HomeMy WebLinkAbout1997-02-27 - Agendas - FinalFAYETTEVI LLE
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THE CITY OF FAYETTEVILLE, ARKANSAS TRACI PAUL, CITY CLERK
TO: Firemen's Pension Board Members _.
FROM: Traci Paul, City Clerk/Treasurer 112
DATE: February 26, 1997
SUBJECT: Firemen's Pension Board Meeting
The next Firemen's Pension Board meeting is Thursday, Febraruy 27,
1997, at 11:00 a.m., in room 326 of City Hall. Attached, please
find a copy of the agenda for the upcoming meeting, the minutes
from the January 30 meeting, and the pension list for March, 1997.
Attachments
113 WEST MOUNTAIN 72701 501 575-8323
AGENDA
FIREMEN'S PENSION AND RELIEF BOARD
February 27, 1997
11:00 a.m.
City Hall Room 326
1. Approval of the minutes of January 30, 1997.
2. Approval of Pension List for March, 1997.
3. Investment Report, Merrill Lynch
4. Old Business
5. New Business
6 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 30, 1997, at 11:00 a.m., in room 326,
of the City Administration Building, 113 W. Mountain, Fayetteville,
Arkansas.
PRESENT: Mayor Fred Hanna, Pete Reagan, Marion Doss, Ron Wood,
Darrell Judy, Howard Boudrey, City Clerk/Treasurer Traci
Paul, City Attorney Jerry Rose and Administrative
Services Director Ben Mayes.
CALL TO ORDER
Mayor Hanna called the meeting to order.
MINUTES
Reagan, seconded by Doss, moved to approve the minutes of the
December 12, 1996 meeting. The motion passed unanimously.
PENSION. LIST
Paul reported one small change in Carl Springston's tax withholding
but that there was no change in the total figure.
Doss, seconded by Judy, moved to approve the February pension list.
The motion passed unanimously.
INVESTMENT REPORT
Curtis Williams, Merrill Lynch, distributed copies of the portfolio
performance as of December 31, 1996.
Williams stated there will be a more comprehensive report presented
to the Board in February. The report distributed is a recap of
what the three major accounts did for 1996.
Williams stated'1996 was a good year. It was a far better year
from the U.S. than was expected. We were not particularly
optimistic about having a great year for the U.S. markets this time
last year.
Referring to the performance report, Williams stated the Dow Jones
Industrial Average is up 29% and the S & P 500 is up 22%. That is
a big difference in those two indexes. They usually track each
other closer than that.
1
•
January 30, 1997
New Mexico Capital Management is up 11.37% and Keystone is up
17.91%. They lagged the averages. In the latter months of 1996,
the indexes were setting new records almost everyday. There is a
big trend now towards index funds. Index funds buy the index which
makes the index go up.
We have had two real good years back to back. If we have a third
year as strong as 1996, it will be the first time we have ever done
it. There is a wonderful environment for stocks out there right
now. We have low inflation, low interest rates, and an expanding
economy. Corporate earnings are growing. That is an environment
that is great for stocks.
Williams stated the market is paying up for stocks as if these
conditions are going to go on indefinitely. Certain changes could
have a very negative impact on the market. We know that things are
going to change sooner or later. We are cautious on the U.S.
markets. We want to set expectations lower than they have been the
last few years. We are not going to continue to compound at 20%.
We are going to have to have a cooling off period. Some type of
correction is due and would be healthy.
On the fixed income side, Long Term Treasury Bonds lost 1.21% for
the year. We had an uptick in interest rates and they are trending
up again. That would be one of the factors that could be negative
for the market next year. High Grade Corporate Bonds were up
1.61%. The Income Account was at 4.25%, outperforming both
indexes.
Williams explained that the U.S. market outperformed Japan and that
a more definitive report on the foreign investments will be
available at the next meeting.
Williams stated this year we would like to tone down the
expectations for the U.S. markets and at some point in the year
look at some type of a corrective phase. In that case the money
will have to go somewhere. If money comes out of our market, we
would expect the foreign markets to perform well and balance the
portfolio.
Williams concluded by stating 1996 was a great year.
The Board briefly discussed the portfolio performance report and
commented that they would be looking forward to a full report in
February.
