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Palatka police pension posts strong returns; board adopts updated investment policy language
Summary
The City of Palatka Police Officers Retirement Plan reported strong quarterly and fiscal-year returns and approved updates to its investment policy, including state-mandated language restricting investments tied to entities that boycott Israel; trustees approved routine financial and administrative reports.
The City of Palatka Police Officers Retirement Plan board on Dec. 2 heard investment-manager presentations showing the plan outperformed its strategic model for the quarter and fiscal year, and the trustees approved the updated investment policy statement required by new state guidance.
Mitchell Brennan of Burgess Chambers & Associates told trustees the plan earned $868,000 for the quarter — a 6.1% net return — and about $1.6 million (11.9% net) for the fiscal year, placing the plan among the top-performing public pension funds in national comparisons. "Across the board, all market asset classes were up for the quarter and your plan earned $868,000 or 6.1% net of investment fees ahead of your strategic model," Brennan said.
Dwayne Madryn of Capital City Trust reviewed asset-allocation posture, saying the portfolio was "a little bit overweight in cash" and that he had moved $300,000 into Sawgrass to increase the bond allocation closer to policy targets. Madryn noted cash was earning roughly 3.8% and described the plan as a moderate-growth posture when private real estate and infrastructure allocations are included.
Brennan also briefed trustees on market drivers and risks, citing strong corporate earnings and concentrated gains in large technology companies as drivers of recent returns and highlighting downside risks including labor-market softness, inflation persistence and trade tensions with China.
On policy, Burgess recommended adding language to the plan's investment policy statement that reflects recent state legislation and is similar to the Protecting Florida's Investment Act (PFIA). "We did have to add some language to your investment policy statement per state directing. It's in regards to prohibiting investments, direct investments, and entities that boycott Israel," Brennan said. Trustees voted to accept Burgess's report and the red-line IPS update as presented.
The board also took routine administrative actions: approving prior meeting and workshop minutes, accepting the administrative report (including a SOC 1 Type 2 audit with no exceptions), approving benefit approvals, receiving and filing the financial statements and ratifying the warrant dated Dec. 2, 2025. Motions to accept the Capital City Trust and Burgess reports were moved and seconded by board members and approved by voice votes; no opposition was recorded on the audio.
Votes at a glance
- Approve prior meeting and workshop minutes: Motion by Chief Jason Shaw; second by Assistant Chief Matt Newcomb. Outcome: approved (voice vote; no opposition recorded). - Accept Capital City Trust report (policy review/allocation change to move $300,000 to Sawgrass): Motion by Assistant Chief Matt Newcomb; second by Chief Jason Shaw. Outcome: approved (voice vote). - Accept Burgess Chambers report and adopt red-line investment policy language (including anti-boycott Israel language per state direction): Motion by Tisha; second by Assistant Chief Matt Newcomb. Outcome: approved (voice vote). - Accept administrative report (SOC 1 Type 2 audit): Motion by Chief Jason Shaw; second by Assistant Chief Matt Newcomb. Outcome: approved (voice vote). - Accept benefit approvals: Motion by Chief Jason Shaw; second recorded. Outcome: approved (voice vote). - Receive and file financials and ratify warrant dated 12/02/2025: Motion by Assistant Chief Matt Newcomb; second by Chief Jason Shaw. Outcome: approved (voice vote).
Why it matters
The plan's quarterly and fiscal-year performance materially exceeded its strategic benchmarks, improving the plan's funded-position outlook and giving trustees options when reviewing asset allocation and manager workstreams. The state-driven IPS language change requires trustees to place the new restriction in the written policy; trustees accepted the change at this meeting, and staff will include the updated IPS in the biannual filing required by state statute.
What’s next
Trustees invited Sawgrass (the fixed-income manager) to present next quarter or at a future meeting if trustees request a fixed-income update. Staff will circulate the revised IPS and include it in the next required biannual filing.
