Meeting Minutes
May 4, 2006 July 27, 2006 October 26, 2006 January 25, 2007 April 07 (PDF file)
Present: Mayor Brian Sanford, City Manager Mary’ Ann Nau, Treasurer Doug Thompson, Officers David Pondel and Gary Thomas, and Controller Kathleen Bamhart
Absent: Councilman Jeff Saintz
Also Present: Jim Wagner, Jim Nystrom
The meeting was called to order at 8:04 AM.
Approval of Minutes
A motion to approve the minutes of January 26, 2006 was made by D. Pondel and seconded by G. Thomas with a correction to date of minutes.. Motion passed with all in favor, no one opposed.
Investment Review
Jim Wagner reviewed the investment report with the Board. He stated that the account was up 7.6% for the first quarter and up 12% thru May 3, 2006. Continued over- weighting in international stocks is a contributing factor. He is considering backing off from this over-weighting and will start backing off throughout the remainder of the year on the international side.
Financial Statements
Jim Nystrom presented the financial statements for 2005 to the Board. All of the year- end statements are in now. He reminded the Board that his report is on a cash basis and not cost basis like the investment side. He stated gains realized on sales contributed toward excess revenue along with interest/dividends earned.
He also presented the financial statements for the first quarter 2006. Significant increase in the cash account is due to the U.S. Treasury Bill. $1.6 million was cashed in and moved into the money market account. Other expenses include foreign taxes. Accounting and administration includes payment to the actuary.
Jim Wagner had several comments regarding the financial statements. First, that the money from the City and the State was not invested, but placed into short-term at Northwest Savings. Secondly, the Krupp investment was a good investment.
A motion was made by D. Pondel and seconded by G. Thomas to accept the reports as given. Motion passed with all in favor — no one opposed.
Old Business
a. State Auditor Findings.
A copy is included in the packet. Adhoc finding has been corrected.
b. Chief Owens’ Retirement:
No meeting has been held between the City and Police as yet.
c. Payments of back pension were paid.
New Business
a. Claude Lemley’s request for a refund - He was paid by the City with pension contribution deductions. Consequently this became a workmen’s compensation issue, so is asking for repayment of pension contributions. Clarification of workmen’s comp dates are needed. Approval was given contingent upon 12/23/05 date.
Motion to authorize J. Nystrom to go ahead with payment after clarification of
$16.61 amount to be included in $434.81 total payment was made by G.
Thomas and seconded by D. Thompson. Motion passed with all in favor — no
one opposed.
b. The actuary has requested all social security numbers to be clarified for both retirees and spouses.
Communication
The amount of $34,000 will be required monthly from May to October to cover pension payments.
Correspondence was received from the actuary. J. Nystrom commented that the actuary is doing a good job. B. Sanford stated this was nice change.
The actuary has been requested to make a presentation of the actuarial report to both Boards. No date has been set yet.
Motion to adjourn was made by G. Thomas and seconded by D. Pondel. Motion passed all in favor, no one opposed. The meeting was adjourned at 8:40 am.
Next meeting is July 27, 2006. Respectfully submitted, Kathleen K. Barnhart, Recording Secretary
Present: Mayor Brian Sanford, Councilman Jeff Saintz, City Manager Mary Ann Nau, Treasurer Doug Thompson, Office Gary Thomas, and Controller Kathleen Barnhart
Absent: Officer D. Pondel and Officer C. Lemley
Also Present: Jim Wagner, Jim Nystrom
The meeting was called to order at 8:04 AM.
Investment Review
Jim Wagner reviewed the investment report with the Board. He stated that the account was up 5% with the exception of the international fund. He is continuing to reduce exposure to the international market from over-weighting that we have had over the last few years. The funds did well on the fixed side and have seen decent percentage rates. Three quarters of a million are locked in on treasuries for ten years and will yield 5%. He stated the economy is continuing to go well and that he expects a positive return for the year.
Transaction actions are in the packet for mutual funds. The equity account is within $1,500 of value at end of June.