2
•
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OLD BUSINESS
January 30, 1997
Proposed Benefit Increase
Mayor Hanna explained that the discussion on the proposed increase
was left on the table. Mayor Hanna expressed his concern about the
increase and stated he had several questions to ask.
Mayor Hanna expressed his concerned for the retired guys that were
making $300 to $600 per month. They have been given percentage
raises, and sometimes more, to get them up to where their
retirement is even half way decent. Some guys who are receiving
$400 per month have been given a 15% raise and some guys who are
receiving $1,400 per month have also been given a 15% raise. Mayor
Hanna explained that it does not seem fair.
Mayor Hanna stated some things have been done in the past to help
the retirement funds for fire and police. There was an increase in
the City's contribution. It was higher than the contribution given
to other City employees. Another one was the millage thing. At
the time those things were done it was to enable the police and
fire funds to stay at 50o retirement after 20 years. Are we
violating the public trust by increasing retirement to more than
50%7 The public might question something like this. Are we
leaving ourselves open to look bad or to lawsuits?
Mayor Hanna stated City Attorney Jerry Rose and Administrative
Services Director Ben Mayes are here to discuss these issues with
the Board. -
Mayor Hanna stated the Board needs to really think about these
things before passing an increase.
Mayor Hanna stated the investments have gone well. They always go
in cycles. We are going to get back to a period where they aren't
going so well. What happens when we get caught in a really bad
year?
Also, we don't want anybody to think we are doing something for one
class of City employees that we are not going to do or don't intend
to do or can't do for others.
Administrative Services Director Ben Mayes explained that the
situation is unique because it is a closed plan. Mayes stated
there will never be any other participants coming in. Your numbers
are only reducing. As the numbers get smaller, the amount of money
continues to increase. The Board needs to consider what is
reasonable and fair overall to the taxpayers, firefighters, and
everyone when making a decision. Mayes explained there are several
ways the closed plan receives income. Mayes stated income comes
3
•
January 30, 1997
through investment earnings, State insurance turnback money,
employer and employee contributions, and the millage. Someone
needs to decide how long to continue to put a millage in. All the
others are going down as the number of participants go down. But
the millage just stays there regardless of how theparticipants
shift from this plan to the State plan. The way the retirement
plan works, 50% of a person's salary, is normal compared to many
other retirement plans.. Mayes stated a person in the State plan
would have to have 32 1/2 years of service at age 65 to get to 65%
of salary for retirement. Mayes asked do we wait until you all get
at 100% or more of your retirement salary before we start looking
at taking the millage and using it for some other purpose. It is
just a consideration that needs to be looked at. A retirement of
50% of salary seems to be normal. There are only two things that
anybody else decides on besides the Fire Pension Board, the millage
and the contribution level. The contribution level could be
reduced back from 12% to 6%. The millage brings in about $220,000
per year. Someone needs to look at this issue at some point in
time.
Mayor Hanna explained that the number of recipients of the
retirement will decrease over the years, investments could keep
going well, and income from taxes will continue to come in. He
stated somewhere along the line we are going to reach a point where
there are only a few people left drawing. What happens if there is
several million dollars left in the fund when the last person is
gone?
City Attorney Jerry Rose stated even though there was one
individual, a Board would still be in existence and should that
Board agree to give that as a benefit and it did not ruin the
actuarial soundness of the plan that person would become your best
friend. You are running a retirement. What is the purpose of your
retirement? Is it to provide an equatable retirement for everyone
in the City or is everybody really on their own? The firemen have
been wise and prudent investors. You could say they should reap
the benefits of the advantages that came to them and the other
folks have their own opportunities and their retirement is their
business.
Rose explained that legally he had two guidances for the Board. He
stated the first is that there is not a doubt in his mind that as
long as the plan is actuarialy sound the Board may increase
benefits. The second is that he has no doubt that if the City, as
a matter of policy, wants to play with those amounts they may do
so. The most common way is the millage because it is the only one
that provides a reasonable amount of money. The employee
contribution is not all that much. Eventually, the State
Legislature may become involved if it does become a problem.
