Meeting began at 12:05 p.m. with the following Board members present: Cathy Van Velzen, Roger Liesch, Stewart Moon and Jim Davis. Also present were Attorney Lee Dehner and Investment Monitor Jack Evatt.
CHANGES TO AGENDA: None.
MINUTES: Roger Liesch motioned to approve the minutes of the 4/28/11 quarterly meeting seconded by Stewart Moon; motion carried.
COMMUNICATIONS: As presented on amended agenda. One letter was from Foster & Foster presenting a revised fee schedule due to new legislative requirements. Roger Liesch motioned to approve the new fees and direct Lee Dehner to draft an amendment to our contract with Foster & Foster; seconded by Stewart Moon; motion carried. The Board asked Attorney Lee Dehner if we need to change our assumption from 8% to 7.75% as referenced in this letter? He said that is only for disclosure purposes; Jack Evatt recommended keeping the 8% assumption.
FINANCIALS: As presented on amended agenda. Stewart Moon motioned to ratify the bills as presented; seconded by Roger Liesch; motion carried.
INVESTMENT MONITOR’S REPORT: Jack Evatt of Bogdahn Consulting gave the report for the quarter stating that the fund is up 1.51% for the quarter and .50% ahead of policy. The fund balance as of 6/30/11 is $5,735,622. He will send the final report for the quarter after all end-of-quarter data is in.
Mr. Evatt also proposed that we consider investing more in the global market and add a non-core global fixed income fund. Salem Trust will charge $500 a year to do that. This type of fund is less susceptible to interest rate changes and provides an opportunity to make some money in the future. Also, currently the expenses are paid out of the Dana Fixed account which skews the performance of that fund; by opening this other account we can pay expenses from it instead. The Board will consider this further at the next meeting.
INVESTMENT MANAGER’S REPORT: Per printed quarterly reports from Dana Investment Advisors.
INVESTMENT CUSTODIAN’S REPORT: Reports available online via Salem Trust.
ATTORNEY’S REPORT: Lee Dehner reviewed the Legislative session, noting the bills that didn’t pass but we should expect more activity on next year. The major one that did pass was not as drastic as originally proposed. Senate Bill 1128’s key changes are: for service after 7/1/11 maximum of 300 hours per year of overtime and no sick or annual leave to be included in benefit calculations; took away required use of excess monies – still the same as 1999. Committees have been established by the Legislature to do pension plan comparisons and to review all line-of-duty injury/death benefits.
Mr. Dehner reminded everyone that their financial disclosures should have been filed by 7/1/11. Mary will check online to see if they’ve all been recorded.
OLD BUSINESS:
1) Annual Report: Additional information was provided and the report was approved by the State.
2) Retiree COLA: Foster did calculation which was sent to Salem to implement as of 7/1/11 for the one retiree in the plan.
3) Experience Study and Change of Assumptions: Board members will study revised actuarial valuation which must be adopted by next meeting and then sent to State; these issues will be discussed then. The report shows the Stop/Restart and changed mortality table.
4) Accrued Leave Payouts at Termination: We will need to amend the Plan Document to reflect statutory changes. Accruals prior to 7/1/11 still count and it’s up to the employer to decide whether those accruals are based on calendar or fiscal years.
NEW BUSINESS 1) New Member: Mary Stephens noted that the newest hire is Chad Brunner.
COMMENTS/QUESTIONS: None.
DATE OF NEXT MEETING: October 27, 2011 at 9:00 a.m. at the Administration Building.
ADJOURNMENT: At 10:05 a.m.
______________________________________
Chairman
______________________________________
Secretary
/ms
