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HomeMy WebLinkAbout1986-01-06 MinutesMINUTES OF A MEETING OF THE FIREMEN'S RELIEF & PENSION FUND BOARD A meeting of the Firemen's Relief and Pension Fund Board was held on Monday, January 6, 1986 at 4:00 P.M. in Room 313 of the City Adminis- tration Building, 113 West Mountain Street. PRESENT: Chairman Jim Murphy, Treasurer Scott Linebaugh, Secretary Suzanne Kennedy, Fire Chief Mickey Jackson, Firemen Gary Springston, Darrell Judy, Pete Reagan, and John Dill CALL TO ORDER The meeting was called to order by Chairman Jim Murphy. MINUTES It was moved by Judy, seconded by Reagan and unanimous to approve the Minutes of the November 4 and December 9 meetings. PENSION LIST It was moved by Dill, seconded by Judy and unanimous to approve the Pension List for January. OLD BUSINESS INVESTMENTS Linebaugh reported on investments made in December, according to the the Board's instructions at the last meeting: First Federal of Arkansas was awarded the bid for 180 days, at the rate of 7.65%, for a C.D. in the amount .of $312,657.46, for a term beginning December 19, 1986, maturing June 17, 1986. First Federal of Arkansas was awarded the bid for 365 days, at the rate of 8.00%, for a C.D. in the amount of $312,000, for a term beginning December 19, 1985 and maturing December 19, 1986. Linebaugh noted that no bids were received on these investments from either Mcllroy Bank or Northwest National Bank. Firemen's Relief and Pension Fund Board Minutes January 6, 1986 Page 2 It was moved by Reagan, seconded by Springston, and unanimous, to approve the investments. PLEDGING REQUIREMENT Linebaugh reported on information he received regarding interest which could be attained at local and Little Rock banks, with and pledging. Amount of Security $100,000 $300,000 $100,000 $300,000 $100,000 $300,000 $100,000 $300,000 $100,000 $300,000 Bank Mcllroy N.W. National Union, Little Rock Worthen, L.Rock 1st Commercial Little Rock rates without Interest Rate 7.75 with no pledging 7.5 with pledging 8.15 with no pledging no bid with pledging 7.5 with no pledging 7.0 with pledging 7.75 with no pledging 7.5 with pledging 7.8 with no pledging 7.3 with pledging Linebaugh discussed the difference in interest which can be attained between a Money Market checking account earning 8% and a regular checking account earning 5.75%. Linebaugh explained that, with the average balance of the Pension Fund's checking account being $34,711, if the account was earning the higher rate, there would be maximum of $781 more per year to be earned on the account. Linebaugh pointed out that the Fund would still have to maintain some other type of checking account. Linebaugh also reported that the FDIC requires 12% of any governmental security to be held by the federal government in a non-interest-bearing account. Springston asked why Mcllroy and Northwest National had not bid on the last investments. Linebaugh stated they did not have the pledging and didn't want to acquire it. Firemen's Relief and Pension Fund Board Minutes January 6, 1986 Page 3 REPORT FROM MERRILL-LYNCH Merrill -Lynch presented a report on investments made in December. That report is included as part of the minutes. ADJOURNMENT With no further business, it was moved by Reagan, seconded by Jackson, and unanimous, to adjourn the meeting at 4:45 P.M.