HomeMy WebLinkAbout1995-02-23 - Agendas - FinalAGENDA
FIREMEN'S PENSION AND RELIEF BOARD
February 23, 1995
11:00 a.m.
City Hall Room 326
1. Approval of the minutes of the January 26, 1995 meeting
•
2. Approval of Pension List for March, 1995
3. Old Business
4. New Business
A. Chuck Dulmer, New Mexico Capital
B. Investment Report, Merrill Lynch
5. 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, January 26, 1995, at 11:00 a.m. in Room 326
of the City Administration Building, 113 W. Mountain, Fayetteville,
Arkansas.
PRESENT: Marion Doss, Pete Reagan, Retirees Darrell Judy and
Howard Boudrey, Ron Wood, and City Clerk/ Treasurer Traci
Paul.
ABSENT: Mayor Fred Hanna
CALL TO ORDER
Marion Doss called the meeting to order.
MINUTES
Boudrey, seconded by Reagan, made a motion to approve the minutes
of December 1, 1994. The motion was approved unanimously.
PENSION LIST
Paul stated there were no changes in the pension list. Judy,
seconded by Boudrey, made a motion to approve the pension list for
February, 1995. The motion was approved unanimously.
NEW BUSINESS
PENSION FUND - LETTER OF DETERMINATION
Reagan stated he had been in contact with a tax attorney regarding
a letter of determination to find out if the fund is in compliance
with IRS regulations. The attorney will charge $100 an hour for
his services. The retainer fee would be waived. We would be
responsible for supplying all information needed.
Doss stated a letter of determination is necessary.
In answer to a question from Wood, Reagan stated the letter is a
certificate from the IRS saying that the plan abides by all the
rules and regulations of the IRS.
Reagan stated the attorney will give his legal opinion as to
whether we need a letter of determination or not. The only opinion
we have at this point is from the Personnel Director.
In answer to a question from Boudrey, Reagan stated we do not need
the letter to have the DROP Plan. The reason we need a letter is
because the Personnel Director said we need one.
Doss stated the Pension Relief Board recommends that fire
departments in Arkansas have letters of determination.
•
January 26, 1995
Reagan stated the letter of determination has nothing to do with
the DROP Plan.
Reagan stated getting a letter of determination is very expensive.
possibly $2,500 up front. There are two areas in the plan that we
could be penalized on. There are members who are drawing more than
their retirement salary.
Doss question whether the City Attorney thinks a letter is
necessary.
Reagan stated the plan is either in compliance or it's not. The
tax attorney can give us his opinion.
Judy asked if the plan is not in compliance, what has to happen to.
get in compliance?
Reagan stated we would have to notify the IRS and ask them for a
letter of determination on the fund. The IRS would review the
books since 1921.
Doss stated the people who are drawing more than their retirement
salary could be affected.
In answer to a question from Judy, Reagan stated the fire fighters
are trying to get legislation passed on 415 and 457.
In answer to a question form Doss, Reagan stated the attorney could
not determine how many hours he would work.
Doss suggested finding out if the plan is in compliance and if a
letter of determination is necessary. He stated if we want to
think about the DROP, we need to have an actuary done to see if
that is going to effect it. negatively.
Reagan stated the actuary is not going to give any indication of
what it is going to do to the fund.
Reagan stated we have been asked not to get a letter of
determination because it will create problems for every old plan in
Arkansas. No other city has asked for a letter.
Boudrey stated the department should not request a letter until it
is a requirement.
Reagan asked if the Board wanted the tax attorney to give an
opinion. It will probably cost $500 to $600 minimum.
Reagan, seconded by Judy, made a motion to have Gregory Jones
research to determine if the fund is in compliance with IRS
guidelines. The motion was approved by a vote of 5 to 1, with
Boudrey voting no.
•
January 26, 1995
NEW BUSINESS
PENSION AFFIDAVITS
Reagan stated it was time to send out pension affidavits.
Paul stated she would take care of it.
INVESTMENT REPORT
Curtis Williams, Merrill Lynch, distributed a asset allocation
summary and a summary of the portfolio performance as of December
31, 1994.
