HomeMy WebLinkAbout1985-12-09 MinutesMINUTES OF A REGULAR MEETING OF THE FIREMEN'S RELIEF & PENSION FUND BOARD
A regular meeting of the Firemen's Relief and Pension Fund Board was
held on Monday, December 9, 1985 at 4:30 P.M. in Room 313 of City
Hall.
PRESENT: Acting City Manager H. James Murphy (as Chairman),
Treasurer Scott Linebaugh, Secretary Suzanne Kennedy,
Fire Chief Mickey Jackson, Firemen Dill, Judy, Reagan
and Springston.
The meeting was called to order by Chairman Murphy.
PENSION LIST
A motion was made by Dill, seconded by Judy, and passed unanimously,
to accept the Pension List for December.
OLD BUSINESS
Investments
Linebaugh distributed detailed information regarding the investment
made, per the Boards instructions at the last meeting, in a Zero
Coupon. Linebaugh explained that the best maturity date which could
be obtained was for February 15, 1991, and that A. G. Edwards had
the best price and interest rate. Linebaugh reported their yield
rate was 9.56 and their price was 6.1341. Linebaugh explained that
two Certificates of Deposit which matured, in the total amount of
$739,000, were combined with about $30,000 in new money to make up
one Zero Coupon in the amount of $1,250,000, at a cost of $766,766.52,
including a $10 fee.
Linebaugh reported that on December 2, two other Certificates of Deposit
matured, amounting to a total of $1,021,000. Linebaugh reported both
were cashed, $21,000 was kept, and Merrill -Lynch was given $1 million
to deposit in a trust fund until they make their stock purchases.
Linebaugh distributed an updated recap of the investments as of November
30.
It was moved by Judy and seconded to accept the investments made per
the instructions of the Board. The motion passed, 7-1, with Reagan
voting in the minority.
Firemen's Relief & Pension Fund Board
December 9, 1985
Page 3
Reagan noted that the Board had adopted a regulation which stated
that a bid from a non -Fayetteville financial institution had to be
at least 1% higher before it would be accepted. Reagan asked if this
was a wise policy.
Linebaugh remarked that, unless the Little Rock banks have changed,
the Board will not make enough of a profit to make it worthwhile.
He noted that the pledging requirement limits a lot of the financial
institutions from bidding. Linebaugh explained that there are also
pledging requirements demanded by federal law. Linebaugh stated that,
between now and the April meeting, he would check with some out-of-town
banks, particularly Worthen, regarding whether they wish to submit
bids.
There was discussion of a $100,000 limitation on investments at any
one bank.
With no further business, the meeting adjourned at about 5:10 P.M.