110 E. Walnut Street, Oglesby, IL 61348 • 815-883-3389
110 E. Walnut Street, Oglesby, IL 61348 • 815-883-3389

Minutes: Sept 26, 2018 Open House

Senica Square Open House
Wednesday, September 26, 2018
5 to 7 p.m.

1 to 3 pm. Session:

 

Exhibits showing the concept plan for Senica Square were displayed and Parks Director Bob Ghighi and Tourism Coordinator Becky Clinard were on hand to answer questions.  Twenty-one residents attended the 1 p.m. session (not all signed the sign in sheet).

Ghighi and Clinard made a brief presentation on the project, outlining the city’s objectives in creating a new parks space and what the city’s vision for programming the space would include.

Ghighi told the crowd that Senica Square would address some of the shortcomings of Oglesby’s other parks, including being more accessible for not only the handicapped, but for the elderly residents who often complain about having to walk on uneven ground to participate in the farmers market or other events at Senica Square and other city parks.  Ghighi said the centralized downtown location, would allow residents in the city’s core neighborhoods the ability to walk to the park or drive.  Oglesby’s current parks have little to no parking available.  Clinard said the city’s goal was to create an intimate multi-use gathering space for residents to enjoy outdoor activities in the “urban” setting.

Ghighi also explained that the main feature of the park, the chilled ice skating rink would extend the use of the park through the winter, giving residents more opportunities to get out and exercise all year long.  The water feature he said, was not a splash pad like Peru’s, as it would consist of inground fountain heads.  Its purpose would be to allow families with small children or those who may be unable to or choose not to go to the swimming pool a place to picnic and cool off during the summer.  The fountain would also serve as something that all could enjoy while sitting at the tables.  The in-ground jets could be capped and protected when the space is used for performances on the stage, parks and rec classes, art or craft shows and the farmers market.

Clinard told residents that the city envisioned working with other groups in the community, such as the community college, schools, churches and organizations to provide year around programming.  The bandshell will serve as a new home for the municipal band, which plays during the summer, as well as a summer concert series funded by the city’s Band Fund.  There are also plans to expand the farmers market, and host car shows, art shows, craft fairs and some parks and rec classes at the site.  City events, such as Harvest Fest, the winter event and ice-skating would continue to be held at Senica Square.

Residents were then encouraged to ask questions and make comments about the project.

A common concern expressed by Gary Peterlin (resident and a member of Support The Oglesby Pool) and Greg Stein (resident) was that the splash pad should be built near the existing swimming pool.  Both felt that having the water feature in Senica Square would hurt the city’s pool and they also felt the money being used to fund improvements should be used for the pool.  Peterlin said he supported the project, but felt the water feature was unnecessary.  Louis Pioli (resident) said he was not in favor of the splash pad, but when asked what his objections were, said “he didn’t want it.”

Clinard explained that the city would be seeking a grant to fund the improvements, with the city’s share of the costs (if a grant is awarded) coming from the city’s TIF funds.  The TIF expires in 2021, so if the city wants to make use of funds to fulfill its vision of a downtown park, it must act now.  Using TIF funds for Senica Square does not mean that improvements to the pool or Dickinson House (the city’s community center) won’t happen.

Kathy Knoblauch, (resident) and Pam Supan (manager of the local Casey’s Store and an active volunteer for the city) spoke favorably of the project, noting that the downtown location was already being used for city events and they thought the improvements would make the area even more attractive to residents and visitors to the community.  Knoblauch noted that with Oglesby located so close to the State Parks, those visitors are often looking for things to do after a day of hiking in the parks.  Evening activities and the ice skating rink would be a draw not only for Oglesby residents but those from other communities and state park visitors.

Greg Stein questioned the need for a chilled-ice system, noting that the current ice rink is not used much.  Ghighi explained that that was because of the weather.  Last year, the rink was only frozen enough to skate on 5 to 7 partial days.  With a chilled system, the rink could be used from November to March.  The plans also call for skate rentals, which is something the residents have asked for since the current rink was purchased several years ago, said Ghighi.  He said he expects that will increase the use of the rink as well.

