HomeMy WebLinkAbout1994-06-30 MinutesMINUTES OF A MEETING OF THE FIRE PENSION BOARD
A meeting of the Fayetteville Firemen's Pension and Relief Board
was held on Thursday, June 30, 1994, at 11:05 a.m. in.Room 326 of
the City Administration Building, 113 W. Mountain, Fayetteville,
Arkansas.
PRESENT: Marion Doss, Ron Wood, Pete Reagan, Retiree Darrell Judy,
Mayor Fred Hanna, City Clerk Sherry Thomas, and Treasurer
Glyndon Bunton.
ABSENT: Retiree Richard Baird
CALL TO ORDER
Mayor Hanna called the meeting to order.
MINUTES
Doss, seconded by Judy, made a motion to approve the minutes of the
May 19, 1994 meeting. The motion was approved unanimously.
PENSION LIST
Thomas stated the only change in the Pension List was that Leonard
Bolain passed away May 30, 1994, and the pension has been changed
to his widow, Ann.
Doss, seconded by Reagan, made a motion to approve the pension list
for July 1994.
NEW BUSINESS
INVESTMENT REPORT
Richard Yada, Merrill Lynch, distributed a summary of the portfolio
performance as of May 31, 1994. He stated he would try and get New
Mexico Capital to come to a meeting within the next couple of
months and give a report.
He stated the balance with New Mexico is $4,111,159, down about
$95,000 from the year end or about 2.25%. The income account
balance is $3,257,753 which: is down 3.96% from year end. This
balance includes some deposits and withdrawals. The S&P was down
2.13%, so compared with them, New Mexico did about the same as the
market, and they are 70% in stocks. The income account did a
little better than the average. He stated there is not one bond
market that was up for the first five months of this year. There
are $30,000 of dividends and interest coming into this account
monthly. As people retire, they will not be able to pay the
benefits from this monthly income, but they currently are able to
do that.
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June 30, 1994
Bunton asked how an increase in interest rates would affect this.
Yada stated the value of the bonds will go down when interest rates
go up.
Mayor Hanna stated given the market, the portfolio does not look
that bad.
Reagan stated he wanted to make sure the fund is in a valley and is
on the way up.
Yada stated within the latter part of this year and next year, they
are anticipating a bull market.
Reagan asked what 1/2 mill would mean in dollars to this pension
fund.
Mayor Hanna stated close to $150,000.
Reagan stated at one time, the fire pension received 1 mill, but
now it only gets 1/2 mill.
Yada stated there was a realignment in the late 1980's, and all
pension funds got cut. He stated there has to be an election to
get it back up to 1 mill.
Reagan stated the City is paying 12% into the pension fund, and he
was curious about the possibility of being able to reduce that
amount and increase the millage to the fund.
Mayor Hanna stated he does not know if there could be a real case
made for asking for a millage increase at this particular time. He
stated he felt the voters would approve an increase if the pension
fund got in trouble
Reagan stated North Little Rock had a big campaign on this. They
lost 2 years ago in the election, but this year, they won by a 2 to
1 margin. He was trying to help save some of the City's 12%
contribution.
Mayor Hanna stated we are in pretty good shape in this City. The
City is not collecting any millage. The City Council could vote to
collect up to 5 mills.
Bunton asked if the actuarial report would help with this question.
Reagan stated they would not because they only deal with what has
happened and do not make any projections.
ADJOURNMENT
The meeting adjourned at 11:32 a.m.