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From YouTube: Dearborn Heights Study Session: 6/23/20
Description
The Dearborn Heights Study Session regarding General Government Pension Committee Actuarial Valuation as of July 1, 2020 & The Proposed 2020-2021 TIFA Budget taking place Tuesday, June 23rd 2020 via Zoom.
A
A
We're
ready
for
my
report,
then.
Yes,
we
are
very
good.
Thank
you.
It's
a
pleasure
to
be
here
to
meet
with
you
and
discuss
the
actuarial
valuation.
As
you
just
mentioned,
it
is
based
on
data
as
through
2019,
but
it's
for
the
develops
the
contribution
for
the
fiscal
city's
fiscal
year,
beginning
July,
1st
2020.
A
C
A
Those
that
purchase
service
yep
were
included.
In
fact,
there
were
some
that
actually
were
not.
It
turned
out
not
able
to
purchase
service
or
did
not
want
to
so
that
happened
as
well,
and
finally,
there
were
in
service
distributions
for
some
people
and
and
what
that
meant
is
that
some
people
who
could
were
eligible
to
meet
the
eligible
retirements
requirements
for
retirement
could
retire
and
yet
continue
to
to
work.
A
There
were
no
assumption
changes
included
in
this
valuation
and
the
actual
experience
the
actual
people.
Information
didn't
change
too
much.
Nor
did
the
asset
information.
The
number
of
active
members
stayed
about
the
same.
It's
121
just
a
couple
more
than
last
year,
the
number
of
retirees
were
just
one
last
157,
but
noting
that
the
annual
pensions
are
now,
you
know
three
point:
four
million
dollars,
which
is
certainly
a
significant
amount
and
and
that's
why
we're
so
concerned
about
making
sure
that
the
benefits
are
funded
now
in
an
end
of
the
future.
A
And
finally,
there
are
57,
we
call
them
inactive
members.
These
are
people
who
are
no
longer
working
for
the
city,
but
who
will
be
eligible
because
they
have
enough
service
credit
and
once
they
meet
the
age
requirement,
they
will
be
able
to
to
retire
and
the
asset
information
below
that
that
didn't
change
too
much
either
40
million
of
valuation
assets
and
the
market
value
of
assets
was
about
40
million
as
well.
This
is
what
we
like
to
see.
A
A
They're,
what
we
do
is
compute
the
contributions
and
express
them
as
Express
percents
of
payroll
and
then
we'll
show
you
a
comparison
with
what
the
contribution
rates
have
been
in
past
years.
The
unfunded
liability
is
being
amortized
now,
over
a
period
of
22
years.
That's
a
one-year
decrease
from
the
prior
valuation,
the
the
total
normal
cost
for
the
benefits,
which
would
be
the
cost
for
the
active
employees
to
pay
for
the
benefit
they're
accruing
this
year
is
$800,000
and
the
amortization
payment
is
788
thousand
dollars.
A
The
accrued
liability
jumped
up
fifty
three
point:
seven
million
dollars-
and
that
was
largely
due
to
the
effect
of
the
contractual
bargaining
provisions.
The
SS
allocated
to
funding
stayed
about
the
same
so
hence
your
unfunded
actuarial
accrued
liability
that
needs
to
be
amortized
and
paid
for
overtime
is
thirteen
point
two
million
versus
the
nine
and
a
half
million
from
the
prior
year.
The
contribution
you
can
see.
A
The
contribution
yeah,
if
you
get
to
the
bottom,
the
contribution
rose
from
1.2
million
last
year
to
1.5
9
million
this
this
year
for
fiscal
year,
beginning
July,
1st
of
2020
going
on.
Then,
let's
see
to
the
next
page
5
there
you
see
going
back
to
2001
what
the
assets
have
been
and
when
we
say
valuation
err
says,
that's
the
funding
value.
It's
not
the
market
value,
it's
the
funding
value
but,
as
we
pointed
out,
that's
pretty
much
the
market
value
this
year,
the
the
accrued
liabilities.
A
You
can
see
the
jump
there
again
and
the
result
is
that
the
funded
ratio-
that's
the
assets
divided
by
the
liabilities,
went
down
to
seventy
five
point.
Four
percent
and
the
unfunded
amount,
of
course
increased.
