The URL can be used to link to this page

Home My WebLink About2009 Retiree Health City of Elgin Retiree Health Insurance Trust Fund Board Meeting (Rescheduled from November 10, 2008) January 12, 2009 The Trust Fund Board meeting was called to order by Board Member James Nowicki at 10:33 a.m. in City Hall conference room one. Present: Board Members Martin Gregory, Dennis Ahrens, Colleen Lavery,James Nowicki and Gail Cohen. Approval of the Previous Meeting Minutes Board Member James Nowicki presented the Trust Fund meeting minutes from August 11, 2008, to the Board for approval. Board Member Colleen Lavery moved to approve the minutes. Board Member Martin Gregory seconded the approval. Upon a roll call vote: Yeas: Board members Gregory, Ahrens, Lavery,Nowicki, and Cohen. Nays: None. Discussing Equity Investments elmk The Board discussed the email sent to the Board members on January 8th, 2009, by Board member James Nowicki titled "Equity Investments for Retiree Health Insurance Fund". James met with Patrick Krolak, Managing Director, and Mike Piotroski, Senior Analyst,of Marquet Associates, on two occasions and they recommended the Board invest the 45% equity portion into the following: Asset Class Policy Target Vanguard Large Cap Index 65.0% Vanguard Small Cap Index 20.0% Euro-Pacific International 15.0% Board member Colleen Lavery and James Nowicki will be meeting with Amcore Bank representatives on Wednesday January 14, 2009, and will discuss the if trust will contract with the three mutual funds. Discussed the merits of the Vanguard funds. • Low expense ratio o Large Cap .20% o Small Cap .22% • Discussed Euro-Pacific investment costs & 12-b-1 fees. • Discussed availability of Admiral Funds: investment option for Treasured Funds,for example local governments, that mirror the above funds with a higher minimum investment but lower fees. City of Elgin Retiree Heath Insurance Trust Fund Board Meeting January 12, 2009 Page 2 Board member Colleen Lavery discussed the upcoming ERI and how it may affect the Fund. Board member Colleen Lavery will work with Board member Gail Cohen to come up with a list of the initial ERI personnel. Colleen estimates that she will know by September how the initial ERI actually affects the funds. At present, Board member Colleen estimates we will have $3 million in the equity portion (45%) to invest. The recommendation is that the Board agrees to set aside 1/12 of the $3 million ($112,500) of the equity portion each month to be invested as follows: Asset Class Percentage Amount Vanguard Large Cap Index 65.0% $73,125 Vanguard Small Cap Index 20.0% $22,500 Euro-Pacific International 15.0% $16,875 Board Member James Nowicki opened the floor for a vote on investment strategy. Board member Dennis Ahrens moved to approve the investment strategy. Board member Martin Gregory 2nd the nomination. Upon a roll call vote: Yeas: Board members Gregory, Ahrens, Lavery,Nowicki, and Cohen. Nays: None. Miscellaneous Items Funding Update: Board member Colleen Lavery presented information on the status of the Trust's funding. The Fund contains $2,000,000 and is earning nominal interest. Fixed Income: Board member James Nowicki opened discussion on the fixed income portion of the Fund. The Board considered investing the money into CD's, treasury bills and other permitted investments under the investment policy. Board members Colleen Lavery and James Nowicki will discuss possibilities with Amcore Bank at their meeting with them on Wednesday, January 14th, 2009. Board Member James Nowicki opened the floor for a vote on the following investment strategy: The Board agrees to review the City of Elgin's investments in CD's, treasury bills, etc, and mirror those investments, with a limit of$250,000 in each certificate of deposit investment. Board member James Nowicki will email the Board with the results. Board member Colleen Lavery moved to approve the investment strategy. Board member Martin Gregory 2"d the nomination. City of Elgin Retiree Heath Insurance Trust Fund Board