Police Pension Fund Packet 2006 02-14-06 YORKVILLE POLICE PENSION FUND BOARD
804 Game Farm Road
Yorkville, IL 60560
(630) 553-4340
AGENDA
3:30 p.m. on Tuesday, February 14, 2006
Police Department Conference Room
Meeting Call to Order: 3:30 p.m.
Roll Call:
Previous Meeting Minutes: Corrections/Approval:
November 14, 2005
Communications:
Treasurer's Report:
Bills for Payment:
Unfinished Business:
MVW Fund Management Firm
Actuarial Study by Tim Sharp
New Business:
Additional Business:
Adj ournment:
Next Meeting:
Treasurer's Report
(As of Jan 31, 2005)
Transfers from Merrill Lynch to Schwab
Cash: $ 451,430.20
Mutual Funds
1959.00 Shs of Davis Venture Fd @ 34.50/sh $ 67,5,85.50
Partial shares sold
1158.00 Shs of Oppenheimer Capital @ 44.53/sh $ 51,565.74
Partial shares sold
Government Securities(Face Value Amount) $825,000.00
As of Jan 31,2006:
Cash: YNB $ 73,917.08
Schwab:
U S Government Securities: $1,274,648.10
Mutual Funds: $ 142,047.97
Total Assets: $ 1,490,613.15
Innvestment transactions from last meeting (Nov 14, 2005)
Sales: None
Purchases: None
Estimated Funds Available for investment:
Approx: $70,000.00
Gt/
William Powell
Treasurer
United City of Yorkville File:T Report 013106.doc
F DEC 2 7 2005
YORKVILLE POLICE PENSION FUND
VALUATION BALANCE SHEET
12/06/2005 04:30:47
SHOWING ASSETS AND LIABILITIES OF THE FUND IN
ACCORDANCE WITH ACTUARIAL RESERVE REQUIREMENTS
AS OF APRIL 30, 2005
NET PRESENT ASSETS. . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .:.. . . . . . $ 1,144,464
DEFERRED ASSET (UNFUNDED ACCRUED LIABILITY) . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,170,277
TOTAL ASSETS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,314,741
LIABILITIES
RESERVES FOR ANNUITIES AND BENEFITS IN FORCE
PRESENT VALUE OF -
SERVICE RETIREMENT ANNUITIES. . . . . . . . . . 0 INDIVIDUALS $ 0
DISABILITY ANNUITIES. . . . . . . . . . . . . . . . . . 0 INDIVIDUALS 0
WIDOWS AND PARENTS ANNUITIES. . . . . . . . . . . 0 INDIVIDUALS 0
CHILDRENS ANNUITIES. . . . . . . . . . . . . . . . . . . . 0 INDIVIDUALS 0
DEFERRED ANNUITIES. . . . . . . . . . . . . . . . . . . . . 0 INDIVIDUALS 0
HANDICAPPED ANNUITIES. . . . . . . . . . . . . . . . . . 0 INDIVIDUALS 0
TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0
ACCRUED LIABILITIES FOR ACTIVE PARTICIPANTS. . . . . . . . . . . . . 23 INDIVIDUALS $ 4,314,741
SURPLUS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0
TOTAL LIABILITIES AND SURPLUS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,314,741
THIS REPORT IS PROVIDED TO YOU AS PART OF THE PUBLIC PENSION DIVISION
ADVISORY SERVICES UNDER SECTION 1A-106 OF THE ILLINOIS PENSION CODE.
SCOTT J. BRANDT
STATISTICAL SERVICES, PUBLIC PENSION DIVISION
ILLINOIS DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
DIVISION OF INSURANCE
FUND NO: 3335 BID NO: 20050411
YORKVILLE POLICE PENSION FUND
ACTUARIALLY DETERMINED TAX LEVY
12/06/2005 04:30:47
ACTUARIALLY DETERMINED AMOUNT TO PROVIDE THE EMPLOYER
NORMAL COST BASED ON THE ANNUAL PAYROLL OF ACTIVE
PARTICIPANTS AS OF APRIL 30, 2005. $ 177,948
PERCENT OF EMPLOYER NORMAL COSTS TO TOTAL ANNUAL
SALARIES OF $ 1,171,102 IS 15.190%.
PERCENT OF TOTAL NORMAL COSTS TO TOTAL ANNUAL
SALARIES OF $ 1,171,102 IS 25.1001.
