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From YouTube: Dearborn Heights Study Session - 5/6/21
Description
The Dearborn Heights Study Session taking place Thursday, May 6th 2021 via Zoom.
**PLEASE NOTE: The title card states this meeting is a Budget Study Session - this is false. This Study Session on May 6th is for the Act 345 Pension System Presentation. We apologize for any confusion.**
A
A
B
B
Also,
we
have
our
actuaries
francois
petra
from
grs,
gabriel
roder,
who
does
our
actual
annual
actuarial
evaluation
report,
and
we
have
our
financial
consultant,
stephen
riga
from
the
police
that
works
for
the
police
and
fire
pension
board
and
our
legal
counsel,
thomas
miesha,
from
van
over
mcmishan
timoney.
Some
of
you
have
been
on.
The
council
are
familiar
with
that
before.
A
B
You
know
we
have
obviously
a
new
mayor,
a
new
comptroller
new
mayor's
assistant.
We
have
you
know
just
to
kind
of,
I
guess-
educate
everybody
on
a
little
bit,
what
we
do
and
how
we
do
it
and,
like
I
said,
to
try
to
clarify
and
answer
any
questions.
So
we
thought
that
everybody
was
given
in
their
mailboxes
a
copy
of
the
annual
actuarial
valuation
report
dated
july
1st
2021
and
we'll
also.
B
A
A
D
D
D
D
D
D
And
then
we
also
collect
information
about
the
financial
information.
We
collect
the
market
value
as
as
of
june
30
2020,
and
we
also
collect
the
transactions
that
happened
from
july
1
2019
through
june
30
2020,
and
that
is
your
employee
contributions,
your
employer
contributions,
investment
income
benefit
payments
and
the
expenses
that
the
system
had.
D
We
then
take
the
data
and
we
take
the
benefit
provisions.
We
mix
it
all
together
in
a
in
a
mathematical
model,
with
the
assumptions
and
and
methods
that
we
as
actuaries
use
to
calculate
liabilities
on
a
per
person
basis,
and
then
we
add
those
liabilities
all
together
to
get
the
systems
liabilities
and
from
that
we
subtract
the
assets.
That's
been
set
aside
to
determine
whether
the
city
is
overfunded
or
underfunded,
and
then
to
determine
the
contribution
for
the
system.
D
I
have
to
be
done
with
that.
We
set
up
this
report,
our
communication
to
back
to
the
retirement
system.
This
report
consists
of
five
sections
section:
a
is
a
summary
of
the
valuation
results.
Section
b
is
a
summary
of
the
data
that
we
received
from
the
system.
To
do
this
valuation
section
c
is
a
summary
of
the
methods
and
assumptions
that
we
use.
D
We
don't
use
that
information
per
se
to
report
anymore,
since
the
gas,
p,
67
and
68
reports
came
out,
but
we
include
that
information
in
this
valuation
report
because
it
provides
nice,
historical
information.
So
you
can
compare
on
an
annual
basis
and
then
section
e,
which
is
some
risk
disclosures
that
we
have
to
include
with
our
actuarial
report.
D
D
F
D
Okay
on
this
page,
we've
got
the
computed
employer
contribution
for
the
fiscal
year
beginning
july,
1
2021.,
that
is
the
information
on
the
right
side
of
the
table.
We
also
show
you
the
information,
the
numbers
that
we
calculated
last
year
for
the
fiscal
year
that
started
july,
1
2020,
when
we
calculate
the
contribution
requirement
for
a
plan
like
yours,
where
they
stole
some
active
members.
D
D
When
you
add
the
two
together,
your
total
contribution
for
the
fiscal
year
beginning
july,
1
2021
is
5.12
million
dollars.
The
amortization
payment
is
about
four
hundred
thousand
dollars
higher
than
what
it
was
last
year
and
we
will
discuss
the
re.
I
will
discuss
the
reasons
for
that
in
a
couple
minutes.
D
D
D
But
we
know
that
the
market
value
is
inherently
very
volatile
one
year
it
will
be
20,
20,
plus
percent,
and
next
year
it
will
be
a
negative,
and
so
it
will
oscillate
through
through
the
years.
What
we
try
to
do
is
we
try
to
smooth
out
gains,
above
your
assumed
rate
of
return
of
seven
percent
and
losses
below
your
assumed
rate
of
seven
percent
and
that's
what
we
do
when
you
calculate
this
funding
value
of
asset.
D
D
The
retirement
system
actually
lost
1.1
million
dollars
at
june,
30
2020
and
in
line
e3.
The
difference
of
the
two
is
13.6
million
dollars
and
that's
a
negative
amount.
That
means
that
there
is
13.6
million
dollars
in
in
losses
that
we
have
this
year,
that
we've
gotta
recognize,
but
we
do
not
recognize
all
of
that
immediately.
We
recognize
that
over
a
period
of
five
years
to
smooth
out
some
of
the
volatility,
so
this
year
we
recognize
a
loss
of
2.73
million
dollars.
D
We
take
this
year's
loss.
