David Clark, executive director of the Arkansas Fire and Police Pension Review Board (PRB), answered questions from Russellville City Council aldermen during Thursday's meeting on the utilization of Rule No. 4, the alternate cash flow method, for the retirement plan of 10 former Russellville police officers.

Alderman Phil Carruth made a motion to reinstate Rule No. 4, but it was not seconded and a vote did not occur.

During June's council meeting, aldermen voted to rescind $200 monthly in certificate pay for retired police officers on the pension system. The PRB gave an increase based on Rule No. 4.

Rule No. 4 reads, "The local pension board, as well as the local city council, must certify to the PRB that they understand the risks involved in using a cash flow model for a small group, and that they assume responsibility for any future funding shortfall risk that might occur as a result of the utilization of the Alternate Cash Flow Projection Valuation."

Clark said local governing body has active role in approving the method used.

"The exposures would increase if the assumptions were not met," Clark said, when asked by Alderman Rick Harrell if the liability would increase or decrease. Clark said it was not required for city to have a local pension fund.

According to Clark, one option is the plan could be ssigned to LOPFI by the governing body when less than four individuals on the plan are still working, adding the returns from the plan in the late 90s were very generous.

Responding to a query from Alderman Tyrone Williamson, when everyone involved in the plan passes away, the money rolls into the Russellville LOPFI plan.

Alderman Randal Crouch asked why there was such a long delay in notifying city about the certificate pay allocated to the police officers. The local PRB provided some of the officers with certificate pay

Clark said the annual financial disclosure report was not received until the end of 2004.

Alderman Ronnie Tripp asked why there was a LOPFI retirement plan if the pension plan was working.

According to Clark, many were severely underfunded in 1981 when the LOPFI plan was established.

Litter law enforcement

Prior to the council's unanimous vote on a resolution to support litter law enforcement, West RiverValley Regional Solid Waste District Source Reduction Coordinator Brian Ukara, District Education Outreach Coordinator Louise Mann and Jim Kelley, director of Russellville's Recycle Works center addressed the council.

"Our objective is to help save our environment and preserve our landfill," Kelley said regarding litter law enforcement.

In September, Kelley used everyone to patake in National Lands Day, Pope County and Russellville fall cleanup the 24th when people can get rid of anything and the Great Arkansas cleanup.

Ukara urged everyone to take part in recycling, adding Clarksville recently became a new recycling city with the Mayor's help.

Mann said teachers are including the environment into the curriculum in grades K-12 teaching things such as burned barrels and illegal dumping.

"It's partly for the economy as well as saving our natural resorces," Mann said.

Other business

The following items were unanimously approved:

n Destroying financial records no longer being used;

n Hiring a fireman for the fire department;

n Consideration of a resolution encouraging all utilities in Russellville to coordinate with the city's five-year capital improvements program;

n A resolution authorizing the sale of personal property by city auction;

n Realigining 21 bank accounts into four to make it easier for City Treasurer Jennifer Humphrey to handle the city's 21 funds;

n $2,100 in depot and lease expenses for the remainder of the year;

n $9,500 in computer equipment and maintenance to fund software purchased for community development;

n $2,150 to fund air conditioner repair;

n $2,783 to fund 6 percent matching to the old pension plan for an employee for a 2003-04 deployment;