AMOUNT NECESSARY TO AMORTIZE THE UNFUNDED ACCRUED
LIABILITY OF $ 3,170,277 AS DETERMINED
BY THE STATE OF ILLINOIS DEPARTMENT OF FINANCIAL AND
PROFESSIONAL REGULATION OVER THE REMAINING 37.0000
YEARS AS CONTEMPLATED BY SECTION 3-127 OF THE ILLINOIS
PENSION CODE. 110,781
CREDIT FOR SURPLUS 0
TOTAL SUGGESTED AMOUNT OF TAX LEVY TO ARRIVE AT
THE ANNUAL REQUIREMENTS OF THE FUND AS CONTEMPLATED
BY SECTION 3-125 OF THE ILLINOIS PENSION CODE. *$ 288,729
*THE ABOVE FIGURE IS THE SUGGESTED AMOUNT WHICH SHOULD BE OBTAINED BY
THE FUND FROM THE MUNICIPALITY EXCLUSIVE OF ANY OTHER ITEMS OF INCOME,
SUCH AS, INTEREST ON INVESTMENTS, CONTRIBUTIONS FROM PARTICIPANTS, ETC.
THESE ITEMS HAVE ALREADY BEEN TAKEN INTO CONSIDERATION IN ARRIVING AT
THIS AMOUNT.
ACTUARIAL INFORMATION
FUNDING METHOD USED ENTRY AGE NORMAL COST
AMORTIZATION METHOD USED LEVEL PERCENTAGE OF PAYROLL
IN ACCORDANCE WITH SEC 3-127
OF THE IL PENSION CODE.
INTEREST RATE ASSUMPTION 7.0%
MORTALITY RATE ASSUMPTION 1971 GROUP ANNUITY
DECREMENT ASSUMPTION OTHER THAN MORTALITY EXPERIENCE TABLES
SALARY PROGRESSION ASSUMPTION 5.5%-
STATUS OF SOCIAL SECURITY IN ASSUMPTION NONE
THE ATTAINED AGE AT TIME OF DISABILITY OR RETIREMENT, SEX, ANNUAL
SALARY OR PENSION, AND COMPLETED YEARS OF SERVICE OF EACH INDIVIDUAL
PARTICIPANT AS OF THE DATE OF THE VALUATION BALANCE SHEET IS USED IN
CALCULATING THE LIABILITIES OF THE FUND. THE ACTUARIAL ASSUMPTIONS
USED IN DETERMINING THE ABOVE AMOUNTS ARE BASED ON ALL OF THE ARTICLE
3 FUNDS IN THE STATE OF ILLINOIS IN AGGREGATE, NOT ON EACH FUND
INDIVIDUALLY. THE FUND SPECIFIC INFORMATION USED IN THE PRODUCTION OF
THIS DOCUMENT WAS PROVIDED TO THE ILLINOIS DEPARTMENT OF FINANCIAL AND
PROFESSIONAL REGULATION BY YOUR PENSION FUND BOARD OF TRUSTEES THROUGH
THE FUND'S ANNUAL STATEMENT FILING.
FUND NO: 3335 BID NO: 20050411
Police Pension Accounting Services Log for Fiscal 2005-2006
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Agenda, Meeting Mintues
Employee contributions, YNB Bank, Merrill Lynch data entry
Quarterly member contributions letters
State of Illinois internet filing for fiscal year end
file: Police Pension Time Log.xls
/* Crowe CROWE CHIZEK AND COMPANY LLC P.O.BOX 145415 CINCINNATI,OH 45250-9791
Please use P.O.Box address for payments only.
City of Yorkville November 30, 2005
Traci Pleckham
800 Game Farm Road INVOICE NO: 728-1408370
Yorkville, IL 60560-9999 TERMS:PAYABLE UPON RECEIPT
Acct No.257361.007(PF#989768)
F.E.I.N.35-0921680
PROFESSIONAL SERVICES,
Time charges incurred through November 15, 2005 in connection with
Police Pension IDOI filing. $ 1,001.15
D'EC 01 2005
1 V
01\
If you have any questions concerning this invoice,please call the Billing Department at(630)574-1040.
