HomeMy WebLinkAbout2001-07-26 Minutes•
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MINUTES OF A MEETING
OF THE
FAYETTEVILLE FIRE PENSION AND RELIEF FUND BOARD
JULY 26, 2001
A meeting of the Fayetteville Fire Pension and Relief Fund Board was held on July 26, 2001 at
11:00 a m in Room 326 of the City Administration Building located at 113 West Mountain,
Fayetteville, Arkansas.
PRESENT: Robert Johnson, Pete Reagan, Danny Farrar, Assistant Fire Chief Marion Doss,
City Clerk Heather Woodruff, and Ted Webber, Admimstrative Services Director.
ABSENT: Ron Wood, Mayor. Dan Coody
MINUTES
Mr. Doss stated there was one correction that needed to be made correcting the sentence where
he stated he was going to call Ms. Hinshaw and ask to make the benefit retroactive. It needed to
read that they had already received the letter from Ms. Hinshaw stating that they could make the
benefit retroactive to January 5, 2001.
Mr. Reagan moved to approve the minutes. Mr. Farrar seconded the motion. Upon roll call the
motion earned unanimously.
PENSION LIST
Mr. Reagan moved to approve the pension list. Mr. Farrar seconded the motion. The motion
carried unanimously.
INVESTMENT REPORT
Mr. Yada stated the market was challenging. The Private Portfolio Group was at 2.3 million
dollars. They were down 10.57% this year. Mercury Group 1.8 million They were down
10.92% this year. Income Account was at 5.5 million. They were up 4.31%. They have had to
send $158,000 out of that account into the checking account. Ashland was down 11% this year.
The Dow Jones was down 1.85%. The S&P 500 was down 6.71%. The Nasdaq was down
12.55%. The market as a whole was down. Long Term Treasuries were down a little. High
Grade Corporate was up 5%. Asset allocation - Ashland currently had 17.87%, Private Portfolio
Group had 19.7%, Mercury had 15.3%, Income Account had 47.2%. 46.1% of the money was in
equities and stocks, 46.3% in fixed income 6.5% in cash, and 1.1% in other. Their asset
allocation was where they wanted it. To demonstrate what their asset allocation had done for
them, back in 1982 the Fire Department had 2.2 million dollars. The Police Department had 1.9
million dollars. By 1999 they had 12.3 million and the Police had 10.5 million dollars. In the
year 2000 they were down 2/10 of a percent. Their asset allocation had helped them during the
down the market.
Mr. Reagan asked Mr. Yada to address his thoughts on Ashland.
• Mr. Yada stated Ashland had taken over in 1996, during that tinie they were up 30-34%. During
the year 2000 they were down 20%. They had not changed their discipline. They were
continuing to do what they were doing. They were their growth manager. All growth managers
were going through the same problems. He would not give up on them yet. They would take a
hard look at them later. They have not changed their investment style.
Mr. Reagan stated when they first sat down and drew up a plan to invest the two million dollars
they sat out as a goal eighty percent of benefits by the year 2000. They have been able to surpass
that. He thought that was commendable on what their investment advisor had done for this
board.
OTHER BUSINESS
Mr. Ted Webber, Administrative Services Director, stated Act 1571 that was passed in 1999
established the current formula that was used in calculating Insurance Turnback monies. Those
calculations were based on two things, the fire district population and the fire district area. The
new basis for calculation was 50% on population, 40% square miles of area. In the prior law the
funding was based the dollar amount of fire insurance premium sold in a fire distract. The
Arkansas Review Board contracted with the Arkansas State Data Center to come up with the
numbers of square miles. To make any changes to this would require a change m State law. He
suggested coming up with a position and to make an appeal to the Pension Review Board and the
Legislature.
• Mr. Reagan stated he thought it would be appropriate to assemble a letter to the Pension Review
Board stating their displeasure with the new formula for calculating the turnback. He asked Ms.
Woodruff to get with him and compose a letter on behalf of the Pension Board.
Mr. Doss suggested that the board consider a benefit increase for volunteers.
The meeting adjourned at 11:30 a.m.
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