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Home My WebLink About1990-02-15 Minutes• MINUTES OF A MEETING OF THE POLICE PENSION BOARD OF TRUSTEES A regular meeting of the Fayetteville Police Pension and Relief Fund Board of Trustees was held at 2:00 p.m. on Thursday, February 15, 1990, in Room 326 of City Hall, 113 West Mountain Street Fayetteville, Arkansas. PRESENT: Treasurer Scott Linebaugh, Secretary Eldon Roberts, members Hollis Spencer, and Rick Hoyt, Jr.; others present were City Clerk Sherry Thomas, Accounting Supervisor Ben Mayes, and Mike Kirkland of Shearson -Lehman Hutton. ABSENT: Jerry Friend and Dr. James Mashburn CALL TO ORDER The meeting was called to order by Linebaugh. MINUTES Motion was made by Hoyt, seconded by Roberts, to approve the minutes of the November 2 and November 17, 1989 meetings. The motion passed unanimously. OLD BUSINESS DISABILITY RETIREES Roberts stated that the Board has the option to require the people retired on medical disabilities to have an examination every 6 months. It has been six months since the last report. It was decided that Don Witte's twenty years would be up in a few months, so there is no need to get a report on him. The Board asked that a letter be sent to Frank Upton, Larry Purdue, Bobby Williams, and Mike Mitchell reminding them to provide the Board with the medical report. RETIREES ENTER LAW ENFORCEMENT JOBS Roberts stated he had heard rumors that there were some of the retirees going into a job that is closely related to law enforcement. One person will in essence be a law enforcement officer requiring certification from minimum standards in Little Rock. He is concerned about how the Board will appear when retiring a person on medical disability and then that person going back to work doing the same type of work. Linebaugh asked what the Board could do about this type of thing. Hoyt stated that the Board is caught in a difficult position in these matters. The retiree has convinced the Board's doctor and his own doctor that he should be placed on disability. If after the retiree goes to work elsewhere and the Board decides they are fit and require them to come back to work at the Police Department, • • there is no guarantee that the head of the department would take them back, so he does not know if the Pension Board has the power to force the department to rehire the medical retiree. Roberts stated the Board has the right to stop payment of benefits if at any time the person becomes able to go back into law enforcement. He stated the Quorum Court was requesting a new position of a Warrants Officer in the prosecuting attorney's office. Roberts stating serving warrants is a police function because of the possible physical contact that could occur. Hoyt stated he called Mike Mitchell on the day the meeting was held to decide on his retirement request. He stated that he was too ill to sit in a chair that long and did not attend the meeting. Now he is applying for the county job as warrant officer. Hoyt stated this was a slap in the face to the Pension Board. Linebaugh suggested that City Attorney Jerry Rose research the law on this and determine the Board's power regarding forcing the Police Department to return a retiree to active duty. Hoyt stated that the question also needed to be addressed regarding if a person was reinstated, at what rank and/or pay grade would that person be reinstated. Linebaugh stated that they would have to be rehired at the rank they were, and no one in the department can be displaced, rather this would become an additional person on staff. The Board asked that the information be distributed to them when Jerry Rose gets it prepared. NEW BUSINESS INVESTMENTS Mike Kirkland stated the cash account contains the emergency fund money and the $60,000 federal home loan bond purchased at Merrill Lynch. Linebaugh asked Mayes about how much money was maintained in the checking account that is used to cover the pension checks. Mayes stated the balanced was around $60,000 to $65,000. It was decided to maintain the checking account and transfer enough to cover the pension requirements