HomeMy WebLinkAbout2005-05-26 - Agendas - Final Firemen's Pension and Relief Fund
Meeting Agenda
May 26, 2005, 2005
A meeting of the Fayetteville Firemen's Pension and Relief Fund will be held at 11 :00 a.m.
on May 26, 2005 in Room 326 of the City Administration Building
1. Approval of the Minutes:
• April 28, 2005 Meeting Minutes
2. Approval of the Pension List:
• June 2005 Pension List
3. Old Business:
• Travel Reconciliation Pete Reagan
• 2005 Elections
• Nichols & Campbell, P.A. - Income Tax refund for Retirees
4. New Business:
• Longer Investment Authorization on Equity Variance of 5%
5. Longer Investments:
• Report
Firemen's Pension&Relief Fund Board of Trustees
Meeting Minutes
April 28,2005
Page 1 of 5
Firemen's Pension and Relief Fund Board of Trustees
Meeting Minutes
April 28, 2005
A meeting of the Fayetteville Firemen's Pension and Relief Fund was held at 11 :00 a.m.
on April 28, 2005 in Room 326 of the City Administration Building.
Marion Doss called the meeting to order.
Present: Mayor Coody, Danny Farrar, Robert Johnson, Ronnie Wood and Sondra Smith, Trish Leach, Marsha
Farthing, Accounting Department, Kit Williams, City Attorney and Adam Wallworth, Northwest Arkansas
Times.
Absent: Marion Doss and Pete Reagan
Approval of the Minutes:
Ronnie Wood moved to approve the March 31, 2005 Special meeting minutes and the March 31, 2005
regular meeting minutes. Danny Farrar seconded the motion. Upon roll call the motion passed 5-0.
Marion Doss and Pete Reagan were absent.
Approval of the Pension List:
Robert Johnson moved to approve the May 2005 Pension List. Ronnie Wood seconded the motion. Upon
roll call the motion passed 5-0. Marion Doss and Pete Reagan were absent.
Old Business:
Hiring an attorney for the TIF lawsuit:
Mayor Coody: I guess you got Kit's memos on why we have to do this.
Kit Williams: Did you get a chance to look at the attorneys response? You can look in your packet of
information and see my letters to the attorneys. They all responded and let me say I think all three of these
attorneys are all highly qualified and experienced.
Firemen's Pension&Relief Fund Board of Trustees
Meeting Minutes
April 28, 2005
Page 2 of 5
Conrad Odom listed his hourly rate at $150.00 per hour. Jim Rose listed his normal rates at $250.00 per hour
but he would be willing to represent the boards for $50.00 per hour. Jack Butt said his attorney fees were
$175.00 per hour. Jack Butt estimated a total cost of$5,000 to $10,000 for this service.
I asked each of these attorneys to estimate how much time it might take them. I pointed out the TIF law was
amended by the legislature with an emergency clause that took effect immediately before our ordinance took
effect. That TIF law changed it and said that pension plans are not in TIF districts. So if that amendment is
effective and constitutional then it is going to be very simple for your attorney to say we are out of it. I sent that
to all the attorneys to let them know that because I thought it might affect their situation they would not have to
do as much analysis as they would have in the past. The decision now is up to you all.
The Police Pension Board met and they voted in favor of Mr. Rose, but of course this is a joint decision and you
all would have to look at these three letters and their qualifications and decide which attorney that you want.
Sondra Smith: I sent the information by email to Pete Reagan, who is out of town. I will also send a copy to
Marion so that he will have a copy of the information also.
Danny Farrar: Do we need to decide at this meeting?
Kit Williams: I would like for you to decide today.
Ronnie Wood moved to approve Jim Rose as the attorney to represent the Firemen's Pension Board
regarding the TIF lawsuit. Robert Johnson seconded the motion. Upon roll call the motion passed 5-0.
Marion Doss and Pete Reagan were absent.