k f
Law Offices of Cary J. Collins, P.C. Invoice
2200 West Higgins Road Suite 155
Hoffman Estates, IL 60195 Date Invoice#
Telephone 847-519-0010 Fax 847-519-0016 12/19/2005 3218
Bill To
DEC 2 7 2005
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: 500.00
JANUARY,FEBRUARY AND MARCH,2006
v%s
Total $500.00
Please make checks payable to the LAW OFFICES OF CARY J.COLLINS payments/Credits $0.00
Balance Due $500.00
<S .D cjr),
44_-_,Ert, United City of Yorkville
EST. I 1836 County Seat of Kendall County William Powell
"� 800 Game Farm Road
® Treasurer
O� L 1 O Yorkville, IL 60560
:=4::::, 2 Phone: 630-553-4350,ext. 6008
L
/LE X\'‘' Fax:Fax: 630-553-7575
It
March 3, 2006
IDRPR Division of Insurance
Pension Division
320 W. Washington St
Springfield, IL
62767-0001
Attention: Mike Langenfeld
Subject: United City of Yorkville Investment Contract
Fund# 3335
Please find enclosed the investment Management Agreement between the United City of Yorkville and Mitchell.
If you have any questions I may be reached at 630-553-1887
Thank you,
/e),"6,4,. 7,/
,,,...,e_t,-l
William Powell
Treasurer: United City of Yorkville
cc: Harold Martin
Dan Pleckham
Larry Debord
Todd Overmyer
Cary Collins
file: MVT Contract.doc
.,12/15/2005 15:43 1E307788019 M V T INC PAGE 01/04
DEC 1 5 2005
Mitchell,
Vaught124 S,Webster Suite 202
Naperville,IL 60540
630-778-8015
OTa l o r Inc. 630-778-8019 fax
Investment Advisors
TO: Chief Martin FROM: Emily Dodson
FAX #: 553-1141 PAGES: 4
PHONE: DATE: December 15, 2005
RE: Signed contract CC:
• •
Dear Chief Martin:
Following is a signed copy of the investment management agreement for your records.
12/09/2005 15:48 15307788019 M V T INC PAGE 02/04
Mitchell, Vaught and Taylor Inc. Investment Management
Investment Advisors Agreement
This Investment Management Agreement("Agreement") is entered into this
day of II C 2005,by and between Mitchell,Vaught and Taylor Inc.,("MVT")and
the Yorkville Police Pension Fund("Client"). MVT and Client agree as follows:
I. Appointment&Discretionary Anthority.
Client hereby appoints MVT as discretionary Investment Manager of those assets, fixed income,
managed accounts, and any other equity products the Board gives us the authority to invest
in_("Portfolio")deposited with Custodian("Custodian Account"). MVT hereby accepts such
appointment. Subject to any restrictions provided to MVT in writing, Client hereby grants NWT
full power and authority to supervise and direct the investment and reinvestment of the assets in
the Portfolio as MVT deems appropriate without prior consultation with Client. MUTT will
provide quarterly performance of bonds and equities separately as well as consolidated.
2, Representations.
(a) Client hereby represents to MVT that:
(i)Client has the requisite power and authority to appoint MVT as Investment Manager
to manage the portfolio;
(ii)Client has established a Custodian Account and has the power to do so;
(iii)Client has received and reviewed MVT's Part II of Form ADV, including the firm's
Privacy Policy and Code of Ethics.
(iv)The undersigned individual has been authorized by Client to enter into this
Agreement on its behalf; and
(v) Client agrees that MVT may use its reasonable discretion in accepting directions,
either orally or in writing,from persons with apparent authority to act on behalf of Client.
(b)MVT hereby represents that it is duly registered with the Securities and Exchange
Commission("SEC")as an investment adviser under the Investment Advisers Act of 1940, as
amended.
3. Compensation.
MVT shall receive an investment management fee of 0.5%on the first$2 million in assets,0.4%
on the next S3 million,0.35%on the next$5 million in assets,and.25%thereafter annually based
on the fair market value of the Portfolio as of the last business day of each fiscal quarter. Such
fee shall be payable in quarterly installments upon receipt of the quarterly notice, and Client
authorizes the Custodian to deduct said fee from Client's account upon receipt of the quarterly
notice. In the event that this Agreement is terminated prior to the end of a fiscal quarter,MVT
shall reimburse Client for the unearned pro-rata share of the investment management fcc for that
quarter. Marketable securities shall be valued at their market price,if determinable,and the value
of any other assets in the Portfolio shall,for purposes of calculating such fee,be determined by
MVT in its reasonable judgment. However,during any periods in which MVT acts as investment
manager for both the Yorkville Police arid Yorkville Firefighters Pension Funds,the fee
breakpoints provided above shall be applied to the aggregate value of both funds and the resulting
discounted fee shall be applied equally to both funds. In addition,to the extent permitted by
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•
applicable law,MVT may receive research services and products resulting from brokerage
commissions paid out of the Portfolio. Such services and products shall be used for the non-
exclusive benefit of the Portfolio.
