HomeMy WebLinkAbout1985-04-02 MinutesMINUTES OF A FIRE PENSION RELIEF BOARD MEETING
A meeting of the Fire Pension Relief Board was held on Tuesday, April
2, 1985 in Room 313 of City Hall.
PRESENT: Chairman Don Grimes, Treasurer Scott Linebaugh, Secretary
Suzanne Kennedy, Fire Chief Paul Logue, Firemen Dill,
Judy, Iiogae, Reagan and Springston.
CALL TO ORDER
The meeting was called to order by Chairman Don Grimes at about 2:55
P.M.
MINUTES
The Minutes of the March 4th meeting were approved as submitted.
OLD BUSINESS
Linebaugh reported that the Board had asked him to review pension
benefits for Arnold King and Troy Schader in light of Arkansas Statute
19-1822 which states that a pension cannot exceed 50% of the salary
of a current retiree. Linebaugh explained that King and Schader's
situations are not equal because one had two more years of service;
but that by dropping two years so that an equal comparison can be
made, their pensions would compare at $650 for King and $775 for Schader.
Linebaugh stated that he thought this would pose no problem but he
cautioned that this should be watched in the future.
PENSION LIST
It was moved, seconded and passed unanimously to approve the Pension
List for April.
INVESTMENTS
All Board members were in agreement with the investment which was
made, in accordance with the Board's instructions, of $120,000 in
a new C.D. for 120 days at First Federal of Arkansas, at the rate
of 9.02%.
Fire Pension Minutes
April 2, 1985
Page 2
NEW BUSINESS
Linebaugh reported on rates available for C.D. #288704, due to mature
on April 19, 1985, currently held at First Federal at 11.250%, in
the amount of $252,205:
Certificates:
Zero Coupons:
Term Interest Rate
90 days 8.65%
180 days 9.15%
360 days 9.7%
7 years 11.80%
5 years 11.55%
T -Note with
Coupon: 5 years 11.2%
Linebaugh reported that the area banks are not anxious to have very
many large investments at this time because of the city's large water
and sewer bond issue. Linebaugh suggested that the Board consider
making longer-term investments. Linebaugh specifically recommended
a five-year T -Note with Coupon, as interest is accrued every six months,
and he did not recommend investing in zero coupons at this time.
Linebaugh also recommended that the Board not invest any more than
1/3 of the funds in long-term investments.
After discussion, Springston, seconded by Judy, made a motion to invest
the C.D. maturing this month in a five-year Treasury Note with Coupon.
The motion passed, 4-1, with Dill voting in the minority.
INVESTMENT FIRMS
Linebaugh asked if the Board wished to schedule more meetings with
investment firms. Fireman Reagan commented that he would be interested
in meeting with investment firms if there is no charge. Linebaugh
noted that the cost of a management fee, in the future, could range
from $20,000 to $30,000.
COST -OF -LIVING DATA
Linebaugh distributed copies of Schedules the Board had requested
regarding cost -of -living data based on the Consumer Price Index.
Fire Pension Minutes
April 2, 1985
Page 3
RONALD McARTHUR
It was announced that Ronald McArthur has applied for retirement,
after twenty years of service, effective April 12, 1985. Chairman
Grimes, seconded by Reagan, made a motion to add McArthur to the Pension
List for April, effective from April 12th. The motion passed unanimously.
ADJOURNMENT
With no further business, the meeting adjourned at 3:30 P.M.
ALD L. GRIMES, CHAIRMAN