OTHER POST-EMPLOYMENT BENEFITS

TRUST FUND AGENDA

Las Vegas Metropolitan Police Department

Headquarters Building B – Conference Center

400 S. Martin L. King Boulevard

Las Vegas, NV 89106

September 26, 2018, at 9:00 a.m.

All items on this agenda are scheduled for action unless specifically noted otherwise. Items listed on the

agenda may be taken out of order; two or more agenda items for consideration may be combined; and any

item on the agenda may be removed or related discussion may be delayed at any time.

1. Call To Order

2. Public Comments

This Is A Period Devoted To Comments By The General Public About Items On This

Agenda. If You Wish To Speak To The Committee About Items Within Its Jurisdiction,

But Not Appearing On This Agenda, You Must Wait Until The “Citizen Participation”

Period Listed At The End Of This Agenda. Comments Will Be Limited To Three Minutes.

Please Step Up To The Speaker’s Podium, State Which Agenda Item Or Items You Wish

To Comment On, Clearly State Your Name And Address, And Please Spell Your Last

Name For The Record. If Any Member Of The Committee Wishes To Extend The Length

Of A Presentation, This Will Be Done By The Chair Or The Committee By Majority Vote.

3. Approval Of Agenda With The Inclusion Of Any Emergency Items And Deletion Of Any

Items (For Possible Action)

4. Approve The Minutes Of May 24, 2018 (For Possible Action)

5. Informational Item Reporting On Net Assets And Changes In Net Assets For The Period Ended

June 30, 2018.

6. Informational Item Reporting On The Quarterly Investment Report From FTN Financial Main

Street Advisors, For The Period Ended June 30, 2018.

7. Ratify The Fiduciary Liability Insurance Proposal Agreement Between LVMPD OPEB Trust

Fund And Cragin & Pike, And Authorize The Chair Or His Designee To Sign Agreement Or

Take Other Action As Appropriate (For Possible Action)

8. Ratify The Directors’ & Officers’ Liability Insurance Proposal Agreement Between LVMPD

OPEB Trust Fund And Cragin & Pike, And Authorize The Chair Or His Designee To Sign

Agreement Or Take Other Action As Appropriate (For Possible Action)

OPEB Trust Fund Agenda Page 2 September 26, 2018

9. Citizen Participation

A Period Devoted To Comments By The General Public, If Any, And Discussion Of Those

Comments. Comments Are Limited To Three (3) Minutes. No Action May Be Taken Upon

A Matter Raised Under This Item Of The Agenda Until The Matter Itself Has Been

Specifically Included On An Agenda As An Item Upon Which Action Will Be Taken Per

N.R.S. 241.020.2(C)(3)

10. Next Meeting –November 28, 2018, 2:00 p.m. – Las Vegas Metropolitan Police Department

Headquarters Building B – Conference Center

11. Adjournment Of Meeting

THIS MEETING HAS BEEN PROPERLY NOTICED AND POSTED AT THE FOLLOWING LOCATIONS

Las Vegas Metropolitan Police Headquarters, 400 Martin L. King Boulevard, Principal Location, Building C First Floor

City Hall, 495 South Main Street, First Floor

State Government Office, 555 E Washington Avenue, First Floor

Clark County Government Center, 500 S. Grand Central Parkway, First Floor

Regional Justice Center, 200 Lewis Avenue, First Floor

OTHER POST-EMPLOYMENT BENEFITS TRUST FUND AGENDA

Las Vegas Metropolitan Police Department Headquarters Building B – Conference Center

400 S. Martin L. King Boulevard Las Vegas, NV 89106

May 24, 2018, at 8:30 a.m.

Committee Members Present Committee Members Absent Richard Hoggan (Chair) Jessica Colvin (Vice-Chair) Gary Ameling Karen Keller

1. Call To Order

Chair Hoggan called the meeting to order at 8:32 a.m.

2. Public CommentsThis Is A Period Devoted To Comments By The General Public About Items On This Agenda. If You Wish To Speak To The Committee About Items Within Its Jurisdiction, But Not Appearing On This Agenda, You Must Wait Until The “Citizen Participation” Period Listed At The End Of This Agenda. Comments Will Be Limited To Three Minutes. Please Step Up To The Speaker’s Podium, State Which Agenda Item Or Items You Wish To Comment On, Clearly State Your Name And Address, And Please Spell Your Last Name For The Record. If Any Member Of The Committee Wishes To Extend The Length Of A Presentation, This Will Be Done By The Chair Or The Committee By Majority Vote.

None

3. Approval Of Agenda With The Inclusion Of Any Emergency Items And Deletion OfAny Items (For Possible Action)

Motion: Trustee Keller moved to approve Vote: Unanimous approval

4. Approve The Minutes Of February 28, 2018 (For Possible Action)

Motion: Trustee Ameling moved to approve Vote: Unanimous approval

4

OPEB Trust Fund Agenda Page 2 May 24, 2018

5. Informational Item Reporting On Net Assets And Changes In Net Assets For The PeriodEnded March 31, 2018.

LVMPD Accounting Manager J. Wong briefed the board on the Trust’s financial statements. Due to the changes in reference to GASB 74 and 75, expenses will increase for the next fiscal year.

So noted.

6. Informational Item Reporting On The Quarterly Investment Report From FTN FinancialMain Street Advisors, For The Period Ended March 31, 2018.

President/Chief Investment Officer Rick Phillips with FTN Financial Main Street Advisors summarized for the committee the investments and market conditions related to the OPEB Trust Fund. Reports reviewed were Economic / Market Update dated 5/24/18 and the Quarterly Investment Report as of March 31, 2018.

So noted.

7. Approve The LVMPD OPEB Trust Fund FY18-19 Budget (For Possible Action)

CFO Hoggan briefed the board on the presented budget for Fiscal Year 2019. Assumption of investment income interest of 1% and an assumption of 3% for net appreciations were taken into consideration when creating the budget. A quote is still pending for costs associated with increasing Fiduciary Liability insurance and Directors’ and Officers’ liability insurance. The members discussed the options of increasing the insurance from a coverage of $5 million to $13 million. CFO Hoggan estimated $50,000 for insurance increases. The committee decided to not pursue an increase and keep the insurance coverage at $5 million.

