM.

THEY CAN WORK A MAX OF 30 YEARS WITH THE DIFFERENT ORGANIZATIONS. LET'S TALK ABOUT THE 2022 CONTRIBUTION AMOUNTS. IN 2022, THE EMPLOYEES PUT IN NINE TO $43,800. THAT WAS THE 6.16 WHICH IS WHAT FPUA PUT IN THERE. THE EMPLOYER PUT IN $2.6 MILLION. I WILL TELL YOU THAT FOR NEXT YEAR, THE EMPLOYEE STILL PUT 6.16 BUT THE EMPLOYER WILL PUT 20.89. THERE ARE A LOT OF FACTORS GOING INTO THAT. IT'S GOING UP ALMOST 2.8, 2.9% MORE THAN A WAS THE YEAR BEFORE.

OBVIOUSLY WE TOOK A HIT. OUR MARKET VALUE TOOK A HIT OF ABOUT 16%. OUR FUNDS WENT DOWN FROM THE SAME TIME FROM 2021 2022, HE WENT UP FROM 246,000,002 HUNDRED 98 MILLION. AS OF THE END OF MARCH, IF I'M NOT MISTAKEN, AS OF THE END OF MARCH, WE ARE BACKUP TO - - WE HAVE COME BACK QUITE A BIT. I ANTICIPATE BY THE END OF THE FISCAL YEAR WE WILL BE ABOVE 246 IF EVERYTHING KEEPS GOING AS IT IS NOW.HE WILL TALK A LITTLE BIT ABOUT DIVERSIFICATION. WE ALSO RECENTLY DID AN ASSET LIABILITY STUDY THEY LOOK AT EVERYTHING AND MAKE SURE THAT OUR PLAN IS HEADED IN THE RIGHT DIRECTION UP AND DOWN AND OUR CONTRIBUTION ARE GOING WELL. I LOOKED AT THE BOARD MINUTES FOR THE CITY OF PORT FORT PIERCE RETIREMENT BOARD AND THEY SAID WE DID VERY WELL. WE HAVE ALWAYS DONE WELL AS FAR AS THE FUND GOES. NOW, ALTHOUGH AS OF SEPTEMBER 30, 2022, THE ACTUARIAL EVALUATION, I BELIEVE THE 85.6

[00:20:04]

LAST YEAR, WE WERE 89.5. THE YEARS BEFORE WE WERE ALWAYS OVER 90, 92, 94% FUNDED. THIS IS AS OF SEPTEMBER 30, WE KNOW THAT IS HIGHER NOW. THAT'S A GOOD THING.

AS YOU SEE, I TOLD YOU WE TOOK THE MARKET VALUE IT OF ABOUT -16 PERCENT. 16.07 TO BE EXACT.

WE DO IT FOR YOU SOOTHING THE RETIREMENT PLAN.

WHEN YOU ADD THE LAST THREE YEARS PLUS THE -16 WE HAVE A 3.05% RETURN ON OUR INVESTMENTS WHICH IS JUST WHAT WE DO ON OUR PLAN. BUT WE ASSUME THE 7.25% SOON T RETURN ALL THE TIME . THAT IS WHAT WE BASE EVERYTHING OFF OF. I DID MORE RESEARCH AND IT LOOKS LIKE WE USE ABOUT 4% OF OUR FUND TO PAY FOR OUR RETIREES, ROUGHLY 4%. THAT IS WHAT IT TAKES A YEAR.

AS YOU CAN SEE RIGHT THERE, WE HAVE FIVE AND 66 MEMBERS IN THE RETIREMENT PLAN AND THAT IS THE AVERAGE BENEFIT THEY GET AS OF SEPTEMBER 30.YOU SAW THE PUT 198.590, THAT IS 223.7 MILLION NOW. I ALWAYS LIKE TO BRING THIS UP, WE STILL HAVE IN THE PLAN 20 MEMBERS WITH BENEFICIARIES OVER 90 DRAWING. THEY DON'T DRAW MUCH BECAUSE THEY WERE IN A LONG TIME AGO BUT WE STILL HAVE 20 MEMBERS OVER 90 YEARS OLD OUT OF THE 566.