2005 Elections:
Sondra Smith: You should have received a letter stating that five people were nominated. The deadline to
mail the ballot back is May 15, 2005. Be sure and talk to pensioners and let them know how important it is for
those ballots to be retuned by the deadline. We normally do not have five nominees and we do not want to have
a runoff. We will know at the May meeting who has been elected to the board.
New Business:
Nichols & Campbell. P.A. - Income Tag refund for Retirees:
Sondra Smith: We received a letter from this attorney stating that the retirees might be entitled to an income
tax refund. This was a class action lawsuit that was filed by this attorney. They are asking us to supply
confidential information to them. The Policemen's Pension decided to send a letter to the retirees and tell them
they would need to respond to this lawsuit and supply the confidential information. We have recently received
a claim form and instructions from the attorney. The attorney is more than willing to help the pensioners. In
the letter from the attorney he stated to contact the Department of Finance and Administration unfortunately the
Department of Finance and Administration is getting numerous calls so if you have questions you need to
contact the attorney.
Firemen's Pension& Relief Fund Board of Trustees
Meeting Minutes
April 28, 2005
Page 3 of 5
We are trying to compile the information. It will take us some time to gather the information because we have
to go back to the original date that someone starting working for the city.
Kit Williams: I think it is only for four years, 1999 to 2002.
Sondra Smith: Yes, but we have to find their original cost of contribution, and to do that, we have to go back
in the records. We don't mind doing that if the pensioners are entitled to a refund. What the board needs to
decide is if they want us as the city to automatically submit this information to this attorney or to the
Department of Finance and Administration.
Kit Williams: I think the information goes to the Department of Finance & Administration. Keep in mind
when you do your income tax return you give them your social security number. The only thing they may not
have is your date of birth.
Sondra Smith: And the annuity information.
Danny Farrar: What did the Policemen's Pension do?
Sondra Smith: They decided to go ahead and send the pensioners a letter stating if they wanted to participate
in this class action lawsuit they would need to contact one of the two sources. But at that point in time we did
not have the claim form. We have since received additional information from the attorney.
Danny Farrar: So you are saying this is not a preferred route that we should take?
Sondra Smith: I don't think so. I think it would be better if the city supplied the information to the
Department of Finance and Administration. They want it in an electronic format. I don't feel comfortable
doing that without the pensioners knowing we are supplying the information.
Kit Williams: I think it is probably going to be protected records.
Ronnie Wood: They have the information anyway, don't they?
Kit Williams: They have most of it. I don't know that they have the date of birth.
Danny Farrar: So the easiest thing for us to do would be what?
Sondra Smith: Send the information in electronic format to the Department of Finance & Administration, and
send the pensioner a letter stating that there has been a class action lawsuit filed and that we are sending the
information for them. I think if we do it this way, the pensioners will not have to fill out a claim form.
Danny Farrar: Let's go that route.
Firemen's Pension&Relief Fund Board of Trustees
Meeting Minutes
April 28,2005
Page 4 of 5
Danny Farrar moved to send the information directly to the Department of Finance & Administration
and send the pensioners a letter informing them of the lawsuit and that we are supplying the information
to the Department of Finance and Administration. Ronnie Wood seconded the motion. Upon roll call the
motion passed 4-0. Marion Doss and Pete Reagan were absent. Mayor Coody was absent during the
vote.
Longer Investment Report:
Elaine Longer: I will start with your portfolio report that is dated March 31, 2005. It has been a real grizzly
start to the year. We thought going into the final quarter of last year that if President Bush got reelected it
would spark a rally and it did. The whole year's performance was in the last two months of the year and so we
came into this year and we have given it all up. As of last Friday the S&P is only up 2% from December 31,
2003 and the DOW is actually down about 3.5% so it has given up all of 2004 and NASDAQ is off about 4.5%.
So, the give back that we have had in the first quarter of this year pretty much took away all of last years
performance which happened in the last two months of the year. So, we are in the trenches this year.
The good news is the earnings have come out pretty good. The first quarter numbers look higher than expected.
