R2015-125 AUTHORIZING P PROFESSIONAL SERVICE AGREEMENT Cliftonlarsonallen Wealth Advisors, LLC

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Item Coversheet Page 1 of 2 � Financial Management DATE: 10/27/2015 MEMO: Financial Management Department#2015-16 TO: Honorable Mayor Moore Wolfe and City Council Members FROM: Tim Gleason,City Manager Gregg D.Zientara,City Treasurer&Director of Finance SUBJECT: Resolution Authorizing City Manager to Execute Professional Service Engagement Agreement with CliftonLarsonAllen Wealth Advisors,LLC to Conduct an Independent Fiduciary Performance Review of the Firefighter and Police Pension Fund Investment Advisors SUMMARY RECOMMENDATION: City Administration recommends City Council approval of the attached Council Resolution to authorize the City Manager to enter into a professional service agreement with CliftonLarsonAllen, Wealth Advisors to conduct an independent fiduciary performance review of the Firefighter and Police Pension Fund Investment Advisors. The cost of the review is$14,000 for the Firefighter Fund and$14,000 for the Police Fund. CliftonLarsonAllen Wealth Advisors, LLC is an SEC-registered investment advisor, providing advisory services to clients, with primary emphasis on evaluation of investment stewardship,governance and cost control. BACKGROUND: The City of Decatur is statutorily responsible to provide monetary contributions funding the City's Firefighter and Police Pension Funds. The City of Decatur annual required contributions("ARC")to the Firefighter and Police Pension Funds are determined by analysis performed by an independent actuary in accordance with actuarial protocols compliant with State of Illinois and Government Accounting Standards Board("GASB")funding requirements. The ARC is determined by various factors including 1)investment return of fund assets invested,2)future expected pay increases of cunent active participants,and 3)life expectancy of active participants. A principal determinant of the ARC is the investment return of fund assets. As such, City Administration has a fiduciary responsibility in the evaluation of pension fund contributions to determine that the investment return of assets invested is at the maacimum level possible. It is for this reason that the City is requesting Council approval of this resolution to enable the independent review of the pension fund investment advisors performance. City Administration believes such review requested is a best practice process for periodic review by an independent advisor and is a normal and customary practice to ensure maximization of assets invested. Further maximization of investment returns on pension fund assets has the potential to limit City contributions from current cash sources in contributions to the pension funds. The City of Decatur has recently(last 3 years)funded the ARC through three(3)sources as follows: • Property tax levy, • Payment in Lieu of Taac(PILOT), • Personal Property Replacement Tax(PPRT) The principal funding source has historically been the property tax levy,with additional contributions funded by PILOT and PPRT. Fire Pension Funding Police Pension Funding 2016 2015 2014 2016 2015 2014 https://decatur.novusagenda.com/AgendaWeb/CoverSheet.aspx?ItemID=311 11/16/2015