We
then
combine
it
with
the
prior
years
gains
and
losses
the
the
20
from
the
prior
years
and
then
in
line
f6,
we
can
see
that
there's
a
negative
amount
of
3.371
million
dollars,
that
is,
the
investment
loss
for
the
year,
because
that's
a
a
loss
and
and
3.3
million
dollars.
That's
one
of
the
reasons,
as
we
will
see
on
the
next
page,
why
your
contribution
increased
this
year.
D
D
D
D
So
we
expect,
if
everything
holds
for
the
next
three
months
up
to
june
30,
2020
20
and
the
market
value
can
stay
at
about
209
million,
thereabouts,
that
these
losses
will
eventually
convert
to
gains,
and
that
will
let
downward
pressure
on
your
contribution
requirement,
but
we'll
have
to
see
at
june
30
20
21.
What
that
actual
amount
is
what
what
what
can
be
used?
D
Okay,
if
you
turn
to
page
a
a4,
if
you
look
at
the
column
on
the
right
hand,
side
there,
we
can
see
how
volatile
the
market
has
been
over
the
last
10
years.
One
year
it
was
28
and
then
we've
got
a
couple
years
negative
as
well
at
negative.
Two
point,
two
four,
as
well
as
a
negative.
Two
point:
two
point:
nine,
your
assumed
return
is
seven
percent.
It
looks
like
on
average
we
might
be
close
to
it,
but
it's
very
volatile.
D
D
So,
based
based
on
the
unfunded
liability
at
the
start
of
the
year,
which
was
39.5
million
dollars
based
on
transactions
that
we
knew
is
going
to
occur
during
the
year
active
members
were
going
to
earn
benefits
during
the
year.
The
city
was
going
to
make
a
contribution
and
we
add
interest
because
you
had
an
unfunded
liability.
D
D
We've
got
some
comments
on
the
on
this
page.
As
I
just
said,
your
contribution
requirement
increased
from
4.68
million
dollars
to
5.12
million
dollars.
Primarily
the
reasons
were
unfavorable
investment
return.
We
had
less
retirees
pass
away
than
expected
if
people,
if
less
retirees,
pass
away
than
what
we
expected.
It
means
that
benefits
is
paid
for
a
longer
period
by
the
retirement
system
and
the
liabilities
are
carried
for
a
longer
period.
D
D
Comment:
three
based
on
the
projected
benefit
payments
from
each
and
er
each
of
the
different
groups
in
the
bonus
payment
plan
and
the
long-term
discount
rate
of
seven
percent
bonus
funds
are
expected
to
be
depleted
in
about
four
years,
that
is
on
average
in
about
four
years.
Some
groups
might
be
depleted
sooner
than
that
comment.
Four.
There
were
no
changes
in
benefits
or
early
eligibility
conditions
since
valuation.
Since
the
last
valuation,
there
were
also
no
changes
in
assumptions
and
methods.
D
Since
the
last
valuation,
as
you
can
remember,
with
the
last
valuation,
we
adopted
a
new
mortality
table
and
new
demographic
assumptions,
and
that
was
used
with
the
prior
valuation
and
then
the
last
comment
I
want
to
make
is
a
comment.
Five
in
2017
2018,
the
michigan
legislature,
adopted
public
act.
202
public
act.
202
gave
the
state
treasurer
the
ability
to
set
uniform
assumptions
to
measure
pension
liabilities
and
contribution
requirements
for
michigan
municipalities.
D
Now
this
is
only
being
used
for
reporting
requirements.
It's
not
being
used
for
funding
a
pension
plan.
We
do
not
include
the
number
with
with
this
valuation.
We
include
the
number
with
the
gas
evaluation
that
we
we
produce
later
on
in
the
year,
but
the
assumptions
that
we
use
for
this
pension
valuation
falls
within
all
that
falls
within
all
the
parameters
of
public
act.
202,
we
use
a
seven
percent
discount
rate.
D
B
B
B
F
H
G
Okay,
what
that
slide
is
showing
you
is
what
we've
made
in
dollars
and
in
percentage
return
and
the
percentage
return
is
net
of
all
expenses.
So
it's
net
of
the
managers,
it's
net
of
our
actuary
custody
legal
me.
It
nets
out
everything,
and
so
our
goal
is
to
make
seven
percent
per
year
over
a
very
long
period
of
time
and,
as
francois
has
said,
we
want
to
make
seven
percent
over
10
15
20
years.
G
G
What
our
report
here
does
is
isolates
what
the
investments
have
done,
so
the
investments
have
gone
up
by
46
million
dollars
from
june
30th
of
last
year.
Now,
as
francois
had
mentioned,
we're
up
about
35
million
and
that's
because
net
of
contributions
we
paid
our
beneficiaries
about
nine
and
a
half
million
dollars.
So
so
the
return
for
so
far
for
the
fiscal
year
is
27.
G
And
if
you
look
at
it
for
the
last
12
months-
and
I
wouldn't
even
look
at
this
because
last
march
was
the
exact
bottom
in
the
market
when
kovad
was
full-blown
so
that
that's
kind
of
that's
an
aberration
going
up
that
much.
