This time we'll call to order the June 15, 2026 meeting of the City of Clearwater Community Redevelopment Agency. This time we'll move to item 2.1 on the agenda. Approve the minutes of the May 18, 2026 ERA meeting. Is there a motion to approve the minutes? So moved. Second. All those in favor? Aye. Opposed? Unanimous. This time we'll move to unanimous, but Trustee Cotton is not here today. That will move to item 3 on the agenda. Citizens to be heard regarding items not on today's agenda. At this time, are there any citizens here today who desire to be heard on a community redevelopment agency issue that is not on today's agenda? And seeing no, we'll move to item 4.1. Present Hatchet Hangout as the June 2026 winner of the Clearwater CRA Business Spotlight Program. Good afternoon, everyone. My name is Tasha Hadley, CRA Specialist. And today I'm pleased to recognize Hatchet Hangout as our June Business Spotlight winner. Located at 709 North Myrtle Avenue, Hatchet Hangout is a unique destination for recreation and entertainment since opening in North Greenwood in 2020. Owned by Drew Noyvichik and managed by Barry Burris, the business offers axe-throwing, league play, private events, team-building activities, and fundraisers in a fun and welcoming environment for guests of all skill levels. As an official axe-throwing league venue, Hatchet Hangout provides opportunities for both casual and competitive throwers to connect through friendly competition and experiences. The business also supports local nonprofits and community organizations through fundraising, partnerships, donations, and events. To help share their story, the CRA and Public Communications collaborated to create a video highlighting the business and its impact. The video has been shared across our social media platforms, and a full article is available on our website at MyClearWaterCRA.com. Hatchet Hangout supports the city and CRA's shared goals of supporting local businesses by expanding recreational activities within our redevelopment areas. At this time, we invite you to view the video showcasing Hatchet Hangout. My name is Barry Burris. I've been the general manager of Hatchet Hangout since inception. We've been in North Greenwood since 2020-21. North Greenwood was a great choice for us because of the closeness to everything. You have the downtown, you have the major bus routes, and it's a thriving neighborhood that is just up and coming, so we want to contribute to that neighborhood. First-time visitors should expect a high energy, a fun atmosphere for all. We have loads of games, tons of drinks for the guests to choose from. Each lane gets a coach. We help the group, make sure they're having a great experience, and we want everybody from 8 to 80 to have a great time. Community involvement is huge in our business. We love donating to organizations like Pet Pal. We like to do a lot of events. We do host leagues. We also have a mobile trailer. We come out to parties and local events. So the hours of operation are 11 to 11, seven days a week. We like to be... Okay. This will call to order the June 15, 2026 meeting of the City of Clearwater Pension Trustees. We will to, if I can find the right sheet, here it is, item 2.1 on the agenda. Approve the minutes of the April 20, 2026 Pension Trustees meeting. Is there a motion to approve the minutes? So moved. Second. All those in favor? Aye. Opposed? Unanimous. To an item 3, today, are there any citizens here today to be heard regarding an issue with the pension trustees? That's not on today's agenda. Hearing and seeing none, we'll move to item 4.1. Except the January 1, 2026 annual actuary evaluation for the City of Clearwater's employee pension plan. Good afternoon. Monica Mitchell, Assistant Finance Director. This item is requesting your formal acceptance of the plan's annual actuarial valuation dated January 1, 2026. This valuation will guide us in determining the City's contribution to the employee's pension plan for the coming fiscal year. I would like to introduce the plan's actuary, Pete Strong, with Gabriel Rotor-Smith, who will review the actuarial report with you. Good afternoon, pension trustees, at least for 10 minutes or so. So this is probably the largest turnout that I've had for a pension trustees meeting. You're gaining popularity. It's all you. So for the record, my name's Pete Strong. I've been the actuary for the Clearwater pension plan for about 12 years now. And I'm happy to present the highlights of this year's valuation. I'll start with the demographics. We have 1,563 active members in the plan. Down slightly from last year, 1,572 were in the plan as of 1,125. Total covered payrolls, $128 million, up from $119 million. And so that translates to an average annual pay of about $82,000, up from $75,700 last year. There are 1,554 retirees receiving monthly checks from the pension plan. That's up a bit from $15,23 last year. The total annual pension payroll or pensions being paid out is $66.1 million versus $63.3 last year. And that means the average annual pension is about $42,500. Next slide. The principal assumptions that we're using, we've been using 6.5% net of investment fees as the investment return assumption for the plan. That's also the discount rate to discount all the future expected pension payouts. That's been in place since 2021. So it's been stable at that 6.5 level. We're using the same, we're required by the state to use the same mortality rates that the Florida retirement system uses. And those were updated last year based on the Pub 2010 tables. For an age 65 retiree, the life expectancy is 86.5 for males, 88.6 for females. And for hazardous police and fire, it's 85.4 and 88.2. The experience during 2025, we had a nice investment return on the market value of assets, 11.4%. We're smoothing returns over five years. So the smooth, because we're still phasing in 2022, which was a negative year, the five-year average is about 6.2. So on a smooth value basis, the actuarial value return was 6.27. The 10-year average return, though, is really good at 8.5%. So we're trending well ahead of the 6.5% assumption. Average salary increases last year were well ahead of expectations. We assumed salary increases varied by age and service and group. But the overall average expected rate was 5.74, and average actual salary increases were 11.56 on average. The mortality experience was lower than expected amongst retirees. We had a decrease in retiree payroll due to mortality of 845,000 versus 1.3 million expected. So people are living longer than they're expected to by the assumptions. Overall, that experience that I just went over led to a loss of 39 million. What that means is the unfunded liability or the total liability versus the assets climbed by 39 million versus what it was expected to do. Which is about 3%, 3.17% of the liability. The required contribution is