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Home My WebLink AboutMinutes - 07/21/2020 - Police Pension Board v� Police Pension Board of Trustees r Regular Meeting Minutes July 21, 2020 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. at the McHenry Municipal Building, 333 S Green St, McHenry, Illinois. Roll call: Members present: President Jeffery Foerster, Ann Buss, Cheryl Kranz, Marc Fisher, Sergeant Nick Clesen. Others present: Monte Johnson, Gary Karshna, James Schmidt. Clerk's Note: Ann Buss participated remotely via Zoom, as did Dalena Welkomer of Baird Public Finance. Public Input: No members of the public were present to offer comments. Call for Nominations and Motion to Approve Annual Election of Board of Officers A motion was made by Officer Fisher and seconded by Sergeant Clesen to nominate Jeff Foerster as President. There were no other nominations.A motion was made by Sergeant Clesen and seconded by Cheryl Kranz to close nominations for President. Vote: 5-ayes by unanimous voice vote. 0-nays,0- abstain, 0-absent. Motion carried.A motion was made by Officer Fisher and seconded by Sergeant Clesen to cast a unanimous ballot of Jeff Foerster for President. Vote: 5-ayes by unanimous voice vote. 0-nays, 0-abstain,0-absent. Motion carried. A motion was made by Officer Fisher and seconded by Cheryl Kranz to nominate Sergeant Clesen as Vice President.There were no other nominations.A motion was made by Officer Fisher and seconded by Cheryl Kranz to close the nominations for Vice President. Vote: 5-ayes by unanimous voice vote. 0-nays, 0-abstain,0-absent. Motion carried. A motion was made by Officer Fisher and seconded by Sergeant Cheryl Kranz to cast a unanimous ballot of Sergeant Clesen for Vice President. Vote: 5-ayes by unanimous voice vote.0-nays, 0-abstain,0-absent. Motion carried. A motion was made by Sergeant Clesen and seconded by Cheryl Kranz to nominate Marc Fisher for Secretary.There were no other nominations. A motion was made by Sergeant Clesen and seconded by Cheryl Kranz to close nominations for Secretary. Vote: 5-ayes by unanimous voice vote. 0-nays,0- abstain, 0-absent. Motion carried. A motion was made by Sergeant Clesen and seconded by Cheryl Kranz to cast a unanimous ballot of Marc Fisher for Secretary.Vote: 5-ayes by unanimous voice vote. 0-nays, 0-abstain, 0-absent. Motion carried. A motion was made by Cheryl Kranz and seconded by Sergeant Clesen to nominate Ann Buss for Assistant Secretary.There were no other nominations.A motion was made by Cheryl Kranz and seconded by Sergeant Clesen to close nominations for Assistant Secretary.Vote: 5-ayes by unanimous voice vote.0-nays, 0-abstain, 0-absent. Motion carried.A motion was made by Cheryl Kranz and seconded by Sergeant Clesen to cast a unanimous ballot of Ann Buss for Assistant Secretary.Vote: 5- ayes by unanimous voice vote. 0-nays, 0-abstain, 0-absent. Motion carried. Approval of Minutes A motion was made by Cheryl Kranz and seconded by Officer Fisher to approve the May 12, 2020, regular meeting minutes, and the June 5, 2020, special meeting minutes.Vote: 5-ayes, 0-nays, 0- abstained. Motion carried. Semi-Annual Review of Executive Session Minutes A motion was made by Cheryl Kranz and seconded by Ann Buss to approve the minutes and authorize the release of the May 10, 2019, executive session minutes.There are no other executive session minutes outstanding that haven't yet been approved or released. Vote: 5-ayes by roll call vote.0-nays, 0-abstain,0-absent. Motion carried. Treasurer's Report A motion was made by Officer Fisher and seconded by Sergeant Clesen to approve the Treasurer's Report as presented.Vote: 5-ayes by unanimous voice vote.0-nays, 0-abstain, 0-absent. Motion carried. Capital Gains, Inc. Fixed Assets Report Gary Karshna reviewed the highlights of his report. He explained that we have been looking for corporate bonds as those are the only ones with real value at the present time. It is now hard to find a short term bond with a yield over 1%.The rate of return so far this fiscal year is .86%, but still over 6% for the past 12 months. We will continue to do short duration bonds until the market rebounds. LPL Financial Equities Report Investment Advisor James Schmidt reviewed the Portfolio Performance Summary. He explained that the markets have returned. We started the year at approximately$19 million, dropped down to $15 million, and have now climbed up to$20 million in three months.The tech companies are showing the best benefits in the market. American Funds have adjusted to the tech and health care fields. Approve portability of time for Joseph Lazicki No paperwork was filed by Mr. Lazicki, and the deadline has passed for his filing, so no action will be taken by the Board. Annual independent Medical Examination for Police Disability Pensioner Sean Klechak A motion was made by Sergeant Clesen and seconded by Ann Buss to accept the annual independent Medical Examination for Police Disability Pensioner Sean Klechak.Vote: 5-ayes by unanimous roll call vote.0-nays,0-abstain,0-absent. Motion carried. Lauterbach &Amen Actuarial Services A motion was made by Cheryl Kranz and seconded by Sergeant Clesen to approve the proposed actuarial services from Lauterbach &Amen for a period of three years. Roll Call Vote: 5-ayes, 0-nays,0-abstained. Motion carried. Fiduciary Renewal Quote from Markel American Insurance Company A motion was made by Officer Fisher and seconded by Cheryl Kranz to approve the Fiduciary Renewal Quote from Markel American Insurance Company.Vote: 5-ayes by unanimous roll call vote. 0-nays, 0- abstain, 0-absent. Motion carried. Payment of Bills A motion as made by Officer Fisher and seconded by Sergeant Clesen to approve the payment of bills as submitted. Roll Call Vote: 5-ayes, 0-nays,0-abstained. Motion carried. Discussion of issuing bonds to pay off the unfunded liability for the Police Pension Fund A discussion ensued regarding issuing bonds to pay off the unfunded liability for the Police Pension Fund. Dalena Welkomer of Baird Public Finance was available over the phone through Zoom to answer questions. It was reported that the potential savings calculated in May could be as high as$10.9 million over the next 20 years. Now that the bond market has changed,this makes the City's position even stronger. As long as the rate of return from the investments were to be at least 3.1%, the City would save money on the life of the bond. It was asked what the next steps would be if the Board decided to move forward. Ms. Welkomer explained that she would visit with the City Treasurer and City Administrator to make sure they were comfortable moving forward. After that, it would be a matter of educating the City Council. Baird Public Finance can also work with Lauterbach &Amen directly to get updated numbers throughout the process. It was also asked how much money the Board would be spending moving forward if bonds weren't to be issued. Ms. Welkomer explained that neither they nor the other companies would be paid unless bonds were actually issued. Their fees are built into the price of the bonds. President Foerster advised that he would work with Administrator Morefield and Treasurer Lynch on how we should proceed. A motion was made by Sergeant Clesen and seconded by Cheryl Kranz to recommend to the City Council that steps should be taken to work towards the approval of issuing bonds to pay off the unfunded liability for the Police Pension Fund. Vote: 5-ayes by unanimous roll call vote. 0-nays, 0-abstain, 0-absent. Motion carried. Motion to Adiourn A motion was made by Officer Fisher and seconded by Cheryl Kranz to adjourn the meeting at 3:32 p.m. Roll Call Vote: 5-ayes, 0-nays, 0-abstained. Motion carried. a J. C11-- Monte Johnson, Recording Secretary Jeff F rst� resident