Meeting January 12, 2009 Page 3 r Upon a roll call vote: Yeas: Board members Gregory, Ahrens, Lavery,Nowicki, and Cohen. Nays: None. The next Board meeting is tentatively scheduled for February 9`h, 2009. Executive Session No executive session called Adjournment Board member Gail Cohen made a motion to adjourn Board member Dennis Ahrens seconded the motion to adjourn. Upon a roll call vote: Yeas: Board members Gregory, Ahrens, Lavery,Nowicki, and Cohen. Nays: None. The meeting adjourned at 11:15 a.m. r <____ = al..04,-414.air4 C/ /o James owicki, Trust Fund President Date Approved r . Vanguard-compare funds Page 1 of 3 �� :�� '� _~ Vanguard' Compare funds Fund name Large-Cap Index Small-Cap Index | ! , Fund Inv Fund Inv : - :Asset class ' Stock : Stock ' - — — i- ;Category Large Blend i Small Blend — — — _ — ; Expense ratio 0.20% 0.22% -- :Admiral Shares Available :Available ��__- L��___-__ _��_____� -- Month-end Performance | Quarter-end Performance :Average annual per�nrnmnom000r12�1/2V0V __- _ _- •YTDoe ' '1 (�% ��% — — — iu'V1K��009 � 1 year -37.08% 1 -36.07% -- -- -- 3 year -8.25% 1 -9.23% . — — — �m� | ` � oyoa '078% -- -- 10 year -- !3.J196 -- -- Since inception -2.25% 974% -- -- Inception date 01C30/2004 3/19 -- -- \ SEC yield ao 2�6O of 9/ 2.60%B 2»996B |-- •-- _��_ _ ____ ��_ _____ ___ _ • _ �� | _______ The performance data shown represent past performance, which is not a guarantee of future results. In vestment returns and principal value WI!!fluctuate, so that investors'shares, when sold, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data cited. ______________- -__-__ ______' : Fees&minimums - l -------- Load None -- -- -- • 12b-1 fee None None __ __• __ Purchase fee None None -- -- -- Redemption fee ' None None --| -- -- General account i ' $nm0 $u � n� ' 'm� --' --! -- minimum IRA minimum $3.000 $3.000 --i --' -- UGMA/UTMA | ' � __minimum �0O0! $3,000 _- __ � __ i Additional investments $100 --! --� -- ________ � _•_-_____ __ �m�' —'--- - - ---- � ottpm://peroono1.voogoarU.swxo/umifuod ?tuodld4387,O04N 1/12/2009 Vanguard-compare funds Page 2 of 3 stocks 754 1808 — — - Median market $346 billion :$968.0 million — cap Price/earnings 11.1x 14.6x — — ratio ;— Price/book ratio = 1.7x , 1.3x — — Return on equity '21.8% . 13.3% — — — Earnings growth 17.8% 14.0% — — rate — Foreign holdings 0.7% , 0.9% — — i Turnover rate 8.0°� 16.0% — — as of December as of December — Equity sector diversification as of 11/30/2008 Consumer Discretionary 8.30% 11.90%i — — — i Consumer Staples 12.30% 3.60%i —i — , Energy 13.80% 5.80%i — Financials 14.10% 21.70%! — — Health Care 14.00% 12.90% — — — ` Industrials 10.80% 16.30% — — — Information 15.40% 16.80% !Technology — • — — Materials 3.20%i 4.40%4 — - r !Telecommunication i Services • 3.70% 1.00% — — — Utilities 4.40% 5.60% i — — — Ten largest holdings as of 11/30/2008 1 €ExxonMobil Corp. Ina~' Strayer Education, — —__ — — 2 'The Procter& URS Corp. — °:Gamble Co. — 3 :General Electric Aqua America, Inc. — — Co. 4 AT&T Inc. i UGI Corp. Holding Corp. — — Co. — i 5 Microsoft Valley National Bancorp — — 6 Johnson& ' Piedmont Natural Johnson : Gas, Inc. — — — 7 1 Chevron Corp. ANSYS,Inc. — — 8 i Wai-Mart Stores, OGE Energy Corp. — — Inc. — JPMorgan Chase Watson &Co. ' Pharmaceuticals, — — Inc. 10 Pfizer Inc. "Arthur J.Gallagher — — &Co. — rik ;Top 10 as%of ;21.30% ; 3.00% — •— total net assets https://personal.vanguard.com/us/funds/vanguard/compare?fundld=0307,0048 1/12/2009 • Vanguard-compare funds Page 3 of 3 Historical volatility measures*as of 11/30/2008 E • Beta 100 1.00 — — R-squared 1.00 1.00 — — *A measure of the variance in the rate of return. Beta and R-squared for 500 Index Fund Inv are calculated for 36 months for returns relative to the S&P 500 Index.Beta and R-squared for Mid-Cap Index Fund Inv are calculated for 36 months for returns relative to the Spliced Mid-Cap Index. Performance data for periods of less than one year do not reflect the deduction of purchase and redemption fees that may apply. All other performance