up 12.35 million this year, which is 9.6% of covered pay. Last year's was 7.3 million, or 6.15. It went up quite a bit because of the experience we just went over, the 11.56% salary increases versus 5.74. And that experience was mainly driven by the police and firefighter salary increase experience. Those salary increases and mortality experience led to a $4.6 million increase in the required contribution. And the plan surplus, I mean, fortunately this plan is in a very positive position relative to assets relative to liabilities. But the surplus did decline by 39 million because of that experience. The plan does have a credit balance, which can be used to offset the required contribution. It's $44.2 million, so well ahead of the required 12 million. But the city does have a requirement to fund at least 7% of covered pay. So you could fund 7% of covered pay and use a portion of the credit balance to offset the rest. The liabilities, the total present value of all future benefits as of 1126 are $1.56 billion versus $1.47 billion last year. The accrued liability, which is based on service through 1126, is $1.29 billion versus $1.23 billion last year. And we calculate a low default, and this is basically an annuity purchase rate. If you bought liabilities or offset the liabilities to an insurance company and bought annuities for everybody at 4.9%, that liability would be $1.57 billion. So now the assets. The market value of assets is $1.44 billion, up from $1.34 billion last year. The smooth actuarial value is $1.39 billion versus $1.35 billion last year. And the actuarial smooth value minus the credit balance is $1.34. And that translates to very good funded ratios, 111.7% on a market value basis, 107.5% on a smooth actuarial value basis, 104% net of the credit balance. So in conclusion, the plan is in great shape. It's one of the only fully funded pension plans in the state that has over $250 million in assets. Amongst plans throughout Florida that have over $250 million, which is about 60 retirement plans for municipalities, Clearwater has the highest market value-based funded ratio at 111.7%. And to compare that to the Florida retirement system, which is the benchmark for pretty much all systems throughout Florida, they have an 82.2% funded ratio as of their last valuation, 87% on a market value basis. And they also have 150 times the assets of your plan at $212 billion. And they're using a higher investment return assumption of $6.7 as well. So this plan is in great shape. So I'll stop there and see if you have any questions. Any questions regarding it? Does anyone here from the public desire to speak to this gentleman? Yes, none. Just me, but I think maybe in the audience, I don't know. I think this is the best report you've ever given. So you're a great job. All right. Thank you very much. So is there a motion to approve? Move to approve agenda item 4.1. Second. All those in favor? Aye. Opposed? Unanimous. Thank you very much. That move to the agenda item 4.2. Approve investment advisory agreement with Dreyas Capital Management LLC for investments and the Dreyas Small Cap Growth Strategy Accounts and authorize the appropriate officials to execute soon. Good afternoon. Good afternoon. Monica Mitchell, Assistant Finance Director. This item is the plan's investment consultant, CapTrust Advisors, conducted a money manager search for domestic equity small cap growth money manager to replace Riverbridge, a money manager recommended for termination by the Pension Investment Committee. The committee unanimously recommends Dryhouse Capital Management LLC as the replacement. Mike Malone, the city's investment consultant with CapTrust Advisors, is here to answer any questions you may have. Does anyone here from the public desire to speak to this? We've seen none. Is there any trustees to say? I would like to know just a little bit about the reasoning behind this and why we're doing this. So if he could come up and just maybe add a little bit more context to it for the public's benefit. Good afternoon. Mike Malone with CapTrust. So the reason for this change is Riverbridge, the manager that we're going to be terminating, has actually been in the portfolio for about 17 years now. They've been a long-time good performer, but there have been some changes there, and performance really started to tail off about two years ago. Anyway, our research team recommended replacing them because they feel like there are some better options now. So Dryhouse is the new firm that our research team at CapTrust recommends using for small cap growth. So it's really just about optimizing performance. Thank you. Okay, anything else? If not, stir a motion. Motion to approve it in item 4.2. Second. All those in favor? Aye. All those unanimous. Thank you. To you, item 4.3. Approve the termination of small cap growth equity money manager, Riverbridge Partners, LLC, and authorize the appropriate officials at executing. This item is requesting approval to terminate an underperforming pension investments money manager. Riverbridge Partners was hired in 2010 as a domestic equity small cap growth money manager. Due to underperformance in recent years, the Pension Investment Committee is recommending termination at this time. And again, Mike Malone is here to answer questions. Do you want to hear from the public desire to speak for this agenda item? Hearing seeing none, is there any trustees' discussion? If not, is there a motion? Move to approve agenda item 4.3. Second. All those in favor? Aye. Opposed? Unanimous. Thank you. End item 4.4. Approve the new hives for acceptance into the pension plan as listed. Good afternoon. Tiffany Macris, Human Resources Director, available for any questions you may have. Okay. Anyone here from the public desire to speak for this agenda item? Hearing seeing none, is there any trustees' discussion? If not, is there a motion? Welcome to the team and move to approve agenda item 4.4. Second. All those in favor? Aye. Opposed? Unanimous. Agenda item 4.5. Approve the request of Salvatore Accomando, Police Department, Jonathan Capa, Police Department, Powell Dubinsky, Public Works Department, Keith Law Library Department, Robert Reedy, Public Utilities Department, Philip Ruppel, Public Utilities, and Anthony DiTesco from the Fire Department for regular pension as provided. Good afternoon. Tiffany Macris, Human Resources Director, available for any questions. Okay. So anyone here from the public desire to speak to agenda item 4.5? Hearing seeing none, is there any trustees' discussion? If not, is there a motion? Motion to approve agenda item 4.5. Second. All those in favor? Aye. Opposed? Unanimous. This time we'll move to item 5, director's report. If there's no director's report, then we will adjourn the June 15, 2026 meeting of the City of Clearwater Pension Trustees. And we will recess for about 5 minutes.