East Central Reporter

City of Olney Fire Pension Board met Nov. 22.

Here are the minutes provided by the board:

AGENDA #1 CALL TO ORDER The City of Olney Fire Pension Board met in the Fire Station at 9:00 a.m. on November 22, 2022, with Secretary, Chief Rusty Holmes, presiding.

AGENDA #2 ROLL CALL The following members were present: Fire Chief Rusty Holmes, Firefighter Nathaniel Barnes, City Treasurer Jane Guinn, and Leon Stallard. City Clerk Kelsie Sterchi was also present. Firefighter Daron Harmon was absent.

AGENDA #3 ACKNOWLEDGE FIREFIGHTER NATHANIEL BARNES AS NEW BOARD MEMBER Upon Robert Sakowicz’s resignation from the Fire Pension Board, Firefighter Barnes was elected to fill his position.

AGENDA #4 APPROVE MINUTES FROM FIRE PENSION BOARD MEETING ON OCTOBER 11, 2022 Mrs. Guinn moved to approve the Fire Pension Board minutes from October 11, 2022, seconded by Mr. Stallard. A majority affirmative voice vote was received.

AGENDA #5 TREASURER’S REPORT

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

Mrs. Guinn reported that income had totaled $250,145.05. A total revenue amount of $283,398.00 was expected for the year.

Expenses totaled $145,776.01. A total expense amount of $282,078.00 was expected for the year.

Cash balances listed were as of September 30, 2022, because more recent reports had not yet been received from the FPIF.

An amount of $49,212.16 was being held in the money market account at the First National Bank in Olney. An amount of $47.19 was in the TrustBank checking account. The FPIF investment pool held $2,084,520.00.

Mrs. Guinn would need to keep three months worth of pension payments on hand.

Mr. Stallard wondered if Mrs. Guinn simply asked FPIF for additional funds when needed. Mrs. Guinn confirmed. She said that funds would need to be requested before the first of the month in order to receive them by the 14th of the month.

Mr. Stallard then asked if employee contributions went directly to FPIF. Mrs. Guinn said that the contributions were received locally and then she would transfer funds to FPIF.

5-B “Investment Results Summary – September 2022” Mrs. Guinn told the Board that as of the beginning of September, the Fund had $2,255,641.01 with an unrealized loss of ($172,251.86). The month ended with the Fund totaling $2,084,520.00.

The MTD rate of return was (7.59%) with a YTD return of (20.86%).

Chief Holmes asked for details on the unrealized loss. Mrs. Guinn and Mr. Stallard explained that mutual funds that had gone down could still generate short term capital gains. In order to realize, the security would need to be sold. Investors would want to realize that gain by the end of the year in order not to pay taxes.

Chief Holmes moved to approve the Treasurer’s Report, seconded by Mr. Stallard. A majority affirmative voice vote was received.

AGENDA #6 ELECTION OF VICE PRESIDENT AND/OR OTHER OFFICERS Robert Sakowicz had been the Board’s Vice President. Due to his resignation, the Board would need to elect a new Vice President.

Mr. Stallard moved to elect Firefighter Barnes as Vice President and to keep the other officers the same, seconded by Mrs. Guinn. A majority affirmative voice vote was received.

AGENDA #7 ACCEPT NATHANIEL BARNES’ APPLICATION FOR MEMBERSHIP IN THE FIRE PENSION FUND Chief Holmes moved to accept Firefighter Barnes’ application for membership in the Fire Pension Fund, seconded by Mr. Stallard. A majority affirmative voice vote was received.

AGENDA #8 “REVIEW/ACCEPT THE FOSTER/FOSTER ACTUARIAL REPORT” Mrs. Guinn reminded the Board that a few years ago, Art Tepfer had been used as a third-party actuary for the Board. Mr. Tepfer had retired, and the Board had chosen to only utilize the actuarial report from the Illinois Department of Insurance (IDOI). Since the consolidation of the downstate pension funds, the FPIF had chosen to utilize Foster/Foster as the actuary, and the IDOI’s actuarial report would no longer be needed.

The FPIF had said that the City’s minimum contribution amount should be $81,616.00, but Mrs. Guinn said that a higher amount would actually be levied.

Chief Holmes asked if the Fund was still greatly underfunded. Mrs. Guinn indicated so, and said that extra funds had been contributed each year for the past several years. Those contributions were helpful in gaining ground.

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

AGENDA #9 REVIEW/ACCEPT THE REQUIRED REPORTING TO MUNICIPALITY Each year, the Required Reporting to Municipality needed to be presented to the City Council.

As of April 30, 2022, the total assets were at $2,349,756.00 with an actuarial value of $2,579,748.00. The assumed investment return had been 7.125%, but the actual investment return had been (7.08%).

Last year, the assumed investment return was 5.75% with an actual investment return of 9.29%.

At the time this report was created, two full-time firefighters were on staff instead of the regular three. Mrs. Guinn believed that to be part of the reason that the recommended contribution amount had been lower.

The funded ratio of the Fund was at 68%. Last year, the funded ratio was 58.64%, and the year before that was 53.50%.

Firefighter Barnes moved to accept the Required Reporting to Municipality, seconded by Mr. Stallard. A majority affirmative voice vote was received.

AGENDA #10 REVIEW/APPROVE THE RECOMMENDED 2022/2023 TAX LEVY FOR THE FIRE PENSION FUND Mrs. Guinn recommended requesting a tax levy amount of $220,134.00. That number included the minimum contribution amount of $81,616.00, $13,518.00 for expenses, and an additional contribution amount of $125,000.00. The recommended total of the tax levy was less than it had been for at least the past 3 years.

Firefighter Barnes moved to approve the recommended 2022/2023 tax levy amount of $220,134.00 for the Fire Pension Fund, seconded by Mr. Stallard. A majority affirmative voice vote was received.

AGENDA #11 APPROVE FIRE PENSION PAYMENT INCREASES EFFECTIVE JANUARY 1, 2023 Mrs. Guinn reminded the Board that each year, State statute granted a 3% pension payment increase to retirees. This would not include surviving spouses.

Mr. Stallard asked if this State statute had always been in place. Mrs. Guinn was not sure when the statute was put into place, but it had been there as long as she had been with the City. Chief Holmes said that he believed that amount would never increase unless the lawmakers voted for the change.

Mr. Stallard moved to approve the 3% Fire Pension payment increases, effective January 1, 2023, seconded by Firefighter Barnes. A majority affirmative voice vote was received with Chief Holmes abstaining.

AGENDA #12 PUBLIC COMMENTS/PRESENTATIONS No one from the public was present.

AGENDA #13 SCHEDULING OF NEXT MEETING The next meeting of the Fire Pension Board was scheduled for at 9:00 a.m. on March 2, 2023.

AGENDA #14 ADJOURN Chief Holmes moved to adjourn, seconded by Mr. Stallard. A majority affirmative voice vote was received.

The Fire Pension meeting adjourned at 9:20 a.m.

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