HomeMy WebLinkAbout2002-09-26 - Agendas - Final•
FA Y:E-TTE-VILLE
City Clerk's Division
13 West Molintain
!Fayetteville, Arkansas 72701
Phone: 479-575-8323 , Fax: 479-718-7695 Email:cityclerk@ci.fayetteville.ar.us
•
FIRE PENSION AGENDA
SEPTEMBER 26, 2002
AGENDA
A meeting of the Firemen's Pension and Relief Fund Board will be held on September
26, 2002 at 11:00 a.m. in Room 326 of the City Administration Building located at 113
West Mountain, Fayetteville, Arkansas.
1. Approval of the minutes
2. Approval of the pension list
3. Investment Report
4. Other Business
Heather Woodruff, City Clerk
113 West Mountain
Fayetteville, AR 72.701
575-8323
email: hwoodruff@ci.fayetteville ar us
•
Fire Pension Minutes
August 29, 2002
Page 1
MINUTES OF A MEETING
OF THE
FIREMEN'S PENSION AND RELIEF FUND BOARD
AUGUST 29, 2002
A meeting of the Fayetteville Firemen's Pension and Relief Fund Board was held on
August 29, 2002 at 11:00 a.m. in Room 326 of the City Administration Building located
at 113 West Mountain Street, Fayetteville, Arkansas.
PRESENT: Mayor Coody, Marion Doss, Ronnie Wood, Pete Reagan, Danny Farrar,
Marsha Farthing, Kit Williams and Heather Woodruff.
MINUTES
Mr. Reagan moved to approve the minutes with one correction. The moved to approve
the minutes had Johnson first and seconded. The motion had been seconded by Reagan.
Mr. Farrar seconded the motion. The motion carried unanimously.
PENSION LIST
Mr. Reagan moved to approve the pension list. Mr. Wood seconded. The motion carried
unanimously.
INVESTMENT REPORT
• Ms. Elaine Longer, Longer Investments, thanked the board for selecting them to manage
their assets. She wanted to start with a review of their Investment Policy and some of
their recommendations for changes. Then they would review the transfer of assets and
the current investments.
Mayor Coody asked since they were in charge of both the Fire and Police Pension Funds
if they could combine them?
Ms. Longer replied that was probably a legal question, but she did not think that the
portfolios could be combined equally. They were really structured differently at this
point in time.
Mr. Williams stated he did not think that they could combine the funds. They had
different boards, beneficiaries and benefits.
Ms. Longer stated this was an account in transition. There was a lot more going on here
than in an account that was structured the way that it needed to be structured and fully
invested.
Mr. Williams left the meeting.
Ms. Longer presented a copy of their investment policy. The purpose of the policy is to
define the guidelines which was to help them as investment manager how to invest their
funds. They start everything with an investment policy and everyone of their accounts is
•
•
•
Fire Pension Minutes
August 29, 2002
Page 2
invested differently because the policy sets out the guidelines, then their job was to go
out into the capital market and buy the assets that were needed to meet their fund
objectives. They always start here. There were some questions that she had under
investment objectives. Being a public pension fund, .the most important objective is to
meet the actuary return assumption. She did not find that anywhere in their policy. She
did not know what their actuary return assumption is to invest the assets to achieve that
return that was needed to fund their obligations. Under 1.C. long term goals that were
defined in their policy is to achieve an absolute rate of return which exceeds the inflation
rate by 5%. It went on to say that there was a comparative performance expectation
relative to the S&P 500, relative to Corporate Bond index and relative to a combined
mix of S&P 500 and the index. The problem with this section of their portfolio policy is
that there is nothing that is really pertinent to what they really have to do for them, which
is to meet their actuary assumption. When they combined absolute return which is 5%
above inflation rate and relative return which is relative to an index, it was like coming
to a Y in the road, and they can't go both ways. Typically, to define their retum by an
absolute return, 5% over the inflation rate, that is an arbitrary assumption and it is hard
for her to figure out a way to go out there. First, she did not know what that would be.