•
January 30, 1997
Mayor Hanna stated the millage was passed to help all the firemen
and all the policemen that had retired since we had a semi-
retirement. Mayor Hanna expressed his concern that the people that
retired 15 to 20 years ago are getting the short end of the stick.
He stated some of them are making $500 per month. He explained his
feelings that the intention of the whole thing was the 500
retirement. Mayor Hanna stated the Board should 'look at equalizing
retirement pays before an increase is given.
Marion Doss expressed his concern about some retired firemen and
widows receiving the lower amounts each month. He stated he hoped
the Board could do something to give everyone an increase.
Mayor Hanna stated the millage has increased so much in the last
ten years. It was originally passed to insure the retirement
benefits for everybody who has been a fireman.
Pete Reagan asked if the Police Pension Fund gets a percentage of
the tickets written.
Mayes explained that he was not sure but could find out.
Mayes stated the way the new plan works is that they do a
calculation at the State level which determines the need for a
certain amount to keep the plan actuarialy sound. They just tell
you how much they need and a check is written. The employer still
does the contribution side of it but amounts are not identified by
'a specific source.
In answer to a question from Reagan, Mayes stated the City is
paying less than 12% on its LOPFI employees.
Reagan stated the LOPFI fund for the whole state is 141% funded.
In answer to another question from Reagan, Mayes stated the police
and fire are each assigned a half mil. Reagan stated the State
gives the option to go up to one mil by referendum.
Reagan stated the LOPFI plan has a cost of living increase built
in. This plan does not have that kind of an increase built in.
That is the reason for the benefit increase. Reagan stated the
guys who retired a long time ago have been given more than a 100%
increase. Reagan explained that the increase will be given to
those who are not receiving over a certain percentage. That was a'
long time ago and we have discussed addressing that problem but
there is going to have to be a minimum dollar amount set on those.
Those who are not getting an increase this time have been receiving
increases. The first was in 1983; the second was in 1984; and the
third was in 1986. The increases were possible because the Board
took good care of the fund.
January 30, 1997
Reagan stated he would like to see the income sources of the
millage and the City's contribution left as they are. That is a
good source of revenue for the fund.
Reagan commented that when the fund first went under management
with .Merrill Lynch,'we had just given the pay raise in 1984.
Merrill Lynch asked us not to grant any more benefit increases for
8 to 10 years until they could build the fund. That has affected
the guys who have retired in that time. They dust happened to
retire during that time and they have not had a benefit increase.
Mayes stated the State statutes only address the down side. It
says what happens if you don't make it. There is nothing that
addresses the success story.
Reagan pointed out that fire pension funds in Rogers and Springdale
have already increased their retirements to 65% and over.
Mayor Hanna expressed' concern that the State may step in and use
some of the excess money in the fund in the future as the
participants decrease.
Reagan stated a new Federal law passed in the last legislative
session which states the money in the pension fund can only be used
for the benefits of that plan.
Rose stated there are two different philosophies. One philosophy
says let's set a fair retirement of 50%, 60% or whatever it might
be and we will find money to fund that retirement. First you
determine what is fair then you figure out how to fund it. The
other philosophy says give us what you think is fair to contribute,
City, (the millage, the participation from the insurance, and the
participation from the contribution) and let us work with it. We
will set our own retirement once we get that money. -
Mayes asked if State statute limits what you can do for the
existing retirees.
Reagan stated the cap was 100%. Now we can go over 1.00% as long as
the plan is.actuarialy sound.
In answer to a question from Mayes, Reagan agreed that the Board
could grant a 3% benefit increase in a year for existing retirees
to cover an increase in inflation. He stated there would have to
be an actuary study.
Reagan stated the Board does need to address the question of what
happens to the fund when we are all gone.
•
•
January 30, 1997
Reagan made a motion to grant the benefit increase per the
resolution passed by the Board on July 25, 1996 and make it
retroactive to January 1, 1997. Boudrey seconded the motion. The
motion passed unanimously.
Pension Affidavits
Paul reported she has received all pension affidavits
Floyd Carl, Roger Lewis, and Dewain McChristian.
In answer to a question from Paul, Mayor Hanna stated he
that Floyd Carl is house bound.
Paul stated she would contact the retirees and ask them to return
their affidavits by February 15. If they do not return their forms
by that date, their pension checks will not be mailed out. If
Floyd Carl needs help, we can work with him.
