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THE RECORDING.[PSPRS Board Meeting June 8, 2023.]
RIGHT, WE ARE RECORDING.IT IS 10 0 6 ON THURSDAY, JUNE EIGHT.
LET'S CALL THIS MEETING OF THE P S P R S TO ORDER.
UH, OUR FIRST ITEM IS TO DO THE PLEASURE OF ALLEGIANCE.
ALLEG 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.
PRESENT, UH, BOARD MEMBER COREY COOPERMAN.
PRESENT BOARD MEMBER LYNN ZAKK.
SHE'S, DID YOU JUST CALL ME? YES.
DETECTIVE EVANGELISTA IS EXCUSED.
SO WE HAVE A A, WE DO HAVE A QUORUM.
THE NEXT ITEM, OUR AGENDA IS THE CONSENT AGENDA, WHICH IS INCLUDED IN THE PACKET.
OH, DID YOU JUST MENTION IT? UM, PUBLIC PRESENT PLEASE.
IF THERE'S, EXCUSE ME, PUBLIC, IF THERE'S A, THERE ARE NO CURRENT MEMBERS.
THERE ARE NO MEMBERS OF THE PUBLIC PRESENT IN YOU IN THE MEETING.
SO CONSENT AGENDA, WHICH IS APPROVAL OF THE APRIL 18, 20, 23 MINUTES, WHICH ARE IN THE PACKET.
IF YOU HAD A CHANCE TO LOOK AT THEM, I WILL ENTERTAIN A MOTION FOR APPROVAL OF THE MINUTES.
I MOVE TO APPROVE THE MINUTES.
CAN I HAVE A SECOND? IS THERE A SECOND? I'LL SECOND THAT.
ANY, ANY OTHER QUESTIONS? I'LL HAVE TO RECUSE MYSELF SINCE I WASN'T AT THAT MEETING.
ALL IN FAVOR OF APPROVING, UH, UH, APPROVING THE, THE MOTION, SAY AYE.
ANY AGAINST WITH ONE ABSTENTION THEN IS, UH, APPROVED.
THEN THE NEXT ITEM, OUR AGENDA IS A CALL TO THE PUBLIC AND SEEING NO MEMBERS OF THE PUBLIC.
WE'LL CLOSE THAT ITEM ON THEIR AGENDA.
ITEM FOUR IS ACKNOWLEDGEMENT FOR THE END OF TERM FOR ANN COREY AND A NEW, UH, COUNCIL APPOINTEE, BOARD MEMBER COREY COOPERMAN.
SO I DID, UH, ACKNOWLEDGE ANN'S SERVICE TO PS P R S AT THE WEST COUNCIL MEETING.
WE DEFINITELY APPRECIATE THE TIME THAT SHE SERVED WITH US.
COREY COOPERMAN, WHO BRINGS AN A, A BEAUTIFUL BACKGROUND FOR US IN, UH, MEDICAL OR MEDICAL BACKGROUND.
LET'S MOVE ON TO ITEM FIVE, WHICH IS NOW OUR REVIEW OF THE 2022 ACTUARIAL VALUATION REPORT BY THE FINANCIAL SERVICES DEPARTMENT.
WE HAVE SHERRY WHITE IN THE AUDIENCE HERE TO, UH, TO BRIEF US.
THIS IS AN ITEM THAT IS IN OUR RULES OF PROCEDURE THAT, THAT WE ARE TO HEAR THIS ITEM, UH, ONCE A YEAR.
AND SO WE APPRECIATE FINANCE FOR BEING HERE.
SO, UM, IT, THIS IS A, UH, PRESENTATION ON THE JUNE 30TH, 2022 REPORT.
OBVIOUSLY, WE'RE NOT QUITE AT JUNE 30TH, 2023 YET.
UM, SO IT IS ON THE 22 REPORT.
UM, THE PART OF THE REQUIREMENTS THAT PSPS IS, HAS TO DO IS PROVIDE AN ACTUARIAL REPORT TO EACH ONE OF THE AGENCIES TO SHOW WHAT THE STATUS IS OF OUR INDIVIDUAL PLANS.
UM, PS P R S HOLDS ALL THE MONEY FOR EVERYONE AND, UM, GAINS EFFICIENCIES AND INVESTMENTS BY HA BY POOLING ALL OF THOSE INVESTMENTS TOGETHER.
BUT THEY DO THE TRACKING OF THE LIABILITIES AND HOW MUCH OF THE ASSETS ARE REPRESENTED FOR SEDONA INDIVIDUALLY BY EACH AGENCY SO THAT WE KNOW EXACTLY WHERE WE STAND COMPARED TO OTHER AGENCIES.
UM, THE ACTUARIAL REPORT IS USED ALSO TO, UM, IDENTIFY WHAT THE CONTRIBUTION RATE WOULD BE FOR, UM, BECAUSE OF THE WAY THE TIMELINE IS, IT'S REALLY LIKE TWO YEARS LATER.
SO FOR THE FISCAL YEAR, 23, 24, THIS 22 REPORT IS DETERMINING THE RATE FOR THAT.
CUZ IF WE WERE WAITING FOR THE JUNE 30, 23 REPORT FOR THE 24 RATE, LIKE WE'D BE HALFWAY OR MORE THROUGH 24 BEFORE WE EVEN KNEW WHAT THE RATE WAS.
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OKAY.SO MOVING ON TO THE NEXT SLIDE.
SO WE HAVE A TABLE THERE THAT SHOWS THE, UM, UNFUNDED STATUS OF P S P R S.
UM, SO SHERRY, DO YOU WANT TO TAKE QUESTIONS IF WE HAVE ANY, JUST AT ANY TIME OR WHAT'S YOUR PREFERENCE? YEAH, THAT, THAT'S FINE.
SO, P S P R S, UM, SEVERAL YEARS AGO, AND I HAVE A, A SLIDE ON SOME OF THE HISTORY, UM, LIKE REALLY SUFFERED A LOT ON THEIR INVESTMENTS AND THERE WAS SOME POLICY DECISIONS THAT WERE MADE AND HOW BENEFITS WOULD BE PAID THAT WERE VERY, UM, DETRIMENTAL TO THE STATUS OF THE PLAN BECAUSE THEY DIDN'T ACTUALLY HAVE LIKE A FUNDING PROCEDURE TO COVER THOSE BENEFITS.
SO, UM, IT'S REALLY, PSPS IS KIND OF IN THIS RECOVERY MODE OF TRYING TO RECOVER FROM THAT, THAT STATUS I'VE GOT HERE ALL THE WAY BACK TO, UM, 2016, UH, THE STATUS OF WHERE WE'VE BEEN AT.
AND AS YOU CAN SEE, SO LIKE THE, THE LIABILITY, THE ESTIMATED LIABILITIES, WHICH IS THE TOP ROW, YOU CAN SEE THAT THOSE HAVE BEEN GROWING OVER TIME, BUT WE'VE ALSO BEEN GROWING OUR ASSETS.
SO THE UNFUNDED LIABILITY HAS HOVERED AROUND THE FOUR AND A HALF TO 5 MILLION.
THE FUNDED STATUS LOOKS AT, UM, HOW MUCH OF THE LIABILITIES ARE FUNDED.
SO FOR THE FISCAL YEAR, THE JUNE 30, 22 OF THAT 17 MILLION OF THE LIABILITIES, SO THE FUNDED PORTION IS THE 11.9 MILLION OF ASSETS, WHICH REPRESENTS A 70% FUNDED STATUS OF THE PLAN.
SO WE'RE BASICALLY UNDERFUNDED OR UNFUNDED BY THE 30%.
OUR GOAL IS TO GET TO A HUNDRED PERCENT.
UM, AND WE HAVE BEEN WORKING TOWARDS THAT.
AND FROM A GENERAL STANDPOINT, SHERRY SEDONA, 70%, WE ARE KIND OF IN THE, THE GOOD CATEGORY OF CITIES IN ARIZONA AND OUR PERCENTAGE, YES, THERE ARE, THERE ARE SOME THAT ARE MUCH WORSE OFF.
ARE THERE ANY OF A HUNDRED PERCENT IN PS P R S CITIES? UH, YEAH, SO THERE'S SOME THAT, UM, CHOSE TO JUST TAKE A BIG LOOK.
OH YEAH, SOME PAY IT OFF, SOME ISSUE BONDS TO PAY OFF.
AND SO THEY'RE TECHNICALLY, LIKE, THEY STILL HAVE DEBT OUT THERE BECAUSE THEY ISSUE BONDS.
BUT IN THE PS P R S PLAN, THEY LOOK LIKE THEY'RE A HUNDRED PERCENT FUNDED.
UM, SO ON THAT FIRST SLIDE, THAT WAS TIERS ONE AND TWO, AND THEN THIS NEXT SLIDE, UM, THE UNFUNDED LIABILITY, WHICH IS REALLY ACTUALLY A POSITIVE HERE, UM, IS, IS OVERFUNDED FOR TIER THREE.
SO, UM, WITH THE, UM, ISSUES AND HOW THINGS WERE, UM, SET UP FOR THE TIER ONE AND TIER TWO AND NOT REALLY HAVING THOSE BENEFITS FUNDED, THEY, UH, THE LEGISLATURE, UM, PUT A, A END DATE ON THOSE WHO COULD ENTER INTO THAT PLAN AND CALLED.
