Loading...
HomeMy WebLinkAbout1985-11-04 MinutesMINUTES OF A REGULAR MEETING FIREMEN'S RELIEF AND PENSION FUND BOARD A regular meeting of the Firemen's Relief and Pension Fund Board was held on Monday, November 4, 1985 at 4:30 P.M. in Room 313 of City Hall. PRESENT: Chairman Don Grimes, Treasurer Scott Linebaugh, Secretary Suzanne Kennedy, Fire Chief Mickey Jackson, Assistant Chief Boudrey, Firemen Dill, Judy, Reagan and Springston CALL TO ORDER Chairman Don Grimes called the meeting to order. MINUTES Pete Reagan made a motion to approve theminutes of the regular meeting of October 7, 1985. The motion was seconded by Gary Springston and passed unanimously. Gary Springston made a motion to approve the minutes of the special meeting of October 28, 1985. John Dill seconded the motion and it was passed unanimously. PENSION LIST Darrell Judy made a motion to approve the Pension List for November. The motion was seconded by Pete Reagan and passed unanimously. OLD BUSINESS Fire Chief Mickey Jackson asked how frequently RNC Capital Management Company would provide reports to the Board regarding the status of invest- ments. It was clarified that RNC would make quarterly reports but that Merrill -Lynch had promised to report on a monthly basis if the Board wishes them to do so. Investments Scott Linebaugh reported that two Certificates of Deposit which matured on October 21 and October 28 have been reinvested per the Board's instructions at the last meeting. Linebaugh stated the C.D. which matured on October 28th had been earning 11.1%; the other was held at First Federal of Fayette- ville and was earning 11.75%. Linebaugh reported the bid was won by First Firemen's Relief & Pension Fund Board November 4, 1985 Page 2 Federal of Arkansas, for 182 days, at a rate of 7.95%, and the total amount invested was $324,000 ($250,000 in C.D.'s plus additional money). Linebaugh noted that Treasury Bills at that time would have earned 7.625%. He also noted that First Federal of Fayetteville did not bid on the investment as they are reorganizing and dropping down on government investments. Darrell Judy made a motion to approve the investment as made by Linebaugh per the instructions of the Board. The motion was seconded by Springston and passed unanimously. Linebaugh reported that between now and the next meeting four Certificates of Deposit will mature, and that the majority of the funds from two of the C.D.'s will be reinvested by Merrill -Lynch. Linebaugh said, of the other two C.D.'s, one in the amount of $589,000 will mature on November 18 and the other, in the amount of $150,000, will mature on November 21. Linebaugh reported on local available rates: Term Interest Rate CERTIFICATES OF DEPOSIT: 90 days 180 days 1 year 2 years TREASURY'S: GNMA'S: 180 days 1 year 2 years 7.25% 7.35% 7.50% 8.25% 7.58% 7.80% 8.68% 5 years 11% range Linebaugh reported that an investment in a "Guaranteed Investment Trust Fund" will earn approximately 11% at the present time, but that there is a withdrawal penalty before five years. Linebaugh reported that Zero Coupons are presently earning 10%-10 1/2% over a six-year term. Linebaugh stated that about 1/3 of the fundis now in short-term investments, and that, with approximately $1 million which can be invested by Merrill - Lynch, the remainder of the fund could be invested over the long term. Linebaugh recommended that 1/2 of the amount due to be reinvested now be invested in a Zero Coupon and the other 1/2 in a government investment Firemen's Relief & Pension Fund Board November 4, 1985 Page 3 trust -- or that all the funds due for reinvestment be invested in a government investment trust. There was some discussion regarding where to trustee the funds which will be invested by Merrill -Lynch. Pete Reagan stated that Merrill -Lynch had offered to trustee the money locally at the Merrill -Lynch office at no charge. John Dill expressed a preference for trusteeing the funds at a bank. Linebaugh pointed out that, at this time, First National Bank has no trust officer and that Northwest National Bank does not have a Trust Department. Springston made a motion that the investments maturing on November 18 and November 21 be combined and put in a 5 -year Zero Coupon with whomever gives the best interest rate. Boudrey seconded the motion. In answer to a question from the Chief, Linebaugh stated the Zero Coupon had a minimum term of five or six years. John Dill stated he would not be in favor of an investment with a term over five years. He suggested, if the term is over five years, the investment be made in a two-year C.D. or a 2 -year Treasury Bill, whichever earns higher interest. The motion passed, 6-1, with Reagan voting against the motion. It was moved, by Reagan, seconded by Boudrey, and passed unanimously, to adjourn the meeting at about 5:03 P.M.