Motion: Trustee Ameling moved to approve with the changes to the insurance costs reduced to $18,000

Vote: Unanimous approval

8. Discuss And Approve The Agreement For Professional Services Between LVMPDOPEB Trust Fund And Eide Bailly, LLP, And Authorize The Chair Or His Designee ToSign Agreement Or Take Other Action As Appropriate (For Possible Action)

CFO Hoggan briefed the board on the presented agreement. Costs were estimated between $15,000 to $20,000.

Motion: Trustee Keller moved to approve Vote: Unanimous approval

OPEB Trust Fund Agenda Page 3 May 24, 2018

9. Citizen ParticipationA Period Devoted To Comments By The General Public, If Any, And Discussion Of Those Comments. Comments Are Limited To Three (3) Minutes. No Action May Be Taken Upon A Matter Raised Under This Item Of The Agenda Until The Matter Itself Has Been Specifically Included On An Agenda As An Item Upon Which Action Will Be Taken Per N.R.S. 241.020.2(C)(3)

None.

10. Next Meeting – August 22, 2018, 2:00 p.m. – Las Vegas Metropolitan PoliceDepartment Headquarters Building B – Conference Center

Alternative meeting dates will be looked at as Trustees Ameling’s and Keller’s schedules would prevent them from attending the next meeting.

So noted.

11. Adjournment Of Meeting

Chair Hoggan adjourned the meeting at 9:15 a.m.

Meeting minutes completed by T. Wilson, PN 4870.

06/30/2018 6/30/2017

Additions to net assets attributed to:

    Contributions:

       Employer 4,000,000$           4,000,000$           

    Investment Income:

       Net appreciation (depreciation) in fair value

          of investments at:

              Quoted market price 536,859                478,722                

       Interest and dividends 221,926                133,397                

       Less Investment Fees (2,632) (1,258)

         Net Investment Income 756,153                610,863                

         Total Additions 4,756,153             4,610,863              

Deductions from net assets attributed to:

   Operating Expenses:

      Bank Fees 212 291

      Trust Fiduciary Insurance Premiums 18,397 22,059

      Investment Consulting Fees 5,000 7,500

      OPEB Attorney Fees 180 ‐

      Financial Audit Fees ‐ 12,900

          Total Deductions 23,789 42,750

Net Increase (Decrease) for the year 4,732,364             4,568,113              

Net Assets:

Beginning Net Assets Available 8,683,860             4,115,747              Total Net Assets Available 13,416,224$         8,683,860$           

LAS VEGAS METROPOLITAN POLICE DEPARTMENT

OPEB TRUST FUND

STATEMENTS OF CHANGES IN NET ASSETS

FOR THE PERIOD ENDED JUNE 30, 2018

(Unaudited)

5

06/30/2018 6/30/2017

ASSETS

Investments, at fair value:

Clark County Treasurer's Pool 20,850$              124,986$            

RBIF 13,323,644 8,538,355          

Total Investments 13,344,494 8,663,341          

Other Assets:

Cash (OPEB Checking Account) 73,192 23,232 

Total Assets 13,417,686 8,686,573          

LIABILITIES

Liabilities:

Payable‐Investment Consulting Fees 1,250 2,500 

Accrued Bank Fees 212 213 

Total Liabilities: 1,462 2,713 

Net Assets 13,416,224$      8,683,860$        

LAS VEGAS METROPOLITAN POLICE DEPARTMENT 

OPEB TRUST FUND

STATEMENTS OF NET ASSETS 

FOR THE PERIOD ENDED JUNE 30, 2018

(Unaudited)

Client Management Team

Rick Phillips President & Chief Investment Officer

702-575-6666

rick.phillips@ftnmainstreet.com

Tonya Dazzio Chief Operating & Compliance Officer

702-575-6592

tonya.dazzio@ftnmainstreet.com

Greg Balls, CFA Portfolio Manager & Analyst

702-575-6655

greg.balls@ftnmainstreet.com

Christine Wilson Operations Analyst

702-575-6640

christine.wilson@ftnmainstreet.com

Dan Rusk Portfolio Analyst

702-575-6633

daniel.rusk@ftnmainstreet.com

June 2018

10655 Park Run Drive Suite 120 | Las Vegas, NV 89144 | Toll Free 888.278.7350 | www.FTNMainStreet.com

Quarterly Investment Report

Las Vegas Metropolitan Police

Department OPEB Trust

5555

6

Portfolio Summary

Sector

Clark County Inv Pool (Fixed Income)

Cash Equivalents - RBIF

U.S. Bonds -RBIF

U.S. Stocks - RBIF

International Stocks - RBIF

Total

Market Value

Book Value

Variance

Total Gain/Loss %

Since Inception

Annualized Return

Since Inception

RBIF Allocations

U.S. Equity 49% 46.5%-54.0%

International Equity 21% 19.0%-23.5%

U.S. Bonds 30% 25%*

*Rebalance minimum

Note: First deposit into RBIF was 12/24/15

RangeTarget

12.53%

4.98%

Total Asset Allocation

11,911,612.55

1,492,502.02

Cost vs Market Value

13,404,114.57

162,634.82

132,363.63

Period ChangePrior Qtr Market ValueCurrent Market Value

2,712,534.54

13,404,114.57

64,606.32

1,139,280.14

3,437,455.46

6,080,509.30

2,549,899.72

13,271,750.94

55,410.42

6/30/2018 Metro OPEB Trust

(1,058,809.27)