Discussion continued, with most questions about the specifics of the project:  the size of the bandshell, the hard surfaces, and the size of the water feature and ice skating rink.  Ghighi talked about the ongoing maintenance of the area, noting that the hard surface and planters would be much easier to maintain than the current bare ground.

Bob Mullane (resident) said he was in favor of the project, noting that he could see the many young families in the community using the park and its added features on a regular basis.  Mullane liked the downtown setting and was particularly excited about the ice rink.  His family uses the present rink when its open, which he noted is not often because of the weather.

After about an hour and a half of questions and comments, the residents broke into smaller groups and talked amongst themselves for another 15 minutes.  At 2:27, the last of the attendees left.

 

 

 

 

 

 

 

Senica Square Open House
Wednesday, September 26, 2018
5 to 7 p.m.

 

NOTE:  This second session of the open house was added after several residents expressed concerns on social media that they would not be able to attend during working hours.  It was announced on social media and on the local radio station.

Exhibits showing the concept plan for Senica Square were displayed and Oglesby Mayor Don Finley and Tourism Coordinator Becky Clinard were on hand to answer questions.  Approximately 15 residents attended the 5 p.m. session (not all signed the sign in sheet).  Many of the attendees had also attended the earlier session – and did not sign in a second time.

Clinard made a brief presentation on the project, outlining the city’s objectives in creating a new parks space and what the city’s vision for programming the space would include.

Discussion then ensued about the project, with many of the repeat attendees voicing the same opinion they voiced in the earlier meeting.  Ken Henry, (resident, business owner) voiced his support for the project and particularly the location of the park, noting that events held in the downtown area attract residents and visitors to Oglesby.

Commissioner Dom Rivara was in the audience and questioned whether the funds could be used for better purposes.  Finley told him that the city had purchased the site almost 7 years ago, and that with TIF 1 expiring, the funds to do the project might not ever be available again.  Finley reminded him that the city was going to seek a grant to help cover the costs, especially for the ice rink, which is the single largest cost in the projected $1 million dollar project.  Finley said that all Oglesby residents would have access to this park, noting the shortage of parking and the rough terrain in most of the city’s parks.  Clinard said the smaller park, would foster a stronger sense of community and would give the city a better venue in which to host events like the farmers market, Harvest Fest, etc.  Currently, even a little rain turns the grounds into a muddy mess.

The discussion eventually veered from the project to other city issues.  By 6:15, all of the audience had left.  Mayor Finley and Clinard remained at city hall until 7 p.m., at which time the open house was officially closed.

 

 

 

 

 

Minutes: October 9, 2018

October 17, 2018

MINUTES OF MEETING

Meeting of the Board of Directors of the Oglesby Police Pension was held on Tuesday, October 9, 2018 at the Oglesby City Hall at 2:00 p.m.

Present:         Chief James Knoblauch              Sgt. Robert Stone

                        Tom Porter                                       Rudolph Gandolfi

                        Alan Hansen

Absent:          N/A

Also present at the meeting was and Peter Corgiat, VP – Trust Officer, Hometown National and Tammy L. Humpage, AVP – Trust Officer, Hometown National Bank.

A quorum being present, Chief Knoblauch called the meeting to order at 2:03 p.m.

On a motion by Tom Porter; second by Rudolph Gandolfi, the minutes of the meeting on July 17, 2018 were approved.  A vote was taken – All in favor; none opposed.

The balance in the money market account as of October 8, 2018 was $350,843.66.

The board had a meeting with Peter Corgiat from Hometown National Bank.  It was noted the period ending September 30, 2018, the portfolio was 10.4% cash, 32.3% equities, 50.7% fixed income and 6.6% in annuities.  The holdings are within the target ranges of the pension fund.  The pension fund can hold up to 35% in equities.

The portfolio, as a whole, has returned 5.44% for the period of September 1, 2016 through September 30, 2018, whereas the benchmark returned 4.47%.  The State of Illinois recommends a return of 6%.

