HomeMy WebLinkAboutMinutes - 04/13/2021 - Police Pension Board
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
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that must be adhered to by the end of April. A special meeting will be called on April 22 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,
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April 19. 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.
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The next regular meeting is set for July 6.
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.
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Monte Johnson, Recording Secretary