SO THERE'S LIKE A TIER ONE, TIER TWO OF LIKE A LITTLE BIT DIFFERENT IN HOW THOSE ARE SET UP.
AND THEN TIER THREE IS BASICALLY LIKE A WHOLE NEW, WE'RE STARTING NEW WITH EVERYONE THAT'S HIRED AFTER, OOH, WHAT'S TODAY? 20 FOR TIER TWO? FOR 23 TIER TIER THREE.
IT WAS, IT WAS 2017, IT WAS JULY 1ST, 2017.
WE JUST DIDN'T HAVE IT IN HAND.
YEAH, WE DIDN'T HAVE IT YEARS AGO.
SO TIER THREE IS SET UP DIFFERENTLY THAN THE TIER ONE AND TIER TWO WHERE I TALKED ABOUT HOW TIER ONE AND TIER TWO, THE PSPS S LIKE, KEEPS TRACK OF OUR, UM, LIABILITIES AND OUR SHARE OF THE ASSETS SEPARATELY AND EVERYONE HAS THEIR OWN TRACKING.
UM, THE TIER THREE IS SIMILAR TO THE WAY ALL THE REST OF THE CITY EMPLOYEES THAT ARE IN THE ASRS PLAN WHERE IT'S THIS, UM, JUST COST SHARING PLAN WHERE IT'S ALL, EVERYBODY'S ALL POOLED TOGETHER FOR THE, EVERYONE IS IN THE PLAN.
SO ASRS IS LIKE, YOU KNOW, AT THE STATE LEVEL, THE COUNTY LEVEL, THE CITY LEVEL, THE SCHOOL DISTRICT LEVEL, THE, ALL OF THAT.
SO, UM, ALL OF THE, UM, NON-SWORN EMPLOYEES, RIGHT? SO TIER THREE IS LIKE THAT WHERE IT'S JUST A, A SHARING ACROSS THE STATE OF EVERYONE WHO'S IN TIER THREE.
SO WHEN YOU LOOK AT THE STATUS ON THIS ONE, IT IS ACTUALLY OVERFUNDED.
UM, AND THEY HAVE, UM, KIND OF ESTABLISHED RATES TO MAKE SURE THAT THEY WOULD BE IN A POSITIVE STATUS, UM, AND GET SOME BUILDUP BECAUSE IT WAS SO NEW AND TO GET SOME OF THAT HISTORY AND THAT EXPERIENCE IN THERE.
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SO AS, UM, THIS EXTENDS OUT AND SOME OF THE TIER THREE START GETTING TO A POINT TO WHERE THEY HAVE SOME RETIREMENTS, UM, WHICH IS LIKE FULL RETIREMENT, IT MIGHT BE A WHILE, BUT LIKE DISABILITY RETIREMENTS AND STUFF LIKE THAT, YOU KNOW, COULD HAPPEN AT ANY TIME.SO, UM, SO IT'S ACTUALLY SHOWING AS OF 22, UM, IT'S ACTUALLY, UM, EXCEEDS BY 7.2 MILLION.
AND SO IT'S AT A, A FUNDED STATUS OF 110%.
HOW MANY EMPLOYEES DO WE HAVE IN TIER THREE? I HAVE A HAVE IT ON A SLIDE.
AND LYNN, YOU'RE STILL WITH US OUT THERE? YES.
NO, I HAVE TO GET IT OFF MUTE WHEN I HEAR FROM YOU, BUT YES.
I'VE BEEN THROUGH A FEW OF THESE ACTUARIAL REPORTS IN MY TIME AND AMAZINGLY I STAYED PERKY
SORRY, CASEY'S ON THE NIGHT SHIFT.
WE'RE TRYING TO GET HIM THROUGH COPY.
UM, SO THEY ALWAYS PROVIDED THE ACTUAL REPORT A DISCUSSION ABOUT WHY THE LIABILITY AMOUNT CHANGED AND THE UNFUNDED STATUS CHANGED.
SO, UM, ON THE ASSET SIDE OF THE CALCULATION, THE AVERAGE RETURN WAS 7.1%, UM, FOR THE TIERS ONE AND TWO, THE 7.7% FOR TIER THREE, THE WAY THEY DO THEIR CALCULATIONS WHEN THEY'RE CALCULATING FOR THE, UM, ACTUARIAL ESTIMATE OF WHERE THINGS WILL BE, THEY ARE USING AN ASSUMED RATE OF 7.3, UM, FOR TIERS ONE AND TWO AND A 7% FOR TIER THREE.
SO THE AVERAGE RETURN WAS A LITTLE BIT LESS AND PART OF THAT, SO THAT WASN'T HOW MUCH WAS ACTUALLY IT SAYS AVERAGE RETURN BECAUSE WHAT THEY DO IS THEY DO THIS SEVEN YEAR SMOOTHING, UM, WHERE THEY TAKE WHAT THE INVESTMENT RATE OF RETURN WAS FOR THE PAST SEVEN YEARS AND THEN AVERAGE THAT.
SO, UM, IT'S NOT A JUMPING UP AND DOWN OF THESE SPIKES OF FROM ONE YEAR TO THE NEXT BECAUSE 2021 WAS 27% AND 2022 WAS MINUS 1.85%.
SO INSTEAD OF HAVING THOSE BIG JUMPS ON THE, THE NUMBERS, THEY SMOOTH IT, UM, PAYROLL BASE.
SO, UM, WE HAD LOWER PAYROLL GROWTH COMPARED TO THE ASSUMPTIONS.
UM, THIS IS ONE OF THE THINGS THAT THEY'VE BEEN WORKING ON BECAUSE THEY HAD A REALLY HIGH ASSUMPTION OF WHAT THE PAYROLL BASED GROWTH WOULD BE AND LIKE ACROSS THE STATE IT WAS LIKE IT WAS UNREALISTIC.
SO THEY'VE BEEN GRADUALLY RAMPING THAT DOWN.
UM, BUT IT DOESN'T, IT DOESN'T IMPLY THAT PAYROLLS GOING DOWN.
IT'S JUST THE AMOUNT THAT THEY HAD ESTIMATED IT WOULD GO UP WAS MORE THAN SEEMED OF CONCERN TO ME.
AND HOW DOES THAT AFFECT THE UNFUNDED LIABILITY IN THE END? IF OUR PAYROLL GROWTH IS LOWER, WE GOT LESS ASSETS COMING IN THE PLAN.
SO THE, WHEN THEY CALCULATE WHAT THE RATE IS THAT EVERYONE WOULD PAY IN, UM, AND IT'S CALCULATED INDIVIDUALLY.
SO THEY SAY, OKAY, THEY'RE ESTIMATING WE NEED TO HAVE THIS MUCH CONTRIBUTED TO THE PLAN AS LIKE JUST A FIXED DOLLAR AMOUNT.
RIGHT? AND THEN THEY SAY, OKAY, SO WE'LL ASSUME BASED OFF OF THE INFORMATION THAT THEY HAVE, THERE'S THIS MANY PEOPLE IN SEDONA THAT ARE IN THE PLAN, CALCULATE, WELL THEN THAT MEANS THAT THE RATE IS 34% OR WHATEVER.
BUT IF YOU HAVE, UM, AND BASED OFF OF LIKE WHAT THE INFORMATION THEY HAVE ON AND THEIR ASSUMPTIONS ON WHAT THE PAY IS GOING TO BE.
SO IF IT'S LESS THAN THAT AND YOU TAKE THE 34% BASED OFF OF A LOWER NUMBER, YOU'RE ACTUALLY CONTRIBUTING LESS RIGHT.
THOUGHT YOU WERE GOING TO PUT IT.
SO THERE'S LESS IN THE FUND THEN TO GROW AT YOU ASSUME THE ACTUAL RATE, RIGHT? ASSUME RATE, YEAH.
UM, AND THEN ON THE, THE LIABILITY SIDE, THEY'RE SAYING THAT IT WAS ACTUALLY HIGHER THAN EXPECTED SALARY INCREASES.
WE DID A PRETTY SIGNIFICANT BUMP.
WE'VE ACTUALLY DONE THAT THE LAST FEW YEARS OF TRYING TO ADJUST AND GET POSITIONS, BUT WE ALSO HAD A LOT OF VACANCIES TOO.
SO THAT'S PART OF THAT DIFFERENCE BETWEEN THE PAYROLL BASE MM-HMM.
BECAUSE WHEN YOU DON'T, DON'T HAVE THE BODIES HERE, THEY'RE NOT CONTRIBUTING INTO THE PLAN.
THEY'RE NOT PART OF THAT CALCULATION.
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I MENTIONED ON THE ASSUMPTIONS, UM, SO PART OF THE ADJUSTMENT IS, IS CHANGING SOME OF THE ASSUMPTIONS THAT THEY'RE DOING.SO THEY'RE, THEY DECREASE THE EARNINGS RATE FROM 7.3 TO 7.2 AND UM, THEY DECREASE THE PAYROLL GROWTH ASSUMPTION FROM 3% TO TWO AND A HALF PERCENT.