But
if
you
look
at
the
last
three
years
we're
up
10
per
year,
the
last
five
years
were
up
11
per
year.
The
last
10
years
were
up
8
per
year
and
since
inception
over
the
last
35
years.
G
Since
I've
been
with
you
guys
and
advising
the
trustees,
we've
managed
to
make
a
little
bit
over
nine
percent
per
year
and
that's
net
of
all
expenses.
So
so
the
value
added
over
and
above
the
seven
percent
per
year
that
we're
supposed
to
make
has
created
an
extra
75
million
dollars
in
value.
So
so
that's
been
great
for
the
taxpayers.
G
G
D
I
A
I
I
B
I
Okay,
so
we'll
go
to
the
first
one,
so
I
I
wanted
to
actually
present
this
before
the
other,
but
that's
okay,
so
I
wanted
to
basically,
I
met
with
some
of
the
our
union.
Members
for
the
police
and
fire
department
came
up
with
this
presentation,
so
people
are
not
aware
of
what
the
public
act.
345
is
so
this
is
pretty
much
just
touches.
Base
touch
base
on
what
what
public
act
345
is
go
to
the
next
presentation,
please,
my
next
slide.
I
I
I
I
The
2020
actuarial
valuation
report
shows
that
the
dearborn
heist
public
act,
345,
police
and
fired
retirement
system
is
funded
at
82.7
percent.
This
is
well
above
the
michigan
public
act,
202
benchmark
as
of
right.
Now
it's
a
60
percent,
the
public
act,
345
police
and
fire
retirement
system
meets
and
exceeds
the
funding
requirements
by
all
governmental
standards.
I
An
actuarial
evaluation
is
completed
every
year
to
ensure
the
compliance
with
the
state
and
federal
regulations,
as
presented
earlier
next
slide.
So
here
talks
about
the
employee's
contribution.
All
police
officers
and
firefighters
in
the
city
of
dearborn
heights
retirement
system
contributes
a
percentage
of
their
annual
salary
to
the
public
act.
345
retirement
system,
depending
on
the
collective
bargaining
agreement
they
are
covered
under
and
right
now
we're
in
the
middle
of
doing
the
negotiations
for
one
of
them
residents
via
millage.
I
I
I
Next
slide,
please
so
this
this
table
here
talks
about
all
the
police
departments
or
cities
that
actually
have
a
public
public
act.
345.
If
you
look
at
this
here,
this
is
only
some
of
many,
and
you
can
see
a
lot
of
surrounding
communities
have
that
even
there's
some
cities
that
had
it,
but
they
took
it
off
and
they're,
actually
thinking
about
going
back
to
the
public
act,
345
and
I'll
get
to
that
in
a
little
bit
in
the
next
slide.
I
I
So,
over
the
past
10
years,
40
police
officers
have
come
to
dearborn
heights
because
of
the
benefits
provided
for
the
the
in
negotiation
of
collective
bargaining
agreement.
The
dearborn
heights
police
officers
have
taken
significant
wage
reduction
to
ensure
those
benefits
being
a
police
officer's
physically
and
mentally,
demanding
job.
I
Dearborn
heist
police
officers
want
to
ensure
their
retirement
benefits
instead
of
receiving
higher
pay.
They
rather
take
a
lower
pay
and
just
receive
their
pensions
or
retirement
benefits.
Later
this,
this
has
been
very
beneficial
to
the
our
taxpayers
here
in
dearborn
heights,
by
controlling
the
cost
and
providing
opportunity
for
long-term
financial
planning.
I
Next
slide,
please
so
for
the
firefighters
again.
Over
the
last
past
10
years,
23
firefighters
have
come
to
dearborn
heights
from
other
cities.
Municipalities
because
of
the
benefits
also
negotiated
in
the
collective
bargaining
agreement
and
dearborn
heists
have
taken
significant
again.
You
know,
firefighters,
taken
significant
wage
reductions
over
the
last
several
years
to
make
sure
again,
you
know
they
can
get
the
better
retirement
benefits
and,
as
you
know,
the
firefighters
is
a
physically
and
mentally
demanding
job,
and
also
this
has
been
very
beneficial
to
our
taxpayers.
I
In
dearborn
heights,
by
controlling
the
cost
and
providing
opportunity
for
long-term
financial
planning,
so
this
this
slide
shows
the
surrounding
communities
that
don't
have
you
can
see
the
the
benefits
here
for
or
actually
the
pay
for
police
officers
for
this
is
starting
salaries.
So
I
looked
up
a
bunch
of
departments
that
are
hiring
within
this.
I
I
mean
our
area
here
in
dearborn
heights,
as
you
can
see
our
fire,
our
police
department,
the
starting
wage
is
forty
thousand
dollars,
and
if
you
can
see
here,
the
the
nearest
city,
which
is
garden
city,
is
about
six
thousand
four
hundred.
Ninety
three
dollar
difference
from
our
from
our
police
officers.
