HomeMy WebLinkAbout1984-10-01 MinutesMINUTES OF A FIRE PENSION RELIEF BOARD MEETING
A meeting of the Fire Pension Relief Board was held on Monday, October
1, 1984 at 4:30 P.M. in Room 313 of the City Administration Building,
113 W. Mountain Street, Fayetteville, Arkansas.
PRESENT: Chairman Grimes; Treasurer Linebaugh; Secretary Kennedy;
Fire Chief Logue; Firemen Dill, Judy, Reagan, and Spring-
ston
CALL TO ORDER
The meeting was called to order by Chairman Don Grimes at 4:30 P.M.
MINUTES
With one correction (change "Boudrey" to "Judy" under those present),
the Minutes of the September meeting were approved as circulated.
PENSION LIST
A change to the Pension List for October was to place Mrs. Marvin
Murphy's name on the list in place of Marvin Murphy who is now deceased.
Fireman Judy, seconded by Reagan, made a motion to approve the Pension
List for October. The motion passed, 5-0.
OLD BUSINESS
Request for Benefit Increase
Fireman Springston asked for information concerning the request for
a pension benefit increase. Treasurer Linebaugh stated no decision
has been received as of yet, but that he would call the State office
and make an inquiry.
Fire Pension Relief Board
October 1, 1984
Page 2
INVESTMENTS
Linebaugh reported on three investments which came due in October
(this information was distributed to those present):
Came
Due Bank Amount Yield Term
10/19 N.W. National $437,205.00 9.905 Was 1 Year
10/31 1st National 145,000.00 11.51 Was 90 Day
10/31 1st National 312,000.00 9.75 Was 1 Year
Linebaugh reported there is only one other long-term C.D., which comes
due in November.
Linebaugh next reported on current rates available:
C.D.'s T -Bills
Term Yield Term Yield
90 day
180 day
1 year
T -Note
11.00
11.20
11.35
180 day
1 year
2 year 12.00 (does not include $25 fee)
11.0
11.25
Linebaugh noted the T -Bills are running lower than what we obtain
on C.D.'s.
Reporting on quotes from Little Rock banks, Linebaugh stated one good
group of quotes was obtained from Worthen Bank:
Term Rate
180 day
1 year
2 year
11.55
11.70
12.10
Linebaugh commented that Commercial National, Union National and First
National banks of Little Rock all quoted rates below our local rates.
Fire Pension Relief Board
October 1, 1984
Page 3
Linebaugh reported that the last City bids obtained from Little Rock
banks (11.38 for 180 days and 11.61 for one year) showed that only
Worthen Bank was above, but nowhere near 1% above, our local rates.
Linebaugh asked that the Board decide (1) which banks and/or savings
and loan associations they wish to obtain bids from; and (2) what
length of term they wish to choose.
Linebaugh listed the possible choices, which were to obtain bids
from First Federal of Arkanas, Heritage Division; that the Board
could try again with First South and Superior Federal Savings
and Loans, but he noted that they will probably not bid; First
Federal of Fayetteville; and the Bank of Elkins if they bid 1%
more or greater than the local banks.
Regarding length of term, Linebaugh noted there is only one more
long-term C.D., coming due in November. Linebaugh commented
that experts are still predicting a small down surge followed
by a raise in rates and recommended that, rather than "putting
all our eggs in the short-term basket", that the following be
done:
That the $437,205 coming due on 10/19 be added to savings
of $60,000 and the total amount be split into two C.D.'s
- that a $250,000 C.D. be bought for a one-year term and
that $247,205 be put into a 180 -day C.D. which would come
due in April; and
That the two C.D.'s coming due on 10/31, for a total of
$457,000, be split into two C.D.'s - $250,000 for one year
and $207,000 for 210 days to come due in May.
Linebaugh noted this would leave the Board with C.D.'s coming
due in February, March, April and May.
Linebaugh distributed information to the Board from Government Guaranteed
Funding Corporation, stating there may be a problem with the way it
operates and it must be checked out completely. Linebaugh explained
they offer 13% on very long-term federal securities.
It was agreed by the Board to open bids up to all local banks and
savings and loan associations and also to the Bank of Elkins. It
was agreed by the Board to pursue Linebaugh's recommendation as to
the C.D.'s and their lengths of term.
Fire Pension Relief Board
October 1, 1984
Page 4
ADJOURNMENT
With no other business before the Board, it was moved by Dill and
seconded by Judy, to adjourn the meeting. The motion passed unanimously
and the meeting was adjourned at about 4:48 P.M.
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NALD L. GRIMES, PRESIDENT