AND THAT'S BECAUSE OF UNFILLED POSITIONS? IT'S, IT'S NOT THAT THE PAYROLL GROWTH ASSUMPTION IS SOMETHING WHERE THEY, IT'S A STANDARD ASSUMPTION ACROSS ALL THE PLANS FOR THE ENTIRE STATE.
SAME WITH THE, THE AS ASSUMED EARNINGS RATE.
SO MOVING ON TO THE NEXT SLIDE.
UM, SO HERE'S SOME HISTORY ON THE, UM, GREEN BAR IS THE UNFUNDED LIABILITY AMOUNTS AND THEN THE KIND OF TEAL LINE IS THE FUNDED STATUS.
SO YOU CAN SEE THAT, UM, 2010 WE WERE PRETTY HIGH UP THERE.
WE WERE AT 91% FUNDED AND WE HAD AN UNFUNDED LIABILITY OF ONLY A HALF A MILLION DOLLARS.
BUT THEN THEY STARTED HITTING THE, UM, UM, ISSUES WITH THE WAY THAT THEY HAD DONE THE ASSUMPTIONS FOR SOME OF THE BENEFITS AND SOME OF THE PEOPLE RETIRING OUT AND, UH, IMPACTS OF, UM, HOW THOSE BENEFITS THAT WERE GETTING PAID OUT WERE, WERE IMPACTING THE PLAN.
AND THEN YOU CAN SEE OUR UNFUNDED LIABILITY JUST STARTED JUMPING UP.
UM, AND WE WERE AT A LOW OF 58% ON OUR FUNDED STATUS IN 2017.
SO WE WERE NOT NEARLY AS BAD OFF AS A LOT OF OTHER PLANS.
SO IT'S BEEN EASIER FOR US TO WORK ON, UM, GETTING TO A BETTER PLACE AND WHERE WE'RE AT, CUZ WE'RE NOW AT 70% OF OUR FUNDED STATUS.
UH, BUT THERE WERE SOME WHERE THEY WERE SO BAD OFF THAT THEY HAD LIKE CONTRIBUTION RATES WHERE IT WAS LIKE A HUNDRED PERCENT OR MORE OF WHATEVER THE EMPLOYEE'S PAY WAS THAT HAD TO BE CONTRIBUTED TO THE PLAN WHERE LIKE AT 34 BEEN AROUND HOVERING AROUND 30, 34%.
UM, SO MOVING ON TO THE NEXT SLIDE.
SO THIS IS THE TIER THREE, WHICH IS THE POOLED PLAN FOR EVERYONE.
SO THIS IS JUST A STATEWIDE POOLED AND SO WE'RE IN A REALLY GOOD POSITION HERE BECAUSE THE, THE GREEN BAR THAT IS THE UNFUNDED LIABILITY IS ACTUALLY OVERFUNDED.
SO WE'RE WELL BELOW THAT ZERO LINE.
UM, AND THEN THE FUNDED STATUS, UM, IS GOOD.
SO HERE'S A HISTORY ON, UM, THE RATES.
AND SO, UM, YOU CAN SEE LIKE WE WERE IN THE THIRTIES, BUT NOW FOR 24 THEY BUMPED IT UP TO 40%.
UM, WE WERE AS LOW BACK IN 2007 OF 10%
AND AT 10% AND WHEN ALL THESE BENEFITS STARTED HITTING IN THAT WEREN'T FUNDED, THAT WAS JUST NOT ANYWHERE NEAR PLUS MISMANAGEMENT, PLUS MISMANAGEMENT OF INVESTMENTS
THEY WEREN'T DOING A LOT OF GOOD DECISIONS ON THAT.
BUT THEY WERE ALSO BEING OVERLY CONSERVATIVE BECAUSE THEY KNEW THEY HAD TO BE ABLE TO PAY THESE BENEFITS OUT AND SO THEY WEREN'T INVESTING MM-HMM.
SO, SO, UM, ON THE TIER THREE CONTRIBUTION RATES, SO THERE'S THE, UH, DB, THE DEFINED BENEFIT PLAN AND THE D DC THE DIVINE CONTRIBUTION PLAN THAT ARE TRACKING PRETTY CLOSELY.
UM, AND SO THE TIER THREE, UM, IS THE, THE WAY THAT THEY DID THIS TO TRY TO HELP OUT THE WAY THAT THE FUNDING WOULD WORK FOR THE CITIES IS PART OF THE RATE FOR THE TIER THREE IS A PAYMENT TOWARDS WHAT THEY CALL THE LEGACY, LEGACY PLAN, WHICH IS THE TIERS ONE AND TWO.
SO THERE'S A PORTION OF THIS 35 AND 36% THAT'S ACTUALLY PAYING TOWARDS THE UN LIABILITY OF THE TIER ONE AND TIER TWO.
UM, AND DEFINED BENEFIT AND DEFINED CONTRIBUTIONS.
SO LIKE DEFINED BENEFIT IS LIKE THEY HAVE SPECIFICALLY DEFINED, OKAY, WHAT IS YOUR BENEFIT GOING
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TO BE? AND YOU GET PAID OUT THAT AMOUNT AND THE RATE IS HOW THEY GET THE MONEY IN TO HELP COVER THAT.WHEREAS A DEFINED CONTRIBUTION IS LIKE A SET CONTRIBUTION AMOUNT AND WHATEVER THOSE CONTRIBUTIONS EARN, THAT'S WHAT YOU GET PAID OUT IN THE END.
SO THERE'S RISKS EITHER WAY AS TO WHICH PLAN, UM, EMPLOYEES CHOOSE.
SO ON THE NEXT SLIDE, UM, IS SOME HISTORY HERE OF THE CONTRIBUTIONS THAT THE CITY HAS MADE, UM, TO THE PLAN.
AND UM, SO ON THE, THE MOST RECENT, SO THE 2122, UM, FOR THE NORMAL COST, UM, WHICH IS, UM, THE CURRENT COST AND NOT ADDRESSING THE UNFUNDED LIABILITY, THE RATE, UM, THAT WOULD'VE BEEN PART OF THE 37% FOR FISCAL YEAR 22.
THE NORMAL COST PORTION WAS THE 12.87.
THE 9.94 IS THE, UM, TIER THREE EMPLOYEES.
AND THEN THE 24.2% IS THE, UM, ADDED ON AMOUNT TO THE RATE TO GET TO THE TOTAL OF 37% THAT WE'RE PAYING FOR TIER ONE, TIER TWO TO, UM, CONTRIBUTE TO THE UNFUNDED LIABILITY.
THE 9.94 FOR TIER THREE PLUS THE 24.2 IS HOW WE GET TO THOSE HIGHER NUMBERS ON THE CONTRIBUTION RATE FOR THE CITY FOR TIER, UM, THREE EMPLOYEES.
SO THE, UM, COST TO THE CITY FOR THE, THE NORMAL AMOUNT, UM, IS ESTIMATED AT 232,000.
SO IF WE WERE AT A HUNDRED PERCENT FUNDED IN OUR PLAN AND DIDN'T HAVE TO CONTRIBUTE ALL THIS TOWARDS THE UNFUNDED LIABILITY, WHO OUR CONTRIBUTIONS TO THE PLAN, LIKE THAT'S ALL IT WOULD BE
UM, THE REQUIRED AMOUNT OF THE 24.2 UH PERCENT TO THE, THE PLAN IS 436,000.
AND THEN THE, UM, CITY HAS CHOSEN TO, UM, ADD ADDITIONAL AMOUNTS EACH YEAR.
SO WE WERE AT SAYING WE WERE GONNA DO A LEVEL FUNDED AMOUNT OF A MILLION DOLLARS A YEAR.
IT WAS UP TO UH, 1.1 MILLION, BUT IN 22 IT WAS THE, UH, 1 MILLION.
AND THEN ALSO WE'RE USING THE, UM, PROP 2 0 7 MONEY, THE MARIJUANA MONEY, UM, TO ALSO PAY TOWARDS AND CAN BRING THIS DOWN.
UM, SO, UH, BASED OFF OF UM, AN AVERAGE WAGE OF 80,000, UM, SO HERE'S A, A LOOK AT WHAT TIER ONE AND TIER TWO COMPARED TO TIER THREE.
THE CONTRIBUTIONS ARE BASED OFF OF THE RATES.
SO ON THE NORMAL COST LINE, SO IT'S 10,000 THAT THE CITY IS PAYING PER, ON AVERAGE PER EMPLOYEE AT THE 80,000 AVERAGE WAGE.
AND FOR THE TIER THREE IT'S UM, 7,000.
AND THEN THE UNFUNDED LIABILITY THAT WE'RE PAYING, UM, PER EMPLOYEE IS THE 18,000 IN BOTH TIERS AND THEN THE TIER THREE.
UM, SO THEY'VE BEEN KEEPING IT AT 9.94, UM, AS THE RATE THAT THEY'RE CALLING IT THIS LEVELING CUZ THEY'RE TRYING TO AVOID THESE SPIKES IN THE RATES BECAUSE THE PLAN IS SO NEW AND SO YOUNG AND, AND IT'LL BE A WHILE.
SO IT'S ACTUALLY LESS THAN A THOUSAND DOLLARS PER, PER PERSON.
