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
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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
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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.
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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
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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
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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
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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%
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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
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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
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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
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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
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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
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DEPARTMENTAL CORRESPONDENCE
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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