HomeMy WebLinkAbout1994-09-29 - Agendas - Final71.
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AGENDA
FIREMEN'S PENSION AND RELIEF BOARD
September 29, 1994
11:00 a.m.
City Hall Room 326
I. Approval of the minutes of the September 1, 1994, meeting
II. Approval of Pension List for October, 1994
III. Old Business
IV. New Business
A. Investment Report WA
V. Adjournment
MINUTES OF A MEETING OF THE FIRE PENSION BOARD
A meeting of the Fayetteville Firemen's Pension and Relief Board
was held on Thursday, September 1, 1994, at 11:00 a.m. in Room 326
of the City Administration Building, 113 W. Mountain, Fayetteville,
Arkansas.
PRESENT: Marion Doss, Ron Wood, Pete Reagan, Retirees Darrell Judy
and Richard Baird, Mayor Fred Hanna, City Clerk Traci
Paul, Treasurer Glyndon Bunton, City Attorney Jerry Rose,
Administrative Services Director Ben Mayes and Personnel
Director Don Bailey.
CALL TO ORDER
Mayor Hanna called the meeting to order.
MINUTES
Reagan, seconded by Doss, made a motion to approve the minutes of
the July 28, 1994, meeting. The motion was approved unanimously.
PENSION LIST
Reagan, seconded by Doss, made a motion to approve the pension list
for October, 1994. There were no changes in the pension list. The
motion was approved unanimously.
NEW BUSINESS
INVESTMENT REPORT
Richard Yada, Merrill Lynch, stated there have not been many
changes through the end of July. New Mexico Capital, which was at
$4,200,000 at the beginning of 1994, has gone to $4,187,000.
Yesterday it was up to $4,239,000. The income account is down, the
treasury is up 2.1%, the Dow Jones is up 1.85% and the S & P 500
stocks in the index is down .13%. One of the big things that has
affected our portfolio is the long term treasury being down 5.85%.
High grade corporate bonds are down 3.52%. The CPI, which affects
our actuary, is up 1.51% through the end of June. It is at a pace
of about 3% inflation rate for this year. That makes New Mexico
Capital, starting out with $4,200,000, down .43% for the year. We
compare that to the Dow Jones Industrial Average being up 1.85% and
the stock of S & P 500, which is down .13. Since their portfolio
is about 40% in bonds, you factor in the treasuries and the
corporate bonds. Combine all those to see what New Mexico Capital
has done. They have outperformed the indexes. The income account
was down .37 for the year. There was a withdrawal from the account
to supplement the payments each month.
New Mexico Capital's asset allocation for the $4,291,000 as of
August 30 is 72% of stocks, 26% of fixed income, and 2% in money
ARCHIVED,
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September 1, 1994
markets. That compares to a model long term growth portfolio that
should be 70% of stocks, 25% fixed income, and 5% cash. They are
almost right on the long term growth portfollio.
The income portfollio is 83% fixed income, 5% in equity, and 12%
cash. The model for income portfolio is about 60% fixed income,
30% stocks. We are leaving stocks to New Mexico Captial
Management.
Combining both portfollios, we have a 44% exposure to the stock
market, 50% fixed income, and 6% cash.
Key items of the acutuary report are the income, actuary accounts,
employer contributions. The insurance turnback for 1993 was
$123,000 and the millage is $143,000.
The actuary says we have to have $156,484 coming in to the plan.
That only counts the insurance turnback, the millage, and the
matching part of the city's contribution. Those three have got to
be at least $156,000.
To recap 1981 to 1993, assets of one million seven in 1981 have
increased to a total of 7.2 million in 1993. Projected payroll has
basically stayed the same. On unfunded liability, we are a little
ahead of schedule from what we had originally planned back in 1987.
There is enough money to pay the people who are already retired in
the plan we are in. There is enoungh money so that benefits can
continue to be paid. We have 78% of money needed to pay those who
are working right now when they retire.
