Loading...
HomeMy WebLinkAbout1997-02-27 - Agendas - FinalFAYETTEVI LLE 0 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 • • 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 /cbp be: s1.12�a • •