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Police Pension Minutes 2019 05-21-19Yorkville Police Pension Fund Board 804 Game Farm Road Yorkville, IL 60560 630)553-4340 5:00PM on May 21,2019 Police Department Conference Room Minutes Attachments: Meeting Minutes for February 26,2019 President/Secretary to sign Monthly Treasurer's Reports Jan, Feb,and Mar 2019 Required Report to the Municipality by the Pension Board FY 2020 Police Pension Budget 2018 MWM Actuarial Valuation Report-Exhibit A 2018 IDOI Actuarial Valuation Report-Exhibit B Bills for Payment Meeting Call to Order: 5:08pm by Greg Sibenaller Roll Call: Present: Greg Sibenaller, Joe Gillespie, Ray Mikolasek,James Jensen(left at 6:00pm), Rob Fredrickson Guests: Cary Collins,Attorney;Larry DeBord, citizen;Bruce Ebel, Great Lakes Advisors. Citizen Comments:None Previous Meeting Minutes: February 26,2019 Corrections/Approval None Motion to Approve:Joe Gillespie, 2"`1 Ray Mikolasek 4 ayes 0 nays Communications:None Monthly Treasurer's Report:Jan, Feb,and Mar 2019 Motion to Approve:Joe Gillespie, 2"d James Jensen 4 ayes 0 nays Bills for Payment: MVT Management Fee: (Apr-Jun 2019) 3,564.88 From Schwab Acct: 3137-9036 IDOI Compliance Fee 1,818.21 Zabinski Consulting Services(Feb-Mar) 316.68 UCOY Reimbursement(Jan-Mar postage)23.42 UCOY Reimbursement(IPPAC Conf. Lodging) $ 608.22 IPPAC Conference 1,050.00 Collins and Radja: Attorney 775.00 Total Bills for Payment: 8,156.41 Motion to Approve:Joe Gillespie, 2"d Ray Mikolasek, roll call vote:Joe Gillespie, aye;Ray Mikolasek, aye; GregSibenaller, aye;James Jensen, aye. Investments: Progress Report from Great Lakes Advisors Bruce Ebel:Four points: look at the 3 month, one-year, and ten-year returns of the S&P 500. Sharp rebound this quarter of 9.48%that approximates the long-term averages of large cap US stocks. The one-year column was 13.49%return is above the long-term average and the return in the ten-year since the bottom of the financial crisis is almost 50%higher than the long-term average. There has been a robust equity market. Second, the international market had positive returns in the 3-month period but were well below the US markets. In the one-year column, international stocks had an uncharacteristic negative return. Stock markets usually move the same direction so last year was highly unusual. In the ten-year, the international stocks underperformed US stock by half the return. In the ten years prior, international stocks outperformed US stocks. Returns are unpredictable and that is why both domestic and international stocks are in our portfolio. Third, real estate securities for the 3-month period were at 3.93%and the one-year were 17.47%. Real estate was the best performing asset class. Last point, returns on cash have gone up significantly as the Fed normalizes interest rates making cash a viable asset class for investment. GLA has managed our account in compliance with the statutory restrictions. The dollar value of our account has increased$881k since beginning of this calendar year and a gain over the last 3 years of$1,545,654 and almost$1.9 million over the 5-year period Last 3 months showed an 8.84%return net offees exceeding the actuarial return rate of 7%. The portfolio is behaving the way GLA expects it to behave. Unfinished Business: Approval of Dan Pleckham pension—retired November 19,2018 but did not reach 50 years of age until March 10, 2019 Motion to approve monthly pension payment of$3,985.22 for Dan Pleckham. Joe Gillespie, 2"`'Ray Mikolasek, roll call vote;Joe Gillespie, aye;Ray Mikolasek, aye; Greg Sibenaller, aye;James Jensen, aye. New Business: Required Report to the Municipality by the Pension Board 2018 MWM Actuarial Valuation Report-Exhibit A 2018 IDOI Actuarial Valuation Report-Exhibit B FY 2020 Police Pension Budget Approval Fiscal Year 2020 Police Pension Budget Joe Gillespie, 2"`'Ray Mikolasek 3 ayes 0 nays. Personnel Changes and Additions: New Hires: Nicholas Mertes—May 13,2019(Tier II) Sean Enk—May 13,2019(Tier II) Luke Swanson—May 13,2019(Tier II) Motion to approve admission into Yorkville Police Pension Fund—Joe Gillespie, 2"d Ray Mikolasek 3 ayes 0 nays. Additional Business: Discussion regarding requests for proposals(RFPs)on future fund management Due for RFPs. It has been approximately 6 years since last RFP process. Board will begin RFP process and Joe Gillespie will take the lead on getting the RFPs out to prospective financial managers. 2019 meeting dates: Feb 12, May 21, Aug 13,Nov 12 Citizen Comments:Larry DeBord:Provided board with advice on investing in index funds versus using an active account manager. Next meeting: Aug 13,2019 5:00pm Motion to Adjourn: 6:25pm by Joe Gillespie, 2"d Ray Mikolasek 3 ayes 0 nays. President Secretary