The fixed income portion of the portfolio has a yield of 3.17%.  The Standard Insurance Annuity Contract was sold for $127,723.06.  This annuity was receiving a rate of return of 1.65%.  The proceeds were invested into a $125,000 Certificate of Deposit, maturing September 7, 2021, and receiving a rate of return of 3.00%.

The CD portfolio is laddered well; however, there is $100,000 coming due October 14, 2018.  It was recommended to invest this $100,000 into Wells Fargo CD maturing in 2020 at a rate of 2.95%.  A motion was made by Sgt. Stone, second by Alan Hansen.  Tom Porter – yes, Alan Hansen – yes, Chief Knoblauch – yes, Rudolph Gandolfi – yes, Sgt. Stone – yes.  All in favor, none opposed.  Motion carries.

A recommendation was made to move $100,000 out of the money market account earning 1.87% and purchase $50,000 of Brown Capital Management Small Co and $50,000 into Vanguard Mid Cap Growth Index.  Motion was made by Rudolph Gandolfi; second by Sgt. Stone. Tom Porter – yes, Alan Hansen – yes, Chief Knoblauch – yes, Rudolph Gandolfi – yes, Sgt. Stone – yes.  All in favor, none opposed.

Peter Corgiat explained the Oppenheimer International Growth Fund was not meeting the Banks expectations.  Instead of putting this fund on the watchlist, it was recommended to sell off all shares in the Oppenheimer International Growth Fund and purchase the proceeds into Vanguard International Growth.  Vanguard International Growth is in the top 23rd percentile compared to the Oppenheimer International Growth at 97th percentile.  Vanguard International Growth has a five-star rating by Morningstar with a gross expense ration of .32%, compared to Oppenheimer International Growth with a two-star rating by Morningstar and a gross expense ratio of .85%.  A motion was made to sell all shares of Oppenheimer International and invest the proceeds into the Vanguard International Growth by Tom Porter; second by Alan Hansen.  Tom Porter – yes, Alan Hansen – yes, Chief Knoblauch – yes, Rudolph Gandolfi – yes, Sgt. Stone – yes.  All in favor, none opposed.

Under Old Business:

 

  1. The Pension Board would like Julie Kilday, Baxter and Associates to join us for the next pension meeting in January 8, 2019.

The following bills were approved on a motion by Sgt. Stone; second by Tom Porter.  Vote taken, Tom Porter – Yes, Rudolph Gandolfi – Yes, Tom Porter – yes, Alan Hansen – yes, Sgt. Stone – Yes and Chief Knoblauch – Yes.  All in favor, motion carries.

  1. Hometown National Bank – Quarterly fee for Quarter ending 09/30/2018 is $2,004.79 (annual fee 25 bps of the market value).
  2. Jay Baxter – Monthly Accounting assistance. Annual Report – $1,110.00.
  3. Tax Levy:
    1. First installment 07/02/2018 – $68,233.86
    2. Second installment 07/30/2018 – $91,729.72
    3. Third installment 09/21/2018 – $97,770.86

Total: $257,734.44

Under Application for MembershipJonathon Klinefelter 10/01/2018.  Motion made by Sgt. Stone; second by Rudolph Gandolfi.

Under Application for BenefitsNone.

Under New Business – None

 

Other

 

  1. Board Meetings for 2019 – Motion made by Alan Hansen; second by Sgt. Stone.

There being no further business, the meeting was adjourned at 2:38 p.m. on motion by Sgt. Stone with second by Alan Hansel until the next regular meeting that is to be held on January 9, 2019 at 2:00 p.m.   A vote was taken.  All in favor.

________________________________        ________________________________

Alan Hansen, Secretary                           Chief James Knoblauch, President

Minutes: February 6, 2018

February 6, 2018

MINUTES OF MEETING

Meeting of the Board of Directors of the Oglesby Police Pension was held on Tuesday, January 9, 2018 at the Oglesby City Hall at 2:00 p.m.

