HomeMy WebLinkAbout1990-07-26 Minutes•
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MINUTES OF A MEETING OF THE FIRE PENSION BOARD
A
meeting of the Fayetteville Fire Pension and Relief Fund Board of
Trustees was held on July 26, 1990, at 1:30 p.m. in Room 326 of
City Hall.
PRESENT: Fire Chief Mickey Jackson, Firemen Pete Reagan,
Retiree Darrell Judy, Secretary Sherry Thomas, and
Finance Director Ben Mayes. Also present was
Richard Yada of Merrill Lynch.
ABSENT:
CALL TO ORDER
The meeting was called to order by Mickey Jackson.
MINUTES
City Manager Scott Linebaugh
Reagan, seconded by Judy, made a motion to approve the minutes of
the previous meeting. The motion passed unanimously.
PENSION LIST
It was noted that there were no changes on the pension list for
this month. Judy, seconded by Reagan, made a motion to approve the
list. Upon roll call, the motion passed unanimously.
BUSINESS
CONTRIBUTION INCREASE
OLD
Ben Mayes noted that the City is at present, contributing 6% into
the General Employee Fund, 12% into the Police Pension Fund and 6%
into the Fire Pension Fund.
Jackson asked if the Fire Pension Board should request some type of
proposal be brought before the City Board to increase the
contribution to a comparable rate with the Police Pension Fund.
Jackson stated that the loss of soundness in the actuarial rating
should be a great factor in securing the increase.
Mayes explained that the request could be made as from the Fire
Pension Board or from City staff. Calculations would then be made
in regards to what had been previously budgeted and what the
estimated cost to the City would be. He stated that it would
probably require a budget adjustment.
Reagan, seconded by Judy, made a motion to ask City staff to
construct a proposal to be taken before the Fayetteville City Board
to approve an increase in the Fire Pension & Relief Fund
contribution to equal 12%. The motion passed unanimously.
• July 26, 1990
•
Jackson requested Linebaugh be apprised of what had been decided
and voted upon. Staff will draft a proposal and return to the Fire
Pension Board at their next regularly scheduled meeting for
approval before presenting it to the City Board.
NEW BUSINESS
INVESTMENTS
Richard Yada presented the Board with an update on performance
figures through June 30, 1990. The Merrill Lynch Income Account
showed a balance at the end of June of $2,142,166.14, and the
status of present rates for Treasury Bonds was described.
Yada explained items
Company. It is Zero
(LYON). He explained
Disney park in France
minimum of 6%. As
converted into stock
approximately 18.65.
stock in Europe grows
on the hand out including the Walt Disney
Coupon Bond or a Liquid Yield Option Note
that Disney raised funds to build the Euro -
and these notes are guaranteed to return a
the Euro -Disney grows, the notes can be
of the Euro -Disney Company at a rate of
He explained that as the value of Disney
so does the value of the bonds.
Yada stated that he would go into greater detail on the upcoming
month's statement because the figures would have changed somewhat.
The statement format will have also have changed.
• The New Mexico Capital Portfolio showed a value of $2,178,573 as of
June 30, 1990. The original account began in December of 1985 with
an original investment of $1 million. In April of 1987, value was
listed as $1,647,585.
The
Cash Account was listed as having a balance of $180,000 at the end
of June, 1990. The fixed income intermediate bonds range in
maturity from 1992 to 1998 with a present balance of $698,000.
The Roxbury Capital Account has a market value of $616,469.60 as
of June 30, 1990. As of July 25, 1990, the account is down $13,000
to $603,745.00. When the company took over management on February
23, 1990 the balance was $573,662.50 so there has been a definite
increase. Thomas questioned the presence of a listed "short term
loss". Yada explained that, since the company began management on
the 23rd of February, they did sell some items on the 26th of
February and some of those prices were down. He stated that since
that initial transaction, the company has been buying more than
selling and, in fact, he didn't think they had sold anything else.
The Roxbury holdings were also explained in some detail.
Long-term treasuries are still down for the year 18/100 of a point
and high-grade corporate bonds are up 1.79. The fixed income
•
July 26, 1990
account is based on those two indexes. The Consumer Price Index at
the end of June was +2.88.
New
Mexico Capital Account was up for the year at 4.61% with value at
June 30, 1990 at $2,178,573. As of July 25, 1990 the balance was
$2,190,274.00 with their Balanced Account being somewhat above the
average for the year. Investments total $1,647,585 in the New
Mexico Account and $507,657 in the Roxbury Account.
Portfolio value as of June 30, 1990 was $5,315,169.00, not
including balance in the checking account. Bonds and other was
listed as $160,000. Stocks were broken down into current holdings
of 33.87% with 35% for a market target. Bonds are currently low at
25% with the target being 40% .
The
statement for the income account described the portfolio value at
$2,142,166.00 as of June 30, 1990. As of July 25, 1990 the value
was $2,134,902 which was down a total of $8,000.
Yada distributed an authorization form to the Board to be filled
out, signed and held in the Board's file to authorize wiring of
funds from one account to another. A form also required to be
signed was an asset information form stating that Richard Yada and
his management firm would be responsible for the cash payment for
asset information.
ADJOURNMENT
The meeting was adjourned at 2:45 p.m.