Secondly, she did not know how to do that because they would have to get into a riskier
profile then what they were actually able to expend at this point in time. In her mind
their policy was inconsistent with what their real goals were and with what they expect to
achieve without taking on a lot of risk. This was their most important consideration in
their policy. They needed to make sure that they got the goals right. It would be helpful
to have an update on. where the portfolio stands In the RFP, it had mentioned that it
closed the year at an unfunded liability of 4.5 million. She would like to know what the
value of the portfolio was at year end. She could not compare where they were now to
where it was at the time of the actuary study was done. If they could get an update
somehow on where the portfolio stands now and what that would mean in terms of
unfunded liability and what the actuary rate of return assilmption is. They had three or
four inputs into the equation. Since they did not do the administration work they did not
have the tools to answer those questions. If they could have a copy of the actuary and the
year end valuation of the portfolio that would help, then they could kind of tell how much
the portfolio had declined in value relative to that year end valuation. But then, they also
needed to know what the underlying return assumption is. She would like to get a review
from Jody Carrio if at all possible on where they stand, even if it is as of year end and
what their actuary return assumptions are because the input into the equation. The cash
flows that were going in, what the city pays on current active participants, additional tax
revenues and things like that. Then there was the return assumptions and the pay out to
the retirees and the expected future liabilities to the current active. All of those factors
would feed into determining the real objective of the portfolio and a review of all the
input to see where they stand and whether or not their obligations are secure. Her
questions from a portfolio stand point, to make the fund hold in its current situation, what
would be the expected rate of return. If that expected return comes out at 20% per year to
make the fund hold, she would be the first one to tell them that was an unrealistic
expectation without a large assumption of risk. They could not risk these assets. It was a
question that needed to be answered earlier rather than later, exactly where everything
stands. If their return assumptions is 7.5% as opposed to 6%, she did not feel that that
•
Fire Pension Minutes
August 29, 2002
Page 3
was completely out of line. But in a balanced portfolio fund like this, where they had
interest rates that were 4.5% and expected return on stocks has moved down to a more
realistic 8% or so, then they had to look at what was a reasonable expectation of return
within the context of fiduciary sound portfolio. If they got back from the actuary that it
needed to be 20%, then they had a problem. If the board would give them permission,
they could come back next time with more information on end objectives.
Mr. Reagan asked what they brought in annually from property taxes.
Ms. Farthing stated it was approximately $260,000 per year.
Ms. Longer stated that they would request the actuary, the year end report and they will
follow up with a discussion with the Carrio firm on the return assumptions needed to
make the fund hold.
Under 1.C., "the short run results will be monitored and are expected to be in the top 1/3
of the valuation services" she thought as they worked into what their real investment
objective is then they would get back to talking about the relative returns that they
wanted to have. Some of the risk profile is inconsistent with the aggressive return
assumption. Until they had a handle on what the appropriate level of risk is for the
portfolio, it was kind of hard to get into that.
• Mayor Coody asked Ms. Longer what her assessment was of the fund up to now.
•
Ms. Longer replied she thought the risk level was fairly high on the fixed income side.
They had to sell a lot of bonds that were really a high risk profile. Some of the bonds had
slipped under investment grade, which should never be held in a public pension fund.
She thought that the risk profile, on the fix income side, was too high.
Volatility and liquidity under II, A. risk tolerance and return expectations, seemed to be
inconsistent. The volatility which is the risk in the portfolio is expected to be similar to
that of the overall market and yet the return is expected to be in the top 1/3. There was
some discrepancy that eventually will be worked out as they define a little what their
objectives are. Under I.B., they wanted to define the expected distribution schedule a
little better. That way they could maintain cash reserves sufficient to fund the
distributions. Under Asset allocation and diversification, she thought that their equity
allocation is 25-50% was a good allocation. That gave them plenty of flexibility to get
conservative or to get more aggressive as the market improves. She thought it was a
good range. Under the fixed income component, they found some discrepancy where in
some places the equity and the fixed income weighting per particular issuance was
defined as percent of total assets and in other places it was defined as a percent of the
fixed income class or of equities. They wanted to get that consistent, so that every thing
was defined as the percent of total. Under fixed income there appeared to be some words
missing, "excluding directed maximum of any one issue". She thought that it should be,
"excluding direct obligations of the US Government and US Government Agencies,
maximum of any one corporate issue shall not exceed 15% of the fixed income portfolio
0
0
Fire Pension Minutes
August 29, 2002
Page 4
at cost" she would recommend 10% of the fixed income portfolio at cost. At 10% they
would not have more than 5% of total portfolio in any one issue.
