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HomeMy WebLinkAbout1989-05-03 Minutes• • • MINUTES OF A MEETING OF THE POLICE PENSION BOARD A regular meeting of the Fayetteville Police Pension and Relief Fund Board of Trustees was held on Wednesday, May 3, 1989 in Room 313 of City Hall, at 113 West Mountain Street. PRESENT: Treasurer Scott Linebaugh, Secretary Eldon Roberts, Rick Hoyt, Jr., Jerry Friend, Dr. James Mashburn, and Hollis Spencer. Also present were City Clerk Suzanne McWethy and Mike Kirkland of Shearson -Lehman Brothers ABSENT: Chairman James Pennington CALL TO ORDER The meeting was called to order by Linebaugh at about 2:25 p.m. MINUTES It was moved by Hoyt, seconded by Roberts and unanimous to approve the minutes of the last meeting held on January 19, 1989. OLD BUSINESS TRANSFER OF ASSETS Dr. Mashburn asked about information that Board members were still receiving from Merrill Lynch. Linebaugh explained certain funds which were supposed to have been transferred from Merrill Lynch to A. G. Edwards were not transferred. He said after several months, this was discussed with Richard Yada of Merrill Lynch who said the funds would be transferred right away. Linebaugh said hopefully the transfer has now been made. Dr. Mashburn made a motion that the minutes should reflect the Board feels this is an outstanding item and something should be done to straighten it out. The motion was seconded by Friend and unanimous. Board members requested that Linebaugh notify them of the status of this item before the next quarterly meeting. CONTRIBUTION INCREASE Roberts asked for an update on the proposal Linebaugh and Pennington made to increase the City's contribution to the pension plan. Linebaugh said this had not been done yet but would be done. Hoyt remarked that funds were budgeted for the entire year, but commented that he was not sure the law had changed yet. Police Pension Board Minutes May 3, 1989 Page 2 RETIREMENT LIST Mashburn asked if the Board could receive, about list of retirees and the amount of benefits they said he had such a list and would provide it. NEW BUSINESS ELECTIONS once a year, a draw. Roberts Roberts noted that in May of this year terms would expire for himself, Rick Hoyt and Dr. Mashburn. It was noted that Dr. Mashburn had submitted the only application for appointment to his position. It was moved by Hoyt, seconded by Roberts and unanimous to accept Dr. Mashburn to the position. Suzanne McWethy asked Board members to notify her of the date for the pension board elections when it has been decided. SHEARSON LEHMAN REPORT Mike Kirkland notified the Board that because their assets exceeded $200,000, they were included on a preferred client list which has free checking ability, with unlimited checks, at no cost. Kirkland reported that, as of yesterday, the value of bonds in the account were close to $888,000, stocks valued $982,000 and cash $445,000.. He reported total value as of last night was $2,315,000. He said the March statement showed a balance of $2.264 million. Linebaugh asked if the Board could receive a scattergram on the performance of their money manager compared to the other money managers. Kirkland said he would try to get this information for the Board. Kirkland reported $56,000 of the assets was in the money market account, earning interest around 9%. Linebaugh reported a treasury bill in the amount of matured on April 27 and was transferred to Shearson reported another three treasury bills will need to be to Shearson when they mature. He told the Board no were presently invested locally. Roberts asked if the Board could be given a "bottom line figure" for the total account every so often. He said he thought it should $813,088.58 Lehman. He transferred other funds • • • Police Pension Board Minutes May 3, 1989 Page 3 be around $3.5 million. Linebaugh suggested the Board be sent a financial report with that information. Kirkland said right now Shearson only has about $2.37 million in-house but, probably next month, will have 99% of the fund in-house. FIXED INCOME MANAGERS Linebaugh, referring to the $813,000 to be invested, said he thought the Board decided to follow its investment plan, and said the Board looked at Liberty Capital as a fixed income money manager. He asked if anyone wanted to review a couple of other fixed income managers. Kirkland said he would like to introduce the Board to one or two more fixed income managers. Linebaugh asked the Board if they wanted to meet next month to review income managers. It was decided to schedule a special meeting for June 15, 1989 at 2:00 p.m. ADJOURNMENT The meeting adjourned at about 2:55 p.m.