Here
in
in
dearborn
heights,
it's
a
smaller
city,
and
you
can
see
here
livonia.
They
start
at
fifty.
I
I
I
Even
ellen
park
has
their
salary
starts
at
47,
47,
000,
redford
and
taylor,
even
though
they
do
have
public
act
for
redford
and
taylor.
I
wanted
to
show
you
that
their
starting
salary,
I
mean
look.
Look
at
the
taylor
is
almost
like:
nine
thousand
dollar
difference
and
if
you
and
and
was
it
redford,
it's
almost
ten
thousand
dollar
higher
wage
for
redford,
even
though
they
have
the
same
public
act.
345.
I
I
There's
38
members
right
now
of
the
durban
heights
police
departments.
They
have
an
associate
degree
or
equivalent
28
members
of
the
bible
heights
police
departments
have
a
bachelor's
degree
and
seven
members.
They
have
a
master's
degree
and
see
the
the
benefits
they're
they're,
equal
or
proportionate,
with
their
they're,
not
actually
equal
or
proportional
to
education
experience.
They
should
be
their
pa.
I
Their
weight
should
be
higher
next
slide,
please
so
for
the
for
the
firefighters
you
can
see
again,
you
know
these
our
firefighters,
you
know
they're
amazing,
you
know
they
do
great
work.
You
know
we
see
everything
that
they
do.
You
know
we
all
see
them
going
way
above
and
beyond,
as
our
police
officers
and
talks
about
45
members
of
the
firefighters.
You
know
they
have
an
associate
degree
or
equivalent
12
members,
they
have
bachelor's
degree
and
five
members.
They
have
a
master's
degree.
I
And
again
you
see
that
the
the
salaries
that
they
have
starting
wages-
it's
not
equivalent
to
their
education
next
one.
So
people
talk
about
the
drop
program.
You
know:
drop
stands
for
deferred
retirement,
option
program,
a
specific
contract
language
exists
in
both
the
police
and
fire
union
contracts
under
the
drop
programs.
I
These
accounts
are
sim,
are
simply
the
members
electing
to
defer
their
earned
monthly
retirement
benefits
and
leaving
those
benefits
in
the
fund.
Each
drop
account
is
the
participants.
Undisputed
retirement
benefits,
drop
accounts
are
benefits
that
have
been
earned
by
the
participants
and
they
have
not
been
taken.
Yet
it
is
managed
by
the
durban
heights,
police
and
fire
retirement
system.
Board
drop
accounts
are
not
owned
by
the
city,
while
the
drop
accounts
are
individually
allocated
to
each
drop
participants.
I
I
This
reduces
the
amount
of
money
that
is
placed
on
the
millage
annually
and
we're
going
to
see
that
here
in
the
next.
You
know
a
couple
two
three
weeks,
you
know
when
we
approve
the
budget,
you
can
see
the
last
last
year's
interest
from
the
drop
participants
of
the
pension
was
approximately
2.3
million
dollars.
I
Okay,
so
the
return
on
investment
for
all
drop
participants
is
set
by
the
collective
bargaining
agreement
at
five
percent
or
half
the
rate
of
return.
The
police
and
fire
retirement
system
retains
any
earnings
in
access
of
that
amount,
so
the
interest
is
split
evenly
between
the
drop
participants
and
the
police
and
fire
retirement
system.
I
I
So
the
public
act,
345
fire
and
retirement
system
funds
are
completely
separate
from
the
general
operating
fund
for
the
city
of
dearborn
heights.
The
drop
participants
voluntarily
keeping
their
money
in
the
drop
account
has
led
savings
for
the
taxpayers
of
the
urban
heights
by
reducing
the
city's
contributions
to
the
public
act,
345,
police
and
fire
retirement
system
on
an
annual
basis.
I
Similarly,
the
collective
bargaining
agreement,
language
for
the
city
of
durban,
heights
drop
program
can
be
found
in
redford,
as
I
showed
earlier
in
the
table,
there's
a
lot
of
far
a
lot
of
police
and
fire
departments.
They
use
that
drop
program
and
some
of
the
cities
that
actually
I
checked
into.
They
had
the
program
they
they
opted
out
of
it.
But
there
there's
a
lot
of
regrets
into
several
police
departments
and
fire
departments
that
I
reached
out
to
that.
I
They
said
they
should
have
kept
it
because
of
that,
as
as
mentioned
earlier
by
the
actuaries,
with
the
interest
that
the
money
earned,
it
goes
back
into
the
into
the
accounts
and
that's
it.
It
takes
away
from
the
taxpayers
paying
high
higher
millage
again.
That's
all
I
have
on
this
this
slide.
Thank
you,
mr
riley.
A
H
J
C
B
C
C
J
C
A
L
Ahead,
thank
thank
you
very
much.
Just
by
way
of
introduction,
my
name
is
tom
michaud.
I
have
the
pleasure
of
being
the
attorney
for
the
police
and
fire
retirement
system.
Act
345,
as
well
as
the
retiree
health
care
act.
345
trust
fund
by
way
of
introduction
just
want
to
make
sure
the
board
understands
are
the
members
of
the
of
the
council.