AS I MENTIONED EARLIER, DIVERSIFY, DIVERSIFY, DIVERSIFY. BECAUSE THE DIVERSE LOCATION WE DO WITH OUR FUND, WE CAN TAKE HIS HERE AND OTHER PLACES BUT AS WE ALL KNOW LATE LAST YEAR, EVERYONE TOOK A HIT AND IT ALL WENT DOWN AND IS COMING BACK. WE ARE DOING WELL, WE ARE ALREADY BACK TO 223 MILLION. THIS IS A PART OF OUR PLAN AND WHAT WE DECIDE ON THE RETIREMENT BOARD.

WE HAD TWO MEETINGS WE HAD MEMBERS COME IN AND TALK ABOUT.

ONE OF THE THINGS AS A STEWARD FOR THE PLAN, WE LOOK AT THE BIG PICTURE. WE WILL LOVE TO GIVE - - EVERY YEAR AND INSURANCE EVERY YEAR BUT AS STEWARDS OF THE PLAN, IT WOULD NOT BE RESPONSIBLE TO GIVE OUT MONEY.

WE DO HAVE IDEAS AND WE MIGHT GET THERE.

I WAS TIPTOES SPEAKING TO ANY OF THE BOARD MEMBERS, WHEN THE MEMBERS NEEDED AND THE RETIREES THAT IS WHEN WE ARE AT OUR WORST TOO. THERE'S BEEN A LOT OF DISCUSSION ABOUT THE 13TH CHECK FOR MEMBERS OVER 20 YEARS RETIRED. YOU WOULDN'T BELIEVE THE AMOUNT OF MONEY OF THOSE THAT RETIRE 20 TO 25 YEARS AGO, WITH THE GET MONTHLY. THINK ABOUT THE COST OF LIVING HAS DONE THE LAST 25 YEARS OF WHAT PEOPLE RETIRED FROM THEIR JOBS. SOMETHING WE HAVE DISCUSSED.

I DO KNOW THAT WE WILL EVER GET THERE RIGHT NOW, THIS IS WHERE WE ARE. THIS IS A WEBSITE RIGHT HERE THAT WE CAN GO TO AND THAT IS WHERE THE ACTUARIAL REPORTS ARE ON FPUA. I WENT AND USED IT SO I KNOW THAT IT DOES WORK, IT IS THERE. I WILL BE HAPPY TO ANSWER ANY QUESTIONS ON THE RETIREMENT SYSTEM FOR ANYBODY.

>> I DON'T HAVE ANY QUESTIONS BUT ON THE BENEFITS THAT WE TALKED ABOUT, THE 300 OVERTIME, THE CELL BACKGROUNDS AND ZERO,

THOSE THREE WERE STATE LAW? >> YES, MA'AM, THEY CAME FROM

THE STATE. >> SO, YOU HAVE TO DO THAT?

>> YES, AS I CALL IT, THE FIREMEN RULE.

[LAUGHTER]. >> THE FIRE DISTRICT USED TO BE

A PART OF OUR PLAN. >> THAT IS CORRECT.

>> THEY LEFT THE NOW HAVE THEIR OWN PLAN.

[00:25:01]

>> WE COULD FILL IT IN, BUT THAT WAS A PARTS, THERE WAS ALWAYS, I CAN TELL YOU I HAVE BEEN THERE NINE YEARS.

I WILL TELL YOU THAT IT IS SURPRISING THE PEOPLE THAT COMPLEMENT OUR PLAN, THE COMPLEMENT HOW WE DO THINGS.

PEOPLE WERE DOING IT LONG BEFORE I GOT THERE.

THE DECISIONS THEY MADE TO MAKE IT A VERY VIABLE PLAN.

THE REASON WE HAVE THE MONEY FOR EVERYBODY EVERY YEAR AND THAT WE STAY OUT, THIS WAS A LOCAL WE ARE PROBABLY BACKUP GETTING CLOSE WE NEED TO BE. THEY SAY ONE OF THE THINGS WHEN THEYDID THE STUDY , THEY BASE EVERYTHING OFF 10 YEARS.

