City of Galesburg Fire Pension Fund Board of Trustees met Aug. 1.
Here are the minutes provided by the board:
Call to order by President John Seitz at 10:34 a.m.
Present: Kelli Bennewitz, John Cratty, Matt Lewis, and John Seitz. Others Present: Alex Courtney.
Alex Courtney, Courtney & Aldrich, LLC, presented a DRAFT financial statement for the fund ending June 30, 2022. He noted that he did not have the Fire Pension Fund June 2022 FPIF investment activity in time for the board meeting. For this reason, he recorded the April and May 2022 investment activity only. Once the FPIF statement is available, he will record the June 2022 activity and send out finalized statements.
Total assets are $25,872,722 and total liabilities are $292,232. The net position-restricted pension benefits is $25,580,491. He also provided a transaction report for the period April - June 2022.
Courtney also distributed a Statement of Results for April 2022 from IFPIF showing an adjustment of -$5,986.05. This is due to a correction of Realized Loss originally booked in January but misallocated between the IFPIF member funds on the original January statement. The adjustment corrects this misallocation so that the Ending Net Asset Value for our fund on the April statement is correct.
Discussion was held on getting guidance and direction on investment allocations. It was noted that the IFPIF Board has the fiduciary responsibility to provide guidance as the custodian of our investments.
Both Bennewitz and Courtney reported that the F&M bank account currently has approximately $3.5 million. One of the reasons for so much cash in the account is that the left over cash from the US Bank investment accounts was transferred to F&M and because IFPIF didn’t include the cash in the transferable assets; that left over cash totaled about $1.59 million.
Bennewitz did set up an auto transfer from the IFPIF that began in July. Since this transfer has happened, they are requesting that a substantial amount of cash be transferred to IFPIF, specifically anything in excess of $1 million. The $1 million in the F&M account would give the Fund just over 3 months cash. Courtney noted that with the auto transfer from IFPIF occurring, then when the next batch of property tax money comes in, we can repeat the process and send IFPIF everything in excess of $1 million.
President Seitz suggested that a rule be added to the Rules & Regulations to transfer any amount over $1 million in the Fund’s local bank account to IFPIF on a quarterly basis.
New Business
John Cratty moved, seconded by Matt Lewis, to approve a Resolution recommending to the City Council a tax levy of $3,261,480. The motion carried.
Secretary Bennewitz noted an amendment to the May 2nd meeting minutes to reflect John Seitz as the president. John Cratty moved, seconded by Matt Lewis, to approve the May 2, 2022, meeting minutes as amended. The motion carried.
President Seitz stated that the approval of Firefighter Haley Stevenson into the Fund will be on the next agenda.
Bennewitz also reported that an amended Rules & Regulations document will be brought back at the next meeting for approval. This will include the removal of the section on the Investment Policy and the addition of a quarterly fund transfer rule. It also removes the option for the Fund to directly pay insurance premiums by making a monthly deduction from annuitants pension. Those that have elected to have this done at this point can continue.
Upcoming training events include the IPPFA Pension Conference in October 2022 and May 2023. Online options are also available.
Public Comment – None.
There being no further business, the meeting adjourned at 11:45 a.m.
https://cms7files.revize.com/galesburg/Document_Center/Agendas%20and%20Minutes/Fire%20Pension/2022/08-01-22%20Meeting%20Minutes.pdf
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