316,562.12

656,565.53

120,016.74

80,470.87

3,754,017.58

6,737,074.84

Inv Pool- 0.6%Cash Eqv-RBIF0.9%

U.S. Stocks-RBIF 50.3%

Int'l Stocks-RBIF 20.2%

U.S. Bonds-RBIF 28.0%

Contribution History to OPEB Trust

Month FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26

Jul 333,333

Aug 333,333

Sep 333,333

Oct 333,333

Nov 333,333

Dec 650,000 333,333

Jan 650,000 655,000 333,333

Feb 650,000 655,000 333,333

Mar 487,500 655,000 333,333

Apr 487,500 655,000 333,333

May 487,500 655,000 333,333Jun 487,500 655,000 333,333

Total 3,900,000 3,930,000 4,000,000

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2027 Total

3.90 3.93 4.00 11.83

6/30/2018 Metro OPEB Trust

Fiscal Year Contributions to RBIF - Millions

Fiscal Year Contributions to RBIF

0

1

2

3

4

5

6

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

$ M

illio

ns

Market Recap

Quarterly Return:

Key Points

▪ Inflation concerns

▪ Stronger Earnings

▪ Moderated growth

Quarterly Return:

Key Points

▪ Weaker dollar

▪ Accommodative central banks

▪ Slower growth

Quarterly Return:

Key Points

▪ Higher inflation expectations

▪ Potential more aggressive Fed

▪ Improved GDP

Source: Bloomberg, FTN Main Street

(1.05%)

BAML US Treasury Bond Index (Domestic Fixed-Income)

0.22%

6/30/2018 Metro OPEB Trust

S&P 500 (Domestic Stocks)

3.43%

MSCI EAFE (International Stocks)

2400

2500

2600

2700

2800

2900

Mar-18 Apr-18 May-18 Jun-18

S&P 500 Index

1900

1950

2000

2050

2100

Mar-18 Apr-18 May-18 Jun-18

MSCI EAFE Index

2.5

2.7

2.9

3.1

24.20

24.40

24.60

24.80

Mar-18 Apr-18 May-18 Jun-18

5Y

r T-

No

te %

Yie

ld

Tre

asu

ry In

de

x

Treasury Aggregate Bond Index vs 5Yr T-NoteTsy Index 5Yr

Historical Sector Allocation - All Assets

Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18

CC Inv Pool 29.6% 27.0% 24.1% 21.3% 18.5% 15.9% 13.0% 10.9% 8.6% 6.1% 3.1% 0.6%

U.S. Stocks - RBIF 37.4% 38.8% 37.1% 39.0% 40.6% 41.7% 44.0% 45.1% 45.8% 46.9% 48.9% 50.3%

U.S. Bonds - RBIF 14.7% 15.1% 15.9% 23.0% 22.6% 23.9% 23.6% 24.8% 25.9% 26.2% 27.4% 28.0%

Int'l Stocks - RBIF 17.9% 18.8% 22.5% 16.2% 16.9% 17.9% 18.7% 18.9% 19.2% 20.1% 20.0% 20.2%

Cash Equiv - RBIF 0.4% 0.4% 0.3% 0.5% 1.3% 0.6% 0.7% 0.4% 0.5% 0.8% 0.7% 0.9%

Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Sector

6/30/2018 Metro OPEB Trust

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

55%

Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18

U.S. Stocks-RBIF

U.S. Bonds-RBIF

Int'l Stocks-RBIF

Cash Equv-RBIF

Inv Pool

Historical Sector Allocation - RBIF Assets

Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18

U.S. Stocks - RBIF 53.1% 53.1% 49.0% 49.5% 49.8% 49.6% 50.6% 50.6% 50.1% 49.9% 50.4% 50.6%

Int'l Stocks - RBIF 20.8% 20.7% 20.9% 20.6% 20.8% 21.2% 21.5% 21.2% 21.0% 21.4% 20.6% 20.4%

U.S. Bonds - RBIF 25.5% 25.7% 29.7% 29.2% 27.8% 28.5% 27.1% 27.8% 28.3% 27.9% 28.3% 28.2%

Cash Equiv - RBIF 0.6% 0.5% 0.4% 0.7% 1.6% 0.7% 0.8% 0.4% 0.5% 0.8% 0.7% 0.9%

Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

6/30/2018 Metro OPEB Trust

RBIF Sector

15%

20%

25%

30%

35%

40%

45%

50%

55%

Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18

Intl. Stock TargetRange

U.S. Bond Target Range

U.S. Stock Target Range

Cost vs Market ValueMetro OPEB Trust6/30/2018

$3.5

$4.5

$5.5

$6.5

$7.5

$8.5

$9.5

$10.5

$11.5

$12.5

$13.5

Mill

ion

s

Cost Value vs. Market Value

Market Value

Cost Value

-$500

-$400

-$300

-$200

-$100

$0

$100

$200

$300

$400

$500

Dec

-15

Jan

-16

Feb

-16

Mar

-16

Ap

r-1

6

May

-16

Jun

-16

Jul-

16

Au

g-1

6

Sep

-16

Oct

-16

No

v-1

6

Dec

-16

Jan

-17

Feb

-17

Mar

-17

Ap

r-1

7

May

-17

Jun

-17

Jul-

17

Au

g-1

7

Sep

-17

Oct

-17

No

v-1

7

Dec

-17

Jan

-18

Feb

-18

Mar

-18

Ap

r-1

8

May

-18

Jun

-18

Tho

usa

nd

s

Gain/Loss from Previous Month

Historical Total Rate of Return Performance - RBIF Investments Only

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun1.810% 0.462% 1.422% 1.533% 1.839% 1.081% 3.914% -3.496% -1.576% 0.530% 1.083% 0.063%1.666% 0.463% 1.279% 1.386% 1.744% 0.958% 3.463% -2.958% -1.377% 0.452% 0.952% 0.122%

0.144% -0.001% 0.143% 0.147% 0.095% 0.123% 0.451% -0.538% -0.199% 0.078% 0.131% -0.059%0.144% 0.144% 0.292% 0.449% 0.557% 0.694% 1.207% 0.565% 0.341% 0.426% 0.571% 0.507%

FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY273.112% 12.069% 8.814%1.507% 12.103% 8.307%

