HomeMy WebLinkAbout06-27-20_Police_Meeting_MinutesGalesburg Police Pension Fund Board of Trustees June 29, 2020
Galesburg Police Pension Fund Board of Trustees Regular Meeting
Erickson Conference Room, City Hall
55 West Tompkins Street, Galesburg, Illinois
June 29, 2020
10:30 a.m.
Call to order by President Michael DeForest at 10:30 a.m.
Physically Present: Dave Christensen, Michael DeForest, Chris Hootman, Curt Kramer, and Mike
Ingles. Present Via Telephone: Diana Whitson. Also Present: City Clerk Kelli Bennewitz, Alex
Courtney, Rob Arth, Art Busby, Phyllis Gau, Kevin Cavanaugh, and Liam Heneghan.
City Clerk Bennewitz administered the oath of office to Dave Christensen and Curt Kramer,
newest appointed Pension Board members.
The following slate of officers was presented:
Christ Hootman - President
Mike Ingles - Vice President
Diana Whitson - Secretary
Dave Christensen - Assistant Secretary
Mike DeForest moved, seconded by Diana Whitson, to approve the slate of officers as
presented. The motion carried.
City Clerk Bennewitz presented outgoing board president and board member Mike DeForest
with a gift from the Pension Board.
Mike DeForest moved, seconded by Diana Whitson, to approve the minutes from the January
27, 2020, meeting. The motion carried.
Alex Courtney, Courtney & Aldrich, LLC, presented the financial statements for the fund e nding
March 31, 2020. Total assets are $24,614,868 and total liabilities are $252,523. The net
position-restricted pension benefits is $24,362,345. He also provided a transaction report for
the period January - March 2020.
Curt Kramer moved, seconded by Mike Ingles, to approve the quarterly report from Courson &
Associates. The motion carried.
Kevin Cavanaugh, Lauterbach & Amen, LLP, provided a presentation on the Police Pension Fund
actuarial funding report. Highlights included:
● Current year contribution recommendation - $3,108,000
● Statutory minimum contribution - $2,294,000
Galesburg Police Pension Fund Board of Trustees June 29, 2020
● Prior year contribution recommendation - $2,780,000
● Current year funded percentage - 47.44%
● Prior year funded percentage - 48.43%
● Active member count - 48
● Inactive member count - 61
A discussion was held on whether or not a footnote could possibly be added to future actuarial
funding reports showing the fund’s variable annuities. Kevin will investigate the possibility and
Kelli will send reports to him for his review. A copy of the presentation has been attached to
this official record.
Chris Hootman moved, seconded by Dave Christensen, to approve a resolution recommending
to the City Council a tax levy of $3,108,000. The motion carried.
Art Busby, Stratford Investments, reported on the performance review for the period ending
March 31, 2020, and June 24, 2020.
Highlights noted include:
● The total fund investment return through June 24, 2020 was -3.5 percent with the fund
total at $26,450,617.
● For the last twelve months (June 2019 to June 2020), the fund’s investment return is 1.8
percent.
● 71.4 percent of the assets will mature in less than eight years.
● The COVID-19 pandemic equals high unemployment and recession records.
A copy of the performance review has been attached to this official record.
Mike DeForest left the meeting at 11:47 a.m.
Rob Arth and Phyllis Gau reviewed the Galesburg Police Variable Annuities as of March 31,
2020, showing an ending value of $14,154,378 and a total death benefit of $20,897,798. A c opy
of the portfolio review has been attached to this official record. This reflects a loss of 20.91
percent as of December 31, 2019. Phyllis reported that we are in a recession but that there has
been quick recovery so far.
Old Business
A motion was made by Mike Ingles, seconded by Chris Hootman, to table the Rules &
Regulations until the next meeting. A copy will be sent out for review.
New Business:
Dave Christensen moved, seconded by Diana Whitson, to approve the transfer of creditable
service for former office Richard Brodrick to the East Peoria Pension Fund. Brockerick will pay
Galesburg Police Pension Fund Board of Trustees June 29, 2020
the Galesburg Pension Fund $24,430.45 and Galesburg in turn will pay $52,173.32 to the East
Peoria Police Pension Fund. The motion carried.
City Clerk Bennewitz noted that the next regularly scheduled meeting will be July 27th. The
consensus of the Board was to move ahead with the meeting as scheduled. It was also agreed
that the official date and time of the Pension Board meetings would be changed to the last
Tuesday of the month at 9 a.m. The change will allow the board to use the Erickson Conference
room technology and it’s large enough to accommodate the full board and advisers.
The October meeting will be held Tuesday, October 27, 2020, 9 a.m., in the Erickson Conference
Room. A meeting invite will be sent out.
Public Comment – None.
There being no further business, the meeting was adjourned at 12:17 p.m.
___________________________ ___________________________________
Mike DeForest, President Kelli R. Bennewitz, City Clerk