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HomeMy WebLinkAbout1990-07-26 Minutes• • 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.