HomeMy WebLinkAbout2019-09-10 Meeting Minutes Finance Committee Meeting Commission Chamber - 9/10/2019
ATTENDANCE:
Present: Hons. Fennoy, Chairman; D. Williams, Vice
Chairman; Frantom, member.
Absent: Hon. Hardie Davis, Jr., Mayor; M. Williams, member.
FINANCE
1. Motion to approve the minutes of the Finance Committee held on August 27,
2019.
Item
Action:
Approved
Motions
Motion
Type Motion Text Made By Seconded By Motion
Result
Approve
Motion to
approve.
Motion Passes
3-0.
Commisioner
Sean Frantom
Commissioner
Dennis Williams Passes
2. Motion to approve Option 2 concerning the Guaranteed Minimum Interest
Rate (GMIR) for the fixed annuity investment option in the Nationwide Fixed
Annuity offered in the 457(b) Deferred Compensation Plan.
Item
Action:
Approved
Motions
Motion
Type Motion Text Made By Seconded By Motion
Result
Approve
Motion to
approve.
Motion Passes
3-0.
Commisioner
Sean Frantom
Commissioner
Dennis Williams Passes
www.augustaga.gov
Finance Committee Meeting
9/10/2019 1:20 PM
Attendance 9/10/19
Department:
Presenter:
Caption:
Background:
Analysis:
Financial Impact:
Alternatives:
Recommendation:
Funds are
Available in the
Following
Accounts:
REVIEWED AND APPROVED BY:
Finance Committee Meeting Commission Chamber
ATTENDANCE:
Present: Hons. Hardie Davis, Jr., Mayor; Fennoy, Chairman; D.
Williams, Vice Chairman; M. Williams and Frantom, members.
FINANCE
1. Motion to approve the minutes of the Finance Committee held on August Item13,2019. Action:
Rescheduled
Motions
fr'J:" Motion rext
Motion to refer this
item to the full Commissioner Commissioner
-fr
]T
- 812712019
Defer Commission with no Marion
recommendation. Williams
Motion Passes 4-0.
Made By Seconded By
Dennis
Williams
www.augustaga.qov
Motion
Result
Passes
Finance Committee Meeting
9/10/2019 1:20 PM
Minutes
Department:
Presenter:
Caption:Motion to approve the minutes of the Finance Committee held
on August 27, 2019.
Background:
Analysis:
Financial Impact:
Alternatives:
Recommendation:
Funds are
Available in the
Following
Accounts:
REVIEWED AND APPROVED BY:
Finance Committee Meeting
9/10/2019 1:20 PM
Nationwide 457(b) Fixed Annuity Interest Rate Change
Department:Finance and Human Resources
Presenter:
Caption:Motion to approve Option 2 concerning the Guaranteed
Minimum Interest Rate (GMIR) for the fixed annuity investment
option in the Nationwide Fixed Annuity offered in the 457(b)
Deferred Compensation Plan.
Background:One of the investment options for Augusta's employees who
participate in the voluntary 457(b) plan is a fixed annuity with a
guaranteed minimum interest rate. In the climate of declining
interest rates, Nationwide has not adjusted the rate downward
until now. Augusta must choose an option prior to September
30.
Analysis:Both options have the same schedule of interest rates but Option
Two allows the employee to transfers a larger percentage
annually out of the fixed annuity to other investment plans,
allowing more flexibility in their investment strategy.
Financial Impact:There is no cost to Augusta and no cost to the employee.
Alternatives:1) choose Option One which allows less flexibility to the
employee 2) do not choose an option, which will result in the
loss of the fixed annuity option for the employee. Neither of
these alternatives are preferred to Option Two
Recommendation:Select Option Two
Funds are
Available in the
Following
Accounts:
N/A
REVIEWED AND APPROVED BY:
Finance.
Law.
Administrator.
Clerk of Commission