Financial Statements
Jim Nystrom presented the financial statements for the second quarter of 2006. He reminded the Board that his report is on a cash basis and not cost basis like the investment side. He stated that expenses exceeded revenue by $129,539 for the period. Capital gains will not be reported until year-end.
A motion was made by G. Thomas and seconded by D. Thompson to accept the reports as given. Motion passed with all in favor – no one opposed.
Old Business
a. Chief Owens’ Retirement regarding longevity pay is being paid based upon interpretation of the City Solicitor and the plan actuary. Don Owens does not feel this has been resolved.
It was recommended that police liaison (D. Pondel) discuss with city to attempt to determine if any changes need to be made.
b. Refund to Officer Lemley: Input had been received from the City Solicitor and this was paid.
c. Info on retired officers was needed for the actuary. Name, social security numbers, date-of-birth for spouses. J. Nystrom stated once all information was received, he will forward to the actuary.
d. Military buy back need to be updated for the pension enrollment process. J. Nystrom will let M. Nau know what is required (ie: service time, etc.) . M. Nau will request information from the Police Dept. requesting info from personnel files.
A question was raised as to where the personnel files are maintained. Permanent records are at City Hall.
New Business
a. An invoice in the amount of $1,820.00 was received from Conrad Sigel for actuarial services (employee statements, etc.).
Motion to approve payment was made by D. Thompson and seconded by G. Thomas. All approve – none opposed.
b. The meeting with the Actuary was reported by J. Nystrom. Investments and pension benefits being paid impact the MMO. Benefits being paid have greater impact on MMO than investments.
Communication
Request for transfer of funds in the amount of $34,000 per month to cover pension costs as needed was made by J. Nystrom.
Motion to adjourn was made by G. Thomas and seconded by D. Thompson. Motion passed all in favor, no one opposed.
Next meeting is October 26, 2006.
Respectfully submitted,
Kathleen K. Barnhart, Recording Secretary
Present: Councilman Jeff Saintz, City Manager Mary Ann Nau, Officer Claude Lemley, Officer Dave Pondel and Controller Kathleen Barnhart
Absent: Mayor Brian Sanford, Treasurer Doug Thompson, Office Gary Thomas
Also Present: Jim Wagner, Jim Nystrom
The meeting was called to order at 8:04 AM.
Approval of Minutes
A motion to approve the minutes of May 4, 2006 was made by D. Pondel and seconded by K. Barnhart. Motion passed with all in favor, no one opposed. A motion to approve the minutes of July 27, 2006 as corrected was made by J. Saintz and seconded by D. Pondel. Motion passed with all in favor, no one opposed.
Investment Review
Jim Wagner reviewed the investment report with the Board. He is continuing to reduce exposure to the international market and will continue to bring funds back to the USA. For the first time in a number of years, he is recommending a change in the investment policy in January. He is suggesting a revision that we add to the policy at least 105 to international stock. Currently the policy is 0-35%. Current investments are at 20% international. A significant portion of the pay out will be provided by the ration over the next couple of years according to the actuary. The investments picture today is world-wide and we need to have investments in international. On the fixed side there has been quite a bit invested on the stock side and will look into some yield on treasuries instead.
Financial Statements
Jim Nystrom presented the financial statements for the third quarter of 2006. He reminded the Board that his report is on a cash basis and not cost basis like the investment side. He stated the equity position is decreasing in the 3rd quarter and that government monies have gone up substantially. He also stated contributions are down from last year due to reductions in payroll and that dividend income is up. Capital gains will be reflected in the 4th quarter. He reported that $100,000 is being paid out per quarter and that payment had been made to the actuary. It was discussed that direct deposit fees are a minor expense.
Jim Nystrom also reported the revenues show a shortfall of approximately $225,000, that expenses are up and there should be some correction in the 4th quarter.
A motion was made by C. Lemley and seconded by D. Pondel to accept the reports as given. Motion passed with all in favor – no one opposed.