once per month. Therefore, the computer checks and check writing system at the City can be maintained. The additional amount of money in the checking account will be transferred to the Shearson account which pays a higher rate of interest. Kirkland stated the Madison account now consists of 5 bonds and about $121,000 in cash. This account is down about 1% from when it was purchased. The Oppenheimer account was right at $2.5 million at year end. For the 10 month period they had the account in 1989, the account is up about 12.5%. In the first month of 1990, the account was down 4%. The market was down about 9%, so the account is holding better than the market. There is about 57% invested in bonds and 34% in the market. He stated Shearson likes the market and they feel that 1990 holds some good opportunities. He stated that if another $100,000 was invested with another equity manager, this would make the total equity exposure at about 35-37%, which is still far below the maximum allowed by the investment • • policy. He stated the manager, NWQ, has had an excellent equity performance over the past 3, 5, and 7 years, and they rank in the top 3 as far as lower volatility and higher return than the S&P. He stated he brought this idea up so the Board could think about it for future investment. He stated there was $189,000 cash in the Oppenheimer account. He stated NWQ normally keeps about 30% in cash, so the maximum in the equity market would be below the maximum allowed by the fund. The management fee would be 1.8% however because of the small size of the account. Linebaugh requested scattergrams and portfolios on the company for the pension board to review. The City still has $350,000 of the police pension fund invested in T-bills that come due in 1992 and 1993. Linebaugh requested that Kirkland determine if this money would earn more if the T-bills were sold and reinvested. Linebaugh stated that the City Board in the budget meetings approved to increase the city's contribution from 9 to 12% to the pension fund. TAX WITHHOLDINGS ON RETIREMENT CHECKS Roberts stated that Jerry Surles had talked with him about a problem he had with the state income tax department as no state income taxes were being withheld from his pension checks. Surles had talked with someone at the City to start having state taxes withheld, but was later informed that the City computer was not set up to handle the state deduction. Mayes advised that the software does not have enough options to allow the state tax to be withheld. He stated there was more to the story. Apparently, last year or the year before some federal retirees sued the state because they were not taxing the pension of state retirees and municipal retirees. Mayes stated the City had never reported the pension as taxable to the state. As a result of the lawsuit, state retirees had to start paying state income tax up to a certain limit. He called the state and asked if taxes should be reported to them. The state stated they did not know and recommended that we talk with our attorney. They would not give an opinion. They stated whether municipalities fell under the same ruling as the state was a totally different question. Legally they did not know if we should be withholding state income taxes. Mayes stated Jerry Rose was looking into this. Linebaugh asked if the question was whether this was taxable income by the state. Mayes stated apparently 1989 was the first year the state had taxed this type of income. Mayes stated the state informed him to file a copy of the W-2P's showing no deduction for state income tax with the state. They had done this. They are talking with CAMEO to see how they can adjust the software to allow for this type of deduction. ADJOURNMENT The meeting adjourned at 2:45 p.m. IVIIeA'�3_wt.; adz CITY OF FAYETTEVILLE DATED VALUE SHFARSON LEHMAN HUIMN An America Express corn any POLICE PENSION FUND ACCOUNT STATUS CASH ACCOUNT JANUARY 31, 1990 $ 108,972 60,506 MekRfc'- cyrOI $ 169,478 = Total 1061 Joyce Street Suite 5 P.O. Box 3478 Fayetteville, AR 72702 501 442 6260 800 544 5506 Ark. 800 346 3384 Nat'l