SO, UM, BECAUSE OF THAT LARGE AMOUNT FOR THE UNFUNDED LIABILITY, THE AMOUNT THAT THE CITY IS PAYING FOR TIER ONE AND TIER TWO COMPARED TO TIER THREE IS PRETTY CLOSE.
UM, WHICH ALL RELATES BACK TO TECHNICALLY TIER ONE AND TIER TWO.
SO 28,000 COMPARED TO 26 FOR THE EMPLOYEES.
UM, SO THE TIER ONE EMPLOYEES, UH, PAY 7.65%.
UM, AND SO IT COSTS THEM, UM, ON THAT AVERAGE WAGE OF 80,000, IT COSTS THEM 6,000.
UH, THE TIER TWO AT THE 11.65, THAT'S ACTUALLY GOING TO BE CHANGING EFFECTIVE JULY ONE IS GONNA GO DOWN TO 7.65, BUT AT THE 11.65 IT'S 9,000.
AND THEN FOR THE TIER THREE EMPLOYEES AT THE 9.94 RATE, IT'S 8,000 PER EMPLOYEE THAT THEY'RE CONTRIBUTING TO THE PLAN.
SO I'VE GOT A COMPARISON HERE, UM, ON THE PIE CHARTS OF, UM, SEDONAS, UH, COVERED EMPLOYEES AND THE SYSTEM AS A WHOLE, AND THIS IS JUST TIER ONE AND TIER TWO, I HAVE THE NOTE DOWN THERE.
IT WAS SIX EMPLOYEES FOR TIER THREE.
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UM, I, I KNOW THEY DON'T LOOK LIKE VERY SIGNIFICANT DIFFERENCES COMPARED TO THE SYSTEM-WIDE PLAN, BUT IT ACTUALLY IS PRETTY SIGNIFICANT IN THE FACT THAT WE ARE DOING SO WELL IN OUR PLAN COMPARED TO SOME OTHER AGENCIES.SO WE HAVE 43% ACTIVE, UH, COMPARED TO THE SYSTEM OVERALL OF 40%, UM, 37% RETIREE AND BENEFICIARIES COMPARED TO THE OVERALL SYSTEM OF 47%.
RIGHT NOW WE DON'T HAVE ANYBODY, WELL AT LEAST FOR THE 22 REPORT, I DON'T KNOW IF THERE'S GONNA ANYBODY IN DROP EVEN AFTER THIS REPORT.
UM, AND THEN, UM, INACTIVE, UM, VESTED EMPLOYEES, UM, 13% COMPARED TO THE SYSTEM WIDE.
SO ONE OF THE BIG THINGS IS LIKE THAT PIECE OF THE PIE ON THE RETIREES, WE DON'T HAVE AS MANY PEOPLE DRAWING OUT AND DRAWING BENEFITS AND DRAWING DOWN ON THE MONEY.
WE HAVE MORE A HIGHER LEVEL OF ACTIVE EMPLOYEES CONTRIBUTING INTO THE PLAN.
AND SO THAT HELPS WHERE WE'RE AT ON OUR FUNDED STATUS.
WE WERE, UM, NOT REALLY HAVING PEOPLE RETIRE OUT OF OUR PLAN.
THEY WOULD WORK HERE FOR A LITTLE WHILE, GO SOMEWHERE ELSE, GO RETIRE OUTTA SOMEBODY ELSE'S PLAN.
WE'VE HAD A LOT BETTER, UM, RETENTION OF EMPLOYEES AND SO HOPEFULLY PEOPLE LIKE CASEY WILL STAY HERE UNTIL HE'S READY TO RETIRE OUT OF OUR PLAN.
BUT IT WILL HAVE AN IMPACT ON OUR WORK AT, ON OUR STATUS.
BUT WE HOPEFUL, HOPEFULLY IT'LL BE A WHILE BEFORE CASEY RETIRES.
AND THEN HOPEFULLY WE WILL HAVE GOTTEN TO THE POINT WHERE WE ARE AT THE FULLY FUNDED STATUS BY THEN.
ARE WE SEEING THESE PERCENTAGES DRIFT TOWARDS THE AVERAGES IN A SUBSTANTIAL WAY OR IS IT STILL YEAH, NOT SUBSTANTIALLY.
SO THEN THE NEXT SLIDE, UM, ONE OF OUR STRATEGIES THAT WE'VE TAKEN, UM, SINCE FISCAL YEAR 26 IS TO ESTIMATE HOW MUCH WE'RE GOING TO PAY INTO THE PLAN, UM, FOR THE ENTIRE FISCAL YEAR AND PAY IT IN JULY SO THAT WE EARN EXTRA INVESTMENT EARNINGS ON THAT MONEY, UM, INSTEAD OF WAITING TILL EACH PAY PERIOD TO PAY WHATEVER IS FOR EACH PAY PERIOD.
SO, UM, IT WASN'T A WHOLE LOT IN 16, UM, THOUSAND $600.
31 18 50 8,000, 1920 2000 FISCAL YEAR 20, UM, THINGS WEREN'T QUITE AS GOOD AT AT 5,000.
BUT THEN WE JUMPED UP IN 21 TO A HUNDRED.
1021 WAS WHEN THEY GOT THE 27%, UM, INVESTMENT EARNINGS FROM ALL THEIR CHANGES AND EVERYTHING THAT, UM, THEY WERE FINALLY GETTING SOME RESULTS FROM THAT.
22 IS WHEN THE RATE IS ACTUALLY A NEGATIVE RATE.
SO WE ACTUALLY SHOWED, UM, A LOSS OF 17,000.
WE DIDN'T SHOW, UH, INCREASE, BUT IT IS, UM, AN UNREALIZED INVESTMENT LOSS.
AND WHAT THAT MEANS IS, UM, ACCOUNTING RULES SAY YOU HAVE TO LOOK AT THE MARKET VALUE OF, OF YOUR ASSETS.
AND EVEN THOUGH YOUR ASSET IS WORTH, SAY LIKE YOU HAVE A $2 MILLION, UM, INVESTMENT AND THE VALUE OF IT AT JUNE 30 FOR YOUR FINANCIAL STATEMENTS IS 1.5, ACCORDING TO THE MARKET, WE HAVE TO MARK IT DOWN TO THE 1.5 EVEN THOUGH WE HAVE NO INTENTION OF SELLING IT, AND IT WILL MATURE AT THE 2 MILLION.
SO IF WE SOLD IT, IT WOULD BE A REALIZED LOSS THAT WE REALLY DID LOSE THE HALF MILLION DOLLARS.
SO THIS, I I'M NOT REALLY ALL CONCERNED ABOUT THIS UNREALIZED LOSS BECAUSE THEY'RE NOT GONNA GO AND JUST LIKE TAKE ALL THESE LOSSES THEY'RE GONNA, THEY'RE GONNA HOLD ONTO.
UM, SO, AND WE EXPERIENCED THE SAME THING IN OUR OWN INVESTMENT POOL AND UM, WE INVEST SOME OF THE CITY'S MONEY WITH THE STATE TREASURER'S POOL AND THEY WENT THROUGH THE SAME, I MEAN IT'S JUST, UH, IT IS THE STATE OF THE WAY THE MARKET HAS BEEN, UM, BECAUSE INTEREST RATES WERE SO LOW.
AND SO ALL THOSE INVESTMENTS THAT WERE PURCHASED AT THE LOWER INTEREST RATES AND THEN INTEREST RATES STARTED GOING UP CUZ THE FEDS KEPT INCREASING INVESTMENT, THE EARNINGS RATES AND, UM, AND SO TO GO TO THE MARKET AND SELL AN INVESTMENT THAT HAS A LOW INTEREST RATE, THEY'RE GONNA WANT TO DISCOUNT ON THAT.
AND THEN THAT'S WHY MAYBE A 2 MILLION INVESTMENT, YOU CAN ONLY GET 1.5 MILLION FOR IT, TED.
[00:30:01]
UM, WE HAVE NEXT WEEK WE HAVE THE, UM, BUDGET WORK SESSIONS WITH COUNCIL WHERE WE'RE GOING TO BE PRESENTING OUR RECOMMENDATIONS FOR FUNDING APPROACH, UM, FOR FISCAL YEAR 24.SO WE'RE RECOMMENDING CONTINUING AT THE LEVEL OF FUNDING FOR, UM, FISCAL YEAR 24 AT THE 1.1 MILLION.
UM, THAT WILL RESULT IN AN ADDITIONAL CONTRIBUTION OF ABOUT 140,000.
UM, AS OUR, UM, AND, AND THIS IS BASED OFF OF BUDGET NUMBERS, SO IF THE POLICE DEPARTMENT CONTINUES TO HAVE VACANCIES, THE ACTUAL ADDITIONAL CONTRIBUTION WOULD END UP BEING MORE BECAUSE WE'RE WE'RE SAYING IT'S GONNA BE 1.1 MILLION REGARDLESS OF HOW MANY PEOPLE ARE HERE OR WHATEVER.
SO, UM, SO THERE COULD, IT COULD END UP BEING MORE OF THAT AND WE'VE HAD, I DON'T KNOW, AT LEAST TWO OR THREE VACANCIES LIKE RUNNING FOR A WHILE.
