HomeMy WebLinkAbout2000-05-25 Minutes•
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MINUTES OF A MEETING
OF THE
FAYETTEVILLE FIRE PENSION AND RELIEF FUND BOARD
MAY 25, 2000
A regular meeting of the Fayetteville Fire Pension and Relief Fund Board was held on May 25,
2000 at 11:00 a.m. in Room 326 of the City Administration Building located at 113 West
Mountain Street, Fayetteville, Arkansas.
PRESENT: Mayor Hanna, Darrell Judy, Ron Wood, Pete Reagan, Marion Doss, John Maguire,
Richard Yada, and City Clerk Heather Woodruff.
ABSENT: John Dill.
APPROVAL OF THE MINUTES
Mr. Pete Reagan moved to approve the minutes. Mr. Darrell Judy seconded the motion. Upon
roll call the motion carred unanimously.
PENSION LIST
Mr. Reagan moved to approve the pension list. Mr. Ronnie Wood seconded the motion. Upon
roll call the motion carried unanimously.
INVESTMENT REPORT
Mr. Richard Yada, Merrill Lynch, presented the investment report. He stated April had not been
a good month. NASDAQ down 33% from its high for the year. Dow Jones was down 6% for
April S&P 500 was down 1% for the month. The Private Portfolio Group was up 4.52%. Some
of the bonds in the portfolio have come up in value even though interest rates have moved up.
When interest rates move up bonds were supposed to move down. Right now, the longer term
interest rates are lower than short term interest rates. Their long term bonds have come up in
value. Short terms have stayed flat. The bonds have helped them in the income portion of the
portfolio Income Account was up 1.5%. Ashland was down 5.84%. Interest rates would
probably be raised one more time in June by the Federal Reserve. He expected the stock market
to be up and down. The last two years the market had been down going into the summer and did
not make a move to the up side until September or October.
The total portfolio of more than twelve million dollars, the management fees and transactions'
fees were a little less than three-quarters of 1 %. The fees were less than what they could get in a
no-load index fund. Ashland was their major expense, because they had a lot of transactions.
There had been an excess of a 30% rate of return over the last three years.
• OTHER BUSINESS
Mayor Hanna stated Mr. Rose, City Attorney, had written a letter regarding death benefits and
asked if there were any questions
Mr. Reagan stated he had asked Mr. Rose for an opinion because a member of the fund had
asked him. The term "spouse" was not at the time of retirement, but at the time of "death" when
dealing with the widow benefit.
Mr. Reagan added they had asked Mr. Rose to look at the attendance policy of board members,
regarding Mr. Dill's position. He had spoken with Mr. Dill. It had been his opinion that because
of his employment situation that he was not on the board. Mr. Reagan stated he had informed
Mr. Dill that he was representing the retirees and he was still on the board. Mr. Dill stated he
would serve. Mr. Rose stated there was nothing in the statute and nothing he could find in board
policy that limited this. They could have a board policy on attendance, but as far as statutes or
city ordinances there was nothing that regulated attendance.
Mayor Hanna thought the board should have a policy.
In response to questions from Mr. Reagan, Ms. Woodruff stated they should have the election
results in by the next meeting.
• Meeting adjourned at 11:15 a.m.
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