HomeMy WebLinkAboutPacket - 07/09/2019 - Police Pension BoardPOLICE PENSION BOARD OF TRUSTEES
Tuesday, July 9, 2019
2:30 PM
Municipal Center - 333 South Green Street
Aldermen's Conference Room
AGENDA
1. Call to Order
2. Roll Call
3. Public Input (5-minutes)
4. Meeting Minutes:
a) Motion to approve the April 9, 2019, and May 10, 2019 Minutes
b) Semi -Annual Review of Executive Session Minutes and if necessary, motion to
approve, release, and/or maintain the confidentiality of any minutes based on
advice from legal counsel as presented
5. New Business:
a) Call for Nominations and Motion to approve Annual Election of Board Officers
b) Motion to approve the 2019/20 Police Pension Board of Trustees Meeting
Schedule
c) Motion to approve Officers Diana Hernandez, Blake Britton, and John Staines
Applications for Participation in the Police Pension Fund
d) Motion to approve the retirement of Sgt. Kevin Cox
e) Motion to approve the request from Eve Kulcsar for a refund of contributions
f) Discussion and possible motion to convert "A" shares American Funds to R6
share class funds
g) Motion to accept the annual independent Medical Examination for Police
Disability Pensioner Justin DeBolt
6. Report of Investments and Accounts:
a) Motion to approve the Treasurer Report.
b) Fixed Assets Investment Report
c) Equities Investment Report
7. Unfinished Business:
a) Motion to approve the payment of bills
b) Public Pension Trustee Training Update
8. Additional Items for Discussion
9. Motion to Adjourn
Polif
rustees
Call to Order
A meeting of the City of McHenry Police Pension Board of Trustees was called to order at 2:30 pm in the
McHenry City Council Chamber, 333 S. Green Street, McHenry, IL.
Roll call:
Members present: Jeffery Foerster, Nick Clesen and Cheryl Kranz. Others present: Jim Schmidt, LPL
Financial; Gary Karshna, Capital Gains, Inc. and Finance Director Lynch. There was a quorum present.
President Foerster announced that was a visitor present Ms. Ann Buss it is anticipated that Ms. Buss will
be appointed to the Police Pension Board at the next City Council meeting.
Public Input
None.
Meeting Minutes:
Motion to approve the January 8, 2019 meeting minutes.
President Foerster noted that his named was misspelled in several instances asked if any of the members
had any other comments or questions with respect to the January 8, 2019 meeting minutes. The Board
Members offered no additional comments. _A Motion was made by Member Clesen and seconded by
Member Kranz to approve the January 8 2019 meeting minutes as amended Roll call: Vote: 3-ayes by
unanimous voice vote. 0-nays, 0-abstained. Motion carried.
Investment Reports
Presentation and Motion to approve Treasurer's Report
Finance Director Lynch provided the Members with a copy of the Treasurer's Report which included a list
of investments as of March 31, 2019. She reported that the investment equities are at 61% which is an
acceptable percentage for the close of the Fiscal Year.
The Board Members offered no other comments with respect to the Treasurer's Report. A Motion was
made by Member Clesen and seconded by Member Kranz to approve the Treasurer's Report as
presented. Roll call: Vote: 3-ayes by unanimous voice vote. 0-nays, 0-abstained. Motion carried.
Fixed Assets Investment Report
Investment Manager Karshna provided the Board Members with an update on the Bond Portfolio. He
report that the majority of Police Pension Fund maturities are concentrated in the short -end of the
maturity spectrum. Which at this time is performing well. In his opinion it is important to remain cautious,
in the current uncertain investment environment. They will continue to look for securities which represent
the best value in the fix income market. In this manner, they as advisors can continue to maximize
investment revenues, in a safe and responsible manner.
Equities Investment Report
Financial Advisor Schmidt provided the Board Members with an update on the status of the Police Pension
Fund assets. He noted that 75% of the assets are in US Stocks and 25% are in International Stocks.
Both of the markets are performing exceptional well. The return rate is higher than he has seen in several
years. Finance Director Lynch reported that the Police Pension Fund current has 1 million dollars in cash.
