HomeMy WebLinkAboutMinutes - 01/03/2017 - Police Pension BoardPolice Pension Board of Trustees
Regular Meeting
January 3, 2017
1. A meeting of the City of McHenry Police Pension Board of Trustees was called to order at 3:30 PM in
the City of McHenry Council Chambers, 333 S. Green Street, McHenry, IL.
2. Roll Call: President Jeffrey Foerster, Marc Fisher, Ormel Prust and Jon Meyer. Absent: Kelly Ducak.
Others present: Jim Schmidt, LPL Financial; Gary Karshna, Capital Gains, Inc.; City Treasurer Carolyn
Lynch, and recording secretary Marci Geraghty.
3. Public Input
None.
4. Approval of Minutes
a) O. Prust made a motion, seconded by J. Meyer to approve the regular meeting minutes from
October 11, 2016, and November 1, 2016 special meeting minutes as presented and to hold them
for audit.
Ayes:
Nays:
Absent:
Abstain:
Motion carried
Fisher, Prust, Foerster, Meyer
None
Ducak
None
5. Semi-annual review of Executive Session Minutes
All Executive Session minutes have been released.
6. Report of Investments and Accounts:
a) Treasurer Report: None presented at this time.
b) Capital Gains Fixed Assets Investment Report: Fixed Assets Manager Gary Karshna presented the
investment report for the period ending November 30, 2016, at which time the Market Valuation
was $8,893,954 and Book Valuation $9,095,635.
Mr. Karshna reported the portfolio contains a diversified basket of corporate bonds (46%), taxable
general obligation municipal bonds 29%), US Treasury bonds (6%), US TIPS (6%) with the
balance invested in US Treasury STRIPS, Mortgage -backed securities and cash. The "barbell"
(short duration) strategy has been extremely effective in the current rising interest rate
environment. The portfolio continues to outperform both Barclays Intermediate Bond Indexes
with significantly less market risk, fiscal year to date.
c) Equities Investment Report: Jim Schmidt of LPL Financial presented the equities report for the
L-- valuation period of December 31, 2015 to December 30, 2016. For the period, Net Invested
Dollars was $6,784,420.77. Total Market Value of the funds for the same period was
$12,599,291.66 with a Performance Return of 9.11%. Mr. Schmidt noted from inception to
12/30/2016, the total Annualized Return is 12.21 %.
Mr. Schmidt also distributed an analysis prepared for the pension fund on the American Funds
portfolio.
7. Motion to approve Application for Retirement Benefits submitted by Commander Laura V. King.
M. Fisher made a motion, seconded by J. Meyer to approve the application for Retirement Benefits
submitted by Commander Laura V. King as presented.
Ayes: Fisher, Prust, Foerster, Meyer
Nays: None
Absent: Ducak
Abstain: None
Motion carried
8. Motion to approve request from former Officer Zachary Piekarski to transfer McHenry Police Pension
contributions totaling $15 909 66 to the Las Vas NV Metropolitan Police Department Deferred
Compensation Plan.
Motion by O. Prust, seconded by M. Fisher to approve the request from former Officer Zachary
Piekarski as presented.
Ayes: Prust, Fisher, Foerster, Meyer
Nays: None
Absent: Ducak
Abstain: None
Motion carried
9. Motion to approve Annual Pension Increase.
J. Meyer made a motion, seconded by O. Prust to approve annual pension increases as presented.
Ayes: Prust, Fisher, Foerster, Meyer
Nays: None
Absent: Ducak
Abstain: None
Motion carried
Trustee K. Ducak entered the meeting at 3:50 PM.
10. Unfinished Business:
a) Motion to approve payment of bills as presented.
O. Prust made a motion, seconded by M. Fisher to approve the reimbursement of $10.72 to Officer
Polidori.
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Ayes: Prust, Fisher, Foerster, Meyer, Ducak
`�- Nays: None
Absent: None
Abstain: None
Motion carried
b) Public Pension Training Update.
The Trustees have completed the 16-hour training requirements for the year.
c) Representatives from Lauterbach & Amen LLC will be invited to present the Actuary Report at the
next meeting of the board on April 24, 2017.
11. Adjournment
M. Fisher made a motion, seconded by O. Prust to adjourn the meeting at 4:00 PM.
Ayes:
Nays:
Absent:
Abstain:
Motion carried
Respectfully submitted,
Prust, Fisher, Foerster, Meyer, Ducak
None
None
None
Marci Geraghty, Recor g Sectary
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