HomeMy WebLinkAbout2002-01-17 - Agendas - Final FAYETTEVILLE
City Clerk's Division
lW3 West Mountain
etteville, Arkansas 72701
Phone: 479-575-8323 Fax 479-718.7695 Email:cityclerk@ci.fayetteville.ar.us
POLICE PENSION AND RELIEF FUND
AGENDA
JANUARY 17, 2002
A meeting of the, Fayetteville Police Pension and Relief Fund Board will be held on Thursday,
January 17, 2002, 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. Approval of the Pension List
• 3. Approval of the State Benefit Supplement
4. Investment Report
5 . Other Business
Heather Woodruff, City Clerk
• _ 113 West Mountain
Fayetteville, AR 72701
575-8323
email: hwoodnzff@ci.fayetteville.ar.us
MINUTES OF A MEETING •
OF THE
POLICEMEN'S PENSION AND RELIEF FUND BOARD
OCTOBER 18, 2001
A meeting of the Fayetteville Policemen's Pension and Relief Fund Board was held on October 18, 2001 ,
at 1 :30 p.m. in Room 326 of the City Administration Building located at 113 West Mountain Street,
Fayetteville, Arkansas.
PRESENT: Eldon Roberts, Jerry Friend, Randy Bradley, Hollis Spencer, Dr. Mashburn, Heather
Woodruff, Kit Williams, and Ted Webber.
MINUTES
Mr. Roberts moved to approve the minutes. Mr. Bradley seconded the motion. The motion carred
unanimously.
PENSION LIST
Mr. Roberts noted that Gary Dugger was now receiving $50.00 in State Supplemental Funds and that Ron
Haskins had passed away and that his wife Irene was now receiving the benefits.
Mr. Friend moved to approve the pension list. Mr. Roberts seconded the motion. The motion carried
unanimously.
INVESTMENT REPORT
Ms. Elaine Longer, Longer Investments, presented the Fund's Financial Report. As of September 30, 200 1 ,
the total portfolio was at 10.36 million . By October 12, 2001 , the fund had recovered to 10.56 million. •
Their largest holdings were Pfizer, Citigroup, ExxonMobil, Dell Computer, and Emerson. As of
September 30, 2001 , Realized Gains were $46,078.91 and Net Income was $290,797.94. Portfolio Income
and Yield: as of September 30, 2001 , on Fixed Income Securities, yield on book value 6.4%. Yield on
book value for total portfolio was 4.7%. Performance Summary as of September 30, 2001 : The average
cumulative return, ten year average annual return for equities was 12.5%, for fixed income was 6.6%, for
a total of 9.0% through December 31 , 2000. Average annual return since account inception for equities
was 11 .7°/x, fixed income was 7.0% for a total of 8.5°%. 2001 total account return through September 30
for equities was -26.3%, fixed income 7.9% for a total of-6.3%. Stock account total return thru September
30 was - 18.4°/x. Total investment return from inception through September 30, 2001 was $3,261 ,819.87.
Ms. Longer noted several bonds had been put on credit watch, Ford Motor Credit and General Motors; and
that they no longer met the funds requirements. She requested permission to work out of the bonds
between now and the end of the year so she would not have to sell them all at once.
Mr. Bradley moved to dispense of the bonds by December 31 . Mr. Roberts seconded the motion. The
motion carred unanimously.
Ms. Longer also presented a report from Jody Carreiro regarding their 1999 actuarial study and an
evaluation of the current and projected status of the plan under current plan provisions and under the 90%
of salary has benefit. In the report he described the process and the assumptions that were used to evaluate
their fund. He also stated that it was their opinion that the cash flow projections show that the fund would
be actuarially sound at the 90% base benefit for future and current retirees and surviving spouses. He also
noted that his results would depend on upon the actuarial assumptions being met. •
The meeting adjourned at 2:20 p.m.
FAYETTEVILLE
THE CIN OF FAYETTEVILLE, ARKANSAS
DEPARTMENTAL CORRESPONDENCE
TO: Eldon Roberts, Assistant Police Chief
FROM: Budget & Research
DATE: December 28, 2001
SUBJECT: Police Pension and Relief Fund Minutes for Supplemental Turnback Benefits
This memo is a follow up to our conversation on the above subject. Budget & Research has located
a copy of the memo from the Arkansas Fire & Police Pension Review Board informing the City of
the benefit increase to $50.00 for the monthly supplemental amount. However, a copy of the minutes
with the board accepting and authorizing the disbursement of the supplemental amount has not been
located. While these payments are provided by the State by ACT 1452 of 1999 (as amended by ACT
1543 of 2001 ), the municipal board should ratify the payments at a board meeting following State
notification.
Currently, the account is over budget and needs a budget adjustment. The minutes provide the back-
up for the adjustment. Should Arthur Andersen LLP, the City's external auditors, randomly select
this adjustment during the audit process and the back-up is not attached, it could be recorded as an
exception hi the audit report, which does not reflect well on the City. Please provide the minutes or
notify Budget & Research as to the legal aspects of the municipal board not approving the
disbursement in the minutes. This information is needed in order to close the year 2001 .
Thank you for your assistance in this matter.
cc: Ted H. Webber, Administrative Services Director
Heather Woodruff, City Clerk
Kit Williams, City Attorney
•