City of Olney Police Pension Board met February 15.
Here is the minutes as provided by the board:
Agenda #1 Call to Order: Sergeant Brian Nuttall called to order the City of Olney
Police Pension Board meeting for February 15, 2018, at 10:36 a.m.
Agenda #2 Roll Call: The following were present: Sergeant Brian Nuttall, Sergeant Josh
Schlick, and Rick Runyon. Mike Uhl and Gregg Brooks were absent. City Treasurer Charles
Sanders, Assistant City Treasurer Jane Guinn, and City Clerk Kelsie Sterchi were also present.
Agenda #3 Approve Minutes from Police Pension Board Meeting on November 27, 2017:
The Board was provided with the minutes from November 27, 2017.
Mr. Runyon moved to approve the minutes from November 27, 2017, seconded by Sergeant
Schlick. A majority affirmative voice vote was received.
Agenda #4 Treasurer’s Report:
4-A “Discussion: Income and Expense May 1, 2017 – January 31, 2018” The Board was
provided with an income and expense statement from May 1, 2017 – January 31, 2018. Mr.
Sanders reported that the year’s returns had been outstanding. In December of 2017, American
Funds provided over $100,000.00 in returns. Additionally, all money had been received from the
2017 tax levy in an amount of $633,710.42.
4-B “Discussion: Investment Schedule and Maturities” The Board was provided with an
investment schedule and maturities listing as of February 9, 2018.
One annuity was set to come due in April of 2018, and another in May of 2018. Mr.
Sanders cautioned that those annuities should not be relied upon to meet monthly expenses
because a favorable rate of return may be available if the annuities are renewed.
Current cash on hand totaled $981,589.65. The total funds for the Police Pension Fund
came in at $5,020,587.21. Over the next six months, $319,913.58 would be needed to make the
monthly pension payments.
Agenda #5 Edward Jones Presentation: LaNae Mitchell told the Board that
American Funds had paid out about $120,000.00 in returns during December. The money went
into the Edward Jones money market account until the Board was able to take action on
investing.
Last year, the returns with Edward Jones came in at 14.82%. Year-to-date, the returns
totaled 1.5%.
Mrs. Mitchell did not recommend investing in a one year CD at this time because interest
rates were expected to rise. Mr. Runyon and Sergeant Schlick were in favor of a six month CD.
Mr. Sanders reminded the Board that the money market account at First National Bank
would draw 1% interest. The Board was also scheduled to meet again in March, if they did not
wish to make decisions at this meeting to invest all available funds. Additionally, the March
meeting would be the time for the Board to approve the preliminary budget for the next fiscal
year. This would need to be done before presenting the preliminary budget to the City Council.
Agenda #6 Authorize Any New Investments: Mr. Runyon moved to invest
$100,000.00 in the First National Bank money market account, and to invest $400,000.00 in a six
month, 1.7% CD with Edward Jones, seconded by Sergeant Schlick. A majority affirmative
voice vote was received.
Agenda #7 Authorize Payment of Fiduciary Liability Insurance Premium:
Mr. Sanders told the Board that the fiduciary liability premium invoice had been
received and paid for by the City. The premium was the same amount as the expiring policy in
the amount of $12,715.00. Mr. Sanders requested authorization for payment of the premium.
Sergeant Schlick moved to approve payment of $12,715.00 for the fiduciary liability
premium, seconded by Mr. Runyon. A majority affirmative voice vote was received.
Mrs. Mitchell exited the meeting at 10:54 a.m.
Agenda #8 Approve Pension Payment Increases: Mr. Sanders reminded the
Council that each year, the State mandated a 3% pension payment increase to those eligible.
Also required was Board action to approve the increases. Payees such as surviving spouses and
those below a certain age would not be eligible for the increase per the Pension Code.
Mr. Runyon moved to approve the 3% pension payment increases to eligible parties, as
required by State law, seconded by Sergeant Schlick. A majority affirmative voice vote was
received.
Agenda #9 Public Comments/Presentations: No one from the public was
present.
Agenda #10 Scheduling of Next Meeting – March 28, 2018, 8:30 a.m.: The
Board was in favor to keep their next meeting date scheduled for March 28, 2018, at 8:30 a.m.
Agenda #11 Adjourn: Mr. Runyon moved to adjourn, seconded by Sergeant Schlick. A
majority affirmative voice vote was received. The meeting of the Police Pension Board
adjourned at 10:56 a.m.
http://www.ci.olney.il.us/pp%20Feb%2015%202018.pdf
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