2017-07-11 - Police Pension Board - Minutes MINUTES OF A REGULAR MEETING OF THE BUFFALO GROVE POLICE
PENSION FUND BOARD OF TRUSTEES
TUESDAY,JULY 11, 2017
A regular meeting of the Board of Trustees of the Buffalo Grove Police Pension Fund was held
on Tuesday, July 11, 2017 at 6:30 pm at the Buffalo Grove Police Department located at 46
Raupp Boulevard, Buffalo Grove, IL 60089 for the purpose of conducting regular business.
CALL TO ORDER: The meeting was called to order by President Eisenmenger at 6:26 pm.
ROLL CALL:
PRESENT: Trustees Scott Eisenmenger, Art Voigt, Tony Montiel, Kenneth Fox and
Jeff Feld
ABSENT: None
ALSO PRESENT: Brian LaBardi, Reimer, Dobrovolny&Karlson; Dave Wall, Wall &
Associates; Scott Anderson, Village of Buffalo Grove Finance Director;
Steve Earnhardt and Robina Amato, Lauterbach& Amen, LLP (L&A)
PUBLIC COMMENT: There was no public comment.
APPROVAL OF MEETING MINUTES:April 11, 2017 Regular Meeting Minutes: The Board
reviewed the minutes from the April 11, 2017 regular meeting. A motion was made by Trustee
Eisenmenger and seconded by Trustee Voigt to approve the April 11, 2017 regular meeting
minutes as written. Motion carried by roll call vote.
AYES: Trustees Eisenmenger, Voigt, Montiel, Fox and Feld
NAYS: None
ABSENT: None
Semi-Annual Review of Closed Session Meeting Minutes: There were no closed session meeting
minutes for review.
TREASURER'S REPORT: Mr. Anderson informed the Board that the 2016 audit is complete.
No action is needed at this time.
ACCOUNTANT'S REPORT— LAUTERBACH & AMEN, LLP: Monthly Financial Report:
The Board reviewed the Monthly Financial Report for the six-month period ending June 30, 2017
prepared by L&A. As of June 30, 2017, the net position held in trust for pension benefits is
$63,063,939.08 with a change in position of $3,536,169.37. The Board also reviewed the Cash
Analysis Report, Revenue Report, Expense Report, Member Contribution Report and Payroll
Journal.
Presentation and Approval of Bills: The Board reviewed the Vendor Checks Report for the period
April 1, 2017 through June 30, 2017 for total disbursements of$237,954.63. A motion was made
by Trustee Eisenmenger and seconded by Trustee Montiel to approve the Vendor Checks Report
showing total disbursements of$237,954.63. Motion carried unanimously by voice vote.
INVESTMENT REPORT—WALL &ASSOCIATES: Quarterly Investment Report: Mr. Wall
presented the Performance Summary for the period ending June 30, 2017. As of June 30, 2017,
the ending market value net of fees is $63,100,680.47 for a time weighted return of 2.41%. The
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current asset allocation is as follows: 3.08% Cash; 57.79% US Stock; 3.30% Non-US Stock;
35.61% Bonds; and 0.22% Other Investments. Mr. Wall reviewed the Fixed Annuities,
Government Fixed Income, Domestic Equity, International and Real Estate portfolios with the
Board.
The Board directed Mr. Wall to rebalance the cash paid directly from the ETFs in the Smart Beta
Factor equally amongst all other holdings in the portfolio. A motion was made by Trustee Feld
and seconded by Trustee Fox to rebalance the portfolio as stated. Motion carried unanimously by
voice vote.
The Board also noted they would like to make a standing motion for Mr. Wall to regularly
rebalance the Smart Beta Factor portfolio on a semi-annual basis as previously stated. Further
discussion will be held at the next regularly scheduled meeting.
Review/Update Investment Policy: The Board discussed amending the benchmark for the Small
Cap Portfolio from the Russell 2000 to the S&P 600. Mr. Wall will amend the Investment Policy,
obtain signatures from the Board and file with the Illinois Department of Insurance within 30 days.
The Investment Policy will reflect an updated effective date of July 2017. A motion was made by
Trustee Fox and seconded by Trustee Eisenmenger to amend the Investment Policy as discussed.
Motion carried unanimously by voice vote.
The Board directed Mr. Wall to sell 100% of the Vanguard Small Cap ETF (VB) and utilize the
sale proceeds to purchase the S&P 600 Small Cap (SLY). A motion was made by Feld and
seconded by Trustee Fox to sell the Vanguard Small Cap ETF and purchase the S&P 600 Small
Cap as discussed. Motion carried unanimously by voice vote.
Discussion/Possible Action Regarding Commodities Portfolio: No action was taken at this time.
APPLICATIONS FOR MEMBERSHIP/WITHDRAWALS FROM THE FUND:Application
for Membership—Samuel Savage: The Board reviewed the Application for Membership submitted
by Samuel Savage. A motion was made by Trustee Eisenmenger and seconded by Trustee Montiel
to accept Samuel Savage into the Buffalo Grove Police Pension Fund, effective 04/17/17, as a Tier
II participant. Motion carried unanimously by voice vote.