There have been a couple of big high profile messes, but overall the companies that have reported so far, 67%
of them have actually out performed the estimates. Now you still have some things happening today with some
earnings releases that are less than what had been hoped for. The GDP growth rate was released this morning
for the first quarter it's at 3.1 a little bit lower than expected and so the market is down again today. But, crude
oil has broken about 7% this week and in fact today went below $50.00 per barrel. So I tend to think that this
$10,000 level should hold.
We have had some money parked in short term treasuries about 10% of the portfolio just earning 3.5% while we
wait and we've been using some of that over the past two days to buy into the stocks at these levels. By doing
that I can move $200,000, $400,000, or $500,000 and keep it in something that if we do buy like these lows we
come right back out with about a 1 V2% loss and we still have purchasing power.
Your reports show 45% stocks. On page 3, under government bonds, you will see that we have $750,000 in the
3 V2 % treasury due November 2006. That's as good as cash to us because if we sell that, we would have cash
tomorrow. At least you are earning more than what you would have if we had these reserves in money market
fund. Also just below it the 3.25% which matures August 15, 2006 and so the combination of the two we have
almost 10% of portfolio sitting in purchasing power. Since this report and what we have been doing in the past
couple of days you are down to about $350,000 in that 3 %a% treasury, so we have been using some of that.
Page 5 shows the value of the portfolio is just over $10 million. The income, which is the dividends and
interest that come irregardless of what the stock market does, is at $302,000, which represents a 3.3% yield on
the total portfolio. The next page shows your realized gains year to date. You have about $154,000 in realized
gains. We had trimmed a bit off the energy stocks in the last part of the first quarter. We came in pretty over
weight energy and we had been over weight energy last year. We've taken some gains on those. That helps us
in managing the portfolio.
The corporate bonds that you own are all "A" rated or better. Page 10 shows your bond portfolio. The
weighted average maturity in years is 6.3 years however, within one to three years we have about 42% of the
Firemen's Pension&Relief Fund Board of Trustees
Meeting Minutes
April 28, 2005
Page 5 of 5
portfolio that matures. So, this is as good as cash to us we can presale anything fairly easy within a three year
maturity if we get an opportunity this year to tap into higher interest rates.
The weighted average yield to maturity is 4.5%. The 10 year treasury at 4.25% so you have a 6 %i year maturity
with 4.5%. You don't have much reinvestment risk in that the short maturities that we own now that interest
rates have come up in the shorter maturities as we start to come out of these we should be able to tap into higher
yields.
Page 11 has the highest holdings in terms of percentage of equity portfolio and then also percent of total
portfolio. Wal-Mart being largest holding and it has not performed well yet, but Wal-Mart is a key beneficiary if
we do get relief on the oil.
On page 12, we have the industry report. We are still over weight in the capital good sector in the economy.
We are more favorable about capital goods in that side of the economy than the consumer side. We do have
some consumer non-cyclical stocks that we've picked up that are somewhat defensive.
On page 14 we are at 13.6%, which is still over weight compared to 8.5% in the S&P 500 but at one point in
time we were about 18% to 19%. We have a pretty heavy weighting in the healthcare area. As the economy
slows and people start to factor that into their asset allocation, we think that that is a primary area where some
of the leadership can reemerge as energy gives up leadership. The tech stocks are about even weighted.
Page 17 shows your distributions and contributions. The contributions have been about $477,000 and
distributions have been about $2.1 million. The net distribution has been about $1.7 million. Page 18 is the
performance. The performance through March 3, equities were down about 3%, during that time frame the
S&P was off about 2.6%, the NASDAQ is down about 8.1% so you are pretty much in line with the S&P.
Fixed income was down 0.4%, the bond indices were down 0.4% too so you are about in line with the bond
indices. Your total portfolio is down 1.9%.
Your cumulative return annualized, equities are 9.7%, the fixed income is 4%, the REIT's at 17.9%, cash is
1.6%, and so the total is 6.2%.
