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From YouTube: Chattanooga City Council Agenda Meeting - 7/18/23
Description
Chattanooga City Council Agenda Meeting - 7/18/23
A
B
A
Thank
you
so
much
for
the
update
and
we
do
have
those
like
I
said
in
our
packet
yeah,
all
right,
all
right
under
ordinances.
So,
first
reading
we
have
one
item
there
any
comments
or
questions
and
please
hit
your
like.
If
there
are
any
comments
or
questions
regarding
these
items,
Public
Works,
we
have
item
on
the
transportation.
A
A
B
B
D
A
E
A
E
Sorry
I
was
confident
during
the
time,
but
I
do
have
a
question
about
this.
One
purchase
that
we
have
I
don't
hear
about
the
advertisement
and
then
the
explanation
is
saying
because
it's
reaching
an
African-American
target
market
according
to
the
news
bomb
violence
happening
in
every
District,
so
we
should
be
spreading
the
message
on
every
radio
station,
not
just
on
94.3
I,
think
it's
discriminatory,
I
think
it's
very
biased
for
us
to
just
assume
it's
just
happening
in
one
target
group.
F
F
A
G
G
So
it's
a
pleasure
to
be
back
in
front
of
you
again.
It's
been
my
honor
to
serve
as
your
representative
to
the
fire
and
police
pension
fund
for
about
five
years
now,
I
thought
on
the
very
first
page
I'd
mention
our
new
logo
was
designed
by
one
of
our
firefighters,
believe
it
or
not,
and
that
it
is.
It
is
exceptional.
So
we've
adopted
that
as
our
new
logo,
the
fire
and
I
thought
I'd
take
a
little
different
tact
and
Sprout
some
numbers
today
and
we'll
we'll
have
numbers
later
on.
G
G
G
A
G
G
Katrina
Abbott,
whom
you've
met
before
is
our
fund
administrator,
sir,
for
many
years
as
the
Deputy
Administrator,
our
Deputy
Christina
Culpepper
and
Doug
Kelly
who's
a
long
time
servant
of
the
city
of
Chattanooga,
in
addition
to
our
staff,
the
fund
is,
is
actually
operated
and
supervised
by
an
eight-member
Board
of
Trustees,
six
of
whom
are
elected
sworn
officers,
three
from
the
police
department,
three
from
the
fire
department.
There's
one
city
council
appointee
which
is
myself
and
then
Julia
Birch.
Who
is
the
mayor's
appointee?
G
So
I
thought
you've
probably
not
had
chance
to
see
all
our
trustees
I'd
just
like
to
mention
them:
firefighters,
Brit,
Bradshaw,
Scott,
Sparks
and
Matt
rorex
and
police
officers,
Philip
McLean,
Joe,
Shaw
and
Michael
Wenger
in
addition
to
myself
and
Julia.
So
it
has
been
a
distinct
honor
for
me
to
serve
alongside
these
dedicated
officers
from
fire
and
police.
It's
going
to
be
difficult
to
convey
to
you
how
how
seriously
they
take
their
responsibilities
and
how
much
time
they
put
into
the
supervision
of
the
pension
fund.
G
So
if
you
do
get
a
chance
and
run
into
one
of
them,
thank
them
on
behalf
of
the
city
and
and
on
your
own
behalf,
because
they
do
a
tremendous
job
they
put
in
a
huge
amount
of
time
and
they
take
their
responsibility
very
seriously.
So
I.
Thank
you
to
all
those
elected
members.
The
role
of
the
Board
of
Trustees
is
to
supervise
the
pension
fund
over
oversight
of
the
pension
fund
Investments,
we
have
a
third
party
investment
consultant
with
whom
we
work,
as
well
as
an
Actuarial
firm.
G
But
it's
it's
the
role
at
the
Board
of
Trustees
to
oversee
the
operation.
The
trustees
are
each
individually
fiduciaries,
which
means
we
have
a
legal
obligation
to
each
member
of
the
pension
fund.
So
six
of
the
eight
members
of
the
Board
of
Trustees
are
also
participants
in
the
fund,
which
is
just
a
little
bit
unusual.
G
Not
totally
unique,
but
in
terms
of
first
responder
Pension
funds
for
six
of
the
eight
trustees
to
be
sworn
officers
is
a
bit
unusual
and
it
gives
them
an
interesting
and
unique
perspective,
so
they're
operating
on
their
own
behalf
as
well
as
behalf
of
all
the
other
participants
in
the
fund.
So
again,
my
thanks
to
all
those
sworn
officers.
G
This
is
probably
not
going
to
come
as
any
big
shock,
but
defined
benefit.
Traditional
pension
plans
are
under
pressure,
partly
due
to
some
demographic
Trends,
and
this
one
is
an
illustration
of.
