East Central Reporter

City of Olney Fire Pension Board met March 27. 

Here is the minutes as provided by the board:

Agenda #1 "Call to Order” The City of Olney Fire Pension Board met in the Fire

Station at 9:07 a.m. on March 27, 2019, with Firefighter Michael Pipher presiding.

Agenda #2 “Roll Call” The following members were present at roll call: City Treasurer

Chuck Sanders, Firefighter Taylor Akers, and Firefighter Michael Pipher. Clarence Smith was

absent. Dave Lobacz entered the meeting after the Treasurer’s Report. Assistant City Treasurer

Jane Guinn, and City Clerk Kelsie Sterchi were also present.

Agenda #3 “Approve Minutes from Police Pension Board Meeting on December 18, 2017” 

Mr. Sanders moved to approve the Fire Pension Board minutes from

December 18, 2017, seconded by Firefighter Akers. A majority affirmative voice vote was

received.

Agenda #4 “Treasurer’s Report”

     4-A “Discussion: Income and Expense May 1, 2017 - February 28, 2018” The Board was

provided with a copy of an income and expense statement from May 1, 2017, through February

28, 2018.

     Mr. Sanders began by telling the Board that he would be resigning as the City Treasurer

with his last day of employment being April 30, 2018. Mrs. Guinn had recently been appointed

as the new City Treasurer and new Fire Pension Board member upon Mr. Sanders’ departure.

     Mrs. Guinn told the Board that at the moment, the Fire Pension Fund was favorable to the

budget by $7,698.19, but she expected that at the end of the fiscal year, the budget would be

unfavorable by ($66,394.00).

     Looking out six months, Mrs. Guinn expected to receive $13,000.00 in employee

contributions and Corporate Replacement Tax. A CD had also matured on March 8, 2018, in the

amount of $100,000.00. Total cash available totaled $284,087.88.

     Mrs. Guinn advised the Board that an amount of $62,000.00 could be safely invested, but

she recommended leaving that amount in the First National Bank money market account for the

time being. The money market account was still earning one per cent.

     4-B “Discussion: Investment Schedule and Maturities" The Board was provided with an

investment schedule as of February 28, 2018.

     Other than the CD that matured earlier in the month, no more CDs were scheduled to

mature in 2018 until November and December.

     Because the amount invested in variables was at 10.86%, if the Board did choose to make

an investment, the investment would need to be fixed.

     Firefighter Akers moved to approve the Treasurer’s Report, seconded by Mr. Sanders. A

majority affirmative voice vote was received.

     Mr. Lobacz entered the meeting at 9:13 a.m.

Agenda #5 “Discussion/Approve Any Investments” The Board did not wish to

make any investments at this time.

Agenda #6 “Approve Pension Payment Increases” Each year, the State mandates

that pension recipients receive a three per cent increase. Currently, five people were receiving

Fire Pension payments, however, only three were eligible for the increases.

     Firefighter Akers asked why all recipients were not eligible for the increase. Mrs. Guinn

replied that surviving spouses were not eligible, and retirees needed to be receiving payments for

a certain length of time before receiving increases.

     Firefighter Akers moved to approve the three per cent Fire Pension payment increases to

eligible recipients, seconded by Mr. Lobacz. A majority affirmative voice vote was received.

Agenda #7 “Authorize Acquiring New Signature Stamps” Mrs. Guinn would

be the new Treasurer of the Fire Pension Board as of May 1, 2018. Because of this, new

signature stamps would be needed with her and Fire Pension President’s signatures. The price of

the stamps should be between $15.00 and $25.00.

     Mr. Sanders added that Mrs. Guinn would also be changing the signatory cards at the

local banks, effective for May 1, 2018.

     Firefighter Pipher moved to approve the expenditure of up to $25.00 per stamp for new

signature stamps, seconded by Mr. Lobacz. A majority affirmative voice vote was received.

Agenda #8 “Discuss and Act on Fire Pension 2018/2019 Proposed Budget”

The Board was provided with a copy of the proposed 2018/2019 Fire Pension budget.

     The first page detailed revenue. Most of the revenue would be received from the Fire

Pension Tax Levy in the amount of $141,500.00. An amount of $8,372.00 was expected to be

received from Corporate Replacement Tax, and an amount of $20,250.00 was expected to be

received from employee contributions. The remaining revenues were estimates on investments.

     The second page detailed expenditures. Pension payments were expected to be

$245,591.00. The remaining expenditures were for audit fees, compliance fees, fiduciary

insurance, actuary services, and investment services. The proposed budget anticipated an

unfavorable amount of ($61,622.00)

     Noting the expected unfavorable amount, Mr. Sanders told the Board that in April, he

would be recommending that the Council make a $100,000.00 infusion to the Fire Pension Fund

from the General Fund.

     Additionally, when taxes are levied for the Fire Pension, it is based on actuarial reports

that have been received. The Board receives actuarial reports from the State, and from a third

party actuary. In future actuary reports, the fact that the budgets are running negative would need

to be addressed in the actuarial calculations.

     The Police Pension Fund was able to turn a favorable budget. A large part of that was due

to the Police Pension Fund being at least $2,500,000.00, which allowed for up to 45% investment

in equities. Until that point, the Fire Pension Fund was only able to invest 10% into equities.

     Mr. Lobacz asked if there was a payout list that he could review. Mrs. Guinn provided a

listing of retirees and the calculations made to come up with their payments.

     Looking at the projected 2017/2018 amount for pension payments, Mr. Lobacz wondered

why the proposed budget for 2018/2019 did not show a three per cent increase. Mrs. Guinn

replied that the amount for 2018/2019 did not total three per cent because not all retirement

payees were eligible to receive the three per cent increase.

     Firefighter Pipher recalled that certain tax levies had differing caps on what could be

levied. Mr. Sanders confirmed. Tax levies on pension increases were not capped, but if a five

per cent increase was proposed, a public hearing would be needed. Several line items in the levy,

however, did have caps.

     Mr. Lobacz wondered how much of the total tax levy included pensions. Mr. Sanders

replied that the three pension funds made up approximately 50% of the total tax levy

     Mr. Lobacz moved to recommend to the City Council approval of the Fire Pension

2018/2019 proposed budget, seconded by Firefighter Pipher. A majority affirmative voice vote

was received.

Agenda #9 “Discuss and Act on Fire Pension 2018/2019 Proposed Budget” No one from the public was 

present.

Agenda #10 “Scheduling of Next Meeting” The next meeting of the Fire Pension

Board was scheduled for May 1, 2018, at 9:00 a.m.

Agenda #11 “Adjourn" Firefighter Pipher moved to adjourn, seconded by Mr. Sanders. A

majority affirmative voice vote was received.

     The Fire Pension meeting adjourned at 9:33 a.m.

http://www.ci.olney.il.us/Mar%2027%202018.pdf