IF EVERYTHING STAYED THE SAME, AND WE KNOW THEY DON'T, THE STATE CHANGES RULES THAT WILL TELL YOU THEY SAID WE WOULD EASILY BE AT 100%. BASED OF THE DIRECTION OF OUR PLAN RIGHT NOW AND WHAT WE ARE PUTTING IN THEIR.

>> THAT WOULD BE AMAZING. >> THAT WORD.

THAT'S PART OF THE CHARTER FOR THE RETIREMENT BOARD, IT'S ONE OF THE THINGS THAT HAVE TO BE MET FOR US TO BE ABLE TO GIVE US WE DO A SPECIAL LIKE WE SAID 13TH CHECK OR SOMETHING LIKE THAT. AT THIS POINT THAT JUST WON'T

HAPPEN. >> IS ALSO TRUE THAT AS GOOD A JOB AS WE DO, A LOT OF THIS DEPENDS ON THE MARKET.

WHERE WE ARE IS DRIVEN BY WHERE THE MARKET IS.

>> THAT IS CORRECT. IMAGINE YOU KNOW SOME OF THE RISKIER INVESTMENTS THAT THE OTHER RETIREMENT FUNDS DO.

IT WOULD BE INTERESTING TO SEE WHERE THEY ARE COMPARED TO

WHERE WE ARE. >> I HAVE A COUPLE OF QUESTIONS, I AM STILL LEARNING ABOUT THIS.

I FEEL LIKE THERE IS STILL A LOT MORE TO LEARN.

AS FAR AS IT GOES, IS THIS SOMETHING WE CAN OFFER EMPLOYEES TO START PUTTING IN THEIR OWN I'M ASSUMING THAT'S 3% ANNUALLY? HAS THAT EVER BEEN A

DISCUSSION? >> NEVER HAS BEEN A DISCUSSION AND MOST OF THIS WAS SET BACK IN THE CHARTER.

LIKE I TOLD YOU EARLIER, THE CITY COMMISSIONERS WHO DECIDE ON ALL OF THAT. I GUESS THEY COULD DO ANYTHING THEYWANTED TO DO . WE DID ASK THE ACTUARY AT ONE TIME IF THERE WERE THINGS THAT HE COULD BRING BACK TO US TO SAY WHAT ARE OTHER PLANS DOING? IT JUST DEPENDS ON HOW THE PLAN WAS SET UP. THAT DEFINITELY WE CAN BRING

UP, MA'AM. >> THAT WOULD BE IDEAL, ESPECIALLY IF YOU ARE A YOUNG PERSON STARTING WITH FPUA TO SAY OKAY, COST-OF-LIVING, I WILL DO AN ADDITIONAL 3%.

NOT THAT IT HAS TO BE MATCHED. >> WE HAVE OTHER PLANS WE OFFER EMPLOYEES. WE DO OTHER PLANS THROUGH HR THAT THEY CAN GET INTO AND SUPPLEMENT THEIR PENSION PLAN.

HERE ARE OTHER AVENUES. FOR WHAT YOU ARE SPEAKING OF,

WE DO OFFER THAT. >> OKAY, COOL.

QUESTIONS? NO?

OKAY, THANK YOU SO MUCH. >> THANK YOU KEITH, MADAM CHAIR

[G.4. Bill Comparisons for the Month of March 2023 – For Information Only]

ITEM. >> THANK YOU.

MAYOR HUDSON, MADAM CHAIR, BOARD MEMBERS, I WILL BE PRESENTING A MONTHLY UPDATE ON THE ELECTRIC RATES IN THE LOCAL TREASURE COAST UTILITY BILLS FOR THE MONTH OF MARCH.THIS GRAPH DEPICTS PRESENT ELECTRIC CONSUMPTION IN RELATION TO THE OTHER 12 REQUIREMENT PROJECT MEMBERS.

WE LIST THEM INTO PELLETS BY RANK FROM LOWEST TO HIGHEST.

[00:30:03]

WE ARE IN THE SAME POSITION AS YOU WERE IN FEBRUARY, WHICH IS SEVEN FROM THE LEFT AND INDICATES WE ARE LESS THAN THE OTHER MEMBER MUNICIPALITIES. THIS GRAPH DISPLAYS COMPARISON FOR THAT SAME LEVEL OF CONSUMPTION, BUT INCLUDES ALL THE MUNICIPALITIES IN THE STATES.

