Volunteer Firefighter Relief Fund Committee

City of Norwich Volunteer Firefighters' Relief Fund Committee Minutes Meeting # 81 The Volunteer Firefighters' Relief Fund Committee held its eighty-first meeting on Monday, January 13, 2003 at 5:00 p.m. in room 209, City Hall, Norwich, Connecticut. 1. ROLL CALL Members present were: Richard Benoit, Taftville Thomas Quinley, Yantic Red McKeon, OccumlPast Chairman Joseph Kochanski, Laurel Hill Dennis Davis, City Pension Board Karen Mankowski, Occum Richard Podurgiel, City Manager Gregory Ensling, East Great Plains Joseph Ruffo, Comptroller/Treasurer Thomas Dawkins, Personnel Manager Members absent were: Joseph Morse, Citizen Appointee Guest(s) present: William Murray, City Treasurer Richard Benoit called meeting to order at 5:05 p.m: 2. MINUTES / The meeting minutes of the previous meeting were reviewed and accepted with one minor clarification. Mr. Ruffo serves as the Treasurer for the Volunteer Firemen's Relief Fund Committee, however his official title is Comptroller of the City of Norwich. This will be noted in future meeting minutes. Motion made for approval by Dennis Davis, seconded by Red McKeon. Approved. 3. REPORTS Treasurer's Report: a) The Committee received a corrected report_ for September 2002. Motion made to accept the corrected report by Dennis Davis, seconded by Thomas Quinley. Approved.  b) Received the December Treasurer's Report. Mr. McKeon noted that the Fleet Money Market account was decreasing compared to earlier monthly reports and questioned why. The Committee explained that the Fleet account was the "working" account from which benefits were paid to eligible members. It was also noted that the money market account is a variable rate account that is currently earning approximately 1.25%, yet the Treasurer's Report continues to indicate an earning percentage rate of 3.35%. It was suggested that all future reports should reflect the current market values. Motion was made to accept the report and report accurate market rates in the future by Dennis Davis, seconded by Greg Ensling. Approved. 4. COMMUNICATIONS None 5. OLD BUSINESS a) The Committee held a brief discussion regarding Cadet Firefighters pertaining to Occum membership and when they actually become eligible to join the Relief Fund. Red McKeon stated that in Washington, a 14 year old was killed on a bicycle while responding to an emergency call. Red also reiterated the fact that if alcohol is present in the blood stream in excess of 0.08 (or per individual State standards used to define being under the influence) the Federal death benefit of $259,000 will not be paid. Another problem that has surfaced with younger volunteers is that often they carry no formal identification. b) Members of the Committee felt that for volunteers between the age of 16 and 18, a proposal should be made allowing those members to buy-back qualified service time. Motion made by Karen Mankowski to allow buy­ back of 1-2 years period of service for personnel performing duties while less than 18 years of age, seconded by Thomas Quinley. Approved. c) The Committee reviewed the proposed letter to be sent to Hooker & Holcombe, Inc. regarding their investment return assumption of 6.5% used in the January 1, 2002 Actuarial Valuation of the Fund. The Committee endorsed the letter and concurred with sending, Mr. Murray interjected and provided Committee members with a news article "Say farewell to a bad year for mutual funds." Motion to send the letter made by Dennis Davis, seconded by Greg Ensling. Approved. d) Reminder to all Committee members to have all Relief Fund money deposited by the end of January 2003.  e) Mr. Murray addressed the Committee briefly regarding investment strategies for the Volunteer Firefighters' Relief Fund. At the time the last long term investment choices were made, Certificates of Deposit were performing better than Treasury Notes. In the future, he stated he would not be opposed to open discussions with Committee members prior to making investment selections. Joe Ruffo recommended that the Committee target the September 2003 meeting to begin pre-discussions on potential options for Fund investment. 