SO, SO THAT ACTUALLY COULD END UP BEING MORE, UM, AND THEN CONTINUING USING THE PROP 2 0 7 MONIES AS ADDITIONAL CONTRIBUTIONS.
SO, UM, WE'RE ESTIMATING THE GROWTH IN THOSE REVENUES.
I THINK WE PUT IN LIKE 79,000, UM, FOR THE AMOUNT THAT WOULD COME FROM THERE.
AND THEN, UM, THE, THE WAY WE'RE APPROACHING THIS IS THAT WE WOULD HAVE THE UNFUNDED LIABILITY, UH, BY PAID OFF BY THE END OF THE AMORTIZATION PERIOD.
SO, WHICH BASICALLY IS LIKE THE BEGINNING OF FISCAL YEAR 2037, END OF 2036, UM, 14 YEARS REMAINING.
AND, UM, I'M HOPEFUL PETE'S IN THE ROOM.
SO FOR FISCAL YEAR 23, COUNCIL SAID, YOU KNOW WHAT, WE WANNA DO A LITTLE MORE BECAUSE WE'VE GOT SOME GENERAL FUND SURPLUS.
AND SO THEY SAID, YOU KNOW WHAT, WE WANNA TAKE A MILLION DOLLARS AT GENERAL FUND SURPLUS AND ADD IT TO HOW MUCH WE'RE PAYING TO THE FISCAL YEAR 23 FOR THAT YEAR.
SO PUTTING A BUG IN P OR I'M HOPING THEY WILL DO SOMETHING SIMILAR AGAIN,
YOU DON'T THINK ABOUT ANY DOLLAR COST AVERAGE RIGHT OVER THE YEAR TO DO THAT.
WE, WE JUST PREPAY IT ALL IN JULY.
SO THE NEXT SLIDE, UM, SOME OF THE CHANGES THAT ARE COMING UP, SO I MENTIONED BEFORE, WHEN THEY DO THEIR INTEREST RATE ASSUMPTIONS, THEY USE THIS SEVEN YEAR SMOOTHING.
SO, UM, IT'S GOING TO BE IMPACTED BY THOSE INDIVIDUAL, UM, RATES THAT OCCUR.
AND SO THE, THE MINUS 1.85 IS THEN GOING TO BE IN THAT SEVEN YEAR SMOOTHING FOR THE NEXT SEVEN YEARS AND FOR THE NEXT SIX YEARS, THE PREVIOUS YEARS, 27% WILL BE IN THERE TO HELP RIGHT.
UM, THEY ARE, UM, REDUCING THE ASSUMED RATE FROM 7.3 TO 7.2.
UM, THE, UM, THEIR TI THE, THERE'S TALK ABOUT POSSIBLY REDUCING IT ALL THE WAY DOWN TO 7.0 THE, UM, AVERAGE ACROSS THE NATION OF THE, THE EARNINGS OVER TIME.
UM, AND IT'S NOT LIKE AN INDIVIDUAL ONE YEAR THEY'RE LOOKING AT LIKE AVERAGES IS ABOUT 7.1 AND WE'VE BEEN DOING A LITTLE BIT BETTER MOST OF THE TIME THAN THE 7.1, BUT THEY'RE STILL THINKING ABOUT BRINGING IT DOWN BECAUSE WHEN YOU BRING DOWN HOW MUCH YOU THINK THE INVESTMENT EARNINGS ARE GONNA COME IN, THEN THAT MEANS YOU'RE BASICALLY PUTTING MORE IN OF YOUR CONTRIBUTIONS.
AND IF YOU GET MORE IN YOUR INVESTMENT EARNINGS, IT JUST IS GRAVY TO ADD TOWARDS GETTING TO YOUR FUNDED STATUS.
MOST OF THE STATE PLANS HAVE ALREADY GOT TO 7% THOUGH WE'RE KIND OF LAGGING NOW IN ARIZONA.
HEART WIND NATIONWIDE ON THE ASSEMBLY.
UM, SO THEY LOOK AT, UM, ON THE ASSETS, THEY USE THIS ACTUARIAL METHOD OF VALUING WHAT THE ASSETS ARE, WHICH I DON'T WANT TO GET INTO LIKE ALL THAT COMPLICATION, BUT IF THEY USE WHAT THE MARKET VALUE WAS OF THE ASSETS AS OF THAT DATE, INSTEAD OF THIS AMORTIZED LOOKING AT THEIR ASSETS, UM, THE FUNDED STATUS, UM, AS OF JUNE 30 22 WOULD'VE BEEN 67.8% INSTEAD OF 69.7.
SO THAT'S BECAUSE OF THAT MARK TO MARKET THOSE UNREALIZED LOSSES THAT IT WOULD ACTUALLY BE LESS, A LOT OF TIMES THIS NUMBER IS HIGHER.
UM, AND THEN THEY ALSO LOOK AT, SO THE FISCAL YEAR 24 CONTRIBUTION RATE, IF THEY WOULD'VE USED THE MARKET VALUE AS A COMPARISON,
[00:35:01]
IT WOULD'VE PUT US AT A REQUIRED CONTRIBUTION OF THE 42% INSTEAD OF THE 40%.SO WE'RE DOING THAT LEVEL FUNDING APPROACH AND WE'RE SAYING WE'RE PUTTING IN 1.1 MILLION REGARDLESS, WHICH IS MORE THAN THE 40%.
UM, SO THE, THE MINIMUM REQUIRED PAYMENT, BASICALLY, LIKE WE'RE KIND OF IGNORING THAT, WE'RE SAYING WE'RE PUTTING IN MORE, UH, THE PAYROLL GROWTH ASSUMPTION.
UM, SO THEY'VE NOW REDUCED IT DOWN TO THE TWO AND A HALF PERCENT ANNUALLY.
UM, THEY, UM, HAVE LOOKED AT, SO OUR AGGREGATE 10 YEAR HISTORY HAS BEEN AT 4.4.
THEY KEEP UPDATING THAT EVERY YEAR.
WE HAD YEARS WHERE IT WAS LIKE ZERO.
UM, WHEN YOU SAY OUR DO YOU MEAN SEDONA OR? YES, YES.
UM, WHEN SOMEBODY RETIRES, THERE'S MANY, MANY TIMES WHERE WE GET SOMEBODY WHO'S LIKE A BRAND NEW RECRUIT COMING OUT OF THE ACADEMY, THEY STARTED A LOWER PAY MM-HMM.
AND SO THAT WHEN YOU AVERAGE ALL THAT OUT, YOUR PAYROLL GROWTH ACTUALLY GOES DOWN.
YOU KNOW, EVEN THOUGH PEOPLE ARE GETTING, DEPENDING ON HOW MUCH OF THAT IS HAPPENING COMPARED TO THE RAISES AND EVERYTHING, LIKE YOU CAN END UP IN TIMES WHERE IT'S ZERO.
SO, UM, SO THAT'S ACTUALLY APPROVED FOR US THAT WE'RE AT THE 4.4.
UM, BUT THE PLAN IS FOR THE WAY THEY CALCULATE THE LIABILITY WITH THE PAYROLL GROWTH ASSUMPTION IS THEY'VE TARGETED, UM, DECREASING BY A HALF PERCENT EACH YEAR UNTIL THEY GET TO 2%.
SO THAT FINAL, UH, WE'RE NOW THE 2.5 IN THE, IN THE 22 REPORT.
SO IN THE 23 REPORT, IT'S GONNA BE DOWN TO THAT 2% AND THEN IT'LL STAY IF THAT 2%.
AND WHAT'S THE EFFECT THERE, SHERRY, OF US HAVING A HIGHER PAYROLL GROWTH IN ACTUALITY THAN THE ASSUMPTION THAT'S GOING INTO THE PLAN? UM, IT ACTUALLY MEANS WE'RE CONTRIBUTING MORE THAN WHAT THEY'RE ESTIMATING.
WE NEED NEED TO, IF WE ARE MAKING THAT MINIMUM PAYMENT, OUR LIABILITIES ARE ALSO GROWING FASTER THAN THE LIABILITIES ARE ALSO GROWING.
BUT WHEN YOU'RE LOOKING AT LIKE THE, WHEN THEY CALCULATE THAT IT'S 40% AND WE HAVE A HIGHER PAYROLL GROWTH, RIGHT? WE'RE PAYING 40% ON A BIGGER NUMBER THAN THAN WHAT THEY THOUGHT IT WAS GOING TO BE.
UM, AMORTIZATION OF THE UNFUNDED LIABILITY.
OKAY, SO THE, UM, ORIGINAL, UM, THEY ORIGINALLY, THEY HAD THIS 30 YEAR CLOSE PERIOD TO, UM, GET THE UNFUNDED LIABILITY PAID OFF.
SO AS OF THE JUNE 30, 22 REPORT, IT WAS 15 YEARS REMAINING, UM, THEY GAVE US AN OPTION TO RE AMORTIZE THAT AND LIKE RESET WITH A NEW 30 YEAR PERIOD.
BUT WE SAID WE'RE NOT IN AS BAD A SHAPE AS A LOT OF THE OTHER CITIES ARE.
WE WANNA GET IT PAID OFF AS SOON AS WE CAN.
WE DON'T WANNA CARRY THIS DEBT FOREVER.