Mr. Reagan moved to make the changes to the policy. Mr. Farrar seconded. The
motion carried unanimously.
Ms. Longer stated on page 3, Equities, the equity exposure is defined as, "no single issue
shall exceed 5% of the cost value of the total equity portfolio," and under IV,A. , "no
more than 5% of the total assets valued at cost shall be invested in the equity of any one
company or affiliated group of companies." That was a discrepancy. 5% of equity is
different than 5% of total. Their recommendation would be to go to no more than 5% of
the equity until they had percent of the total assets to be invested in any one stock. The
way their policy reads, the common stocks purchased must carry an investment rating of
medium grade or better by Moody or a rating of A or better by Standard and Poor. That
excluded a lot of stocks out there in the universe, a number of them that they currently
own and a lot of them that they buy for other accounts. What they have done in the
Policemen's account is they actually do a rating of the stocks. On rated stocks they buy
nothing that is rated less than B-, then they did a weighted average total on the portfolio.
So that the weighted average total of the weighting on the equities are B+ or better. For
non -rated stocks we assign the lowest level to it. They do buy a few stocks that are not
weighted. Mostly because they were too small to be rated. They kept a whole equity
portfolio in the range of B+. That seemed to give them more flexibility. If they limited
it to just A rated stocks, they were excluding a lot of the universe out there. On their
current holdings, on page 7 of their report, they could see they had number of B, B -
stocks. There was not a lot left. A lot of times they were buying stocks that were fairly
conservative on a balance sheet. They did a lot of analysis on balance sheets and
earnings and making sure that the capital structure is strong, but they may carry a B or B+
rating a lot of times because of size. They have not been in the policy. The investments
in their portfolio have not been adhering to the policy. She preferred to adjust the policy
than to stay out of compliance with the policy.
Mr. Reagan moved to amend IV.0 and IV.A to the language provided. Mr. Wood
seconded. The motion carried unanimously.
Ms. Longer stated under IV.B. there was another inconsistency on the debt issue. Percent
of total asset. She suggested changing it under 3.b.2, she suggested amending this part of
it to reflect what 3.b.2 says so that it was all consistent.
Mr. Reagan moved to amend the policy. Mr. Farrar seconded. The motion carried
unanimously.
Ms. Longer stated under IV.c.4. f investments in international securities shall be made
only after securing approval by the majority of the board at a regularly scheduled
meeting. They had a lot of individual securities, foreign stock in one of their portfolio.
Their preference was to define foreign equities as a percent of total equities exposure.
They then utilized mutual funds to accomplish foreign equity exposure. When they were
1
t
•
•
Fire Pension Minutes
August 29, 2002
Page 5
investing in a foreign market, they were really going after that currency play. They
wanted the diversification relative to the US market. The US equity market and the
European and Japanese markets were not perfectly correlated. The reason that they push
diversification among international stock is that there is a given level of equity exposure,
they had less equity risk because of the affective of the currency off setting each other.
She suggested that they amend that to recommend that equity exposure in foreign,
international markets be limited to a percent that they were comfortable with. They
currently had a lot of international stocks that were individual stocks. She thought it was
approximately 9.6% of the equity portfolio and about 4% of the total portfolio. She
thought that it was better to use mutual funds because, if they were trying to buy
intemational stocks and they bought five or six European companies, and one of them is
a bad pick, they could negate the whole asset allocation by one stock out of five doing
poorly.
Mr. Reagan moved to amend the policy defining the foreign exposure as 10%. Mr.
Farrar seconded. The motion carried unanimously.
Ms. Longer stated if they ever wanted to go above that amount they could come back to
the board. She thought that it was important for them to understand that by law they were
a fiduciary on this account. They had to adhere to what was called the Prudent Investor
Rule. That was a higher bench mark than the Prudent Man Rule The Prudent Investor
Rule requires that they adhere to a level of fiduciary responsibility that a prudent
professional would use in investing public pension funds. They tended to be on the
conservative side because capital was hard to replace. Losses are parts of their gains. If
they were down 25%, then on their remaining principal they had to make 33% to get back
to breakeven. If they went down by 50%, they had to make a 100% on what was left to
breakeven. They tended to take the stance that preservation of capital is important as
well as return expectation. They did incorporate small cap and mid cap stock in their
selection. They did adhere to invest grade fixed income security. The credit risk that
they incurred to get as little bit incremental return on a fixed income security was not
worth the risk. The fixed income part of the portfolio was suppose to be the balance or
the lever that did not subject the portfolio to risk, to off set the risk in the equity side.
