HomeMy WebLinkAboutMinutes - 07/17/2007 - Police Pension BoardM
MEETING OF THE POLICE PENSION BOARD
CITY OF MCHENRY
Tuesday, July 17, 2007
A meeting of the McHenry Police Pension Board was called to order on Tuesday, July 17, 2007,
at 3:32 PM in the City of McHenry Municipal Center, 333 South Green Street.
At roll call, the following members were present: Sgt. Jeff Foerster, Bob Hettermann, and Dan
Kinnerk. Absent: Ormel Prust, Officer Robert Roske.
Other present at the meeting were Gary Karshna, Capital Gains; Jim Schmidt, LPL Financial;
Chris Black, Carolyn Lynch and recording secretary Marci Geraghty, City of McHenry.
Selection of Board Officers
Kinnerk made a motion, seconded by Hettermann to reappoint the following board
officers: Sgt. Jeffrey Foerster, President, Daniel Kinnerk, Vice President; and Officer
Robert Roske, Secretary. All ayes, motion carried.
Meeting Minutes
Hettermann made a motion, seconded by Kinnerk to approve the minutes from the May
31, 2007, Special Police Pension Board meeting as presented and to hold them for audit.
All ayes, motion carried.
Ormel Prust entered the meeting at 3:35 PM.
Treasurer's Report
City of McHenry Accountant Carolyn Lynch presented the Treasurer Report for the period
ending March 31, 2007 and for the fiscal year May 1, 2006 through April 30, 2007.
Robert Roske entered the meeting at 3:37 PM
At the end of the 2006/07 fiscal year, net assets held in trust for pension benefits were
$15,255,122. Net assets held in trust totaled $15,574,990.
Prust made a motion, seconded by Hettermann to approve the treasurer's reports as
presented and to hold them for audit. All ayes, motion carried.
Old Business
a. Capital Gains. Gary Karshna reported on the pension funds fixed assets as of
May 31, 2007.
Portfolio Market Valuation $6,810,321
Portfolio Book Valuation $6,912,506
Average Maturity 5.06% Effective Duration 4.03%
Karshna reported that the pension fund fixed asset investments increased
over 7% in the last fiscal year. A total of $74,000 in profits was captured
during the same period. The year was profitable for both the bond and
Police Pension Board Meeting
July 17, 2007
Page Two
stock markets. The new fiscal year did not start well with a -1.1 % shortfall
L. however, Karshna noted that it is too soon to tell.
He also reported that the housing market is beginning to stabilize and the
Feds may lower interest rates as the economy begins to slow. Karshna is
of the option that inflation will remain in check.
b. LPL Financial. Jim Schmidt distributed a copy of the pension fund equity
investments for the period ending July 16, 2007. Total value of investments for
the period was $7,484,444, up 15.05% for the year compared to the S&P 500 at
10.32%. Schmidt stated that the increase in earnings was mostly due to the
performance of the American Funds account.
Schmidt reported that although the board has not contributed money to the equity
fund since 2002, it is approximately 3% over the 45% regulated by the
Department of Insurance.
C. A discussion ensued on current CD investments. It was noted that a CD will be
due soon and that this should be discussed at the October meeting. Chris Black
commented that the Illinois Funds is a good place to park money for the short-
term.
New Business
President Foerster presented a request for application to the Police Pension fund from Justin
Debolt, who was hired approximately 2-weeks ago.
Hettermann made a motion, seconded by Roske to accept the application to the Police
Pension fund for Justin Debolt. All ayes, motion carried.
Bills for Approval
Prust made a motion, seconded by Hettermann to approve payment of the following
invoice:
Capital Gains, Inc. $3,764.71
Wells Fargo $490.21
Timothy W. Sharpe, Actuary $1,500.00
All ayes, motion carried.
Adjournment
Kinnerk made a motion, seconded by Prust to adjourn the meeting. All ayes, motion
carried. The meeting was adjourned at 4:10 PM.
Respectfully submitted,
Marcia M. Geraghty ec ding Secretary