Present:         Chief James Knoblauch              Sgt. Robert Stone

                        Tom Porter                                       Rudolph Gandolfi

                        Alan Hansen

Absent:          N/A

Also present at the meeting was and Peter Corgiat, VP – Trust Officer, Hometown National Bank and Colleen Trela from Lauterbach and Amen.  Tammy L. Humpage, Trust Officer, Hometown National Bank was present by phone.

A quorum being present, Chief Knoblauch called the meeting to order at 2:01 p.m.

On a motion by Tom Porter; second by Alan Hansen, the minutes of a special meeting on November 16, 2017 were approved.  A vote was taken – All in favor; none opposed.

The balance in the money market account as of January 9, 2018 was $159,676.40.  This balance is rather high due to the tax payments received

The board had a meeting with Peter Corgiat from Hometown National Bank beginning at 2:05 p.m.  It was noted the period ending December 31, 2017, the portfolio was 4.7% cash, 29.0% equities, 55.2% fixed income and 11.1% in annuities.  The holdings are within the target ranges of the pension fund.  The pension fund can hold up to 35% in equities.

The portfolio, as a whole, has returned 6.3% for the period of January 1, 2017 through November 30, 2017, whereas the benchmark returned 6.38%.

The CD portfolio is laddered well.  The Oglesby Police Pension Plan has an ISU Bond maturing June 1, 2018.  This bond is paying 4.35%.

Sound Shore is not performing to Hometown National Bank’s standards.  A vote was taken to replace the Sound Shore fund with Vanguard Equity Income.  A motion to sell the Sound Shore and reinvest the proceeds into Vanguard Equity Income was made by Chief Knoblauch with a second by Tom Porter.  All in favor, none opposed.

The U.S. Economy grew 3.2% in the third quarter.  This was the strongest growth in three years.  It came about with the hopes of reduced government regulation and the prospect of tax cuts.  Analysts believe that the economy has the potential to reach and maintain 3.5-4.0% growth.  The economy should approach the lower end of that range in 2018.

The stock market rallied in 2017.  The Dow Jones Avg had a total return (growth plus dividends) of 28.11%, the broader S&P 500 did 21.8%, and tech-heavy NASDAQ returned 29.64%.  Much of this was driven by the rise in the FAANG stocks – Facebook, Apple, Amazon, Netflix, and Google.

We believe that this leaves room for more growth in the sectors outside of the technology area.  That did not run up so much.  So we are constructive on the stock market for this year.  Not to the same extent as 2017, but we do think it will still be a good year, as fundamentals continue to improve.

The bond market returned 3.54% in 2017.  Interest rates are expected to rise over the next year, as the Federal Reserve continues to normalize rates.  This means that they have kept short term rates artificially low since the crisis of 2008.  They now feel that the economy is sustainable on its own, and they may raise short term rates and allow longer term rates to adjust to what the markets will bear.

So we think that both the stock and bond markets will once again have positive returns, but equities remain our asset of choice.

Under Old Business:

 

  1. Douglas Knoblauch disability case – Motion to approve amendment of March 28th to January 8, 2016 by Tom Porter; second by Sgt. Stone. Tom Porter – yes, Alan Hansen – yes, Sgt. Stone – yes, Rudolph Gandolfi – yes, Chief Knoblauch – recused.  Motion carries.

The following bills were approved on a motion by Tom Porter with second by Alan Hansen.  Vote taken, Tom Porter – Yes, Alan Hansen – Yes, Rudolph Gandolfi – Yes, Sgt. Stone – Yes and Chief Knoblauch – Yes.  All in favor, motion carries.

  1. Hometown National Bank – Quarterly fee for Quarter ending 12/31/2017 is $1,941.52 (annual fee 25 bps of the market value).
  2. Jay Baxter – Monthly Accounting assistance Annual Statement – $355.00
  3. Lauterbach & Amen, LLP – Actuarial Valuation – $2,000.00

Under Application for Membership – None

Under Application for Benefits – None.

