HomeMy WebLinkAbout1988-02-25 MinutesMINUTES OF A FIRE PENSION BOARD MEETING
A meeting of the Fayetteville Fire Pension and Relief Fund Board was held on
Thursday, February 25, 1988 at 1:30 p.m. in Room 313 of City Hall, 113 West
Mountain Street, Fayetteville, Arkansas.
PRESENT: Chairman Jim Pennington, Secretary Suzanne McWethy, Firemen
Pete Reagan and John Dill, and Retiree Carl Springtson
ABSENT: Fire Chief Mickey Jackson, Fireman Mike Bonaduce
OTHERS PRESENT:
CALL TO ORDER
Assistant City Manager Scott Linebaugh, Accounting
Supervisor Zelda Parson, Curtis Williams and
Richard Yada representing Merrill -Lynch
The meeting was called to order by the Chairman.
MINUTES
It was moved by Reagan, seconded by Dill and unanimous, to approve the
Minutes of the last meeting.
PENSION LIST
It was moved by Dill, seconded by Springston and unanimous, to approve the
Pension List for the month of March.
CITY ATTORNEY'S OPINION
Referring to an Opinion from City Attorney McCord, Pete Reagan asked if the
Board was covered under the same statute which applies to the Police Pension
Board. Reagan said he had asked McCord to check this for him, so the Board
can have this information for its next meeting.
NEW BUSINESS
Linebaugh distributed material on investments and told the Board the next
investments to mature will do so on May 29 and June 1, 1988.
MERRILL LYNCH REPORT
Curtis Williams, speaking for Merrill -Lynch, distributed material to the
Board. Williams said the firm may want to make some adjustments in the
Fire Pension Board Minutes
February 25, 1988
Page Two
handling of the Board's investments. He said the firm may want to put
together a portfolio that would earn a rate somewhere between that earned by
stocks and by bonds, with some funds invested in stocks, some in bonds and
some in C.D's and Treasury's, in order to "beat the 2% split on inflation"
and to improve the fund's actuarial soundness.
Richard Yada asked if the Board had adopted an investment policy since
Cathyrn Hinshaw's September letter. He distributed questionnaires to the
Board members which he said would be used to propose an investment policy.
Yada reported on the Equity Account.
with $507,000, had a present value
the Income Account, Yada reported the
a present value of $1,844,894 and was
He said the account, which started
of $475,519 and was down about 6%. On
original investment of $1,645,000 had
up 12%.
Yada said he would draw up an investment policy after he receives the
questionnaires back from the Board members, to present at the next meeting.
Portfolios were passed out from two other cities showing their purchases of
bonds. The Board was urged to consider in future months the possibility of
purchasing corporate bonds.
John Dill asked about the status of the M -L Lee investment. Williams
reported this was doing very well. He said the stock market crash had no
downward effect on the potential of that investment.
Reagan said he thought it would be
policy, and also thought the Board
kept locally to pay the retirees.
next meeting - the question of how
year.
ADJOURNMENT
a good idea to come up with an investment
needed to decide how much money should be
He said he would bring that up at the
much money it would take per month or per
With no further business, the meeting adjourned at 2:20 p.m.