HomeMy WebLinkAbout1985-07-11 MinutesMINUTES OF A FIRE PENSION RELIEF BOARD MEETING
A meeting of the Fire Pension Relief Board was held on Thursday, July
11, 1985 at 4:30 P.M. in Room 313 of City Hall, 113 W. Mountain Street,
Fayetteville, Arkansas.
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.
MINUTES
The minutes of the June, 1985 meeting were approved as submitted.
PENSION LIST
It was moved by Reagan, seconded by Judy, and unanimous, to approve
the Pension List for July.
OLD BUSINESS
Linebaugh reported that a C.D. held at First Federal of Arkansas in
the amount of $571,000, at the rate of 9.1%, matured on June 19th.
He explained that a Treasury Bill was purchased through First National
Bank for a term of 182 days, with a 7.16% interest rate (the highest
rate which was bid of the three banks which submitted bids). Linebaugh
noted that the market is going to stay low for awhile.
It was moved by Springston, seconded by Reagan, and unanimous, to
approve the investment made per the Board's instructions.
Linebaugh reported that a $120,000 C.D. held at First Federal of Arkansas
is due to mature on July 24 and can be invested along with $30,000
in savings. Linebaugh reported on current available rates:
Fire Pension Relief Board Minutes
July 11, 1985
Page 2
Term
90 days
180 days
1 year
2 years
T -BILLS
2 years
5 years
Interest Rate
7.35%
7.5%
7.85%
8.00%
8.65%
9.50%
Linebaugh recommended going out for bids for
to determine the best rates on both types
recommended a short-term investment, such as
After discussion, and with Logue suggesting
agreed to take quotes for 120 days.
NEW BUSINESS
C.D's and Treasury Bilis,
of investments; he also
90 days.
a longer term, the Board
Linebaugh distributed copies of a June 5 memo from LOPFI (Arkansas
Local Police & Fire Retirment System and Pension Review Board) which
addresses Act 6 of 1985 -- the provisions do not require the Board
to expand its investment portfolio but, should they decide to do so,
requires them to hire a professional investment advisor. Linebaugh
recommended the Board improve its portfolio by investing in "zero
coupons", by purchasing them through an investment firm at some time
in the future (since rates are too low right now). Linebaugh explained
that the coupons are government securities which earn higher interest
rates.
Linebaugh asked the Board to decide whether to continue to put off
the many investment firms which contact the city staff -- or whether
to schedule presentations by all the firms which have been contacting
the staff. Springston stated he had met with Merrill -Lynch who said
they would prefer to make a presentation to the Fire Department.
Linebaugh noted that, because the Board had agreed to hold off on
inviting the investment firms to give presentations, he has been turning
down requests from all the firms which have been making requests.
Grimes remarked that he would be opposed to allowing firms to meet
with the Fire Department before meeting with the Fire Pension Board.
Grimes stated also that he was still in support of the Board's present
conservative approach to investments. Springston stated he would
like to have the Board hear a presentation from Merrill -Lynch. Reagan
commented that he would like to hear presentations from both Merrill -Lynch
and other firms. Linebaugh, with Chief Logue concurring, suggested
Fire Pension Relief Board Minutes
July 11, 1985
Page 3
the Board review all the firms and than narrow them down to one or
two firms which could then make a presentation to the department.
It was agreed that Linebaugh would schedule presentations by three
or four firms.
Reagan reported that, pursuant to Act 927 of 1985, Section 2 provides
that the Fire Pension Board's membership shall include:
Chief Executive Officer of the Municipality
City Clerk
Fire Chief
3 active members of the Fire Department
1 retiree
Reagan added that the Act provides for the retiree to be chosen in
May of every even numbered year. Reagan commented that he thought
there should be some stipulation regarding how many meetings can be
missed before being dropped from the Board. He suggested a notice
be sent out in pension checks, asking the retirees to express any
interest in being nominated to the Board. He noted that the term
of membership would be for two years. It was decided that some ground
rules would be set on how the retiree member would be chosen, before
contacting the retirees.
ADJOURNMENT
With no further business, it was moved by Reagan, seconded by Judy
and unanimously approved to adjourn the meeting at 5:07 P.M.
C IRMAN