Judy stated he could go by Carl's house and get his signature.
NEW BUSINESS
Roger and Marvie Lewis
except for
understood
•The Board briefly discussed the situation of Roger and Marvie
.Lewis.
Mayor Hanna stated the issue should be reviewed and investigated by
Roger Lewis and his attorney.
The Board discussed their uncomfortable feelings about having to
pay Marvie Lewis half of Roger Lewis' retirement as stated in the
divorce decree. They expressed their feelings that the City should
not be paying Ms. Lewis, Roger Lewis should be responsible for
that.
Mayor Hanna suggested that Roger Lewis could bring all the
information down and sit down with the City Attorney and tell the
City Attorney that he thinks that is illegal for them to do. Let
Jerry Rose make that decision on behalf of the City that is his. job.
In answer to a question from Doss, Mayor Hanna explained that the
City Attorney should address any questions about the City doing
something illegal.
There being no further business, the meeting adjourned at 12:05
p.m.
7
FIREMEN'S RELIEF AND PENSION FUND
MARCH 1997
TRACI PAUL, TREASURER
THE FOLLOWING ARE THE OBLIGATIONS OF THE FIREMEN'S RELIEF FUND FOR THE
MONTH OF MARCH 1997. YOU ARE HEREBY INSTRUCTED TO ISSUE CHECKS TO THE
PAYEES, IN THE AMOUNTS SHOWN, AND FOR THE PURPOSE SO STATED.
EMP# NAME GROSS FED. TAX ST. TAX NET
43 BAIRD, RICHARD H.
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
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.
64 JORDAN, CHARLIE
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.
26 TUNE, BILLIE SUE
916.20
55.00
55.00
1,266.21
1,066.66
837.68
50.00
75.00
909.50
50.00
55.00
377.50
50.00
707.84
953.38
55.00
55.00
1,192.17
837 68
828.42
1,131.00
50.00
417.50
55.00
837.68
439.16
439.17
1,469.38
829.35
891.62
55.00
885.14
863.01
55.00
50.00
65.00
70.00
1,114.11
1,284.63
965.81
1,201.98
50.00
55.00
915.78
783 74
692.50
390.00
1,626.02
609.88
590 36
70.00
70.00
100 CO 816.20
55.00
55.00
180.00 1,086.21
1,066.66
287.68 50.00 500.00
50.00
75.00
909 50
50.00
55.00
377.50
50.00
707.84
100.00 10.00 843.38
55.00
55.00
1,192.17
837.68
100.00 10.00 718.42
130.00 1,001.00
50.00
417.50
55.00
837.68
439.16
439.17
175.00 20.00 1,274.38
29.35 800.00
100.00 791.62
30.00 25.00
50.00 835.14
125.00 - 738.01
55.00
50.00
65.00
70.00
1,114.11
160.00 1,124.63
65.81 900 00
200.00 30.00 971.98
50.00
55.00
915.78
20.00 763.74
42.50 650.00
390.00
126.02 50.00 1,450.00
50.00 9.88 550.00
50.00 540.36
70.00
70.00
5-
•
28 WATTS, DONALD
59 WATTS, WAYNE
52 WRIGHT, RANDALL
400 00
921.17
877 68
96.17
150.00
400.00
825.00
727.68
31,614.91 2,367.53 179.88 29,067.50
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.
(I Ll t_4; ` .! K
SECRETARY CHAIRMAN A a ' RESID NT
ACKNOWLEDGEMENT
STATE OF ARKANSAS )
COUNTY OF WASHINGTON) )SS
• SWORN TO AND SUBSCRIBED BEFORE ME THIS3rd DAY OF March , 1997.
.2.e,t.[ LAV Wie.4 'L tnuuuunuy,
NOTAR UBLIC .```a�iE L ti 1/41
MY COMMISSION EXPIRES: 3 -/-.ZOOS' $ •;`o" E,t:;•% 4i
• $OTA R y
z: �.e ;c_
1:�/ > : J_ t.....: PQM`:
�
'`'i,��
COONCk..%``.