data are adjusted for purchase and redemption fees, where applicable. Vanguard funds apply a$20 annual account service fee to all funds with balances below$10,000 in many types of accounts, which is not reflected in the figures. If this fee was included, the performance would be lower. Click a fund name to view the fund profile for additional detail. anuutu 11Rt;i t�1995-2009 The Vanguard Group,Inc.All rights reserved.Vanguard Marketing Corp.,Distrib.Terms&conditions of use I Security Center� Obtain prospectus I Enhanced Support r r https://personal.vanguard.com/us/funds/vanguard/compare?fundId=0307,0048 1/12/2009 American Funds-Detailed Fund Information- Euro Pacific Growth Fund-Class A Page 1 of 6 19 American Funds' Detailed Fund Information EuroPacific Growth Fund® (growth fund) Class A shares Fund Number 16 Updated January 09, 2009, 3:08PM Pacific time Ticker/Quotron Symbol AEPGX $ 27.77 Newspaper Abbreviation EupacA Net Asset Value (NAV) • CUSIP Number 298706 10 2 NAV Change $ -0.70 Maximum Offering Price (MOP) $ 29.46 (All prices are subject to revision.) — -- Also on this page: Ileturgspgaies I Holdings I Portfolio Counselor Fund Description Fund Objective Seeks to provide long-term growth of capital by investing in companies based outside the United States. Distinguishing Invests in strong, growing companies based chiefly in Europe and the Pacific Characteristics Basin, ranging from small firms to large corporations. Types of Investments Invests primarily in common and preferred stocks, convertibles, American Depositary Receipts, European Depositary Receipts, bonds and cash. Non-U.S. Holdings Holdings are primarily outside the U.S. except a nominal portion that may be held in U.S. dollars. Portfolio Restrictions Normally, at least 80% of assets must be invested in securities of issuers • domiciled in Europe or the Pacific Basin. Fund Facts Related Materials Minimum Initial Investment $250 • Piosaectu_s (PDF) • Statement of additionalinforrnation (PDF) • Shareholder Accounts (aggregated 3,393,623 • Annual report (PDF) • for all share classes; updated monthly) • 5emi-anrw_al_report (PDF) Regular Dividends Paid December Capital Gains Paid — Fund Inception April 16, http://www.americanfunds.com/funds/detalls.htm?fundGroupNumber-16&fundClassNum... 1/12/2009 American Funds -Detailed Fund Information-EuroPacific Growth Fund-Class A Page 2 of 6 1984 Fiscal Year-End March • Returns & Expenses : Figures shown are past results and are not predictive of results in future periods. Current • and future results may be lower or higher than those shown. Results shown at net asset j value have all distributions reinvested. If a sales charge had been deducted,the results would have been lower. Share price and return will vary,so Investors may lose money. Investing for short periods makes losses more likely. Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity. Returns with sales charge for Class A shares reflect payment of the 5.75% maximum sales charge at the beginning of the stated periods. Definitions and other important legal information about these prices and returns are shown below. Rates of Return* Average Annual Total Returns • 1 yr 3 yrs I 5 yrs i 10 yrs i Fund Lifetime December 31, 2008 (most recent month-end) NAV -40.53% -4.82% 4.56% 4.98% — 11.32% With sales charge -43.94% i -6.68% 3.33% 4 4.36% JY 11.05% December 31, 2008 (most recent quarter-end) NAV I -40.53% i -4.82% 4.56% ' 4.98% 11.32% With sales charge -43.94% ' -6.68% 3.33% 1; 4.36% 11.05% . Expense Ratiost Results Graph a Detailed view EuroPacific Growth Fund 0.74% (net) EuroPacific Growth Fund 0.79% (gross) Average international fund 1.47% r http://www.americanfunds.com/funds/details.htm?fundGroupNumber-16&fundClassNum... 