Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, July 18, 1990 TAG: 9007180387
SECTION: VIRGINIA PAGE: B2 EDITION: METRO
SOURCE: JOEL TURNER MUNICIPAL WRITER
DATELINE: LENGTH: Medium
City Finance Director Joel Schlanger told the fund's board of trustees recently that the value has reached $112 million, the largest amount in its history.
After the market collapse in October 1987, the fund's market value dropped to $75 million in November 1987. In September of that year, the value had stood at $87 million.
Schlanger said the increase in value has helped save money for Roanoke taxpayers because it has meant that a smaller appropriation of tax money is required to keep the fund financially sound.
The city contributes about $4 million in tax money to the fund each year, based on a percentage of payroll costs. The contribution was based on 12.6 percent of payroll costs in the past fiscal year, but dropped to 12.1 percent in the current year.
The market value is the amount of money the fund would have if all of its stocks and other assets were sold at their current values.
Three professional money-management firms handle the fund's investments after consulting with an investment committee that includes Schlanger and several members of the board of trustees.
"The money managers have done very well. We are pleased with them," Schlanger said.
The three firms are Invesco of Atlanta; Wolf, Webb, Campbell and Burke of Philadelphia; and WEDGE of Charlotte, N.C.
"The excellence of their work speaks for itself," said Mayor Noel Taylor, a trustee for the fund.
Roanoke is one of 11 cities and counties in the state with their own pension systems separate from the Virginia Supplemental Retirement System. Most cities and counties participate in the state system.
Despite the steady rise in the fund's value, Schlanger said the city probably will have to continue making a contribution of tax money because more municipal workers are retiring and salaries are increasing.
Schlanger said city officials also are studying the possibility of providing some assistance to retired workers for hospitalization insurance. Retirees now pay the full cost of their coverage.
by CNB