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MINUTES <br />CITY COUNCIL <br />NOVEMBER 24, 2004 <br />normalized market. however, the performance level will not be double <br />digits. <br />The City Administrator questioned why the Relief Association would <br />want to buy hoods versus CD's in a rising interest rate market. Croonquist <br />indicated that they have purchased CD's with step-up rates. These are not <br />mortgage-backed. <br />The Administrator asked how quickly investment decisions need to be <br />made. Croonquist asked who would be involved in malting investment <br />decisions. Fahey indicated that the Relief Association Trustees need to be <br />involved in all iuveshnent decisions on ajoint basis going forward. There <br />was some discussion of how to coordinate the making of these decisions. <br />The City Administrator recommended that Croonquist compile the <br />necessary information pertaining to pending decision. That information <br />can be forwarded to the trustees for review and a decision then made. <br />Fahey suggested that there could also be a "safe haven" that all trustees <br />agree to, and any investments of that nature would not require individual <br />approvals. <br />Allan asked the status of the $100,000. Croonquist indicated that based on <br />the 60/40 split, the $]00,000 would be allocated to fixed income. <br />I3lesener noted that even if the trustees had been involved in investment <br />decisions for the '1999-2003 period, the fund's performance would likely <br />not have been different. Fahey agreed, but noted that all future investment <br />decisions must be made by the Board of Trustees. <br />Vitale noted that the State's Reports I and II indicated that the pension <br />benefit eau be $3,000 per year of service. The City Administrator <br />indicated that this is the maximum that is allowed, however, the decision <br />on benefit level is made by the City Council and is based on what the <br />pension fund will supporC. The pension fiord is currently in a deficit <br />position at this point. <br />There being no further discussion, the workshop meeting was adjourned at <br />7:25 p.m. <br />Michael I. Fahey, Mayo? <br />Attest: ~ ~~~ <br />oelR Hanson, City Administrator <br />