East Central Reporter

City of Olney Police Pension Board met Nov. 15.

Here are the minutes provided by the board:

AGENDA #1 CALL TO ORDER: Vice President, Sergeant Josh Schlick, called to order the City of Olney Police Pension Board meeting for November 15, 2022, at 8:33 a.m.

AGENDA #2 ROLL CALL: The following were present: Rob Brown, Sergeant Josh Schlick, Sergeant Holly Hamilton, and Chuck Sanders. Rick Runyon was absent. City Treasurer Jane Guinn and City Clerk Kelsie Sterchi were also present.

AGENDA #3 ACKNOWLEDGE SGT. HOLLY HAMILTON AS NEW BOARD MEMBER: Following James Iglehart’s resignation from the Board, Sergeant Holly Hamilton was elected to serve in his place. The Board thanked Sergeant Hamilton for her willingness to serve, and welcomed her aboard.

AGENDA #4 APPROVE MINUTES FROM POLICE PENSION BOARD MEETING ON OCTOBER 6, 2022: The Board was provided with the minutes from October 6, 2022. Mr. Brown moved to approve the minutes from October 6, 2022, seconded by Sergeant Schlick. A majority affirmative voice vote was received.

AGENDA #5 TREASURER’S REPORT:

5-A “Discussion: Income & Expense May 1, 2022 – October 31, 2022” The Board was provided with a copy an income and expense statement from May 1, 2022, through October 31, 2022.

Mrs. Guinn told the Board that most of the tax levy income had been received. She was expecting the final payment at any time.

So far, income totaled $668,546.61 with expenses totaling $334,555.35. Expenses had included $333,231.00 in pension payments, and the $1,324.35 compliance fee.

5-B “Discussin: Investment Results Summary – September 30, 2022” Mrs. Guinn said she had not yet received October’s report from the IPOPIF, so she could only report as of September 30th.

An amount of $188,887.31 was in the money market account at First National Bank in Olney, and $36.76 was in the TrustBank checking account.

The IPOPIF investment pool held $5,426,408.01 with $400,863.01 in CDs. The City’s overall Police Pension Fund totaled $6,016,195.09.

MTD, the Fund lost (6.65%). QTD, the Fund lost (4.93%). Since inception, the Fund had lost (14.43%). Mrs. Guinn felt that those losses were typical of the current market conditions.

AGENDA #6 REVIEW/ACCEPT THE FOSTER/FOSTER ACTUARIAL REPORT: Since the State had consolidated the downstate pension funds, the State had hired their own actuarial consultants, Foster/Foster. This meant that the Illinois Department of Insurance would no longer be supplying an annual actuarial report.

This year’s actuarial report said that the City would need a minimum contribution of $544,094.00.

Mr. Brown moved to accept the Foster/Foster actuarial report, seconded by Mr. Sanders. A majority affirmative voice vote was received.

AGENDA #7 REVIEW/ACCEPT THE REQUIRED REPORTING TO MUNICIPALITY: In year’s past, the City’s third party actuary had completed the Required Reporting to Municipality. Last year, Mrs. Guinn prepared the report with Kempter CPA Group reviewing the report. This year, Mrs. Guinn was the sole preparer of the report.

Once approved by the Board, Mrs. Guinn would present the report to the City Council.

The report showed that the Police Pension Fund’s total assets were at $6,476,847.00 with the actuarial value of assets at $6,621,389.00.

The assumed investment return was at 6.80%, but the actual investment return came in at (3.84%).

A total of 12 active employees were contributing to the Fund with 11 annuitants, 3 surviving annuitants, and 1 deferred annuitant.

Overall, the Fund had a funded ratio at 54%. That percentage would need to hit 90% in the next 10 to 15 years.

The unfunded actuarial accrued liability was $5,651,445.00.

Mr. Brown asked how the Fund could get to 90%. Mrs. Guinn replied that the City would just need to keep contributing funds and hope that the stock market performed well. For the past several years, the stock market had been consistently rising, but that was not the case at present.

Mr. Sanders moved to accept the Required Reporting to Municipality, seconded by Sergeant Schlick. A majority affirmative voice vote was received.

AGENDA #8 REVIEW/APPROVE THE RECOMMENDED 2022/2023 TAX LEVY FOR THE POLICE PENSION FUND: The recommended tax levy for 2022/2023 included the recommended contribution of $544,094.00, plus expenses and an additional contribution. Expenses should total $17.018.00 and include fees related to the annual report, audit, and fiduciary insurance. Mrs. Guinn also recommended an amount of $75,000.00 as an additional contribution. This would make the suggested tax levy amount at $636,112.00.

Mrs. Guinn pointed out that was the lowest levy amount for the past four years.

Mr. Brown moved to approve the recommended 2022/2023 tax levy for the Police Pension Fund, seconded by Sergeant Hamilton. A majority affirmative voice vote was received.

AGENDA #9 APPROVE POLICE PENSION PAYMENT INCREASES EFFECTIVE JANUARY 1, 2023: Each year, statute provided that retirees would receive a 3% increase. Surviving spouses did not receive any increases.

Sergeant Hamilton moved to approve the Police Pension payment increases, effective January 1, 2023, seconded by Sergeant Schlick. A majority affirmative voice vote was received.

AGENDA #10 AUTHORIZE PAYMENT/REIMBURSEMENT OF INVOICES: Mrs. Guinn had been in receipt of an invoice from Kemper CPA Group in the amount of $800.00 for the audit fee and $2,717.50 for the annual report. She noted that the annual report fee was higher due to the extra work needed in setting up the new State requirements.

Sergeant Schlick moved to authorize payment/reimbursement of the Kemper CPA Group charges for the audit fee and annual report, seconded by Mr. Brown. A majority affirmative voice vote was received.

AGENDA #11 PUBLIC COMMENTS/PRESENTATIONS: No one from the public was present.

AGENDA #12 SCHEDULING OF NEXT MEETING: The next meeting of the Police Pension Board was scheduled for February 28, 2023, at 8:30 a.m.

AGENDA #13 ADJOURN: Mr. Brown moved to adjourn, seconded by Sergeant Schlick. A majority affirmative voice vote was received. The meeting of the Police Pension Board adjourned at 8:54 a.m.

https://cms2.revize.com/revize/olneynew/pp%20nov%2015%202022.pdf