OLD BUSINESS
DROP PLAN
Pete Reagan, Jerry Rose, Don Bailey, and Ben Mayes discussed and
agreed to hold a working session regarding the Drop plan before the
next meeting.
Yada stated the interest ongoing and the final interest payment in
Section 5.01(c) could be confusing as to what you are going to pay,
which figure you are going to use. For a partial year use money
market rates as published in the Wall Street Journal.
OTHER BUSINESS
RICHARD BAIRD - RESIGNATION
Mrs. Richard Baird read a letter explaining Richard Baird's
resignation.
• ADJOURNMENT
The meeting adjourned at 11:40 a.m.
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INVOICE
NM CAPITAL MANAGEMENT, INC.
7510 MONTGOMERY, NE SUITE 201
ALBUQUERQUE, NM 87109
August 1, 1994
Merrill Lynch
425 W. Capitol, Suite 200
Little Rock, AR 72201
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NM CAPITAL MANAGEMENT, INC.
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Re: City of Fayetteville Fire Pension & Relief Fund
Account #563-96346
STATEMENT OF MANAGEMENT FEES:
For the period from April
01, 1994 through June 30, 1994
CITY OF FAYETTEVILLE FIRE PENSION AND RELIEF FUND
Portfolio Valuation as of
$ 4,061,006.11 @ 0.5000°%
Quarterly Management Fee
TOTAL DUE AND PAYABLE
06-30-94
per annum
$ 4,061,006.11
*
5,076.26
5,076.26
5,076.26
ALL INVOICES ARE DUE UPON RECEIPT. TO INSURE PROPER CREDIT, PLEASE
INDICATE ACCOUNT NAME ON CHECK.
*Portfolio Valuation used for fee computation has been reduced by
accruals amounting to $18,442.19.
A copy of this invoice has been sent to the client for their record.
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FAYETTEVI LI 4E
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THE CITY OF FAYETTEVILLE, ARKANSAS
TO: Fire Pension Retirees
FROM: Traci Paul, City Clerk
DATE: September 12, 1994
SUBJECT: FIRE PENSION BOARD VACANCY
Richard Baird has recently resigned from the Fire Pension Board.
The Board is accepting nominations for a retired member to fill
his unexpired term. The term will expire in April of 1995.
Please submit any nominations to the City Clerk's office by
Tuesday, September 20. Nominations will be listed on a ballot
and mailed to you for your vote. If you have any questions,
please feel free to call. Thanks.
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113 WEST MOUNTAIN 72701 501-521-7700
FAX 501-575-8257
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• SEPTEMBER 1, 1994
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MEMBERS OF THE FAYETTEVILLE FIREFIGHTERS PENSION BOARD,
"I RICHARD H. BAIRD SR. WANT TO RESIGN AS A MEMBER. I WANT TO
RESIGN A5 A MEMBER. I WANT TO THANK EVERYBODY ESPECIALLY THE MEN
THAT STARTED IT. I FEEL THAT THE RETIRED, FULL PAID AND VOLUNTEER
MEMBERS NEED SOMEONE THAT CAN READ AND TALK. I WILL BE GLAD TO
SERVE ON THE BOARD OR RUN FOR AN OFFICE WHEN I GET WHERE I CAN READ
AND TALK. i WILL CONTINUE ON THE BOARD UNTIL I AM REPLACED."
RICHARD H. BAIRD SR.
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FAYETTEVILLE
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THE CITY OF FAYETTEVILLE, ARKANSAS
TO: Fire Pension Retirees
FROM: Traci Paul, City Clerk
DATE: September 12, 1994
SUBJECT: FIRE PENSION BOARD VACANCY
Richard Baird has recently resigned from the Fire Pension Board.
The Board Is accepting nominations for a retired member to fill
his unexpired term. The term will expire in April of 1995.
Please submit any nominations to the City Clerk's office by
Tuesday, September 20. Nominations will be listed on a ballot
and mailed to you for your vote. If you have any questions,
please feel free to call. Thanks.
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113 WEST MOUNTAIN 72701 501-521-7700
FAX 501-5754257
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