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PARK RIDGE POLICE PENSION FUND
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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 Wednesday, April 27, 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 10:20 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 and Charlie Atwell, the Board’s attorney. Allison Stutts the finance director from the city of Park Ridge arrived after the start of the meeting. Investment Report: Mary Tomanek presented the quarterly investment report. She discussed the current economic conditions and believes economic recovery is sustainable. The Federal Reserve may begin to raise rates during the first quarter of 2012. She expects the Federal Reserve not to consider additional quantitative easing causing rates to decline. The Trustees reviewed the cash flow of the portfolio and the available funds in the money market. The asset allocation of the portfolio was also reviewed. As of July 1, 2011 the code will allow a higher percentage in equities. Mary suggested US equities should be overweight to large cap due to the Global Investment Committee’s research that indicated the largest US stocks to be relatively inexpensive compared to small and mid caps. The current strategy is to invest in US equities utilizing a quarterly dollar cost averaging strategy to reach the target. Asset allocation targets were reviewed as follows: A motion was made by Laura Kappler and seconded by Robert Kristie to approve the above asset allocations. A roll call vote was taken: “Yeas” – Kristie, Brauweiler, Ahlbeck, Kappler and Mellema. “Nays” – none. The motion was unanimously approved. A motion was made by Carl Brauweiler and seconded by Thomas Ahlbeck to move $250,000 from Cabriar & Granite into equities. A roll call vote was taken: “Yeas” – Kristie, Brauweiler, Ahlbeck, Kappler and Mellema. “Nays” – none. The motion was unanimously approved. A motion was made by Thomas Ahlbeck and seconded by Carl Brauweiler to approve the investment performance report for the quarter ended March 31, 2011. A roll call vote was taken: “Yeas” – Kristie, Brauweiler, Ahlbeck, Kappler and Mellema. “Nays” – none. The motion was unanimously approved. The Trustees reviewed the investment policy and the related reference to the cost. Trustee Kappler noted the investment law will require a change to the investment policy. A motion was made by Duane Mellema and seconded by Thomas Ahlbeck to change the investment policy to comply with the investment law. All Trustees are in favor. A roll call vote was taken: “Yeas” – Kristie, Brauweiler, Ahlbeck, Kappler and Mellema. “Nays” – none. The motion was unanimously approved. The Trustees reviewed the fixed income portfolio, including the investments held, the investment horizon and the long term nature of the portfolio. Robert Kristie left the meeting at 11:05. Accounting Firm: Brian LeFevre from Sikich LLP presented the financial statements for the quarter ending March 31, 2011. Brian reviewed the income and related expenses with the Trustees. It was noted that there are cash balances held by the various money managers in addition to the cash balance held for operations. The Trustees would like to review with the money managers if more of the cash could be invested. A motion was made by Carl Brauweiler and seconded by Thomas Ahlbeck to approve the financial report as presented. A roll call vote was taken: “Yeas” – Brauweiler, Ahlbeck, Kappler and Mellema. “Nays” – none. The motion unanimously carried. Approval of Expenditures: A motion was made by Duane Mellema and seconded by Carl Brauweiler to approve the expenditures for the prior three months as detailed in the attached report amounting to $708,584.88 . A roll call vote was taken: “Yeas” – Brauweiler, Ahlbeck, Kappler and Mellema. “Nays” – none. The motion was unanimously carried. Update of Ongoing Matters: A motion was made by Laura Kappler, seconded by Duane Mellema to move the August 10, 2011 meeting to August 18, 2011. A roll call vote was taken: “Yeas” – Brauweiler, Ahlbeck, Kappler and Mellema. “Nays” – none. The motion was unanimously carried. The Trustees discussed required changes to the agenda to include a Roll Call vote of those attending Trustees and also an item for Public Comments to replace new business. The changes are being made to conform to the Open Meetings Act. William Bacon Matter: It must be determined that Officer Bacon is performing the same duties for another department. The Board will also have to have a physician determine that he has recovered from his previous injury. Allison Stutts the finance director from the city of Park Ridge left the meeting at 12:05. 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. 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 is planning to attend the Midwest Annual IPPFA conference in October. 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: There are no issues to report in regards to employment, contribution rollover, or disability. The widow Muriel Begg passed away April 18, 2011. The pension has been stopped and will be prorated to the date of death. Other Business: Ballots were cast by active officers to elect an officer to the Park Ridge Police Pension Board. Following are the election results: A motion was made by Duane Mellema, seconded by Carl Brauweiler to approve the election of Laura Kappler to the Park Ridge Police Pension Board. A roll call vote was taken: “Yeas” – Brauweiler, Ahlbeck, Kappler and Mellema. “Nays” – none. The motion was unanimously carried. The mayor has not acted on the letter for reappointment of Thomas Ahlbeck. The next regular quarterly meeting is scheduled for August 18, 2011 at 10:00 a.m. Adjournment: A motion by Carl Brauweiler and seconded by Duane Mellema to adjourn the meeting at 12:40 p.m. unanimously carried.
Respectfully submitted,
Laura Kappler, President Robert Kristie, Secretary
Approved by the Board of Trustees on August 18, 2011
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