FAYETTEVILLE FIRE DEPT PENSION AND RELIEF FUND
PORTFOLIO PERFORMANCE 12/31/96 TO 01/31/97
NM CAPITAL MANAGEMENT
INCOME ACCOUNT
KEYSTONE ASSET MGNT
3 - MONTHS TREASURY PILLS
DJIA W/DIV REINVESTED
S R P 500 W/DIV REINVEST
LONG TERM TREASURY BONDS
H IGH GRADE CORP BONDS
CPI
NM CAPITAL (time wtd)
INCOME ACCOUNT
KEYSTONE ASSET MGNT
12/31/96
$3/987,776
4,518,042
1,201,845
12/31/95
+ 5.46
+35.53
+34. 94
+27.63
+23.51
+ 2.67
+ 15.68
+ 15.61
01/31/97
$4,0301512
4,501,225
1, 651038
12/31/96 01/31/97
+ 5.31
+29. 49
+22. 98
- 1.21
+ 1.61
+ 3.32
+ 11.37
+ 4.25
+ 17.91
+ 0.40
+ 5.85
+ 6.31
- 0.72
- 0.41
+ 1.07
- 0.37
+ 5.25
•
er
RESOLUTION
A RESOLUTION OF THE FIREMEN'S PENSION AND RELIEF BOARD OF
TRUSTEES INCREASING THE BASE BENEFIT FOR RETIRED FIREFIGHTERS TO
65% OF FINAL SALARY.
WHEREAS, the Firemen's Pension and Relief Fund for the Fire
Department of the City of Fayetteville, Arkansas (hereinafter
referred to as the "Fund") if governed by a Board of Trustees
which, among other things, is empowered to increase benefits paid
to retired members and beneficiaries of the Fund pursuant to
A.C.A. 24-11-102, 24-11-802, and 24-11-803;
WHEREAS, it has been determined by'said Board of trustees that it
is imperative to increase base benefits for present and future
paid retired firefighters who are retired from the Fayetteville
Fire Department, or their surviving spouses, to increase their
standard of living to keep pace with the increased cost of
living, and to show the Department's sincere appreciation for the
services they performed for the City of Fayetteville during their
careers as firefighters; and
WHEREAS, it is expressly determined by the Board of Trustees that
•
it is consistent with their goals to be able to periodically
increase benefits paid to members and beneficiaries should it be
determined by said Board that benefits currently paid are not
insufficient to the needs of the members and beneficiaries and
that the Fund's actuarial soundness will not be detrimentally
effected by said proposed increased benefits; and
•
WHEREAS, the Board of Trustees has further determined that their
proposed increase in base benefits shall be in addition to any
other benefits that would accrue due to each retiree's time in
service and/or any other benefit increases previously granted by
the Board of Trustees, and shall be the only such increase in
benefit unless and until further proper action is taken by the
board to cause other such increases to any member or beneficiary,
and that the increases proposed herein shall affect only present
andfuture paid firefighters who are retired, and only in the
amounts herein stated; and
WHEREAS, the proposed increases in benefits shall be made in
strict accordance with the provisions of A.C.A. 24-11-102 and
shall be conditioned upon the positive results of actuarial
evaluations performed in accordance therewith; and
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF TRUSTEES FOR THE
FAYETTEVILLE FIREMEN'S PENSION AND RELIEF FUND:
•
Page 2
Pension
Section 1. That the benefits paid from the Firemen's Relief
and Pension Fund to present and future retired, full time,
firefighters or their surviving spouses shall be increased to a
base rate of sixty-five percent (65%) of the firefighters final
base salary on the day of retirement from the Fayetteville Fire
Department.
Section 2. That widows benefits would be increased for
volunteer firefightersthe same as their spouses benefits.
Section 3. That volunteer firefighters minimum be raised to a
minimum of $55.00 for twenty (20) years service.
Section 4. That the actuary computed the proposed benefit
increases using the cash flow valuation method. If it is
determined the fund cannot withstand the proposed 65% increase,
we ask the actuary to figure using a 60% increase.
CHAIRMAN
CITY CLERK
ASSISTANT CHIEF
ACTIVE MEMBER
ACTIVE MEMBER
te's7ci< g ,
RETIRED MEMBER do 211
RETIRED MEMBER U1
PAST AND APPROVED THIS DAY OF JULY 25, 1996.