So
ideally
you
don't
want
to
keep
increasing
your
or
decreasing
the
funded
ratio
that
it
will
happen
when
you
have
major
changes
and
benefit
provisions
and
just
other
experience
that
is
not
as
favorable
as
expected,
and
so
you,
you
went
from
eighty
one
percent
down
to
seventy
five
percent.
You
want
to
get
the
trajectory
going
back
up.
A
It's
certainly
the
better
place
to
be
you've
been
in
a
very
well
funded
position
and
you're,
not
relative
to
other
retirement
systems.
Seventy
five
point:
four:
is
not
your
horrible
position
relative
to
other
municipalities,
but
you
certainly
don't
want
the
trend
to
go
down.
You
know
to
the
extent
that
that's
that's
possible
to
avoid
and
you
want
to
get
it
increasing
again
up
over.
You
know
just
an
interjection
that
it's
going
up
to
the
80s
and
and
hopefully
at
some
point,
the
nineties,
all
right.
A
So
the
assumptions
are
really
key
and
you
know
how
large
your
liabilities
are
or
small
and
it-
and
they
are
it's
important,
but
the
important
thing
is
that
they
reflect
what's
actually
happening
in
the
retirement
system
and
what
is
anticipated
to
happen
so
currently
you're
assuming
a
7%
earnings
rate,
and
that
is
you
can
be
glad
you're
at
that
position.
Many
retirement
systems
have
been
somewhere
as
high
as
8%
and
then
many
of
them
you
now
most
of
them
now
are
trying
to
get
down
to
where
you
are
the
7%,
probably
the
majority.
A
A
You,
probably
don't
have
to
decrease
that
assumed
rate,
but
you
have
to
you
have
to
look
at
what
the
possibilities
are
and,
of
course
make
those
determinations.
But
I
will
mention
that
the
board
has
the
Retirement
Board
has
adopted
to
have
a
new
experience.
Study
done
and
that
new
experience
study
is
based
on
the
prior
five
years
of
experience
and
will
help
us
to
establish
the
rates
going
forward.
A
Salary
increases
are
assumed
at
four
and
a
quarter
and
that's
probably
a
little
bit
on
the
higher
side
of
what
other
municipalities
are
assuming.
So
your
your
assumptions
are
rather
a
pretty
mainstream
and
and
conservative
on
the
investment
on
the
economic
assumptions
now
going
on
to
the
next
page,
the
mortality
table
the
the
retirement
path.
A
It
ranges
from
about
you
know
the
younger
ages,
maybe
three
years
more
of
a
lifetime
down
to
very
small
changed
age,
75
or
80,
so
basically
from
three
extra
years
to
almost
like
a
half
a
year
difference,
and
you
can
imagine
that
will
cause
an
increase
in
the
computer
contribution
rate
as
we
project.
If,
if
it's,
if
the
board
adapts
to
use
a
newer
mortality
table
but
I'm
comfortable
with
the
RP
tooth,
the
2004
table,
that's
being
currently
used,
it's
it's.
A
You
know
relatively
relatively
new,
but
I
think
eventually
we'll
get
to
a
after
the
experience
study
you
probably
decide
within
the
next
few
years
to
increase
the
longevity
rates.
The
next
pages
I
won't
dwell
on
too
much
pages.
14
are
the
withdrawal
rates,
and
what
that
means
is
how
many
people
are
expected
to
quit.
Prior
to
retirement
and
the
more
quits
you
have,
the
better.
A
The
end
of
the
report,
the
following
section,
5
beginning
on
page
17.
It
shows
the
development
of
the
funding
value
of
assets.
I
won't
go
into
that's
right.
Okay,
the
investment
return,
the
nominal
rate
of
investment
return
computed
this
year
was
six
and
a
half
percent.
Now
that
is
not
the
rate
that
the
investment
advisor
would
would
give
you
necessarily,
but
it's
for
our
purposes
of
internally,
to
compute
the
rate
of
return
that.
A
Reflects
the
fund,
the
actuarial
methodology,
the
six
and
a
half
percent
is,
is
a
reasonable
result,
I
think
and
it's,
but
it
is
less
than
the
seven
percent
we'd
want
it
to
be
this.
You
know
seven
percent,
ideally
or
more
so,
but
as
we
mentioned
before,
the
funding
value
of
assets
is
pretty
much
equal
to
the
the
market
value
page
18.