AGAIN FOR MARCH, WE ARE AT $159.48 AS SHOWN BY THE YELLOW BAR. OUR TOTAL RATE FOR 1000 KWH REMAINS THE SAME AS IN FEBRUAR .

OUR POSITION IN RELATION TO THE OTHER CITIES REMAINS THE SAME AS WELL. WE CURRENTLY RANK 24TH WHICH IS IN THE UPPER HALF OF THE 32 MUNICIPAL UTILITIES.

TWO OF THE UTILITIES - - 19 REMAIN UNCHANGED.

THOSE CHANGES YIELDED AN AVERAGE DECREASE OF $0.42 AND THE MUNICIPAL DECREASE OF $1.55.

WHEN COMPARED TO THE IOU AND MUSICAL AVERAGES, FPUA WILL RATE REMAINS BELOW THE IOU. THIS GRAPH PRESENTS A COMPARISON BETWEEN ALL MISCIBLE ELECTRIC PROVIDERS FOR INCREASED CONSUMPTION LEVEL OF 2500 KWH.

FPUA, HIGHLIGHTED IN YELLOW, HAS AN AMOUNT OF $401.37 WHICH IS UNCHANGED FOR THE PREVIOUS MONTH.

OUR POSITION REMAINS THE SAME AS WELL, BE RANKED 25TH.

THIS PLACES US IN THE UPPER HALF OF THE MISCIBLE UTILITIES.

OUR BASE RATE IS LOWER THAN THE IOU BUT HIGHER THAN MUSICAL AVERAGE. THE SLIGHTEST BY THE COMPARISON OF AVERAGE RETURNS UTILITY BILLS IN THE MONTH OF MARCH.

IT SHOWS THE UTILITY BILL ACCRUING TAXES AND FEES FOR INSIDE TO LIMIT CUSTOMERS. THE OTHER COLUMNS REPRESENTING NEIGHBORING CITIES OFFER - - LOCAL MUSICALITY.

THE COMPARISON UTILIZES 1000 KWH PER ELECTRIC AND 6000 GALLONS FOR WATER. THEY PREDICT AVERAGES FOR THE MONTH OF MARCH RATHER THAN THE CONSUMPTION RATE.

THOSE AVERAGES ARE 7051 KWH PER ELECTRIC AND 5540 GALLONS FOR WATER. SINCE INFORMATION WAS LAST PRESENTED TO THE BOARD, THERE HAS BEEN NO ADDITIONAL NEWS REGARDING RATE CHANGES. THIS ITEM IS RESENTED FOR INFORMATION ONLY AND REQUIRES NO ACTION, BUT IF YOU HAVE ANY QUESTIONS I WOULD BE HAPPY TO ADDRESS THEM.

>> CHAIR: I THINK WE ARE GOOD, THANK YOU VERY MUCH.

[G.5. March 2023 Quarterly Financial Operating Results – For Information Only]

>> THANK YOU ANDREA. THE LAST ITEM IS AN INFORMATION PRESENTATION ON THE QUARTERLY FINANCIAL REPORT ENDING MARCH 2023. MICHELLE HARRIS, FINANCE

MANAGER WILL PRESENT THIS ITEM. >> MADAM CHAIR, BOARD MEMBERS, I WOULD PRESENT TO YOU TODAY THE FINANCIAL RESULTS OF THE SECOND QUARTER OF FISCAL YEAR 2023.

YEAR-TO-DATE OPERATING REVENUES THROUGH MARCH ARE 65 MILLION THE REVENUES FROM THE PCA ACCOUNTED FOR 10% OF THE OPERATING REVENUES WHICH IS ABOUT 6.7 MILLION.

55% OF THE OPERATING REVENUES GENERATED FROM SERVICE SALES AND 41% ARE FROM RESIDENTIAL SALES.

