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Home My WebLink About2001-01-18 - Agendas - Final FAYETTEVILLE 10THE CITY OF FAYETTEVILLE, ARKANSAS POLICE PENSION AGENDA JANUARY 18, 2001 A meeting of the Fayetteville Police Pension and Relief Fund Board will be held on January 18, 2001 at 1 : 30 p.m. in Room 326 of the City Administration Building located at 113 West Mountain Street, Fayetteville, Arkansas. 1 . Approval of the minutes 2. Pension List 3 .. Retirement of Gary Dugger 4. Investment report .. 0 113 WEST MOUNTAIN 72701 501521 -7700 FAX 501 575-8257 MINUTES OF A MEETING OF THE POLICE PENSION AND RELIEF FUND BOARD A meeting of the Fayetteville Police Pension and Relief Fund Board was held on December 21 , 2000 in Room 326 of the City Administration Building located at 113 West Mountain Street, Fayetteville, Arkansas. PRESENT: Elton Roberts, Jerry Friend, Randy Bradley, and City Clerk Heather Woodruff. ABSENT: Mayor Hanna and Dr. Mashburn. MINUTES Mr. Bradley moved to approve the minutes. Mr. Friend seconded the motion. Upon roll call the motion carried unanimously. PENSION LIST Mr. Roberts stated there were only eight people at the station still on this plan. Four of those people would be able to retire soon. Gary Dugger would be retiring next month. INVESTMENT REPORT Ms. Elaine Longer and Kim Cooper, Longer Investments, presented the investment report. • Ms. Longer stated they did not have a recession, but they were having an eaming recession. In June their growth estimates for the fourth quarter earnings were approximately 15%, those had come down to 7%. She felt they would be looking at 3 to 5% growth rate for this quarter. They were into the earnings impact of the slowing economy and the market was just adjusting to the revised earnings outlook. The area which had been hit the most was the technology stocks. There was a definite correction going on with those stocks. They were under weighted in Technology. They would like to start picking up some in the first quarter. September 15, 2000 their total equity exposure in common stock was 40%. 50% were in equity mutual funds. About a 46% in exposure. Bonds made up the rest of the portfolio. The market value was at 11 . 195 million dollars. December 15, 2000 portfolio update showed they were about 41 % stock. They had another 10% of total portfolio value, which was over one million dollars, that they could use on the equity side. They had their core earning tack. They had done some hedging in the fourth quarter. They brought in approximately $60,000, by hedging their technology stocks. They had been able to off set some of the decline by using some tentative earnings. The market value on December 15, 2000, was 11 .2 million dollars. Thru yesterday, the equities on their account, year to date, were down about 12.9%. That was just the stock portion of the portfolio. Their bonds were up about 9%, year to date. Their real estate investment trusts were up about 18.6%. The total portfolio was off 1 .8% for the year so far. It sounded bad to be down for the year, but the S&P 500 was down about 13 .9% for the year. This was the largest yearly drop for the Dow since 1981 . It was also the largest yearly drop for the S&P since 1977. The NASDQ was now down 56% from its high. The bad news was that it was a horrible year, but the good news was that the impact on the portfolio had only been 1 .8% for the year. That was easily recoverable. The main objective in a year like this was to minimize the losses. A lot of this decline had taken place in this quarter. The Bond portfolio report, 37% was in corporate bonds. Their treasuries were approximately 30%. Government agency securities were at 32%. The weighted average income yield on book value on the bonds was 6.55%. This was with an average weighted maturity at 4.9 years. When AT&T announced their break up into four smaller divisions, they did not bother to tell the creditors where their 62 billion dollars in debt was going to go. Two of those divisions did not have earnings. They were sitting on an AT&T Bond which was rated A2. She did not want to wait and end up with a bond with a less of an investment rate. They had sold the AT&T bonds because she felt that represented a significant risk. Tyson Bonds, the acquisition that they were talking about making with IDP, half of the purchase would be done with cash. The other half would be done with equity. It would raise Tyson debt to capitol to approximately 56%. That could put them on a credit watch for a possible credit down grade. They were currently rated A-. The minimum credit rating was an A. They had taken the bonds off. They had also sold some of the Tyson stock. They did not want to be involved with Tyson as a creditor while this acquisition played out. Their performance summary for September 30, 2000, their average annual return in equity was approximately .12.3%. Bonds were about 7%. The total was approximately 8.6%. Mr. Roberts stated he felt that they were getting better service than they would with a larger company. It