What's
happened
to
life
expectancy
going
back
to
1960,
an
individual
born
in
1960
would
have
a
life
expectancy
of
a
little
less
than
70
years.
G
Somebody
born
today
would
have
a
life
expectancy
of
about
77
years,
so
there's
about
a
10
percent
increase
in
life
expectancy,
which
means
a
significant
increase
in
the
number
of
years
after
retirement
that
Define
pension
plans
have
to
provide
for
which
is
why,
in
most
cases
in
the
private
sector
defined
benefit
plans,
just
don't
exist,
any
longer,
they've
moved
to
Define
contribution
plans,
but
for
a
number
of
reasons
that
doesn't
really
work
for
First
Responders.
They
have
shorter
life
expectancies,
they
have
more
physically
taxing
jobs.
G
They
tend
to
retire
earlier
and
have
longer
on
the
on
the
plan.
They
just
don't
have
enough
time,
typically
to
save
enough
in
a
defined
contribution
plan
like
a
403
b
401K.
So
it's
very
important.
We
continue
to
support
the
fine
benefit
plans
for
our
First
Responders
in
particular,
but
you
can
see
some
of
the
challenges
we
face
and,
as
a
result,
you
can
see
with
the
blue
line
here.
G
In
particular.
The
plan
here
in
Chattanooga
has
the
same
demographic
challenges.
I
won't
get
into
too
much
of
this,
but
the
the
the
purple
bars
are
retirees
currently
in
the
plan.
The
blue
bars
are
active
participants
right
now,
still
working
and
the
red
line
is
the
ratio.
So
if
you
go
back
to
2014,
there
were
91
retirees
for
every
100
active
officers.
G
Today
there
are
101
retirees
for
every
100
active
participants,
so
it
doesn't
take
too
much
too
much
math
to
understand
the
challenges
inherent
in
the
plan,
notwithstanding
the
investment
performance
of
the
plan,
so
just
to
give
you
a
little
taste
of
of
some
of
the
challenges
of
defined
benefits.
This
is
a
chart
going
back
to
2001
of
the
market
value
of
the
Assets
in
our
pension
plan,
the
Chattanooga
fire
and
police
pension
fund,
and,
as
you
can
see,
it's
a
it's
a
rocky
ride
and
we
had
a
substantial
event
back
in
2008.
G
Many
of
us
remember
that
very
unpleasant
time
when
we
had
the
great
financial
crisis,
but
in
addition
to
other
areas
of
our
life,
the
pension
fund
experienced
about
a
33
percent
loss
in
one
single
year.
We
were
at
one
time,
100
fund
going
back
to
the
90s,
so
our
funding
status
was
cut
drastically
and
then
that
period
beginning
in
2008
for
the
next
decade
the
results
were
lackluster.
G
Look
much
more
favorable,
so
we're
clearly
on
a
trajectory
to
recover
from
that
really
devastating
period
of
time,
devastating
loss-
those
who
were
here
at
the
time
in
2014
remember:
there
was
a
task
force
to
address
the
funding
crisis
in
the
pension
fund
and
some
some
changes
were
made
to
benefits
that
we
hope
to
address
going
forward
and
recover
those
as
we
continue
to
improve
our
status
at
any
time.
By
the
way.
G
If
there
are
any
questions
that
are
on
your
mind,
please
feel
free
to
interrupt
me
before
I
wander
down
the
road
too
far,
so
the
again
I'll
get
into
this
a
little
bit
later,
but
the
city
council
has
been
extremely
faithful
in
funding
the
pension
fund.
We
provide
our
estimate
of
the
required
contribution
each
year
and,
frankly,
it's
a
heavy
list
for
the
city
of
Chattanooga,
given
the
investment
experience
back
to
2008..
G
So,
as
you
can
see,
this
is
a
very
rocky
road.
What
we
do
in
pension
accounting
is
we
try
to
smooth
that
out.
We
average
that
over
a
running
rolling
five-year
period,
so
the
city's
contribution
each
year,
beginning
again
this
year
on
July
1st,
is
based
on
that
smooth
average.
That
blue
line
is
a
little
bit
less
volatile.
We
wouldn't
want
to
come
to
the
city
and
say
we
need
50
this
year,
70
next
year,
20
the
year
after
so
those
in
pension
accounting
are
based
on
a
smoothed
average.
G
So
you
can
see
we
lag.
We
lagged
behind
our
Actuarial
average
for
quite
some
time
after
the
08
collapse
of
the
market
and
that
we
have
substantially
recovered
and
have
spent
the
last
three
years
really
above
that
it
was
only
the
22
Market
decline
that
causes
to
fall
below,
but
again
we're
on
a
trajectory
to
to
exceed
that
again.
So
great
progress
from
an
investment
standpoint,
I
will
take
just
a
minute
to
kind
of
highlight
the
actual
numbers.
