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CEMETERY COMMISSION 2013/10/16 MinutesLAKE FOREST CEMETERY COMMISSION MEETING LAKE FOREST CEMETERY GATEHOUSE WEDNESDAY, OCTOBER 16, 2013, 5:00 P.M. MEETING MINUTES ROLL CALL, CALL TO ORDER:The Lake Forest Cemetery Commission convened at 5:00 p.m. at the Lake Forest Cemetery Gatehouse. The following members were present: Chairman Colin Silvester; CommissionersPrueBeidler, Amy Schuetz, and Patrick Looby; and Staff MembersBob Kiely, Secretary-Treasurer; Chuck Myers, Superintendent of Parks and Forestry;and Phil Alderks, Cemetery Sexton. Also attending was Tony Hoban from William Blair and Company. CONSENT AGENDA: Commissioner Patrick Looby motioned to approve the July 17, 2013 minutes and the Sales Report.CommissionerSchuetzseconded the motion. The Commission then voted unanimously to approve the Consent Agenda. CEMETERY UPDATES: Ravine Restoration: Sexton Phil Alderksreported to the Commission that a letter had been received from the Illinois IEPA stating that they had received our application for the IEPA 319 Nonpoint Source Pollution Control Grant. The letter also stated that the IEPA could be releasing preliminary information possibly in January with final awards announced in April. THIRDQuarter Investment Report from William Blair and Company: Tony Hoban from William Blair stated that the markets had experienced a remarkable move in the last 3 quarters. The rumblings about the European debt crisis and slowdown in China have quieted and the employment situation is looking a little brighter. Chairman Silvester made the comment for the record that the combined accounts were up for the quarter from $4,001,227 to $4,286,832 which is a 7.3% increase. For the year Silvester stated that Cemetery investments were up 15%. Hoban acknowledged that this has been a good year for the equity market, but bonds are still lagging. Currently stocks are the better investment which is why the asset allocation is a little skewed from the ranges in the Cemetery Investment Policy. At this time the allocation is 69% of the fund is in stocks, 18% International and 13% in fixed income and cash. Hoban said this is an unusual situation but we have gotten to this place mostly through appreciation of the equities we hold. He said currently stocks are more attractive than bonds and are average in valuation. Hoban asked the Commission for direction in realigning the sectors to within the parameters set by the Investment Policy. Sexton Alderks stated that historically the auditors wanted the fund to be within the Investment Policy ranges by the end of the fiscal year. It was not something that needed to be micromanaged throughout the year, especially when the changes were due to appreciation. Secretary-Treasurer, Bob Kiely, asked Hoban if we set aside the policy, would he suggest we be moving into fixed income investments. Hoban responded no, not at this time. Kiely followed with a question to the Commissioners asking should we adjust now or ride the wave until April. Hoban said that we could opportunistically move toward the 20% fixed income investment with an April 1st target date. He said one possibility would be to boost international investments at the expense of domestics. Commissioner Beidler made the motion to opportunistically increase fixed income investments over the next 6 months to bring the fund within the ranges set forth in the Cemetery Investment Policy. Commissioner Looby seconded and the Commission passed the motion unanimously. CONSIDERATION OF FEES AND CHARGES FOR FY2015:Sexton Phil Alderks presented the proposed Cemetery Fees and Charges for FY2015 to the Cemetery Commission Members. Alderks said that the proposed increase across the fees would average in the 2% to 3% range depending on the individual fee and to adjusting some numbers to round figures. Following discussion by the Commission, CommissionerLooby motioned to approve the FY2015 Fees and Charges. CommissionerBeidler seconded the motion which passed unanimously. FY2015 CAPITAL IMPROVEMENT BUDGET:Sexton Phil Alderks presented the 5-Year Capital Improvement Program (CIP) to the Cemetery Commission. Alderks noted once again for the Commissioners that the $200,000 for the Ravine Restoration would only be spent as the Cemetery’s matching portion if and when the Cemetery secures a grant for the ravine restoration project. Chairman Silvester stated that as we have not had much success receiving a grant the Commission has in essence established a commitment to spend $200,000 toward ravine restoration. Silvesterfurther stated that if the current grant application fails to secure any money, we should in FY2015 explore phasing ravine restoration efforts. Commissioner Beidler agreed saying that since she has been on the Cemetery Commission we have been pursuing grant monies with little success.Silvester requested that staff come to the January meeting with plan on how to phase in work on the cemetery ravines. Commissioner Schuetz motioned to approve the FY2015 CIP Budget which was seconded by Commissioner Looby and passed unanimously. APPROVAL OF TARGET NUMBER FOR FY2015 BUDGET:Sexton Phil Alderks presented the FY2015 Revenue Projections to the Cemetery Commission. Alderks explained that the revenue projections were calculated based on conservative, optimistic and pessimistic sales projections and economic qualifiers. Alderks explained the projected inflation rate and investment performance figures were established by our investment counselor Tony Hoban and the research staff at William Blair and were approved by the City’s Finance Department. He added that revenue projections are based on last year’s actual financials, investment/inflation factors and sales numbers based on historical sales data. Following a brief discussion of the projections CommissionerBeidler motioned to approve the Conservative – Base Revenue Projection of $929,592 as the FY2015 budget target number. CommissionerLooby seconded the motion. The Commission then voted unanimously to approve $929,592 as the target number for the FY2015 Budget. HAGERTY FAMILY MONUMENT APPROVAL REQUEST:Sexton Phil Alderks reviewed the proposed Haggerty family monument with the Commissioners. Alderks explained that the Haggerty’s had already come to the Cemetery Commission with another concept which was approved, but their memorial had changed so much that he thought it best if the Commission reviewed the new design. Alderks said that he had no issues with the new design and it was in keeping with the family estate lot that the Haggerty’s had purchased. The Commission followed with discussion and the only concern they had regarded the height of the structure. Alderks stated that while there are no dimensions for the height of the memorial on the drawings submitted by the Haggerty’s the prior design that was approved by a previous Commission was 9’ 8” high. Commissioner Beidler motioned that the new design be approved contingent on the height of the memorial being up to 9’ 8” tall. If the height of the memorial is greater than 9’ 8” the Haggerty’s would have to resubmit the application for approval. Commissioner Looby seconded the motion which passed unanimously. OTHER MATTERS:Chairman Silvester requested that the Commission approve an amount up to $5,000 for the sub-committee that was appointed at the July Commission meeting to review possibility of using index funds as opposed to managed funds. Silvester stated that these funds would be in the event that the sub-committee needed outside expertise to evaluate the positives and negatives of the indexed fund approach. Commissioner Schuetz seconded the Chairman’s motion which passed unanimously. CITIZENS’ OPPORTUNITY TO ADDRESS CEMETERY COMMISSION: No citizen comments were made during this meeting. ADJOURNMENT: The meeting adjourned at 7:00 pm.