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HomeMy WebLinkAbout2000-10-26 - Agendas - Final• FIRE PENSION AND RELIEF FUND • AGENDA OCTOBER 26, 2000 A meeting of the Fire Pension and Relief Fund Board will be held on October 26, 2000 at 11:00 a.m. in Room 326 of the City Administration Building. 1. Approval of Minutes 2. Approval of Pension List 3. Old Business • a. _ Wayne Watts 4.. Investment Report 5. .1999 Actuarial Valuation 6. Other Business • • • MINUTES OF A MEETING OF THE FIRE PENSION AND RELIEF FUND BOARD SEPTEMBER 28, 2000 A meeting of the Fayetteville Fire Pension and Relief Board was held on September 28, 2000 at 11:00 a.m. in Room 326 of the City Administration Building located at 113 West Mountain Street, Fayetteville, Arkansas. Board Members Present: Pete Reagan, Marion Doss, Mayor Hanna, City Clerk Heather Woodruff, and Mr. Richard Yada, Merrill Lynch representative. John Dill, absent. APPROVAL OF THE MINUTES Mr. Pete Reagan moved to approve the minutes. Mr. Marion Doss seconded the motion. Upon roll call the motion carried unanimously. PENSION LIST Mayor Hanna asked if there were any more changes besides Darrell Judy being replaced with Jan Judy. Mr. Reagan suggested they make a note of Darrell Judy passing away on September 24, 2000. Marilyn Cramer, Accounting Manager, said that was the reason for her being at the meeting. She did not have a copy of that pension list with the changes on it. She just learned yesterday at a recent pension board meeting there was an approval to allot a portion of Samuel Watts' pension benefits to Jeanne Watts and all of the other allocations that the pension benefits before have all been because of a court order or a qualified divorce order. The information we have received so far in payroll to do this is that we don't have a court order supporting it. We have the approval of this Board to do it but I don't know that this Board has any legal backup to support that There is a letter from the attorney who said he was the attorney for Mr Watts. We don't have anything from Mr. Watts. We don't have anything showing a power of attorney from either the attorney or from Mr. Watt's sister. So I guess I've got a couple of concerns. One is that, we don't have backup, legal backup to do this. I guess the Board would have the right to do whatever they want me to do. I think you need a legal decision on that. But the other thing, if this is not a court order to have a portion of the pension benefits allocated to an ex-spouse. I believe this is just like any kind of a voluntary withholding. The entire benefit would be taxed to the pension recipient and then we would show that it was a withholding. Now what that does in my estimation is kind of opening a can of worms. Then next, I mean where do you cut it off. The next pensioner may say, I travel a lot, can you just write a check to my bank for my • mortgage payment each month. Withhold that and write a check. The next one says, I have an outstanding balance with MasterCard, can you send $200.00 a month as a payment to MasterCard as voluntary withholdings and so that then becomes a lot more time consuming, a lot more records to keep track of and I believe we need to think about that also to whether that is what you want to be doing, taking voluntary withholdings from the pensioners. At this point we can do it and we can separate it the way it is shown on this list based on your approval of the minutes, but there may be some legal recourse from these or someone else coming back and saying, I never gave authorization for anything to be withheld from my pension. Mayor Hanna said he did not realize this when we discussed this at the last meeting. I don't guess any of us did As far as we know there is no court order or signed order from a guardian, or something like that. I think we probably would be better to