HomeMy WebLinkAbout1985-05-06 MinutesMINUTES OF A FIRE PENSION RELIEF BOARD MEETING
A meeting of the Fire Pension Relief Board was held on Monday, May 6, 1985 in
Room 313 of City Hall.
PRESENT: Chairman Don Grimes, Treasurer Scott Linebaugh, Secretary Suzanne
Kennedy, Fire Chief Paul Logue, Firemen Judy, Reagan and Springston
ABSENT: Fireman Dill
CALL TO ORDER
The meeting was called to order by Chairman Grimes at 4:30 P.M.
MINUTES
The minutes of the April 2, 1985 meeting were approved as circulated.
PENSION LIST
It was moved by Judy, seconded by Reagan and passed unanimously, to approve
the Pension List for May.
OLD BUSINESS
Investments
Linebaugh reported that, per instructions from the Board at the last meeting,
a $260,000 Treasury Note was purchased on April 19, 1985 at the rate of 11.0%,
which will mature on February 15, 1990. Linebaugh reported there was a $25
fee and a $10 transfer fee, but that $252,205 in interest, paid semi-annually,
would be received in five years.
Upon a motion by Reagan and a second by Springston, the investment was unanimously
approved.
Linebaugh asked the Board to consider the following investments due to mature:
Fire Pension Relief Board
May 6, 1985
Page 2
Bask Security Purchase Maturity Period Cost Rate
1st Nat'l 11753 11-20-84 5-21-85 $433,000 10.100%
1st Fed'l 01442 10-31-84 5-29-85 30 days $220,000 10.900%
1st Fed'l 298247 3-5-85 6-3-85 30 days $517,294.44 9.200%
N.W. Nat'l 12066 3-4-85 6-3-85 $496,000 9.085%
Linebaugh reported on available local rates.
Period Rate
90 days 8.15%
180 days 8.30%
360 days 8.90%
2 year Treasury Bill 9.69%
5 year Treasury Bill 10.70%
Linebaugh reported that well-known investors estimate that rates will fluctuate
between now and the end of the year, to be down one whole percentage point by
the end of the year.
Linebaugh reported that First South is asking to participate in bidding on the
investments, that he is now in the process of obtaining information regarding
their financial condition. Linebaugh stated he thought the Board should consider
them if their condition is found to be sound.
Linebaugh recommended also that the Board consider investing in more Treasury
Bills. Linebaugh noted that the market was down but commented that there is
so much coming due in the next month that he would recommend combining the invest-
ments which will mature on June 3, and splitting that amount into a Treasury
Bill and a 180 -day Certificate of Deposit. He recommended a short term investment
for the C.D. to mature on May 21st, and a 90 -day investment for the C.D. due
to mature on May 29th.
Fireman Reagan asked about the Bank of Elkins' participation in bidding on the
investments. Linebaugh responded that their bids have been so low that they
have not been competitive.
It was moved by Springston, seconded by Logue, and passed unanimously, to invest
$220,000 for five years in a Treasury Note, $496,000 for five years in a Treasury
Note, $443,000 for 90 days and $517,294.44 for 180 days; and to take bids from
First South.
Fire Pension Relief Board
May 6, 1985
Page 3
NEW BUSINESS
Linebaugh reported that investment firms contact him almost daily and he asked
the Board if they wished to consider scheduling all of them in one day to talk
with the Board members. It was the general feeling of the Board members to
hold off on inviting the investment firms to speak to the Board.
Linebaugh asked for the Board's feeling regarding investing in stocks. Linebaugh
commented that, although it is possible to make more money, it is speculative
and he questioned whether the Board should speculate with the funds. It was
the consensus not to consider investing in stocks.
OTHER BUSINESS
It was announced that Marion Doss had completed twenty years of service with
the Fire Department and that a Certificate was on file.
ADJOURNMENT
With no further business to consider, it was moved by Reagan, seconded by Judy,
and passed unanimously, to adjourn the meeting at 5:00 P.M.
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DONALD L. GRIMES, CHAIRMAN