Osborn, Carreiro & Associates, Inc.
•
ACTUARIES • CONSULTANTS • ANALYSTS
December 20, 1996
Mrs. Cathyrn Hinshaw, Executive Director
Arkansas Fire and Police Pension Review Board
One Union National Plaza, Suite 940
124 West Capitol Avenue
Little Rock, AR 72201
RE• 1995 DROP Interest Rate Certification
Fayetteville Firefighters Pension Fund
Dear Cathyrn.
One Union National Plaza,Sulte 1690
124 West Capitol Avenue
Little Rock, Arkansas 72201
(501)376-8043
The Deferred Retirement Option Plan (DROP) was established by Act 757 and Act 1004 of 1993.
These acts state that the interest rate credited to the DROP accounts would be certified by the
actuary for the pension funds. This letter will certify the interest rate as described in the law to be
credited for the year 1995.
Pension Fund Fayetteville Firefighters
1. Net Investment Income Rate 13.4 %
2. Less 2.0% - 2.0 %
3. Preliminary DROP Rate 11.4 %
4. Actuarial Valuation Rate 6.0 %
5. Certified DROP Interest Rate 11.4 0/6
Greater of (3) or (4)
The above rate is certified to be the rate to be credited to DROP accounts in 1995. The Net
Investment Income Rate was based on the financial reports provided by the Arkansas Fire and
Police Pension Review Board These reports were not audited, but were reviewed for
reasonableness and completeness.
If you have any questions or comments, please let me know.
Sincerely,
l
ody`Carreiro, A.S.A., M.A.A.A.
Associate Actuary
FAYETTEVILLE
•
•
THE CITY OF FAYETTEVILLE, ARKANSAS
February 12, 1997
Mayor Amold D. Feller
Chairman, Pension 81 Relief Board
P.O. Box 448
Mulberry, AR 72947
alegto
Dear Mayor. -Fele:
As mayor, I am Chairman of the Fayetteville Fire Department's Pension and Relief
Board. I have reviewed, at the request of the Fund trustees, the recent delay in receiving
their insurance tumback monies. I concur with the trustees' decision that their fiduciary
responsibilities require them to seek to recover the interest lost CO the Fund as a result of
the tardy payment.
It is my understanding that interest on $235,798.64 at the rate of 4.8% for the
delay of 89 days would amount to $2,763.74. It appears reasonable to me, that the
Fund should be paid for any lost investment eamings.
Mayor Feller, I would greatly appreciate any assistance you could provide to help
resolve this matter.
If we can provide you with any further information or documentation, please feel
free to contact me. Thank you in advance for your efforts.
Sincerely,
red Hanna
Mayor
Idb
3C '. RTE tSEA4 Ar)
113 WEST MOUNTAIN 72701 501 521-7700
FAX 601.5762267
•
FAYETTEVILLE
JERRY E. ROSE, CITY ATTORNEY
LM AYLE D. McCARTY, ASSISTANT CITY ATTORNEY
THE QTY OF FAYETTEVILLE, ARKANSAS
CITY ATTORNEY DIVISION
113 WEST MOUNTAIN, 72701
PHONE 601-66768313
FAX 6016768316
February 12, 1997
Mayor Arnold D. Feller
Chairman, Pension & Relief Board
P.O. Box 448
Mulberry, AR 72947
Dear Mayor Feller:
As city attorney I represent the Fayetteville Fire Department's
Pension and Relief Fund. I have reviewed, at the request of the
Fund trustees, the recent delay in receiving their insurance
turnback monies. I concur with the trustees decision that their
fiduciary responsibilities require them to seek to recover the
interest lost to the Fund as a result of the tardy payment.
It is my understanding that interest on $235,798.64 at the rate of
4.8% for the delay of 89 days would amount to $2,763.74. I will
assist the Fund trustees to utilize all legal means to recover
these monies. Obviously it would benefit everyone if some
amicable accord could be reached without the necessity for legal
action. Any assistance you may provide in this regard would be
greatly appreciated.
If we can provide you with any further information or
documentation, please feel free to contact me. Thank you for your
efforts to resolve this matter.
Very truly'yo
Jerry E. Rose
City Attorney
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