1/12/2009 American Funds-Detailed Fund Information- Euro Pacific Growth Fund-Class A Page 3 of 6 r • All distributions reinvested El Dividends taken in cash $140.000 sioo.000 -:4,743 //4.41/. $115.251 $10,000-474 ■ $0,000111IIIt'Itt1111111111 843 809091 92 93 Q485 96 VW 99 3001 02 03 0405 06 07 This chart tracks a hypothetical $10,000 investment in Class A shares without the effect of sales charges and with all distributions reinvested from the fund's inception through December 31, 2007. r Holdings Largest Industry Holdings Asset Mix % of net assets as of September 30, 2008(updated as of November 30, 2008 (updated monthly) quarterly) — - —.-: U.S. Equities 0.2% Pharmaceuticals 11.2% ; ---, . : Non-U.S. Equities 84.3% Commercial Banks 9.0% ' --- — U.S. Bonds 0.0% . , Oil, Gas &Consumable Fuels 7.8% ---1 Non-U.S. Bonds 0.3% Wireless Telecommunication 6.1% : Services i Cash & Equivalents 15.2% — : .....- Diversified Telecommunication . 4.4% : • Assets and Portfolio Turnover(for fiscal years) Services ---- —._ ------ -- Fiscal Fund Assets Portfolio Geographic Breakdown Year , (billions) Turnover % of net assets as of September 30, 2008 (updated % quarterly) 2008 $114.7 38.......,_ Europe 55.5% 2007 $104.0 27% Asia &Pacific Basin 20.0% 2006 $81.2 35% r . . • http://www.americanfimds.com/funds/details.htm?fundGroupNumber=16&fimdClassNuni... 1/12/2009 American Funds -Detailed Fund Information-Euro Pacific Growth Fund- Class A Page 4 of 6 r . • . Other(Including Canada &Latin : 13.2% ! : 2005 $54.2 30% ! America) . . F . . ----t------', i 2004 . $41.9 i 25% Cash &Equivalents 11.3% ' 1-• 5 --- Assets shown are for combined share classes. Portfolio Holdings (updated quarterly, upon availability) • Portfoljo_boldings (as of September 30, 2008) Largest Equity Holdings Percent of net assets as of November 30, 2008(updated monthly) . . ..., _. ... . .. • 1. : Roche (Switzerland) 3.8% A world leader in pharmaceuticals and diagnostic research. , . 2. i Bayer (Germany) 3.0% i Makes pharmaceuticals and over-the-counter medicines, and develops medical . .. diagnostic equipment. . . 3. ; America Movil (Mexico) . 2.1% . i . ; Latin America's largest cellular communications provider. 4. Novo Nordisk (Denmark) • 2.00/0 A global leader in drugs to treat diabetes. [ ... : 5. Novartis (Switzerland) 1.80/0 One of the largest pharmaceutical companies in the world. In addition to its prescription drugs, its products include Ex-Lax and Maalox. . — ......, 6. Nestle (Switzerland) 1.6% Global packaged food and beverage company based in Switzerland. 7. Gazprom (Russian Federation) 1.6% i The largest gas producer and transporter in Russia. - _ 8. Banco Santander (Spain) 1.4% A leading Spanish bank, with a strong franchise in Latin America and the U.K. . . 9. : SAP(Germany) 1.4% A leading developer of software for business applications. Also provides information I technology services. ' . i . 10. i Koninklijke KPN (Netherlands) 1.2% i The leading Dutch telecommunications company. Provides wireless telephone services in Germany. • :, _____.:.... •• .....__ _ http://www.americanfunds.com/funds/details.htm?fundGroupNumber=16&fundClassNum... 1/12/2009 American Funds-Detailed Fund Information-EuroPacific Growth Fund - Class A Page 5 of 6 Portfolio Counselors Number of years with American Funds or affiliates i Stephen E. Bepler 36 Mark E. Denning 26 Nicholas J. Grace 15 Alwyn W. Heong 16 • Carl M. Kawaja 17 Jonathan Knowles 16 • Sung Lee 14 Robert W. Lovelace 23 (as of the prospectus dated July 30, 2008) The portfolio counselors shown are reflected in the fund's most recent prospectus. Counselor responsibilities may have changed since that date. Important Legal Information Equity investments are subject to market fluctuations. Investing outside the United States entails additional risks, such as currency fluctuations, as more fully described in the prospectus. *Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund's investment adviser is waiving a portion of its management fees. Results shown reflect the waiver, without which the results would have been lower. Please see the fund's most recent prospectus or shareholder report for details. t Source for average international fund: Lippers", based on front-end load funds for the most recent fiscal year-ends available as of December 31, 2008, without