A
A
If
you
look
at
page
20,
just
a
brief
look
there,
the
age
and
the
age
distribution
of
your
retirees,
I
think
it's
interesting
and
I
usually
point
this
out
that
how
many
people,
what
percentage
of
the
people
are
over
90
years
old
and
a
6%
here-
and
it
wasn't
that
long
ago,
when
it
was
viewed
as
really
being
a
high
percent
of
the
people
living
over
90,
was
one
or
two
percent
of
the
total.
And
now
it's
6
percent,
and
that
reflects
the
fact
that
people
are
living
longer
and
page.
A
21
again
is
just
the
best
of
the
actives
go
over
to
page
22,
that's
last
page
and
the
age
and
the
service
distribution
of
the
active
employees
is
shown.
You've
got
22
people
less
than
four
years
of
service.
But
if
you
look
down
at
the
schedule
at
the
bottom
of
the
page,
see
and
in
the
shaded
box
and
compare
it
with
prior
years,
not
too
much
change.
A
In
the
average
agent
service,
the
average
age
is
46
years
and
the
average
service
is
12
years,
probably
on
average
a
little
higher
averages
than
in
many
other
retirement
systems.
But
but
here's
a
state
pretty
much
constant
so
with
that
I
think
I've
hit
the
high
points
and
I'm
looking
forward
to
you
know
seeing
where
the
experience
study
comes
out
and
making
recommendations
with
respect
to
that,
and
we
appreciate
the
opportunity
to
work
on
this
valuation
for
you.
If
there
are
any
questions
more
than
happy
to
try
to
respond
hey.
Does
anybody
have
a
home.
B
D
D
So
when
you
put
two
or
three
of
them
together,
which
happened
this
last
time,
you're
rolling
in
the
overtime
you're
allowing
the
purchase
of
time
and
then
in
service
credit,
you
had
three
items
that
all
got
added
in
and
so
the
the
sum
of
the
total
is
more
than
the
three
individual
parts
is
I.
Guess
what
I'm
trying
to
say
so
so
we
really
take
that.
You
know
really
appreciate
the
council
taking
the
time
and
I
just
want
to
say
that
the
member
of
the
boards
are
here.
D
We
have
a
trustee
Decker
here,
trusty
Lauer,
trusty,
Macari
and
myself.
The
trustee
Garcia
is
on
vacation.
We
have
our
financial
consultant,
mr.
Riga
and
our
attorney
a
Jack
Timoney,
and
then
everybody
has
met
sandy,
who
just
gave
the
presentation,
and
so
the
board
will
reconvene
their
meeting
after
you
guys
are
done
and
accept
this
report.
But,
as
you
can
see
in
the
kind
of
long
run,
it
increases
the
contribution
that
the
city
is
required
to
make,
whereas
the
gap
between
the
the
liability
and
the
funding
amount
of
money
funding
comes
together.
E
E
Those
are
all
people
who
have
been
in
the
works
for
the
city
for
thirty
years
or
more,
all
right
with
the
purchase
of
time.
Okay
and
then
second
question:
the
actuary
mentioned
an
increase
for
those
who
have
been
retired
and
receiving
their
pension
for
five
years
was
that
basically
like
a
cola
increase
across
the
living
increase?
Yes,.
D
That
was
a
that,
was
it
that's
it
in
your
ordinance
that
you
guys
approved,
but
that
was
a
prior
City
Council
approved
years
and
and
then
at
one
point
there
was
that
we
were
required
to
do
the
maximum
distribution,
so
it
was
funded
with
a
million
dollars
and
if
we
would
have
kept
at
that
high
maximum
amount,
we
would
have
much
money
left
at
all.
But
now
that
fund
is
like
in
a
million
and
the
board
controls
how
much
is
distributed,
and
actually
this
year
we
lowered
it
down
a
little
bit.
D
We've
got
like
what
I
say
was
we
taken
our
foot
off
the
accelerator
and
have
reduced
the
amount,
is
being
distribution
distributed
using
that
supplemental
benefit
as
because
you,
the
council,
again
made
an
amendment
to
that
ordinance,
giving
the
board
the
ability
to
make
how
much
would
be
distributed
each
year.
All.
