Police Pension Packet 2009 02-10-09 Yorkville Police Pension Fund Board C.FlL1C
804 Game Farm Road
Yorkville, 1160560
(630) 553-4340
5:OOPM on Feb 10, 2009
Police Department Conference Room
Agenda
Attachments:
Meeting Minutes for Aug 12, 2008,Nov 18, 2008
Monthly Treasurer's Report as of Jan 31, 2009
Bills for Payment
TW Actuary Summary dated Dec. 22, 2008
Pages from Fiscal 2007--2008 Audit
Meeting Call to Order:
Roll Call:
Previous Meeting Minutes: Aug 12, 2008, Nov 18, 2008
Corrections/Approval
Motion to Approve:
Communications:
Monthly Treasurer's Report: as of Jan. 31, 2009
Motion to Approve:
Real Estate Tax Levy for Fiscal 2008-09: $300,000.00
Checks Received:
July 22, 2008: $ 22,412.78
Aug 12, 2008: $ 122,756,89
Oct 14, 2008: $ 9,278.07
Oct 142008: $ 124,614.00
Total $ 279,061.74
Bills for Payment:
MVT management fees:
From Schwab#3137-9036 (Oct—Dec) $ 3,172.00
Cary Collins:Attorney(Oct, Nov, Dec) $ 600.00
William Powell $ 300.00
Lauterbach& Amen LLP
(IRS Pension Plan Compliance Filing Fee) $ 400.00
Total Bills for Payment: $ 4472.00
Motion to Approve:
Investments:
Progress Reports from Mitchell, Vaught, and Taylor
Money transfers from YNB to Charles Schwab &Co
Pay to: Charles Schwab & Co.
Mail to: Institutional Client Service Group
P. O. Box 628290
Orlando, F132862-9906
Unfinished Business:
House Bill 4603: Creditable Service Buyback
Municipal Public Safety Pension Reform Act
Pension Fund Admission Applications for
Christoper Hayes
Officer Pleckham to review personnel files
New Business:
TW Actuary Summary Dated Dec. 22, 2008
Copies of Fiscal 2007—2008 Audit
Additional Business:
Adjournment: Motion to Approve:
Year 2009 Meeting Dates: Feb 10, May 12, Aug 11, Nov 10 file:PolicelagendMagenda Feb 10 2009.doc
Yorkville Police Pension Fund Board
804 Game Farm Road
Yorkville, 1160560
(630) 553-4340
5:OOPM on Nov 18, 2008
Police Department Conference Room
Minutes
Approved: Feb 10, 2009
Attachments:
Meeting Minutes for Aug 12, 2008
Monthly Treasurer's Report as of Oct 31,2008
House Bill 4603: Creditable Service Buyback
Revised Procedure for Early Withdrawal of Contributions
Bills for Payment
Municipal Public Safety Pension Reforms Act
----------------------------------------------------------------------------------------------------------------------------------
Meeting Call to Order: The meeting was called to order at 5:10PM
Roll Call:Present:Chief Martin, Todd Overmyer, Larry Debord, Greg Sibenaller,
Attorney Collins, Treasurer Powell
Absent: Officer Pleckham
Guests: Dwight Ower, MVT;John Mitchell, MVT
Previous Meeting Minutes: Aug 12, 2008 Moved to next meeting
Communications:None
Monthly Treasurer's Report: as of 10/31/2008 Attached
As of Oct 31"'Total Assets were$2,582,037.94
Motion to Approve: Mr. Debord made a motion(2°d Mr. Overmyer)to approve the report as read.
Ayes:4 Nays:0
Real Estate Tax Levy for Fiscal 2008-09: $300,000.00
Checks Received:
July 22, 2008: $ 22,412.78
Aug 12, 2008: $ 122,756.89
Oct 14, 2008: $ 9,278.07
Oct 14 2008: 124 614.00
Total $ 279,061.74
Bills for Payment:
MVT management fees:
From Schwab#3137-9036 (Oct—Dec) $ 3,108.00
Cary Collins: Attorney (Oct,Nov, Dec) $ 600.00
Kelly Zabinski: IDOI 2008 Filing $ 1,275.00
William Powell $ 287.50
Transfer of Funds for Scott Fiandalo $2,487.99
Total Bills for Payment $7,758.49
Motion to Approve: Mr. Debord made a motion(2°d Mr.Overmyer)to approve payment. Ayes: 4 Nays: 0
Investments:
Progress Reports from Mitchell, Vaught, and Taylor
Dwight Owes handed out.and reviewed the quarterly report. The fund was down 3.7% in the quarter but
still up 2.69%since started. As of Sept 30d`the fund had 16.5% Equities, and 66.0%Fixed Income.
Money transfers from YNB to Charles Schwab&Co
Old Second Bank Checking balance after bill payment as of 11/18/08 is $206,892.10.Per the Board's
direction$167,000.00 will be transferred to Schwab.
Pay to: Charles Schwab & Co.
Mail to:Institutional Client Service Group
P. O. Box 628290
Orlando, Fl 32862-9906
Unfinished Business:
Fund Management Presentation by State Bank of Illinois
The Board decided not to use the services of the State Bank of Illinois at this time.
