Loading...
HomeMy WebLinkAbout1983-08-01 MinutesMINUTES OF A MEETING OF THE FIREMEN'S PENSION RELIEF BOARD A meeting of the Firemen's Pension and Relief Board was held on Monday, August 1, 1983, at 4:30 P.M. in the City Manager's office, Interim City Hall, Fayetteville, Arkansas. PRESENT: Chairman Grimes; Treasurer Linebaugh; Fire Chief Logue, Firemen Dill, Springston, Judy and Boudery; and Secretary Griffin CALL TO ORDER The meeting was called to order by Chairman Grimes. MINUTES With no corrections to be made to the minutes of the July 11, 1983 meeting, the Committee informally approved the minutes as distributed. PENSION LIST There being no changes to the Pension List of August, 1983, Chairman Grimes, seconded by Fireman Boudery, made a motion to approve the Pension List as submitted. The motion passed unanimously. OLD BUSINESS Treasurer Linebaugh stated that the following investments matured during the month of July and were reinvested: July 18, CD#25171, First National Bank, $275,405, at 8.45%, reinvested with Northwest National, CD#11723, at 9.587%; July 19, CD#11753, Northwest National, $125,800, at 8.47%, reinvested with Northwest National, CD#11724, at 9.615%; July 25, CD#11709, Northwest National, $220,000, at 8.29%, reinvested with Northwest National, CD#11791, at 9.515%; Treasurer Linebaugh noted that $125,000 was added to the CD, of which $102,289 came from the State Insurance Fund and $22,711 from interest on our current investments. July 26, CD#01261, First Federal, $195,000 at 8.25%, re- invested with First Federal, at 9.65%, CD#01275. Firemen's Pension and Relief Board August 1, 1983 Page - 2 - The following investment matured August 1, 1983 and was reinvested: CD#11759, Northwest National, $312,000 at 8.23%, reinvested with Mcllroy Bank & Trust, CD#22611, at 9.63%. Fireman Springston, seconded by Dill, made a motion to approve the investments as they were made. The motion passed unanimously. STATE INSURANCE TURNBACK CHECK Treasurer Linebaugh stated that in answer to a Committee request at the last meeting to see when the State Insurance turn - back check would be coming in, it had just been received, in the amount of $110,606.67. He added that under the new rules with the LOPFI Pension System, this check would have to be split up between the LOPFI system and this Pension Board; therefore, $8,317.62 had to be given to the LOPFI System for the four Firemen that come under this system; the remainder went to this local pension system. NEW BUSINESS Treasurer Linebaugh stated that the following investments will be made in August: 8/8, CD#22341, currently with Mcllroy Bank & Trust, $420,595, at 8.13%; 8/22, CD#22395, currently with Mcllroy Bank & Trust, $303,000, at 8.63%. He added that there should be approximately $30,000 that will be accumulated in interest that will bring the total of this, CD up to $333,000. Treasurer Linebaugh recommended 90 -day certificates again, noting that at this time, interest rates would be close to peaking out. He said that rates are currently 9.10% for 30 day certificates, 9.30% for 90 day certificates, 9.70% for 180 day certificates, and 9.50% for one-year certificates. Fireman Springston asked if interest rates are close to peaking, wouldn't it be better to make investments for a little longer term. Mr. Linebaugh responded that we would need to act before the rates go back down, but he thought that there was still a little time before the rates peak, and he did not feel it advisable to tie up all the Pension Board's funds in long-term investments. Firemen's Pension and Relief Board August 1, 1983 Page - 3 - After general discussion, the Committee instructed the Treasurer to take bids for 90 day investments on these certificates and invest them with the highest bidder. In further general discussion, the question was raised as to how "strong" Northwest National Bank was. Treasurer Linebaugh said that with respect to banking standards, they were a pretty strong bank and would rank, statewide, among the top. He further stated that our investments were backed by Federal Government Securities. ADJOURNMENT With no further business before the Conmiittee, the meeting adjourned at 4:40 p.m.