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