Meeting Adjourned at 11 :55 AM
FIREMEN'S RELIEF AND PENSION
June 2005
THE FOLLOWING ARE THE OBLIGATIONS OF THE FIREMEN'S RELIEF FUND FOR THE
MONTH OF JUNE. YOU ARE HEREBY INSTRUCTED TO ISSUE CHECKS TO THE
PAYEES, IN THE AMOUNTS SHOWN, AND FOR THE PURPOSE SO STATED.
DATE OF Regular Mo Year To Date
EMP#RETIREMENT NAME Benefit Reg Benefit Fed Tax St Tax Net
79 11/99 ARMSTRONG (DILL), PAMELA 1,759.94 8,799.70 300.00 100.00 1,359.94
177 4/04 BACHMAN, EDDIE 2,542.28 12,711.40 479.27 119.82 1,943.19
74 3/86 BAIRD, JULIA 1,749.59 8,747.95 350.00 145.00 1,254.59
2 3/75 BLACKARD, PAUL 106.09 530.45 106.09
63 5/72 BOLAIN, ANN 106.09 530.45 106.09
68 7/99 BONADUCE, MICHAEL 2,901.71 14,508.55 475.38 2,426.33
44 9/86 BOUDREY, BETTY MRS. 2,405.26 12,026.30 300.00 50.00 2,055.26
45 9/86 BOUDREY, HOWARD 2,028.43 10,142.15 2,028.43
49 7/88 BOUDREY, JACK 1,599.64 7,998.20 287.68 50.00 1,261.96
4 6/67 CARL, FLOYD JR, (Deceased 2/28/05) 0.00 212.18
5 5/72 CASELMAN, ARTHUR 127.31 636.55 127.31
57 5/90 CATE, ROY 1,736.80 8,684.00 1,736.80
6 4/68 CHRISTIE, ARNOLD 106.09 530.45 106.09
8 10/76 COUNTS, WAYNE 106.09 530.45 106.09
77 11/99 DILL,GARY JOHN 1,759.95 8,799.75 100.00 1,659.95
11 2/76 FARRAR,ALONZO 969.77 4,848.85 969.77
38 5/84 FRALEY, JOSEPH G. 1,716.62 8,583.10 200.00 15.00 1,501.62
170 5/03 FREEDLE, LARRY 3,705.58 18,527.90 500.00 100.00 3,105.58
92 03/02 GAGE,TOMMY 2,521.06 12,605.30 226.00 50.00 2,245.06
34 6/79 HARRIS, JAMES E. 106.09 530.45 106.09
70 11/99 HARRIS, MARY RUTH 106.09 530.45 106.09
182 10/04 JENKINS, EILEEN 1,736.65 8,683.25 350.00 100.00 1,286.65
93 06/02 JENKINS, JOHN 1,736.66 8,683.30 350.00 100.00 1,286.66
86 07/01 JOHNSON,ROBERT 2,983.95 14,919.75 500.00 100.00 2,383.95
64 4/95 JORDAN, CHARLIE 2,208.69 11,043.45 2,208.69
76 5/88 JUDY, JAN 1,599.64 7,998.20 200.00 50.00 1,349.64
37 3/84 KING, ARNOLD D. 1,478.03 7,390.15 265.00 35.00 1,178.03
54 5/89 KING, ARVIL 1,661.37 8,306.85 130.00 50.00 1,481.37
12 3/60 LANE, HOPE MRS 106.09 530.45 106.09
13 10/67 LAYER, MERLIN 442.93 2,214.65 442.93
173 12/03 LEDBETTER, DENNIS 3,665.83 18,329.15 650.00 200.00 2,815.83
181 10/04 LEE, VIOLA LOUISE 106.09 530.45 106.09
51 10/88 LEWIS, CHARLES 1,599.64 7,998.20 75.00 25.00 1,499.64
40 9/85 LOGUE, PAUL D. 2,784.74 13,923.70 325.00 75.00 2,384.74
50 9/88 MASON, LARRY 1,583.74 7,918.70 137.61 25.00 1,421.13
39 4/85 MC ARTHUR, RONALD A. 1,702.66 8,513.30 150.00 50.00 1,502.66
35 2/82 MC CHRISTIAN, DWAYNE 106.09 530.45 106.09