DESCRIPTION CASH BONDS Member of all principal security, option, and commodity exchanges. • • • • • • • Michael A. Kirkland Financial Consultant SSSON �p LEHMAN BROTHERS M American Express company CITY OF FAYETTEVILLE POLICE PENSION FUND ACCOUNT STATUS MADISON INVESTMENT ADVISORS DATED JANUARY 31, 1990 VALUE $ 294,626 698,384 DESCRIPTION 1061 Joyce Street Suite 5 P.O. Box 3478 Fayetteville, AR 72702 501 442 6260 800 544 5506 AR 800 346 3384 Nat'l CASH BONDS Baf I 4 1 ra i -e l ' 'gorN n TIL c. Member of all principal security, option, and commodity exchanges. • • • • • SHEARSON LEHMAN HUITON An American Express company CITY OF FAYETTEVILLE POLICE PENSION FUND ACCOUNT STATUS OPPENHEIMER MANAGED ACCOUNT DATED JANUARY 31, 1990 VALUE $ 192,195 1,325,950 908,715 „rt. /2 � r -f- / Z- f7� DESCRIPTION CASH 914° STOCKS net 67e BONDS 32 y % 170 PI ikT�770 1061 Joyce Street Suite 5 P.O. Box 3478 Fayetteville, AR 72702 501 442 6260 800 544 5506 Ark. 800 346 3384 Nall Member of all principal security, option, and commodity exchanges. Michael A. Kirkland Financial Consultant 51(hcs(L. ntof- drg SHFA1RSON BROTHERS B RS An Ame ican Express company • CITY OF FAYETTEVILLE POLICE PENSION FUND ACCOUNT STATUS DATED JANUARY 31, 1990 (ALL ACCOUNTS COMBINED) VALUE DESCRIPTION PERCENTAGE OF PORTFOLIO $ 595,794 CASH 1,325,950 STOCKS 1,667,604 BONDS 16.6% 36.9% 46.5% /66 $3,589,348 = Total value of assets in accounts 644-02473, 644-02446, 644-02972 1061 Joyce Strel Suite 5 P.O. Box 3478 Fayetteville, AR 72702 501 442 6260 800 544 5506 AR 800 346 3384 Nat'l /1602, tea 2,13 t SCSI /66) 307S--- 3,71)S1 YS 3,7°S1 L Member of all principal security, option, and commodity exchanges. FAYETTEVI LLE •E CITY OF FAYETTEVILLE, ARKANSAS SHERRY THOMAS, CITY CLERK TO: Police Pension Board Members FROM: Sherry Thomas, City Clerk DATE: May 14, 1990 SUBJECT: References for Longer Investments, Inc. Attached is a letter from Elaine Longer naming three of her clients who have consented to act as references for her firm. Scott Linebaugh asked that one person from the Board contact the references and report to the whole board at the next meeting. If you have any questions or if I can help in any way, let me know. Attachment List: Eldon Roberts Rick Hoyt, Jr. Jerry Friend Dr. James Mashburn Hollis Spencer Scott Linebaugh 113 WEST MOUNTAIN 72701 501 575-8323 • • • • ELAINE M. LONGER. C.F.A. • • LONGER INVESTMENTS, INC. REGISTERED INVESTMENT ADVISOR P. 0. Box 490 18 E. CENTER STREET SUITE 201 FAYETTEVILLE, ARKANSAS 72701 TELEPHONE 501/443-5851 May 10, 1990 City of Fayetteville Police Pension Fund Committee Attn: Mr. Scott Linebaugh 113 W. Mountain Fayetteville, AR 72701 Dear Scott: Listed below are the ask that you and the not ask any specific limit your questions and the integrity of names of three client references. I would Committee respect their confidentiality and questions about their accounts. Please to the services we provide, our track record our firm. Mr. Hayden Mcllroy Freling Corp. 3811 Turtle Creek Suite 1880 Dallas, TX 75219 Phone: (214) 521-3162 - Office (214) 528-2690 - Home Mr. Clark McClinton McClinton -Anchor Co. P. O. Box 1983 Fayetteville, AR 72702 Phone: 521-3550 Dr. David Buckley Springdale Womens Clinic 206 South Blair Street Springdale, AR 72764 Phone: 756-0750 If you require any additional information, please let me know. Sinc- .-ly, Elaine M. tier, o,F.A. President • • • CITY OF FAYETTEVILLE, ARKANSAS POLICE PENSION AND RELIEF FUD ASSET ALLOCATION 4/30/90 PPan SHEARSON LEHMAN HUTFON SLH GOVT $ AGENCIES FUND FED. FARM CREDIT BANKS 60,000, 9.1/'. DUE 7/22/91 SUBTOTAL OPPENHEIMER CAPITAL DREYFUS LIQUID ASSETS GOV'T SEC. 315,000 US T -NOTE 8.125Z, DUE 2/15/98 325,000 US T -NOTE 7.375Z, DUE 5/15/96 295,000 US T -NOTE 7.875%, DUE 8/15/92 STOCKS AIR PRODUCTS -1300 AMERICAN EXPRESS -2125 AMERICAN HOE PROD. -600 AMER. INT L GROUP -650 AVNET, INC. -1600 BRU SMIICK CORP -2425 CRESTAR FINANCIAL -2050 DOVER CORP -800 DUN A BRADSTREET-575 GENERAL ELECTRIC -1125 HANSON PLC SPONSORED -2725 JEFFERSON PILOT CORP -1,400 MAY DEPT STORES -1300 MDRESOTA MINING -800 NESTLE -1078 NORFOLK SOUTHERN -1575 OMENS CORNING -1750 PFIZER, INC -825 PHILLIP MORRIS -1350 PREMARK INT'L-750 PRIMER/CA CORP -2150 PROGRESSIVE CORP OHIO -1625 TANDY CORP -1450 TEMPLE INLAND -2000 SUBTOTAL CASH EQUIVALENT (10-25%) 1110,636 FIXED INCOME EQUITIES (15-75Z) (20-40%) 60,558 110,636 60,558 315,622 296,235 310,809 294,585 TOTAL 1110,636 60,558 0 171,194 315,622 296,235 310,809 294,585 55,202 67,450 53,591 49,555 37,400 44,863 60,972 23,200 25,509 54,062 45,654 46,025 63,050 56,575 62,588 56,187 *' 53,068 45,184X 43,691 30,709F'.: 470350;. 