vote to hold off on that pending a court order. We could have some liability from the pension fund. Mr. Reagan asked if he could shed some light on the situation. In the minutes under the Pension List, the fifth aragraph, we have Mr. Rose's legal opinion on that. In the past he has given us one on the Lewis and the Roy Skelton, where both of those went through a divorce and it a court order This one is a little different in that, once again, Darrell Judy brought this to us at our last meeting and asked us to do this This is his wife's brother and she is the caretaker of him because of his health and mental condition and both Darrell and Jan asked for this because of the problem they are having with the ex-wife. We went ahead and approved that at Darrell's request. There wasn't a court order that said any payment to her would come directly from the Pension Board to her. But I do understand now Marilyn's problem with the tax liability end of it. I do know the State Statute states that it has to be a, I guess a retiree of the system to receive the check. In the past Jerry's legal opinion was that a court order overrides a State Statute on that issue. He asked Marilyn Cramer if a check had been written to her yet. • Ms. Cramer answered again, this is the first month and she just happened to see the list regarding this question. She stated they do not have anything in their files that give them any legal basis to take part of his money to give to his ex-wife. If a divorce decree exists stating this, they need a copy. In answer to a question from Mayor Hanna, Mr. Reagan said that Wayne lives by himself on a property owned by Jan.and Darrell. He stated he was unsure what his disability is but he does know that Jan and Darrell are taking care of his legal affairs. Mr. Doss said they were up at the station about a month or two ago and it seemed like from talking to them that Wayne wanted them to take care of everything. I see what Marilyn is saying , and I kind of had that question when Heather first told me about that and I asked if it was a court order because I knew the others, with my understanding, were court orders. I was kind of concerned with that too. I guess if she hada copy of that divorce decree that sets that dollar amount, it might be one thing. I am sure that what he is doing is wanting them to pay his bills and stuff. That is what Darrell told him at one time. I think it is just more or less where they make sure she gets rt because that saves Jan having to do it or Wayne forgetting. • Ms Cramer said since we have no court order from them and if you still want to do it, we have • • • opened up the possibility for a lot of other voluntary withholdings from pension checks which get to be very time consuming. The other thing is that based on what we have, this letter from the attorney saying please do it or some information from Jan Judy asking us to do it. I think to protect the Pension Board we need a document that shows that they got called by the attorney to ask us to comply. Those were my concerns. Mr. Doss asked if a copy of the divorce decree was public record? Mr. Reagan answered, yes. Mr. Doss said if Heather could get a copy of the divorce decree, would that satisfy our immediate problem of liability? Would it state a dollar amount that she would be getting? Ms. Cramer answered, if it particularly states it comes from his pension check. If it just says that each month he pays her that, that to her does not say it comes out of the pension because it could come from any of his other assets. Mr. Reagan stated that he did not think the decree says that. I think the way to go is, and I hate to be creating more work for Jan at this point, but I think that if we had a power of attorney, would that work? Ms. Cramer answered if it showed that either the attorney who wrote the letter has the