15 4/77 MC WHORTER, CHARLES 1,295.64 6,478.20 150.00 1,145.64
29 8/81 MILLER, DONALD 1,266.09 6,330.45 125.00 25.00 1,116.09
73 2/00 MILLER,KENNETH 3,087.40 15,437.00 325.00 75.00 2,687.40
42 2/86 MOORE, JAMES H. 106.09 530.45 106.09
176 4/04 MORRIS, DIXIE E. 122.00 610.00 122.00
62 10/68 MORRISON, ELIENE 132.61 663.05 132.61
48 7/88 MULLENS, DENNIS W. 2,127.48 10,637.40 2,127.48
184 3/05 NAPIER, LONNIE 3,415.81 6,831.62 110.00 88.00 3,217.81
46 5/88 OSBURN, TROY 1,844.33 9,221.65 200.00 38.00 1,606.33
81 02/01 PHILLIPS,LARRY 2,684.55 13,422.75 2,684.55
53 2/89 POAGE, LARRY 2,278.35 11,391.75 300.00 100.00 1,878.35
22 4/73 REED, JOE 106.09 530.45 106.09
172 12/03 SCHADER, MADGE 1,345.64 6,728.20 1,345.64
41 9/85 SCHADER, TROY 1,480.57 7,402.85 57.00 1,423.57
83 03/01 SKELTON, KIMBERLY 1,182.03 5,910.15 125.00 25.00 1,032.03
66 8/98 SKELTON, PAULINE 413.75 2,068.75 413.75
82 03/01 SKELTON,KELLY 1,182.03 5,910.15 125.00 25.00 1,032.03
36 5/76 SPRINGSTON, CARL 782.71 3,913.55 70.00 17.00 695.71
DATE OF Regular Mo Year To Date
EMP#RETIREMENT NAME Benefit Reg Benefit Fed Tax St Tax Net
90 03/02 STOUT, IMOGENE W. 745.44 3,727.20 745.44
165 12/02 TATE, RALPH 3,561.26 17,806.30 300.00 100.00 3,161.26
65 3/66 TUNE, BILLIE SUE 132.61 663.05 132.61
27 3/71 TUNE, MILDRED MRS. 132.61 663.05 132.61
71 1/00 WARFORD,THOMAS 2,429.83 12,149.15 300.00 2,129.83
28 7/68 WATTS, DONALD 424.36 2,121.80 424.36
88 01/02 WOOD,RONNIE D 2,987.52 14,937.60 800.00 200.00 1,987.52
52 9/88 WRIGHT, RANDALL 1,642.08 8,210.40 200.00 25.00 1,417.08
90,572.16 442,825.55 9,537.94 2,157.82 78,876.40
DROP DATE DROP EMPLOYEES NEW BENEFITS
07/01/00 REAGAN,PETE 3,432.73
01/01/01 DOSS,MARION 5,220.30
03/01/03 MAHAN, MARSHALL 3,958.53
03/01/03 PIERCE, JOEY 3,540.95
03/01/03 SHACKLEFORD, GLEN 3,540.95
04/01/03 O'NEAL, TEDDY 4,000.96
05/01/04 FARRAR, DANNY 4,034.33
WE, THE UNDERSIGNED, DO SOLEMNLY SWEAR THAT THE ABOVE OBLIGATIONS ARE
JUST AND CORRECT; THAT NO PART THEREOF HAS BEEN PREVIOUSLY PAID; THAT
THE PENSION PAYMENTS SO CHARGED ARE IN ACCORDANCE WITH THE ACTIONS OF
THE BOARD OF TRUSTEES OF THE FIREMEN'S RELIEF AND PENSION FUND; THAT
THE SERVICES OR SUPPLIES FURNISHED, AS THE CASE MAY BE, WERE ACTUALLY
RENDERED OR FURNISHED; AND THAT THE CHARGES MADE THEREFORE DO NOT
EXCEED THE AMOUNT ALLOWED BY LAW OR THE CUSTOMARY CHARGE FOR SIMILAR
SERVICES OR SUPPLIES
SECRETARY CHAIRMAN AND PRESIDENT
ACKNOWLEDGEMENT
STATE OF ARKANSAS )
COUNTY OF WASHINGTON)
SWORN TO AND SUBSCRIBED BEFORE ME THIS DAY OF 2005.
