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

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

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