SO WE HAVE NOT OPTED FOR THAT.
UM, BUT THEY DID CHANGE TO THIS NEW APPROACH OF A LAYERED 15 YEAR AMORTIZATION.
WE'RE STILL TARGETING TO GET OUR UNFUNDED LIABILITY PAID OFF BY THE END OF THE CLOSE PERIOD, EVEN THOUGH THEY'RE DOING THIS, THIS 15 YEAR ROLLING THING THAT THEY'RE DOING.
SO BASICALLY THEY'RE SAYING AS OF THE JUNE 30, 22 REPORT, THE NEW LIABILITY BASED OFF OF NEW FACTORS THAT HAVE COME IN, NEW EMPLOYEES, UM, NEW, UM, CHANGES IN, UM, UM, THEY LOOK AT ALL SORTS.
THEY LOOK AT MORTALITY RATES, THEY LOOK AT LIKE ALL KINDS OF THINGS.
SO THEY'RE ESTIMATING WHAT THE LIABILITY SHOULD BE.
AND SO THEN THEY'RE SAYING, OKAY, THAT NEW PORTION OF THE LIABILITY, NOT THE ENTIRE LIABILITY, BUT THAT NEW SLICE OF THE LIABILITY AMOUNT IS NOW GOING TO BE AMORTIZED OVER 15 YEARS, AND THEN THE NEXT YEAR THEY'RE GONNA LOOK AT THE NEXT SLICE AND THEN THAT ONE'S GONNA BE AMORTIZED OVER THE NEXT YEAR.
SO IT'S KIND OF LIKE THIS ROLLING THING THAT THEY'RE DOING.
WE JUST WANNA GET TO A FULLY FUNDED STATUS
UM, ONE OF THE THINGS THAT, UM, THAT THEY LOOK AT IS, UM, BASED OFF OF THE RATE THAT, UM, THAT THEY USE FOR THE ASSUMPTIONS OF THE EARNINGS AND, UM, THEY DO THESE CALCULATIONS EVEN LATER THAN THE ACTUARIAL REPORTS THAT THEY GIVE OUT.
SO THERE'S LIKE THE SPECIAL REPORT THAT THEY DO FOR THE ACCOUNTING REQUIREMENTS WE'RE REQUIRED TO REPORT ON.
SO, UM, THE INVESTMENT EARNINGS ASSUMPTION WAS 7.3%.
AND SO WE WERE ESTIMATED TO HAVE, UM, A, A FUNDED STATUS AT 76%.
AND THIS IS USING DIFFERENT ASSUMPTIONS ON HOW THEY CALCULATE THE
[00:40:01]
ASSETS.THEY DON'T USE IT THE SAME WAY AS THE OTHER.
AND THEY'RE SAYING, OKAY, WELL WHAT IF THE EARNINGS RATE WAS 8.3, THEN WE WOULD'VE BEEN AT 86%.
WHAT IF OUR, UM, EARNINGS RATE WAS ONLY 6.3, THEN WE WOULD'VE BEEN AT 67%.
SO IT'S TO GIVE YOU AN IDEA OF LIKE 1% CAN MEAN A LOT.
IS THAT MY LAST SLIDE? THAT'S MY LAST SLIDE.
ANY QUESTIONS? YEAH, ANY OTHER QUESTIONS? COREY? LYNN OUT THERE? ANY QUESTIONS? LYNN
WONDER IF SHE'S FROZEN OR SHE'S STILL THERE.
ALL RIGHT, WELL I THINK WE'LL, WE'LL MOVE ON.
HOPEFULLY LYNN WILL FIGURE OUT THAT WE'VE MOVED ON FROM THIS ITEM.
THANK YOU VERY MUCH FOR THAT PRESENTATION, SHARON.
THANKS FOR STAYING WITH OH YEAH, I'M A NUMBERS GUY.
I ENJOY THIS STUFF ACTUALLY, SO, OKAY, GREAT.
MOVING INTO ITEM SIX ON OUR AGENDA, WHICH IS A DISCUSSION POSSIBLE ACTION REGARDING THE APPROVAL OF OFFICER JASON YOUNG'S MEMBERSHIP INTO THE SEDONA POLICE RETIREMENT PUBLIC SAFETY RETIREMENT SYSTEM AS OF JULY 23RD, 2023.
WE HAVE THE PACKET SHOWS, UH, ALL THE PRE-EMPLOYMENT, MEDICAL SCREENING INFORMATION THAT WE, UH, NOW GET INTO THE SYSTEM.
UH, ANY OTHER COMMENTS, BRENDA, ON THE, THE PACKET ON THE, YOU DON'T HAVE A A STAFF PRESENTATION.
YOU'VE GOT EVERYTHING I'VE GOT? YEP.
WE'VE GOT EVERYTHING THAT'S IN HERE.
ANY QUESTIONS ON THE MATERIAL THAT'S IN HERE? NO, NO.
I, I WAS, UH, WONDERING, UM, IN THE YES ANSWERS, UH, REGARDING THE MUSCULAR SKELETAL SYSTEM, UH, JASON PUT, UM, HE MENTIONED BACK TRAUMA AND, UH, AND THEN, UH, DELINEATED, YOU KNOW, WHAT THAT WAS ABOUT, UH, LOW BACK THE BEGINNING IS INTO SPECIFICS FOR, UM, MEDICAL ISSUES.
DO WE NEED MOVE INTO EXECUTIVE SESSION BECAUSE THIS IS NOT MOVING INTO HIPAA STUFF BEFORE WE START GOING AND DIVULGING ALL OF HIS MEDICAL HISTORY
UM, I WOULD MOVE THAT WE MOVE INTO EXECUTIVE SESSIONS SO THAT WAY WE CAN SEPARATE THAT PART UNLESS THERE'S A, A GENERIC LEVEL QUESTION ABOUT THE PROCESS THAT YOU WANT TO ASK.
THAT DOESN'T GET INTO THE DETAILS.
OR SHOULD WE? UM, IT, I COULD MAKE IT GENERIC.
IF YOU HAVE MORE OF A PROCESS QUESTION THAN A DETAILS QUESTION.
SO GENERIC, UH, GENERICALLY SPEAKING, UH, THERE'S ONE ITEM, UH, MENTIONED, UH, BY OUR APPLICANT, UH, JASON YOUNG THAT ISN'T MENTIONED IN THE DOCTOR'S, UH, PAGE OF WHAT HE SIGNED OFF ON.
THERE'S UH, AND I JUST WONDERED ABOUT THAT.
SHOULD IT BE IN THE DOCTOR'S PAGE? WHICH ONE OF THE DOCTOR'S PAGE YOU'RE TALKING ABOUT? I WANNA MAKE SURE I'M CALLING WHAT YOU'RE SAYING.
SO WE DO HAVE THE PREEXISTING CONDITIONS REPORT, WHICH IS SIGNED BY THE DOCTOR.
THE PAGE IN THAT THERE ARE TRUE CONDITIONS MENTIONED, BUT NOT THE THIRD THAT HE HAD, BUT IT IS MENTIONED.
THIS IS PAGE IN HIS SELF, IN HIS SELF.
UM, IT'S THE SAME FORM THOUGH.
PAGE FOUR OF FOUR AND PAGE THREE OF FOUR.
THAT'S HIS SELF-DISCLOSE DISCLOSURE.
AND THEN WE HAVE THE PHYSICIAN.
I WAS LOOKING AT THE ONE SHE WAS GOING OFF OF HERE.
I JUST WANNA MAKE SURE I'M FOLLOW.
NUMBER THREE IS MISSING ON THE PREEXISTING CONDITIONS REPORT.
AND MY QUESTION WOULD BE, YOU KNOW, SHOULD IT BE THERE OR IS THAT NOT IMPORTANT? OR ANOTHER WAY TO PHRASE THAT QUESTION I THINK IS THE DOCTOR HAVE ALL OF THIS DISCLOSURE, UH, WHEN HE HAS THE EVALUATION DONE AND YOU KNOW, PERHAPS A NOTE BACK TO THE DOCTOR THAT FOR ANYTHING THAT'S SELF-DISCLOSED, WHETHER HE SHOULD
[00:45:01]
ADDRESS IT IN HIS, UH, REPORT AS WELL.ARE YOU TALKING FOR FUTURE MM-HMM.
I DO BELIEVE IT'S SOMETHING WHEN IT'S PREDISPOSED BY THE PERSON RIGHT.
THAT IT'S, IT IS ADDRESSED BY THE DOCTOR IN THE VISIT.
BUT I GET WHAT YOU'RE SAYING THAT IT'S NOT ADDRESSED ON AND IF THE DOCTOR IS WHAT THE DOCTOR'S MARKING AS RIGHT.
HOWEVER, I WOULD THINK THAT SINCE WE DO HAVE THE PRE DISCLOSURE FORM FROM, UM, JASON YOUNG SAYING THAT THAT IS IN SPECIFICITY WHAT HE HAS THEN, AND IT MIGHT BE THAT IT'S STILL PREEXISTING AND IT'S BEEN DETERMINED.
IT'S JUST NOT SIGNED OFF BY THE DOCTOR.