The
role
of
the
pension
board
and
the
role
of
the
retiree
healthcare
board
is
their
separate,
dedicated
trust
funds.
L
L
L
If
I
made
that
chair
just
very
very
very
specifically,
it's
not
the
responsibility
of
the
police
and
fire
pension
board
or
pension
health
care
board
to
issue
levies,
that's
within
the
responsibility
of
the
city,
and
so
I
would
respectfully
direct
any
of
those
questions
regarding
the
ability
to
issue
millage
and
collect
those
assets.
You
know
to
the
to
the
appropriate
city
representatives.
C
C
This
money
should
be
under
the
control
of
the
pension
board,
since
it
is
levied,
enter,
act
345
and
it
cannot
be
re-commingled
with
general
fund
in
the
interest
it's
used
like
last
year,
we
have
over
500
and
some
thousand
dollars
over
levitt
to
the
taxpayers,
which
I
calculated
over
the
years.
3.8
million
dollars
over
levitt
to
our
residents
like
the
cs06.8,
we're
talking
about
10
million
dollars
over
levitt
in
different
ways
to
our
taxpayers.
C
Without
any
accountability,
is
there
anything
we
can
do
as
city
council
first
to
make
sure
that
the
money
goes
to
the
right
place?
The
interest
goes
at
least
to
reduce
the
million
dollars.
Retiree
health
care,
we're
talking
about
only
the
pension.
We
have
a
huge
amount
of
liability
for
the
police
around
120
billion
dollars
for
health
care.
If,
god
forbid
anything
happen,
what
would
happen?
We
go
bankrupt.
Okay,.
A
F
F
C
F
Now
you
mentioning
the
levy,
you
mentioning
the
levy,
that's
a
different
issue
that
you
want
to
talk
to
the
attorneys
in
relation
to
that.
Maybe
plant
moran
but
I'll,
be
I
I'll
be
happy
to
sit
with
you.
We
can
call
them,
but
I
believe
once
you
know
the
the
once
you
levy
a
certain
amount,
even
if
it's
a
little
bit
over
and
I'm
not
saying
it's
a
little
or
whatever
you
know
it's
not
something
that
you
just
take
the
money
back
and
give
back.
I
don't
believe
it's
it's
it's
like
that.
F
C
A
C
C
B
Calculate
I
mean
we,
we
calculate
the
drop
interest
according
to
the
negotiated
contracts.
You
just
stated
what
they
were.
Basically
it's.
If
they're
in
the
drop,
it's
five
percent,
if
they've
exited
the
drop,
it's
actually
five
and
a
half
percent
or
half
of
the
market
date
of
return,
if
it
doesn't
achieve
the
five
percent
of
market
rate,
they
still
the
contracts
still
grant
that
they
get
five
and
a
half
percent
as
a
minimum
balance,
then
that
calculates
their
accounts.
B
I
provide
those
balances
which
you've
seen
at
the
year
end
that
they've
been
supplied
to
the
council
of
everybody's
balance,
of
the
drop
account
to
the
francois
and
it's
included
in
the
calculation
of
the
contribution
of
using
the
formulas
that
francois
uses
so
as
part
of
the
liabilities
of
the
system.
All
of
those
drop
account
balances
and
I
would
have
to
kind
of
defer
to
francois
how
all
those
numbers
all
work.
D
So
every
year
we
received
the
draw
balances
from
trustee,
riley
or
or
from
the
city
in
in
the
past
of
our
strategy
rally.
Those
amounts
do
include
the
interest.
We
do
make
a
vision
for
future
interest.
We
include
that
in
the
liabilities-
and
that
is
just
then
offset
against
the
assets
from
the
pension
plan
in
when
we
calculate
the
contribution
requirement.
C
Do
we
have
any
records
in
the
city
or
in
the
pension
board
or
at
your
disposal
showing
how
much
money
we
pay
separately
for
interest
and
the?
How
can
we
find
that
number,
because
you
have
one
number
and
to
me
as
city
council,
I
don't
know
how
much
I'm
paying
five
percent
interest
or
less
than
five
percent?
B
B
C
C
C
E
I
have
no
idea
if
it's
100
or
10
million
dollars
and
it's
fair,
that
we
should
know
that
that
amount,
even
though
it's
calculated
by
individuals
by
the
individual
person,
we
should
be
able
to
know
that
before
we
approve
anything-
and
my
next
question
was
about
the
drop
also,
if
the,
if
the
investments
gain
say
12
percent,
what
happens
to
the
the
seven
percent
over
on
the
investment
that
minus
the
five
percent,
do
they
do
they
they
get
50
of
the
12?
Is
it
raised
up.
B
E
K
K
K
I
know
that
there's
I've
seen
the
list
of
people
who
are
in
the
drop
program
who
have
retired
and
left
the
city
completely,
but
yet
their
money
is
still
in
that
fund
and
what
concerns
me
is:
if
the
fund
doesn't
earn
enough
money,
then
the
taxpayers
have
to
put
out
with
it
and
they're
completely
gone.
