Police Pension Minutes
North Aurora Police Pension
Board of Trustees
Regular Board Meeting
Minutes of the meeting – July 27, 2017
The meeting was called to order at 5:00 pm, by Robyn Stecklein. Roll call was conducted and members present were as follows: Greg Manko, Mary Licar, Paul Dilley, Robyn Stecklein and Steve VanLoan. Also present were Board Attorney Charles Atwell, Bill Hannah from the Village of North Aurora and Anise Hesson. Spencer Klein of MB Financial was also in attendance
Audience Comments
None
Approval of Minutes
A motion was made to approve the minutes of the meeting dated April 18, 2017 by Steve VanLoan; motion seconded by Greg Manko. A roll call vote was taken: Manko – yes; Stecklein – yes; Dilley – yes; Licar – yes; VanLoan – yes. Motion passes.
Presentation and Acceptance of Treasurer’s Report
Each board member was presented a copy of the Treasurer’s report. Bill Hannah gave a synopsis of the report for the pension fund with all activity in the accounts through June 30, 2017 including expenses paid. Total market value of all investments held at MB Financial and Old Second Bank was $16,252,209.83. The increase of $705,143.31 was due mainly to the Village contribution being made with receipt of half of the property tax levy. Treasurer Hannah also reviewed bills paid during the quarter. A motion was made to approve the Treasurer’s Report by Mary Licar; seconded by Robyn Stecklein. A roll call vote was taken: Manko – yes; Stecklein – yes; Dilley – yes; Licar – yes; VanLoan – yes. Motion passes.
Presentation and Acceptance of Investment Report
MB Financial provided Board members with a copy of the performance report as June 30, 2017. A synopsis of the report was presented by Spencer Klein. The portfolio is currently at 49% fixed income, 45% equity and 5% alternative strategies. The report indicated that as of 6/30/17, the ending market value of the portfolio with accrued income was $16,208,837. The overall return of the fund for the quarter was 2.53% over the benchmark/blended index of 2.44%. Total earnings fiscal year to date equaled $964,084. A motion was made to approve the Investment Report by Greg Manko; seconded by Paul Dilley. A roll call vote was taken – Manko – yes; Stecklein – yes; Dilley – yes; Licar – yes; VanLoan – yes. Motion passes.
New Business
1. Annual nomination of officers. The proposed slate of new officers is as follows:
a. Robyn Stecklien – President
b. Steve VanLoan – Vice president
c. Greg Manko – Secretary
d. Paul Dilley – Assistant secretary
A motion was made to accept the new slate of officers as proposed by Steve VanLoan; seconded by Paul Dilley. A roll call vote was taken – Manko – yes; Stecklein – yes; Dilley – yes; Licar – yes; VanLoan – yes. Motion passes.
2. Discussion of Upcoming Valuation of the Police Pension Fund. Bill Hannah discussed the upcoming valuation and some changes in the assumptions that will be used in the report. Changes will be made in the assumptions related to payroll growth. The first will be a change in the salary increase percentage assumption which instead of using 5% for all, Foster & Foster has recommended using a weighted table to more accurately reflect the projected salary increase of each officer weighted by years of service which could range from 4% to 11%. Secondly, the payroll growth rate assumption will be reduced from 5% to 3%. This will have the effect of increasing the amount of the amortization of the unfunded liabilities to more in upcoming years versus future years. The valuation should be completed next month and Bill will have the report to present to the Pension Board at the meeting in October.
The next meeting will be held on October 17, 2017 at the North Aurora Police Station community room at 5pm.
A motion was made to adjourn the meeting by Robyn Stecklein; seconded by Paul Dilley. A roll call vote was taken – Manko – yes; Stecklein – yes; Dilley – yes; Licar – yes; VanLoan – yes. Motion passes.
Meeting adjourned at 5:46pm
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Robyn Stecklein – President
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Greg Manko – Secretary
