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HomeMy WebLinkAbout2000-03-23 Minutes• MINUTES OF A MEETING OF THE FAYETTEVILLE POLICE PENSION AND RELIEF FUND BOARD MARCH 23, 2000 A meeting of the Fayetteville Police Pension and Relief Fund Board was held on March 23, 2000 at 1:30 p.m. in Room 326 of the City Administration Building located at 113 West Mountain Street, Fayetteville, Arkansas. PRESENT: Mayor Hanna, Eldon Roberts, Randy Bradley, Jerry Friend, Dr. Mashburn, Administrative Services Director John Maguire, and City Clerk Heather Woodruff. MINUTES Mr. Eldon Roberts moved to approve the minutes. Mr. Bradley seconded the motion. Upon roll call the motion carried unanimously. PENSION LIST Mr. Roberts moved to approve the pension list. Mr. Bradley seconded the motion. Upon roll call the motion carried unanimously. OLD BUSINESS ELECTION RESULTS Mr: Roberts stated they had called all the retired people and taken a poll to see whom they would like to represent them. The results of the poll had been to reelect Randy Bradley and Jerry Friend. NEW BUSINESS RON CARROLL Mr. Roberts stated a letter had been mailed to all the board members from Mr. Carroll's doctor which stated in his opinion Mr. Carroll was no longer able to do the full activity required of a police officer He added Ron was a Sargent and has been with the force for eighteen years. He has opted for medical retirement. He has had trouble with his feet and knees for several years Dr. Mashburn read Dr. Harris' letter. He stated that from a medical stand point he should be granted medical retirement. He asked Mr. Roberts to describe his duties. Mr. Roberts stated he was a patrol Sargent in charge of the patrolmen on the streets: At different times he could be required to pursue someone. In response to questions from Dr. Mashbum, he added he had not failed to perform his duties in the past. He has been off quiet a bit due to his • • • M1 problems. He has been injured in the past on duty. In July of this year he would have in eighteen years. He added every six months Mr. Carroll would have to furnish a letter stating he was not able to perform his duties. If he did not receive the letter, they would expect him to come back to active duty. Mayor Hanna asked if it was practical to try and find him a desk job. Mr. Roberts stated they tried to find light duty jobs for people who were going to get well and return to active duty. Mr. Carroll would be allowed to work other jobs as long as it was not a police type duty. Mr. Jerry Friend moved to accept Mr. Carroll's request for medical retirement. Mr. Roberts seconded the motion. Upon roll call the motion carried unanimously. INVESTMENT REPORT An investment report was presented. by Kim Cooper of Longer Investments. They would be reviewing December 31, 1999 numbers. Common stocks were a total of 46% of a combined portfolio. Equity mutual fund was 3.6%, which was our foreign stock exposure. The total equity exposure was 49 6% Bonds were at 50% of the portfolio. They would be rolling a Government Agency bond before maturity to lock in higher interest rates. Total market value as of December 31, 1999 was $11,666,000.00. The total income yield was $422,179.00. The stock account was 13% was held in bonds. They were at a maximum equity. They could not put any more equity into the account so they would keep holding the bonds. Realized gain for the year was $58,648.00. Next income for the year was $330,000. The market capitalization was 9% in large cap stock. Small and mid caps had been about 9% In September they were at 75% in small caps. They had moved into technology stock and telecommunication stocks. That would work to enhance the growth profile of the portfolio. The bond portfolio they sold bonds to lock in a higher interest rates and to extend the maturity dates. The average maturity was four years. In November $135,000 had been contributed. There had been a total of $90,000 withdrawn from the account. In 1999 Equities were up 5.7%. Fixed Income (bonds) was up .3%. They were in a rising interest rate environment. In that situation the prices of the bonds fall. The total portfolio for the year was up 3.3%. Their average annual return on stocks since the beginning of the account has been 14.3% and bonds had been 6.8%. Average annual return had been 9.5%. • • • 'The total investment returns since they had been managing the account was up $3,095,000. All numbers are net of commissions. Their total expense ratio for managing the fund was 1.17%. Prior to consolidation their expenses were running 1.49%. As of March 17, 2000, they had added Wal -mart to their retail sector. They had added to other areas such as banks. They had seen an improvement in the banking industry. Technology stocks had been purchased. Meeting adjourned at 2:10 p.m.