NOTARY PUBLIC
MY COMMISSION EXPIRES :
YTD
6810-9810-5335-00
6810-9810-5335-06
YTD Column
Difference 0.00
City of Fayetteville
Trip Reconciliation Form
Name of Traveler: Employee #: Employee Vendor#:
Purpose of Trip: Destination:
Event date(s):
Actual departure from City of Fayetteville: Actual arrival in City of Fayetteville:
From: From:
Date: Date:
Time: Time:
ACTUAL COSTS: Receipts are required on all transactions not previously paid for by the City.
Difference of Actual
Actual Amount: Approved Amount: Over Approved
Actual mode of Transportation: (please specify)
Reimbursable Per Diem: Total from table below: $ $ $
Lodging: Total from table below. $ $ $
Registration: $ $ $
Other Charges: (please explain in additional information section below) $ $ $
Grand Totals: $ $ $
Advanced to employee: (total amount of check to employee) $
Advanced for registration: $
Advanced for transportation: $
Items placed on P-card $
Total Advances: $
Amount due to Traveler: t) Amount due to City:
(please include a check request for reimbursemen (please include your receipt from a usmess o ice)
Lodging and Per Diem Calculation Table
Date: Lodging: 1/2 Day: Whole Day: Reimbursable Per Diem: Notes:(Please explain differences in per diem usage)
$ $ $ $
$ $ $ $
$ $ $ $
Total $ Total $ I agree to waive my right to per diem. Initials:
Additional Information and explanations of differences:
Signature of Traveler: Date:
Internal Auditor Division Use Only:
Overage that exceeds $50 (exclusive of taxes & fees)
Overage has been: Approved $ Denied $
Signature of Internal Auditor: Date:
2005 Firemen's Pension Election
Johnson, Robert Ledbetter, Dennis McWhorter, Charles Poage, Larry Woods, Ronnie
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12 18 16 10 21
May 16, 2005
RE: Nichols & Campbell, P.A.
Income Tax Refund for City of Fayetteville Firemen Retirees
I received the enclosed letter from Nichols & Campbell, P.A. regarding an income tax refund
that you may be eligible for as a fire pension retiree. I presented this letter to the Firemen's
Pension and Relief Fund Board of Trustees at their pension meeting on April 28, 2005. The
board decided to submit the information that is needed to process your claim directly to the
Department of Finance & Administration.
We are currently compiling the information that needs to be submitted. Once we have compiled
all the necessary information to process your claim we will send it to you to verify. After you
have verified that the information is correct we will then submit the information directly to the
Department of Finance and Administration. According to the information that we have received
from Mr. Nichols that is representing you in this claim, you will not need to file a claim form
since the city will be submitting the information directly to the Department of Finance and
Administration. If you choose not to pursue this claim you must check the box marked "I do not
wish to pursue this claim" on the verification form that will be mailed to you in July and mail it
bank to the City Clerk's Office.
We have to access old records that are in storage to compile the needed information, so your
patience is greatly appreciated. Our goal is to have the information compiled by the end of June
or early July.
If you have any questions you may contact me at (479) 575-8323.
Sincerely,
Sondra Smith
City Clerk/Treasurer
Enclosure
City of Fayetteville
Fire Pension and Relief Fund U/A Dated 6/18/86
April 30, 2005 Equity Allocation: 52.4%
Equity Range Per Policy: 25% to 50% (+/-5% with monthly approval)
Longer Investments Inc. requests authorization for the variance of less than 5%, as
required in the investment policy dated February 24, 2005.
LONGER INVESTMENTS INCORPORATED
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�� A Regislered Inveslmenl Advisor