Old Business
a. A discussion regarding Chief Owens’ longevity pay was held. D. Pondel met with the finance director and feels the longevity calculation was accurate and no further action is required. The decision of the City Solicitor and Actuary was followed.
b. Regarding the military buy back, it was stated that DD214s will be placed in personnel files to determine military time. This will be placed on the agenda for January 2007 meeting to confirm this has been addressed. M. Nau will follow up.
c. Information on retired officers has been completed except for one person; this will be addressed. The name, social security number and date of birth for spouses are required.
Any changes in marital status or spousal information should be provided to the city on a timely basis.
New Business
a. Officer resigned is going to the State Police Academy and is requesting pay back of pension contributions.
Motion to approve payment was made by C. Lemley and seconded by D. Pondel. All approved, no one opposed.
b. A preliminary figure of $240,000 for 2007 MMO has been requested from the City.
c. Jim Wagner stated that he may be changing the clearing firm which the orders are processed through.
A motion to approve doing so of changes are made was made by C. Lemley and seconded by D. Pondel. All approved, no one opposed.
Communication
J. Nystrom provided copies of all transaction activities of the account.
Motion to adjourn was made by C. Lemley and seconded by D. Pondel. Motion passed all in favor, no one opposed.
Next meeting is January 25, 2007, 8:00 am and will be held at City Hall.
Respectfully submitted,
Kathleen K. Barnhart,
Recording Secretary
Present: Mayor Brian Sanford, Councilman Jeff Saintz, Treasurer Doug Thompson, Officer Gary Thomas, Officer Dave Pondel and Controller Kathleen Barnhart
Absent: City Manager Mary Ann Nau, Office Claude Lemley
Also Present: Jim Wagner, Jim Nystrom
Guests: K. Morrison and R. Nicotra
The meeting was called to order at 8:04 AM.
Approval of Minutes
No minutes presented for approval.
Investment Review
Jim Wagner reviewed the investment report with the Board. Wagner stated the fixed account had a very good year in 2006. Monies have been moved out of equities into treasuries recently.
Wagner asked if the Board wanted to continue being aggressive with equities or play it safer? After four years in a row of positive returns in the accounts, he feels the market will be changing. Wagner recommended taking 50% out and locking into treasuries.
Financial Statements
Jim Nystrom presented the financial statements for the fourth quarter of 2006. He reminded the Board that his report is on a cash basis and not cost basis like the investment side. He stated a $360,000 cash position at end of year. The MMO October payment was placed in a money market account at Northwest Savings. The required amount to cover pension payments if approximately $35,000 per month.
The 2007 MMO payment of $241,000 was received and will be kept at Northwest Savings to use for monthly draw downs instead of requesting money from investment accounts.
The final year end report for 2006 will be presented in April.
A motion was made by D. Pondel and seconded by G. Thomas to accept the reports as given. Motion passed with all in favor – no one opposed.
Old Business
a. Military buy back schedule requesting Forms DD214 was received from M. Nau and is being processed. (There are 4 eligible people.)
b. The transfer of assets has taken place from Royal Alliance to First Commonwealth.
New Business
a. The final 2007 MMO is $241,558 and has been received in January 2007.
b. Concerns at Council Meetings were brought up by J. Saintz:
1. Pension Plan data was presented (a copy is attached).
2. Suggested having a special meeting following a Council Meeting to
bring this to a front burner.
3. Wanted to make all aware of situation and what needs to be addressed.
4. B. Sanford suggested a special meeting to address J. Wagner’s recommendation and other concerns.
Nystrom suggested including the Actuary in the process to address what we can do to turn this pension situation around.
After considerable discussion, J. Saintz asked all to help determine what needs to be done. He stated we all need to begin to look at the situation and come up with meaningful suggestions to manage the problems.
c. J. Wagner reiterated earlier discussion for J. Saintz; looking for direction from the board to move 50% of funds into treasuries.
A motion was made by D. Pondel, seconded by G. Thomas. All approved, no one opposed.
Communication
J. Nystrom provided copies of all transaction activities of the account.
Motion to adjourn was made by D. Pondel and seconded by D. Saintz. Motion passed all in favor, no one opposed.
Respectfully submitted,
Kathleen K. Barnhart,
Recording Secretary