Now
I
know
in
the
private
sector,
when
we
have
our
401
accounts.
K
B
And
back
to
the
interest
part,
I
mean
there's
the
foia
request.
So
obviously
mr
abduhak
floyd,
if
I
don't
have
that
document
to
give
him
and
then
these
responsibilities
are
of
the
pension
trust,
not
the
city,
and
I
know
that
the
city
council
collects
the
millage.
So
I
guess
maybe
he
should
submit
a
request
and
see
if
the
trustees
want
me
to
go
ahead
and
do
that
calculation.
But
there
is
no
document
for
me
to
give
out.
N
K
B
B
A
O
H
Thank
you,
madam
chair.
This
is
for
trustee
john
riley,
so
if
a
police
or
fire
participant
has
25
years
of
service
with
the
city
and
they
al
and
otherwise
qualify
and
they
elect
to
go
into
the
drop,
the
interest
and
so
forth,
is
on
their
money.
They're
not
earning
any
more
service
credits
and
the
the
interest
is
on
their
money.
They
they
get
that
interest
or
that
part
of
it.
If
it's
and
there's
limitations
on
how
long
they
can
be
in
the
drop.
B
Correct
john
well
yeah
they
they
can
be
in
the
drop
for
either
five
to
seven
years
according
to
the
contracts,
and
then
they
exit
the
drop.
They
then
they
commence
their
monthly
pension
benefit
and
then
they'd
have
drop.
Balances
have
previously
discussed
that
money
does
not
have
to
be
taken
out
of
the
drop
account
according
to
the
contracts,
and
it
has
to
pay
the
interest
at
five
and
a
half
or
half
the
market
according
to
the
contracts,
and
so
that's
the
way
that
we
kind
of
administered
the
plan.
H
C
K
P
A
couple
of
statements
and
in
a
question,
first
of
all,
we
got
to
keep
in
mind
that
these
pensions
and
the
drop
program,
especially
the
pensions
I
mean
this-
is
what
attracts
people
to
come
into
our
city.
We
have
a
very
strong
pension
program
and
I
think
for
our
police
officers
and
firefighters,
it's
very
well
deserved.
P
One
of
the
first
things
that
I
learned
when
I
got
on
the
city
council
is,
unfortunately,
the
the
the
low
amount
of
pay
that
we
pay
to
our
police
to
our
police,
brand,
new
police
officers
and
firefighters,
especially
as
compared
to
other
cities,
and
it's
very
disappointing,
and
it's
time
we
all
voted
with,
and
I
also
voted
for,
of
course,
to
to
increase
the
amount
of
pay
for
our
fire,
firefighters
and
police
officers.
And
at
this
point
we
are
still.
P
If
you
look
at,
if
you
compare
it
to
other
cities,
we
are
still
one
of
the
lowest.
So
this
is
one
of
the
things
that
attracts
police
officers
to
want
to
come
to
our
city.
I
know
a
couple
different
police
officers
specific,
not
to
name
any
names
that
came
into
our
city
from
the
sheriff's
department
from
other
communities
are
considered
much
better
wealth,
much
better
to
do
as
far
as
financially
as
compared
to
our
budget.
Yet
they
came
here
because
of
our
pension
and
because
of
our
drop
program.
P
I
have
no
problem
when
people
get
into
the
drop
program,
because
it's
their
own
money
that
they're
getting
in
to
the
program
they're
putting
it
in
they're,
investing
it
and
they're
earning
interest.
I
would
say
it's
taxpayers
money,
not
really,
because
it's
their
own
pension
money
that
they
put
in
that's
being
invested
and
they're
getting
interest
back.
So
if
that's
an
incentive
for
somebody
to
want
to
work
in
our
city,
I'm
all
okay
for
that.
In
addition
to
that,
in
the
drop
program
we
do
have
to
you
know,
we
can't
forget
something.
P
When
you
lose
somebody
to
retirement,
you
lose
a
lot
of
their
experience
when
they
stay
in
the
drop
program
and
continue
to
work
for
us
they're
if,
if
they
went
somewhere
else,
if
they
went
to
like
let's
say
to
dearborn
or
livonia,
they
would
still
be
getting
their
pension.
So
I'd
rather
have
somebody
that's
very
experienced
that
stays
in
our
city
and
and
yes,
they
continue
to
get
paid.
P
But
if
they
go
to
another
city,
they're
still
going
to
get
their
pension
anyways
I'd
rather
have
them
stay
with
their
experience
in
our
city,
and
it
is
capped
at
seven
years.
And
lastly,
I
just
want
to
ask
a
question,
because
I
know
this
was
brought
forward
and
this
is
not
just
for
informational
purposes.
Only
this
particular
meeting
I
just
want
to
know
what
is
the
ultimate
goal
from
this
meeting.
P
P
C
On
the
contrary,
I
want
to
ask
the
administration
to
increase
the
entry
salary
for
the
police
and
fire
to
be
matching
to
cities
around
us,
but
I
want
to
make
sure
that
there
is
no
burden
in
the
long
run
for
our
residents
like
when
the
administration
in
the
council,
previous
council,
allowed
to
purchase
five
years
and
three
years
of
service
to
me.