1.605% -0.033% 0.507%Benchmark: 49% S&P 500, 30% Barclays Aggregate Treasury Bond, 21% MSCI EAFE -- RBIF Returns are net of feesFY 2016 Started for the month ending January 2016

FTYD Variance

RBIF PortfolioBenchmark

Yearly Variance

Monthly Variance

6/30/2018 Metro OPEB Trust

RBIF PortfolioRBIF Benchmark

-1.00%

-0.50%

0.00%

0.50%

1.00%

1.50%

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Pe

rce

nt

Var

ian

ce

Monthly and FYTD Total Rate of Return Variance to Benchmark

Monthly FYTD

1.605%

-0.033%

0.507%

-1.50%

-1.00%

-0.50%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27

Pe

rce

nt

Var

ian

ce

Fiscal Year Total Rate of Return Variance to Benchmark

Historical Total Rate of Return Performance - RBIF Indexes

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun2.055% 0.304% 2.061% 2.332% 3.062% 1.104% 5.72% -3.69% -2.54% 0.384% 2.408% 0.616%

2.895% -0.004% 2.538% 1.529% 1.074% 1.629% 5.03% -4.48% -1.71% 2.373% -2.187% -1.182%

0.170% 1.050% -0.880% -0.260% 0.060% 0.250% -1.32% -0.70% 0.75% -0.780% 0.770% 0.230%

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun2.055% 2.365% 4.475% 6.912% 10.186% 11.402% 17.776% 13.434% 10.555% 10.979% 13.652% 14.351%

2.895% 2.891% 5.503% 7.116% 8.266% 10.029% 15.563% 10.383% 8.498% 11.073% 8.643% 7.360%

0.170% 1.222% 0.331% 0.070% 0.130% 0.381% -0.944% -1.638% -0.900% -1.673% -0.916% -0.688%

U.S. Stocks

Int'l Stocks

U.S. Bonds

6/30/2018 Metro OPEB Trust

U.S. Stocks

Int'l Stocks

U.S. Bonds

-6%

-4%

-2%

0%

2%

4%

6%

8%

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Pe

rce

nt

Var

ian

ce

Monthly Total Rate of ReturnUS Stocks

Int'l Stocks

US Bonds

-6%

-2%

2%

6%

10%

14%

18%

22%

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Pe

rce

nt

Var

ian

ce

Fiscal Year-To-Date Total Rate of ReturnUS Stocks

Int'l Stocks

US Bonds

Stock and Bond Indicies History

Data Souce: Bloomberg

6/30/2018 Metro OPEB Trust

700

1200

1700

2200

2700

3200D

ec-

99

Jun

-00

De

c-0

0

Jun

-01

De

c-0

1

Jun

-02

De

c-0

2

Jun

-03

De

c-0

3

Jun

-04

De

c-0

4

Jun

-05

De

c-0

5

Jun

-06

De

c-0

6

Jun

-07

De

c-0

7

Jun

-08

De

c-0

8

Jun

-09

De

c-0

9

Jun

-10

De

c-1

0

Jun

-11

De

c-1

1

Jun

-12

De

c-1

2

Jun

-13

De

c-1

3

Jun

-14

De

c-1

4

Jun

-15

De

c-1

5

Jun

-16

De

c-1

6

Jun

-17

De

c-1

7

Jun

-18

Ind

ex

Val

ue

S&P 500 and MSCI EAFE Indexes

S&P 500 EAFE

95

97

99

101

103

105

107

109

111

113

115

Sep

-03

Mar

-04

Sep

-04

Mar

-05

Sep

-05

Mar

-06

Sep

-06

Mar

-07

Sep

-07

Mar

-08

Sep

-08

Mar

-09

Sep

-09

Mar

-10

Sep

-10

Mar

-11

Sep

-11

Mar

-12

Sep

-12

Mar

-13

Sep

-13

Mar

-14

Sep

-14

Mar

-15

Sep

-15

Mar

-16

Sep

-16

Mar

-17

Sep

-17

Mar

-18

ETF

Pri

ce

Barclays Aggregate U.S. Bond ETF

Glossary and Disclosure

Report Source Data: RBIF Information:

RBIF: Bank of New York Mellon RBIF investments are overseen by Nevada PERS personnel

Benchmark: Bloomberg Investment object is to generate an 8% long-term return, exceeding CPI by 4.5%

Clark County Investment Pool: FTN Main Street Asset classes will be rebalanced according to range triggers shown on page 2

Rebalancing funding source/destination shall be those asset classes furthest away from their targets

Glossary:

S&P 500: S&P index capturing large-cap U.S. based companies

MSCI EAFE: MSCI index capturing large and mid-cap equities across developed markets in EAFE (Europe, Australasia, and the Far East), excluding the U.S. and Canada

Barclays Aggregate Treasury Index: ETF which seeks to track the investment results of an index composed of U.S. Treasury bonds and notes

Barclays Aggregate Bond: Barclays index which tracks an index of U.S. investment-grade government (including mortgage-backed) and corporate bonds

ETF: Exchange traded fund, is a marketable security that tracks an index, such as the Barclays Aggregate Bond Index

Investment Pool: Short-term, high quality fixed income pool overseen by the Clark County Treasurer

Although this information has been obtained from sources which we believe to be reliable, we do not guarantee its accuracy, and it may be incomplete or condensed. This is for informational purposes only and is not intended as an offer or solicitation with respect to any particular security, investment strategy, or investment product. All herein listed securities are subject to availability and change in price. Past performance is not indicative of future results. Ratings on all securities are subject to change.

FTN Financial Group, FTN Financial Capital Markets, and FTN Financial Portfolio Advisors are divisions of First Tennessee Bank National Association (FTB). FTN Financial Securities Corp (FFSC), FTN Financial Main Street Advisors, LLC, and FTN Financial Capital Assets Corporation are wholly owned subsidiaries of FTB. FFSC is a member of FINRA and SIPC—http://www.sipc.org/. FTN Financial Group, through FTB or its affiliates, offers investment products and services. FTN Financial is not registered as a Municipal Advisor.