D
E
D
But
our
assumed
rate
of
return
is
seven
percent,
so
when
we
only
earned
six
and
a
half,
we
actually
have
a
actuarial
kind
of.
We
didn't
meet
our
bogey
of
seven
percent.
Now,
over
the
long
term,
we
have
met
the
seven
percent,
but
in
the
short
term
the
market
rates
fluctuate,
and
sometimes
some
of
the
eight
periods
or
like
for
this
particular
year
was
six
and
a
half
percent.
That's
you
know,
didn't
meet
the
seven
percent
bogey
that
we
have
set
up.
E
D
B
A
B
Here's
a
question:
I
did
yes.
Thank
you.
Council,
chair
I
had
noted.
You
know.
Through
the
years
when
I
first
took
office
in
2012
our
we
were
funded
in
the
middle
90s,
90
percentile.
So
as
our
treasurer
John
Riley
indicated,
it
has
steadily
declined
over
the
years,
whereas
75
percent
now
and
the
question
I
have-
is
the
annual
contribution.
Correct
me
if
I'm
wrong,
you're,
looking
at
1.5
million?
Is
that
correct?
And
if
so
and
pardon
me,
because
I
don't
have
the
budget
in
front
of
me,
and
you
tell
me
what
our
annual
allocations
are.
D
Madam
chair,
if
I
may,
is
a
council
Councilwoman
Clayton's,
so
we
had
this
report
back
in
May,
and
so
your
current
budget
has
these
numbers
in
the
budget,
according
because
we
knew
the
contribution
amount
even
before
the
report
was
done,
because
we
try
to
get
that
into
your
budget
so
that
you
guys
actually
approve
a
budget
with
the
proper
funding
amount.
If
that
answers
your
question
Councilwoman,
it.
B
D
B
B
C
C
B
F
So
I
had
two
questions.
The
first
one
is
a
simple
one.
If
you
look
at
on
page
two,
you
have
active
numbers
payroll
that
five
point:
five,
four
zero,
two
nine
four
million
you
got
a
hundred
and
twenty
one
active
members.
The
year
before
we
had
one
hundred
and
nineteen
active
members
which
is
about
one
percent
less
but
yeah
our
payroll
is,
it
has
gone
up.
Eight
percent
debt
has
that's
completely
honest,
correct.
That's
that
there's
nothing
to
do
with
as
far
as
like
you
guys
is.
That
is
that
correct?
That's.
F
A
A
F
A
A
Reason
for
the
decrease
in
the
funded
ratio
is
the
increase
in
liabilities
attributable
to
the
benefit
provision,
changes
and,
as
John
Riley
pointed
out
sometimes,
and
when
you
compound
the
effect
of
the
various
changes,
that's
that
has
more
impact
than
just
making.
You
know
one
change
and
one
thing
affects
the
other.
If
some,
if
they
are
allowed
to
retire
earlier,
plus,
they
can
purchase
service
credit
plus
they
have
pay
raises
or
exceed
the
the
assumed
amount.
All
of
those
things
affect
affect
the
liability.
D
So
if
you,
if
you
look
in
the
budget,
I
want
to
go
back
to
Councilwoman
Clayton's.
If
you
look
at
budget
line
101
two
hundred
seven
one,
eight,
the
general
government
pension
contribution
amount
is
1
million
three
hundred
and
six
thousand
dollars,
and
that
ties
to
page
three
of
the
report
when
they
took
the
million
five
hundred
and
ninety
one
thousand
and
broke
it
down
between
general
fund
and
water.
B
D
B
G
A
G
H
Well,
everybody
should
have
a
copy
of
our
proposed
budget
in
front
of
you,
I
believe
I'll
just
kind
of
go
through
and
give
you
some
highlights.
Not
much
has
changed
and
it's
the
same
category
still
basically
every
year,
if
you
start
looking
at
the
revenue
for
the
TIF
revenue,
the
the
income
capture,
going
with
a
number-
that's
pretty
much
exactly
what
we
collected
this
year.
The
thought
is,
there
may
be
some
growth
next
year,
but
because
of
the
pandemic
hitting
we
don't
want
to
be
counting
any
chickens
before
they've
hatched.
