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HomeMy WebLinkAboutPacket - 07/06/2021 - Police Pension Board POLICE PENSION BOARD OF TRUSTEES Tuesday, July 6, 2021 2:30 PM Municipal Center - 333 South Green Street City Council Chambers AGENDA 1. Call to Order 2. Roll Call 3. Public Input 4. Call for Nominations and Motion to Approve Annual Election of Board Officers 5. Meeting Minutes: a) Motion to approve the Minutes from April 13, 2021, and April 22, 2021 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 6. New Business: a) Motion to accept the annual independent Medical Examination for Police Disability Pensioner Justin DeBolt b) Motion to accept the annual independent Medical Examination for Police Disability Pensioner Sean Klechak c) Motion to appoint two Authorized Representatives to fulfill duties and requirements for the Illinois Police Officers’ Pension Investment Fund 7. Report of Investments and Accounts: a) Motion to approve the Treasurer Report. b) Fixed Assets Investment Report c) Equities Investment Report 8. Unfinished Business: a) Motion to approve the payment of bills 9. Additional Items for Discussion a) Robert Lumber has filed for disability b) Approve the portability request of Luis Pena to Arlington Heights c) Report of terms for board members 10. Motion to Adjourn Police Pension Board of Trustees Regular Meeting Minutes April 13, 2021 Call to Order The regular meeting of the City of McHenry Police Pension Board of Trustees was called to order at 2:30 p.m. in the Police Classroom at 333 S Green Street in McHenry, Illinois. Roll call: Members present: President Jeffery Foerster, Marc Fisher, Sergeant Nick Clesen, Cheryl Kranz. Members absent: Ann Buss. Others present: Monte Johnson, Carolyn Lynch, Gary Karshna, James Schmidt. Public Input: No members of the public were present to offer comments. Approve the October 13, 2020 Meeting Minutes, the November 30, 2020 Special Meeting Minutes, and the January 12, 2021 Meeting Minutes. A motion was made by Sergeant Clesen and seconded by Officer Fisher to approve the meeting minutes of October 13 ,2020; November 30, 2020; and January 12, 2021. Roll Call Vote: 4-ayes: Sergeant Clesen, Officer Fisher, Cheryl Kranz, Jeff Foerster. Motion carried. Presentation and motion to approve the Treasurer’s Report A motion was made by Officer Fisher and seconded by Sergeant Clesen to approve the Treasurer’s Report as presented. Roll Call Vote: 4-ayes: Sergeant Clesen, Officer Fisher, Cheryl Kranz, Jeff Foerster. Motion carried. LPL Financial Equities Report Investment Advisor James Schmidt reported that we are five months into the six-month plan of dollar cost averaging. Money has been transferred each month. The market has increased steadily since December. We started at 29 million, added 8 million, and have seen an increase of almost 2.8 million. This has given us an 8.5% rate of return. It was discussed if the funds now had more than the 65% limit that must be adhered to by the end of April. A special meeting will be called on April 22nd to give authority to adjust the funds as necessary. Capital Gains, Inc. Fixed Assets Report Investment Manager Gary Karshna reported that interest rates on bonds have started to increase. In May of last year the 30 year bond was at 1.26%. That is now at 2.44%. The long term rates are still not high enough to commit a lot of money to, but as rates climb we will slowly move into long term securities. We are currently buying short term corporate bonds. We were able to get an Illinois bond at 3%. Looking over the last 12 months, we have seen a 2.29% return at market value. Semi-annual review of the Police Pension Board Fund Investment Policy. Gary Karshna recommended a couple of changes on page 3 of the investment policy. The policy was written so that corporate bonds with maturities must have an AA rating or higher. With interest rates so low, this is not feasible. He recommends that long term bonds beyond 5 years should have an AA rating, and those in the 1-5 year range have a BBB rating. A motion was made by Cheryl Kranz and seconded by Sergeant Clesen to approve the Police Pension Bond Fund Investment Policy with the suggested changes. Roll Call Vote: 4-ayes: Sergeant Clesen, Officer Fisher, Cheryl Kranz, Jeff Foerster. Motion carried. Motion to approve the payment of bills The two bills presented were by Capital Gains and LPL Financial. A motion was made by Officer Fisher and seconded by Cheryl Kranz to approve the payment of bills as presented by Treasurer Carolyn Lynch. Roll Call Vote: 4-ayes: Sergeant Clesen, Officer Fisher, Cheryl Kranz, Jeff Foerster. Motion carried. Accept pension applications of Katherine Zajac, Daniel Lincicum, and Alberto Martinez A motion was made by Sergeant Clesen and seconded by Cheryl Kranz to accept the pension applications of Katherine Zajac, Daniel Lincicum, and Alberto Martinez. Roll Call Vote: 4-ayes: Sergeant Clesen, Officer Fisher, Cheryl Kranz, Jeff Foerster. Motion carried. Unfinished Business President Foerster explained that the pension board elections are ongoing and will run through Monday, April 19th. President Foerster will return to the board as he was the only retiree nominated. Ann Buss was up for reappointment but will not be returning. Mayor Jett will name somebody to take her place. The next regular meeting is set for July 6th. Motion to Adjourn A motion was made by Officer Fisher and seconded by Cheryl Kranz to adjourn the meeting at 3:06 p.m. Roll Call Vote: 4-ayes: Sergeant Clesen, Officer Fisher, Cheryl Kranz, Jeff Foerster. Motion carried. ______________________________ Monte Johnson, Recording Secretary Police Pension Board of Trustees Special Meeting Minutes April 22, 2021 Call to Order A special meeting of the City of McHenry Police Pension Board of Trustees was called to order at 10:00 a.m. The meeting was held remotely via Zoom due to the COVID-19 pandemic. Roll call: Members present: President Jeffery Foerster, Marc Fisher, Sergeant Nick Clesen, Cheryl Kranz. Members absent: Ann Buss. Others present: Monte Johnson, Carolyn Lynch, Gary Karshna, James Schmidt. Public Input: No members of the public were present to offer comments. Authorize LPL Financial Equities to take actions necessary to get equity investment assets below the 65% threshold of the market value of the Pension Fund’s net present asset valuation Treasurer Lynch explained that our assets currently sit at 63.4% in equities. In case the market goes up in the next week, it was decided that up to $1 million could be sold out of equities if needed. A motion was made by Sergeant Fisher and seconded by Sergeant Clesen to authorize LPL Financial Equities to sell up to $1 million in equities if needed to get equity investment assets below the 65% threshold of the market value of the Pension Fund’s net present asset valuation. Roll Call Vote: 4-ayes: Sergeant Clesen, Officer Fisher, Cheryl Kranz, Jeff Foerster. 1-absent: Ann Buss. Motion carried. Authorize LPL Financial Equities to reinvest funds on or after May 3, 2021 A motion was made by Cheryl Kranz and seconded by Officer Fisher to authorize LPL Financial Equities to reinvest any funds that may need to be sold to get equity investments below the 65% threshold. Roll Call Vote: 4-ayes: Sergeant Clesen, Officer Fisher, Cheryl Kranz, Jeff Foerster. 1-absent: Ann Buss. Motion carried. Motion to Adjourn A motion was made by Officer Fisher and seconded by Sergeant Clesen to adjourn the meeting at 10:11 a.m. Roll Call Vote: 4-ayes: Sergeant Clesen, Officer Fisher, Cheryl Kranz, Jeff Foerster. 1-absent: Ann Buss. Motion carried. ______________________________ Monte Johnson, Recording Secretary