the effect of sales charges.The fund's expenses are for its most recent fiscal year-end (March 31, 2008). The fund's investment adviser is waiving a portion of its management fees. The net expense ratio reflects the waiver, without which the expense ratios would have been higher; the gross expense ratio does not. The waiver may be discontinued at any time in consultation with the fund's board, but is expected to continue at the current level until further review. The fund's investment adviser and board intend to review the waiver as circumstances warrant. Please see the fund's most recent prospectus or shareholder report for details. Investors should carefully consider the investment objectives, risks, charges and expenses of the American Funds. This and other important information is contained in the prospectus, which can be obtained from your financial professional and should be read carefully before investing. The Capital Group Companies http://www.americanfunds.com/funds/details.htm?fundGroupNumber=16&fundClassNum... 1/12/2009 rik City of Elgin Retiree Health Insurance Trust Agenda NOTICE OF CANCELLATION OF MEETING NOTICE IS HEREBY GIVEN that the February 9, 2009, regularly scheduled meeting of the Retiree Health Insurance Trust is cancelled. The next meeting is scheduled for May 11, 2009 at 9:00 A.M. DATED: February 5, 2009 CITY OF ELGIN By James R. Nowicki Retiree Health Insurance Trust President . City of Elgin Retiree Health Insurance Trust Agenda City Hall Conference Room 1, South Wing, Main Floor Scheduled Meeting 9:00 a.m. May 11, 2009 A. Call to Order B. Roll Call C. Approval of Minutes D. Investments Update E. Miscellaneous Items F. Executive Session G. Adjournment rmi r City of Elgin Retiree Health Insurance Trust Fund Board Meeting May 11,2009 The Trust Fund Board meeting was called to order by Board Member James Nowicki at 9:15 a.m. in City Hall conference room one. Present: Board Members Martin Gregory, Colleen Lavery,James Nowicki and Gail Cohen. Absent: Dennis Ahrens. Approval of the Previous Meeting Minutes Board Member James Nowicki presented the Trust Fund meeting minutes from January 12, 2008, to the Board for approval. Board Member Martin Gregory moved to approve the minutes. Board Member Colleen Lavery seconded the approval. Upon a roll call vote: Yeas: Board members Gregory, Lavery,Nowicki, and Cohen. Nays: None. Investment Update Board Member James Nowicki discussed the recent purchase of bonds from the City of Elgin's Special Service Area(SSA) #19, Pointe Blvd. intersection improvements. While most 30 year government bonds have an interest rate of less than 4% and 20 year municipal bonds are earning 4.5%, obtaining a safe and secure investment at 7.0% is extremely helpful to the trust fund The bonds were purchased to address the fixed income portion of the Investment Policy. The Retiree Health Insurance Fund was the only bid to purchase the bonds at a rate of 7.0365% over 20 years (2029). This purchase will be reflected in the second quarter of the Retiree Health Insurance Investment Account, as the bond sale took place April, 2009. Board Member James Nowicki opened the floor for a vote on ratifying the purchase of the bonds. Board member Martin Gregory moved to approve the ratification of purchase. Board member Gail Cohen 2°a the nomination. Upon a roll call vote: Yeas: Board members Gregory, Lavery,Nowicki, and Cohen. Nays: None. Board Member James Nowicki discussed the City of Elgin Retiree Health Insurance Trust first quarter statement. The statement reflects the beginning of the monthly transfers to the Equity Accounts, as required by the Board. The Fund saw a$9,732 increase in the equity portion of the portfolio (2.96%) with an overall increase of$18,343 (.91%) in the total portfolio in the first quarter. Board Member Colleen Lavery reported that the City of Elgin made its annual contribution of $1,250,000 to the fund in January, 2009. City of Elgin Retiree Heath Insurance Trust Fund Board Meeting May 11, 2009 Page 2 Board Member Martin