They approached the investment process, especially with this type of an account, from a
risk management as well as return objective.
The next thing was to look at their portfolio that came in and how it was structured on
their July 31 valuation. Look at the sales that were conducted, then they would look at
where the portfolio currently stands. On page 9, they had the portfolio summary based
on Merrill Lynch valuations. They say based on Merrill Lynch valuation because the
valuations Merrill Lynch was showing on some of their less than investment grade bonds
were not an accurate valuation given the market. When they went in and bid those bonds
the prices that came back were not anywhere close to what they were showing on the
valuation. Some of the credit ratings from Merrill Lynch was showing was not correct.
For instance, Xerox bonds were showing an A rating, they have not been A rated for over
a year They were actually junk debt. The valuations that they saw on July 31 are not
exactly what they would consider accurate, but it was right at 10 million given the
•
Fire Pension Minutes
August 29, 2002
Page 6
distribution that went out on August 7 to cover August and September distribution needs.
Page 10, showed the sales that they bid before the transfer took place. Again, what they
were facing was that the transfer of assets could take anywhere from three to five weeks.
When they were in transfer, they could not touch them, given the large number of
holdings that they had. They went through and sold most of the individual stocks that
were international, non -rated, less than A rated. If they looked at the sales of their stocks,
then to hold the equity value, at 40% of total portfolio during transfer, they bought the
S&P Index, called Spiders and the NASDQ equitant which is called the 222. They were
under weighted in tech stock. By buying one-fourth of the total amount in the NASDQ
100 they were able to bring them up to a neutral position with the S&P 500 on
technology stocks, but also taking it into the S&P hold their equity weighting while they
go through transfer. Getting them ready for transfer they had utilized tools like the S&P
and the NADQ index to hold their position. They still had all of the stocks on page 7 and
8 left in their portfolio. Page 11 showed the bond sales that took place. They were not
finished with what they wanted to sell out of the portfolio, but they had the majority of
the credit risk that was of immediate concern out of the portfolio. Their investment
policy calls for nothing less than investment grade to be held in the fixed income part of
the portfolio. She thought that was a good policy guideline. These bonds were either on
the lowest rung of the ladder as far as investment grade was concerned or they were
subject to review and further down grade In the case of the Motorola and Disney those
two were going to possibly be down graded. Xerox had been rated A on the Merrill
Lynch report and the ITT Bonds had a BBB-, both would have been investment grade,
had that been true, but Xerox actual credit rating was B+ and ITT was BB+ so those were
junk bonds. Southern Cal Edison was junk. Sola International and Enron, they had
carried them forward and transferred them because they could not even get a good bid on
them. On Enron the bid had been between $2 and $.50. she did not want to call that shot.
She wanted them to tell her what to do with the Enron Bonds. There was not enough
assets to satisfy all the obligations against Enron. They were in bankruptcy right now.
She did not think that the bid would ever get any better: They did not have a good
enough market to get a good enough bid on it. That was the best that they could do.
There was not even anyone who wanted to bid on it. They were a bond holder which
meant that they had a higher claim on assets than shareholders. There were so many
liabilities against those assets that she did not think that there would be anything left for
the bond holders. They did not have any reason not to have an Enron bond other than it
violated their policy. They put it under a restricted asset so it did not show on their fixed
income bond portfolio, because they were in violation of their policy. There would be
class action lawsuits. They would be part of the class action lawsuit because of the time
it was purchased. If they wanted to keep it in the portfolio as a restricted asset category
was to authorize them to keep it. They had $50,000. It was worth $1,000 right now.
Their down side risk was $1,000. It should have been sold when it was not an investment
grade bond and it was not. It was now worthless. She did not know if they wanted to
keep it. It had dropped below investment grade on November 28, 2001.
Mr. Farrar moved to sell Enron Bonds. Mr. Reagan seconded. The motion carried
unanimously.
•
•
•
Fire Pension Minutes
August 29, 2002
Page 7
Mr. Reagan stated he understood that there was a lawsuit on Merrill Lynch in New York.
