Police Pension Minutes 2018 05-22-18Yorkville Police Pension Fund Board
804 Game Farm Road
Yorkville,IL 60560
630)553-4340
5:00PM on May 22,2018
Police Department Conference Room
Minutes
Attachments:
Meeting Minutes for February 13,2018 President/Secretary to sign
Monthly Treasurer's Reports Dec 2017,Jan,Feb,Mar and Apr 2018
Required Report to the Municipality by the Pension Board
FY 2019 Police Pension Budget
2017 TWS Actuarial Valuation Report-Exhibit A
2017 B301 Actuarial Valuation Report-Exhibit B
Bills for Payment
Meeting Call to Order: 5:04pm by Greg Sibenaller
Roll Call:Present:Joe Gillespie,Ray Mikolasek,Ryan Goldsmith,Greg Sibenaller,James Jensen(5:09pm),
Guests: Larry Richey&Kelly Weller,GLA; Larry DeBord,citizen; Rob Fredrickson,Treasurer(5:05pm);
Tom Radja,Attorney(5:05pm).
Citizen Comments:None
Previous Meeting Minutes: February 13,2018
Corrections/Approval
Motion to Approve:Joe Gillespie,2nd Ryan Goldsmith,4 ayes 0 nays
Communications:None
Monthly Treasurer's Report: Dec 2017,Jan,Feb,Mar and Apr 2018
Motion to Approve:Ray Mikolasek 2nd Joe Gillespie,4 ayes 0 nays
Bills for Payment:
MVT Management Fee: (Apr-Jun 2018) 3,806.00
From Schwab Acct: 3137-9036
Great Lakes Advisors Fee: (Jan-Mar) 2752.25
Acct: 90733303
Great Lakes Advisors Fee: (Jan-Mar) 1679.11
Acct: 56737766
Zabinski Consulting Services(Jan-Mar) 479.62
UCOY Reimbursement(IPPAC Conf. Lodging) $ 810.96
IPPAC Conference 1,400.00
Collins and Radja:Attorney 775.00
Total Bills for Payment: 11,702.94
Motion to Approve:Joe Gillespie 2nd Ryan Goldsmith Roll call vote:Joe Gillespie,aye;Ryan Goldsmith,aye;
Greg Sibenaller,aye;Ray Mikolasek,aye.
Investments:
Progress Report from Great Lakes Advisors
Kelly Weller-We are in an expanding economy and indications are the expansion will continue and be the
largest expansion in the last 100 years. Global growth is continuing. The US is more mature in its economic
recovery,but the rest of the world is still in a more accommodating phase so interest rates remain low. Valuations in
the global market tend to look more attractive than the valuations in the US market because of the cycle we are in.
There has been a correction in the market since the last meeting. Returns moved up and down during the period since
January and the May numbers are starting move back up. US stocks were reaching valuations the market couldn't
support and there was some pullback.Also,there was an increase in interest rates from about 2.4%to 3%. Most
pundits agree the Federal Reserve will raise interest rates at least two more times this year,causing fear that short
term rates will pass long term rates,which can be a precursor for a recession. GLA is watching to see where interest
rates go in the future. This period was possibly a correction,but no indication that this economy is running out of gas.
There was an increase in volatility February through April causing the portfolio to underperform for the period. The
fixed and equities portions of the portfolio underperformed during the period which is not common,but not cause for
concern. The fund is in compliance with the statutory requirements. Year to date the fund is down about$32,000,but
up$483,000 for the fiscal year. Suggested a conference call with the portfolio manager during the November meeting
to discuss strategy.
Unfinished Business:
New Business:
Required Report to the Municipality by the Pension Board
Rob Fredrickson-The actuarial valuation for the fund from the municipality is$963,000 which is what the
city contributed. The fund should be over the$10 million mark by April 30,2019,if not sooner. The fund increased
by about 7%and was about 39%funded at the end of FY16 and was 42%funded by end of FY17.
2017 TWS Actuarial Valuation Report-Exhibit A
2017 ID0I Actuarial Valuation Report-Exhibit B
FY 2019 Police Pension Budget
Approval Fiscal Year 2019 Police Pension Budget-Joe Gillespie 2nd Ray Mikolasek, 5 ayes 0 nays.
Pension Election Results
Active Trustee Results:Ray Mikolasek 17 votes;Ryan Goldsmith 17 votes; no additional candidates.
Retiree Trustee Results: Greg Sibenaller 3 votes.No additional candidates.
active and retiree trustee terms expire May 2020.
motion to approve:Ray Mikolasek 2nd Ryan Goldsmith, 5 ayes 0 nays
Personnel Changes and Additions:
Additional Business:
2018 meeting dates:Feb 13,May 22,Aug 14,Nov 13
Citizen Comments: Larry DeBord- Market may be tough in the near future with interest rates moving up. GLA was
behind the S&P by 25 basis points. Didn't see anything alarming with GLA's performance in the last quarter. Market
needs some time to work through the issues GLA discussed. The market reacted violently to the 10 year interest rate
moving above 3%so quickly,with one day in April being particularly bad.
Next meeting:
Aug 14,2018 5:00pm
Motion to Adjourn: 5:52pm Ray Mikolasek 2nd Joe Gillespie,5 ayes 0 nays
1"4/
Pre d Secretary