Pension Fund Admission Applications for John Hunter and Behr R Pfizenmaier were signed.
Officer Pleckham to review personnel files
IDOI Filing Status: The IDOI filing was completed on time. Mr. Debord and Treasurer Powell signed the
Certification Form and placed it in Officer Pleckham's mailbox for his signature. Once signed the form will
be mailed to IDOL
New Business:
Year 2009 Meeting Dates: Feb 10, May 12, Aug 11, and Nov 10:
Motion to Approve: Chief Martin made a motion(2nd Mr. Debord)to approve the dates. Ayes: 4 Nays: 0
Revised Procedure for Early Distributions: Treasurer Powell reviewed the revised procedure. Attorney
Collins stated it looked complete.
Motion to Approve: Chief Martin made a motion(2nd Mr. Debord)to approve the procedure. Ayes:4 Nays:0
New Officer: Christoper Hayes
House Bill 4603: Creditable Service Buyback: This Bill affects a couple of officers. They
will be notified of their options and will be told to contact Tim Sharp if they have any questions.
Municipal Public Safety Pension Reforms Act: This is a new requirement stating Pension Fund status as
of the end of the fiscal year. All of the information is readily available in the Actuarial Valuation Report.
The report has been signed by President Debord and will be submitted to the City Council at the next
meeting.
TAX DETERMINATION LETTERS FROM THE IRS: Attorney Collins stated that as a governmental
body the Police Pension Fund is exempt from this requirement.
Additional Business:None
Adjournment: Mr. Debord made a motion(2"d Mr. Sibenaller)to adjourn. Ayes:4 Nays: 0
Year 2009 Meeting Dates: Feb 10, May 12, Aug 11, Nov 10: @ 5PM
file:PolicelagendalMinutes Nov 18 2008.doc
United City of Yorkville
800 Game Frame Road
Yorkville, Illinois 60560
1836 Phone 630-553-1887 William Powell
Fax: 630-553-7575 Treasurer
�,kE
Treasurer's Report
(As of ran 30, 20091
Dollars Percent
Cash: YNB (1) 54,627.67
Schwab _ _ 205303.28
Total Cash: $260,330.95 10.0%
Schwab:
Fixed Securities: 1,404,533.57 53.8%
Equities: (2) 944,986.95 _ 36.2%
Total Assets: $ 2,609,851.47
2007 Tax Levy Estimate: (paid in 2408) $300,000.00
Actual Payments:
July 22, 2008: $ 22,412.78
Aug 12, 2008: $ 122,756.89
Oct 14,2008: $ 9,278.07
Oct 14,2008: $ 124,614.00
Nov 10, 2008: $ 6456.61
Dec 22, 2008: $ 11,529.53
Dec 22 2008: 279 86
Total $ 297,327.74
Estimated monthly deposits: $13,000.00
Estimated monthly retiree payments: $ 9344.00
William Powell
Treasurer
United City of Yorkville File:T Report 013009.doc
(1) The board has established a$40,000.00 minimum balance
(2) The maximum equity percent is 45%by statue
&MiLchell,
Vaught
Tavlor Inc.
Investment Advisors
53 W. Jackson Suite 905
Chicago, I L 60604
312-922-1717 phone
312-922-1772 fax
January 6, 2008
Statement for First Quarter 2009
For Services Rendered
To: Yorkville Police Pension Fund
800 Game Farm Road
Yorkville, I L 60560
Investment Management Fee
First Quarter 2009
January 1, 2009 - March 31, 2009
December 31, 2008 Portfolio Value: $2,672,460.87
Quarterly Fee
First$2 Million at 0.50% _ $2,500.00
Next$3 Million at 0.40% _ $672.46
Total Fee: $3,172
Allocate bill to individuals within group:
Name Acct. Number Portfolio Value Bill Amount
Yorkville Bonds 3137-9036 $1,551,547.35 $1,842
Yorkville Equities 3139-4036 $1,120,913.52 $1,330
Account 3137-9036 at Charles Schwab & Co., Inc. has been charged $3,157. Charles Schwab & Co., Inc.,
as custodian, makes no independent verification of the calculation of the billing amount,
which is the client's reponsibility.
Your Bond account was charged an additional Prime Broker fee on December 31, 2008 due to a trade settlement
problem.
We have included a refund of that fee in this bill. If you have an questions, please call us at the number above.
Law Offices of Cary J. Collins, P.C. Invoice
2200 West Higgins Road Suite 155
Hoffinan Estates, IL 60169 Date Invoice#
Telephone 847-519-0010 Fax 847-519-0016 12/16/2008 3899
Bill To
Yorkville Police Pension Board
Atten: Chief Harold Martin
804 Game Farm Road
Yorkville IL 60560
Terms
Due on receipt
Description Amount
Quarterly retainer for the months of: 600.00
JANUARY,FEBRUARY AND MARCH,2009
Total $600.00
Please make checks payable to the LAW OFFICES OF CARY J.COLLINS
Payments/Credits $0.00
Balance Due $600.00
in January. The$400 is projected to be sufficient to cover the coalition's two IRS applications,
legal fees, accounting fees and plan document updates for the next five years.
