HomeMy WebLinkAbout1982-07-12 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 12, 1982, at 4:30 p.m. in the City Manager's Office, City Administration
Building, Fayetteville, Arkansas.
PRESENT: Chief Paul Logue, City Manager Don Grimes, Firemen Johnson, Boudry,
Dill, and Springston, Treasurer Scott Linebaugh, and Secretary Sherry Rowe.
ABSENT: None
CALL TO ORDER
City Manager Grimes called the meeting to order.
MINUTES
The minutes of the June 2, 1982, meeting were approved as submitted.
PENSION LIST
There were no changes in the pension list. Motion was made and seconded to
approve the list as submitted. Upon roll call the motion passed unanimously.
OLD BUSINESS
Capital Notes. Mr. Linebaugh stated that the three points he outlined in
the last meeting needed to be considered when determining if the fund should
invest in capital notes: (1) Mcllroy Bank is requesting pension fund support
with the belief that the banks and local community have helped the pension
fund and that the pension support in these capital notes would help the bank
and local community thrive; (2) the capital notes do not follow our current
policy in that they are unsecured and uninsured; and (3) that if the pension
fund were to purchase Mcllroy Bank's capital notes, the other local institutions
would request similar participation in their capital notes. Mr. Grimes asked
about the Board liability regarding investing in capital notes. Mr. Linebaugh
stated that Mr. McCord stated the Board could legally invest in capital notes.
The money would have to be invested for a 7 year period as there are no shorter
term periods for capital notes.
After general discussion, the Board decided due to the fact that the money
would be tied up for 7 years and because the capital notes are uninsured and
unsecured, investing in them would not be acceptable. Motion was made and
seconded to not invest in the capital notes. The motion passed unanimously.
Savings and Loans. Mr. Linebaugh stated that the investment policy
could be reconsidered to allow additional investments to be bid upon by savings
and loans. After general board discussion, the Board decided to change the
investment policy so that savings and loans with home offices in the City of
Fayetteville would be allowed to bid on investments. The Board decided to
limit the maximum amount to be invested with the savings and loans to $350,000.
Motion was made and seconded to allow savings and loans with home offices in
the City of Fayetteville to bid on investments, and the savings and loans would
have to follow the same rules and regulations banks do regarding pledging of
government securities to back the investments. On July 26, a CD for $180,000
plus $35,000 from savings will be combined and let for bids to local banks and
to the home office savings and loans. Upon roll call the motion passed unanimously.
Benefit Changes. Mr. Linebaugh stated that the State Auditor's Office
needed a resolution from the Board requesting the actuarial study and possible
benefit increase if the pension fund could financially afford it. Motion was
made and seconded to amend the July 6 resolution to request the State Auditor's
Office to conduct an acturial study using Act 293/294. Presently, only retired
members of the pension fund will be affected by the proposed increase. Under
alternate 1, the total monthly increase would be $291, and under alternate 2,
the total monthly increase would be $711 per month. The rate increase would
be in effect as of June 30, 1982. Upon roll call the resolution passed
unanimously.
.NEW BUSINESS
Mr. Linebaugh stated there would be two investments due in July: (1) On
July 18, $275,405 currently drawing 14.35% would be due and (2) on July 26,
$180,000 already in a CD and an additional $35,000 from savings would be
invested. The $180,000 is currently drawing 14.55%. The $215,000 will be put out
to bid to local banks and home office savings and loans.
The rates have dropped within the last week, but the predictions are that
after the first of the year, the interest rates will increase. After general
discussion on the length of time to invest the money, motion was made and
seconded to invest in 6 -month CD's. Upon roll call the motion passed
unanimously.
ADJOURNMENT
There being no further discussion, the meeting adjourned at 5:00 p.m.
herry Rowe Secretary
onald L. Grimes, Chairman