Did she think that they would have a part in that because Merrill had been there
investment advisor on this?
Ms. Longer stated that they should receive class action lawsuit information when there is
a class action lawsuit. They were part of a class if they purchased a stock or bond during
a given time period. She would think that they would be part of that class. As' far as
recourse against Merrill Lynch, they wanted to talk about the loses taken on less than
investment grade bonds because they had taken about a $61,000 loss on less than
investment grade bonds which Merrill Lynch held in violation of their policy. That did
not include the $50,000 loss on Enron and the Sola Bonds. The Sola Bonds they could
not even get them to give them a bid on. It was a junk bond. Merrill Lynch was pricing
it at $.89 on the dollar. When they put it out for bid the best bid that they received was
for $.49 on the dollar. That was another one that they did not sell. They went out for five
bids on every bond that they sold. They could only get one bid for it. Without having a
competitive bid they did not want to sell it. They will continue to get more bids after the
transfer. The next page showed them the bidding that took place on the bonds. A
number of firms had passed on a number of bonds. The only firm that would bid on Sola
was Merrill Lynch. Their bid had been $.49, yet they had priced it at $.89. Her
recommendation would be to try and get rid of it. It was in violation of their policy. It
was a junk bond. The next page showed them the corporate bonds that had been sold and
the loss that had been taken on it. $91,000 loss; $60,000 were from bonds that were rated
less than investment grade. That did not include the approximate $75,000 in unrealized
loss that they had on Enron and Sola. There was still a question in her mind if they had
recourse there. They did have the investment policy and those securities were not in
compliance with their policy. She did not know would answer that question. The Merrill
Lynch products they had to sell because none of it would transfer. The losses were really
the strategic return notes and strides which were tied to an EMC pnce. They were
aggressive investments. The mutual funds that they sold, the largest lost was on the
Conseco Fixed income fund. That fund had a weighted average credit rating that was
50% less than A rated. 10% of it was junk bonds. They sold that, Conseco was in
bankruptcy anyway. They did not want to have a half million dollars in a mutual fund
run by a defunct company. The preferred debt securities that they sold, they did have
some preferred debt that was in that that was less than investment grade as well. They
kept a few of them that were investment grade. They added a couple that they had in
their portfolio that was triple A rated. Most of the large loses there were on junk. The
Molorola and Dillards was junk rated. The Tribune Company they were convertible into
AOL stock. They did not carry a very high income yield, so that it was really a play on
American Online Stock without much income. That was the reason for the decline in the
value there. Xerox went to less than investment grade on October 23, 2001. The
Conseco fixed income, the Morning Star Report showed the ratings on it were 50% of
less than A rated and about 10% was junk. The 30 day SEC yield was 5%. They were
not being paid to take that kind of risk. They were not getting enough income yield to off
set the kind of default risk that these funds were experiencing. The three year returns
have only been about 6% on that fund. Most bonds funds were about 8.5% year to date
that are investment grade or treasuries and agencies.
•
Fire Pension Minutes
August 29, 2002
Page 8
They held their position and gotten rid of the things that needed to be gotten rid
of. The only problem was that on the fixed income side, now they had cash reserves on
the bond side. They wanted to get that money back into treasuries and agencies because
as a percentage of total portfolio their government securities are under 5%. She would
rather see that 35% or 40%. They wanted to pick their timing to go in. Interest rates
were at a forty year low. The ones that they were buying they were trying to monitor and
to not go out there for ten years. Bonds did have price risk. If they bought a ten year
treasury and interest rates went up, they were still going to earn their income return, but
the price of that bond was going to stay down. They did not want to go out there and put
a bunch of money into a ten year treasury. They might sprinkle some of that in there, but
with the cash they had raised from bonds they were trying to take their time and see if
they go a little bit of an increase in the economy going into the fourth quarter and they
would have a better buying opportunity on the fixed income side.
