HomeMy WebLinkAboutMinutes - 01/13/2015 - Police Pension BoardPolice Pension Board of Trustees
Regular Meeting
January 13, 2015
A meeting of the City of McHenry Police Pension Board of Trustees was called to order at 3:30 PM by
President Jeffrey Foerster. Other board members present: Ormel Prust, Marc Fisher and Kelly Ducak. Absent:
Jon Meyer.
Others present: Jim Schmidt, LPL Financial; Gary Karshna, Capital Gains, Inc.; Treasurer Carolyn Lynch and
recording secretary Marci Geraghty, City of McHenry.
Public Input
None.
Approval of Minutes
O. Prust made a motion, seconded by M. Fisher to
presented and to hold them for audit.
Ayes: Prust, Fisher, Ducak, Foerster,
Absent: Meyer
Abstain: None
Motion carried
Bi-Annual Review of Executive Session Minutes
None.
approve meeting minutes from October 14, 2014 as
Treasurer Report
C. Lynch presented the Treasurer Report for the period ending December 31, 2014. Full market value of cash
and investments at that time was $21,370,957.11. Ms. Lynch reported additional cash will be needed in April
and May to pay bills. The board agreed to follow up on this matter at the April meeting.
Motion by O. Prust, seconded by M. Fisher to approve the Treasurer Report for the period ending December 31,
2014 as presented and to hold it for audit.
Ayes: Prust, Fisher, Ducak, Foerster,
Absent: Meyer
Abstain: None
Motion carried
Investment Reports
a) Capital Gains, Inc.: Gary Karshna of Capital Gains, Inc. presented the fixed assets report for the period
ending December 31, 2014. The portfolio market value as of December 31S` was $9,210,594 and book
valuation was $9,257,837. The portfolio is well ahead of the Barclays Intermediate Government Bond
Index Rate of Return — 3.65% vs. 3.90%. Halliburton and Diamond Offshore Callable Corporate
Bonds were purchased at a great value adding some long-term duration to the portfolio.
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b) LPL Financial: Jim Schmidt of LPL Financial presented the equities report. Total market value of
equities as of December 31, 2014 was $11,575,434.59. Large Cap funds are in line with the U.S. index
while the small cap is performing below expectations. There is currently much uncertainty in the
equities market and we will continue to see volatility due to uncertainty in Europe. The U.S. market is
still viewed as the best investment.
Bills.
The following bills were presented for approval:
Capital Gains, Inc.:
$5,053
Motion by O. Prust, seconded by K. Ducak to approve payment of bills as presented.
Ayes: Prust, Ducak, Fisher, Foerster
Absent: Meyer
Abstain: None
Motion carried
Training Update
President Foerster reported he and Trustee Prust are registered to attend the IPPFA Trustees Training in
Hoffman Estates on February 1 lth. The seminar will satisfy eight hours of required continuing pension trustee
training.
Annual Pension Increases
Motion by O. Prust, seconded by M. Fisher to approve annual pension increases as presented.
Ayes: Prust, Fisher, Ducak, Foerster,
Absent: Meyer
Abstain: None
Motion carried
2015 Elections
Elections will be held in April for active and retired pension trustees. Mr. Prust is up for reappointment as a
Mayoral appointment.
Other Business
• President Foerster report he received an application for disability benefits from patrol officer Mark
Gandor.
• President Foerster responded to former officer Peter Nester's request for reimbursement of his pension
fund contributions.
Adjournment
O. Prust made a motion, seconded by K. Ducak to adjourn the meeting.
Ayes: Prust, Ducak, Fisher, Foerster
Absent: Meyer
Abstain: None
Motion carried
The meeting was adjourned at 4:28 PM.
Respectfully submitted,
Marci Geraghty, Recording Secretary
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