The Board Members along with the Financial Advisors discussed investing some of the cash on hand in
additional stocks and bonds.
Semi-annual review of Police Pension Fund Investment Policy
Investment Manager Karshna reported at this time he is unaware of any new legislation that would trigger
any changes to the investment policy.
Unfinished Business:
Motion to approve payment of bills as follows:
1. Capital Gains services 2/1/2019-4/30/2019 in the amount of $5,126.00
2. Marsh USA Public Official Bonds for Foerster and Fisher in the amount of $180.00
3. Bankcard Processing Center for W2 Software in the amount of $38.96
4. Puchalski, Goodleo, Marzullo Kelchak services in the amount of $1,024.64
5. Lauterback & Amen, LLP for Actuarial service in the amount of $4,750.00
6. Pershing LLC, FBO Fremont Peter Nester IV for a pension refund in the amount of $28,460.40
7. Pershing LLC, FBO Fremont Peter Nester IV for a pension refund in the amount of $20,100.23
President Foerster asked if the Board Member had any questions or comments regarding the bills
presented for payment. The Board Members offered no comments. A Motion was made by Member
Clesen and seconded by Member Kranz to approve the bills for payment as presented. Roll call: Vote: 3-
ayes Members Clesen, Kranz and Foerster. 0-nays, 0-abstained. Motion carried.
New Business
Elections
President Foerster reported the Police Pension Board Elections are underway. They have five nominations
for the two active member Board seats and two nominations for the retired Board Member seat. The
election results will be posted on April 18cn
Additional Items for Discussion Unfinished Business
The Financial Advisors suggested placing new investment considerations on the next Police Pension Board
Agenda.
Adjournment
There being no further public business to discuss, a Motion was made by Member Clesen and seconded
by Member Kranz to adjourn from the public meeting at 2:55. Roll call: Vote: 3-ayes by unanimous voice
vote. 0-nays, 0-abstained. Motion carried.
Respectfully submitted,
Debra Meadows
Police Pension Board of Trustees
May 10, 2019, 2:30 PM
Special Meeting Minutes
Call to Order
A special meeting of the City of McHenry Police Pension Board of Trustees was called to order at 10:56
a.m. in the Police classroom at 333 S. Green Street, McHenry, IL.
Roll call:
President Jeffery Foerster, Nick Clesen, Ann Buss, Cheryl Kranz, Marc Fisher. Others present: recording
secretary Monte Johnson.
Public Input:
None.
Discussion and Possible Action as to Investment Activity and the Transfer of Cash for Further
Investment:
Mr. Schmidt from LPL Financial was not present but was reported to have recommended the investment
of the $500,000 in cash. There was a discussion of the difference between A Shares and C Shares. It
was also discussed if the money should be invested in the 1-5 year range or longer. There was a
discussion about the costs or fees involved for the investment, and Ms. Kranz stated that there would be
an upfront fee for the investment. With no further discussion, a motion was made by Sergeant Clesen
and seconded by Ms. Kranz to invest the funds as recommended by Mr. Schmidt. Vote: 5-ayes by
unanimous voice vote. 0-nays, 0-abstained. Motion carried.
Motion to adjourn
There being no further business to discuss, a motion was made by Sergeant Clesen and seconded by
Officer Fisher to adjourn from the public meeting at 2:50 pm. Vote:2-ayes by unanimous voice vote. 0-
nays, 0-abstained. Motion carried.
Respectfully submitted,
Monte Johnson
McHenry Police Pension Board of Trustees
McHenry Municipal Center
333 Green Street
McHenry, Illinois 60050
Phone: (815) 363-2108
Fax: (815) 363-2119
www.ci.mchenry.il.us
POLICE PENSION BOARD OF TRUSTEES
2019/20 MEETING SCHEDULE
2:30 PM
Municipal Center Council Chambers
333 South Green Street
McHenry, IL 60050
Tuesday, October 8, 2019
Tuesday, January 14, 2020
Tuesday, April 14, 2020
Tuesday, July 14, 2020
Monte Johnson, Deputy City Clerk