Williams stated 1994 was not the best year in the stock and bond
markets. It was one of the worst bond markets in U.S. history.
Williams reviewed figures in the distributed asset allocation
summary. He stated in the targeted allocation, we have a higher
cash position than we would normally keep. The second highest
performing investment in 1994 was cash. When the markets were
beginning to look bad, money was moved into three month bills, CDs,
and money market funds to protect the portfolio. The cash flow on
the fixed income fund was 7% this year.
Williams reviewed figures in the distributed portfolio performance.
He stated we did have a net gain in the stock fund for the year.
In the income account, we ended the year a little down on the fixed
income side. We outperformed the market because of the money that
was moved.
In answer to a question from Judy regarding 1995, Williams stated
things are still rough. When the Fed is raising interest rates, it
is bad for investments. Themarket is gong to remain unsettled as
long as there is any doubt about what the Fed is going to do with
interest rates. The yield curve is flat right now. That is an
indication that rates are peaking. Rates have depressed a number
of issues in this account so that they are undervalued. When rates
stop going up they will rebound. We need to see the indexes catch
up to the broad market averages. The latter half of 1995 should be
much better. The average bare market lasts 18 months.
In answer to a question from Reagan, Williams stated New Mexico is
a value manager. They did well in this market because this market
favored value stocks. The next cycle may not favor them as much.
We will watch closely for needed adjustments.
ADJOURNMENT
The meeting adjourned at 11:40 a.m.
,
' FIREMEN'S RELIEF AND PENSION FUND
MARCH 1995
TRACI PAUL, TREASURER
•THE FOLLOWING ARE THE OBLIGATIONS OF THE FIREMEN'S RELIEF FUND FOR THE
MONTH OF MARCH 1995. YOU ARE HEREBY INSTRUCTED TO ISSUE CHECKS TO THE
PAYEES, IN THE AMOUNTS SHOWN, AND FOR THE PURPOSE SO STATED.