6. NEW BUSINESS a) There was a brief discussion regarding new officers for calendar year 2003. A motion was made to keep the same slate of officers from 2002 through 2003 by Red McKeon, seconded by Joseph Kochanski. Approved. New officers: Chair: Richard Benoit Vice-Chair: Richard Podurgiel Secretary: Thomas Quinley Treasurer: Joseph Ruffo A motion was made by Karen Mankowski, seconded by Red McKeon to close nominations and to instruct the Secretary to cast one vote for the officers nominated. Approved. b) Laurel Hill has two new candidates for membership. Richard Podurgiel made a motion to accept the new candidates and have their paperwork take the normal route, seconded by Joseph Kochanski. Approved. The members are: Andrew Daigle and Edwar D. Martin. c) East Great Plains has three new candidates for membership. Richard Podurgiel made a motion to accept the new candidates and have their paperwork take the normal route, seconded by Joseph Kochanski. Approved. The new members are: Kristen Janelle, Steve Lietch, and AI Trudeau. d) Yantic and Taftville both report that they each expecting two new members' paperwork for the next scheduled meeting. e) Greg Ensling stated that one of their members had recently passed away, Stan Parzyck, and requested that Mr. Ruffo verify that benefits are no longer being paid. 7. OTHER BUSINESS None 8. ADJOURNMENT Motion made by Thomas Quinley and seconded by Dennis Davis. Approved, meeting adjourned at 5:35 p.m. Respectfully Su bmitted, /', ~~~t~ ,/ Thomas G. Quinley . February 10, 2003 TO: VOLUNTEER FIREMEN'S RELIEF FUND COMMITTEE FROM: CITY TREASURER SUBJECT: VOLUNTEER FIREFIGHTER'S RELIEF FUND SEPTEMBER 2002 • CHECKING ACCOUNT BALANCE FORWARD $331.23 GENERAL FUND APPROP 0.00 EAST GREAT PLAINS 0.00 LAUREL HILL 0.00 OCCUM 0.00 TAFTVILLE 0.00 YANTIC 0.00 INTEREST 209.84 FROM FLEET MM 10,000.00 TOTAL RECEIPTS $10,209.84 DISBURSEMENTS PENSIONS REFUNDED 1,340.14 PENSIONS PAID 8,264.00 ACTUARY FEES 0.00 INVESTMENTS PURCHASED 0.00 TOTAL DISBURSEMENTS $9,604.14 CHECKING ACCOUNT BALANCE 9/30/02 $936.93 BALANCES AS OF SEPTEMBER 30, 2002 CHECKING ACCOUNT $936.93 EASTERN SAVINGS INV. DUE 11/28/03 @3.80% 630,000.00 FLEET MM INV @3.35% 158,300.00 EASTERN SAVINGS INV. DUE 10/02/03 @4.50% 200,000.00 TOTAL CASH AND INVESTMENTS $989.236.93 TO: VOLUNTEER FIREMEN'S RELIEF FUND COMMITTEE FROM: CITY TREASURER SUBJECT: VOLUNTEER FIREFIGHTER'S RELIEF FUND DECEMBER 2002 CHECKING ACCOUNT BALANCE FORWARD $110.00 GENERAL FUND APPROP 0.00 EAST GREAT PLAINS 0.00 LAUREL HILL 0.00 OCCUM 0.00 TAFTVILLE 0.00 YANTIC 0.00 INTEREST 210.68 FROM FLEET MM 8,000.00 TOTAL RECEIPTS $8,210.68 DISBURSEMENTS PENSIONS REFUNDED 0.00 PENSIONS PAID 8,104.00 ACTUARY FEES 0.00 INVESTMENTS PURCHASED 0.00 TOTAL DISBURSEMENTS $8,104.00 CHECKING ACCOUNT BALANCE 12/31/02 $216.68 BALANCES AS OF DECEMBER 31,2002 CHECKING ACCOUNT $216.68 EASTERN SAVINGS INV. DUE ·11/28/03 @3.80% 630,000.00 FLEET MM INV @3.35 % 135,300.00 EASTERN SAVINGS INV. DUE 10/02/03 @4.50 % 200,000.00 TOTAL CASH AND INVESTMENTS $965516.68  -. '. .. -, -' -. " tSa,' farewell to a bad 1:~~!~!3f!J!~~'I!I~~~~I~~p~~h·· ! ' . ' " TheaverageheaItl;1Care,:!petition, overcapacity and" were routinely reporting' • ,',. As far as mutual funds fund fell 29.7 pereenfciftei- <1. :\ ,high debt levels. ' double-digit earnings. But, ' }' ': and 2002 go, good riddance, '22.3 percent declineirl~oq1~;; ," 4. Techtank~ those dizzy days also boost­ ~ . to a rott~nyear. ~~?u liked ,Go figure. Ev~IY day,\IIlO~:,;'/~'" .;:.Talk·about deJavu; In~ ed prices of growth stocks ~ the Sparush InqrnsltiOn,yOU ,than 10,000 babyboome~:Avesto~ who had hoped·for to lUlSUStainable levels, an­ :i ,-Joyed mutual fwuls. Other~.. " tum 50, accordingto~ji\ a reboWld in the ailing te..cl1 aly~tssay. W?en they fell" ' :~:,WISe, there was alot to hate:' \ Thatshould ensure~~i!sectorlastyear-instead ~d . theyfell hard. .. ',' ,:." . ~ir~:~§:.::~Jitii)••i7· a, s~ock:i.ngly, bad perfor- eluding fallout ftomth~'@:'}frenre'and techriology furids'·, fQnned moSt other'Cund cat-' , mance. The average utility', Clone insige:~diIig ~~ ::~~.pl~ged 4~percent in 2~..egories, fund 'managers fimd zapped investors for a dal and fearS'aQ9ut:pa.tenb;~l4ng-~imt ecb.il!,vestors, , urged patience.When,the: on :.