HomeMy WebLinkAbout1983-04-11 MinutesMINUTES OF FIREMEN'S PENSION AND RELIEF BOARD MEETING
A meeting of the Firemen's Pension and Relief Board was held on Monday, April
11, 1983, at 4:30 p.m., in the City Manager's Office, Interim City Hall, Fayetteville,
Arkansas.
PRESENT: City Manager Grimes, Treasurer Linebaugh, Fire Chief Logue, Firemen Dill,
Springston, and Boudrey, and City Clerk/Kelly.
ABSENT: Fireman Johnson
CALL TO ORDER
City Manager Grimes called the meeting to order.
MINUTES
Fireman Dill, seconded by Fireman Boudrey, made a motion to approve the minutes
of the meeting of the Pension Board of March 7, 1983. Upon roll call, the motion
passed unanimously.
PENSION LIST
There being no changes to the Pension List of April, 1983, Fireman Dill,
seconded by Chief Logue, made a motion to approve the Pension List as submitted.
Upon roll call, the motion passed unanimously.
OLD BUSINESS
Treasurer Linebaugh stated that the Pension Board had an investment at Mcllroy
Bank, under CD#21437, in the amount of $165,000, which was turned into CD#11747,
at Northwest National, and invested for 30 days at 8.72%.
Fireman Springston, seconded by Fireman Dill, made a motion to approve this
investment. Upon roll call, the motion passed unanimously.
NEW BUSINESS
Treasurer Linebaugh stated that the following investments will take place in
the latter part of April and early May. They are: 4/19/83, CD#11734, at Northwest
National Bank, in the amount of $275,405, at 7.9%; 4/20/83, CD#21912, at Mcllroy
Bank, in the amount of $125,800, at 8.020%; 4/26/83, CD#01241, at First Federal,
in the amount of $220,000, at 8.5%; 4/27/83, CD#11747, at Northwest National,
in the amount of $165,000, at 8.72%; and 5/3/83, CD#11701, at Northwest National,
in the amount of $312,000, at 8.53%. Mr. Linebaugh stated that approximate current
rates are: 30 days -8.60%; 90 days -8.70%; 180 days -9.00%; and 1 year -8.75%. He
added that the short term is apparently continuing to climb, while the long-term
remains level. Mr. Linebaugh's recommendation was to invest the CDs at 90 days, at
an estimated rate of 8.70%. He added that interest money would be included in one
of these investments.
Fireman Boudrey, seconded by Fireman Dill, made a motion to approve the
investments of the CDs noted above, at an estimated rate of 8.70%, for 90 days.
Upon roll call, the motion passed unanimously.
In a related matter, Mr. Linebaugh referred to alternative investment possibilities,
which had been prepared for the Pension Board by A.G. Edwards & Sons, Inc. He stated
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that the Pension Board is eligible to invest in either U.S. Treasury Notes or Federal
National Mortgage Association obligations (FNMA). The U.S. Treasury Notes can be
obtained at the rate of 9.70%, but must be invested for a long term, ending 3/3/87.
Another alternative investment to be considered is Zero Coupon Bonds. However, with
regard to GNMA (Government National Mortgage Association) obligations, Mr. Linebaugh
stated that there may be some question as to the eligibility of the Pension Board
for investment in these securities. Mr. Linebaugh asked that the Pension Board
review these options and report to him on their suggestions.
In another matter, Mr. Linebaugh referred to a Memorandum, dated April 5, 1983,
addressed to the Fire Pension Board, from Treasurer Linebaugh. This memorandum
concerns the proposed fire pension benefit increases.
In discussion, Fireman Dill and Fireman Springston stated that they felt several
members of the Fire Department would be interested in reviewing this memorandum and
providing their input. It was determined that the group would review these
proposed benefit increases and be prepared to discuss them at the next meeting of
the Pension Board. Mr. Linebaugh would discuss any other possible alternatives with
Chief Logue and report back to the Pension Board.
ADJOURNMENT
There being no further business, the meeting adjourned at 4:50 p.m.
OLIVIA A. KELLY, SECRETARY0 ALD L. GRIMES, CHAIRN
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