Scott Brandt, Division of Insurance will be the applicant and keeper of the two IRS Determination
letters.
Second most important thing you can do is notify me if you receive an "IRS Pension
Survey Questionnaire". This is a very important document that needs to be accurately
completed to avoid further complications for your pension board and possibly our filing. I trust the
coalition will provide guidance.
Note the timeline is short and the deadline is fast approaching, we will continue to keep you
posted as"the project° moves forward. Please feel free to.ask questions if I missed something.
Thanks in advance for your support of°The Project".
Michael Peterson
Direct: 847.986.3223
/-o ttr L
Police Pension A,ccotinting Sen+iices Log
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Employe contributions, YNB Bank, Merrill Lynch data entry
Quarterly member contributions letters
State of Minds internet filing for fiscal year end
file; Police Pension Time Log.xis
H 4603
�
2008
L G E ISI.ATIVE
REPORT
95TH General Assembly
gic
);p
0
ILLINOIS
MUNICIPAL LEAGUE
. ioe
TABLE OF CONTENTS
Introduction. ...............................................................................................................1
NewPublic Acts. .......................................................................................................1
A. Adjudications
PROCEDURES FOR ADMINISTRATIVE REVIEW(P.A.95-831)........................................................................1
EFFECT OF POST-.JUDGMENT MOTIONS ON THE ENFORCEMENT OF.JUDGMENTS
IN NON-.JURY TRIALS(P.A.95-902)....................................................................................................1
DAMAGES AND ATTORNEYS FEES UNDER THE PARENTAL RESPONSIBILITY
LAW(P.A.95-914).............................................................................................................................2
UNSAFE,DANGEROUS,OR ABANDONED BUILDINGS(P.A.95-931)..............................................................2
DENIAL OF BAIL FOR TERRORIST THREAT(P.A.95-952).............................................................................2
B. Elections
CHANGES TO THE FORM OF BALLOTS(P.A.95-862)............................ .....2
.................................................
MEETING LOCATIONS FOR LOCAL ELECTORAL BOARDS(P.A.95-872)........................................................3
RANKED ABSENTEE BALLOTS FOR MILITARY VOTERS(P.A.95-889)...........................................................3
CLARIFIED DEFINITION OF"LOCAL POLITICAL COMMITTEE(P.A.95-0963)...................................................3
C. Environment
THE UNIFORM ENVIRONMENTAL COVENANTS ACT(P.A.95-845)................................................................4
D. Labor and Personnel
THE CIVIL AIR PATROL LEAVE ACT(P.A.95-763)......................................................................................4
RESTRICTIONS ON THE USE OF GENETIC INFORMATION BY EMPLOYERS(P.A.95-927)................................4
WAIVER OF EXAMINATION REQUIREMENTS FOR PRIOR POLICE OFFICERS(P.A.95-931)..............................5
OPTION TO REQUIRE FIREFIGHTERS TO BE LICENSED AS EMT'S(P.A.95-935)..........................................5
REIMBURSEMENT, UPON CONVICTION,OF PAY RECEIVED WHILE
ON ADMINISTRATIVE LEAVE(P.A.95-947)...........................................................................................5
SELECTION OF PROMOTIONAL ASSESSORS FOR FIREFIGHTER PROMOTIONS(P.A.95-956)..........................5
E. Municipal Authority
LOCAL OWNERSHIP AND OPERATION OF WIND FARMS(P.A.95-805)..........................................................6
RESTRICTION ON OFFERING WASTE-COLLECTION FRANCHISE AGREEMENTS(P.A.95-856) ........................6
CONTRACT REQUIREMENTS FOR PRIVATE SEWAGE DISPOSAL SYSTEMS(P.A.95-919)...............................6
QUICK TAKE AUTHORITY FOR CHAMPAIGN AREA ROAD CONSTRUCTION(P.A.95-0974).............................6
F. Pensions and Benefits
LIMITED CREDIT TRANSFER BETWEEN DOWNSTATE POLICE AND IMRF(P.A.95-812).................................6
IMRF BOARD VOTING BY ANNUITANT TRUSTEE.(P.A.95-890)....................................................................7
PUBLIC SAFETY PENSION REFORM(P.A.95-950) ....................................................................................7
EXPANDS HEALTH COVERAGE OPTION TO DEPENDENTS UNDER THE AGE OF 26 OR AGE 30 FOR VETERANS
(P.A.95-0958) ..................................................................................................................................7
INSURANCE COVERAGE FOR SERVICES OF MARRIAGE OR FAMILY THERAPISTS(P.A.95-0972) ...................7
INSURANCE COVERAGE FOR EATING DISORDERS(P.A.95-0973)...............................................................8
INSURANCE COVERAGE FOR SHINGLES VACCINE(P.A.95-0976)............................................I...................8
1
E. Municipal Authority
LOCAL OWNERSHIP AND OPERATION OF WIND FARMS
P.A. 95-805—EFFECTIVE AUGUST 12, 2008
(HB 4646-PRITCHARD 1 NOLAND)
Public Act 95-805 allows counties and municipalities to own or operate wind farms, either
jointly or individually, so long as it reduces the energy or operating cost of the county or
municipality. Counties and municipalities may request assistance from the Illinois Power Agency
in obtaining financing options for wind farms.