This was their report on their portfolio appraisal, it was every thing that was in the
process of transferring. Their equities was at 41% of total. There was still some bonds
that she did not want to keep, for instance the Ford Motor. They had sold all of theirs out
of their accounts because they were down to a minimum investment grade. They were
not in violation of their policy. They were not junk debt, but one more down grade and
they would have to be sold. They have been out of auto bonds for about a year. As they
find other opportunities in the fixed income market, they would probably sale the auto
bonds. Restricted fixed income, those were their Sola and Enron. They would sell the
Enron and try and get a bid on Sola when it comes in. Their treasuries were only 1.6% of
total portfolio and their government agency represent about 4.5%. They still had CDs,
about 2% and 1.2 monthly payment CD, about 3.2% were in CDs. One of which is
callable this month and will probably be called. For the total market value as of Friday,
their were at 9.93 million. Thatcompared to about 10 million on July 30. That did not
include the right down on the bonds that they had sold verses the prices that Merrill had.
There was about a $200,000 difference. $150,000 difference on the fixed income prices.
Net net, their portfolio thorough all of this has held. The equities have come up this
month, enough to offset the decline in the pricing in the bonds where they had to sell at
current market prices. Their current stock holding, this was another way to look at them.
The first report just showed them the alphabetical list. This report showed them how they
looked at the portfolio. It breaks out their equity holdings as a percent, but also breaks it
down by economic sector. They could look at the different stocks that they have within
the industry and equity category. Then it gives them a percent of what they own and the
sum within the industry. They could see how they stacked up to the percent that was
represented in the S&P 500. It was a good way to look at their portfolio in a little more
detail than just looking at the names. They really had a good structure right now. There
was still some tighten up that needed to be done. Their capital goods was at 9.8% verses
7.5% in the S&P 500. Under their consumer, Noncyclical, page 25, they had a good
weighting in food beverage and tobacco, house hold product and retail. Their consumer
rating is at 22% compared to 20% in the S&P 500. Transportation and cyclical industries
are about 4.75% which is approximately equal to the S&P 500. they were a little bit
under weighted in energy. They would beef that up with some of cash that is in the
portfolio. She would probably add to the Royal Dutch and the Chervon Texaco. Even
though there had been a lot of upheaval and chaos, they were left with a good core.
Fire Pension Minutes
August 29, 2002
Page 9
Financial, their total financial weighting, which include banks, financial services and
insurance companies, was at 12.4%. That was a little light relative to the S&P500 at
20%. They had good medical supply companies in their medical stocks. Their total
health care weightings was 14.75% verses 13.5% on the S&P 500. They had a good
health care weighting. They were a little light on technology stocks, but the ones that
they had, they had sold Electronic Arts, and lighted up on Microsoft because the
weighting was too high. With three equity managers managing money for them, what
they had discovered was all three of them had stock in the same companies. Tech was
still in a big correctional. A lot of their costs were much higher than where the
technology stocks are currently trading. Their current list of fixed income holdings.
They could see the weightings by S&P on what they had left Anything less than BBB -
was junk bonds. Everything at they had left was investment grade. They had a lot of
good bonds in there. She would like to see more government and government agency
bonds in there. They were going to take their time.
Mr. Reagan asked because they had junk bonds and because Merrill or Yada did not
comply to their investment policy, did they have any recourse.
Ms. Longer replied that would be something that they would have to ask the attorney.
Was Merrill provided with the investment policy?
Mr. Reagan stated Merrill had assisted them in developing the policy.
• Ms. Longer stated they had been lacks in keeping them in line with their policy.
•
Ms. Longer stated their total losses, in their realized loses on the bonds that were junk,
plus the unrealized loss on Enron and Sola that comes to about $150,000. She would also
say that the losses that occurred on the preferred debt that was less than investment grade
would add to that and the Loss on the Conseco Mutual fund was also out of their policy
limit. That would also be something that would be included. They were talking about
$200,000 to $250,000. If they wanted to get info stocks rated less than A, then they had
a whole different ballgame. Looking at the realized losses year to date before they came
in were close to $500,000, year to date. She would think that there had been some stuff
in there that they had to get out of. If they got into that, the attorney would be looking
back and finding everything that had been in violation of their investment policy. She
suggested that they ask Catherine Hinshaw if anything like this has happened before.
Everyone had taken losses in this market, but when it was clearly in contradiction with
their investment policy then it was a different ball game.
Mr. Reagan moved to pursue researching the legal aspects of recovering some of the
losses that were outside of our policy. Mr. Farrar seconded. The motion carried
unanimously.
Meeting adjourned at 12:30 p.m.
