HomeMy WebLinkAbout1979-04-02 MinutesMINUTES OF A FIREMEN'S PENSION
AND RELIEF BOARD
MEETING
A meeting of the Firemen's Pension and Relief Board was held on Monday,
April 2, 1979, at 4:30 P.M., in the City Controller's Office, City Administration
Building, Fayetteville, Arkansas.
PRESENT: Chairman Don Grimes, Treasurer Pat Tobin, Secretary Angie Medlock,
Fire Chief Paul Logue, Roy Cate, Larry Freedle, and Dennis Ledbetter.
ABSENT: Troy Schader.
Chairman Don Grimes called the meeting to order.
MINUTES
The minutes of the March 5, 1979, meeting were approved as submitted.
INVESTMENTS
Treasurer Pat Tobin explained that the Federal Reserve is concerned about
Arkansas banks not following guidelines for issuing Certificates of Deposit.
He explained that in the past Arkansas banks have given the $100,000 rate
for lesser amounts, and the banks have been told by the Federal Reserve that
they could not issue any more Certificates of Deposit for the prime rate for
deposits of less than $100,000. He said the banks would be able to give a
maximum of 7 3/4% interest, based on thla longest Certificate of Deposit they
have which is eight years, and the Savings and Loans could pay 8% interest on
a one-year certificate of deposit. He noted however, that the pension fund
could invest the money in a current money market certificate for six months
at the rate of 9.437%.
Mr. Grimes suggested working towards combining the fire pension deposits to
get a $100,000 deposit. Mr. Grimes asked if the current money market deposits
would be legal investments for the pension fund and Mr. Tobin said they would
be. Tobin asked the board if they would have any reservations about combining
the pension fund money with other restricted funds such as police pension
funds or the water/sewer revenue fund. He explained that he has done this
with the police pension funds and has not had any problems.
Mr. Tobin said there are currently two investments due: $14,000 at Northwest
National and $20,000 at the Bank of Elkins. He also stated that there would
be $17,000 coming due April 6 at Northwest National Bank.
Paul Logue moved to leave these three investments at the banks where they
presently are, and invert them back on a current money market certificate for
six months, with the understanding that in six months they would combine these
with other money coming due ($78,000 at First Federal) for a $100,000 Certificate
of Deposit. Roy Cate seconded the motion, which passed unanimously.
Treasurer Tobin said he had borrowed $1,000 from the General Fund to pay
the Fire Pension for the month of April and asked for authorization to repay
this amount to the General Fund.
Paul Logue moved to repay from the Firemen's Pension fund to the General
Fund $1,000 which was borrowed to pay the pension for the month of March.
Larry Freedle seconded the motion which passed unanimously.
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Pat Tobin said he had not discussed the possibility of a current money
market certificate with the Bank of Elkins for the $20,000 which has
come due there and the Board agreed that if the Bank of Elkins will not
give thecurrent money market rate on a six-month certificate of deposit,
they would bring the money to one of the Fayetteville banks or savings and
loan companies which would give this rate.
PENSION LIST
Paul Logue, seconded by Dennis Ledbetter, moved to approve the pension
list for the month of April. The motion passed unanimously.
There being no further business, the meeting adjourned at 5:10 P.M.
APPROVED:
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