HomeMy WebLinkAboutMinutes - 01/12/2016 - Police Pension Board�acanr o r c rox �ervcas�
Police Pension Board of Trustees
Regular Meeting
January 12, 2016
1. 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. Absent: Jon Meyer.
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 October 13,
2015 as presented and to hold them for audit.
Ayes: Ducak, Fisher, Prust, Foerster
Nays: None
�. Absent: Meyer
Abstain: None
Motion carried
b) Semi-annual review of Executive Session Minutes: With advice from board counsel, no
Executive Session minutes were presented for release at this time due to ongoing litigation.
5. Report of Investments and Accounts:
a) Treasurer Report: C. Lynch presented the December 31, 2015, Treasure's Report with total cash
and investments at $20,685,190.95. Ms. Lynch noted the fund will require cash deposited to the
checking account to pay bills in April and May. Mr. Karshna said cash could be available from
profits capture through bond sales. President Foerster stated this matter will be addressed at the
April meeting.
K. Ducak made a motion, seconded by M. Fisher to approve and hold for audit the Treasure
Report for the period ending December 31, 2015 with total cash and investments of
$20,685,190.95.
Ayes: Ducak, Fisher, Prust, Foerster,
Nays: None
Absent: Meyer
Abstain: None
Motion carried
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b) Investment Policy Revision: O. Prust made a motion, seconded by K. Ducak to approve
amendments to the Police Pension Investment Policy as agreed to by the board at the October 13,
2015 meeting.
Ayes: Ducak, Fisher, Prust, Foerster,
Nays: None
Absent: Meyer
Abstain: None
Motion carried
c) Capital Gains Fixed Assets Investment Report: Fixed Assets Manager Gary Karshna presented the
investment report for the period ending December 31, 2015 at which time the Market Valuation
was $8,864,113 and Book Valuation $9,143,363. For the period 4/30/15 to 12/31/15: Accrued
Interest $105,969.15: Average Capital, $8,949,767.42 and total management fees charged:
$14,868.
Mr. Karshna reported fiscal year to date the bond portfolio is trailing the bond benchmarks on a
market valuation basis however it is outperforming on book valuations. As interest rates begin to
rise the value of longer term bonds will decline in value. The portfolio contains a large percentage
(59%) of securities with short term maturities. As bonds mature we will be able to invest those
proceeds at higher yields. He stated it is important to remember that bonds have a safety net; we
can hold onto them until they mature and receive all of our invested principal and interest. Mr.
Karshna recommended the addition of longer term bonds to the portfolio as rates rise to produce
more trading opportunities.
d) Equities Investment Report: Jim Schmidt of LPL Financial presented the equities report for the
valuation period of December 31, 2014 to December 31, 2015. Mr. Schmidt stated if the start of
this year is any indication, 2016 will be a tough year for the equities market. In 2015, the fund was
basically flat for the year, down (0.25%). He did note the American Funds performed extremely
well in 2015. Total equities market value as of December 31, 2015 was $11,547,068.67.
6. Unfinished Business:
a) Gandor Disability Pension Application. Pursuant to action taken by the Police Pension Board at
the November 12, 2015; President Foerster called for a motion on the matter of the Disability
Application filed by Mark Gandor.
Motion by M. Fisher, seconded by O. Prust to affirm the Police Pension Board's denial of the Mark
Gandor Disability Pension application.
Ayes: Ducak, Fisher, Prust, Foerster,
Nays: None
Absent: Meyer
Abstain: None
Motion carried.
The written decision and order was signed by the Board and will be forwarded to Counsel for
filing.
b) Payment of Bills: The following bills were presented for approval:
Capital Gains, Inc.: $4,924.00
Attorney Fees (Gandor) $3,934.47
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Motion by O. Prust, seconded by K. Ducak to approve payment of bills as presented.
Ayes: Prust, Ducak, Fisher, Foerster
Nays: None
Absent: Meyer
Abstain: None
Motion carried
c) Training_ Update: Trustees Foerster and Prust are enrolled in an IPPFA Public Pension Trustee 8-
hours training course that will be held in February. Ducak and Fisher will enroll in same.
7. New Business
a) Annual Pension Increases: M. Fisher made a motion, seconded by K. Ducak to approve annual
pension increases as presented.
Ayes: Prust, Ducak, Fisher, Foerster
Nays: None
Absent: Meyer
Abstain: None
Motion carried
b) Kinney Transfer of Creditable Service: K. Ducak made a motion, seconded by O. Prust to approve
Officer Kinney's transfer of creditable service (6 years, 18 days) from Huntley to McHenry Police
Pension Funds
Ayes: Ducak, Fisher, Prust, Foerster
Nays: None
Absent: Meyer
Abstain: None
Motion carried
c) President Foerster reported Actuary Tim Sharpe is moving his office to Michigan however he will
still be able to provide actuarial services for the police pension fund.
8. Adj ournment
M. Fisher made a motion, seconded by K. Ducak to adjourn the meeting.
Ayes: Prust, Fisher, Ducak, Foerster
Nays: None
Absent: Meyer
Abstain: None
Motion carried
The meeting was adjourned at 4:10 PM.
Respectfully submitted,
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arci Geraghty, Rec ing S retary
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