Meeting Minutes
January 24, 2006 April 24, 2006 August 4, 2006 November 2, 2006 January 31, 2007
Present at the meeting: Brian Sanford, Mayor; Doug Thompson, City Treasurer; Julie Lamberson, Finance Director; Kathy Barnhart, City Controller; Ken Leach and Harry Caldwell, Firemen.
Absent was Jeffrey Saintz, Councilman and Joseph Crotty, Fire Chief.
Also present at the meeting was Mark Mehlenbacher and Jim Wagner.
Minutes:
The minutes of the October 25, 2005 meeting were not discussed but will be approved at the next meeting.
Investment Report:
Jim Wagner said the fund had had a better than 10% return for the year that it was a good year. This was due to the emphasis on non-U.S. stocks. The outlook for 2006 may show some negative returns early in the year, but he expects overall 2006 to be positive. He also stated the fixed account had some accounts moved to treasury funds from mutual funds.
Financial Report:
The financial report for the period ending December 31, 2005 was presented and reviewed by Mark Mehlenbacher. There was a $73,361 profit for the year. This was due to a realized gain on the sale of investments. The fund balance at December 31, 2005 carried $2,269,002.61 as compared to $2,522,517.97 on December 31, 2004.
Julie Lamberson explained the following pension calculations:
Larry Moore did purchase military year to be vested for $536.28. The actuarial firm was very helpful with this calculation.
Sam Hopkins had to make a payment into the fund based on what he would have contributed as a full time versus part time.
Old Business:
Exit Interview with Auditors. There were several observations made by the auditors.
Vesting is inconsistent.
Adhoc memo from solicitor, he agrees are entitled to this.
Nate Kerr make sure getting contributions back. Waiting for letter.
Changing ordinance to make section Re: Full-time versus part-time clear.
Re-write of plan by actuarial firm. This would run between $2,000 and $3,500 for a one-time rewrite fee from Conrad Sigel. A lot of work would have to be done on our part.
H. Caldwell made the motion and K. Leach seconded that a recommendation be made to have the plan re-written. All were in favor.
New Business:
None.
Questions/Discussion:
Jim Wagner asked for the final MMO for 2006; he will call Julie to get the budgeted number.
Brian Sanford asked that identification be made on the statements as to the amount of State/City contributions.
Meeting adjourned at 9:00 a.m. with a motion by Ken Leach, a second by Julie Lamberson and all voting in favor.
Respectfully submitted,
Kathleen Barnhart
Controller
Present at the meeting: Brian Sanford, Mayor; Julie Lamberson, Finance Director; Kathy Barnhart, City Controller; Joe Crotty, Fire Chief and Harry Caldwell, Fireman.
Absent was Jeffrey Saintz, Councilman; Doug Thompson, City Treasurer; Ken Leach, Fireman.
Also present at the meeting was Mark Mehlenbacher and Jim Wagner.
Minutes:
A motion to approve the minutes of the October 25, 2005 and January 24, 2006 meetings was made by Julie Lamberson and seconded by Joe Crotty, all approved, no one opposed
.
Investment Report:
Jim Wagner said the earnings were up 6-1/2% in the first quarter on the equity side.
Financial Report:
The financial report for the period ending March 31, 2006 was presented and reviewed by Mark Mehlenbacher. The account value was up $77,000 and it had been a good first quarter. The balance of the account at 3/31/06 was 2,726,108.04 and at the end of 3/31/05 were 2,416,798.52.
A motion to approve the financial reports was made by Julie Lamberson, seconded by Joe Crotty, all approved, none opposed.
Old Business:
1. Julie Lamberson will try to schedule a meeting with the actuary to review the
actuarial report and discuss rewrite of plan. The actuary is preparing employee benefit statements.
New Business:
1. Barbara Rodgers requested death benefits. This was paid out at $1,000.00. Motion to approve this payment was made by Harry Caldwell, seconded by Joe Crotty, all approved, none opposed.
2. Clyde Dewey requested payout; no figure is available for this yet.
A motion to approve this based upon actuarial calculation was made by Joe Crotty, seconded by Harry Caldwell, all approved, none opposed.
Questions/Discussion:
Julie Lamberson presented the audit report and stated that it was pretty clean.