Gregory discussed possible future changes to the monthly investment dollar amount, should the market continue to improve. Board Member James Nowicki opened the floor for a vote on the acceptance of the first quarter investment report. Board member Colleen Lavery moved to accept the first quarter investment report. Board member Martin Gregory 2nd the nomination. Upon a roll call vote: Yeas: Board members Gregory, Lavery,Nowicki, and Cohen. Nays: None. Miscellaneous Items The next Board meeting is scheduled for August 10, 2009. Executive Session No executive session called r Adjournment Board member Gail Cohen made a motion to adjourn Board member Colleen Lavery 2nd the motion to adjourn. Upon a roll call vote: Yeas: Board members Gregory, Lavery,Nowicki, and Cohen. Nays: None. The meeting adjourned at 9:30 a.m. r 08/10/2009 J s R. Nowicki, Trust Fund President Date Approved r City of Elgin Retiree Health Insurance Trust Agenda City Hall Conference Room 1, South Wing, Main Floor Scheduled Meeting 9:00 a.m. August 10, 2009 A. Call to Order B. Roll Call C. Approval of Minutes D. Investments Update E. Miscellaneous Items F. Executive Session G. Adjournment r City of Elgin Retiree Health Insurance Trust Fund Board Meeting August 10,2009 The Trust Fund Board meeting was called to order by Board Member James Nowicki at 9:30 a.m. in City Hall conference room one. Present: Board Members Martin Gregory, Colleen Lavery, James Nowicki and Dennis Ahrens. Absent: Gail Cohen. Approval of the Previous Meeting Minutes Board Member James Nowicki presented the Trust Fund meeting minutes from May 11, 2009, to the Board for approval. Board Member Martin Gregory moved to approve the minutes. Board Member Colleen Lavery seconded the approval. Upon a roll call vote: Yeas: Board members Gregory, Lavery,Nowicki, and Ahrens. Nays: None. Investment Update Board Member James Nowicki discussed the history of Elgin's Special Service Area(SSA) #19, elk Pointe Blvd. intersection improvements bonds. The future incoming bills for the SSA were also discussed. James noted he would follow up with the City's Engineering Department for status on the project. Colleen Lavery will follow up with Amcore Bank to see about recognizing the purchase on the quarterly statement. Board Member James Nowicki discussed the City of Elgin Retiree Health Insurance Trust second quarter statement. The statement reflects the monthly transfers to the Equity Accounts, as required by the Board. The Fund stands at $2.07 million; with a split of 65% fixed assets and 35% equities. Board Member James Nowicki opened the floor for a vote on the acceptance of the second quarter investment report. Board member Martin Gregory moved to accept the second quarter investment report. Board member Colleen Lavery 2nd the nomination. Upon a roll call vote: Yeas: Board members Gregory, Lavery,Nowicki, and Ahrens. Nays: None. Miscellaneous Items Board Member Martin Gregory asked about the impact to the fund due to the Early Retirement Initiative by the City. Board Member James Nowicki noted it would probably affect the fund negatively, at least initially, as a result of the 40 new participants in the fund. The ERI wasn't expected from an actuarial standpoint. However, over the long term it will have no negative City of Elgin Retiree Heath Insurance Trust Fund Board Meeting August 10, 2009 Page 2 ew results. It was also noted that premiums received versus expenses paid out is good, according to Blue Cross/Blue Shield, the City health insurance carrier. The Board also discussed the City's budget, the economic downturn, and how it will affect the health insurance fund. The delay or scaling back of the transfer of funds from the General Fund to the Health Insurance Fund could be possible. The next Board meeting is scheduled for November 9, 2009. Executive Session No executive session called Adjournment Board member Dennis Ahrens made a motion to adjourn Board member Colleen Lavery 2nd the motion to adjourn. Upon a roll call vote: Yeas: Board members Gregory, Lavery,Nowicki, and Ahrens. Nays: None. The meeting adjourned at 9:55 a.m. i/kA, i2 .