Firemen's Pension Fund Board of Trustees Meeting

URBANA FIREMEN'S PENSION BOARD OF TRUSTEES MEETING FRIDAY, OCTOBER 15, 2021 The Firemen's Pension Board of Trustees of the City of Urbana, Illinois, met at 10:00am, Friday, October 15, 2021. The meeting was held in person in the City Council Chambers at 400 S. Vine St., Urbana, IL 61801 MEMBERS PRESENT: Josh Ingold, FF / Fund Secretary - end of term 7/ 28/ 2022 Mark Clapp, Retired Firefighter - end of term 4/ 30/ 2024 Elizabeth Hannan, Fund Treasurer - end of term 6/ 30/ 2022 Brian Hoff, FF / Fund President - end of term 7/28/ 2022 Shaennon Clark, Trustee - end of term 6/ 30/ 2023 MEMBERS ABSENT: NONE OTHERS PRESENT: Aaron Sutton, Busey Bank Wealth Management; April Smysor, Recording Secretary; Bryan Strand, Fund Attorney; Ronald Eldridge, Fund Assistant Treasurer OTHERS ABSENT: J:> mes Dobrovolny, Fund Attorney; Carla Tucker, Fund Accountant 1. Call to Order Fund President Brian Hoff called the meeting to order at 10:00am. 2. Investment Business Aaron Sutton of First Busey Trust & Investment Co. was present. He went over the quarterly report and reviewed the pension fund's investment activity through the quarter ended September 30, 2021. The market value as of the end of the quarter was $47,295,737 showing a loss of $206,663 from the previous quarter. The portfolio had a small loss of 0.4% for the quarter ended September 30, 2021, which is slightly behind the benchmark. YTD the portfolio is ahead of the blended benchmark by 1.0%, returning 15.2% vs 14.2% . Overall, the portfolio returns were pretty flat for the quarter. Covid has affected the market but the peak of the Delta variant seems to be past us which is good, however we are still left with supply chain issues. Aaron believes we will continue to see flat returns for the next several quarters due to the supply chain issue and higher inflation rates. Discussion on if Busey should just hold the cash from the matured bonds or purchase additional bonds. The current cash on hand is $483,000 which is about 10% of the account value. It was decided that because the assets are being transferred to FPIF on December 1, 2021 that they will hold the cash to make the transfer easier. Urbana Firemen's Pension Board of Trustees Minutes: October 15, 2021 Page 2 of 5 This is the final meeting with First Busey Trust & Investment Co. since all assets are being transferred to FPIF. Motion to receive and file the Busey report was made by Fund President Hoff, seconded by Fund Secretary Ingold and carried by roll call vote as follows: Yes: Ingold, Clapp, Hoff No: None *Hannan stepped out of the meeting. 3. Approval of Minutes from Previous Meetings A motion to approve the minutes from the July 30, 2021 was made by Fund Secretary Ingold, seconded by Trustee Clapp and carried by roll call vote as follows: Yes: Ingold, Clapp, Hoff No: None 4. Approval of Quarterly Financial Report and Pension Benefit Changes Fund Assistant Treasurer Eldridge presented the Financial Report and reported there was nothing unusual to report this quarter. The following benefit changes were noted; Derrick Odle turned 50 in September and started receiving his full pension. Dave Wisher received a 3% increase in August. Dependent pensioner Mary Ostendorf passed away. Michael Clark requested his contributions of $18,399 be rolled over into a Fidelity account. A motion to accept the quarterly financial report by was made by Fund Secretary Ingold, seconded by Fund President Hoff and carried by roll call vote as follows: Yes: Ingold, Clapp, Hoff No: None 5. Public Input There was none. 6. Unfinished Business a. Dade reciprocity request - Ingold Fund Secretary Ingold reported he has received all of the required documents. Dade will receive a pension from Urbana based on his final salary from Urbana and his total time from Quincy and Urbana. He is required to work a minimum of three years at Urbana. *Hannan returned to the meeting. Urbana Firemen's Pension Board of Trustees Minutes: October 15, 2021 Page 3 of 5 b. Positive Pay Fund Treasurer Hannan reported they are working on implementing positive pay which is an automatic cash management tool that will help minimize the funds exposure to check fraud. c. New mayoral appointee Fund Treasurer Hannan introduced Shaennon Clark, who is the current Deputy Finance Director, as the new mayoral appointee to the fund. Shaennon's term will begin immediately and run