THE REVENUES FROM MARCH THROUGH 23 AND TO BE HIGHER IN FISCAL YEAR 21 AND 22 DUE TO THE RAIN INCREASES THAT WE INVENTED IN JULY AND OCTOBER. FOR FISCAL YEAR 23, ALTERED OPERATING REVENUE PLUS THE POWER COST ARE ABOUT 1.6 MILLION. NOW, MOST OF THE QUARTERLY FURNITURE OPERATING RESULTS ARE ALL IN DOLLARS.EXCEPT FOR THE LAST FOUR PAGES, THOSE ARE STATISTICAL INFORMATION.

WE HAVE RATE INCREASES, REVENUES ARE NOT ONLY INDICATORS OF GROWTH AND THAT GEARS AS TO HOW MUCH WE ARE GROWING. SO FOR THE ELECTRIC UTILITY, CONSUMPTION IS UP BY 2% FROM THE SAME PERIOD LAST YEAR AND THE NUMBER OF ELECTRIC SERVICES BILLED IS THAT 1%.

YEAR-TO-DATE WATER OPERATING REVENUES OF 12 MILLION ARE UP 24% FROM LAST YEAR. ALSO, CONSUMPTION IS UP BY THREE AND A NUMBER OF WATER SERVICES BILLED IS UP BY 2.4%.

[00:35:11]

NATURAL GAS, OPERATING REVENUE IS PURCHASE GAS INCREASED 7% WHICH IS ABOUT $115,000. HOWEVER, THE YEAR-TO-DATE CONSUMPTION OVER LAST YEAR SHOWED AN 8% INCREASE WHICH IS A REDUCTION IN CONTRAST SALES. THE NUMBER OF GAS SERVICES REMAINS FLAT. I WISH YOU COULD TALK ABOUT REVENUES BUT THERE IS ANOTHER SIDE.

WE DO HAVE OPERATING EXPENSES, 57 MILLION THROUGH THE FIRST TWO QUARTERS. FOR THOSE OPERATING EXPENSES, 50% OF THE OPERATING EXPENSES ARE PURCHASED FOR RESALE AND 90% IS GENERALLY ADMINISTERED AT COST.

THIS IS AN INCREASE OF ALMOST 6 MILLION IN THE SAME SIX MONTHS LAST YEAR. ABOUT 6 MILLION, 4.3 IS FOR PURCHASES FOR RESALE. OBVIOUSLY WE SEE THE TREND IS MAJOR COST . THIS FINANCIAL SUMMARY BY SYSTEM SHOWS HOW EACH UTILITIES OPERATING INDEPENDENTLY.

MIKE THE SECOND OF THE THIRD RIGHT HERE AFTER THE RUN FROM THE BOTTOM, EVERYONE IS OPERATING IN THE BLACK WHICH IS REALLY GOOD. HOWEVER WE REALLY ONLY PAY THE CITY DISTRIBUTION IN APRIL, SO THAT WAS ABOUT 6.5 MILLION.

THE EFFECT WOULD BE 3.4 MILLION SO INCLUDING THE CITY DISTRIBUTION WE ARE SITTING AT 7.9 INCREASE.

ALSO, YOU MIGHT WANT TO MAKE A POINT OF THE CAPITAL CONTRIBUTIONS ARE 4.5. WE RAMPED UP OUR CAPITAL CONTRIBUTIONS WHICH AFFECT THAT.

THE SERVICE COVERAGE IS ANOTHER HOT TOPIC.

IF THE RATIO OF THE 12 MONTH AVERAGE TO THE DEBT SERVICE.

FOR THE 12 MONTHS ENDING MARCH 23 WE ARE AT A RATIO OF 2.48 TIMES, WE ARE AT 2.47 AND THIS REDLINE INDICATES WHERE WE NEED TO BE AND THAT IS 1.25 TIMES. I WANTED TO PROVIDE AN UPDATE ON THE PROCEEDS WE GOT, JUST REMEMBER BACK IN JUNE WE HAD ABOUT 130 MILLION AND THROUGH MARCH, THE AMI WHICH AFFECTS ELECTRIC, WATER AND GAS, WE HAD ABOUT 3.4 REMAINING TO SPEND.

THE EXPANSION PROJECT FOR WATER WOULD BE 20.5 MILLION.