Under New Business

 

  1. Lauterbach & Amen – completion of GASB 67/68 actuarial report requirements.
    1. Total Pension Liability – $7,935,870
    2. Employer’s Net pension Liability is $5,011,518 or 37% funded

The Pension Board has requested a meeting with City Council to discuss adopting a transition plan.  This is a formal funding policy between the City of Oglesby and the Police Pension Board.  This will enforce a 15-19% increase in city contributions over the next 3-4 years

Other

 

  1. IPPAC meeting dates
    1. 2018 Annual Spring Conference – May 16th, 17th & 18th @ Jumers

There being no further business, the meeting was adjourned at 3:04 p.m. on motion by Tom Porter with second by Sgt. Stone until the next regular meeting that is to be held on April 10, 2018 at 2:00 p.m.   A vote was taken.  All in favor.

________________________________        ________________________________

Alan Hansen, Secretary                           Chief James Knoblauch, President

Minutes: May 9, 2018

May 9, 2018

MINUTES OF MEETING

Meeting of the Board of Directors of the Oglesby Police Pension was held on Tuesday, April 10, 2018 at the Oglesby City Hall at 2:00 p.m.

Present:         Chief James Knoblauch              Sgt. Robert Stone

                        Tom Porter                                       Rudolph Gandolfi

                        Alan Hansen

Absent:          N/A

Also present at the meeting was and Peter Corgiat, VP – Trust Officer, Hometown National and Tammy L. Humpage, AVP – Trust Officer, Hometown National Bank.

A quorum being present, Chief Knoblauch called the meeting to order at 2:02 p.m.

On a motion by Tom Porter; second by Sgt. Robert Stone, the minutes of the meeting on January 9, 2018 were approved.  A vote was taken – All in favor; none opposed.

The balance in the money market account as of April 10, 2018 was $114,667.63.  This balance will cover five months of payroll.

The board had a meeting with Peter Corgiat from Hometown National Bank.  It was noted the period ending March 31, 2018, the portfolio was 3.7% cash, 29.8% equities, 55.2% fixed income and 11.3% in annuities.  The holdings are within the target ranges of the pension fund.  The pension fund can hold up to 35% in equities.

The portfolio, as a whole, has returned 5.47% for the period of September 1, 2016 through February 28, 2018, whereas the benchmark returned 4.31%.

The CD portfolio is laddered well; however there is $180,000 coming due this quarter.  It is Hometown National Bank’s recommendation to invest $80,000 coming due in June 2018 into CD’s maturing in 2020 and 2021. Motion made by Tom Porter; second by Alan Hansen.  All in favor.  Chief James Knoblauch – Yes, Sgt. Robert Stone – Yes, Tom Porter – Yes, Rudolph Gandolfi – Yes, Alan Hansen – yes.

A recommendation was made to purchase $50,000 of Vanguard 500 Index and $50,000 of Vanguard Mid Cap Growth with the CD maturing in the amount of $100,000 on April 14, 2018.  A motion was made to purchase these two funds by Sgt. Robert Stone; second by Tom Porter.  All in favor.  Chief James Knoblauch – Yes, Sgt. Robert Stone – Yes, Tom Porter – Yes, Rudolph Gandolfi – Yes, Alan Hansen – yes.

The Standard Insurance Annuity Co. Annuity Contract may be surrendered with no penalty as of November 2009.  This contract is paying 1.65%.  It is Hometown National Bank’s recommendation to surrender this contract for $126,000 and reinvest into a Corporate CD maturing in 2021 with a rate of 2.85% or better.  Motion to purchase a Corporate CD made by Tom Porter; Second by Sgt. Robert Stone.  All in favor.   Chief James Knoblauch – Yes, Sgt. Robert Stone – Yes, Tom Porter – Yes, Rudolph Gandolfi – Yes, Alan Hansen – yes.

