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Pursuant to public notice, a regular quarterly meeting of the Board of Trustees of the Park Ridge Police Pension Fund was held on Tuesday, January 25, 2011 at 10:00 a.m. at City Hall, 505 Butler Place, Park Ridge, Illinois.
Call to Order: President Laura Kappler called the meeting to order at 10:00 a.m. Present were trustees Laura Kappler, Tom Ahlbeck, Carl Brauweiler, Robert Kristie and Duane Mellema. Also in attendance was Brian LeFevre from Sikich LLP, Mary Tomanek from Morgan Stanley Smith Barney, Charlie Atwell, the Board’s attorney, Jim Hock the city manager and Allison Stutts the finance director from the city of Park Ridge.
Approval of Minutes: The minutes were reviewed by the Trustees. Upon a motion made by Carl Brauweiler, seconded by Duane Mellema and unanimously approved, the minutes of the October 26, 2010 quarterly meeting were approved.
Investment Report: Mary Tomanek gave an overview of the economy. She reviewed the concern over foreign exposure to the U.S. Banks. The economy has affected the municipal markets negatively and increased risk of default on bond payments by cities and municipalities. Emerging markets are currently performing well.
The asset allocation of our portfolio was also reviewed. Mary confirmed the mix between fixed income and equities was adjusted to 50% each.
The Trustees reviewed the investment policy with emphasis on corporate bonds and stock equities. Jim Hock discussed bond ratings and how to handle changes in ratings. The investment policy and the purchase of corporate bonds will be reviewed in detail at the March 8, 2011 Special meeting.
A motion was made by Thomas Ahlbeck and seconded by Duane Mellema to approve the investment performance report for the quarter ended December 31, 2010. A roll call vote was taken: “Yeas” – Kristie, Brauweiler, Ahlbeck, Kappler and Mellema. “Nays” – none. The motion was unanimously approved.
Mary Tomanek from Morgan Stanley Smith Barney left the meeting.
The Trustees set the meeting schedule for the coming year as follows:
March 8, 2011 at 10:00
April 27, 2011 at 10:00
August 18, 2011 at 10:00
October 26, 2011 at 10:00
A motion was made by Robert Kristie, seconded by Carl Brauweiler and unanimously approved that the meeting schedule for the coming year be accepted.
Accounting Firm: Brian LeFevre from Sikich LLP presented the financial statements for the quarter ending December 31, 2010. A graph was presented to the Trustees to visually illustrate the financial information. Brian reported expenses were lower than the prior year.
A motion was made by Carl Brauweiler and seconded by Robert Kristie to approve the financial report as presented. A roll call vote was taken: “Yeas” – Kristie, Brauweiler, Ahlbeck, Kappler and Mellema. “Nays” – none. The motion unanimously carried.
Approval of Expenditures: A motion was made by Carl Brauweiler and seconded by Duane Mellema to approve the expenditures for the prior three months as detailed in the attached report amounting to $648,704.88. A roll call vote was taken: “Yeas” – Kristie, Brauweiler, Ahlbeck, Kappler and Mellema. “Nays” – none. The motion was unanimously carried.
The trustees discussed the tax levy with Jim Hock, City Manager. The Trustees will send a letter to the City of Park Ridge indicating an actuarial report will be done in August for this year’s levy in light of the fact that the law has changed as of January 1, 2011. The Police Pension fund respects the city’s current economic situation. The goal of the trustees is to properly fund the Police Pension fund.
Training/Conference: The Trustees of the Park Ridge Police Pension Fund are required to attend continuing education. The time spent at the meeting is a form of continuing education with an investment advisor, an attorney and an accountant all in attendance. This meeting should be considered qualifying continuing education.
Laura Kappler and Allison Stutts are planning to attend upcoming IPPFA conferences to be held on March 16, 2011. Carl Brauweiler and Laura Kappler will be attending the Spring IPPFA Conference on April 28 – 29, 2011.
Update on Employment, Contribution Rollover, Death and Disability: The following was reported by Laura Kappler:
- Officer Robert Evans has transferred to Park Ridge from Hannover Park. Officer Evans has 3 years and 7 days credible service added to his time here. Hanover Park has paid their part or $47,433.78 to our fund to complete the transfer of time.
A motion was made by Carl Brauweiler and seconded by Robert Kristie to approve the transfer of Officer Robert Evans into the Park Ridge Policy Pension Fund. A roll call vote was taken: “Yeas” – Kristie, Brauweiler, Ahlbeck, Mellema and Kappler. “Nays” – none. The motion was unanimously approved.
Officer Robert Shelley resigned as of January 18, 2011. He was originally hired November 7, 2003. A pension refund will be calculated. A motion was made by Carl Brauweiler and seconded by Robert Kristie to approve the refund of contributions to former officer Robert Shelley. A roll call vote was taken: “Yeas” – Kristie, Brauweiler, Ahlbeck, Mellema and Kappler. “Nays” – none. The motion unanimously approved.
Officer Ruth Hahn has applied to purchase two years of credible service on behalf of her her military service. The fund was not given any direction by the Illinois Department of insurance as to when they monies should be repaid to the fund. After much discussion the board decided to go with a repayment of a lump sum or 5 years. At least two other officers are interested in applying to do this.
Patrick Duggan Matter: Officer Duggan will be sent in the coming months for his annual physical. The Police Pension fund granted him a non-duty related disability. The board will go over the results of the exam at the next board meeting and decide what needs to be done next.
William Bacon Matter: The Police Pension fund receive the FOIA information from the Wonder Lake Police. Officer Bacon is currently working part time in Wonder Lake as a patrol officer in the detectives. More information is needed and will be forthcoming in regards to this matter.
A special meeting is scheduled for March 8, 2011 at 10:00 a.m.
Our next quarterly meeting is April 27th, 2011 at 10:00am.
Adjournment: A motion by Robert Kristie and seconded by Thomas Ahlbeck to adjourn the meeting at 1:05 p.m. unanimously carried.
Respectfully submitted,
Laura Kappler, President
Robert Kristie, Secretary
Approved by the Board of Trustees on April 27th, 2011
These minutes were prepared by Tom Ahlbeck and Laura Kappler.
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