THE DOCTOR SIGNED THE FORM, BUT IT DIDN'T, HE DIDN'T INDICATE IT IN HIS CONSULTED ITEMS, BUT HE, THE DOCTOR STILL SIGNED THE FORM WHERE OFFICER YOUNG HAD PUT THAT ITEM.
SO MAYBE JUST A, A NOTE TO THE DOCTOR THAT WE NOTICED THE DISCREPANCIES IN THE FUTURE TO COVER DISCREPANCIES.
IF THERE'S AN INDICATION AND HE MIGHT SAY IT'S NO LONGER MEDICALLY RELEVANT AT ALL AND HE CAN MAKE THAT NOTE, THEN YEAH, THAT WOULD BE A FINE THING TOO.
BUT AT LEAST IT'S SPOKEN TO ONE WAY OR THE OTHER.
I THINK THAT'S A GOOD IDEA TOO.
IT IS DISCLOSED WITH SOME SO VISION LEVEL OF DETAIL THAT WE KNOW WHAT IT WAS.
AND I WILL NOTE THAT THIS, THE DOCTOR DID SIGN THAT OUR NEW ACKNOWLEDGEMENT FORM.
SO I GUESS IF THERE WERE TO BE ANY QUESTION IN THE FUTURE, THE DOCTOR WAS AWARE THAT HE COULD BE QUESTIONED ABOUT THE INFORMATION.
SO BRENDA, IS THAT A A, A QUESTION OF FEEDBACK BACK TO THE DOCTOR THAT WE NOTICED? ONE THING THAT WAS DISCLOSED BUT NOT COVERED BY HIM IS THAT YOU CAN YOU WHO WOULD CONTACT THE DOCTOR JUST WITH THAT OBSERVATION AND I WILL FIND OUT AND IF IT'S SOMETHING I CAN DO, I WILL DO SO.
AND IF IT'S SOMETHING THAT SOMEONE ELSE NEEDS TO DO, THEN WE WILL, UH, GET THAT TAKEN CARE OF.
AND YOU'RE CLEAR ABOUT THE SPECIFIC ITEM? YES, YES.
THERE WERE OTHERS THAT WERE NOTED THAT NEEDED WHAT, THAT THE DOCTOR EXPLAINED OR MENTIONED AND THEN THERE WERE A COUPLE THAT DIDN'T REALLY, I DON'T THINK NEEDED EXPLANATION.
ANY OTHER QUESTIONS ABOUT THE, UH, PACKET INFORMATION? YEAH.
THEN I'D LIKE TO, UH, ENTERTAIN A MOTION ON THIS ITEM.
I MOVE TO APPROVE THE TIER THREE MEMBERSHIP OF OFFICER JASON YOUNG INTO SEDONA PD P S P R S WITH THE PREEXISTING CONDITIONS INCLUDED IN HIS SELF, UM, DISCLOSURE, EFFECTIVE JULY 23RD, 2023.
IS THERE A SECOND ON THE MOTION? I'LL SECOND THAT MOTION.
ANY OTHER, UH, COMMENTS ON MOTION? NO HEARING NONE THEN.
UH, ALL IN FAVOR OF THE MOTION, SAY AYE.
GOOD CATCH ON THE, UH, CLOSED SESSION DISCUSSION.
LET'S MOVE ON TO THE ITEM SEVEN OF OUR AGENDA, WHICH IS DISCUSSION, POSSIBLE ACTION REGARDING REGULARLY SCHEDULED AND UH, CALENDARED MEETINGS OF THIS BOARD.
AND THIS IS, UH, I ASKED TO PUT THIS ON THE, ON THIS AGENDA BECAUSE IT, IN MY TIME OF SERVING ON THIS BOARD, WE KNOW OUR RULES SAY THAT WE MEET THE FIRST THURSDAY OF EVERY MONTH AT 10:00 AM BUT WE DON'T EVER, CUZ WE JUST DON'T HAVE THAT MUCH BUSINESS TO DO.
AND AS SUCH IT'S ALWAYS BEEN A, OH IT LOOKS LIKE WE NEED HAVE A MEETING COMING UP AND THEN THERE'S A SCRAMBLE FOR THE CALENDAR.
AND SO I'M WONDERING IF THERE'S A DIFFERENT PROCESS THAT WE WANT TO USE, A DIFFERENT SET FREQUENCY THAT WE WANT TO USE THAT SORT OF MAKES MORE SENSE BASED ON THE ACTION SO WE CAN ALL CALENDAR OUT AND, AND KIND OF MINIMIZE UH, THE SCRAMBLE THAT WE DO FOR SCHEDULING MEETINGS.
AND BRENDA, I THINK ATTEMPT TO ATTEMPT TO ATTEMPT TO, YES.
BRENDA, I THINK YOU'VE GONE THROUGH AND LOOKED AT, YOU KNOW, THE REQUIREMENTS NOW, THE ACTIONS THAT WE'VE HAD TO TAKE AND MM-HMM.
[00:50:01]
IDEAS.UM, AND CAUSE WE OFTENTIMES HAVE UH, ACTION THAT WE NEED TO TAKE IN A 90 DAY TIMEFRAME.
AND SO QUARTERLY TO ME SOUNDED LIKE A LITTLE BIT OF A RISK AND WE CAN SCHEDULE BIMONTHLY, WE CAN STILL CANCEL MEETINGS AS WE NEED TO, BUT IT MIGHT BE USEFUL TO ACTUALLY GO AHEAD AND, AND SCHEDULE AND HAVE OUR CALENDAR IN.
WOULD YOU WANT THOSE LIKE PRE-SCHEDULED WHERE UM, THERE'S A LIKE A PROPOSED LIKE AGENDA BUT THEN WE JUST DO A CANCELLATION NOTICE OR JUST INTERNALLY EVERYBODY KNOWS IT'S GOING TO BE THESE DAYS AND I COULD JUST SEND AN EMAIL THAT THERE WILL NOT BE A MEETING THIS TIME.
THAT'S RATHER THAN I AGREE WITH THAT VERSION BECAUSE DOING THE, I THINK THAT'S MORE OF THE PLACEHOLDER THAT GETS US ALL SET ON THE SAME PAGE.
RIGHT? AND THEN THAT WAY YOU DON'T HAVE TO DO ALL THE PUBLIC NOTIFICATION, EVERYTHING ELSE JUST TO SEND OUT ANOTHER PUBLIC NOTIFICATION.
HEY, TURNS OUT WE DON'T ACTUALLY HAVE ANYTHING AND IF WE'RE REALLY THAT LOW OF BUSINESS THAT'S GONNA START LOOKING REALLY BAD.
WELL WE KEEP CANCELING MEETINGS BECAUSE THEN IT'S GONNA KEEP GOING OUT.
HEY, WE CANCELED THE MEETING SIX OUTTA SEVEN MONTHS.
I COULD BE BETTER AS A PLACEHOLDER INTERNALLY FOR US MM-HMM.
AND THEN, YOU KNOW, IF IT'S BIMONTHLY AND IT TURNS INTO SOMETHING WE NEED TO ADDRESS MORE FREQUENTLY.
LIKE WE CAN HAVE MEETINGS AS NEEDED BEFORE WHERE WE CAN FILL 'EM IN AS NEEDED.
I COULD BE BETTER SUITED AS AN INTERNAL.
JUST A PLACEHOLDER THEN IF WE HAVE ENOUGH BUSINESS, YOU ALREADY KNOW WHERE YOU HAVE A PLACEHOLDER AT.
AND I CAN LIKE YOU PRE-BOOK CONFERENCE ROOMS AND MM-HMM.
THAN THE POSTINGS AND THEN THE REPOSTING AND THE CANCELING CUZ IT'S NOT NEEDED OR, UM, WHICH, YOU KNOW, IF, IF THAT'S WHAT YOU GUYS WANT TO DO, I CAN CERTAINLY DO IT.
UM, BUT IT'S, IT'S MORE OF WHAT'S GOING TO WORK AS FAR AS FOR BOARD MEMBERS.
LYNN, DO YOU HAVE THOUGHTS, COMMENTS SO FAR ON THE DISCUSSION? YEAH, I THINK, UM, I WOULD SUGGEST ONE OF TWO THINGS.
EITHER DOING WHAT YOU JUST DISCUSSED OR THE OTHER THING THAT HAS WORKED WELL FOR US ON THE FIRE P S P R S CUZ IT'S THE SAME THING.
IT'S AD HOC, IT'S JUST, YOU DON'T KNOW YOU COULD GO FOR MONTHS AND THEN ALL OF A SUDDEN YOU HAVE TWO OR THREE MEETINGS CLOSER TOGETHER MM-HMM.
AND SO WHAT THEY DO IS A DOODLE POLL AND BEFORE TAKING A STAB AT A DATE, JUST DO A DOODLE POLL AND SEE IF YOU GET A QUORUM OF PEOPLE.
AND ACTUALLY THAT'S WORKED PRETTY SLICK TOO.
YOU KNOW, EVERYBODY RESPONDS TIMELY.
SO I THINK YOU COULD GO ONE WAY OR THE OTHER IF WE'RE I APPRECIATE THAT THE DOODLE POLL THING, BUT YOU KNOW, I KNOW THAT MY CALENDAR GETS CRAZY TOO AND YOU KNOW, SOMETIMES IF WE'RE NOT DOING THE DOODLE POLL UNTIL RIGHT BEFORE A MEETING THERE ISN'T MUCH AVAILABILITY LEFT AND IT, IT KIND OF MAKES, UH, DIFFICULT.