Meeting adjourned at 9:00 a.m. with a motion by Julie Lamberson, a second by Joe Crotty and all voting in favor.
Respectfully submitted,
Kathleen Barnhart
Controller
Present at the meeting: Brian Sanford, Mayor; Jeffrey Saintz, Councilman; Doug Thompson, City Treasurer; Julie Lamberson, Finance Director; Kathy Barnhart, City Controller; Joe Crotty, Fire Chief, Ken Leach, Fireman and Harry Caldwell, Fireman.
Also present at the meeting was Mark Mehlenbacher and Jim Wagner.
Minutes:
No minutes were presented.
.
Investment Report:
Jim Wagner stated it was discussed at the last meeting about reducing exposure on small caps and internationals and this has been done by moving into large cap and domestic and that everything looks good at this time.
A motion to approve the investment report was made by Ken Leach, seconded by Doug Thompson, all approved, none opposed.
Financial Report:
The financial report for the period ending June 30, 2006 was presented and reviewed by Mark Mehlenbacher. Sale of investments show a gain which actually was realized over a period of time, but is shown in this quarter.
A motion to approve the financial reports was made by Ken Leach, seconded by Doug Thompson, all approved, none opposed.
Old Business:
1. Plan re-write, actuarial reports see discussion/questions below.
New Business:
1. MMO will be calculated for September and reported to Council before the end of September.
Questions/Discussion:
Actuarial Report/Plan Re-write: There was discussion regarding the meeting with the actuary. Julie Lamberson stated she had a chart in the office that reflects what has happened to the pension and also discussed unfunded liability.
Ken Leach asked what is the maximum contribution allowed and was told 5.85%.
He also asked if the City wants the Pension Fund to pay to rewrite the plan ordinance? Harry Caldwell stated he felt it was the citys responsibility.
Jeff Saintz stated the actuary needs the language cleaned up in the plan and this
will happen when the plan is rewritten. He also asked about no enrollment forms being in place and was told that that was not in place. He stated this needs to be changed; this information needs to be in place. He also stated a decision needs to be made as to who will pay for the rewrite of the plan.
Following discussion, a motion was made by Jeff Saintz to go forward with the
rewrite of the plan subject to auditor approval that this is an appropriate expense for the plan to pay. The motion was seconded by Ken Leach. A voice vote was taken with the following result:
Doug Thompson, Julie Lamberson, Jeff Saints, Ken Leach, Kathy Barnhart yes.
Harry Caldwell no.
Julie Lamberson will call auditor to make sure the expense is appropriate.
Meeting adjourned at 9:00 a.m. with a motion by Julie Lamberson, a second by Harry Caldwell and all voting in favor.
Respectfully submitted,
Kathleen Barnhart
Controller
Present at the meeting: Brian Sanford, Mayor; Jeffrey Saintz, Councilman; Doug Thompson, City Treasurer; Julie Lamberson, Finance Director; Kathy Barnhart, City Controller; Joe Crotty, Fire Chief and Ken Leach, Fireman.
Absent was Harry Caldwell, Fireman.
Also present at the meeting was Mark Mehlenbacher and Jim Wagner. Keith Morrison attended as a guest.
Minutes:
A motion to approve the minutes of the April 26, 2006 meeting was made by Ken Leach and seconded by Joe Crotty, all approved, no one opposed
.
Investment Report:
Jim Wagner stated the third quarter was pretty good and that year-to-date returns was at 9.31%. He will probably put more into treasuries near the end of the year or early next year because the economy is slowing down.
A motion to approve the investment report was made by Ken Leach, seconded by Joe Crotty, all approved, none opposed.
Financial Report:
The financial report for the period ending September 30, 2006 was presented and reviewed by Mark Mehlenbacher. He stated the plan is doing the same as last year though it appears we are doing better. An advance of $20,000 on State Aid was received at the end of September and included as income.
The actuary was paid $2,100; payouts are $25,000 per month and that the state contribution was received. The balance in Northwest Savings is currently $95,000. He is checking on investing some of the money in a three month CD to earn interest and still be able to fund the pension obligations.
A motion to approve the financial reports was made by Ken Leach, seconded by Julie Lamberson, all approved, none opposed.
