PARK RIDGE POLICE PENSION FUND
BOARD OF TRUSTEES
MARCH 8, 2011 SPECIAL MEETING
MINUTES
Pursuant to public notice, a special meeting of the Board of Trustees of the Park Ridge Police Pension Fund was held on Tuesday, March 8, 2011 at 10:00 a.m. at 200 South Vine Avenue, Park Ridge, Illinois. Call to Order President Laura Kappler called the meeting to order at 10:10 a.m. Present were trustees Laura Kappler, Tom Ahlbeck, Robert Kristie, Carl Brauweiler and Duane Mellema. Also in attendance was Mary Tomanek from Morgan Stanley Smith Barney.  Jim Hock the city manager arrived shortly after the start of the meeting.

Investment Report:  The Trustees reviewed the cash flow of the fund, with analysis of cash inflows and outflows.  Mary Tomanek reviewed the projected payout of the fund and related cash flow from the investments.  The fixed income portfolio was reviewed.  There was discussion about changing the asset allocation of the fixed income portfolio to include corporate bonds.  This change will increase the credit risk of the portfolio.  The average life of the fixed income portfolio would be approximately 10 years.  Only investment grade bonds would be purchased and if the rating was to change the position would be liquidated.  The fee for Morgan Stanley managing this portion of the portfolio is 35 basis points.

The Trustees talked about selling $1,000,000 of a Treasury note maturing in 2016.  The funds will be invested in equities as of July 1, 2011.  The Trustees will determine with the assistance of the money manager that this will still meet the cash flow requirements of the fund.

The Trustees also reviewed the asset allocation of the stock portion of the portfolio.
The target allocation will include investments in Large Cap, Mid Cap, Small Cap and fixed income investments – no other investment classes will be used for investment.  The money manager will present some allocations and recommendations for review by the board at the next meeting.

Jim Hock, the city manager, discussed the tax levy.  Duane Mellema will meet with city representatives to discuss the tax levy.  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.

Jim Hock, the city manager, left the meeting.

The Trustees discussed Officer Ruth Hahn’s request to purchase two years of credible service on behalf of her military service.  After much discussion the board decided to go with a repayment of a lump sum or 5 years.  Officer Hahn chose a repayment period of 5 years at 2% rate.
A motion was made by Robert Kristie and seconded by Duane Mellema  to approve  Officer Hahn’s purchase of two years of credible service on behalf of her military service.  A roll call vote was taken:  “Yeas” – Kristie, Brauweiler, Ahlbeck, Kappler and Mellema.  “Nays” – none.  The motion unanimously carried.

Our next quarterly meeting is April 27th, 2011 at 10:00am.

Adjournment: A motion by Robert Kristie and seconded by Duane Mellema to adjourn the meeting 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.