This message is intended only for the use of the individual or entity to which it is addressed and may contain information that is privileged, confidential and exempt from disclosure under applicable law. If the reader of this message is not the intended recipient, employee or agent responsible to deliver it to the

September 26, 2018

Las Vegas Metropolitan Police

Department OPEB TrustEconomic/Market Update

1

U.S. Economic Indicator Heatmap

Source: Bloomberg

U.S. Economic Indicator HeatmapIndicator Sep 17 Oct 17 Nov 17 Dec 17 Jan 18 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Trends

Prob of Recession in 12 Months 10.3 9.0 11.0 11.5 10.4 9.1 10.8 11.2 11.1 12.5 13.6 14.6

GDP YOY % Chg* 2.3 2.5 2.5 2.5 2.6 2.6 2.6 2.9 2.9 2.9 2.8 2.8

Job Gains YOY % Chg 1.4 1.5 1.6 1.6 1.4 1.6 1.6 1.6 1.6 1.7 1.7 1.7

Core CPI YOY % Chg 1.7 1.8 1.7 1.8 1.8 1.8 2.1 2.1 2.2 2.3 2.4 2.4

Core PCE YOY % Chg 1.5 1.6 1.6 1.6 1.6 1.7 2.0 1.9 2.0 1.9 2.0 2.0

Avg Hourly Earnings YOY % Chg 2.8 2.3 2.5 2.7 2.8 2.6 2.6 2.6 2.8 2.7 2.7 2.7

ISM Service 59.4 59.8 57.3 56.0 59.9 59.5 58.8 56.8 58.6 59.1 55.7 58.5

ISM Manufacturing 60.2 58.5 58.2 59.3 59.1 60.8 59.3 57.3 58.7 60.2 58.1 61.3

S&P 500 YOY % Chg 16.2 21.1 20.4 19.4 23.9 14.8 11.8 11.1 12.2 12.2 14.0 17.4

Commodities YOY % Chg -1.7 0.7 -0.1 0.7 2.8 1.7 5.1 11.1 12.8 14.7 6.5 6.7

Retail Sales YOY % Chg 5.2 5.3 6.1 5.3 3.9 4.5 5.1 4.8 6.4 6.1 6.4 6.4

Total Vehical Sales YOY 4.6 1.0 -0.9 -1.6 -1.6 -2.1 4.1 0.6 0.7 4.8 -0.1 3.6

Consumer Confidence % Chg 16.5 25.2 17.6 8.6 11.4 12.0 1.7 5.2 9.5 8.4 6.6 10.8

Existing Home Sales YOY % Chg -1.8 -0.9 2.7 0.7 -4.8 1.1 -1.2 -1.6 -3.4 -2.2 -1.5 -1.5

S&P Home Price YOY % Chg 6.1 6.3 6.4 6.3 6.4 6.7 6.8 6.7 6.5 6.3 6.3 6.3

Fed Funds Rate YOY BP Chng 75 75 75 75 75 75 75 75 75 75 75 75

10 Yr Treasury Rate YOY BP Chg 74 55 3 -4 25 47 35 67 66 56 67 74

1 Yr Treasury Rate YOY BP Chg 70 78 83 92 112 124 107 118 107 108 120 123

10Yr - 1Yr Tsy Spread BP Chg 104 96 80 67 82 80 66 72 64 55 55 41

*Jul -Aug 2018 GDP Estimated Positive for Economic Growth Neutral for Economic Growth Negative for Economic Growth

2

Fed Probability of Recession in 12 Months Index

Source: Bloomberg

3

GDP: Strong 2nd Quarter…GDP Projected to Slow

Source: Bloomberg

Fed

: “4

20

15

Hik

es”

Fed

: “4

20

16

Hik

es”

4

GDP: A Record Was Broken

Source: Bloomberg

5

Inflation…Finally At Target

Source: Bloomberg

6

Phillips Curve Not Working

Source: FTN

Wage growth is unusually sticky in this business cycle

7

US Employment Growth: Strong, But Slowing

Source: Bloomberg

A Record 95 Consecutive Months of Job Growth…Previous Record is 48 Months

8

Consumer Strong…But There are Some Mixed Signals

9

Emerging Market Stocks Aren’t Happy Campers

Source: Bloomberg

Pe

rce

nt

Ret

urn

S&P 500

Emerging Mkts

20

% D

iffe

ren

ce

10

Is Emerging Market Debt Going to Be a Problem?

Source: FTN

11

Defaults Rattle Chinese Stocks

Source: FTN

12

Fed Funds Hike Probabilities

Source: CBOE

13

Fed Funds Futures vs. Fed Dots

Source: Bloomberg

14

US 2Yr Hits Highest Rate Since 2018

Source: FTN

But there are still lots of negative nominal and real rates around the world

15

US Treasury and Fed Funds

Source: Bloomberg

Emerging Mkt Worries

30’ish BP Range for 6 Months

16

10Yr-1Yr Treasury Spread: Recession Predictor

Source: Bloomberg

17

Stocks Have Done Very Well

18

Will Stocks Set a New Record?

19

Nevada PERS Returns…Solid

20

Disclosure

The views expressed herein are those of the speaker and do not necessarily represent the views of FTN Financial Main Street

Advisors, LLC or its affiliates. Views are based on data available at the time of this presentation and are subject to change based

on market and other conditions. We cannot guarantee the accuracy or completeness of any statements or data. The information

provided does not constitute investment advice and it should not be relied upon as such. It is not a solicitation to with respect to

an investment strategy or investment product and is not a solicitation to buy and/or an offer to sell securities. It does not take into

account any investor’s particular investment objectives, strategies, tax status, or investment horizons. All material has been

obtained from sources believed to be reliable, but we make no representation or warranty as to its accuracy and you should not

place any reliance on this information. Past performance is no guarantee of future results.