power of attorney or if she has the power of attorney to act on his behalf - but then that raises the question of voluntary withholding. This would be considered a voluntary withholding and the entire benefit would be passed to the former firefighter. Mr. Reagan asked Ms. Cramer on the other two, if she could recall from memory, Roy Skelton and Ro Lewis, are those taxed individually? Ms. Cramer answered they are taxed individually. We sent out the 1099 to the ex -firefighter and the 1099 to the ex-spouse because the divorce decree says that that income will never go to the firefighter. Pete Reagan asked if for tax reasons it would be better to have the court decree. Ms. Cramer said that had been her interpretation. Mr. Doss said in this case it looks like both of them should be taxed because if not, you are going to have to tax Wayne for that full amount and he is being taxed for money that he did not get. So she should be taxed. Ms Cramer said that it was the same sort of thing that if you get your paycheck, and you pay $100.00 to MasterCard, you are taxed on the whole thing. That's just plain old withholding. We make no distinction as to whether it is going to an ex-spouse to to any other creditor. • Mr. Reagan said he believed what they needed to do at this point is to approve the Pension List. They will combine Jeanne Watts and Wayne Watts together and pay it to Wayne until we are in receipt of a court order or power of attomey. Mayor Hanna asked Manon Doss if he would second that motion. Mr. Doss seconded that motion and it was approved. Mr. Reagan asked Ms. Cramer asked about the insurance premium turnback. Ms. Cramer said she would call the Pension Review Board and see if she could get some background on the computations. If she does not get any response from the telephone calls she will write a letter. Mr. Reagan suggested she go straight to the Insurance Commission. Ms. Cramer agreed to do that. INVESTMENT REPORT Mr. Richard Yada, Merrill Lynch was at a funeral in Little Rock. 1999 ACTUARIAL VALUATION Mayor Hanna stated that the 1999 Actuarial Valuation indicates that the Pension Fund is sound. He asked if anyone had any discussion about the report. Mr. Reagan questioned if a figure on Page 6 is the City contnbution. There was some discussion about this but no one had an answer. Ms. Woodruff said she would check with Ms. Cramer regarding this donation. TURNBACK Mr. Reagan said in regards to their insurance checks, he had spoken earlier with Ms. Cramer before the meeting and asked her to contact them and see how it was figured this year There has to be a reason for the premiums being down OTHER BUSINESS The Board discussed the replacement of Darrell Judy with an active member. Mr. Doss made a motion for Pete Reagan to fulfill Darrell Judy's term and to request a member from an active firefighter to replace Pete Reagan Motion was seconded by Pete Reagan. Motion was approved. Mayor Hanna made a motion to have a proclamation to Jan Judy for Darrell's service in the Fire Department. Motion was approved. Pete Reagan moved for the meeting to adjourn. 11:30 a.m. FAYETT 19I LLE iiiE CITY OF FAYETTEVILLE ARKANSAS DEPARTMENTAL CORRESPONDENCE ama-' 7055 To: All Members of the Firemen Pension Fund (Old Plan) From: Marion Doss, Assistant Fire Chief 2 Date: October 26, 2000 RE: Vacancy on Pension Board The Pension Board has a vacancy for a representative of active members (those still working, not on DROP.) This is due to Darrell Judy passing away. At the September 28 Pension Board Meeting, Pete Reagan was appointed by the board to finish Darrell's term. Due to the fact that Pete is now on DROP and the Attomey General has given an opinion stating those on DROP serve and vote as retirees he is not eligible. The eligible active members are: Danny Farrar Marshall Mahan Larry Phillips Glen Shackelford John