RESTRICTION ON OFFERING WASTE-COLLECTION FRANCHISE AGREEMENTS
P.A. 95-856-EFFECTIVE OCTOBER 1, 2008
(SB 2297-CLAYBORNE 1 HOLBROOK)
Public Act 95-856 places certain notification and hearing requirements on any municipality
issuing for the first time a non-residential waste collection franchise agreement. If a municipality
is going to offer a franchise agreement, the municipality must hold a hearing, notify all known
garbage collectors of non-residential waste of that hearing and give a minimum of 15 months'
advance notice that a franchise agreement will be considered to all current garbage collectors of
nom-residential waste.This legislation also preempts home rule.
CONTRACT REQUIREMENTS FOR PRIVATE SEWAGE DISPOSAL SYSTEMS
P.A. 95-919—EFFECTIVE AUGUST 26, 2008
(SB 2034-KOEHLER 1 LEITCH)
Public Act 95-919 amends the Private Sewage Disposal Licensing Act to provide that, if a
homeowner maintains a private sewage disposal system within a unit of local government, that
unit of local government may require the homeowner to provide verification of a valid contract
with a licensed private sewage disposal system installation contractor.
QUICK TAKE AUTHORITY FOR CHAMPAIGN AREA ROAD CONSTRUCTION
P.A. 95-0974— EFFECTIVE SEPTEMBER 22, 2008
(HB 3106—Jakobsson 1 Frerichs)
House Bill 3106 provides that quick-take proceedings may be used for one year for the City of
Champaign, the Village of Savoy, and Champaign County for right-of-way needed for road
construction.
F. Pensions & Benefits
LIMITED CREDIT TRANSFER BETWEEN DOWNSTATE POLICE AND IMRF
P.A. 95-812—EFFECTIVE AUGUST 13,2008
(HB 4603--BEISER 1 HAINE)
Public Act 95-812 allows an individual who originally transferred credit under P.A. 94-356
(effective in 2005) to transfer additional pension service credit between a downstate and
suburban police pension fund (Article 3) and the Illinois Municipal Retirement Fund (Article 7).
The transfers would be allowable from Article 3 to Article 7, and vice versa. ,Service credit
would only be transferable prior to January 1, 2010. Employees seeking to transfer credit would
6
pay an amount equal to: (1) employer and employee contributions owed as if the employee had
been a member of the recipient fund; and (2) interest at the rate of 6% per year, compounded
annually, minus the total amount transferred between funds plus interest on the difference at the
rate of 6%per year compounded annually.
IMRF BOARD VOTING BY ANNUITANT TRUSTEE
P.A. 95-890—EFFECTIVE AUGUST 22, 2008
(SB 1957-CLAYBORNE I HOLBROOK)
Public Act 95-890 amends the IMRF Article of the Illinois Pension Code. The new law gives the
annuitant trustee the right to vote on any and all actions before the board of trustees, and it
increases from 4 to 5 the number of concurring votes necessary for every decision or action by
the board of trustees.
PUBLIC SAFETY PENSION REFORM
P.A.95-950—EFFECTIVE AUGUST 29, 2008
(HB 5088-BEAUBIEN 1 DEMUZIO-GARRETT)
Public Act 95-950 contains the pension reform legislation from IML's Legislative Agenda. The
legislation contains the following provisions: (1) vendor conflict-of-interest protections; (2)
vendor contract disclosure requirements; (3) pension board gift ban; (4) more frequent state
audits of pension funds; (5) state pension services fund anti-sweep provision; (6) anti-fraud
disability language; (7) public disclosure of local pension fund fiscal health; (8) municipal
verification of benefit calculations for police fiords; (9) more accurate cost impact estimates for
future pension legislation; and (10) regular studies on the fiscal conditions and unfunded liability
factors of the downstate and suburban police and fire pension funds by the independent
Commission on Governmental Forecasting and Accountability. The provisions of this bill were
taken from HB 4905 and SB 2090.
EXPANDS HEALTH CARE COVERAGE OPTION TO DEPENDENTS UNDER THE AGE OF 26 OR AGE
30 FOR VETERANS
P.A. 95-0958—EFFECTIVE JUNE 1, 2009
(HB 5285-JEFFERSON 1 KOTOWSKI)
House Bill 5285 initially required continuation of health insurance and municipal health self
insurance coverage for a dependent college student who takes a medical leave of absence or
reduces his/her course load due to a catastrophic illness or injury.
The bill was subject to an Amendatory Veto to expand the health care coverage option to any
unmarried dependent under the age of 26 and any unmarred dependent under the age of 30 who
served in the military. To be eligible for this coverage, the dependent must be an Illinois
resident.