BUT, YOU KNOW, I'M ALSO THINKING THAT WE, WE TALKED ABOUT PERHAPS COMING OUT EVERY OTHER MONTH AND SCHEDULE CALENDAR, GOD I WAS GONNA USE THE WORD CALENDARIZING A MEETING.
UH, WE COULD DO, WE COULD ACTUALLY DO IT EVERY MONTH TOO AND NOT CHANGE OUR, I DON'T THINK WE HAVE TO CHANGE OUR RULES REGARDLESS OF THE CHANGE THAT WE'RE MAKING RIGHT.
BECAUSE IT ISN'T WORDED AS NEEDED RIGHT.
SO WE, WE, WE COULD JUST GO AHEAD AND DO THIS PROCESS ON A MONTHLY BASIS, BUT, YOU KNOW, I SUSPECT THAT WE'RE DEFINITELY GONNA BE CANCELED A LOT OF THOSE MEETINGS.
AND YOU KNOW, MAYBE EVERY OTHER MONTH GIVES OUR CAL CALENDARS A LITTLE BIT MORE FLEXIBILITY.
ANY THOUGHTS FROM YOU GUYS ABOUT I, I LIKE THE IDEA.
AND YOU KNOW, WE DO THAT WITH UM, P AND Z FOR INSTANCE, PLANNING AND ZONING.
AS YOU KNOW, PETE, WE HAVE A MEETING ON OUR CALENDAR AND A LOT OF THEM GET CANCELED.
SO, SO, BUT WE'RE READY TO GO.
SO LYNN, ARE YOU SUGGESTING THAT WE MAYBE JUST CALENDAR EVERY MONTH OR EVERY OTHER MONTH? I, I DIDN'T QUITE UNDERSTAND WHICH OF THE IDEAS YOU THOUGHT WERE, WERE BETTER.
I THINK WHATEVER YOU THINK IS APPROPRIATE FROM THE EXPERIENCE OF THIS.
BUT I SEE YOUR POINT ABOUT, UH, HAVING THE TIME HELD.
SO I THINK IT DEPENDS ON THOSE OF YOU WHO HAVE BEEN ON THIS LONGER.
IF EVERY OTHER MONTH WE'LL SUFFICE AND OF COURSE WE COULD ALWAYS, UH, REACH EACH OTHER IF NOT NEEDED.
OR IF YOU THINK THERE'S ENOUGH MEETINGS
[00:55:01]
TO JUSTIFY EVERY MONTH HOLD CASEY.I AGREE WITH YOUR ORIGINAL FOR THE BIMONTHLY EVERY OTHER MONTH FOR PLACEHOLDERS.
I THINK THAT MAKES PERFECT SENSE.
FREEING UP A CALENDAR SPACE BUT UH, KNOWING THAT WE WOULD MIGHT GET A DOODLE POLL AND A REQUEST.
WE COULD NEED TO RUSH THROUGH AND GET SOMETHING QUICKER.
BUT WE ARE ALREADY ON THAT STATUS RIGHT NOW PRETTY MUCH FOR HOW WE'RE HANDLING IT.
CAUSE WE'RE HANDLING IT AS THINGS ARISE.
SO AS LONG AS WE KEEP IT AS JUST A PLACEHOLDER SO WE'RE NOT MAKING EXTRA WORK FOR BRENDA.
THAT'S JUST NOT NECESSARY THEN I SEE NO PROBLEM WITH BIMONTHLY PLACEHOLDERS AND IT'LL MAKE IT EASIER TOO, ESPECIALLY WITH ME ON MY SIDE BECAUSE OF THE SCHEDULE, BECAUSE I'M WORKING SHIFT WORK.
I'M NOT ALWAYS AVAILABLE FOR EVERYTHING.
SO IT'D MAKE IT EASIER FOR ME TO GET IN CONTACT WITH BRENDA TO HELP MAKE ADJUSTMENTS QUICKER SO IT'S LESS OF AN IMPACT ON THE BOARD.
AND I PREFER THAT THAT METHOD TOO.
AND HAVING IT BE INTERNAL, INTERNALLY SCHEDULED EVERY OTHER MONTH.
WHAT I'M HEARING IS I WOULD TAKE CARE OF MOST, UH, NEED FOR MEETINGS THAT COULD COME UP YEP.
WE'D HAVE A HIGHER LEVEL OF CERTAINTY THAT THE MEETING MIGHT HAPPEN IF IT WAS ON OUR CALENDARS EVERY MONTH, I MIGHT START TO THINK, OH, THIS NOT YOU'RE JUST GONNA GAZE, GAZE OVER.
YOU DON'T WANNA DESENSITIZE TO IT EITHER.
YOU DON'T WANNA DESENSITIZE TO IT EITHER.
AND I ALSO LIKE THE IDEA OF IT BEING INTERNAL, NOT ONLY TO SAVE STAFF TIME, BUT ALSO I GET THOSE NOTICES THAT, UH, PLANNING AND ZONING IS CANCELED MANY TIMES AND I THINK WOW, WHAT'S GOING ON THERE?
SO I PREFER US TO, UH, LOOK VERY GOOD TO THE PUBLIC.
AND IT'S JUST A PERCEPTION THING.
IT'S NOT THAT WE'RE NOT DOING IT, IT'S JUST AVOIDING THAT PERCEPTION.
THAT THEY'RE, THAT THERE'S AN ISSUE, THERE'S NOTHING BEING DONE.
PEOPLE DON'T REALIZE THERE ISN'T ANYTHING TO BE DONE.
THEY JUST SEE THAT THERE'S NOTHING BEING DONE.
MY, MY THOUGHTS WHEN I SEE IS, OH, SOMEBODY COULDN'T SHOW UP THAT, THAT'S MY THOUGHT.
SO I, I WOULD, SO IF WE'RE NOT GONNA TAKE A OFFICIAL HEY, WHERE IF THE DIRECTION IS HEADED TOWARDS NOT DOING PUBLIC NOTICING AND, AND HAVING YOU DO THAT WORK, BRENDA MM-HMM.
I DON'T KNOW THAT WE NEED A MOTION, DO WE? THIS IS REALLY JUST KIND OF DIRECTION TO YOU NOW TO PUT TOGETHER A CALENDAR ACTION.
BECAUSE THERE'S
THERE'S NO OFFICIAL ACTION BECAUSE IT'S AN INTERNAL SCHEDULING.
UM, NOW ALONG THOSE LINES, DO YOU, WHEN DO YOU WANT ME TO START THIS? AS OF JULY.
BECAUSE THAT'S THE FIRST OF THE FISCAL YEAR AND SO LIKE JULY AND THEN SKIP AUGUST, SEPTEMBER, SKIP OCTOBER, NOVEMBER.
START WITH WHEN DO YOU ME TO START THE, EVERY OTHER MONTH.
I THINK THAT I WOULD SAY BRENDA'S THE ODD MONTH OF THE EVEN MONTHS.
SEE WHAT YOU COME AND YOU JUST MAKE A REC YOU PICK OKAY.
TO KNOW WHAT YOU SEE COMING AND WHAT THE CALENDAR LOOKS LIKE.
I I I DON'T THINK IT MAKES THEM A DIFFERENCE TO ME ABOUT WHETHER WE DO EVEN OR ODD MONTHS.
LYNN, ANY THOUGHTS FROM YOUR SIDE? MAKES NO DIFFERENCE TO ME EITHER.
AND THEN THURSDAYS 10:00 AM YEP.
ALRIGHT THEN I WILL TAKE YOUR DIRECTION AND, UM, WE'LL GET THAT, UM, WORKING ON THAT AND I WILL SEND OUT AN EMAIL TO EVERYBODY WITH THE SCHEDULE THAT I'M GOING TO PUT ON CALENDARS.
UM, SO THAT YOU ALL HAVE A LIST FOR THE NEXT YEAR.
SO I HOPE AND OVERALL THIS ENDS UP BEING A REDUCTION IN WORK FOR YOU SINCE WE WON'T HAVE, YOU KNOW, HOPEFULLY AS MANY SCRAMBLES OF COUNTS MM-HMM.
THERE'S VACATIONS THAT COME UP, THERE'S LEAVE THAT HAS TO HAPPEN AND, AND THINGS.
SO WE'LL, UH, WE'LL WORK THROUGH IT, BUT THAT GIVES A, A GUIDELINE WHERE PEOPLE ARE GONNA ANTICIPATE THERE BEING A MEETING.
GOOD FINAL THOUGHTS, LYNN? SOUNDS EXCELLENT.
LET'S MOVE ON TO ITEM EIGHT, WHICH IS DISCUSSION, POSSIBLE IDEAS FOR FUTURE MEETING SLASH AGENDA ITEMS. DOES ANYONE HAVE ANYTHING IN THERE? NONE FOR ME.
LYNN, ANYTHING FROM YOUR SIDE? NONE.
SO WE REACH AGENDA ITEM NINE AND I THINK WE'LL CALL THIS MEETING TO ADJOURN AT 1106.