Maybe
I
am
wrong
if
somebody
has
a
20
years
and
he
bought
five
years,
he
started
collecting
his
pension
five
years
ahead
of
time.
C
C
Basically,
so
we
all
learn.
If
the
contract
comes
up,
we
don't
make
the
same
mistakes,
which
happened
in
my
opinion,
by
the
previous
administration.
We
are
in
the
business
to
keep
all
the
experienced
people.
We
are
in
the
business
to
attract
the
best,
but
I
want
to
make
sure
that
the
taxpayers
money
is
going
in
the
right
way
to
the
right
places.
A
A
Q
Thank
you,
council
chair.
I've
listened
to
different
numbers
thrown
out,
and
yes,
I
am
a
trustee
and
I've
been
for
years,
but
as
a
citizen
I
keep
hearing,
how
much
is
it?
The
drop
has
cost
citizens
we've
heard
from
the
trust
financial
advisor
that
historically,
it's
made
a
little
over
nine
percent
if
we
guarantee
have
to
guarantee
trust
participants,
five
percent
long
term,
as
the
councilman
keeps
saying
we're
still
on
the
plus
side.
Q
According
to
those
numbers,
it
hasn't
cost
the
citizens,
it's
investment
earnings,
we've
paid,
nine
percent,
we've
earned
nine
percent
and
at
best
on
the
members,
money
have
paid
five
or
more
when
it's
made
more
so
over.
Historically,
the
drop
program
has
not
cost
the
taxpayers,
it
might
have
cost
investment
earnings
any
more
than
we've
paid
out.
So
I'm
not
a
mathematician,
I'm
a
citizen,
but
nine
percent.
What
we've
earned
is
greater
than
five
percent
that
we've
paid
out.
Historically,
that's
all,
I
have
to
say,
as
a
citizen.
A
Q
A
M
I'll
be
really
quick,
so
I
did
want
to
address
when
we
were
looking
at
the
total
taxation
taxes
collected
under
acts
345,
which
includes
the
pension
and
the
health
care.
We
came
up
with
a
figure
of
11
million.
However,
I
will
tell
you
it
was
difficult
to
do
because
it's
not
separated
out
so
I
am
working
in.
I
know
director
or
excuse
me.
M
A
K
Under
contract
get
exactly
what
they
deserve
and
what's
coming
to
them,
I
don't
want
anybody
taking
anything
away
from
them.
In
fact,
if
there's,
if
there's
going
to
be
interest,
that's
supposed
to
be
that
is
being
paid
and
we're
putting
it
in
general
fund
to
me
it's
short-changing,
my
union,
brothers
and
sisters.
I
don't
like
that.
I
want
to
make
sure
that
they
get
it
plus
I
want
to
be
able
to
have
the
taxpayers
have
their
part
reduced
by
that
amount.
B
Riley,
okay,
so
this
is
something
that
I
I
wanted
to
have
all
the
discussion
and
answer
all
of
the
questions
I
mean
mr
al
dehock
wanted
to
have
this
meeting.
I
pulled
together,
everybody
that
he
wanted
to
have
at
this
meeting
together
at
this
meeting.
So
hopefully
all
of
the
questions
have
been
answered
so
that
we
can,
you
know,
kind
of
put
the
inner
fighting
to
to
rest,
because
there
are
no
mistakes,
we're
not
we're
not
not
doing
things
right.
We
are
doing
we're
doing
things
properly.
B
I
I
did
that
and
what
I
found
is
that
it
doesn't
fit
into
my
retirement
plans
working
part-time,
because
actually,
the
couple
days
a
week
have
turned
into
I'm
here
at
city
hall,
more
than
I
wanted
to
be
as
a
retiree,
the
boards,
the
police
of
fire
pension
board
also
with
and
then
and
then
on
the
general
government
side,
the
general
government
pension
was
was
administrated
by
me
as
the
city
treasurer.
When
I
left
mr
abdelhoff
became
treasurer
and
he
was
we,
he
was
wanting
to
find
a
part-time.
B
We
said
we
should
wait
until
somebody
got
elected
to
that
position.
As
mrs
councilman
hicks
clayton
got
elected
treasurer
and
then
the
we
said
to
the
board.
Well,
we
need
to
appoint
somebody
as
administrator.
They
were
not
ready
to
appoint
the
new
treasurer,
and
so
they
wanted
to
hire
an
outside
person.
We
put
the
two
pension
boards
went
together
and
they
formed
a
committee
to
find
an
administrator
to
administrate
the
two
pension
systems,
which
was
not
going
to
be
me,
and
we
figured
out
a
value
for
for
that
position.
B
B
So
as
as
that
would
be
the
budgets
that
we
submitted
to
the
to
the
city
council,
I
went
over
the
general
government
budget
amendments
needed
to
pay
for
that
administrative
person
last
week.