H
So
I
thought
it'd
be
best
to
take
a
conservative
approach
towards
our
revenue,
so
it
just
kept
it
at
the
actual
capture
that
happened
this
year
and
we
also
receive
a
payment
from
the
court
towards
the
the
bond
that
the
agreement
was.
They
contribute
I,
believe
it's
$10
from
every
ticket
or
some
sort
of
ticket,
some
sort
of
fine
that
goes
toward
towards
the
building
and
that
numbers
been
dropping
pretty
consistently.
Every
year
we
had
anticipated
hundred
and
seventy
five
thousand
last
year,
but
it
dropped
to
under
a
hundred
thousand
this
year.
H
So
that's
the
number
we're
gonna
estimate
for
next
year
as
the
ninety
nine
thousand,
so
it
gives
us
the
total
proposed
revenue
of
2194,
a
two
million
one
hundred
ninety
four
thousand
and
then
going
into
the
expenses
the
the
Justice
Center.
The
principle
of
the
bond
the
Tiffa
covers
is
anticipated
to
go
up
by
about
twenty
thousand
dollars.
H
However,
the
interest
is
going
down
by
about
19,
so
pretty
much
a
wash
from
last
year,
just
kind
of
switching
from
category
and
category
there,
then
our
library
bond
payment
that
we
contribute
a
percentage
of
the
JFK
Library
bond.
That's
just
going
up
slightly
this
year,
so
that's
pretty
much
unchanged.
The
administration
fees,
the
only
thing
that's
going
up
is
because
our
anticipated
revenue
is
going
up.
H
Our
agreement
with
the
city
from
when
they
established
fo
was
6%
of
the
revenue
capture
would
be
given
to
the
city
for
administrative
expenses
that
they
do
on
our
behalf.
So
that's
going
up
slightly
because
of
the
uptick
in
the
estimated
revenue
from
last
year
and
then
going
down
to
the
projects.
You'll
see
Westwood
schools.
The
line
item
is
still
the
same.
Industrial
park
improvements.
The
same
commercial
rehab
program
we're
still
leaving
that
at
the
same
fire
station
improvements
we
have
is
the
same
deficit
improvements
we've
gone
up
to.
H
We
budgeted
45
they're
in
the
process
of
looking
for
a
new
sign
for
up
front.
The
sign
up
front
is
in
bad
condition,
always
having
to
be
repaired,
so
the
TIF
aboard
provided
in
the
budget
to
pay
for
the
cost
of
a
new
sign
out
front
of
the
Justice
Center.
Then
tree
trimming
yeah.
We
do
tree
trimming
project
every
year,
25,000
through
the
TIF
district.
That's
remaining
the
same.
We've
added
5,000
into
the
ordinance
officer
fun.
Sometimes
they
find
it
could
be
helpful
to
have
some
additional
help.
H
So
we
provide
a
little
more
funds
there
in
case
they
need
to
have
somebody
cover
the
area
we
can
help
pick
up
the
cost
of
that
it's
the
right-of-way
maintenance
and
repair.
We
drop
that
down
a
little
bit
from
last
year,
we
had
anticipating
doing
a
lot
of
cleanup
projects
of
properties
that
we
own
some
more
than
just
routine
maintenance,
old
tree
overgrowth,
and
things
like
that.
We
got
some
of
it
done
this
year
or
looking
to
still
do
somewhere
next
year,
but
not
as
much
because
we've
already
took
care
of
some
of
it.
H
This
year,
then
continuing
on
with
daily
park
improvements,
relieving
10,000,
and
for
that
van
boring,
commercial
improvements
were
continuing
another
50,000
this
year.
Should
we
have
pride,
it's
going
that
we
would
need
that
for
DPW
improvements.
We
put
a
substantial
amount
of
money
in
there.
We
move
that
to
a
hundred
thousand
and
talking
with
director
Selmy
there's
a
number
of
problems.
I
went
down
and
toured
the
facility
they
have
old
asbestos
tiles
that
are
breaking
up
a
number
of
issues
in
the
offices
in
the
facilities
for
the
employees
or
in
bad
shape.
H
Next
item
is
Beach
daily
improvements
we
left
10,000
and
their
crime
prevention.
We
left
2,000
their
library
improvements.
We
went
up
to
10,000
from
the
5,000.
They
didn't
use
last
year's
that
a
lot
meant
for
5,000.