was obvious that someone was watching their money. That was what they hired money managers for was to watch their money in down times. RETIREMENT OF GARY DUGGER Mr. Roberts suggested rather than calling a special meeting the first part of January to retire Gary Dugger, why didn't they go ahead and approve his retirement. There was nothing unusual about his retirement. He could go ahead and retire him. He would notify accounting and the board, then at the first meeting in January they would bring it up and vote on it. It was a perfect retirement. Mr. Friend moved to approve Mr. Dogger's retirement. Mr. Bradley seconded the motion. Upon roll call the motion carried unanimously. Meeting adjourned at 2 : 15 p.m. POLICE PENSION FUND FEBRUARY,2001 JEMP# NAME GROSS FED. TAX ST. TAX NET 154 ALLEN, CHARLES 2,244.53 220.00 66.89 1 ,957.64 152 ARNOLD, WILLADEAN 853.00 853.00 130 BAYLES, DON 1 ,384.31 1 ,384.31 107 BLACK, JOE P 985.99 100.00 20.00 865.99 120 BOWEN, J R 613. 19 10.00 603. 19 147 BRADLEY, GERALD 4, 172.85 840.53 117.32 3,215.00 139 BRADLEY, RANDALL 2,482.20 2,482.20 101 BROOKS, BILL 1 ,325.79 1 ,325.79 157 CARROLL,RONALD L 3, 132.22 435.00 180.00 2,517.22 151 COLE, RUSTON 2,659.53 600.00 200.00 1 ,859.53 109 COOPER, ADRIAN 565.71 565.71 111 DAY, LUCILLE 400.00 400.00 108 DENNIS, WARREN 1 ,202.71 1 ,202.71 160 DUGGER,GARY 3,626.27 3,626.27 125 FLOWERS; HAROLD 759.10 759.10 140 FOSTER, BILLY D. 2,781 .68 300.00 120.00 2,361 .68 148 FRIEND, JERRY 2,734.53 350.00 150.00 2,234.53 145 HANNA, MARK 2,376.11 225.00 75.00 2,076.11 124 HASKINS, RONALD 689.73 689.73 146 HUTCHENS, BERNICE 889.85 130.00 759.85 143 JOHNSON, CHARLES 2,133.14 42.67 2,090.47 103 JOHNSON, WENDELL 690.55 690.55 118 JONES, BOB 2,862.00 2,862.00 144 KILGORE, DONALD 1780.31 19.72 1 ,760.59 • 129 LAWSON, FORREST 1 ,367.48 200.00 1 , 167.48 150 LITTLE, PATSY R 400.00 400.00 153 LORCH, DONNA G 400.00 400.00 156 MARTIN, KENNETH 3200.49 1000.00 140.00 2,060.49 128 MCCAWLEY, LARRY 11476.94 180.00 20.00 11276.94 116 MCCHRISTIAN, MARIE 400.00 400.00 126 MCWHORTER, KAREN 500.02 500.02 136 MITCHELL, MICHAEL 21003.56 150.00 11853.56 141 MUELLER, ROSEMARY 1 ,795.38 1 ,795.38 158 MUNSON,ANGELA 3,621 .36 500.00 183.00 2,938.36 112 MURPHY, JAKE 400.00 400.00 137 PERDUE, LARRY 2,018.55 200.00 25.00 1 ,793.55 132 PHILLIPS, HOMER GENE 1 ,528.40 300.00 1 ,228.40 105 PRESTON, GEORGE DAVII 19396.37 67.43 196.37 1 , 132.57 135 RICKMAN, LOREN 1 ,939.54 230.00 65.00 1 ,644.54 104 RIGGINS, RAYMOND C 1 ,455.01 125.00 25.00 1 ,305.01 159 SCHUSTER,JOHN H. 21689.07 340.00 110.00 2,239.07 122 SKELTON, FRANK 728.67 728.67 123 SPENCER, HOLLIS 1 ,201 .65 150.00 36.65 1 ,015.00 155 STOUT, BETTY 430.25 430.25 133 SURLES, JERRY 2,362.50 412.50 50.00 11900.00 142 TAYLOR, DENNIS 11795.38 65.00 65.00 1 ,665.38 106 UPTON, FRANKLIN 926.84 10.00 916.84 110 WATTS, BEULAH 400.00 400.00 149 WILLIAMS, JOYCE 1 ,232.07 217.07 1 ,015.00 134 WITT, DON 1 ,539.09 64.00 115.00 1 ,360.09 127 WOOD, PAUL J 1 ,378.72 1 ,378.72 � ' -------------- -------------- --_--------- $81 ,932.64 $7,421 .53$7,421 .53 $2,022.62 $72,488.49 4 APPLICATION FOR PENSION PURPOSES DATE January 4 52001 Board of Trustees Police Pension and Relief Fund Fayetteville, Arkansas 72701 Gentlemen: I, Gary W. Dugger have been employed by the Police Department of the City of Fayetteville, Arkansas, from January 5 , 1981 to January 22 , 2001 I hereby request all benefits due me from the Police Pension and Relief Fund as of 01-22-01 My beneficiary is Beverlee J . bugger My reasphtTofrsoti ement are voluntary «, Signature 61 A 13 'r �Sybs'�bezl 'and5woifi to before me this _ day of 42001 Notary Public 0&"gz 9 e,6,7� My'eortimiSSi6kw pires: City Treasurer's Office The annual salary of the above applicant for pension purposes is: $ Computation of Retirement Benefits Ninety per cent (90%) of applicant's annual salary ------------------------- $ .3a a 8, So Additional annual benefits per AR Code Anno, 24- 11 -422 --------------- $ yk0 , DO *Additional annual benefits per AR Code Anno, 24- 11 -432 -------------- $ *(Payable only at age 60 with 26 or more years of service) Total annual retirement benefits ----------------------------------------------- $ 3 aeo Total monthly benefits ( I/12 of total annual retirement benefits) --------- $ �l .. 7JI 07 City Treasurer Subscribed and sworn to before me this day of 20 _ • Notary Public My commission expires: GENERAL POLICE PENSION • Prepared : 1 /04/01 Name: Gary Dugger Date of Retirement: 1 /22/01 Emp # 90 SS# 493-56-9224 DOH : 01 /05/1981 Yrs Srv: 22 ( Including 2 years military) Hourly Rate: 16.063 Hours Base: 21232. 10 Annual Salary 35,854.222 Annual Benefit (at 90% of salary) 32,268.800 ' 1 \12 of Annual Benefit 2 ,689.07 • Additional yrs beyond 20: 2 $20.00 40.00 ' Monthly benefit 21729 .07 ' Daily benefit 89.72 ' Last day on payroll ' 1 st retirement check to be issued 2/15/01 Additional 10 days for Jan . 897 . 20 ' Feb. retirement benefit 21729 . 07 Total Check 31626 .27' �t -- - �f f �L. � � �.. 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