EMP# NAME
43 BAIRD, RICHARD H.
1 BARNES, ELIZABETH
2 BLACKARD, PAUL
63 BOLAIN, ANN
44 BOUDREY, BETTY MRS.
45 BOUDREY, HOWARD
49 BOUDREY, JACK
4 CARL, FLOYD JR
5 CASELMAN, ARTHUR
57 CATE, ROY
6 CHRISTIE, ARNOLD
7 COLE EVERETT
8 COUNTS, WAYNE
61 DAVIS, BEULAH F.
10 DEARING, EMMA MRS.
11 FARRAR, ALONZO
38 FRALEY, JOSEPH G.
33 HARRIS, BILL C.
34 HARRIS, JAMES E.
47 JUDY, DARRELL
37 KING, ARNOLD D.
54 KING, ARVIL
12 LANE, HOPE MRS
13 LAYER, MERLIN
14 LEE, HAROLD
51 LEWIS, CHARLES
60 LEWIS, MARVIE
55 LEWIS, ROGER
40 LOGUE, PAUL D.
50 MASON, LARRY
39 MC ARTHUR, RONALD A.
35 MC CHRISTIAN, DWAYNE
15 MC WHORTER, CHARLES
29 MILLER, DONALD
42 MOORE, JAMES H.
17 MORRIS, WILKIE MRS.
16 MORRIS, WILLIAM H.
62 MORRISON, ELIENE
48 MULLENS, DENNIS W.
58 OSBURN, EDWARD
46 OSBURN, TROY
53 POAGE, LARRY
20 POLLY, GRACE A. MRS.
22 REED, JOE
30 SCHADER, EARVEL
41 SCHADER, TROY
23 SKELTON, BURL L.
24 SKELTON, LEE
56 SKELTON, ROY
36 SPRINGSTON; CARL
25 STOUT, ORVILLE
27 TUNE, MILDRED MRS.
GROSS FED. TAX ST. TAX NET
916.20 100.00
45.00
55.00
55.00
1,266.21 66.21
1,066.66
837.68 287.68
45.00
75.00
909.50
45.00
375.00 32.50
55.00
377.50
50.00
707.84
953.38 100.00
55.00
55.00
837.68
828.42 100 00
1,131.00 130.00
45.00
417.50
55.00
837.68
439.16
439.17
1,469.38 175.00
829.35 29 35
891 62 100.00
55.00 30.00
885.14 50.00
863.01 125.00
55.00
45.00
60.00
70.00
1,114.11
1,284.63 160.00
965.81 65.81
1,201.98 200.00
45.00
55.00
915.78
783.74 20.00
692.50 42.50
390.00
1,626.02 126.02
609.88
590.36 50.00
70.00
816.20
45.00
55.00
55.00
1,200.00
1,066.66
50.00 500.00
45.00
75.00
909.50
45.00
342.50
55.00
377 50
50.00
707.84
10.00 843.38
55.00
55.00
837.68
10.00 718.42
1,001.00
45.00
417.50
55.00
837 68
439.16
439.17
20.00 1,274.38
800.00
791.62
25.00
835.14
738.01
55.00
45.00
60.00
70.00
1,114.11
1,124.63
900.00
30.00 971.98
45.00
55.00
915.78
763.74
650.00
390.00
50.00 1,450.00
609.88
540.36
70.00
•
26 TUNE, JESS
28 WATTS, DONALD
59 WATTS, WAYNE
52 WRIGHT, RANDALL
70.00
400.00
921.17
877.68
96.17
150.00
70.00
400.00
825.00
727.68
30,812.74 2,236.24 170.00 28,406.50
WE, THE UNDERSIGNED, DO SOLEMNLY SWEAR THAT THE ABOVE OBLIGATIONS ARE
JUST AND CORRECT; THAT NO PART THEREOF HAS BEEN PREVIOUSLY PAID; THAT
THE PENSION PAYMENTS SO CHARGED ARE IN ACCORDANCE WITH THE ACTIONS OF
THE BOARD OF TRUSTEES OF THE FIREMEN'S RELIEF AND PENSION FUND; THAT
THE SERVICES OR SUPPLIES FURNISHED, AS THE CASE MAY BE, WERE ACTUALLY
RENDERED OR FURNISHED; AND THAT THE CHARGES MADE THEREFORE DO NOT
EXCEED THE AMOUNT ALLOWED BY LAW OR THE CUSTOMARY CHARGE FOR SIMILAR
SERVICES OR SUPPLIES.
SECRETARY CHAIRM' "iPRESI NT
ACKNOWLEDGEMENT
STATE OF ARKANSAS )
COUNTY OF WASHINGTON) )SS
• SWORN TO AND SUBSCRIBED BEFORE ME THIS2.? DAY OF VEPSD-4 * (, 1995.
•
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NM CAPITAL MANAGEMENT, INC. Page
CLIENT : FAYETTPP - CITY OF FAYETTEVILLE FIRE PENSION AND RELIEF FUND REPORTING PERIOD: 10/01/94 TO 12/31/94