So
we
wanted
to
roll
that
over
into
this
year,
for
them
they're
working
on
getting
a
new
emergency
door
for
the
JFK
Library
they've
had
some
trouble
with
I
guess
finding
exactly
what
they're
looking
for
there,
but
I'm
sure
the
money
will
be
used
towards
that
project
and
talking
with
the
director,
and
then
that
means
their
contingency.
H
We
lowered
that
quite
a
bit.
You
know,
as
I
mentioned
a
couple
years
ago,
it
was
kind
of
a
new
thing
for
us
in
the
budget
to
have
the
contingency.
At
the
suggestion
of
the
auditors,
we
weren't
quite
sure
what
level
to
have
it
at
so
the
way
the
numbers
worked
out
and
we
feel
comfortable,
giving
a
lower
number
than
we
did
in
the
past
on
the
contingency.
So
that's
not
a
synopsis.
If
anybody
has
any
questions.
B
E
E
H
Right
those
those
are
approved,
projects
see
when
the
TIF
was
established.
There
was
a
list
of
certain
things
that
Tiffa
can
use
its
funds
for,
and
those
are
two
of
the
items
that,
if
I
can
use
its
funds.
For
so
like
say,
if
the
you
know
director
said
hey,
we
need
to
replace
the
tiles
it
costs
whatever
what
the
cost
of
save
fifty
thousand,
because
I
think,
rather
than
replace
we
could
encapsulate,
which
is
probably
a
better
option.
There
say
it
cost
fifty
thousand
to
encapsulate.
E
B
Hi,
thank
you.
Thank
you,
madam
chair.
Just
two
quick
questions.
I'm
hoping
you
can
share
with
us.
The
first
thing
is
daily
park.
I
know
there
was
a
lighting
project
that
was
much
needed
there
and
I
know.
Tiffa
was
instrumental
in
getting
that
accomplished
and
thank
you
for
that,
as
well
as
the
site
is
assigned
been
replaced
and
what
is
in
the
project
for
this
year.
H
The
the
sign
there
was
a
sign
we
had
put
in
two
new
signs
and
we
paid
for,
and
one
of
them
was
damaged,
so
we
did
pay
for
that
to
be
replaced.
That
was
about
a
year
ago
or
so,
and
then
we
also
paid
for
new
the
wood
chips
or
ever
they
put
under
the
equipment
we
paid
for
that
to
be
installed
as
for
this
year,
we
just
we
have
it
in
the
budget,
but
we
just
have
it
opened.
I
talked
with
the
parks
director
told
him
if
he
needs
anything
at
all
a
daily
park.
H
This
year
we
don't
have
anything,
especially
those
specifically
lined
up
this.
The
virus
thing
kind
of
knocked
us
off
track
a
little
bit
on
what
to
do.
That's
that
money
we
budget
every.
We
don't
necessarily
use
it
every
year.
Sometimes
we
do
to
help
with
the
beautification
of
each
I.
In
the
past
we
have
paid
for
trees
and
plans
to
be
put
in
some
maintenance
going
on
that.
We
use
that
to
like,
if
there's
some
kind
of
a
maintenance
problem
on
beach
daily.
H
A
I
Name's
James
Spaulding
I'm
live
I,
moved
here
in
Dearborn,
Heights
and
I
was
you
know,
curious
about
the
budget
and
I
was
hearing
you
go
through
everything.
I
was
trying
to
look
up
the
information
as
you
were,
going
through
it,
I
didn't
not
sure
if
I
was
looking
at
the
correct
detail.
So
a
lot
of
the
cott
of
the
comments
he
made
were
like
Delta's
like
how
much
we
were
increasing
or
deep.
You
know
budgets
like
what
is
the
total
allotted
budget
for
the
current
for
the
police
department.
H
I
A
B
Madam
chair
I'm,
just
looking
I,
was
gonna.
Try
to
connect
to
the
gentleman
to
see
if
it's
on
our
website,
because
it
should
be
posted.
The
approved
budget
should
be
posted
on
the
website,
so
you
may
be
able
to
find
it
there
I'm
trying
to
find
it
now.
I
thought
I
could
direct
you
there,
sir,
but
the
approved
budget
would
be
typically
posted
on
the
website.
So
you'd
be
able
to
look
up
that
information.