This is the 46th Convention of District No. One within our Alliance. Our last convention was held in Bal Harbour, Florida in July of 1984. This report will cover events, position and financial standing of this district as pertains to my duties and obligations these past two years.

District No. One presently comprises seventeen local unions in the five northwestern United States. We have a per capita membership of 611 and a Death Benefit Fund enrollment of 638.

Since our last convention, Local 663 Lewiston, Idaho was dissolved in February 'of 1985. Local 770 of Anchorage, Alaska was dissolved the beginning of 1985. In May of 1986 the Southwestern Washington State Local No. 401 was merged with the Tacoma Local 175.

Communications received were copied, reported and forwarded to all local unions of this district. With the exception of per them payments to delegates at this convention, all bills are paid to date. Death benefits are paid to beneficiaries to date with the last paid DA number 655.

The cost of printing three newsletters since the last convention including postal permits, fees and stamps was $752.24. The cost of printing and mailing the convention proceedings and the 1984 revised- Constitution and By Laws of this district since the last convention was $332.20.

Referring to the financial statements of this district you will please note that our General Fund for the year 1984 increased from $2677.84 to a balance of $3278.15 end of that year. For the year 1985 it expanded to $3802.66 end of that year and in the just 6 months of this year, to date, we have a balance of $4155.49.

So far as the Insurance Fund is concerned this needs some explaining. If you will refer to the 1984 audit you will see an increase from $67,556.86 to $80,521.01 end of that year. The 1985 audit shows an increase from $8O,521.01 to an ending worth of $92,069.51. The recap for the first 6 months of this year to date of this convention shows an ending balance of $90,747.53. The recap to date is what needs explaining. The six months of this year is not an audit, but a recap of actual cash to, date of this convention. As you can see from this years recap we show a drop in the Insurance Fund of $1321.98. This is not a true picture of profit and loss.

First, D.A.'s have been paid through No. 655. Locals of this district were just billed last month for DA's No. 652 653 and 654. To attend this convention the locals were notified they were only obligated to have D.A.'s paid up through No. 651. This was because of the timing of the convention call. For DA No. 655 would bring in about $1300.00. Locals not paid for the previous assessments would add another $2,000.00. Since our new CD as of 3/20/86 in the amount of $75000.00 was only for 6 months there is no interest included in the recap. To date, that would add another $1400. 00. At the time of this report, interest for June in our Insurance Fund checking account (MMD) was deleted. I would guess that to be about $75.00. If all this was tallied, with locals paid to date, our true financial standing in the Insurance Fund account would be in excess of $95,000.00. Taking into consideration the drop in interest rates the past two years would still show an increase in assets but at a slower rate.

Even with this, I think we should evaluate our position on the future of our District Death Benefit Fund. Many options are open to us. We are getting closer to being able to inaugurate a self-sustaining fund. That of course, depends on interest rates and what we invest in for the best return and at what risk. But that is in the future. Let us explore some present options to attain that goal.

No. 1: We can continue as we are now doing. Benefit payable is $1500.00 and assessments are $2.00 each. With our membership down about 50 people combined with lower interest rates our assets will increase at a slower rate.

No. 2: We could continue the $2.00 assessment and lower the benefit to maybe $1300 to $1350 and realize face appreciation of interest money.

No. 3: If we would raise the assessment to $2.50 we could easily afford an increase to $1600 (or higher) for benefit payable. There are numerous other options, of course, like maybe the first 5 or 6 D.A.'s in any one year would be at no assessment and D.A.'s following at a decided rate per assessed death. Or, we could reverse the order and pay on the first 6 or 7 and spell out some reasonable cap per year for local unions to pay.

I do not offer these options to confuse the issue but to show there are innumerable options of making our Death Benefit Fund meaningful and minimally adequate and yet continue to look forward to the day we could offer a self sustaining fund.

I will make a definite recommendation on this Insurance Fund to delegates assembled in convention in the secretary recommendation part of the agenda.

It is important for all delegates elected here to understand certain facts of our Death Benefit Fund. It is equally important that this message be conveyed to your union memberships through your reports to them. This fund was initiated in the year 1941 for the purpose of providing some financial help to the family of the deceased member in the time of need. To make it work the rules drafted made it mandatory that each and every member of a local union of this district participate. The only requirement was to remain a member in good standing. Membership requirement does not discriminate against age, working standard or classification. There, too, are provisions for the member to withdraw from membership and remain in the fund.

We are now in a reasonable healthy condition in our General Fund. I would like to see it improved. Some locals of this district are increasing their membership and some retaining themselves. Other locals are being decimated, dissolved and merged. This may appear detrimental at the time, but very possibly in some few years to come could put us in a healthier position for future bargaining strength and provide a better form of coordinated communication among ourselves in this district.

I foresee this General Fund to be used to help defray delegate convention costs and, hopefully, in the future provide a way to have annual meetings or convention or caucuses. I could elaborate further on this subject, but will not take your time to do so in this report.

Just before I left for this 46th Convention of ours I received a call from the Department of Labor for the purpose of auditing our record keeping for the year 1985. This stems from our requirement to submit a LM-3 and LM-1 reports on an annual basis. As any fiduciary officer is obligated to hold the records of office confidential this DOL comes in and is given the right to peruse these confidential items. But not without some restrictions.

The last item I have to report on is entitled "Things Not Done". From the previous convention in 1984 there were two states not represented. They were Idaho and Montana. According to our constitution, newly revised, the District Secretary is to cause an electin within the District after convention by referendum vote. This was not done. Presonal reasons prevented me from doing this. In general, I just ran out of time. We were involved in Local 154 negotiations (which were horendous), the Convention Proceedings of this District and the compiling of the revised Constitution and By-Laws of this district. This was well into 1985 and it appeared senseless to cause an election of people that would serve no purpose for the time left until the next Convention in 1986. I am prepared to answer any questions from the Delegates on this subject at our open 1986 Convention.