Jenkins Ted O'Neal Joey Pierce Marion Doss (on Pension Board) If you wish to serve or nominate someone please let myself or one of the Pension Board Members know as soon as possible. Pension Board Members are: Ron Wood John Dill Pete Reagan Marion Doss Please try and select someone who will attend the meetings. Thank you. MD/ca • • nevrietti 19070 y ele pRBARKANSAS FIRE & POUCE PENSION REVIEW BOARD P.O. DRAWER 34164 Lnns Flocu, ARICANPAS 72203 Taicc (501) 682 -1745 Frac (501) 682 -1751 emelt ktfv®lopfiprb mn website: www.bpfpnccam 0: The Board of Trustees Fire Pension and Relief Fund of FAYETTEVILLE FROM: Arkansas Fire and Police Pension Review Board RE: 1999 Pension Fund Actuarial Valuation DATE: September 13, 2000 In accordance with State law, the actuary under contract to this office periodically tests all local fire and police pension funds for actuarial soundness. The 1999,actuarial study of your pension fund is attached. The financial tests for the pension fund are to answer the following questions: Is there enough annual income to the pension fund to fully fund it? (See page 4 of the actuary's report.) 2 Are there enough assets in the pension fund to cover all active member contributions, all payments to current retirees, and at least 8S% of future payments earned by active members (See page 11 of the actuary's report), OR are current assets sufficient to cover 94% of all accrued actuarial liabilities (See page 10 of the actuary's report). 3. Is this pension fund considered actuarially 'sound under State law? RFCF)1/ED SFP 9; 2000 c1 Y:c , c'F,ca Rcnf SEP 28 '00 11:19 YES z • • EXHIDIT 1 CONTRIBUTIONS The following contribution level reflects the payment of the current year Normal Cost for benefits attributable to said year (see Exhibit 2) plus an amount sufficient to pay off the Unfunded Actuarial Liability over a 8 -year period (5 -year period for any unfunded retiree liability). These costs DO NOT include the contributions due to the Local Police and Firefighters Retirement System ("LOPFT) for persons hired after 1982. 2000 Necrssary Annual Contribution to pay: 1 Normal Cost, plus 2 Pay off the Unfunded Actuarial Accrued Liability 3 Total necessary Less 4 Expected Employee Contribution (6.00% of salary. $12 per active volunteer) Necessary Employer Contribution (This is the amount needed in addition to investment income) Full Volunteer or Part -Paid otal 138,448 $ 0 $ 138,448 80,898 0 80,898 $ 219,346 $ 22,031 - 0 S 219,346 0 - 22,031 $ 197.315 $ 0 $ 197,315 Covered Payroll $ 367,188 N/A S 367,188 — Necessary Employer Rate 53.74% $ N/A 53.74% • These contributions assume that the dollar contribution grows at a rate of 4% per year. The contributions are assumed to be made continuously throughout the year. The actual 1999 contribution was S514,019 from the employer. Rcnf SEP 28 '00 11:20 4 PPGE.e2E Amos • Mem EXHIBIT 2 COSTS ANDLIABILITIES A Normal Cost (Cost to fund current active members) 1 Regular Retirement Benefits 2 Voluntary Termination Benefits 3 Survivors' Benefits 4 Disability Benefits TOTAL B Actuarial Accrued Liability 1 Active Lives Regular Retirement Benefits Voluntary Termination Benefits Survivors' Benefits Disability Benefits TOTAL ACTIVE LIVES 2 Deferred Retirement Option DROP Accounts Future DROP Payments & Pensions TOTAL DROP 3 Inactive Lives Retirees Disability Retirees Widows & Children TOTAL INACTIVE LIVES 4 TotalLiability C Asse D Unfunded Actuarial Accrued Liability Rcnf SEP 28 '00 11:20 5 December Dollar Amount S 128,798 3,100 3,096 3,454 138,448 $ 2,920,335 0 1,065 2,261 $ 2,923,661 $ 536,713 3,602,298 $ 4,139,011 4,750,833 622,995 504,343 $ 5,878,171 $ 12,940,843 $ 12,352,475 $ 588,368 31, 1999 Percent of pay 35.08% 0.84% 0.84% 0.94% 37.70% PRG=.008 EXHIBIT 3 SUMMARY OF FINANCIAL INFORMATION (Items D -E, and G determined by Osborn, Caneiro and Associates, Inc.) Year