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MCHenr
Police Pension Board of Trustees
July 10, 2018
Meeting Minute
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:
Jeffery Foerster, Nick Clesen, Jon Meyer, Marc Fisher and Ormel Prust. 0-absent. Others present: Jim
Schmidt, LPL Financial; Gary Karshna, Capital Gains, Inc. and recording secretary Debra Meadows. There
was a quorum present.
Public Input
None.
Meeting Minutes:
Motion to approve the January 2, 2018 meeting minutes.
Motion to approve the April 24, 2018 meeting minutes.
President Foerster asked if any of the members had any comments with respect to the January 2, 2018
minutes or any comments on the April 24, 2018 minutes. Member Fisher stated that on the April 24tn
minutes he was not noted as absent. Recording Secretary Meadows will amend the minutes to reflect
Fisher's absence. A Motion was made by Member Prust and seconded by Member Fisher to approve
the January 2nd meeting minutes as presented and the April 24th meeting minutes as amended Roll
call: Vote: 5-ayes by unanimous voice vote. 0-nays, 0-abstained. Motion carried.
New Business:
Call for Nominations and Motion to approve Annual Election of Board Officers:
Member Meyer reported that he is submitting his resignation due to the fact he will be spending more
time in Florida and will be unable to attend all of the quarterly meetings. He reported that his
resignation is effective as of October 2018. The Police Pension Board Members wished him all the best
and noted that his input will be missed. They asked if he would consider on occasion providing the Board
Members with advice with respect to the financials. Member Meyer stated that he would.
President Foerster called for nominations of the office of President. Member Fisher nominated J.
Foerster. No other nominations were received. President Foerster called to close nominations. Moved
by Clesen, seconded by Meyer. Voice vote was unanimous for Foerster as President. President Foerster
called for approval of a unanimous ballot to be entered by the Secretary for Jeff Foerster as President.
Roll call: Vote: 5-ayes by unanimous voice vote. 0-nays, 0-abstained. Motion carried.
President Foerster called for nominations of the office of Vice -President. Member Fisher nominated
Member Clesen. No other nominations were received. President Foerster called to close nominations.
Moved by Fisher, seconded by Meyer. Voice vote was unanimous for Clesen as Vice -President. President
Foerster called for approval of a unanimous ballot to be entered by the Secretary for Nick Clesen as
Vice -President. Roll call: Vote: 5-ayes by unanimous voice vote. 0-nays, 0-abstained. Motion carried.
President Foerster called for nominations of the office of Secretary. Vice -President Clesen nominated
Member Fisher for Secretary. No other nominations were received. President Foerster called to close
the nominations. Moved by Clesen, seconded by Meyer. Voice vote was unanimous for Fisher as
Secretary. President Foerster called for approval of a unanimous ballot to be entered by the Secretary
for Marc Fisher as Secretary. _Roll call: Vote 5-ayes by unanimous voice vote. 0-nays, 0-abstained.
Motion carried.
President Foerster called for nominations for the office of Assistant Secretary. Member Meyer
nominated Member Prust for Assistant Secretary. No other nominations received. President Foerster
called to close the nominations. Moved by Member Meyer and seconded by Vice -President Fisher.
President Foerster called for one unanimous ballot to be entered by the Secretary for Member Prust as
Assistant Secretary. Roll call: Vote: 5-ayes by unanimous voice vote. 0-nays, 0-abstained. Motion
carried.
Motion to approve the 2018/19 Police Pension Board of Trustees Meeting Schedule
A Motion was made by Vice -President Clesen and seconded by Secretary Fisher to approve the following
2018/19 Meeting Schedule as follows:
• October 16, 2018
• January 8, 2019
• April 9, 2019
• July 9, 2019
Roll call vote: 5-ayes by unanimous voice vote. 0-nays, 0-abstained. Motion carried.
Motion to approve Officers Peter Mader and Luis Pena's Applications for Participation in the Police
Pension Fund
A Motion was made by Vice -President Clesen and seconded by Member Meyer to approve Officers
Peter Mader and Luis Pena's Applications for Participation in the Police Pension Fund. Roll call: Vote:
5-ayes by unanimous voice vote. 0-nays, 0-abstained. Motion carried.
Corporate Bond Acquisition and Sale Policy
Mr. Karshna commented on legislation regarding the length a bond experiencing a significant loss can be
held. He had drafted a Corporate Bond Acquisition and Sale Policy addressing this issues. This policy may
be incorporated into the Investment Policy or serve as a standalone policy. This matter will be placed on
the next agenda for Board approval.
Report of Investments and Accounts
Motion to approve the Treasurer Report
The Treasurer's Report was not presented. No action was taken at this time.
Fixed Assets Investment Report
Fixed Assets Manager Gary Karshna presented the annual investment report for Fiscal Year beginning
May 1, 2017 and ending April 30, 2018, at which time the Market Valuation was $9,265,906 and Book
Valuation was $9,089,615. He went on to report that the investment strategy applied was extremely
effective in the current, rising interest rate environment. The Pension Fun outperformed the Barclays
Blended Bond Benchmark, by a significant margin.
Mr. Karshna reported that the fixed income portfolio held its value extremely well, in a rising interest
rate environment.
Equites Investment Report
Mr. Jim Schmidt of LPL Financial presented the equities investment summary for the period of
December 29, 2017 to July 9, 2018. The total market value of investments as of July 9, 2018 was
$16,335,909.42, which is a 5.21% increase.
Unfinished Business
Motion to approve the payment of bills as follows:
• Illinois State Treasurer -/Annual Compliance Fee $4,555.03
• Justin Debolt $250.00
• Capital Gains Services-5/1-7/31 $4,999.00
A Motion was made by Assistant Secretary Prust and seconded by Member Meyer to approve the
payment of bills as presented. Roll call: Vote:5-ayes: Assistant Secretary Prust, Member Meyer,
President Forester, Vice -President Clesen and Secretary Fisher. 0-nays, 0-abstained. Motion carried.
Pension Training
The Pension Board Members will be attending a two training session in the near future.
Additional Items for Discussion
There was no additional items discussed.
Motion to Adjourn
There being no further business to discuss, a Motion was made by Assistant Secretary Prust and
seconded by Vice -President Clesen to adjourn from the public meetine at 3:10 p.m. Roll call: Vote: 5-
ayes by unanimous voice vote. 0-nays, 0-abstained. Motion carried.
Respectfully submitted,
Debra Meadows