Carbondale Reporter

The city of Carbondale Firefighters Pension Board met July 19 to approve payroll expenses.

Here are the meeting's minutes, as provided by the board:

CITY OF CARBONDALE

FIRE FIGHTER’S PENSION BOARD

MEETING MINUTES

9:00 A.M., JULY 19, 2016

FIRE STATION 2

Ted Lomax called the meeting to order at 9:00 a.m. with the following members of the Board

present/absent:

PRESENT: Ted Lomax, President; Mike Hertz, Secretary; Harry Threlkeld, Fire Fighter Retiree

Representative; Becky Applegate

ABSENT: Deborah McCoy

GUESTS: Patrick Donnelly, Graystone Consulting

Also present was Fire Department Administrative Secretary/Recorder Kathy Haldeman

Patrick Donnelly of Graystone Consulting presented the Investment Review for period ending

June 30, 2016. Mr. Donnelly recommended the Board approve a limit order strategy to allow

Graystone Consulting to enter Good Till Cancelled orders in between quarterly meetings. Mr.

Donnelly also discussed the local bank investment policy language for the Pension Fund’s

Investment Policy. Board members will review the recommended language changes and the

Investment Policy will be brought back to the October meeting for review and/or approval.

Meeting recessed at 10:17 a.m.

Patrick Donnelly exited the meeting.

Meeting reconvened at 10:30 a.m.

MINUTES OF PREVIOUS MEETING

Motion made by Mike Hertz to approve minutes of the April 19, 2016 meeting. Motion seconded

by Harry Threlkeld. VOICE VOTE: AYES: Ted Lomax, Mike Hertz, Harry Threlkeld, and Becky

Applegate. NAYS: None. Motion declared carried.

TREASURER'S REPORT

Becky Applegate presented the Treasurer’s Report and Market Value Comparison for the end of

Fiscal Year 2016 ending April 30, 2016 as well as quarterly period ending June 30, 2016.

Investments showed a decrease of $134,810 since March’s statement. Motion made by Mike Hertz

to accept the Treasurer’s Report as presented and approve expenses totaling $424,801.38, of which

$409,592.07 was payroll. Motion seconded by Harry Threlkeld. VOICE VOTE: AYES: Ted Lomax,

Mike Hertz, Harry Threlkeld, and Becky Applegate. NAYS: None. Motion declared carried. See

attached Expense Report for details. Ms. Applegate stated that the City Auditors have received

pension records. Once the audit is complete, she will forward the records to IDOI as well as Art

Tepfer of Tepfer Actuary.

UNFINISHED BUSINESS

None

NEW BUSINESS

Mike Hertz presented an Application for Pension Benefits from former Firefighter Chad Hicks.

Mr. Hicks resigned his position effective June 5, 2016 after nine years, eight months, and

twenty-five days of service. Mr. Hicks had contributed $43,900.88 to the pension fund and is

requesting payout of his contributions. Once a mandatory state tax of twenty percent is applied, his

payout is $35,120. Motion made by Harry Threlkeld to accept the Application for Pension Benefits

from former Firefighter Chad Hicks and make payment to Mr. Hicks in the amount of $35,120.

Motion seconded by Mike Hertz. ROLL CALL VOTE: Ted Lomax – AYE, Mike Hertz – AYE, Harry

Threlkeld – AYE, Becky Applegate – AYE. AYES: Four; NAYS: None. Motion declared carried.

Mike Hertz presented an Application for Pension Membership for Probationary Firefighter Travis

Young who began his employment on July 5, 2016. Motion made by Ted Lomax to accept an

Application for Pension Membership for Probationary Firefighter Travis Young. Motion seconded

by Harry Threlkeld. VOICE VOTE: AYES: Ted Lomax, Mike Hertz, Harry Threlkeld, and Becky

Applegate. NAYS: None. Motion declared carried.

Mike Hertz presented an invoice from IDOI for their annual compliance fee. Motion made by

Mike Hertz to pay IDOI in the amount of $2,695.45 for their annual compliance fee. Seconded by

Harry Threlkeld. ROLL CALL VOTE: Ted Lomax – AYE, Mike Hertz – AYE, Harry Threlkeld –

AYE, Becky Applegate – AYE. AYES: Four; NAYS: None. Motion declared carried.

Becky Applegate stated that once the contribution payout was made to Chad Hicks the Bank of

Carbondale cash account would have a very small balance. Motion made by Mike Hertz to

approve $20,000 of investment monies be transferred to the Firefighters Pension Account at the

Bank of Carbondale. Motion seconded by Harry Threlkeld. ROLL CALL VOTE: Ted Lomax – AYE,

Mike Hertz – AYE, Harry Threlkeld – AYE, Becky Applegate – AYE. AYES: Four; NAYS: None.

Motion declared carried.

The Board discussed the limit order strategy presented by Patrick Donnelly of Graystone

Consulting. This strategy will be reviewed at each quarterly meeting and their will not be any

charges incurred to the Pension Fund to try this strategy. Motion made by Mike Hertz to enter

orders as Good Till Cancelled in five separate orders of 10%, 15%, 20%, 25%, and 30% up to

$375,000 into the S&P 500. Motion made by Harry Threlkeld. ROLL CALL VOTE: Ted Lomax –

AYE, Mike Hertz – AYE, Harry Threlkeld – AYE, Becky Applegate – AYE. AYES: Four; NAYS:

None. Motion declared carried.

The 2016 AFFI Conference is scheduled for October 12 – 13, 2016 in Lisle. IL. All Board

members will let Kathy know whether or not they are able to attend.

ANNOUNCEMENTS AND ADJOURNMENT

Motion made by Mike Hertz to adjourn at 10:50 a.m. Motion seconded by Harry Threlkeld. VOICE

VOTE: AYES: Ted Lomax, Mike Hertz, Harry Threlkeld, and Becky Applegate. NAYS: None.

Motion declared carried.

The next meeting is scheduled for October 18, 2016 at 9:00 a.m.

Mike Hertz, Secretary