Economic Analysis:

  • US Real GDP expanded 2.9% on an annualized basis in the 4th quarter, based on the final estimate – up from the previous estimate of 2.5%.
  • The US unemployment rate remained at 4.1% in February, despite payroll employment increasing by 313,000 jobs – further confirmation that the economy is not at full employment as the labor participation rate is only edging off historic lows.
  • US household debt increased 5.2% in the 4th quarter – fastest pace since 2007 – after increasing 3.5% in the 3rd
  • A recent report by the Federal Reserve showed that the total market value of household real and financial assets totaled $114.4 trillion at year-end 2017(up $50 trillion from 2009), and equaled 5.9 times 2017 GDP, exceeding the housing bubble peak of 5.8 times and the tech bubble peak of 5.1 times.
  • The median price of a US home increased 5.3% year-over-year in the 4th quarter, according to the National Association of Realtors.
  • Business borrowing increased 3.7% in the 4th quarter, while state and local government borrowing increased 4.2%.
  • Four out of three people have problems with fractions.
  • The US recently announced import tariffs on steel (25%) and aluminum (10%) – Canadian and Mexican imports are exempt.
  • US industrial market vacancy is at its lowest level in over a decade, and average rents for logistics warehouses continue to rise.
  • The SEC announced that cryptocurrency exchanges must register with the agency, which fueled further selloffs in all cryptocurrencies.
  • China’s Consumer Price Index (CPI) rose 2.9% year-over-year through February – the most since 2013.
  • The Dow Jones Industrial Average has a year-to-date total return of -1.96% (1 year +19.39%); the broader S&P 500 has a total return of -0.76% (1year +13.99%); and the tech-heavy NASDAQ has a total return of 2.59% (1 year +20.76%).
  • February saw $8.4 billion in net outflows from domestic passive fund strategies – the first net outflow since April 2015.
  • The S&P 500 gained or lost 1% in a single trading session 23 times in the first quarter, while it went for months at a time in 2016 and 2017 without a single one.
  • A recent survey of institutional investors by Commonfund found that 70% are concerned about the possibility for a 20% correction in the stock market over the next 24 months.
  • CIGNA has agreed to purchase the largest independent pharmacy benefits manager, Express Scripts Holding Co., for $54 billion.
  • Nissan and Renault are in talks to merge – the companies own large blocks of each other’s stocks and share a common chairman.
  • Wal-Mart has been in preliminary talks to acquire Humana.
  • The Department of Justice has rejected Singapore-based Broadcom’s takeover of US-based Qualcomm.
  • Foreign equity funds had $22.8 billion in net inflows in February.

 

Under Old Business:

 

  1. The four year funding plan was approved by the City of Oglesby.

The following bills were approved on a motion by Alan Hansen with second by Sgt. Robert Stone.  Vote taken, Tom Porter – Yes, Alan Hansen – Yes, Rudolph Gandolfi – Yes, Sgt. Stone – Yes and Chief Knoblauch – Yes.  All in favor, motion carries.

  1. Hometown National Bank – Quarterly fee for Quarter ending 03/31/2018 is $1,933.87 (annual fee 25 bps of the market value).
  2. Jay Baxter – Monthly Accounting assistance – $110.00

Under Application for Membership – None

Under Application for Benefits – None.

Under New Business – None

 

Other

 

  1. IPPAC meeting dates
    1. 2018 Annual Spring Conference – May 16th, 17th & 18th @ Jumers

There being no further business, the meeting was adjourned at 2:31 p.m. on motion by Tom Porter with second by Alan Hansen until the next regular meeting that is to be held on July 10, 2018 at 2:00 p.m.   A vote was taken.  All in favor.

________________________________        ________________________________

Alan Hansen, Secretary                           Chief James Knoblauch, President

Minutes: July 18, 2018

July 18, 2018

MINUTES OF MEETING

Meeting of the Board of Directors of the Oglesby Police Pension was held on Tuesday, July 17, 2018 at the Oglesby City Hall at 2:00 p.m.

Present:         Chief James Knoblauch              Sgt. Robert Stone

                        Tom Porter                                       Rudolph Gandolfi

Absent:          Alan Hansen

Also present at the meeting was and Peter Corgiat, VP – Trust Officer, Hometown National and Tammy L. Humpage, AVP – Trust Officer, Hometown National Bank.

A quorum being present, Chief Knoblauch called the meeting to order at 2:01 p.m.

On a motion by Tom Porter; second by Rudolph Gandolfi, the minutes of the meeting on April 10, 2018 were approved.  A vote was taken – All in favor; none opposed.