INSURANCE COVERAGE FOR SERVICES OF MARRIAGE OR FAMILY THERAPISTS
P.A. 95-0972-EFFECTIVE SEPTEMBER 22, 2008
(H13 953-LANG I CLAYBORNE)
As passed by the General Assembly, House Bill 953 mandates that health insurance policies
cover certain services of licensed marriage and family therapists.
7
FACSIMILE#: ( 630 ) 553-1141
Number of pages (including this page): 4
Actuary
To: Mr. Bill Powell
Comments:
Re: Police Pension Fund
Bill:
Attached are the 511/08 preliminary actuarial results, the investment performance summary,
and the salary history for the Police Pension Fund. It was a good year for the Fund earning
over 7%. However, there are two additional members this year, the annual payroll increased
13.7% and the average salary increase was 12.1%. Thus, the Percent Funded has decreased
and the Tax Levy has increased.
Highlights
1. Investment return 7.88%.
2. Annual payroll increase: 13.7%; average increase: 12.1%.
3. New members: 5; Terminations 1; Retirements 2; Incidents of Disability 0.
4. Tax Levy has increased from 381,800 to 429,562 (12.5%).
5. Percent Funded has decreased from 37.7% to 35.6%.
As Always,
T. Sharpe
Timothy W. Sharpe, Actuary, Geneva, IL(630)262-0600
December 22, 2008
CITY OF YORKVILLE
Actuarial Valuation Results
POLICE 511107 5/j/08
Int: 7.5% Int: 7.5% Int: 7.0%a Int: 7.5%
Sal: 5.5% Sal: 5.5% Sal: 5.5% Sal: 5.0%
1. City Normal Cost 183,146 216,136 265,930 189,389
2. Accrued Liability 5,728,722 7,382,023 7,933,914 7,228,517
3. Assets 2,156,872 2,631,594 2,631,594 2,631,594
4. Unfunded Liability/(Surplus) 3,571,850 4,750,429 5,302,320 4,596,923
5. Amortization of UL 172,017 183,457 190,645 190,515
6. Interest for One Year 26,637 29,969 31,960 28,493
7. Tax Levy Requirement 8 4215-6z
(1+5+6)
8. Payroll 1,573,832 1,789,042 1,789,042 1,789,042
9. Percent Funded (3/2) 37.7% 35.6% 33.2% 36.4%
Timothy W. Sharpe, Actuary, Geneva, IL (630) 262-0600
December 22, 2008
CITY OF YORKVILLE
Police Pension Fund
Investment Performance 2003-2008
FYE 03 FYE 04 FYE 05 FYE 06 FYE 07 FYE 08
BOY Assets 58,32C 1,129,779 1,583,047 2,156,87
City Contribution 117,713 231,124 248,988 275,1
Officer 357,026 202,458 206,099 176,03
Contribution
Pension Payments 17,075 0 136,211
Expenses 68 7,712 11,39 21,675
Income 2,59 27,399 130,12 181,42
OY Assets 517,894 1,583,047 2,156,872 2,631,59
Annual Yield 0.90% 2.04% 7.21% 7.88%
-Year Yield 5.71%
2004-08)
Year Yield 4.51%
2003-08)
Timothy W. Sharpe, Actuary, Geneva, IL(630)262-0600
CITY OF YORKVILLE POLICE PENSION FUND SALARY HISTORY
I
Name 2003 Salary Increase 2006 Salami Increase 2007 Salary Increase 2008 Salary
Cahert,Glenn A 48,027 17.4% 56,395 3.6% 58,421 4.8% 61,198
Cemekee,Sarah 34,237 35.8°/ 46,506 9.4% 50,899, 9.20/6 55,582
Delaney, David W 40,622 49.36/6 60,653 4.1% 63,124 16.51/0 73,523
Molt,Stacey L 42,162 16.1%: 48,942 18.33 57,921 3.96/ 60,198
Groesch, Barry L 46,114 17.40/6' 54,132 5.9% 57,305 21.5% 69,600
Hart, Richard 50,752 19.5%` 60,649 19.8% 72,650 15.7% 84,050-
Helland,Jonathon L 40,622 20.00/; 48,732 16.1% 56,555: 3.90/6 58,787
Hilt,Larry J 51,750 19.96/61 62,052 0.6% 62,452; 16.8% 72,933_
Johnson,Jeffery 34,237 43.00%6 48,942 9.29. 53,4441 10.8% 59,198
Klingel,Terry A 41,392 46.5%6; 60.653 4.0% 63,076' 13.1% 71,347
Martin III,Harold O 72,010 26.8% 91,295 4.3% 95,246 19.90/6 114,200
Pleckham Jr, Daniel C 41,392 18.3%6; 48,982 16.09'0 56,805 6.0%6 60,198
Schwartzkopf, Donald P 62,109 18.1% 73,330 4.4% 76,5401 10.26/ 84,370
Stroup,Samuel J 39,3.95 24.20/ 48,941 17.8% 57,671: 21.60/6 70,250
Bledioe,-Jkolb 40,419 4.0% 42,0361 14.2%": 4$,021
Bozue, Stew M 44,399 8.90/6 48,3661 9.40/6.
