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
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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
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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.