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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. • • 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.