FTN Financial Group, FTN Financial Capital Markets, and FTN Financial Portfolio Advisors are divisions of First Tennessee Bank

National Association (FTB). FTN Financial Securities Corp (FFSC), FTN Financial Main Street Advisors, LLC, and FTN Financial

Capital Assets Corporation are wholly owned subsidiaries of FTB. FFSC is a member of FINRA and SIPC—http://www.sipc.org/.

FTN Financial Group, through FTB or its affiliates, offers investment products and services. FTN Financial is not registered as a

Municipal Advisor.

1

SUMMARY OF INSURANCE

FIDUCIARY LIABILITY

06-02-2018 TO 06-02-2019

Prepared for

LAS VEGAS METROPOLITAN DEPARTMENT

OPEB TRUST FUND

Presented by

Scott T. Kerestesi

Cragin & Pike

2603 W. Charleston Blvd.

Las Vegas, NV 89102

(702) 877-1111

7

2

ACCOUNT MANAGEMENT TEAM

Cragin & Pike

2603 W. Charleston Blvd., Las Vegas, NV 89102

www.cragin-pike.com

(702)877-1111 FAX (702) 258-3394

No matter how comprehensive or competitively priced your insurance program is, you still need

people to provide ongoing service. The individuals who make up your account management team

include some of the industry’s finest professionals. Our insurance staff knows that you expect and

deserve the best. These are the individuals who will be servicing your account:

INSURANCE QUESTIONS or POLICY CHANGES

In the event you have a question on insurance coverage

provided by your current insurance program, possible

future or projected business endeavors, or if you need to

make a policy change or request a certificate of insurance,

you should contact your producer, or: Florine Adams

Account Manager

CLAIMS

In the event you have a claim which needs

to be reported to your insurance company, Donamia Robinson

you should contact: Claim Representative

BONDS

In the event you require a bond for a specific

project or service, you should contact: Rena Casprowitz

Bond Representative

LOSS CONTROL

In the event you have a question or need assistance with loss Steve Walker

control, you should contact your producer, or: Brad Nolan

ACCOUNT EXECUTIVE Scott T. Kerestesi

3

CRAGIN & PIKE

As an independent insurance agency, Cragin & Pike represents numerous major insurance companies. A

diverse selection of products is available to our clients. As part of our comprehensive range of client

services, we offer Loss Control and Risk Management services tailored to the specific needs of our

Commercial customers.

In preparing your proposal, we have worked hard to build an insurance program that delivers superior

protection at a reasonable cost. Our recommendations are based on careful analysis of exposures unique to

your operation and our knowledge of the quality insurance products available in today’s marketplace.

We appreciate the opportunity to evaluate your company’s needs and provide a sound, competitively priced,

comprehensive insurance program. We look forward to working with you in the future.

All possible care was taken in preparing this brief description of the policy coverages, however it is not a

legal contract. Please refer to the actual policies for contract language relating to complete terms,

conditions, limitations, definitions, and exclusions. If there is any discrepancy between the policy and this

description, the provisions of the policy shall determine coverage. Specimen copies of all policies are

available for review prior to the binding of coverage.

In evaluating your exposures to loss, we have been dependent upon information provided by you. If there

are other areas that need to be evaluated prior to binding of coverage, please bring them to our attention.

Should any of your business operations or exposures to loss change after coverage is bound, please let us

know promptly so proper coverage(s) can be discussed.

Cragin & Pike retains copies of insurance policies as required by Nevada Revised Statutes. Depending on

the type of policy, this requirement can be from three (3) to five (5) years.

As the Insured policy holder, you should determine how long you should retain your original insurance

policies. Cragin & Pike assumes no responsibility to keep records longer than required by statute.

In addition to a commission for the sale of insurance policies, this agency may be eligible for

contingent/profit sharing income based upon the amount and profitability of all business placed with a

particular insurance company.

Consult the policy for definitions and limitations. The terms of this summary do not represent contract

terms. The policy is subject to company underwriting practices.

4

INSURANCE COMPANIES

Listed below are the insurance companies currently providing your insurance coverage:

Type of Insurance Insurance Company Policy Number Policy Period

Fiduciary Liability Hudson Insurance Co SFD3121067702 06/02/2018 to 06/02/2019

5

WHO IS INSURED

Important information about Named Insureds

The first named insured is given certain rights and responsibilities by the policy contract language.

If more than one insured is named, the one intended to receive these rights and responsibilities

should be named first.

All legal entities or individuals owning property or involved in the business operations to be

insured must be specifically named to be covered. All changes in ownership must be reported to

us immediately. The coverages outlined in the proposal apply only to those entities identified

below.

First Named Insured: Las Vegas Metropolitan Police Department

OPEB Trust Fund

Other Named Insureds:

6

FIDUCIARY INSURANCE

This insurance provides protection against loss as a result of acts or omissions of individuals who have

discretionary responsibility involving administration of employee benefits, a designated pension or profit

sharing plan, or a newly created plan, subject to all policy terms, conditions, and exclusions.

PLAN (or PLANS): Las Vegas Metropolitan Police Department OPEB Trust Fund

LIMITS OF LIABILITY:

(a) Aggregate Limit – Aggregate limit of liability for all Loss under this policy,

including Claim Expenses $ 5,000,000

(b) Trustee Claim Expenses Sublimit – Aggregate limit of liability for all Claims

Expenses in connection with Claims solely alleging Wrongful Acts as defined in

Section II.R(3) of the policy (included within and not in addition to the maximum

aggregate limit of liability above)

Not applicable

for

governmental

plan

(c) Voluntary Compliance Program Expenditures Sublimit – Aggregate limit of

liability for all Voluntary Compliance Program Expenditures(included within and not

in addition to the maximum aggregate limit of liability above)

$ 100,000

(d) ERISA 502(c) Civil Penalties Sublimit – Aggregate limit of Liability for all Loss in

the form of civil fines or ay excise tax imposed pursuant to Section 502(c) of ERISA and

the Pension Protection Act of 2006 (included within and not in addition to the maximum

aggregate limit of liability above)