Hart,Robbie J 1 46,506 9.4% 50,899 9.26/6 55,582
Jeleniewski,Andy C 45,594 11.6% 50,899, 9.20/6 55,582
McMahon,Patrick T 44,399 8.90/ 48,366 9.40/. 52,935
Mikolasek, Raymond P 44,399 J 8.96/ 48,366 9.40/6 52,935
Presnak,James R 46,506 33.30/6 62,000 15.6% 71,655.
Goldsmith,Ryan i 41,212. 14.20/6 47,080
Houghton,Andrew - I-- _ 42,0361, 0.0°/6 42,036
Ketchmark, Matthew 42,0361 14.20/ T 48,021
'Kolowski,Timothy _ 42,036 14.21/. 48,021
Carlyle,Mitchell 1 43,718
Grimes,Tom 43,718
Hunter,John --- T -r --- 43,716
Plizenmaler,Behr I 44,789
Poulos,Jordan _._-_ i _ 42,861
Average Increase 25.60/ 9.9% 1 12.1%
Timothy W. Sharpe, Actuary, Geneva, IL(630)262-0600
FISCAL 2en'q-0$ AuQcT
UNITED CITY OF YORKVILLE,ILLINOIS
Statement of Changes in Fiduciary Net Assets
Pension Trust-Police Pension Trust Fund
For the Year Ended April 30,2008 -PAc6Es F-p-A,A& AmPJUAL r,NAmC,aL lie
Additions
Contributions
Employer
S 275,144
Plan Members 176,036
Total Contributions 451,180
Investment Income
Net Appreciation in Fair Value
of Investments 60,773
Realized Gains 16,882
Dividend Income 16,037
Interest Income 87,736
Less Investment Expense (11,352)
Net Investment Income 1 70,076
Total Additions 621,256
Deductions
Salaries 113,548
Contributions Returned 22,663
Legal Expenses 3,000
Accounting Expenses 5,300
Administrative Expenses 2,023
Total Deductions 146,534
Change in Net Assets 474,722
Net Assets-Beginning of Year 2,156,872
Net Assets-End of Year S 2,631,594
See accompanying Notes to the Financial Statements,
28
r��L� C.A, eA+u Y L L
UNITED CITY OF YORKVILLE,ILLINOIS
Notes to the Financial Statements
April 30,2008
3. Deposits and Investments(Cont.)
B. Investments(excluding Pension Trust Fund)(Cont.)
Concentration of Credit Risk. The City's policy states that a variety of financial instruments and
maturities, properly balanced,will help to insure liquidity and reduce risk or interest rate volatility
and loss of principal. Diversifying instruments and maturities will avoid incurring unreasonable
risks in the investment portfolio regarding specific security types, issuers or individual financial
institutions. The City shall diversify to the best of its ability based on the type of funds invested and
the cash flow needs of those finds. The City places no limit on the amount the City may invest in
any one issuer.
C. Police Pension Investments
The Pension Trust Fund is authorized to invest in investments permitted under Section 3-135 of the
Illinois Police Pension Code(401LCS 511-101), which includes the following: (])interest-bearing
bonds or tax anticipation warrants of the United States, of the State of Illinois, or of any county,
township or Municipal Corporation of the State of Illinois; (2) insured withdrawable capital
accounts of State chartered savings and loan associations;(3)insured withdrawable capital accounts
of federal chartered savings and loan associations if the withdrawable capital accounts are insured
by the Federal Savings and Loan Insurance Corporation;(4)insured investments in credit union;(5)
savings accounts or certificates of deposit of national or state banks; (6) securities described in
section 1-113 of the Illinois Code;(7) contracts and agreements supplemental thereto providing for
investments in the general account of a life insurance company authorized to do business in the
State of Illinois; (8) separate accounts of a life insurance company authorized to do business in
Illinois, comprised of common or preferred stocks, bonds, or money market instruments; and (9)
Federal National Mortgage Association (FNMA) and Student Loan Marketing Association
(SLMA).
The Pension Trust Fund's primary objective in dealing with investments is safety, liquidity, and
return on investments. Safety is the foremost objective and investments shall be undertaken in a
manner that seeks to insure the preservation of the capital. The investment portfolio shall remain
sufficiently liquid to enable the Fund to meet all operating requirements that might be reasonably
anticipated. Assets will be invested to achieve attractive real rates of return.
38
UNITED CITY OF YORKVILLE,ILLINOIS
Notes to the Financial Statements
April 30,2008
3. Deposits and Investments(Cont.)
C. Police Pension Investments(Cont.)
The following schedule reports the fair values and maturities for Pension Trust Fund's investments
at April 30,2008:
Investment Maturities
Fair Less Than 1 to 5 6 to 10 More Than
Investment Type Value One Year Years Years 10 Years
Fixed Income Securities
U.S.Treasuries $ 740,219 75,539 438,578 226,102
Federal Home Loan Mortgages 457,206 115,652 149,383 192,171
Federal National Mortgage 460,314 145,681 1I6,027 116,851 81,755
Federal National Mortgage Association 194,848 144,435 50,413
Total Fixed Income Securities 1,852,587 481,307 703,988 309,022 358,270
Mutual Funds 698,323
Money Market Funds 12,179
Total Investments S 2t563,089
Interest Rate Risk, The Pension Trust Fund's investment policy states that no more than 5%of plan
assets shall be invested in illiquid, long-term investments. Such investments may include
certificates of deposits and guaranteed insurance contracts. Any other plan holding which would
have a noticeable impact on market price in whole or in part is also defined as illiquid.
