Protect a liquid reserve now and authorize an orderly property and private-asset sale process. The December 31, 2015 asset snapshot is not a November 2016 cash balance.
Evidence: DP15, 2015 audited report; transmittal and auditor dated July 21, 2016. Decision is stated without knowledge of later events.
December 31, 2015 fiduciary cash and cash equivalents $77,072,359 plus short-term investments $29,986,714. The proxy ignores restrictions, settlement, operations and collateral needs. Verify unrestricted liquidity before any spending decision.
Closing combined and supplemental DROP account balances. On retirement, a member can withdraw amounts along with monthly benefits. Eligibility and timing matter; the aggregate is neither a bank deposit pool nor a claim that every member can withdraw it all at once.
Call: ring-fence an operational reserve and commission a ranked sale book now. Trigger a trustee liquidity review and staged sale authorization when projected near-term benefit and eligible DROP requests plus debt service and potential collateral needs exceed verified unrestricted liquid assets, or when a monitored DROP stress fraction exceeds the cash-plus-short-term proxy. Fund required distributions; do not presume power to suspend them.
These comparable categories use the fiduciary investment values at December 31, 2015. Bars start at zero, are sorted high to low, and show asset value in dollars, not immediately spendable cash. Real estate is a component of real assets, so it is not a seventh additive bar.
The consultant presents global real estate at $706,930,030 (23.48%), global private equity at $461,964,044 (15.34%), and cash and equivalents at $82,122,733 (2.73%). Do not replace audited cash with consultant cash or assert equality: the consultant flags a one-quarter lag and cash-flow adjustments for private investments.
The 2016 real-estate target is 12%, range 10% to 25%. Audited real estate is 11.0541 percentage points above target; the consultant's 23.48% is its own basis. The p. 6 narrative also reports 23.48% against the 12% target. This is an allocation warning, not a parcel-level cash valuation.
Apply a hypothetical fraction of the December 2015 DROP account balance, not a probability or a forecast. Leave the sourced December 2015 baseline at $107,059,073. This comparison does not assume that everyone is eligible to withdraw now.
0% to 25%, in 5-point steps; arithmetic only. An uncovered amount is a planning signal, not an actual deficit or permission to delay benefits.
$0 uncovered; proxy remaining $107,059,073.
$0 uncovered; proxy remaining $31,228,323.
$44,602,427 uncovered.
$272,094,677 uncovered.
Values below are dollars, including the converted DROP rows. In the source DROP table alone, entries are printed in thousands of dollars: multiply each table entry by 1,000. Parentheses indicate distributions or a negative investment position. The account balances are not deposits. Figures here do not add across unlike accounting bases.
DP15, fiduciary p. 24; investment detail p. 35; DROP p. 44; consultant p. 63; targets p. 49
Average monthly benefit payments in 2015 were $17,100,000; twelve times this is an illustrative $205,200,000 annualized run rate, not actual annual benefit outflow. Benefits and DROP distributions can overlap in reporting, so do not add these lines into a fabricated annual total. Notes payable were $235,314,513. Potential collateral demands and debt maturities could absorb liquidity before sale proceeds arrive.
The transmittal reported a $396,000,000 2015 net-position decline linked primarily to real estate and private equity. Its rounded DROP commentary gave $1,520,000,000 for 2015 and $1,420,000,000 for 2014; the precise, unit-converted table governs this stress. Distributions include lump sums, monthly retirement/disability/survivor payments and DROP installments.
DP15, discussion pp. 19-20; transmittal p. 4; fiduciary p. 24
No cap rate, parcel income, appraisal haircut, exact 2016 cash, withdrawal date, sale calendar, guaranteed credit or run probability is assumed.