The balance in the money market account as of June 30, 2018 was $129,136.59.  This balance will cover five months of payroll.

The board had a meeting with Peter Corgiat from Hometown National Bank.  It was noted the period ending June 30, 2018, the portfolio was 4.2% cash, 33.3% equities, 51.3% fixed income and 11.2% in annuities.  The holdings are within the target ranges of the pension fund.  The pension fund can hold up to 35% in equities.

The portfolio, as a whole, has returned 4.77% for the period of September 1, 2016 through June 30, 2018, whereas the benchmark returned 3.71%.

The CD portfolio is laddered well; however there is $100,000 coming due in October.  Recommendations will be presented during the October meeting.

Peter Corgiat is working on surrendering The Standard Insurance Annuity Contract.  This contract is paying 1.65% and Hometown National believes they can reinvest the proceeds of approximately $126,000 into a Corporate CD maturing in 2021 with a rate of 2.85% or better.

Economic Analysis:

  • Boosted by corporate tax cuts, U.S. corporate earnings growth continues to improve and remain firm, where as international developed and emerging markets has declined somewhat.
  • The U.S. economy grew by an annualized 2% in the first quarter. S. unemployment was 3.8% in May.  Inflation increased by 2.3% compared to last year at this time.  This is the first time in 6 years that inflation has moved above the Federal Reserve’s preferred target rate of 2%.
  • The Fed in response raised the Fed funds rate for the seventh time in this economic cycle, which went from basically 0 to 2%.
  • As rates rise, so does the value of the U.S. dollar compared to foreign currencies. This will not help our exports as our goods and services are more expensive overseas.  Adding higher foreign tariffs on to the price of our goods will make them even more expensive.
  • The stock market has basically traded sideways for the first half of the year. The Dow Jones los 3/4th of a percent, the S&P gained 2.65% but small company stocks increased by 7.66%.  Small company stocks are less affected by global trends and foreign trade issues.
  • Barclays Aggregate Bond Index, one of the most widely used bond performance measurements, lost 1.62% year to date.
  • In summary, the markets are more challenging this year than the last two years. We believe that interest rates will likely edge up further.  Although, today one of the Fed members hinted at a possible pause on rates.
  • However, the Fed will be mindful not to invert the Yield Curve, (short rates higher than long rates), which has been a precursor to many prior recessions.
  • Most analysts don’t think we will have a recession until late next year of early 2020.
  • So for the rest of this year, mid to upper single digit returns on stocks, and bonds will most likely end up in a negative territory.
  • That’s why we have been buying CDs for fixed income – better rates and safety or principal.

 

Under Old Business:

 

  1. The four year funding plan was approved by the City of Oglesby, but is currently under review. Tammy Humpage will pull the actuarial valuation from the Department of Insurance once available.

The following bills were approved on a motion by Rudolph Gandolfi with second by Tom Porter.  Vote taken, Tom Porter – Yes, Rudolph Gandolfi – Yes, Sgt. Stone – Yes and Chief Knoblauch – Yes.  All in favor, motion carries.

  1. Hometown National Bank – Quarterly fee for Quarter ending 06/30/2018 is $1,925.26 (annual fee 25 bps of the market value).
  2. Jay Baxter – Monthly Accounting assistance. Annual Report – $290.00
  3. Arthur J. Gallagher Risk Management Services (Fiduciary Insurance) – $3,046.00

Under Application for Membership – None

Under Application for Benefits – None.

Under New Business – None

 

Other

 

  1. IPPAC meeting dates
    1. Hometown National Bank will host the IPPAC Annual Meeting August 23rd and August 24th at 9:00 a.m.

There being no further business, the meeting was adjourned at 2:38 p.m. on motion by Tom Porter with second by Sgt. Robert Stone until the next regular meeting that is to be held on October 9, 2018 at 2:00 p.m.   A vote was taken.  All in favor.

________________________________        ________________________________

Alan Hansen, Secretary                           Chief James Knoblauch, President

© Copyright 2018 All rights reserved City of Oglesby, IL

Designed and maintained by MCS Advertising