I
believe
it
was
friday,
but
the
police
and
fire
system
also
needs
to
make
a
budget
amendment
for
so
that
they
so
that
the
administrator
can
be
paid
from
the
part-time
salary.
It's
a
part-time
position
to
administrate
this
pension
system.
B
There
are
companies
out
there
that
administrate
these
plans
and
for
them
to
come
in
and
administrate
our
parents
kind
of
like
the
assessor's
office
as
an
outside
contractor
they
would.
It
would
be
between
150
and
250
thousand
dollars,
so
it
makes
sense
for
the
city
and
the
two
pension
systems
to
work
together
to
have
that
administrator,
be
an
employee,
a
full-time
employee
of
the
city
funded
by
the
pension
system,
as
as
I
was,
and
to
operate
the
systems.
A
B
B
I
I
I
understand
that
madam
chair,
I
was
going.
If
you
could
give
me
a
set
time
tomorrow,
I
would
be
there.
I
was
going
to
be
working
with
city
treasurer
tomorrow,
the
newly
elected
council,
a
woman,
a
treasurer
hicks
clayton
tomorrow
on
doing
some
training,
so
that
I'm
sure
we
could
hop
on
and
talk
about
that.
B
A
K
A
K
K
B
K
A
M
N
N
Negotiated
in
the
police
and
fire
contract
is
eligible
for
funding
by
public
act.
It's
not
only
the
pension,
it
is
the
health
scale.
It's
the
drop.
It's
everything
you
negotiate.
It's!
It
is
eligible
under
public
act,
so
whatever
we
collect
for
you
as
a
board
of
active
545,
it
is
your
money.
It
is
a
something
that,
under
the
your
board,
is
a
quasi-governmental
agency.
N
It
is
not
under
the
city
council,
we
collect
to
simply
collect
the
money.
You
get
the
money.
Now
we
as
a
city
process
for
you,
the
accounting
system
for
the
health
care
and
other
few
accounts,
and
since
we
have
a
process
in
the
control
office
that
every
invoice
comes,
it
goes
through.
The
entry
goes
to
the
general
ledger
after
that,
if
it's
a
city
is
a
city
invoice,
it's
gonna
go
to
the
concert.
If
it's
over
five
fifteen
hundred
dollars
or
five
thousand,
it
depends
whether
it
is
service
or
materials.
N
In
the
case
of
the
invoices,
you
know
under
the
act
345,
which
is
the
healthcare
and
other
ones
where
this
is
gonna
go.
The
city
council
have
no
jurisdiction
over
it.
It's
gonna
go
somewhere
to
be
approved
under
the
active
45.
It
says
all
invoices
for
active
foreign
after
the
resolution
by
actually
45
and
signed
by
two
members
of
the
of
the
act.
There
goes
their
treasure
from
our
time.
N
A
L
Michonne,
thank
you,
madam
chair.
Just
you
know
once
again,
you
know,
as
I
mentioned
earlier,
you
know.
The
the
millage
issues
are
financial
issues
that
should
be
directed
to
the
financial
and
representatives
of
the
departments
of
the
city.
It's
not
the
responsibility
of
the
pension
board
or
the
retiree
health
care
board
to
issue
millages,
and
so
those
questions
should
be
directed
to
the
city
attorney,
specifically,
if
there's
any
questions
about
the
responsibilities
and
role
of
the
city
in
terms
of
its
funding
and
tax
taxing
authority.
Thank.
B
You
miss
madam
chair.
I
think
the
the
question
was
is
when
the
healthcare
invoices
come
due
sounds
like
mr
jamal:
wants
them
approved
by
the
pen
by
the
healthcare
trust
board,
but
the
those
are
being
done
on
a
pay
as
you
go
as
the
my
understanding
is,
the
115
trust
allows,
and
so
it
is
not
under
the
jurisdiction
of
the
health
care
trust
board,
because
the
money
is
not
put
into
the
trust.
The
only
money
invested
in
the
health
care.
B
O
Chairs,
thank
you
so
much,
madam
chair,
mayor,
bazi,
trustee
riley.
Colleagues.
Thank
you
all
for
being
here
and
I
thank
zuhair
councilman
johar
for
putting
this
together
so
that
there
could
be
an
open
dialogue,
amongst
you
know,
looks
like
the
firefighters
police
officers,
the
trustees
and
some
of
the
council
members.
They
had
some,
you
know
concerns,
but
I,
as
you
know,
I
I
think
from
looking
at
this
today,
we've
been
able
to
see
that
there's
been
some
clear
vision
here.
O
O
You
know
long
term
with
that
said,
I
thank
you
guys
for
taking
your
pay
cuts.
I
know
that
in
the
past,
I'm
speaking
with
the
firefighters
and
some
of
the
police
officers,
a
lot
of
them
have
taken
pay
cuts
in
order
to
you
know,
look
out
for
the
for
the
city
of
dearborn
heights
and
to
be
able
to
make
sure
that
we
had
that
surplus
of
money
in
our
accounts.
So
I
thank
you
guys
for
that
and
I
hope
I
hope
everybody
has
a
wonderful
day.