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HomeMy WebLinkAbout1980-07-07 MinutesMINUTES OF A FIREMEN'S PENSION AND RELIEF BOARD MEETING A meeting of the Firemen's Pension and Relief Board was held on Monday, July 7, 1980, at 4:40 P.M. in the City Manager's Office, City Administration Building, Fayetteville, Arkansas. PRESENT: Chairman Don Grimes, Treasurer Scott Linebaugh, Secretary Bonnie Goering, Members Paul Logue, Gene Warford, Troy Osburn, Ralph Tate, and Larry Freedle.' ABSENT: None CALL TO ORDER Chairman Grimes noted that the minutes of May 5, 1980, should be corrected to reflect that Gene Warford, seconded by Larry Freedle, moved to approve the pension list for the month of May as submitted (there were no changes or additions). The minutes of the June 2, 1980 meeting were approved as submitted. PENSION LIST The Chairman noted that Bill C. Harris was added to the pension list beginning with the month of June, but there are no changes or additions to the pension list for the month of July. Freedle, seconded by Warford, moved to approve the pension list for the month of July as submitted. OLD- BUSINESS Chairman Grimes said that he was not sure if he, the Treasurer, and the Secretary are voting members of the Firemen's Pension and Relief Board, but that the City Attorney would have an opinion soon. INVESTMENTS Treasurer Linebaugh reported that $77,000 and $164,000 certificates of deposit are coming due in July. He said that long-term investments are currently earning 7.8 percent; 90 -day, 8.75 percent; and predictions from bankers are that the rate will drop lower and then go back up again. There was some discussion as to whether to invest in 90 -day, 6 -month, or one-year certificates of deposit, and Linebaugh recommended 6 -month; that if they went with one-year, the interest rate would be low. After a short discussion, it was agreed to go with 6 -month certificates of deposit. Linebaugh said that the savings account does not yet have $40,000. He suggested taking whatever is in savings to combine with the $77,000 and take whatever difference from the $164,000 to get two different certificates of deposit over $100,000 each to invest for 6 months. He said the upturn is predicted to come the second quarter next year, but that 6 -month certificates are now earning 8.25 percent. Linebaugh also reported that there is one savings account that Fire and other City funds use and that the interest is all divided out. He said he checked the minutes and there is no mandate specifying otherwise. Osburn and Warford agreed they would like to keep the Fire separate. Linebaugh said that the interest is not being deposited directly into a savings account because of the way the accounting system is set up and that the minutes do not mandate that it be done. He said the savings account is considered an investment so it has to be put into a cash account and trans- ferred to the savings account, but that it can be separated by redoing the books. Paul Logue said this would not be necessary. In response to Warford, Linebaugh said some interest is earned monthly and some quarterly. Tate, seconded by Freedle, moved to invest the $164,000 coming due July 17 in a 6 -month certificate of deposit and the motion passed unanimously. Freedle, seconded by Warford, moved to combine money from the savings account with the $77,000 certificate coming due July 25 to invest a $100,000 6 -month money market certificate. The motionpassed unanimously. OTHER BUSINESS Linebaugh said the auditors are required by law to take every dollar and trace it through with elaborate schedules. He said they take all millage and every dollar of income and make sure it all goes to the right place. Grimes said the auditors would be glad to talk to them at any time. He said they would be here for the Water/Sewer Audit the first of August and that the City changes auditors every third year. ADJOURNMENT There being no further business, the meeting adjourned at 5:00 P.M. ATTEST: APPROVED: FoR PONAt, c , 6Rr�FJ ona ' L Imes, Chairman