Not applicable

for

governmental

plan

(e) HIPAA and HITECH Fines & Penalties Sublimit – Aggregate limit of liability for

all Loss in the form of civil fines and penalties imposed pursuant to the Health Insurance

Portability and Accountability Act of 1996 (HIPAA) and the HITECH Act of 2009

(included within and not in addition to the maximum aggregate limit of liability above)

$ 100,000

(f) PPACA Fines & Penalties Sublimit – Aggregate limit of liability for all Loss in the

form of civil fines and penalties imposed pursuant to the Patient Protection and

Affordable Care Act (PPACA) (included within and not in addition to the maximum

aggregate limit of liability above)

$ 100,000

(g) Section 4975 Penalties Sublimit – Aggregate limit of liability for all Loss in the

form of excise taxes imposed pursuant of Section 4975 of the Internal Revenue Code

(included within and not in addition to the maximum aggregate limit of liability above)

$ 100,000

(h) ERISA Section 502(a) (3) Relief Sublimit – Aggregate limit of liability for all Loss

in the form of equitable relief imposed pursuant to Section 502 (a)(3) of ERISA

(included within and not in addition to the maximum aggregate limit of liability above)

Not applicable

for government

plan

(i)Benefit Overpayment Sublimit – Aggregate limit of liability for all benefit

overpayments as defined in Section II.H(5) of the policy (included within and not in

addition to the maximum aggregate limit of liability above)

$ 50,000

(j) Cyber Essentials – Aggregate limit of liability for Content Restoration

Expenditures and Crisis Notification Expenditures as defined in Section II.E and II.G

of the policy (included within and not in addition to the maximum aggregate limit of

liability above)

$ 50,000

7

FIDUCIARY INSURANCE, CONTINUED

RETENTION (Each Claim): $ 100,000

PENDING or PRIOR PROCEEDING DATE: 06/02/2016

EXTENDED REPORTING PERIOD: Twelve (12) Month extended reporting period is

available for 100% of the total annual premium, subject

to Section IV.B of the policy

8

PREMIUM SUMMARY

Insurance Coverage

Estimated

Annual Premium

FIDUCIARY LIABILITY $ 9,897.00

TERRORISM

9

TERRORISM

On November 26, 2002, President Bush signed into law the Terrorism Risk Insurance Act of

2002, which requires insurers to make coverage for acts of international terrorism available to

existing and future commercial policyholders. The Act covers all lines of insurance, except

Personal Lines, Multi-Peril Crop and Medical Malpractice. (International “certified” terrorism is

defined as acts committed against the U. S. on behalf of any foreign person or interest. i.e. the

World Trade Center destruction. Domestic “non-certified” terrorism acts are not covered by the

act, i.e. the Oklahoma City bombing.) Under the new law, insurers remain directly and primarily

responsible for future terrorism losses. However, the federal government will now step in to

share in the cost of catastrophic terrorist events.

The law provides that insurers may charge current and future policyholders a premium for

coverage for international terrorist acts, but it provides those policyholders (other than workers’

compensation insureds) with a means to opt out of—and not pay any additional premium for—

that coverage. Also, as of November 26, terrorism exclusions in existing policies are deemed

null and void to the extent they apply to acts of international (as opposed to domestic) terrorism.

Exclusions can be reinstated, however, at the policyholder’s direction, or in the event the

policyholder fails to pay any additional premium charge assessed by the insurer.

The Act requires that an insurance company clearly and conspicuously disclose, during the quote

process and on the policy itself the premium associated with coverage for terrorist acts. With

respect to outstanding quotes and policies issued in the immediate future, an insurance company

will notify those applicants and policyholders of any applicable terrorism premium and of their

right to reject terrorism coverage. Even if the terrorism premium is $0.00, it will be disclosed.

For additional information about the Terrorism Risk Insurance Act of 2002, you can visit the

National Association of Insurance Commissioners’ website at www.naic.org or the U. S.

Treasury Department website at www.treasury.gov\trip.

10

PRIVACY POLICY NOTICE

Privacy Policy Notice

(as of July 1, 2001)

Title V of the Gramm-Leach-Bliley Act (GLBA) generally prohibits any financial

institution, directly or through it affiliates, from sharing nonpublic personal information

about you with a non-affiliated third party unless the institution provides you with a notice

of its privacy policies and practices, such as the type of information that it collects about

you and the categories of persons or entities to whom it may be disclosed. In compliance

with GLBA, we are providing you with this document, which notifies you of the privacy

policies and practices of Cragin & Pike, Inc.

Collecting Information:

We collect nonpublic personal information about you from the following sources:

• Information we receive from you on applications or other forms

• Information about your transactions with us, our affiliates or others

• Information we receive from a consumer reporting agency

Disclosing Information:

We do not disclose any nonpublic personal information about our customers or

former customers to anyone, except as permitted by law.

Confidentiality and Security

We restrict access to nonpublic personal information about you to those employees who

need to know that information to provide products or services to you. We maintain

physical electronic and procedural safeguards that comply with federal regulations to

guard your nonpublic personal information.

Changes in Privacy Policy

We may choose to modify this policy at any time. If we make material changes,

we will provide current customers with a revised notice that describes our new practices

on an annual basis.