Old Business:
1. Mark Mehlenbacher presented that a draft of the Actuarial Report had
been received. It needs to be reviewed with John Vargo of Conrad Siegel
for clarification. Julie will follow up with Mary Ann Nau and Rich Winkler and will keep the firemen advised of status.
New Business:
1. The question was raised by a pensioner (Hartle) if COLA would happen. After discussion it was stated there is nothing to permit or require a COLA.
2. Jim Wagner asked permission to make a couple of minor changes in the investment policy presented at t next meeting.
1. Growth and income philosophy. 10% minimum on the equity side.
2. Change clearing firm; needs permission to make that change.
A motion to approve the change in clearing firms was made by Joe Crotty, seconded by Ken Leach, all approved, none opposed.
3. Julie Lamberson said the new actuarial report would be as of January 1, 2007;
it is due by March 31, 2007.
Meeting adjourned at 9:40 a.m. with a motion by Doug Thompson, a second by Julie Lamberson and all voting in favor.
Respectfully submitted,
Kathleen Barnhart
Controller
Present at the meeting: Jeffrey Saintz, Councilman; Doug Thompson, City Treasurer; Julie Lamberson, Finance Director; Kathy Barnhart, City Controller; Joe Crotty, Fire Chief and Ken Leach, Fireman, Harry Caldwell, Fireman
Absent was Mayor Brian Sanford.
Also present at the meeting was Mark Mehlenbacher and Jim Wagner. Keith Morrison attended as a guest.
It was suggested the next meeting be held at City Hall.
Minutes:
A motion to approve the minutes of the August 4, 2006 and November 2, 2006 meetings was made by Ken Leach and seconded by Julie Lamberson, all approved, no one opposed
.
Investment Report:
Jim Wagner introduced Rob Nicotra who will be working with J. Wagner on the account.
Wagner reported the year-to-date returns were at 16.3% due to the mix. For six out of seven years the account has beaten the market and the early contribution from the City helps to build the funds up
Wagner stated the fixed account has been realigned, that it has gone conservative with treasuries. He further stated the market has had a good run and is overdue for correction. He asked the Board if they want to be as aggressive on the equity side or pull back? He recommended moving 50% of the stock position into something more conservative until a correction in the market occurs.
A motion to approve the investment report was made by J. Crotty, seconded by K. Leach, all approved, none opposed.
Financial Report:
The financial report for the period ending December 31, 2006 was presented and reviewed by Mark Mehlenbacher. He stated 2006 was a good year and presented comparisons from 2001 through 2004.
M. Mehlenbacher also stated the market value was up from 2.6m to 3.0m.
A transaction report was submitted and he had opened a money market account.
The 2007 MMO of $184,115 was received from the City and approximately $25,000 will be used per month for pay outs.
A motion to approve the financial reports was made by Ken Leach, seconded by H. Caldwell, all approved, none opposed.
Old Business:
1. J. Lamberson reported the Actuarial Report is due in March for 1/1/07 valuation and should have available for the next meeting.
New Business:
J. Saintz had comments which are:
a. Not directed toward negotiations
b. Trying to create awareness on how to perceive the current situation.
c. Last year was difficult for the City and Council. It has been anticipated the
RDM Study will help the City avoid distressed status.
d. Council appreciates the efforts of the firemen.
e. Presented General Municipal Pension Plan Data (copy attached).
K. Leach stated it was a concern of the Department
J. Crotty commented the calculation for minutemen make the actuarial calculations difficult.
K. Leached asked when the MMO calculations will be complete and J. Lamberson answered they would be complete after the negotiations are completed and the period of 1/1/07 to 12/31/09 will be covered by the new MMO calculations.
J. Saintz commented he would make copies of the ordinances available, that it needs to be in compliance with the activities. Decisions need to be made with actuarial input.
J. Wagner asked what is not in line with the ordinance in regard to investments and where should decisions be made regarding aggressiveness of investments?
2. M. Mehlenbacher stated the Pension Administrator and Board Secretary needs to be approved.
3. J. Saintz suggested getting together in one month at City Hall.
Meeting adjourned at 9:25 a.m. with a motion by J. Lamberson, a second by K. Barnhart and all voting in favor.
Respectfully submitted,
Kathleen Barnhart
Controller