HomeMy WebLinkAbout1995-04-20 Minutesi
•
MINUTES OF A POLICE PENSION BOARD MEETING
A meeting of the Police Pension Board was held on April 20, 1995,
at 2:30 p.m. in room 326 of the City Administration Building, 113
West Mountain, Fayetteville, Arkansas.
NO
PRESENT: Mayor Fred Hanna, Eldon Roberts, Hollis
Spencer, City Clerk/Treasurer Traci Paul, and
Administrative Services Director Ben Mayes.
ABSENT: Dr. James Mashburn and Jerry Friend
CALL TO ORDER
The meeting was called to order by Mayor Hanna.
MAYES - COST BASIS SUMMARY
Mayes distributed and reviewed a cost basis summary.
In answer to a question from
Witter is holding 51% of the
holding 49%. The City holds
Mayor Hanna, Mayes stated Dean
assets and Longer Investments is
$20,000 for pension payments.
Roberts pointed out that the Board had voted in the past to keep
enough money in the City held investments to make pension
payments for three months. The amount being paid each month is
approximately $31,000.
Mayes explained that a portion of money in the Dean Witter
account is available if it is needed.
In answer to a question from the Board, Mayes stated the City has
paid out almost $96,000 in pension expenses in the last two
months. Revenues have only been $33,000.
In response to comments made by Roberts, Mayes stated all the
income comes to the Board from July to October. It is not
unusual to have a loss during the first of the year.
NEW BUSINESS
LONGER INVESTMENT REPORT
Kim Cooper, Longer Investments, distributed and reviewed
portfolio appraisals and other documents dated March 31, 1995.
Cooper stated
portfolio for
yield.
as of March 31, the current annual income on the
the combined account was $172,645. That is a 5.2%
Hollis Spencer arrived.
April 20, 1995
Although the portfolio was down last year because of the rising
interest rates, there was an increase in income.
Referring to the stock account, Cooper stated about 34% of the
portfolio is in treasuries. They can be used for purchasing
power.
Cooper briefly reviewed a listing of stock accounts by industry.
Cooper explained that the yield is up on the bond portfolio.
Cooper stated since account inception, the average annual return
in stocks is 9.7% and the fixed income is 8.3%. The total
account in 7.8%. That is -all net of any fees and expenses on the
account.
For 1995, the account is up 4.3% in the first quarter. In the
first three months of this year, almost everything that was lost
last year has been retraced.
•
In comparing the portfolio structure in equities to the S & P,
it shows to be conservative.
The income in the portfolio is up to $172,645 annually which is a
5.2% yield. The weighted average maturity is a little over five
years. Yield to maturity is 7.26% and the duration is 3.5%.
Twenty percent of the stock portfolio will mature in less than
three years and 60% of the bond portfolio will mature in less
than three years. There is lots of purchasing power there.
DEAN WITTER INVESTMENT REPORT
Mike Kirkland, Dean Witter, distributed various reports.
Kirkland stated that TCW had gotten rid of all the Latin American
stocks which brought the account down last year. Currently the
portfolio is about 60% equities and 40% bonds.
In reviewing the Madison first quarter report, Kirkland stated
the total return year-to-date is up 4.45%.
Rates probably will not come down substantially. Inflation is
not out of control and the economy is slowing down. That should
help stabilize some things overall.
On Madison, the value was $1,483,222 on December 31, 1993. On
December 31, 1994, the value was $1,473,404. Currently, the
value is up almost 5% year-to-date.
Kirkland pointed out that TCW is dealing with more familiar
names.
•
April 20, 1995
Kirkland stated there is about $24,700 in the cash account. Some
CD's will be maturing in June, some in September and some in
December. Next year, $214,000 will be maturing. The value of
the cash account is approximately $272,000.
In response to comments from Roberts regarding the amount of
money paid to pensioners each month, Kirkland stated some of the
CD's could be sold.
BOARD APPOINTMENTS
Mayor Hanna announced that Randy Bradley has been appointed to a
two year term on the Police Pension Board ending in May of 1997.
Bradley replaced Clint Hutchens. Hollis Spencer has been re-
elected to another term.
In answer to a question from Mayor Hanna, Roberts explained that
his term would be ending in May. The active employees at. the
Police Department will hold an election.
MINUTES
Roberts stated that at the January 19 meeting the Board discussed
the issue of Jerry Surles and Clint Hutchens being eligible for
additional benefits. Spencer made a motion that the Board accept
the written opinions of Jerry Rose and ask the City Clerk to
forward the opinions to the involved parties. The motion did
not have a second and a vote was not taken.
Spencer restated his motion from the January 19 meeting. Roberts
seconded the motion. The motion passed unanimously.
Roberts, seconded by Spencer, made a motion to approve the
minutes of the January 19, 1995 meeting. The motion passed
unanimously.
PENSION AFFIDAVITS
Paul stated that pension affidavits had been mailed to the
retirees. All affidavits have been returned to the City Clerk's
Office.
MASHBURN TERM TO EXPIRE
Paul stated that Dr. Mashburn's term will expire in May.
Roberts stated the Board members will vote on the filling the
position. In the past, the opening was advertised in the
newspaper.
•
•
•
April 20, 1995
Discussion ensued regarding whether or not the position had to be
advertised.
Paul offered to check with Jerry Rose for clarification.
ADJOURNMENT
The meeting adjourned at 3:20 p.m.