1

SUMMARY OF INSURANCE

DIRECTORS’ & OFFICERS’ LIABILITY

06-02-2018 TO 06-02-2019

Prepared for

LAS VEGAS METROPOLITAN POLICE

DEPARTMENT OPEB TRUST FUND

Presented by

Scott Kerestesi

Cragin & Pike

2603 W. Charleston Blvd.

Las Vegas, NV 89102

(702) 877-1111

8

2

ACCOUNT MANAGEMENT TEAM

Cragin & Pike

2603 W. Charleston Blvd., Las Vegas, NV 89102

www.cragin-pike.com

(702)877-1111 FAX (702) 258-3394

No matter how comprehensive or competitively priced your insurance program is, you still need

people to provide ongoing service. The individuals who make up your account management team

include some of the industry’s finest professionals. Our insurance staff knows that you expect and

deserve the best. These are the individuals who will be servicing your account:

INSURANCE QUESTIONS or POLICY CHANGES

In the event you have a question on insurance coverage

provided by your current insurance program, possible

future or projected business endeavors, or if you need to

make a policy change or request a certificate of insurance, Florine Adams

you should contact your producer, or: Account Manager

CLAIMS

In the event you have a claim which needs

to be reported to your insurance company, Donamia Robinson

you should contact: Claim Representative

BONDS

In the event you require a bond for a specific Rena Casprowitz

project or service, you should contact: Bond Representative

LOSS CONTROL

In the event you have a question or need assistance with loss Steve Walker

control, you should contact your producer, or: Brad Nolan

ACCOUNT EXECUTIVE Scott Kerestesi

3

CRAGIN & PIKE

As an independent insurance agency, Cragin & Pike represents numerous major insurance companies. A

diverse selection of products is available to our clients. As part of our comprehensive range of client

services, we offer Loss Control and Risk Management services tailored to the specific needs of our

Commercial customers.

In preparing your proposal, we have worked hard to build an insurance program that delivers superior

protection at a reasonable cost. Our recommendations are based on careful analysis of exposures unique to

your operation and our knowledge of the quality insurance products available in today’s marketplace.

We appreciate the opportunity to evaluate your company’s needs and provide a sound, competitively priced,

comprehensive insurance program. We look forward to working with you in the future.

All possible care was taken in preparing this brief description of the policy coverages, however it is not a

legal contract. Please refer to the actual policies for contract language relating to complete terms,

conditions, limitations, definitions, and exclusions. If there is any discrepancy between the policy and this

description, the provisions of the policy shall determine coverage. Specimen copies of all policies are

available for review prior to the binding of coverage.

In evaluating your exposures to loss, we have been dependent upon information provided by you. If there

are other areas that need to be evaluated prior to binding of coverage, please bring them to our attention.

Should any of your business operations or exposures to loss change after coverage is bound, please let us

know promptly so proper coverage(s) can be discussed.

Cragin & Pike retains copies of insurance policies as required by Nevada Revised Statutes. Depending on

the type of policy, this requirement can be from three (3) to five (5) years.

As the Insured policy holder, you should determine how long you should retain your original insurance

policies. Cragin & Pike assumes no responsibility to keep records longer than required by statute.

In addition to a commission for the sale of insurance policies, this agency may be eligible for

contingent/profit sharing income based upon the amount and profitability of all business placed with a

particular insurance company.

Consult the policy for definitions and limitations. The terms of this summary do not represent contract

terms. The policy is subject to company underwriting practices.

4

INSURANCE COMPANIES

Listed below are the insurance companies currently providing your insurance coverage:

Type of

Insurance

Insurance

Company

Policy

Number

Policy

Period

Directors’ & Officers Hudson Insurance Co SHP3121017002 06-02-2018 to 06-02-2019

5

DIRECTORS & OFFICERS LIABILITY INSURANCE

This insurance provides protection for loss which the insured is legally obligated to pay, as a result of

wrongful acts committed, attempted, or allegedly committed or attempted by an Insured Person subject to

all policy terms, conditions, and exclusions.

INSURED PERSONS: Any person who has been, now is, or shall become a duly

elected director or a duly elected or appointed officer,

Executive Director or employee of the Insured

Organization.

LIMIT OF LIABILITY: $5,000,000 Aggregate Limit of Liability for all Loss

$5,000,000 Maximum Aggregate Limit of Liability

RETENTION: $0.00 each Claim under Insuring Agreement I (A)

$10,000 each Claim under Insuring Agreement I (B)

$10,000 each Claim under Insuring Agreement I (C)

INSURANCE: DIRECTORS & OFFICERS LIABILITY,

CLAIMS MADE FORM

PRIOR OR PENDING DATE: 11/21/2016

COVERAGE FORM: HFP-NPGTC-001 (12/09) – (Not-For-Profit Defender Policy

Form)

DEFENSE COSTS: Within the limit of liability

DISCOVERY PERIOD: Duration: 1 Year

Premium: 75%

EXCLUSIONS: Refer to Policy for a complete list

ERISA or any Similar Act

Bodily Injury/Property Damage

Pollutants

ENDORSEMENTS: NP-ST-AM.19 Defender Nevada Changes (GTC) Endorsement

HFP-NP-AM.99Coordination of Insurer Limits of Liability

Endorsement

CLAIMS MADE FORM: Claims-Made coverage requires that the wrongful act giving

rise to the claim must first be made during the policy period

and be reported to the insurance company during the policy

period.

PREMIUM: $8,500.00

6

PRIVACY POLICY NOTICE

Privacy Policy Notice

(as of July 1, 2001)

Title V of the Gramm-Leach-Bliley Act (GLBA) generally prohibits any financial

institution, directly or through it affiliates, from sharing nonpublic personal information

about you with a non-affiliated third party unless the institution provides you with a notice

of its privacy policies and practices, such as the type of information that it collects about

you and the categories of persons or entities to whom it may be disclosed. In compliance

with GLBA, we are providing you with this document, which notifies you of the privacy

policies and practices of Cragin & Pike, Inc.

Collecting Information:

We collect nonpublic personal information about you from the following sources:

• Information we receive from you on applications or other forms

• Information about your transactions with us, our affiliates or others

• Information we receive from a consumer reporting agency

Disclosing Information:

We do not disclose any nonpublic personal information about our customers or

former customers to anyone, except as permitted by law.

Confidentiality and Security

We restrict access to nonpublic personal information about you to those employees who

need to know that information to provide products or services to you. We maintain

physical electronic and procedural safeguards that comply with federal regulations to

guard your nonpublic personal information.

Changes in Privacy Policy

We may choose to modify this policy at any time. If we make material changes,

we will provide current customers with a revised notice that describes our new practices

on an annual basis.