HomeMy WebLinkAboutMinutes - 04/12/2016 - Police Pension BoardPolice Pension Board of Trustees
Regular Meeting
April 12, 2016
1. Call to Order. A meeting of the City of McHenry Police Pension Board of Trustees was called to order
at 3:30 PM
2. Roll Call: President Jeffrey Foerster, Marc Fisher, Kelly Ducak, Ormel Prust, Jon Meyer. Absent: None
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 M. Fisher to approve meeting minutes from January 12, 2016
as presented and to hold them for audit.
Ayes: Ducak, Fisher, Prust, Foerster, Meyer
Nays: None
Absent: None
Abstain: None
Motion carried
5. Report of Investments and Accounts:
a) Treasurer Report: C. Lynch presented the Treasure's Report. As of March 31, 2016, total cash
and investments were $20,780,032.43. Ms. Lynch reported the fund will require $100,000
deposit to the checking account to pay bills. Mr. Karshna said, and the board agreed, to use
captured profits from bond sales.
J. Meyer made a motion, seconded by M. Fisher to approve and hold for audit the Treasure
Report for the period ending March 31, 2016 as presented.
Ayes:
Ducak, Fisher, Prust, Foerster, Meyer
Nays:
None
Absent:
None
Abstain:
None
Motion carried
Motion carried
b) Capital Gains Fixed Assets Investment Report: Fixed Assets Manager Gary Karshna presented the
investment report for the period ending March 31, 2016 at which time the Market Valuation was
$8,992,596 and Book Valuation $9,215,556. Over the past 12 years, the Police Pension bond
portfolio has outperformed the bond benchmark with significantly less market risk. The largest
holdings are corporate bonds at 52%, taxable IL Muni bonds at 26%, and energy at less than 10%.
c) Equities Investment Report: Jim Schmidt of LPL Financial presented the equities report for the
valuation as of April 11, 2016. He stated investment gains/losses for that period were at 0%. He is
hopeful that in late April earnings will be better than expected. The market is waiting to see what
will happen with interest rates. Total equities market value as of April 11, 2016 was
$11,528,861.44.
d) Capture of Profits from Investments. M. Fisher made a motion, seconded by K. Ducak to approve
the capture of $100,000 in profits from fixed assets and deposit funds into the Pension Fund
checking account for the purpose of paying bills.
Ayes: Ducak, Fisher, Prust, Foerster, Meyer
Nays: None
Absent: None
Abstain: None
Motion carried
e) Semi-annual Review of Police Pension Fund Investment Policy. The board reviewed the policy
and recommended no changes.
6. Unfinished Business:
a) Payment of Bills: The following bills were presented for approval:
Capital Gains, Inc.: $4,852.00
Attorney Fees (Gandor) $1,033.00
Copy Fees (Gandor) $ 323.17
IPPFA Trustee Training: $ 600.00
Motion by K. Ducak, seconded by J. Meyer to approve payment of bills as presented.
Ayes: Prust, Ducak, Fisher, Foerster, Meyer
Nays: None
Absent: None
Abstain: None
Motion carried
b) Training Update: Trustees Foerster, Prust, Ducak, and Fisher attended an IPPFA Public Pension
Trustee 8-hour training course in February. Meyer completed 16 hours of online training through
IPPFA.
7. New Business
a) J. Meyer made a motion, seconded by O. Prust to approve a request from former officer Robert
Keene for a refund of all pension fund contributions in the amount of 488,355.27.
Ayes:
Prust, Ducak, Fisher, Foerster, Meyer
Nays:
None
Absent:
None
Abstain:
None
Motion carried
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b) Motion by O. Prust, seconded by K. Ducak to approve a request from former officer Mark Gandor
for a refund of all pension fund contributions in the amount of $64,711.74.
Ayes:
Prust, Ducak, Fisher, Foerster, Meyer
Nays:
None
Absent:
None
Abstain:
None
Motion carried
Any Additional Items for Discussion. Mr. Meyer reiterated his concerns about the actuarial assumption
of 7.5%, salary scale of 5.5%, and mortality table used by the board's actuary Tim Sharpe to prepare the
actuarial valuation report. Mr. Meyer suggested the board seek proposals from other actuarial firms to
prepare next year's report as it is too late to switch firms at this time of year. If the board agrees, Mr.
Meyer offered to develop a list of firms and a request for proposal document for review at the July
meeting. The board unanimously agreed.
9. Adj ournment
K. Ducak made a motion, seconded by M. Fisher to adjourn the meeting.
Ayes: Prust, Fisher, Ducak, Foerster, Meyer
Nays: None
Absent: None
Abstain: None
Motion carried
The meeting was adjourned at 4:10 PM.
Next meeting: July 12, 2016.
Respectfully submitted,
Marci Geraghty, Re #ding fecretary
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