through June 30, 2023. A motion to accept the appointment of Shaennon Clark to the Firefighter's Pension Fund was made by Fund Treasurer Hannan, seconded by Fund Secretary Ingold and carried by roll call vote as follows: Yes: Ingold, Clapp, Hannan, Hoff No: None d. Resolution to transfer funds to FPIF A motion to pass the resolution to transfer funds to FPIF was made by Fund Secretary Ingold, seconded by Fund President Hoff and carried by roll call vote as follows: Yes: Ingold, Clapp, Hannan, Hoff, Clark No: None 7. NEW BUSINESS a. New mayoral appointee Moved to 6c in unfinished business in order to allow newly appointed trustee Shaennon Clark the ability to vote on 6d. b. Review of available funds Item was previously discussed in the meeting and it was recommended by Fund Attorney Bryan Strand that the fund keep 2-3 months of cash on hand to pay out retirees while the fund transfers are being made. c. Cash management procedures reference state investment pool Item moved to the next quarterly meeting. d. Review/ approval of actuarial valuation and tax levy request Item moved to 7i for discussion. Urbana Firemen's Pension Board of Trustees Jvfinutes: October 15, 2021 Page 4 of 5 e. Aldo Gomez resignation 9 /17 /21 - Tier 2 Fund President Hoff reported Aldo didn't complete his full year with Urbana and has not requested a refund of his contributions at this time. f. New hire Jacob Luffman 8/9/21 - Tier 2 Fund Secretary Ingold reported he has all of Luffman's paperwork and he is already working. A motion to accept Jacob Luffman into the fund was made by Fund Treasurer Hannan, seconded by Fund President Hoff and carried by roll call vote as follows: Yes: Ingold, Clapp, Hannan, Hoff, Clark No: None g . Pension Physicals Fund President Hoff brought up that the Pension Board has been contributing to the cost of the of the Initial Employee Physicals but because the Fund has to accept the member no matter the results, he doesn't think the Pension Board should continue to contribute to the cost. Fund Secretary Ingold and Fund Attorney Bryan Strand agreed that the Fund is not required to pay and agreed they shouldn't continue to do so. Fund Treasurer Hannan indicated that if the Pension Board isn't paying then they wouldn't get a say on the tests that are completed during the physicals. A motion to halt contributions for pension physicals for the time being was made by Fund President Hoff, seconded by Fund Secretary Ingold and carried by roll call vote as follows: Yes: Ingold, Clapp, Hoff, Clark No: None Abstained: Hannan h. Pension Training Fund President Hoff reported that he and Fund Secretary Ingold will be attending the pension conference on October 25 th and 26 th . He plans to ask as many questions as he can about the FPIF fund transfers. 1. Review/ approval of actuarial valuation and tax levy request Fund Treasurer Hannan presented the Actuarial Funding Report from Lauterbach & Amen, LLP. The results of the report were that the recommended contribution amount be $1,480,253 for July 1, 2021 to June 30, 2022 which is $243,416 less than the prior year. Urbana Firemen's Pension Board of Trustees Minutes: October 15, 2021 Page 5 of 5 Fund Assistant Eldridge brought up the idea that the city could still levy the higher amount of $1,723,669 from the year prior. Fund Treasurer Hannan stated that city council adopted a specific policy to fund it at 90% which is what she is recommending. Discussion was had on what exactly the policy meant and if the Fund should request the $1,723,669. Fund Attorney Strand recommended accepting the recommended amount and then asking for any excess at a later time. A motion to request the funding of $1,480,253 which is the recommended contribution on the Actuarial Report was made by Fund Treasurer Hannan, seconded by Retiree Clapp and carried by roll call vote as follows: Yes: Ingold, Clapp, Hannan, Hoff, Clark No: None J· Update Retiree documents Fund President Hoff reported he and Fund Secretary Ingold have been working on updating all the retiree documents to help improve their processes. 8. NEXT QUARTERLY MEETING The 2022 quarterly meeting dates are as follows; January 28, 2022 at 9:30am April 29, 2022 at 9:30am July 29, 2022 at 9:30am. October 28, 2022 at 9:30am. 9. ADJOURNMENT Meeting was adjourned at 11 :46am. Respectfully Submitted: Date Approved: ) /J.-.8/ d-5\J,~ April Smysor Recording Secretary ~ld Firefighter/ Fund Secretary