Credit Risk. Credit risk is the risk that an issuer or other counterparty to an investment will not
fulfill its obligations. The Pension Trust Fund helps limit its exposure to credit risk by primarily
investing in securities issued by the United States Government and/or its agencies that are implicitly
guaranteed by the United States Government. The investments in the securities of the United States
Government agencies were all rated Triple A by Standard & Poor's and by Moody's Investor
Services, The Pension Trust Fund's policy prescribe to the "prudent person" rule which states,
"Investments shall be made with judgment and care, under circumstances then prevailing, which
persons of prudence,discretion and intelligence exercise in the management of their own affairs,not
for speculation,but for investment,considering the primary objective of safety as well as the second
objective of the attainment of market rates of return."
Custodial Credit Risk. For an investment, custodial credit risk is the risk that, in the event of the
failure of the counterparty, the Pension Trust Fund will not be able to recover the value of its
investments or collateral securities that are in the possession of an outside party. The Pension Trust
Fund's investment policy does not state specific collateral requirements.
39
UNITED CITY OF YORKVILLE,ILLINOIS
Notes to the Financial Statements
April 30,2008
3. Deposits and Investments(Cont.)
C. Police Pension Investments(Cont.)
Concentration of Credit Risk. There is a risk of loss attributed to the magnitude of the Fund's
investment in a single issuer. The Fund does not have a formal policy with regards to concentration
risk for investments. As of April 30,2008,the Pension Trust Fund did not have over 5%of net plan
assets invested in any agency securities or equities. Although agency investments represent a large
portion of the portfolio, the investments are diversified by maturity dates and are backed by the
issuing organization.
4. Capital Assets
Governmental Activities
Restated Baiances
Balance,May I April 30,
2007 Additions Deletions 2008
Capital Assets Not Being Depreciated
Land S 28,805,610 550,000 29,355,610
Construction in Progress 9,323,066 3,186,350 (8,606,251) 3,903,165
38,128,676 3,736,350 (8,606.251) 33,258,775
Capital Assets Being Depreciated
Buildings 5,131,405 8,606,251 (10,000) 13,727,656
Equipment 3,952,547 257,269 (292,239) 3,917,577
Vehicles 2,480,675 370,452 2,851,127
Infrastructure 24,004,961 1,804,875 25,809,836
35,569,588 11038,847 (302,239) 46,306,196
Less Accumulated Depreciation For
Buildings 1,106,241 116,972 I,223,213
Equipment 1,273,101 340,946 (9,335) 1,604,712
Vehicles 1,437,552 317,082 (279,298) 1,475,336
Infrastructure 7,598,410 709,032 8,307,442
11,415,304 1,484,032 (288,633) 12,610,703
Total Capital Assets Being
Depreciated,Net 24,154,284 9,554,815 (13,606) 33,695,493
Governmental Activities Capital
Assets,Net $ 62,282,960 13,291,165 (8,619;857) 66,954,268
40
UNITED CITY OF YORKVILLE,ILLINOIS
Notes to the Financial Statements(Cont.)
April 30,2008
10. Defined Pension Benefit Plans(Cont.)
A. Illinois Municipal Retirement Fund
Funded Status and Funding Progress
As of December 31, 2007, the most recent actuarial valuation date,the Regular plan was 100.81%
funded. The actuarial accrued liability for benefits was$4,104,243 and the actuarial value of assets
was $4,137,504, resulting in an overfunded actuarial accrued liability (UAAL) of$(33,261). The
covered payroll (annual payroll of active employees covered by the plan) was$3,271,273 and the
ratio of UAAL to the covered payroll was (1 9/6). The schedule of funding progress, presented as
Required Supplementary Information following the Notes to the Financial Statements on page 64,
presents multi-year trend information about whether the actuarial value of plan assets is increasing
or decreasing over time relative to the actuarial accrued liability of benefits.
B. Police Pension
During fiscal year 2002, the City and members of the police force began making contributions to
the newly formed Police Pension Fund. The following is a description of the plan:
Plan Description:
Police sworn personnel are covered by the Police Pension Fund, which is a defined benefit single-
employer pension plan. Although this is a single-employer pension plan, the defined benefits and
employee and employer contributions levels are governed by Illinois Compiled Statutes (40 I.LCS
5/3) and may be amended only by the Illinois legislature. The City accounts for the plan as a
pension trust fund. At April 30,2007,the Police Pension Fund membership consisted of:
Retirees and Beneficiaries Currently Receiving Benefits
and Terminated Employees Entitled to Benefits but Not
Yet Receiving Them 0
Current Employees
Vested 12
Nonvested 16
Total 2A
The following is a summary of the Police Pension Fund as provided for in Illinois Compiled
Statutes.