G
The
first
quarter
that
first
column
there
you
see
q1
2023
for
the
first
quarter
of
this
year,
which
is
the
last
period
of
time.
We
have
a
full
accounting
for
the
fund,
had
a
4.5
percent
rate
of
return
for
the
quarter
and
that
put
us
in
the
39th
percentile
Nationwide,
which
means
we
were
in
the
top
39
percent
of
a
hundred
of
all
comparable
Pension
funds
going
back
to
2022.
C
G
That's
good,
it's
the
top
yeah,
it's
probably
the
opposite
of
the
tea
caps
right,
okay,
so
the
lower
the
number,
the
better
okay.
Does
that
make
sense
yeah.
In
fact,
that
probably
is
the
opposite
of
the
way
they
measure
the
t-cap,
so
we
say
the
99th
percentile.
That
would
be
the
top
one
percent
of
all
Pension
funds.
D
B
A
G
You
have
to
kind
of
pick
a
number
that
you
think
is
a
reasonable
estimate
of
what
you're
going
to
earn
over
time
and
that's
the
rate
you
use
to
Discount
future
obligations
right.
So
we
look
at
say,
30
years
ahead
to
fire
and
police
pension
retirements.
We
discount
those
obligations
back
at
that
assuming
rate
of
return
and
the
higher
the
number
the
lower
the
obligation
today.
So
we
at
one
time
in
1992,
had
a
nine
percent
assumed
rate
of
return.
G
In
other
words,
it
was
assumed
that
a
balanced
portfolio
of
stocks
and
bonds
was
going
to
earn
nine
percent
year
in
and
year
out
well
for
part
of
the
1990s.
That
was
true
but
historically
over
time.
It's
certainly
not
so
we
have
systematically
reduced
that
assumed
rate
of
return
and
every
time
I've
come
in
front
of
you,
I
think
we've
notched
it
down
one
more
quarter.
We
are
stable
now
at
6.75,
so
what
that
does
mean?
Is
it
increases
our
immediate
obligation?
G
It's
a
bigger
number
that
we're
dealing
with
in
terms
of
our
present
value
of
future
obligations,
which
means
the
city's
contribution
to
the
pension
plan
is
bigger,
which
is
why
we've
had
to
do
this
very
incrementally.
We
don't
think
we're
going
to
need
to
move
from
that.
6.75
puts
us
right
in
the
middle
of
the
national
average
for
assumed
rates
of
return.
G
I
should
mention
as
well
that
I
think
Council
knew
this
very
well,
but
at
the
time
that
they
that
they
passed
the
salary
increase
last
year,
the
25
salary
increase
that
also
impacted
the
solvency,
the
pension
fund.
It
increased
our
current
obligation
because
the
the
future
obligations
essentially
went
up
by
25
percent
based
on
those
last
five
years
of
pay,
so
that
also
increased
the
obligation
to
the
pension
fund.
Today
it
had
about
a
three
percentage:
Point
impact
on
our
funded
status.
G
So,
as
we
sit
here
today,
our
funded
status
is
about
51
and
a
half
percent,
which
means
we
could
if
we
had
to
stop
and
liquidate
the
plan
and
pay
out
today,
we
could
pay
about
51
of
the
obligations
at
one
time
we
were
around
42
percent
and
I
want
to
emphasize
that
this
is
not
a
problem.
You
can
correct
overnight,
it's
a
very
long
Runway
and
it
begins
with
a
number
of
incremental
changes
over
time
that
compound
and
we're
five
years
into
that
process
and
I
think
we're
we're
right
on
track.
G
G
That
I
want
to
show
you
in
a
minute
experience
losses
we
go
through
every
year
and
we
do
an
experienced
study
based
on
actual
performance
and
things
like
the
expenses
and
the
plan,
disability
claims
and
so
on
and
so
forth,
and
we
go
back
and
look
at
those
and
our
experience
loss
over
the
last
year
added
about
another
percent
to
our
funding
deficit.
In
other
words,
we
had
a
much
higher
rate
of
disability
claims
than
we
had
originally
projected.
G
So
these
things
all
added
to
about
a
about
a
three
four
five
percent
decrease
in
the
funded
status.
The
the
decrease
from
the
from
the
salary
increases
was
a
one-time
hit.
That's
factored
in
now,
going
forward,
right
and
and
again
I
want
to.
Thank
you
on
behalf
of
the
sworn
officers
for
that
action.
You
know,
as
you
know,
we
were
struggling
to
to
fill
a
lot
of
empty
slots
in
the
police
and
fire
department,
so
that
went
a
long
way
in
my
experience
in
dealing
with
with
these
with
these
great
people,
I
guess.
G
My
last
point
is
I'd
like
to
thank
the
city
for
so
Faithfully
funding
this
this
planned
deficit.