APPLICATIONS FOR RETIREMENT/DISABILITY BENEFITS APPLICATIONS:
Review/Approve Written Decision and Order/Certificate of Payment for Regular Retirement
Benefits—James A. Harris: The Board was presented with the Written Decision and Order and
Certificate of Payment for Regular Retirement Benefits for James A. Harris. A motion was made
by Trustee Eisenmenger and seconded by Trustee Voigt to accept the Written Decision and
Order and Certificate of Payment as presented. Motion carried by roll call vote.
AYES: Trustees Eisenmenger, Voigt, Montiel, Fox and Feld
NAYS: None
ABSENT: None
OLD BUSINESS: Portability Update— Chadd Kaiser: The Board noted that Chadd Kaiser's
application to transfer service from the Schiller Park Police Pension Fund to the Buffalo Grove
Police Pension Fund has been received and the Board is awaiting authorization from the Schiller
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Park Police Pension Fund to transfer the required $111,336.44 to the Buffalo Grove Police
Pension Fund. Further discussion will be held at the next regularly scheduled meeting.
Appointed Member Term Expiration—Jeff Feld: The Board noted that Trustee Feld's appointed
term expired April 30, 2017. Trustee Feld was reappointed to the Buffalo Grove Police Pension
Board of Trustees by the Village of Buffalo Grove Village President for a two-year term
effective May 1, 2017. A motion was made by Trustee Eisenmenger and seconded by Trustee
Fox to certify Trustee Feld's reappointment. Motion carried unanimously by voice vote.
NEW BUSINESS: Board Officer Elections—President, Vice President, Secretary and Assistant
Secretary: The Board discussed Board Officer Elections and nominated the following slate of
Officers: Scott Eisenmenger as President; Art Voigt as Vice President; Tony Montiel as
Secretary; and Jeff Feld as Assistant Secretary. A motion was made by Trustee Eisenmenger and
seconded by Trustee Voigt to elect the slate of Officers as stated. Motion carried unanimously by
voice vote.
FOIA Officer & OMA Designee: The Board discussed maintaining Village Treasurer Scott
Anderson as the FOIA Officer and Trustee Montiel as the OMA Designee. A motion was made
by Trustee Eisenmenger and seconded by Trustee Feld to maintain Scott Anderson as the FOIA
Officer and Trustee Montiel as the OMA Designee. Motion carried unanimously by voice vote.
Review/Approve—Actuarial Valuation/Tax Levy Request: The Board reviewed the finalized
Actuarial Valuation as prepared by L&A. Based on data and assumptions, the recommended
contribution amount is $2,673,256.00 which is a $135,073.00 increase from the prior year
contribution. The statutory minimum contribution requirement is $2,223,057.00. A motion was
made by Trustee Eisenmenger and seconded by Trustee Montiel to accept the Actuarial
Valuation as prepared and request a tax levy in the amount of$2,673,256.00 from the Village of
Buffalo Grove, based on the recommendation of L&A. Motion carried by roll call vote.
AYES: Trustees Eisenmenger, Voigt, Montiel, Fox and Feld
NAYS: None
ABSENT: None
Review/Approve—Municipal Compliance Report: The Board reviewed the Municipal Compliance
Report prepared by L&A. A motion was made by Trustee Eisenmenger and seconded by Trustee
Montiel to adopt the Municipal Compliance Report as prepared by L&A. Motion carried
unanimously by voice vote.
JDOI Annual Statement: The Board noted that the IDOI Annual Statement has been completed
and submitted to the IDOI, along with the executed Certification Form, prior to the June 30,
2017 deadline.
TRUSTEE TRAINING UPDATES: The Board reviewed the Trustee Training Summary and
discussed upcoming training opportunities. The Board was reminded to submit all training
certificates to L&A for record keeping.
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COMMUNICATION AND REPORTS: Affidavits of Continued Eligibility: The Board noted
that L&A mailed Affidavits of Continued Eligibility to all pensioners with the June payroll cycle
and a due date of July 31st. Status updates will be provided to the Board as they become available.
Active Member File Maintenance: The Board noted that L&A has prepared annual Active
Member File Maintenance letters as of March 2017 this year and no further action was needed at
this time.
ATTORNEY'S REPORT: Legal Update: Mr. LaBardi presented the Legal and Legislative
Update to the Board and answered all questions.
CLOSED SESSION: There was no closed session needed at this time.
ADJOURNMENT: A motion was made by Trustee Eisenmenger and seconded by Trustee Feld
to adjourn the meeting at 7:44 pm. Motion carried unanimously by voice vote.
The next regular meeting of the Buffalo Grove Police Pension Fund will be held on Tuesday,
October 10, 2017 at 6:30 pm.
Respectfully submitted,
Tony Montiel, Board Secretary
Minutes prepared by Robina Amato, Pension Services Administrator, Lauterbach &Amen
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