~.8,~~t)0~,their s~: r', expiratio~ bJ~~;~~liav.e'been rewar.ded With . market~_oured, t4ey siUd,,':~ ond ~hsecutive losingyear.. ,..drilgs. Bioteclr co~Wriies~!:-".,thefinancial ~eJ;lt pfa . active·II!anagers. would> ,:De('eguIatioIlJD:energy;:·also suffere<frroni th~ geJ'(.YkJoastedmothe.~1'he ," prove theirworth.'~ , ,',' .'t and ' t~le¢omin:unications,., eral backlashagarnst ,""average tech fund is down g"'::""", Investors are still wait­ .has sparked fierce competi- .. growth stocks, and the col-' percent the past five years:' ing. In 2003, the S&P 500 in- i Jion among once-sedate util-' lapse ofTenet Health~'s' , "Experts say too many. dex fund fell 22.1 percent, .)ties.ManYarefighting~t,stockhurthospitals. : . : '" .tech stoc~.a.re still oyer- hardly a celebration. Ac­ '-'to stay alive in deregulated··· ',A bright spot: Managed .' priced. Many·of.the same';;:tivelymanaged fl.lll.ds fared· 'tr~arke~ wh~re:;;upply f~>fm:e·comp~...~O;:.lJave'Em-",~:prOb!~.ms that plague tel~ ',~orse. ,':£::{.:':' i;" _"~~ d~~ q~:~~;.::~).p~ed ~ealtJI¥4J~Ji~~}l1;Itr)~~m .s,~ks:- p~uct sat- ,~;.. The average large-com7;~' ;,;tI:ic and telephone compa-"·c.th.ey,w~r~au.,'W ~c~~m- ..::ur~~?,D; cOI?petItion ~d .~panys~fundfell24.5per-·1 , ;:- ~ mayhaveto,clll,>PSeQe-., plish this m.@;i1;~W hitting· "pnc~!leflatIon- are still :~~nt, Lipper says.'l.'hegap , · .tween their own profitability" consumerS W'it:hPig 1IisUf.:~1;c:biggmg down tech si:OckS;,igrowseven widei"over the " ': and Graildina~sdividends" 'ance premi~~~r~e~~.SH 5~;r'lO ~,-tIL"<~ ,', (:·;~.l;p;astfivey~ars. FTo~ 1997, ' ' • ~,~d ~h~ smart rponey, . Where's the a.P;ta:g.9~j~ . ~1+~?: Ifgrowtli f1lt1ds were a\~ :;to 2002; the S&P 50~ mdex ;" wasn't betting on Grandma ,3. Telecom ;gotdiSCo~:;J¢~baseballteam, fans would;: :fell 2;9 percent Dunng the " · fuStyear.·, ' '.: 0: ;.. ,'; ~':nected. c.4i:;;:~~i;~~·r~ilt·~·;say.tbeY'red ue for a-·wm~:sameperiod, the average' , :";" T)1e;: }lush ,economic, ~. ~,.;, Plvestoi-s who hUii'g on ",ningseason. f'f:~' large-company fun,d fell 9.6 ' :'paCkage;whiclimakes Cor~~c:.to their telecommutual-:-'c ;'At this pomi;' though, ,percenl~ ,"" :::>;,~ ~'1)()rate dividendstax-free, :/funds got no relief in 2002.' " most investors would settle One big reason: costs. ~' '; could make divideIid-payiIi~f The average telecOm fund ' for a couple ofbase hits. The Actively managed funds . · 'utilities lightiJp agaiii. hi the' ,,' fell 41.3 percent in the yero; ,average larg~company typically charge higher ex",; "meantime,mutual fund' '.1he third year in a row that growth fund fell 28.6 percent penses than index funds. In, ' ,companies are 4tking note .,''telecom has hung i.lp:on in-in 200'2. after plmnmeting 23 a falling market, those costs 'of the changed lartdscape. vestors. The average tel~ percent in 2001 and 1.7 per- can exacerbate losses. For example, Vanguard's " comftmd~~25percent· Centin2OO,O.~tors,tired, Russel~el,senioraIJ,. : utility ftmd last month., thep~~~ye.y~.9nce- <'o.fseemg theif'funds ,end' . alyst for fund-tracker Morn­ broadened its investment.~ mightyAT&Nli~~yfor~5··.everYquarter last in the ", ingstar,says it's still possic , objective to all types of divi- ',' reversespliUaSty~iri'3' ,·,StandingS, have defected in ..:ble to find actively managed .. dend~paying stocks and, desperate bid.,tQ.bgost its 'droves. .... "larg~compahyfundsthat 'dropped''utilities" from its 'share price. Hell~?·,Hello? ":: Growth-fu!1d managers " outperform the index. . . name. The objective: to ere- Isn't it time for ,i,turn-' typically invest incompa- "IfyOu find a money man­ ate a conservative, incom~ around? InveStors hoPe so, ,rues whose earnings are ex-ager focused on the long heavy stock fimd without d~' but all they might be getting ':( ,.pected to grow over time. tenn who manages the fund pending on utility stocks. in 2003 is higher 10rig;dis-iiiTheysoaredin the 1990s by atareasoOahlecost,youcan , 2. Health care funds a., .Jance rates.Jl1e mgustry."r'loadingUp onstoeks oftech- do pretty well," he said ': ..; .:._:# :. '" : <:.:-- ...• .; 1j . ~<:~~ ',", . ::: .~: .." -; " ~ ." .