HomeMy WebLinkAbout1997-10-23 MinutesMINUTES OF A POLICE PENSION BOARD MEETING
A meeting of the Police Pension Board was held on October 23, 1997, at 1:00 p.m., in room
326 of the City Administration Building, 113 West Mountain, Fayetteville, Arkansas.
PRESENT: Mayor Fred Hanna, Randy Bradley, Hollis Spencer, Eldon Roberts, Jerry
Friend, Dr. James Mashburn and City Clerk/Treasurer Traci Paul.
CALL TO ORDER
Mayor Hanna called the meeting to order.
MINUTES
Roberts, seconded by Friend, moved to approve the minutes of the July 17 meeting. The
motion passed unanimously.
OLD BUSINESS
END OF THE YEAR INVESTMENT STRATEGY
Roberts reminded the Board that there had been some discussion about asking Elaine Longer
to manage the portfolio through the end of the year in a way that would create better numbers
that could be beneficial when it is time to apply for another benefit increase.
After some discussion, the Board concluded that Longer understood the wishes of the Board.
Mayes stated at the last meeting, the Board decided to wait until October to give Longer a
chance to think about the Board's request.
Roberts stated the Board should instruct Longer to go ahead.
MINUTES SENT TO RETIREES
Spencer stated he received four calls from retired people who were pleased to receive a copy
of the minutes with their pension check.
Friend stated some pension checks are sent directly to the Credit Union.
In answer to a question from Friend, Paul explained she could obtain separate addresses for
the retirees who have their checks sent directly to the bank.
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October 23, 1997
NEW BUSINESS
STATE INSURANCE TURNBACK FUNDS
Bradley asked if the amount available for the Board to invest was $150,000.
Mayes stated yes.
Bradley, seconded by Roberts, made a motion to turn $150,000 over to Elaine Longer.
The motion passed unanimously.
CHARLIE ALLEN - RETIREMENT
Roberts stated this is a voluntary retirement. Allen has served 20 and one half years.
Roberts stated Charlie and his wife divorced not long ago and she got a portion of his
retirement in the settlement. Roberts said that he explained to Charlie Allen that the issue is
between the two of them. Roberts stated the pension check will be sent to Charlie Allen and
then he can give her the portion that she is entitled to.
Friend, seconded by Bradley, made a motion to approve Charlie Allen's retirement.
The motion passed unanimously.
Dr. Mashbum arrived.
INVESTMENT REPORT
Elaine Longer introduced Steve Renfro, a new portfolio manager for Longer Investments.
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Longer distributed and reviewed the investments reports.
The Board briefly discussed information sent to them by Mike Kirkland of Morgan Keegan.
The Board discussed the portfolio performance and how it affects a possible benefit increase.
After some discussion about the difference in the market value and the cost value, Mayor
Hanna suggested the Board have Longer sell enough stock and repurchase it to make the
difference between the cost value and the market value an even $1 million.
Longer stated that would be about $320,000. Longer stated that would harvest about a
quarter of the unrealized gains.
Roberts stated that coupled with the insurance turnback check and the growth we have had
since the figures went in the end of 1996 should make the fund considerably stronger.
Roberts suggested the Board could apply for the same benefit increase at the end of 1998.
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October 23, 1997
Friend, seconded by Roberts, made a motion to narrow the gap between the cost value
and market value of $1.32 million to approximately $1 million. The motion passed
unanimously.
Longer reviewed The Longer View newsletter.
Administrative Services Director Ben Mayes suggested that Elaine Longer and Eldon Roberts
meet in early December to review how things are going. The Board can call a special
meeting if necessary.
Longer stated she would look at unrealized gains as a percent of portfolio on December 1.
ADJOURNMENT
The meeting adjourned at 2:10 p.m.
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