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
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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
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PresilenSecretary