HomeMy WebLinkAbout08-03-20 Meeting Minutes___________________________________________________________________________________________________________________________________________________________________________________________
Galesburg Firefighters’ Pension Fund Page 1 of 3
Galesburg Fire Pension Fund Board of Trustees Meeting
City Hall, Erickson Conference Room
55 West Tompkins Street, Galesburg, Illinois
August 3, 2020
9:00 a.m.
Call to order by Secretary Kelli Bennewitz at 10:30 a.m.
Physically Present: Kelli Bennewitz, Jeremy Karlin, John Seitz, and Mike Whitson. Absent: Jim
Pendergast. Others Present: Kelly Weller and Alex Courtney. Others Present Via Telephone:
Kevin Cavanaugh and Larry Richey.
Kevin Cavanaugh, Lauterbach & Amen, LLP, provided a presentation on the Fire Pension Fund
actuarial funding report. Highlights included:
● Current year contribution recommendation - $3,338,000
● Statutory minimum contribution - $2,555,000
● Prior year contribution recommendation - $3,0540,000
● Current year funded percentage - 42.47%
● Prior year funded percentage - 42.73%
● Active member count - 42
● Inactive member count - 67
Kelly Weller reported the following information is from the June 30, 2020, investment review:
General Economy
● The U.S. economy contracted by 5 percent during the first quarter and growth in the
second quarter is projected to be even worse.
● The widespread unemployment creates an immediate need for additional federal
stimulus for both individuals and governments.
Equity
● Small and mid-cap companies have outperformed large-cap during the second quarter.
Fixed Income
● The Federal Reserve has cut the interest rate it controls.
● The Congressional Budget Office forecasts ten year Treasury yields to remain below 1.0
percent until 2022.
● The U.S. Treasury ten year interest rates started 2020 at 1.88 percent, an all-time low of
0.31 percent in March, and seems to be stabilizing around 0.65 percent.
● The fixed income market is beginning to function more smoothly.
The pension fund’s portfolio showed an ending market value of $22,971,304 as of June 30,
2020. The fund is showing 38.4% fixed income, 58.1% equity investments and 3.5% cash.
Other items noted:
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● Quarter to date shows a loss of 12.8%
● It was discussed to move $1M from fixed income to equity to increase to 50-52%
● Kelli will send a request to move $250,000 for upcoming payroll
A copy of the performance review has been attached to this official record.
Mike Whitson left the meeting at 11:17 a.m.
Kelly Weller explained that the Illinois Sustainable Investing Act was signed into law by
Governor Pritzker in August 209 and came into effect on January 1, 2020. The investment
policies of all Illinois public funds must contain language addressing the consideration of
sustainability factors in the investment process.
A motion was made by Jeremy Karlin, seconded by John Seitz, to approve that the following
language be inserted into the Investment Policy and signed as amended regarding the
Sustainable Investing Principles:
In accordance with 40 ILCS 5/1-113.6 and 40 ILCS 5/1-113.17, the Board will regularly consider
material, relevant, and decision-useful sustainability factors, within the bounds of financial and
fiduciary prudence, in evaluating investment decisions. Such factors include, but are not limited
to: (1) corporate governance and leadership factors; (2) environmental factors; (3) social capital
factors; (4) human capital factors; and (5) business model and innovation factors. The Fund, in
conjunction with its Investment Consultant and/or Manager(s), will perform periodic
evaluations of those factors to ensure the factors are relevant to the investment portfolio and
the evolving marketplace.
The motion passed.
Jeremy Karlin moved, seconded by John Seitz, to approve the minutes from the May 4, 2020,
meeting. The motion carried.
Alex Courtney presented the financial statements for the fund ending June 30, 2020. Total
assets are $23,300,074 and total liabilities are $269,042. He also provided a transaction report
for the period April - June 2020.
John Seitz moved, seconded by Jeremy Karlin, to approve the financial statement as of June 30,
2020. The motion carried.
New Business
Jeremy Karlin moved, seconded by John Seitz, to approve a resolution recommending to the
City Council a tax levy of $3,337,911. The motion carried.
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Galesburg Firefighters’ Pension Fund Page 3 of 3
Jeremy Karlin moved, seconded by John Seitz, to approve the Fire Pension Fund Rules &
Regulations. The motion carried.
The next meeting date and time will be Monday, November 2, 2020, 10:30 a.m.
John Seitz moved, seconded by Jeremy Karlin, to approve the retirement of Aaron M. Skinner as
of June 27, 2020, with a salary of $$3,125.41. The motion carried.
Kelli Bennewitz reported the death of former Fire Chief Dale May on July 23, 2020.
Public Comment – None.
There being no further business, the meeting adjourned at 12:13 a.m.
___________________________ ___________________________________
Jim Pendergast, President Kelli R. Bennewitz, Secretary