Ended Year Ended Yat Ended A. INCO 12/31/1997 12/31/1998 1231/1999 1Contributions • Employee S 44,797 S 48,397 S 45,668 Donations 0 300 1,792 Employer/Court Fines/Other 89,593 97,650 91,337 Insurance Tax 154,075 154,468 158,596 Local Millage 237,469 246,287 264,086 Adjustment to prior year 0 0 0 asset value 2 Net Investment Income 877,202 418,145 789,774 TOTAL INCOME S 1,403,136 5 965,247 S 1351,253 B EXPENSE$ 1 Admirustrative S 3,000 S 4,583 $ 3,000 2 Benefits 452,558 452,558 520,122 3 Refunds 0 0 0 TOTAL EXPENSES $ 455,558 S 457,141 S 523,122 6 Rcnf SEP 28 '00 11:20 PAGE.027 EXHIBIT 3 (Continued) C ASSETS (at book value) 12/31/1997 12/31/1998 12/31/1999 1 Cash & Checking Accounts 5 0 5 0 5 0 2 Bank Deposits 66,202 69,621 244,627 3 Savings and Loan Deposits 0 0 0 4 Other Cash Equivalents 650,784 1,735,365 1,013,861 5 US Govt. Securities 2,184,012 2,226,356 2,110,212 6 Non -US Govt Securities 0 0 0 7 Mortgages 0 0 0 8 Corporate Bonds 2,377,472 2,514,935 2,691,957 9 Common Stocks 5,401,209 4,605,621 5,932,541 10. Other 118,007 153,894 I40,725 1I Payables 0 0 0 TOTAL ASSETS $ 10,797,686 $ • 11,305,792 $ 12,133,923 D. RATIO OF ASSETS TO ANNUAL EXPENSES: 23.7 24.7 23.2 E NET TNVESTMENT RETURN• 8.9% 3.9% 7.0% (Book Value Basis) 7 Rcnf SEP 28 '00 11:22 PRGE.008 MIMME EIME • eh • • EXHIBIT 4 COMPARISON WITH PRIOR YEARS This exhibit compares current valuation results with those of prior years. Valuation Date 12/31/1982 12/31/1984 12/31/19E6 12/31/1987 12/31/1989 12/31/1991 12/31/1993 12/31/1995 12/31/1997 12/31/1999 Fu11 Paid Active Members Annual No. Payroll 50 45 37 • 38 27 23 22 21 17 10 s 4. 810 926 807,438 723,894 788,348 639,962. 585,898 620,116 676,847 608,602 367,188 Actuarial Computed Fniplover Contribution Percent Dopar of Pay Amount Total Plan Unfunded Actuarial Asses Liability 2.2 1% 179,271 2,202,969 27.7% 223,455 3,078,619 29.6% 213,935 4,006,484 31.3% 246,479 4,460,948 36.0% 230,328 5,189,846 33 3% 195,273 5,999,964 25.2% 156,484 7,271,255 25.6% 173,401 8,897,591 55.9% 339,974 10,797,686 53.7% 197,315 12,352,475 811,186 1,193,660 1,379,340 1,455,161 1,976,463 1,427,422 544,779 148,392 1,295,764 588,368 *Benefits or assumptions changed Note: Normal cost prior to 12/31/89 is net of 6% employee contributions. Valuation Dua 12/31/1982 12/31/1984 12/31/1986 12/31/1987 * 12/31/1989 12/31/1991 12/31/1993 12/31/1995 12/31/1997 • 12/31/1999 Rcnf SEP 28 '00 11:21 Part -Paid/ Volunteer Active Members 1 1 0 0 0 0 0 0 0 0 Actuarial Computed Employer Contribution 10 227 274 0 0 0 0 0 0 0 0 Normal Cost Funded Percent Percent 18.5% 22 1% 21.8% 23.4% 26.6% 25.5% 25.4% 29.8% 38.0% 37.7% 73.1% 72.1% 74.4% 75.4% 72.4% 80.8% 93.0% 98.4% 89.3% 95.5% PRGE.011 i • EXHIBIT 5 SHORT CONDITION TEST The Arkansas General Assembly has stated that the funding objective for these plans is to pay for benefits with contributions that remain level as a percentage of employee payroll. Thus, the long-term condition test is met when the actual contributions are fairly level and are paid when due. A short condition test can be used to measure a plan's progress Under the short condition test, the fund's assets are compared with: 1) Active member contributions; 2) The liabilities for future benefits to the present retirees and inactive members; 3) The liabilities for service already rendered by active members. If the plan has been following level cost funding, liability (1) and liability (2) above will almost always be fully covered by the rest of the present assets. In addition, liability (3) above will at least partially . funded. The larger the funded portion of liability (3), the stronger the condition of the fund.For a closed fund i.e., one like yours, where no new members are admitted), the funded portion of liability (3) should be steadily increasing. The following table illustrates the history of the short condition test