MANAGER: NTSC
•
PORTFOLIO COMPOSITION STATEMENT OF CHANGES
MARKET - % OF PORTFOLIO MARKET VALUE AT 10/01/94:. $4,304,988.26
VALUE TOTAL
DEPOSITS 0.00
CASH AND EQUIVALENTS 8139,456.72 3.3 WITHDRAWALS (5,623.28)
EQUITIES 3,018,135.88 71.1 INCOME EARNED 41,133.50
GOV'T/CORP BONDS 1,067,784.50 25.2 CAPITAL APPRECIATION (96,796.40)
ACCRUED INCOME 18,324.98 0.4
TOTAL $4,243,702.08 100.0 PORTFOLIO MARKET VALUE AT 12/31/94:
$4,243,702.08
THE FOLLOWING RETURNS ARE SHOWN GROSS OF MANAGEMENT FEES:
CUMULATIVE ANNUALIZED
10/01/94 TO 12/31/94 YEAR -T0 -DATE PAST TWELVE MONTHS SINCE INCEPTION' SINCE INCEPTION
TOTAL PORTFOLIO -1.3%
1.3% 1.3%
65.9% 10.7%
CASH AND EQUIVALENTS 1.1% 4.1% 4.1% 27.9% 5.0%
EQUITIES -1.7% 3.2% 3.2% 79.8% 12.4%
GOV'T/CORP BONDS -0.3%-3.1% -3.1% 48.8% 8.3%
tRATIVE INDICES
.CED INDEX - I (60/35/5)
US T BILLS
S&P500 TOTAL. RETURN
GOVT/CORP INTERMEDIATE BOND
CONSUMER PRICE INDEX
0.4%
1.3%
-0.0%
-0.1%
0.2%
0.8%
4.2%
1.3%
-2.0%
2.7%
0.8%
4.2%
1.3%
-2.0%
2.7X
INVESTMENT EARNINGS (APPRECIATION i INCOME) SINCE INCEPTION DATE 01/18/90: 81,396,874.11
53.4%
28.6X
58.2%
43.0%
18.7%
NOTE: THE COMPARATIVE INDICES SHOW RETURNS FOR THE ENTIRE INDICATED PERIODS. THESE MAY NOT BE DIRECTLY COMPARABLE TO
YOUR RETURNS FOR SEPARATE SEGMENTS OF THE PORTFOLIO (CASH, EQUITIES, ETC) IF YOU D10 NOT OWN THE SEGMENT FOR
THE ENTIRE INDICATED PERIOD. THESE SEGMENT RETURNS ARE SUPPLEMENTAL INFORMATION TO THE TOTAL PORTFOLIO RETURN.
RECEIVED
Z- 23 -95
CITY CLERK'S OFFICE
8.9%
5.2%
9.6%
7.4%
3.5%
NM CAPITAL MANAGEMENT, INC.
DATE PRINTED: 02/15/95 P o r t f o l i o Overview APPRAISAL DATE: 02/13/95
ACCOUNT ID: FAYETTPP PRICING DATE: 02/13/95
NT NAME: CITY OF FAYETTEVILLE FIRE PENSION AND RELIEF FUND
DEFINE CODES- NNPXDDIN - BXXXXXTX - -
CURRENT ASSET CHANGE ACCRUED COST
VALUE MIX TARGET % TO TARGET YIELD INCOME BASIS
Cash and Equivalents 48,516 1.1% 5.0% 168,315 5.3% 0 48,516
Fixed Income 1,205,581 27.8% 30.0% 95,402 7.9% 24,671 1,184,022
Equities 3,082,513 71.1% 65.0% - -263,716 2.5% 11,391 2,820,799
TOTAL PORTFOLIO 4,336,610 100.0%
•
STOCK AVERAGES
36,062 4,053,337
FIXED INCOME AVERAGES PERFORMANCE
TO 02/13/95
EXCL TOTAL
CASH & EOUIV SINCE RETURN
P/E 206.79 YTM 7.54% 01/18/90 69.58%
BETA 0.00 DUR 3.48 12/31/94 2.19%
ERNGR 0.00% COUP 8.02% - 09/30/94 0.87%
DIVGR 0.00% MAT 4.05 12/31/94 - 2.19%
MDY (AAA ) 01/31/95 1.32%
S&P (AAA )
DATE PRINTED: 02/15/95
Cash and Equivalents
MONEY MARKET FUNDS
Fixed Income
GOVERNMENT ISSUES
Equities
COMMON STOCKS
ACCRUED INTEREST
ACCRUED DIVIDEND
TOTAL PORTFOLIO
•
NM CAPITAL MANAGEMENT, INC.
Portfolio Summary PRICING DATE: 02/13/95
DATE OF APPRAISAL: 02/15/95
FAYETTPP - CITY OF FAYETTEVILLE FIRE PENSION AND RELIEF FUND
ESTIMATED
MARKET % OF ANNUAL
VALUE PORTFOLIO INCOME YIELD
54,415.76
1,180,909.86
3,071,117.38
25,188.47
5,490.94
4,337,122.41
1.3
27.2
70.8
0.6
0.1
100.0
2,889
93,525
77,741
5.3
7.9
2.5
174,155 4.0
•
NM CAPITAL MANAGEMENT, INC.