43,526 59,654 57,258 55,202 67,450 53,591 49,555 37,400 44,863 600972 23,200 25,509 54,062 45.654 46,025 63,050 56,575 62,588". 56,187.E 53,068j: 45,184 43,691 38,709 . 47,350,_ 43,526 59,654 57,256 • • 315,622 901,629 1,182,323 2,399,574 • • • CITY OF FAYETTEVILLE, ARKANSAS POLICE PENSION AND RELIEF FUND CASH i FIXED ASSET ALLOCATION EQUIVALENT INCOME EQUITIES TOTAL 4/30/90 PPen 110-25%1 115-75%1 120-40%1 MADISON INVESTESTMENT DREYFUS LIQUID ASSETS 134,771 134,771 G0VERNIENT BONDS 325,000 FED. NAIL MTB ASSN 8.20%, DUE 12/23/96 321,305 321,305 300,000 FED NONE LOAN BANKS 8.00%r Diff 7/25/96 175,000 FED FARM CR. BANKS 8.65Z, DUE 10/1/99 290,096 290,096 172,699 172,699 CORPORATE BONDS 50,000 EASTMAN KODAK 9.125%, DUE 3/1/98 49,759 49,759 50,000 RYDER SYSTEM 9.20Z, DUE 3/15/98 SUBTOTAL CITY HELD INVESTMENTS 49,159 49,159 134,771 883,018 0 1,017,789 T -Bill, 7.728Zr 5/10/90 35,000 .35,000 T-No6e,7.25%,7/15/93 175,000 175,000 T -N06.,8,375%,11/15/92 175,000 175,000 SUBTOTAL 0 385,000 0 385,000 TOTALS 6561,029 02,230,205 01,182,323 63,973,557 as as a aaaaaaaaaa PERCENT OF TOTAL 14% 30Z 1007. a --- a aaaa a aaa aaaaaasaaa • • • SCENARIO - A CITY OF FAYETTEVILLE, ARKANSAS POLICE PENSION AND RELIEF FUND CASH A FI)ED PERCENT ASSET ALLOCATION EQUIVALENT INCOME EQUITIES TOTAL OF 4/30/90 Apr (10-25%) (15-754) (20-404) TOTAL DEAN HITTER CASH MANAGEMENT ACCOUNT 0120,000 0120,000 3X (100%) DEAN HITTER - INVESTMENT MANAGERS 81 - MADISON INVESTMENT 100,000 9170789 1,017,789 257. (10X) (90%) 82 - AVATAR ASSOCIATES 40,000 280,000 480,000 800,000 204 (5X) (35X1 (60Z) 83 - ACORN ASSET MANAGEMENT 40,000 280,000 480,000 800,000 20X (5%) 135%1 (604) TOTAL DEAN HITTER 300,000 1,477,789 960,000 2,737,789 68X • ELAINE LONGER INVESTMENTS 45,768 840,000 885,768 22X (5X) 1954) CITY HELD INVESTMENTS 60,000 350,000 410,000 108 (15X) (855) ;. • TOTALS 0405,768 01,827,789 11,800,000 04,033,557 1007 PERCENT OF TOTAL 10X 454 CC =SC= =SC= 457. _ ==s. 100X VC • • • • CITY OF FAYETTEVILLE, ARKANSAS POLICE PENSION AND RELIEF FIND ASSET ALLOCATION 4/30/90 \PPEN2 DEAN HITTER SCENARIO - 8 CASH 0 FIXED PERCENT EQUIVALENT INCOME EQUITIES TOTAL OF (10-252) (15-752l (20-40Z) TOTAL CASH MANAGEMENT ACCOUNT 0120,000 •120,000 32 (1002.) DEAN HATTER - INVESTMENT MANAGERS *1 - MADISON INVESTMENT i2 - AVATAR ASSOCIATES *3 - ACORN ASSET MANAGEMENT TOTAL DEAN HITTER ELAINE LONGER INVESTMENTS 100,000 917,789 1,017,789 (1021 (902) 40,000 360,000 400,000 800,000 (5X) (452) (50%) 40,000 360,000 400,000 800,000 (52) (452) (502) 25% 20x 20% 300,000 1,637,789 800,000 2,737,789 682 45,768 840,000 885,768 222 (SX) (952.) CITY HELD INVESTMENTS 60,000 350,000 410,000 102 1152.1 (852.) TOTALS PERCENT OF TOTAL 8405,768 11,987,789 *1,640,000 04,033,557 100% ssCss Csssssssss ss-sssssss ----- ssssssssss 102 492 412 100Z • • • • • CITY OF FAYETTEVILLE, ARKANSAS POLICE PENSION AND RELIEF FUND ASSET ALLOCATION 4/30/90 /PPEN3 DEAN HITTER SCENARIO - C CASH 0 FIXED PERCENT EQUIVALENT INCOME EQUITIES TOTAL OF 110-25%) 115-75%) 120-40%1 TOTAL CASH MANAGEMENT ACCOUNT 0120,000 0120,000 3X 1100%) DEAN HITTER - INVESTMENT MANAGERS 11 - MADISON INVESTMENT 100,000 917,789 1,017,789 25% 15%) 190%) 82 - AVATAR ASSOCIATES TOTAL DEAN HITTER ELAINE LONGER INVESTMENTS CITY HELD INVESTMENTS TOTALS PERCENT OF TOTAL 40,000 360,000 400,000 800,000 20% 15%1 145%) 150%1 260,000 1,277,789 400,000 1,937,789 48% 85,768 1,600,000 1,685,768 42/% 15%) 195%) 60,000 350,000 410,000 10% 115%) 185%) 0405,768 01,627,789 82,000,000 64,033,557 100% e a 10% 40% 50% 100% FAYETTEVILLE THE CITY OF FAYETTEVILLE. ARKANSAS IICROFTLMED • DEPARTMENTAL CORRESPONDENCE • • TO: Police Pension Board of Trustees FROM: Sherry Thomas, City Clerk DATE: January 22, 1990 SUBJECT: Police Pension Board Meeting There will be a meeting of the Police Pension Board on Thursday, February 1, 1990 in Room 326 of City Hall at 2:00 p.m. The regularly scheduled meetings for 1990 are as follows: April 19, 1990 July 19, 1990 October 18, 1990 2:00 p.m. 2:00 p.m. 2:00 p.m. Room 326 Room 326 Room 326 Attached are copies of minutes from the November 2 and November 17 Board meetings. Attachment List: Eldon Roberts Rich Hoyt, Jr. Jerry Friend Scott Linebaugh Dr. James Mashburn Hollis Spencer • • • MINUTES OF A MEETING OF THE POLICE PENSION BOARD OF TRUSTEES A special meeting of the Fayetteville Police Pension and Relief Fund Board of Trustees was held on Friday, November 17, 1989, at 9:10 a.m. in Room 111 of City Hall, 113 West Mountain Street, Fayetteville, Arkansas. PRESENT: Chairman James Pennington, Treasurer Scott Linebaugh, Secretary Eldon Roberts, members Rick Hoyt, Jr., and Jerry Friend; others present were City Clerk Sherry Thomas and Mike Kirkland of Shearson -Lehman Hutton. ABSENT: Dr. James Mashburn and Hollis Spencer CALL TO ORDER The meeting was called to order by the Chairman. INVESTMENTS Linebaugh stated that the Board has reviewed the three money managers presented by Shearson -Lehman. They had decided to review further the Madison group to see if they were able to customize their investment plan to meet the Board's investment requirements. The major difference between the three money managers is that Madison invests in corporate bonds, and the other two stay strictly in treasury bonds. Linebaugh stated that the Board had met at the Shearson Lehman office and had a conference call with Madison Money Managers. The City Attorney has reviewed the Madison Investment Management Services Agreement, and he had no problem with the agreement. It was agreed to add to the investment policy that the investment manager will conduct a meeting with the Pension Review Board at least yearly in person to review the status of the account. Linebaugh outlined the areas the City Attorney had highlighted as important for the Board to review. He also outlined the Investment Policy of the Police Pension Board in regard to the Madison Investment Advisors (a copy is attached to the minutes). It was decided to invest $500,000 plus its earnings of the initial $1 million in corporate bonds. Linebaugh stated if the growth is much above the $500,000 level, the Board should review the manager and conditions and reevaluate the amount to be invested in corporates. Pennington suggested an additional guideline stating if more than $1 million is invested in this account, then the investment policy should be reviewed to determine its adequacy. • • • • Linebaugh stated the main points to the investment policy was that the Board was giving guidelines that all investments should be rated "A" or better, only $500,000 of the initial $1 million was to be invested in corporates, and giving the money manager a guide for what the Board is expecting to achieve regarding earnings. • • Kirkland stated that Shearson had decided to make the total fee on the Madison investment .8 percent (.5 for Madison and .3 for Shearson). By charging this amount, the overall fee for all the Police Pension investments is right at 1% which was the initial goal. He stated the fee may be paid quarterly in advance. This amount might be pulled from the account; therefore, he recommended investing a little over the $1 million to cover the fees. After the Board approves and signs the Investment guide, the Madison Money Managers will have to do so as well. Hoyt, seconded by Roberts, made a motion to approve the Investment Management Services Agreement with Madison Investment Advisors, Inc. The motion passed unanimously. Hoyt, seconded by Roberts, made a motion to approve the Investment Policy between the City of Fayetteville Police Pension fund and Madison Investment Advisors, Inc., as amended. The motion passed unanimously. Kirkland recommended an additional $3,000 be invested to cover the fees. Hoyt, seconded