Police Pension Minutes 2015 08-11-15 Yorkville Police Pension Fund Board
804 Game Farm Road
Yorkville,IL 60560
(630)553-4340
5:OOPM on August 11,2015
Police Department Conference Room
Minutes
Attachments:
Meeting Minutes for May 11, 2015 President/Secretary to sign
Monthly Treasurer's Reports May and June 2015
Bills for Payment
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Meeting Call to Order: 5:03pm by Fred DuSell
Roll Call: Present: Fred DuSell,Greg Sibenaller,Ryan Goldsmith,Ray Mikolasek,Rob Fredrickson
Guests:David Vaught and Dwight Ower,Mitchell,Vaught and Taylor; Larry DeBord,citizen;
Dan Pleckham,Yorkville police officer; Cary Collins,attorney.
Citizen Comments:Dan Pleckham-informed board that he intended to determine the cost to purchase back
pensionable time for his service in military and at Harvey Police Department.
Previous Meeting Minutes: May 11,2015
Corrections/Approval
Motion to Approve: Greg Sibenaller,2nd Ryan Goldsmith 4 ayes 0 Nays
Communications:IPPAC request for board member email addresses to send newsletter. Completed and returned.
Monthly Treasurer's Report:May and June 2015
Motion to Approve: Greg Sibenaller,2nd Ryan Goldsmith 4 Ayes 0 Nays
Bills for Payment:
MVT Management Fee: (Apr-Jun 2015) $ 3,118.00
From Schwab Acct: 3137-9036
Zabinski Consulting Services(May-June 2015) $ 316.67
Postage Reimbursement—City of Yorkville
(Jun-Jul) $ 6.80
Reimburse COY-IPPAC Conference Meal $ 55.95
Reimburse COY-IPPAC Conf. Lodging $ 1,013.70
IDOI Compliance Fee $ 1,119.73
IPPAC Annual Membership Dues $ 500.00
Collins and Radja:Attorney $ 750.00
Total Bills for Payment: $ 6,880.85
Motion to Approve: Greg Sibenaller,2nd Ryan Goldsmith; Roll Call Vote-Greg Sibenaller,Aye; Ryan Goldsmith,
Aye; Ray Mikolasek,Aye;Fred DuSell,Aye.
Investments:
Progress Reports from Mitchell,Vaught and Taylor.
Fixed portfolio lost$16,454(-0.47%)for the quarter. Losses attributed to rise in interest rates which resulted
in decrease in bond values. Short duration bonds outperformed long duration bonds,therefore losses were
minimized because portfolio has a large number of short duration bonds,namely corporate bonds. Going
forward,MVT will continue to favor a more duration neutral strategy to help offset some of the volatility in
the bond market.
Proposal regarding investment in index funds.
At the Board's request,MVT prepared a proposal to show how they could invest Pension Board funds in a
passively managed index fund account to help reduce the costs associated with an actively managed account.
MVT proposed investing 70%of funds allowed by statute to be invested in stocks,in the Vanguard Total
Stock Market,which is a domestic stock account. Additionally,25%would be invested in an international
account(Vanguard FTSE All World Ex-US ETF),and 5%in the Vanguard REIT ETF. The average annual
management fees on an example dollar amount of$2,475,000 would be$1,708(0.07%). MVT's fees would
be$990(0.04%)and custody fees would be$0, for a total of$2,698 (0.11%)annually based on that example
dollar amount. MVT stated they could invest funds among domestic,international,and REITs at whatever
percentages the Board desired.
Unfinished Business:
New Business: Officer Dan Pleckham requested calculations be performed to determine his contributions necessary
to buy back pensionable time from prior police and military service. Board voted to approve the calculations be
made. Motion to approve: Greg Sibenaller,2nd Ray Mikolasek 4 Ayes 0 Nays.
Personnel Changes and Additions:
None
Additional Business:
Proposal to allow Treasurer to reimburse United City of Yorkville for Pension Board postage at any time when
dollar amount does not exceed$10. Motion to approve: Ray Mikolasek,2nd Ryan Goldsmith 4 Ayes 0 Nays.
Citizen Comments:
Next meeting:
November 10,2015 5:OOpm
Motion to Adjourn: 5:46pm Greg Sibenaller,Ray Mikolasek 4 Ayes 0 Nays
2015 meeting dates: Feb 10,May 11 (Monday),Aug 11,Nov 10
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President Secretary