The Police Pension Fund provides retirement benefits as well as death and disability benefits.
Employees attaining the age of 50 or more with 20 or more years of creditable service are entitled to
receive an annual retirement benefit of one-half of the salary attached to the rank held an the last
day of service, or for one year prior to the last clay, whichever is greater. The pension shall be
increased by 2% of such salary for each additional year of service over 20 years up to 30 years, and
1% of such salary for each additional year of service over 30 years,to a maximum of 75%of such
salary. Employees with at least 8 years but less than 20 years of credited service may retire at or
after age 60 and receive a reduced benefit.
The monthly pension of a police officer who retired with 20 or more years of service after
January 1, 1977, shall be increased annually, following the first anniversary date of retirement and
be paid upon reaching the age of at least 55 years, by 3% of the original pension and 3% simple
interest annually thereafter.
60
UNITED CITY OF YORKVILLE,ILLINOIS
Notes to the Financial Statements(Cant.)
April 30,2008
10. Defined Pension Benefit Plans(Cant.)
13. Police Pension(Cont.)
Summary of Significant Accounting Policies and Plan,4sset Matters
Basis of Accountine —The financial statements are prepared using the cash basis of accounting.
Employee contributions are recognized as additions in the period in which employee services are
performed.
Method Used to Value Investments--Investments are reported at fair value. Short-term investments
are reported at cost,which approximates fair value. Investment income is recognized when earned.
Gains and losses on sales and exchanges of fixed-income securities are recognized on the
transaction date.
Contributions
Covered employees are required to contribute 9.91%of their base salary to the Police Pension Fund.
If an employee leaves covered employment with less than 20 years of service, accumulated
employee contributions may be refunded without accumulated interest. The City is required to
contribute the remaining amounts necessary to finance the plan as actuarially determined by an
enrolled actuary at the Illinois Department of Insurance. Future administrative costs are expected to
be financed through investment earnings.
C. Annual Pension Costs
Employer contributions have been determined as follows:
Illinois
Municipal Police
Retirement Pension
Actuarial Valuation Date December 31, May 1,
2007 2007
Actuarial Cost Method Entry Age Entry Age
Normal Normal
Asset Valuation Method 5 Year Market
Smoothed Market
Amortization Method Level Percentage Level Percentage
of Payroll of Payroll
Amortization Period 25 Years 30 Years
Closed Closed
61
UNITED CITY OF YORKVILLE,ILLINOIS
Notes to the Financial Statements(Cont.)
April 30,2008
10. Defined Pension Benefit Plans(Cont.)
C. Annual Pension Costs(Cont-)
Illinois
Municipal Police
Retirement Pension
Significant Actuarial Assumptions:
a) Rate of Return on Present and Future 7.50% 7.50%
Assets Compounded Compounded
Annually Annually
b) Projected Salary Increase-Attributable 4.00% 5.50%
to Inflation Compounded Compounded
Annually Annually
c) Additional Projected Salary Increases- .40%-10% Not Available
S eniority/Merit
The net pension obligation is the cumulative difference between the APC and the contributions
actually made. Employer annual pension costs (APC), actual contributions and the net pension
obligation(NPO)are as follows:
Illinois
Illinois
Calendar Municipal Fiscal Police
Year Retirement Year Pension
Annual Pension Cost(APC) 2005 S 175,120 2005 N/A
2006 202,667 2006 231,960
2007 248,944 2007 231,991
Actual Contribution 2005 I75,120 2005 206,231
2006 202,667 2006 231,124
2007 248,944 2007 248,988
Percentage of APC 2005 100% 2005 N/A
Contributed 2006 100% 2006 99.6%
2007 100% 2007 107.3%
Net Pension Asset(Obligation) 2005 2005 NIA
2006 2006 (836)
2007 2007 16,161
N/A — The police pension fund was formed during fiscal year 2002; no actuarial valuation was
performed for fiscal year 2005.
62
UNITED CITY OF YORKVILLE,ILLINOIS
Notes to the Financial Statements(Copt.)
April 30,2008
10. Defined Pension Benefit Plans(Cont.)
C. Annual Pension Costs(Cont.)
The net pension asset(obligation)has been calculated as follows:
Police
Pension
Annual Required Contributions S 231,960
Interest on Net Pension Obligation 63
Adjustment to Annual Required Contribution (32)
Annual Pension Cost 231,991
Contributions Made 248,988
Increase in Net Pension Asset(Obligation) 16,997
Net Pension Obligation,Beginning of Year (836)
Net Pension Asset,End of Year $ 16,161
11. Risk Management
The City is exposed to various risks of loss related to torts;theft of, damage to, and destruction of assets,
errors and omissions;injuries to employees; and natural disasters. These risks are covered by commercial
insurance purchased from independent third parties. The City also purchased its employee health and
accident insurance from commercial carriers. Settled claims from these risks have not exceeded
commercial insurance coverage for the past three years. There were no significant reductions in insurance
coverage during the fiscal year ended April 30,2008.
63