North Aurora Police Pension
Board of Trustees
Minutes of the meeting – April 19, 2011
The meeting was called to order at 5:01pm, by President Robyn Stecklein. Roll call was conducted and members present were as follows: Robyn Stecklein, Greg Manko and Gerri Vaughn. Also present were Treasurer Ed MacMillan, Board Attorney Charles Atwell, Therese Krafchek and Jim Hrabak from MB Financial and Bill Hannah from the Village of North Aurora.
Minutes of the January 18, 2010 meeting were reviewed. Motion to approve the minutes was made by Greg Manko and seconded by Gerri Vaughn. Roll call vote: Stecklein – yes. Manko – yes. Vaughn – yes. The motion passed unanimously.
Treasurer’s Report
Ed MacMillan presented the balance sheet and profit loss sheets to the board. Last page of balance sheet shows that ten months into the fiscal year net is up 6.1% so far – hoping it will be over 7% for the year.
Statement of expenses was reviewed and the fee the bank is charging now was brought up. Bill Hannah offered to call them, as he had done with the Village’s accounts, to see if they can be reversed with no fees going forward. Motion to approve the report was made by Greg Manko. Gerri Vaughn seconded the motion. Roll call vote: Stecklein – yes. Manko – yes. Vaughn – yes. The motion passed unanimously.
Investment Report
Dave Harrington has resigned from MB Financial and sitting in for him is Jim Hrabak, Chief Investment Officer for MB.
Therese Krafchek presented the investment report from MB Financial. Therese noted that investments were up 2.28% for the previous quarter – 7.39% year to date. $100,000 went into the fund this quarter and last.
Jim Hrabak recommended reducing taxable municipal bonds from 20% of portfolio to 10% and then picking up investment grade corporate bonds to increase corporate investments to 30% of the portfolio. There are a lot of corporate bond options to choose from.
Motion to approve the investment report was made by Gerri Vaughn and seconded by Greg Manko. Roll call vote: Stecklein – yes. Manko – yes. Vaughn – yes. The motion passed unanimously.
Therese will send “draft” investment policy to everyone this week
Board will set limit for corporate bonds in North Aurora Police Pension at next meeting.
Old Business – it is believed that one retiree has shown interest in vacant board position.
New Business
The Chief is retiring and his pension payout was discussed. He is retiring on May 1st and payment will be made and retroactively approved at the next meeting. Motion to pay benefit per calculation with the stipulation that the board must approve amount was made by Robyn Stecklein and seconded by Greg Manko. Roll call vote: Stecklein – yes. Manko – yes. Vaughn – yes. The motion was passed unanimously.
Motion to adjourn was made at 5:58pm by Greg Manko and seconded by Gerri Vaughn. Roll call vote: Stecklein – yes. Manko – yes. Vaughn – yes. The motion passed unanimously.