by Friend, made a motion to invest $1,003,000. The motion passed unanimously. OTHER BUSINESS Friend asked about the possibility of moving the pension fund checking account that the monthly retirement checks are paid out of to a Shearson account which would draw more interest. Roberts stated the Board was not interested in this if it would cause problems, but earning more interest on the approximately $65,000 balance would be attractive. Pennington asked if individual checks could be written on the Shearson account. Kirkland stated there was total flexibility with the account, and any amount of checks could be written. The City could either write one check per month and deposit in the current account for distribution, or they could order new computer checks with the Shearson account. Pennington suggested that the possibility be explored and determine if it is feasible. Everyone agreed with this suggestions. ADJOURNMENT There being no further discussion, the meeting adjourned at 9:38 a.m. • • • • MINUTES OF A MEETING OF THE POLICE PENSION BOARD OF TRUSTEES A regular meeting of the Fayetteville Police Pension and Relief Fund Board of Trustees was held on Thursday, November 2, 1989 in Room 326 of City Hall, 113 West Mountain Street, Fayetteville, Arkansas. PRESENT: Chairman James Pennington, Treasurer Scott Linebaugh, Secretary Eldon Roberts, members Hollis Spencer, and Rick Hoyt, Jr.; others present were City Clerk Sherry Thomas, Mike Kirkland of Shearson - Lehman Hutton. ABSENT: Dr. James Mashburn and Jerry Friend CALL TO ORDER The meeting was called to order by the Chairman. MINUTES • Motion was made by Linebaugh, seconded by Roberts to approve the minutes of the last meeting. The motion passed unanimously. INVESTMENTS Mike Kirkland stated he had no new information regarding the proposedmoney managers but would try and answer any questions the board members might have. Linebaugh asked if it would take a minimum of $1 million to invest with the Madison group. Kirkland confirmed this and stated that an average of 45% of the investment would be in corporate bonds. Roberts stated that the Board members had discussed the Madison investment program and were fairly comfortable with what they had to offer. Kirkland stated that based on what has happened historically, it would not be imprudent to invest with Madison and have some exposure to the corporate bond market. If the Board is leaning in this direction, he would like to get the Board members together with the Madison people to discuss the possible investment. He wants the Board to make sure and feel totally comfortable about the investment. Let Madison answer any of the Board's questions and discuss the fee arrangements. • Roberts stated he was willing to take a little risk in return for a greater yield. He feels Madison is a reliable manager to use • • • • • • • • based on the material supplied and their track record. In answer to Kirkland's question regarding liquidity, Linebaugh stated the fund would need to keep about $50,000 uninvested. Linebaugh stated he had no problem with Madison as long as there were a couple of limits on the investments: (1) follow the Police Pension Board's investment policy (bonds rated "A" or better) and (2) limit the amount of corporate bonds. Pennington stated he would like Madison people and make sure they Let them give us an overview investment. for the Board to talk with the understand our investment policy. of how they would handle our Hoyt asked if it would be premature to make a motion to invest with Madison if they would agree to the terms established by the Board. He just hates to see the money not earning the maximum interest possible while the Board is making a decision on how to invest it. Linebaugh stated there would be no problem with doing that. Kirkland, asked that the Board members visit with the Madison people first and then make a decision. The Board members decided to set up a conference call with the Madison group for Thursday, November 9 at 2:00 p.m. at the Shearson office. ADJOURNMENT There being no further discussion, the meeting adjourned at 2:38 p.m.