-- r :. R. Nowicki, Trust Fund President Date Approved r City of Elgin Retiree Health Insurance Trust Agenda City Hall Conference Room 1, South Wing, Main Floor Scheduled Meeting 9:00 a.m. November 9, 2009 A. Call to Order B. Roll Call C. Approval of Minutes D. Investments Update E. Miscellaneous Items F. Executive Session G. Adjournment r r City of Elgin Retiree Health Insurance Trust Fund Board Meeting November 9,2009 tow The Trust Fund Board meeting was called to order by Board Member James Nowicki at 9:12 a.m. in City Hall conference room one. Present: Board Members Martin Gregory, Colleen Lavery, James Nowicki and Gail Cohen. Absent: Dennis Ahrens. Approval of the Previous Meeting Minutes Board Member James Nowicki presented the Trust Fund meeting minutes from August 10, 2009, to the Board for approval. Board Member Colleen Lavery moved to approve the minutes. Board Member Martin Gregory seconded the approval. Upon a roll call vote: Yeas: Board members Gregory, Lavery,Nowicki, and Cohen. Nays:None. Investment Update Board Member James Nowicki discussed the City of Elgin Retiree Health Insurance Trust third quarter statement. The statement(attached) reflects the monthly transfers to the Equity Accounts, as required by the Board. The statement now also reflects the $580,000 in Special Service Area#19 bonds. The Fund has assets of$2.8 million. The Board plans to review the fourth quarter's statement at the next scheduled meeting to verify that the equity/fixed income allocations in accordance with the Trust's investment guidelines. Board Member James Nowicki opened the floor for a vote on the acceptance of the third quarter investment report. Board member Martin Gregor moved to accept the third quarter investment report. Board member Gail Cohen 2' the nomination. Upon a roll call vote: Yeas: Board members Gregory, Lavery,Nowicki, and Cohen. Nays: None. Miscellaneous Items Board Member Martin Gregory asked about the delay or scaling back of the transfer of funds from the General Fund to the Retiree Health Insurance Fund. Board Member James Nowicki noted that the transfer was lowered to $250,000 from the scheduled $1.5 million in 2010. The Board also discussed the accounts payable due in 2010 by the Fund, how it will be affected by the Reduction in Force that recently took place and changes that may occur in the City's health insurance policy for retirees going forward. r City of Elgin Retiree Heath Insurance Trust Fund Board Meeting November 9, 2009 Page 2 Board Member James Nowicki presented the proposed 2010 meeting schedule: February 8, 2010 May 10, 2010 August 9, 2010 November 8, 2010 Board member Colleen moved to accept the 2010 meeting schedule. Board member Gail Cohen 2nd the nomination. Upon a roll call vote: Yeas: Board members Gregory, Lavery,Nowicki, and Cohen. Nays: None. Board Member James Nowicki presented the information for the upcoming board election for the seat currently held by Board Member Dennis Ahrens. Nomination ballots will be sent out in November. All nominations for the seat are to be post-marked by December 4, 2009. Ballots will then be created and sent out to all Fund recipients. All votes must be post marked by January 19, 2009. Board Member Gail Cohen will provide a list of all the Fund participants for the nominations and ballots. Finance Department Administrative Assistant Mary Maskel- Szymonik will assist with mailing the documents. Board Member Martin Gregory asked about the contract between the City and Amcore Bank. Board Member James Nowicki noted that the contract would be up for review in the near future. Executive Session No executive session called Adjournment Board member Colleen made a motion to adjourn Board member Gail Cohen 2nd the motion to adjourn. Upon a roll call vote: Yeas: Board members Gregory, Lavery,Nowicki, and Cohen. Nays: None. The meeting adjourned at 9:47 a.m. �2 February 8, 2010 James R3owicki, Trust Fund President Date Approved r