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Home My WebLink About1990-08-30 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 Thursday, August 30, 1990 at 1:30 p.m. in Room 326 of City Hall. PRESENT: Fire Chief Mickey Jackson, Retiree Darrell Judy, Finance Director Ben Mayes, and Secretary Sherry Thomas. ABSENT: Firemen John Dill and Pete Reagan and City Manager Scott C. Linebaugh CALL TO ORDER The meeting was called to order by Chief Mickey Jackson. INVESTMENTS Curtis Williams began his presentation by reviewing the state of the accounts as of July 31. August figures were not available at the time of the meeting. Williams stated that the market was down substantially with the negative effect on the New Mexico portfolio of approximately • $100,000, and the negative effect on the Roxbury portfolio was approximately $60,000. He reminded the Board that with the inflation rate at approximately 2.93 both accounts are still substantially better than inflation, also warning that the Iraq situation affecting oil prices will increase inflation and lower performance for the accounts. • Williams stated that New Mexico was 51% invested in fixed income and explained that those portfolios were being hit hardest now because of rising interest rates. He stated that it was felt that by the end of this year or the first of next year, rates would be much lower than they are now. New Mexico is approximately 40% in stocks and 8.4% in cash. Williams reported that Roxbury has approximately 14% in cash with the intention of increasing cash as the market rallies. He warned, however, that things would probably get worse before they got better, even with a resolution to the Persian Gulf situation. In the Fixed Income portion of the portfolio, the plan now has a 15 month supply of one year CDs. Williams explained that they were obtained after he realized that short term interest rates were dropping drastically. He stated that the purchase still keeps the plan within the asset allocation guidelines. Ben Mayes presented an agenda request for raising the City's contribution to the Fire plan from 6% to 12% and read a memo to be submitted to the Board of Directors along with the request. He August 30, 1990 stated that the contribution would be raised beginning in 1991. The agenda request was temporarily tabled as on at this meeting. approximately $44,000 it could not be voted He stated that the Police Pension Plan actuaries had been asked to project benefit payments and revenues through the year 2003, which is the date the plan should be actuarily sound. They were asked to determine what type of income or investment return would be needed to assure the plan would be actuarily sound by that time. Mayes stated that it would give the Board some very important information but the cost would be approximately $1,500 for the report. ADJOURNMENT The meeting was adjourned at 1:58 p.m. with no action taken for lack of a quorum.