DATE PRINTED: 02/15/95 Common Stock Summary PRICING DATE: 02/13/95
DATE OF APPRAISAL: 02/15/95
FAYETTPP - CITY OF FAYETTEVILLE FIRE PENSION AND RELIEF FUND
% OF % OF
MARKET COMMON TOTAL
COMMON STOCKS VALUE STOCKS PORTFOLIO
Capital Goods - Industrial
Capital Goods - Technology
Consumer Durables
Consumer Non -Durables
Energy
Finance
Basic Industry
Transportation
Utilities
TOTAL COMMON STOCK
152,625.00
521,950.00
393,887.50
988,551.88
78,000.00
224,250.00
383,537.50
227 825 00
100,490.50
3,071,117.38
5.0
17.0
12.8
32.2
2.5
7.3
12.5
7.4
3.3
3.5
12.0
9.1
22.8
1.8
5.2
8.8
5.3
2.3
100.0 70.8
!DATE PRINTED: 02/15/95
•
SHARES /
FACE VALUE
DESCRIPTION
NM CAPITAL MANAGEMENT, INC. - Page 1
Client Appraisal
FAYETTPP - CITY OF FAYETTEVILLE FIRE PENSION AND RELIEF FUND
Cash and Equivalents
MONEY MARKET FUNDS
54,415.76 MONEY MARKET FUND
320,000
100,000
100,000
100,000
300,000
250,000
5,500
3,500
2,300
• 3,100
2,500
4,000
2,300
3,400
7,800
5,300
7,685
7,200
9,500
4,200
7,200
6,400
2,300
7,000
7,375
•
Fixed Income
GOVERNMENT ISSUES
US TREAS 8.500% 05/15/97
FNMA 9.550% 09/10/97
FNMA 9.150% 04/10/98
US TREAS 5.250% 07/31/98
US TREAS 7.875% 11/15/99
US TREAS 7.500% 11/15/01
TOTAL GOVERNMENT ISSUES
Equities
COMMON STOCKS
Capital Goods - Industrial
HARNISCHFEGER INDUSTRY
Capital Goods - Technology
BOEING CO
DYNATECH CORP
PRECISION CASTPARTS CP
ROCKWELL INTL CORP
THIOKOL CORPORATION
UNIT
COST
TOTAL MARKET
COST PRICE
1.00 54,415.76
100.85
99.34
99.34
101.25
102.95
101.00
322,722.20
99,343.75
99,343.75
101,254.85
308,852.10
252,504.85
1,184,021:50
MARKET
VALUE
PRICING DATE: 02/13/95
DATE OF APPRAISAL: 02/15/95
% OF
% OF ASSET
PORTFOLIO CLASS
1.00 54,415.76
102.28
104.38
103.75
93.16
101.22
99.47
327,300.16
104,375.00
103,750.00
93,156.30
303,656.40
248,672.00
ESTIMATED
ANNUAL CUR
INCOME YLD
1.3 100.0 2,889 5.3
7.5 27.7 27,200 8.3
2.4 8.8 9,550 9.1
2.4 8.8 9,150 8.8
2.1 7.9 5,250 5.6
7.0 25.7 23,625 7.8
5.7 21.1 18,750 7.5
1,180,909.86 27.2 100.0 93,525 7.9
18.88 103;848.18 27.75 152,625.00
40.78
19.62
12.66
23.28
26.78
TOTAL Capital Goods - Technology
Consumer Durables
ARVIN INDS INC
BROWN GROUP INC
CROSS (A.T.) COMPANY
OUTBOARD MARINE CORP
TOTAL Consumer Durables
Consumer Non -Durables
ARCHER DANIELS MIDLAND
COORS ADOLPH
DELTA WOODSIDE
DOLE FOOD'CO INC
GIBSON GREETINGS INC
HANSON PLC SPONSORED ADR
MERCANTILE STORES
RUSS BERRIE & CO INC
RYKOFF-SEXTON INC
TOTAL Consumer Non -Durables
22.07
30.94
14.56
18.44
14.07
19.19
12.46
27.52
17.20
19.43
34.97
15.54
14.14
142,736.60
45,128.48
39,259.28
58,189.85
107,104.85
392,419.06
50,754.35
105,179.14
113,561.55
97,710.92
367,205.96
108,113.32
138,172.85
118,362.05
115,567.85
123,874.85
124,371.40
80,426.66
108,799.70
104,249.75
1,021,938.43
46.25
37.63
23.50
37.88
26.50
23.50
33.00
15.00
20.88
161,875.00
86,537.50
72,850.00
94,687.50
106,000.00
3.5 5.0 2,200 1.4
3.7 5.3 . 3,500 2.2.