4. Allocation of Brokerage and Commissions.
(a)Allocation of Brokerage.
(i)MVT is authorized to allocate securities transactions on behalf of the Portfolio to any
broker-dealer MVT may select.
(ii)In allocating brokerage transactions on behalf of the Portfolio,MVT shall seek to
obtain the best combination of execution and price taking into consideration the full
range and quality of the broker-dealer's services. MVT may effect securities transactions
for the accounts of other clients that are identical or similar to those that MVT may effect
for the Portfolio at the same or different times. Nothing in this Agreement shall impose
on MVT any obligation to purchase or sell for the Portfolio any security that MVT
purchases or sells for any other account. MVT may, but is not required to,combine
transactions for Client's Portfolio with such other clients and may request the broker
executing such transactions to record the price as either(I)the average of the prices at
which the broker executes such transactions,or(2) on such other basis as MVT
determines to be reasonable.
(iii)Client acknowledges that broker-dealers shall bear full responsibility for all errors,
omissions,transactions, duties and obligations occurring or arising in connection with
transactions executed by such broker-dealers.
(b)Commission. Client shall pay commissions,other transactions costs,expenses, and taxes.
5. Proxy Voting Authority.
MVT shall be responsible to vote or abstain from voting proxies applicable to assets in the
Portfolio unless notified in writing to the contrary by the Client. Client shall be responsible to
forward or have forwarded to MVT all proxies within a reasonable time to afford MVT the
opportunity to determine whether and how to vote such proxies.
6. Periodic Information and Statements.
(a)Information required by MVT. Client shall provide,and hereby instructs others to provide,
MVT with such information as MVT may reasonably request to permit MVT to carry out its
duties hereunder. MVT may rely on such information without further inquiry or review, and does
not assume responsibility for the accuracy of any information furnished by or at the direction of
Client. Further,MVI'shall not be liable and shall be fully protected in relying upon any
communication that MVT reasonably believes to have been given by Client or a person with
.apparent authority to act on behalf of Client.
(b) Reports to Client. MVT shall furnish Client with reports,not less than quarterly,setting forth
the value of the Portfolio, a compilation of the securities transactions effected on behalf of the
Portfolio and such other information as is required by Client.
(c) Pricing. MVT shall receive pricing of all securities from third-party custodians. Should an
error occur in pricing or should pricing from two separate third-party custodians differ by a
significant amount,MVT shall attempt to rectify the pricing error through an independent source.
MVT is responsible for making corrections to affected reports as it is the firm's duty to always
disclose accurate market values.
•Page 2
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7. Assignment;Termination.
(a)MVT shall not assign this Agreement,in whole or in part,nor delegate any part or all of the
performance of its duties hereunder without the written consent of Client.
(b)This Agreement may be terminated by Client without penalty at any time by giving prior
written notice to MVT. MVT may terminate this Agreement without penalty at any time by
giving written notice to Client at least thirty(30)days prior to the date on which such tee ,�ination
is to become effective.
(c) Client may revoke any authorization given to MVT herein to effect or execute securities
transactions on behalf of the Portfolio at any time by giving written notice of suchrevocation to
MVT. In the absence of such a revocation,the authorization shall be deemed to be continuing.
Any trades agreed to or executed but not settled before the date upon which MVT actually
receives written notice of such revocation shall be honored. Such notice of revocation of
authority to execute securities transactions on behalf of the Portfolio shall not constitute written
notice of termination of this Agreement.
8. Applicable Law.
This Agreement shall be construed and enforced in accordance with the internal substantive laws
of the State of Illinois.MVT shall supervise and direct the investment and reinvestment of the
assets in the Portfolio.
9. Severability.
If any provision herein is or should become inconsistent with applicable law,rule or regulation,
such provision shall be deemed to be rescinded or modified in accordance with such law,rule or
regulation. The remainder of this Agreement shall continue in full force and effect.
Yorkville'Poll a Pension ;u, ;
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Date:
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by � eft,: Date: /
Mitchell,Vaught and Taylor Inc.
by Date:
Page 3
DEC- 9-05 FRI 5: 49 PM 16807788019 F. 4