HomeMy WebLinkAbout1994-07-21 - Agendas - Final FAYETTEVILLE
T OF FAYETTEVILLE, ARKANSAS SHERRY L THOMAS, CITY CLERK
TO : Police Pension B6ard Members _
FROM : - Sherry L . Thomas , City Clerk
DATE : July 14 , 1994
SUBJECT : Next Meeting t
The next regular meeting of the Police Pension Board is scheduled
for 2 : $ 0 p . m . on Thursday , July 21 , 1994 , in Room 326 of the City
Administration Building .
Enclosed is copy of the minutes from the last meeting on April
21 , 1994 and an agenda for the July 21 meeting .
a
List :
Mayor Fred Hanna
Eldon Roberts
Jerry Friend
Clint Hutchens
Hollis Spencer
Dr . James Mashburn
Treasurer Glyndon Bunton
Elaine Longer
Mike Kirkland
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113 WEST M NTAIN 72701 501 575-8323 FAX 501 575-8257
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• AGENDA
POLICEMEN ' S PENSION AND RELIEF BOARD
July 21 , 1994
2 : 30 p . m .
City Hall Room 326
1 . Approval of the minutes of the April 21 , 1994 meeting
2 . Old Business
3 . New Business
A . Report from Longer Investments
B . Report from Mike Kirkland
C . Other
• 4 . Adjournment
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• MINUTES OF A POLICE PENSION BOARD MEETING
A meeting of the Police Pension Board was held on April 21 , 1994 ,
at 2 : 30 p . m . in Room 326 of the City Administration Building , 113
W . Mountain , Fayetteville , Arkansas .
PRESENT : Eldon Roberts , Hollis Spencer , Mayor Fred Hanna , City
Clerk Sherry Thomas , and City Treasurer Glyndon Bunton
ABSENT : Dr . James Mashburn , Clint Hutchens , and Jerry Friend
CALL TO ORDER
The meeting was called to order by Eldon Roberts .
MINUTES
Spencer , seconded by Bunton , made a motion to approve the January
20 and February 15 , 1994 minutes . The motion passed unanimously .
OLD BUSINESS
MEDICAL RETIREES
Roberts stated he felt it was fine to notify the medical retirees
about an update from their doctors regarding their medical
disabilities . However , it is the retiree ' s responsibility to
notify this Board on an annual basis .
Thomas distributed copies of a letter from Don Kilgore ' s physician
regarding his medical disability .
Bunton asked if there were any different requirements for a medical
retiree and a line of duty disability retiree .
Roberts stated he did not believe there were any differences .
NEW BUSINESS
MADISON INVESTMENT REPORT
Kay Frank , Madison Investments , Madison , Wisconsin , attended the
meeting and reported on the 1993 year end and the first quarter
investments . She stated last April the economy was not very good .
There were tax hikes , consumer confidence was down , and there was
a general negative feeling in the country . But , both the stock
market and the bond market were doing okay . The economy was still
pretty strong in the fourth quarter of 1993 , but Madison was
anticipating a change in the markets . So , they started to lighten
maturities and to take more risk off the table . The portfolio is
down . 6 of 1% as of March 31 , 1994 . Interest rates have risen , so
• the markets have gone down . The average annual rate of return on
the fund for the past 4 to 4 1/ 2 years has been about 9 % .
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• April 21 , 1994
Frank stated today the yield on treasury bills is a little over 7 % .
The stock market has moved very far , very fast , so they are
expecting a retracement of some of the loss in the market . They
expect a small rally in the not too distant future . The federal
bank has just begun to raise short term interest rates . The bond
market may have an impact on the economy as a result of these
increasing interest rates . However , Madison does predict there
will be some volatility over the next year or two in the markets .
They do expect to have a good year in 1994 .
Bunton asked in order to take advantage of the anticipated rally ,
what securities would Madison be investing in .
Frank stated they will be looking into selling some of the 3 year
maturity treasuries and buying 30 year bonds when their returns
increase .
DEAN WITTER INVESTMENT REPORT
Mike Kirkland stated there is $ 84 , 293 in cash , and the TCW balance
as of March 31 , 1994 was $ 1 , 504 , 001 . The S & P was down 8 . 1 % , the
Dow was down 9 . 4 % , and TCW was down 7 . 25% , which is a little better
than average . Most of the drop happened in one month . The
portfolio is split 65% in stocks , 35 % in bonds , and 5 % in cash .
• Kirkland stated the stock market has recovered a little , and they
expect it to increase a bit more . They also expect to see long
term bonds earn around 7 . 5 % . He stated TCW ' s return over a 5 year
period was about 14 % . TCW has had this account since August 19 ,
1993 .
Kirkland stated housing starts were up again in March , but they
were flat in February . They do not think the higher interest rates
will effect the jumbo mortgages that much , so they expect the
housing starts to continue to grow , which is good for the economy
and the investment markets .
LONGER INVESTMENT REPORT
Elaine Longer stated the bond market has gone down , and long term
interest rates have moved up . The markets are currently in a
transition stage . She stated the portfolio has 44 % in equities and
13 % in cash . She has been working on gaining buying power to be
able to take advantage of increasing treasury bill rates . She has
been buying some of the 6 % treasuries due in November , 1997 . The
bond portfolio has 30 % in corporate bonds and 53 % in government
bonds . The stock portfolio is split about 50 % in mid-cap stocks
and about 50 % in the larger companies .
Longer stated the portfolio is down 4 . 11 % for the first quarter of
• 1994 . The total account return since inception is 8 . 33 $ . She
stated there have been $96 , 708 in realized gains year-to-date . She
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• April 21 , 1994
stated it has been some time since the portfolio has had a down
quarter such as this one . The earnings of the companies in the
stock portfolio continue to look good , so they are anticipating a
growth in the returns for the balance of 1994 .
Longer stated there may be another increase in the prime interest
rate . She wants to be in a position to take advantage of the
decline and have cash ready to make investments .
OTHER BUSINESS
Roberts stated elections will need to be held the first part of May
because two of the positions come up for appointment . He stated he
will call a meeting of the active members .
Spencer stated he would contact the retirees regarding the retiree
position .
ADJOURNMENT
The meeting adjourned at 3 : 35 p . m .
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