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Police Pension Minutes 2018 08-14-18Yorkville Police Pension Fund Board 804 Game Farm Road Yorkville,IL 60560 630)553-4340 5:00PM on August 14, 2018 Police Department Conference Room Minutes Attachments: Meeting Minutes for May 22,2018 President/Secretary to sign Monthly Treasurer's Reports Bills for Payment Meeting Call to Order: 5:04pm by Greg Sibenaller Roll Call: Present: Ray Mikolasek, Ryan Goldsmith,Greg Sibenaller,James Jensen, Rob Fredrickson,Treasurer Guests: David Vaught, MVT; Larry DeBord, citizen; Tom Radja,Attorney. Citizen Comments:None Previous Meeting Minutes: May 22,2018 Corrections/Approval -None Motion to Approve: Ray Mikolasek,2nd James Jensen,4 ayes 0 nays. Communications:None Monthly Treasurer's Report: May 2018 Motion to Approve:James Jensen, 2nd Ryan Goldsmith, 4 ayes 0 nays. Bills for Payment: MVT Management Fee: (Jul- Sep 2018) 4,428.00 From Schwab Acct: 3137-9036 Great Lakes Advisors Fee: (Apr-Jun) 2,864.58 Acct: 90733303 Great Lakes Advisors Fee: (Apr-Jun) 1,322.23 Acct: 56737766 IDOI Compliance Fee 1,593.37 IPPAC Annual Membership 500.00 UCOY Postage Reimb(Sepl7-Jul-18) 52.27 Zabinski Consulting: (Apr&May) 316.68 Collins and Radja: Attorney 775.00 Total Bills for Payment: 11,852.13 Motion to Approve: Ray Mikolasek,2nd Ryan Goldsmith Roll call vote: Greg Sibenaller,aye; Ryan Goldsmith, aye; James Jensen,aye;Ray Mikolasek,aye. Investments: Progress Report from Mitchell,Vaught,and Taylor(MVT). David Vaught-Second quarter did a little better than the first quarter. A slight gain this quarter of 7 basis points net of fees,with 8 basis points being the target. As stated previously, bond prices will go down as interest rates go up. Expect two more interest rate raises by the Fed before end of year. The 10 year US treasury bonds peaked at 3.11%this quarter and then fell 25 basis points to 2.86%. If the Fed raises interest rates two more times, it could create an inverted yield curve, where the short term rates are higher than the 10 year rates. The inverted yield curve is a classic sign a recession is near. The Fed may decide against raising the rates to avoid a recession. David believes that will not happen because inflation is projecting higher which generally means 10 year interest rates will be higher. David believes it is still a steady market but things could turn. David pointed out that when the bond market does well,the portfolio lags behind the target and remains closer to the target when the market is volatile. This due to the defensive strategy MVT employs. David Vaught finished by asking the board to consider MVT in the future to manage a larger portion of the funds'assets,particularly the equities portion. Unfinished Business:None New Business: Election of Board Officers. Ray Mikolasek made a motion to elect the following board members to the following positions: Greg Sibenaller,President;Joe Gillespie,Vice President,Ray Mikolasek, Secretary;Ryan Goldsmith, Assistant Secretary. 2nd James Jensen,4 ayes 0 nays. Appointment of Board Members: President Greg Sibenaller appointed the following positions: FOIA,Ray Mikolasek; Security,Rob Fredrickson; Open Meetings,Joe Gillespie. Personnel Changes and Additions: Resignation: Robert Harris III-July 31, 2018 Rob Fredrickson sent letter to Robert Harris presenting his options for contributions made to the pension fund. Termination: Sarah Klingel-July 31, 2018 Rob Fredrickson sent letter to Sarah Klingel presenting her options for contributions made to the pension fund. Retirement: Larry Hilt—June 26,2018 Approval of Larry Hilt's retirement with a final pensionable salary of$114,181.47. Initial monthly benefit will be$5471.20. Ray Mikolasek,2nd Ryan Goldsmith Roll call vote: Greg Sibenaller,aye;Ryan Goldsmith, aye; James Jensen,aye; Ray Mikolasek, aye. Additional Business:None Citizen Comments: Larry DeBord-Great Lakes Advisors(GLA)has been lagging 240 basis points behind the S&P the last 6 months. The mutual funds portion is down-3.23%and the S&P is up 2.62%. That is a substantial gap. On the stock side,the portfolio was up 1.89%compared to the S&P at 2.62%. Larry believes it is time to ask GLA for some answers. Further he believes the board may want to look at MVT for a proposal and possibly some other firms in the near future. Next meeting: November 13,2018 5:00pm Motion to Adjourn: 5:38pm by Ryan Goldsmith,2nd James Jensen 4 ayes 0 nays. 2018 meeting dates: Feb 13,May 22,Aug 14,Nov 13 1//e/le../.1V Pre dent Secret