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.