HomeMy WebLinkAboutMinutes - 01/14/2014 - Police Pension BoardPolice Pension Board of Trustees
Regular Meeting
January 14, 2014
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: Jon Meyer, Marc Fisher, Kelly Ducak, and Ormel
Prust.
Others present: Gary Karshna, Capital Gains, Inc.; Finance Director/Treasurer Carolyn Lynch and recording
secretary Marci Geraghty, City of McHenry.
Public Input
None.
Approval of Minutes
J. Meyer made a motion, seconded by O. Prust to approve the special meeting minutes from November 6, 2013
as presented and to hold them for audit. All ayes, motion carried.
Semi-annual Review of Executive Session Minutes
President Foerster announced all previous Executive Session minutes have been released
Report of Investments and Accounts:
a) Treasurer Report
The Treasurer Report for the period ending December 31, 2013 was presented. Full market value of
cash and investments at that time was $20,364,014.70; an increase of approximately 3.3% since
September 30, 2013 and 11.1 % over March 3, 2013.
Motion by O. Prust seconded by J. Meyer to approve the Treasurer Report for the period ending
December 31, 2013 as presented and to hold it for audit. President Foerster asked for a roll call vote:
Ayes: Ducak, Fisher, Foerster, Meyer, Prust
Absent: None
Abstain: None
Motion carried
b) Capital Gains, Inc.: Gary Karshna of Capital Gains, Inc. presented the fixed assets report for the period
ending December 31, 2013. Mr. Karshna reported the fixed income strategy has been effective in this
rising interest rate environment. We will continue to acquire short-term taxable municipal and
corporate bonds until interest rates reach more attractive levels from a longer -term perspective.
As of December 31", 2013, fiscal year-to-date the portfolio market valuation was $9,244,531 and
portfolio book valuation was $9,365,231. The average bond maturity is 2.70 and effective duration is
2.29.
c) LPL Financial Equities Report: Equities fund manager Jim Schmidt was not present at the meeting.
President Foerster distributed the latest equities report provided by Mr. Schmidt. As of December 31,
2013, the value of the fund was $10,895,493.
L Unfinished Business
L
a) Approval of Joseph Lazicki Transfer of Pension Funds: President Foerster reported Officer Joseph
Lazicki has requested the transfer of his pension funds from his former employer, the Village of
Winnetka, to the City of McHenry in the amount of $82,992.
K. Ducak made a motion, seconded by M. Fisher to approve the transfer of Joseph Lazicki's pension
funds in the amount of $82,992 from the Village of Winnetka pension fund to the City of McHenry
pension fund. Ms. Lynch stated there are no costs associated with the transfer. President Foerster asked
for a roll call vote:
Ayes: Ducak, Fisher, Prust, Meyer, Foerster
Absent: None
Abstain: None
Motion carried
b) Approve Payment of Bills: The following bills were presented for approval:
Timothy Sharpe Actuary:
$2,100.00
Jeffrey Foerster, IPPFA training
$150.00
Ormel Prust, IPPFA training
$150.00
Jon Meyer, IPPFA training
$200.00
Capital Gains Quarterly Fees
$5,082.00
Kelly Ducak, training reimbursement
$60.85
Marc Fisher, training reimbursement
$51.34
J. Meyer made a motion, seconded by O. Prust to authorize payment of bills as presented. President
Foerster asked for a roll call vote:
Ayes: Meyer, Prust, Ducak, Fisher, Foerster
Absent: None
Abstain: None
Motion carried
c) Training Update: State statute requires trustees to annual complete 16 hours of education and training -
first -term trustees are required to complete 32 hours their first year in office.
Trustee Completed Annual Requirement Balance as of 1/2014
K. Ducak 32 hours 0
M. Fisher 32 hours 0
J. Meyer 8 hours 8 hours
O. Prust 0 hours 16 hours
J. Foerster 0 hours 16 hours
President Foerster reported he and Trustee Prust are registered to attend an IPPFA Regional Seminar in February
that will satisfy eight of the required 16 hours of training.
New Business
a) Approval of Annual Pension Increases: J. Meyer made a motion, seconded by K. Ducak to approve the
annual increase to monthly pension payments effective January 2014 as presented. President Foerster
asked for a roll call vote:
Ayes: Meyer, Ducak, Prust, Fisher, Foerster
2
Absent: None
Abstain: None
Motion carried
b) Approve request from former patrol officer Ryan Lusmann for refund of all contributions paid to
McHenry Police Pension Fund in the amount of $6,435.44: M. Fisher made a motion, seconded by K.
to authorize the refund as presented. President Foerster asked for a roll call vote:
Ayes: Fisher, Ducak, Prust, Meyer, Foerster
Absent: None
Abstain: None
Motion carried
Any Additional Item for Discussion: Finance Director Lynch reported approximately $226,000 will be needed
in April to pay bills. Fixed Assets Manger G. Karshna recommended holding profits from bond rollovers that
will be captured in March. Mr. Karshna also noted equity investments will most likely need to be pared -back
before the end of the fiscal year if they exceed the state limit of 55%. J. Meyer suggested the board review its
investment in the IVY Assets Fund as it is not doing as well as the other equity funds. President Foerster
reported equities manager J. Schmidt is investigating the possibility of buying stocks individually from the
market. He added all of the recommendations made will be presented and considered at the next trustee meeting
on April 8"'.
Adjournment
J. Meyer made a motion, seconded by O. Prust to adjourn the meeting.
Ayes: Meyer, Prust, Ducak, Fisher, Foerster
Absent: None
Abstain: None
"I.- Motion carried.
The meeting was adjourned at 4:10 PM.
Respectfully submitted,
Marci Geraghty, Rq ordi fg Secretary