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Police Pension Minutes 2017 05-23-17 Yorkville Police Pension Fund Board 804 Game Farm Road Yorkville,IL 60560 (630)553-4340 S:OOPM on May 23,2017 Police Department Conference Room Minutes Attachments: Meeting Minutes for February 14,2017 President/Secretary to sign Monthly Treasurer's Reports Jan,Feb,Mar,and Apr 2017 Required Report to the Municipality by the Pension Board FY 2018 Police Pension Budget Mitchell,Vaught&Taylor Letter Bills for Payment --------------------------------------------------------------------------------------------------------------------------------- Meeting Call to Order: S:OOpm by Greg Sibenaller Roll Call: Present: Joe Gillespie,Ray Mikolasek,Greg Sibenaller,James Jensen,Rob Fredrickson Guests: Cary Collins,Attorney; Larry DeBord,citizen; Larry Richey,GLA;Bruce Ebel, GLA. Citizen Comments:None Previous Meeting Minutes: February 14,2017 Corrections/Approval Motion to Approve: Joe Gillespie 2nd Ray Mikolasek,4 ayes 0 nays Communications: Mitchell,Vaught&Taylor Letter Monthly Treasurer's Report: Jan,Feb,Mar,and Apr 2017 Motion to Approve: Ray Mikolaek 2nd Joe Gillepsie,4 ayes,0 nays Bills for Payment: MVT Management Fee: (Apr-Jun 2017) $ 3506.00 From Schwab Acct: 3137-9036 Great Lakes Advisors Fee: (Jan-Mar) $ 2,449.46 Acct: 90733303 Great Lakes Advisors Fee: (Jan-Mar) $ 1,152.43 Acct: 56737766 Zabinski Consulting Services(Feb-Apr 2017) $ 475.02 UCOY Postage Reimbursement(Jan-Apr) $ 23.23 IPPAC Conference(Annual Trustee Training) $ 850.00 IPPAC Conference(Lodging) $ 608.22 IDOI Compliance Fee $ 1,376.56 Collins and Radja:Attorney $ 775.00 Total Bills for Payment: $11,215.92 -amendments to bills: IPPAC Conference invoice reduced to $850. Late additions -April Zabinski bill in amount of $158.34,IPPAC Conference lodging(Jumers) $608.22 Motion to Approve: Greg Sibenaller 2nd Joe Gillespie Roll call vote: Greg Sibenaller,aye;Joe Gillespie,aye;Jim Jensen,aye; Ray Mikolasek,aye. Investments: Progress Report from Great Lakes Advisors.Larry Richey(LR)and Bruce Ebel(BE). LR-year to date approximately$220,000 in cash addition to portfolio, for one year about$500,000 in hard cash into portfolio. Three years$708,000 and$772,000 since inception of Great Lakes Advisors account. Introduced Bruce Ebel who manages the pension fund portfolio. BE-explained reasons for underperformance of portfolio against the benchmark. US economy continues expansion from 8 years ago when federal reserved lowered interest rates. Federal reserve starting to raise interest rates. Stocks have been the best investment for last 5 years. Last year the market took on more of a risk profile with people convinced economy would continue to grow and therefore took on more risky assets. Their goal is to meet or exceed our actuarial return rate. Since inception the return rate is 7.51%. They have exceeded our actuarial rate of return and are right at the rate in last three years. GLA is underperforming their benchmark(Russell 3000 index). The market is volatile right now and therefore there are no market trends to follow. GLA has underperformed for one year,but has never underperformed for more than one year since inception. GLA is confident portfolio will capture trends and will perform as it has with time. Unfmished Business: Compiled list of executive sessions-May 11,2015 (23 minutes). -executive session minutes will not be released. New Business: Trustee Resignation-Fred DuSell resigned from Yorkville Police Pension Board-04/30/2017 -Board decided to get a plaque for Fred DuSell for his service. Trustee Appointment-James Jensen appointed to Yorkville Police Pension Board by Mayor Gary Golinski- 05/09/17 Required Reporting Report-Rob Fredrickson,Treasurer -last year not a good year for fund. Investment return was-.46%.Prior year fund exceeded actuarial benchmark of 7%with a 7.52%.Fund is hovering around 40%funding ratio. The poor rate of return hurt the fund along with a change in the mortality tables. Actuarial assumptions are now based off an updated 2014 mortality table rather than a 2000 table. Hope to surpass the 7%actuarial assumption for this and will have the actuarial report to share later this summer after it is complete. Approval Fiscal Year 2018 Police Pension Budget - Revenue from employer contribution to be$966,211 which is the actuarial determined contribution figured out by Tim Sharp. Joe Gillespie 2nd Greg Sibenaller 4 ayes 0 nays Personnel Changes and Additions: None Additional Business: Election of new officers at August meeting. Citizen Comments: Larry DeBord-Looking at Great Lakes Advisors'(GLA)investment summary,this is the first quarter that the AllCap portion of the portfolio underperformed the S&P 500 for the first time in 13 quarters. Believes GLA has nothing to apologize for and believes the mutual fund portion of the portfolio distorts their true performance. In his opinion,every time GLA AllCap outperforms the S&P 500 two quarters in a row,we should retain their services another year. Larry was skeptical of GLA at first but stated they have proven him wrong. i Next meeting: Aug 8,2017 5:00pm Motion to Adjourn: 6:18pm by Ray Mikolasek 2nd Joe Gillespie 4 ayes 0 nays 2017 meeting dates: Feb 14,May 23,Aug 8,Nov 14 14;0�v - PresilenSecretary