ALL IN ALL, THROUGH MARCH WE HAVE SPENT ABOUT 18 AND HAVE 112 TO GO. THIS IS INFORMATION ONLY, I WILL ANSWER ANY QUESTIONS IN THE PACKET FOR THE PRESENTATIO

. >> CHAIR: THANK YOU SO MUCH.

THIS WAS A VERY GOOD OVERALL PERSPECTIVE OF WHERE WE ARE IN THE BOND PROCEEDS, THAT IS VERY GOOD TO KNOW, THANK YOU FOR THAT. IT GIVES US A GOOD PICTURE.

DO YOU GUYS HAVE ANY QUESTIONS? >> NO, I CAN SEE WE ARE STILL SOLVENT, SO THAT IS GOOD. [LAUGHTER].

>> CHAIR: THANK YOU VERY MUCH. ALRIGHT, MOVING ON WE ARE THE

[J. DIRECTOR:]

DIRECTORS COMMENTS I BELIEVE. >> MADAM CHAIR, THANK YOU.

SO, WE HAVE BEEN ABLE TO FINALIZE THE DATE FOR THE BUDGET WORKSHOP PENDING ANY ADDITIONAL CHANGES ON THE DATE BUT IT DOES APPEAR THAT YOUR 21ST FROM 9:00 TO 1:00 WILL BE A TIMEFRAME. WE WILL SCHEDULE SOME TIME WITH EACH OF THE BOARD MEMBERS TO REVIEW THE AGENDA AND PROPOSE THE PRESENTATION TO MAKE SURE WE ANSWER ANY QUESTIONS YOU MIGHT HAVE BEFORE THE WORKSHOP. WE HAD A KICKOFF MEETING WITH OUR STRATEGIC PLANNING CONSULTANT IN OUR FRIDAY EARLIEST THE MEMO WHICH I BELIEVE THE BOARD MEMBERS WERE COPIED THAT OUTLINES THE PROGRAM AND IDENTIFIES SPECIFIC DATES THAT WE ARE TRYING TO TARGET TO MAKE SURE WE STAY ON TASK. WE WILL HAVE A MIXTURE OF PHONE CALLS, VIRTUAL MEETINGS HIM IN PERSON MEETINGS AND ONLINE SURVEYS TO HELP FACILITATE THE INTERACTION FOR THE STRATEGIC PLANNING AND TO MAKE SURE WE STAY ON TASK WITH THE SCHEDULE.

[00:40:03]

THE BOARD, THE COMMISSION, THE EMPLOYEES.

I THINK THAT IS SCHEDULED FOR THE 14TH.

WE DISCUSSED THE PROCESS WITH DIRECTORS AND DEPARTMENT HEADS YESTERDAY . I MONDAY, THE ONLINE SURVEY WENT LIVE. I KNOW - - IS IN WORKING WITH THE BOARD MEMBERS TO COORDINATE THE ONE-ON-ONE WITH THE CONSULTANT. SO, WE WILL KEEP YOU POSTED.

>> IF SHE GAVE YOU THAT TODAY, SHE IS PROBABLY RIGHT.

WEDNESDAY THE 16TH. [LAUGHTER].

>> WILL THAT LAST ALL DAY? >> I DON'T THINK SO, THE HALF A DAY. LAST BUT CERTAINLY NOT LEAST, I WILL BE ON VACATION AFTER THIS BOARD MEETING I WILL BE BACK AFTER NEXT MONDAY. MR. RUTHERFORD WILL BE IN CHARGE FOR THE REST OF THE WEEK AND BARBARA WILL BE IN CHARGE ON MONDAY IN CASE YOU HAVE TO REACH THEM, BUT I WILL NOT BE AVAILABLE FOR MOST OF THE DAY TOMORROW.

THAT IS ALL I HAVE FOR YOU MADAM CHAIR AND THE BOARD.

>> CHAIR: ENJOY THAT. ATTORNEY COMMENTS?

>> NONE AT THIS TIME. >> CHAIR: ANYBODY ON THE BOARD HAVE ANY COMMENTS? ALRIGHT, MEETING ADJOURNED.

* This transcript was compiled from uncorrected Closed Captioning.