2.0 . 2.8. 0 0.0
1.7 2.4 744 1.0
2.2 . 3.1 2,700 2.9
2.4 -3.5 2,720 2.6
521,950.00 12.0
54,050.00
112,200.00
117,000.00.
110,637.50
393,887.50
19.88 152,739.38
16.63 119,700.00
10.00 95,000.00
28.38 119,175.00
10.13 - 72,900.00
18.75 120,000.00
43.88 100,912.50
12.88 90,125.00
16.00 118,000.00
1:2
2.6
2.7
2.6
17.0 9,664 1.9
1.8
3.7
3.8
3.6
1,748 3.2
5,440 4.8
4,992 4.3
2,120 1.9
9.1 12.8 14,300 3.6
3.5
2.8
2.2
2.7
1.7
2.8
2.3
2.1
2.7
5.0 . 769..0.5
3.9 3,600 3.0
3.1 - 3,800 4.0
3.9 1,680 1.4
2.4 2,880 4.0
3.9 . 6,169 5.1
3.3 2,346 2.3
2.9 4,200 4.7
3.8 277 0.2
988,551.88 22.8 32.2 25,721 2.6
DATE PRINTED: 02/15/95
/ .
SHARES /
FACE VALUE
DESCRIPTION
Energy
16,000 PARKER DRILLING CO
NM CAPITAL MANAGEMENT, INC. Page 2
Client Appraisal
FAYETTPP - CITY OF FAYETTEVILLE FIRE PENSION AND RELIEF FUND
Finance
6,000 ALEXANDER 8 ALEXANDER
2,000 ST PAUL COS INC
11,800
6,700
6,300
TOTAL Finance
Basic Industry
CALGON CARBON CORP
GLATFELTER COMPANY
JAMES RIVER CORP VA
TOTAL Basic Industry
Transportation
7,800 AAR CORP
5,300 OVERSEAS SNIPHOLDING GROUP
• 3,322
•
TOTAL Transportation
Utilities
SPRINT CORP
TOTAL COMMON STOCKS
ACCRUED INTEREST
ACCRUcD DIVIDEND
TOTAL PORTFOLIO
UNIT
COST
6.06
TOTAL MARKET
COST PRICE
96,964.85
MARKET
VALUE
PRICING DATE: 02/13/95
DATE OF APPRAISAL: 02/15/95
% OF
OF ASSET
PORTFOLIO CLASS
4.88 78,000.00 1-8 2.5
14.35 86,104.85 21.50
38.15 76,295.05 47.63
11.70
18.15
20.98
162,399.90
138,046.70
121,583.70
132,147.40
391,777.80
13.32 103,899.25
19.19 101,716.70
205,615.95
10.38
16.88
23.50
ESTIMATED
ANNUAL. CUR
INCOME YLD
0 0.0
129,000.00 3.0 4.2 600 0.5
95,250.00 2.2 3.1 3,000 3.1
224,250.00 5.2 7.3 3,600 1.6
122,425.00
113,062.50
148,050.00
2.8 4.0 3,540 2.9
2.6 3.7 4,690 4.1
3.4 4.8 3,780 2.6
383 537 50 8.8 12.5 12,010 3.1
13.75 107,250.00 2.5 3.5 3,744 3.5
22.75. 120,575.00 2.8 3.9 3,180 2.6
23.67 78,627.85 30.25
2,820,797.98
4,059,235.24
227,825.00 5.3 7.4 6,924 3.0
100,490.50 2.3 3.3 3,322 3.3
3,071,117.38 70.8 100.0 77,741 2.5
25,188.47 0.6
5,490.94 0.1
4,337,122.41 100.0 100.0 174,155 4.0