It's
been
obviously
a
struggle
for
us
and
I
won't
get
into
a
lot
of
the
nitty-gritty,
but
the
bottom
line
is:
if
you
look
at
line
10
there,
beginning
July
1st
of
this
year.
The
city's
contribution
of
the
pension
fund
is
nearly
50
percent
of
payroll.
G
All
right
now
that
the
national
average
is
probably
at
20-ish,
so
city
of
Chattanooga
is,
is
more
than
carrying
the
load
and
and
looking
back
through
25
years
of
Records.
I
cannot
find
a
year
in
which
city
council
did
not
fully
fund
the
required
contribution.
That
has
not
been
the
case
in
every
city
in
America
and
in
a
lot
of
cities
in
America.
G
It's
been
far
from
the
case
and
had
that
not
happened,
the
pension
fund
would
be
in
substantial
difficulty
as
we
sit
here
today,
we're
on
what
I
consider
to
be
a
pretty
good
Glide
path
to
get
us
back
to
solvency,
so
I
guess.
In
conclusion,
what
I
wanted
to
do
is
just
touch
on
a
few
of
the
the
highlights
of
the
last
five
years
since
we
changed
pension,
consulting
firms,
we
we
had
been
working
with
another
firm
for
maybe
20
years.
G
We
engaged
a
firm
called
the
hobbin
associates
out
of
Long
Island,
New,
York
and
they've
come
in
and
helped
us
re-establish
or
rewrite
our
investment
policy
statement.
We
have
made
a
substantial
shift
in
our
investment
policies.
We
had
about
a
third
of
the
fund
in
2015-16
was
invested
in
high
cost
hedge
funds
that
were
underperforming,
so
they
not
only
were
they
not
hitting
their
Market
benchmarks,
they
had
extremely
high
expenses
and
fees,
so
we
have
now
completely
wound
down
we're
no
longer
in
any
high
cost.
G
G
G
Keep
them
apprised
of
what
we're
doing
they're
pleased
with
our
progress
of
the
70
Benchmark
makes
a
difference,
because
once
we
hit
that
level,
retirees
will
begin
to
get
cost
of
living
increases
the
year
they
retire
as
it
stands
right
now,
there's
a
three-year
delay
as
a
result
of
those
compromises
in
2014
because
of
our
funding
prices
is
important
because,
right
now
the
cost
of
living
increase
is
limited
to
1.5
percent.
Once
we
hit
80
percent,
it
becomes
the
CPI
up
to
a
maximum
of
three.
D
B
Something,
after
all,
those
references
so
Chris,
you
know,
I've
had
a
very
strong
interest
in
the
fire
and
police
pension
fund
and
I
appreciate
you
taking
the
time
to
help
educate
me
with
some
of
the
numbers
and
the
progress.
So,
first
of
all,
a
big
shout
out
to
you.
Thank
you
for
what
you
do.
I,
don't
believe
you
receive
payment
for
what
you
do.
This
is
a
a
a
service
from
your
heart
and
your
in
love,
and
we
thank
you
and
I.
Think
councilman
Smith
was
the
one
who
brought
you
to
us.
B
That's
correct
and
find
my
memory
serves
and
I
want
to.
Thank
you
for
that,
because
Chris
has
been
Stellar.
Please
send
our
our
thank
you
to
Katrina,
Christina
and
Doug
as
well
and
and
all
the
sworn
officers.
It
sounds
like
to
me.
You
are
running
this
like
a
business
rather
than
running
like
a
government
which
I
think
is
awesome
because
the
fire
and
police
pension
as
I
look
across
to
some
of
my
favorite
First
Responders
back
here.
This
is
important
to
them.
B
Well,
not
this
city
and
not,
hopefully
not
ever
so
I
just
want
to
say
thank
you
thanks
for
covering
the
numbers
on
the
ARR
and
other
things
that
I
know,
I've
had
interest
in
the
past,
always
anxious
to
see
what
you're
up
to
next
and
how
you're
really
looking
at
the
numbers
and
trying
to
solidify
this
and
make
sure
that
it's
here
for
the
future
for
our
First
Responders
I
can't.
Thank
you
enough.
So
that's
really
what
I
wanted
to
say
and.
G
I
appreciate
that
and
and
basically
right
back
at
you
as
far
as
the
council
is
concerned,
because
without
your
support
of
the
plan,
we
wouldn't
be
on
this
Glide
path
to
Improvement
and
it
took,
but
frankly
I'm
some
of
us
may
have
been
around
during
the
2014
period
of
time.
It
was
not
a
pleasant
time.
It
was
difficult
and
the
fact
that
we
got
through
that
has
put
us
in
a
much
better
position
and
it
does
take
patience.
It's
not
an
immediate
fix,
but
we're
on
the
right
path
and
I.
Think
I.