for this plan: Valuation Date 12/31/1982 12/31/1984 12/31/1986 12/31/1987 12/31/1989 12/31/1991 12/31/1993 12/31/1995 12/31/1997 12/31/1999 Computed Actuarial Liabilities (1) Active Meinbers Contributions 160,669 236,541 263,129 308,829 274,405 292,477 353,89I 418,412 401,937 267,239 Rcnf SEP 28 '00 11:21 (2) Retirees, Inactives, and DROPS 898,272 1,464,696 2,753,772 2,754,276 4,560,672 5,072,169 5,005,131 5,101,995 7,315,705 10,017,182 (3) Actives - Employer Financed 1,955,214 2,571,042 2,368,923 2,853,004 2,331,232 2,062,740 2,457,012 3;525,576 4,375,808 2456,422 11 Valuation Assets Portion of Liabilities covered bvgssets (I) (2) (3) 2,202,969 100% 100% 59% 3,078,619 100% ' 100% 54% 4,006,484 100% 100% 42% 4,460,948 100% 100% 49% 5,189,846 100% 100% 15% 5,999,964 100% 100% 31% 7,271,255 100% 100% 78% 8,897,591 100% 100% 96% 10,797,686 100% 100% 70% 12,352,475 100% 100% 78% PRGE.012 0 LL W CCP• P O — a o • c, O 0' co • W U a0 Q 61 w cu • 0.4 44 0 a) yC ya ▪ ^ FM CM- - — V - V — Ki VJ ri i%• 1 7 ^ N r` rl r to ^ ri ri v1 N r; o oo x 0 G C C. In ttO In or(4 )n )n 7 7 — — N 7 r` r N � ooc in. — V 7 "Vaj' r0P 9H Income Account 0' T — . n — — = r IiO N N 6 t co T Y V M, 7 N O .' r` in r` — — .� oo rl N r: dJ M -� N - • ± 1 1 , vi N �.; oz N — 0 3CO 7 M N Q+ YJ r` n — r 3C :. ▪ t^. N V1 r` R — _ WIN '0 — J 7 en - - + = — — u 111) =o N r a _ ? rn JO M M 7 r` fX„ 0J _) M V) M — CG > p \ v1 N re) M - V) pi EA 'J li: el h. ++ + _ + + + i— J - YCF. v = J ri • N 7 — _.. — r = Merrill Lynch Investment Managers September 29, 2000 City Of Fayetteville Fire Pension & Relief Fund Attn: Ms. Heather Woodruff 113 West Mountain Street Fayetteville, AR 72701-6069 Dear Msi Woudruff: • RECER/E® OCT 10 2000 CITY OF Fr Yc ;i CITY CLERK'S OFFICE Merrill Lynch's extensive investment management capabilities have been brought together under one global brand, Merrill Lynch Investment Managers (MLIM). Within MLIM; Private Portfolio Group (PPG) is now known as MLIM Private Investors. This new universal brand identity will allow us to focus greater attention on our clients worldwide by operating our business more effectively as a single global organization. It exemplifies our ongoing commitment to building a world-class, globally integrated asset management organization that represents investment excellence, premier client service, and a breadth of innovative yet disciplined products. This name change will be reflected in all communications you receive from us effective September 30th. Simultaneously, as a point of information, MLIM Private Investors will be relocating its headquarters from 800 Scudders Mill Road, Plainsboro, NJ 08536, to 9 Roszel Road, Princeton, NJ 08540. This move will not affect our regional offices, and our phone numbers will remain the same. Please he assured that the integrity of our investment process, the quality and focus of our service, and our objective to assist with achieving your financial goals remain unchanged. We remain committed to the investment processes and products that have been the foundation of our business and fully anticipate a seamless transition to a universal global brand name and headquarters relocation. In addition, these changes will not impact the management of your account or day-to-day reporting arrangements. Your Financial Consultant is aware of these changes. Should you have any questions on this transition, or any other aspect of our business, please do not hesitate to canfactt me`: • 1 l000k=forwardtothe continuing success of our reiatarnship with you. Sincerely, 6. B�1� Tony D. Boykin Director Private Investors 800 Scudders Mill Road Plainsboro, New Jersey 08536 Mailing address: P.O. Box 9011 Princeton, New Jersey 08543-9011 t FAYETTEVI LLE THE CITY OF FAYETTEVILLE, ARKANSAS • DEPARTMENTAL CORRESPONDENCE • • To: Mayor Fred Hanna and Fire Pension B rd mers From: John Magui ��: 4.trative Services Director Subject: State Insurance Turn.ack Date: October 3, 2000 The City received $267,133.52 in State Insurance Turnback funds on September 28, 2000. The funds were divided between the Firemen's Pension and Relief Fund and LOPFI as follows: Plan participants: Firemen's Pension and Relief Fund LOPFI Total participants Funds received Active Retired Total 21 53 74 63 63 137 $267,133.52 divided by 137 = $1,949.8797 Firemen's Pension and Relief Fund $1,949.8797 x 74=$144,291.10 LOPFI $1,949.8797 x 63=$122,842.42 Total $267,133.52 The Firemen's Pension and Relief Fund portion of the funds are currently in the regular checking account. A cash flow projection indicates a balance of approximately $150,000.00 will be available for transfer to the money manager at the Pension Board's direction. Please discuss this at the October 26, 2000 Pension Board meeting. City of Fayetteville Fire Pension Fund Cash Flow Projection - City held funds only • 10/01/2000 - 01/31/2000 Cash on hand beginning of month 1FPcash October November December January 2000 2000 2000 2001 159,272 6,009 40,696 8,808 Receipts: Property Taxes 30,000 ' 108,000 1,500 1,500 Employee Contribution . 3,320 3,320 3,320 3,320 Employer Contribution 6,640 6,640 6,640 6,640 Interest -Checking 200 150 75 25 State Insurance Tumback Total Receipts 40,160 118,110 11,535 11,485 Total Cash Available 199,432 124,119 52,231 20,293 Expenditures: Pension payments (43,423) (43,423) (43,423) (43,423) Total Cash expended (43,423) (43,423) (43,423) (43,423) • Transfers (to)/from Money Manager (150,000) (40,000) 25,000 Cash balance end of month 6,009 40,696 8,808 1,870 • • Note: Does not take into consideration any potential retirements and/or pension withdrawals. • • October 3, 2000 ARKANSAS FIRE & POLICE PENSION REVIEW BOARD Dear Sir or Madam: RECEIVEL. OCT 0 5 2000 ACCTG. DEP' P.O. DRAWER 34164 LITTLE ROCK, ARKANSAS 72203 TELEPHONE: (501) 682 - 1745 FAX: (501) 682 - 1751 email: info@lopfi-prb.com website: www.lopii-prb.com The 82nd General Assembly of the state of Arkansas passed Acts 1570 and 1288 in 1999. These Acts provide for a new method of distributing the insurance premium tax turnback funds for the police and fire districts who provide pension coverage through LOPFI and/or a closed local plan. Distribution of the pension funds will now be based on a formula, which will use land area in square miles and total population. A component of this legislation designates the University of Arkansas at Little Rock (UALR) Geographic Information Systems (GIS) Laboratory to map the boundaries of the state's 253 fire and 141 police districts that provide pension coverage and to provide the land area and population totals for each district. Sarah Breshears, Phyllis Smith, and their staff from UALR will be contacting all participating districts to obtain the legal descriptions of the boundaries. The process might include a personal visit and a visual inventory or measurement of the boundaries. The law requires that a local official (mayor, police chief, fire chief, or county fire coordinator) certify the boundaries. Upon completion of this certification, you will receive maps depicting your district s boundaries. Please note that the law provided the funding to pay for this process, so there is no direct cost for this mapping to your depai lment. This legislation was written to correct inequities in the distribution of funds. We believe it is a worthwhile endeavor and the end result will be a more accurate allocation of insurance premium tax turnback funds. We encourage you to cooperate fully with the UALR researchers. Sincerely, Cathyrn Hinshaw, Executive Director Arkansas Fire and Police Pension Pension Review Board Richard Drilling, Arkansas Department of Finance & Administration RECEIVED OCT 0 6 2000 CITY OF FAYETTEVILLE CITY CLERK'S OFFICE