•
FIREr�I N'S RELIEF AND PENSION
SEPTEMBER 2002
.OLLOWING ARE THE OBLIGATIONS OF THE FIREMEN'S RELIEF FUND FOR THE
H OF SEPTEMBER, 2002. YOU ARE HEREBY INSTRUCTED TO ISSUE CHECKS TO THE
PAYEES, IN THE AMOUNTS SHOWN, AND FOR THE PURPOSE SO STATED.
•
•
DATE OF
REGULAR Year To Date
EMP# RETIREMENT NAME MO BENEFIT REG BENEFIT
79 11/99 ARMSTRONG (DILL), PA
74 3/86 BAIRD, JULIA
2 3/75 BLACKARD, PAUL
63 5/72 BOLAIN, ANN
68 7/99 BONADUCE, MICHAEL
44 9/86 BOUDREY, BETTY MRS.
45 9/86 BOUDREY, HOWARD
49 7/88 BOUDREY, JACK
4 6/67 CARL, FLOYD JR
5 5/72 CASELMAN, ARTHUR
57 5/90 CATE, ROY
6 4/68 CHRISTIE ARNOLD
84 03/01 CIRCT CLRK WA CO
85 03/01 CIRCT CLRK WA CO
8 10/76 COUNTS, WAYNE
61 6/66 DAVIS, BEULAH F.
78 11/99 DILL,GARY JOHN
11 2/76 FARRAR,ALONZO
38 5/84 FRALEY, JOSEPH G.
92 03/02 GAGE TOMMY
34 6/79 HARRIS, JAMES E:
70 11/99 HARRIS, MARY RUTH
93 06/02 JENKINS, JOHN
86 07/01 JOHNSON,ROBERT
64 4/95 JORDAN, CHARLIE
76 5/88 JUDY, JAN
37 3/84 KING, ARNOLD D.
54 5/89 KING, ARVIL
12 3/60 LANE, HOPE MRS
13 10/67 LAYER, MERLIN
14 7/74 LEE, HAROLD
51 10/88 LEWIS, CHARLES
60 12/89 LEWIS, MARVIE
55 12/89 LEWIS, ROGER
40 9/85 LOGUE, PAUL D.
50 9188 MASON, LARRY
39 4/85 MC ARTHUR, RONALD A
35 2/82 MC CHRISTIAN, DWAYN
15 4/77 MC WHORTER, CHARLE
29 8/81 MILLER, DONALD
73 2/00 MILLER,KENNETH
42 2/86 MOORE, JAMES H.
17 2/66 MORRIS, WILKIE MRS.
16 4/64 MORRIS, WILLIAM H.
62 10/68 MORRISON, ELIENE
48 7/88 MULLENS, DENNIS W.
-58 9/90 OSBURN, EDWARD
46 5/88 OSBURN, TROY
81 02/01 PHILLIPS,LARRY
53 - 2/89 POAGE, LARRY
22 4/73 REED, JOE
30 3/81 SCHADER, EARVEL
41 9185 SCHADER, TROY
82 03/01 SKELTON,KELLY
83 03/01 SKELTON, KIMBERLY
23 4/71 SKELTON, LAWRENCE E
66 8198 SKELTON, PAULINE
36 5/76. SPRINGSTON, CARL
FED. TAX ST. TAX
1,658.91 11,612.37 300.00
1549.16 11,544.12 550.00
55.00 385.00
55.00 385.00
2 735 14 19,145.98 475.38
2,267.18 15,870.26 300.00
1,911.99 13,383.93
1,507.82 10,554.74 287 68
55.00 385.00
75.00 525.00
1,637.10 11,459.70
55.00 385.00
0.00
0.00
55.00 385.00
377.50 2,642.50
1,658.92 11,612.44 100.00
914.10 6,398.70 75.00
1,618.08 11,326.56 - 200.00
2,376.34 11 881 70 - 226.00
55.00 385.00
55.00 385.00
3,273.93 5,749.65 700.00
2,812.66 " 19,688.62 500.00
2581.90 14,573.30
1,507.82. 10554.74 200.00
1,393.18 9,752.26 300.00
1,566.00 10,962.00 130.00
55.00 385.00
417.50 2,922.50
55.00 385.00
1,507.82 ,10,554.74 75.00
790.49 5,533.43
790.50 5,533.50 50.00
2,624 88 18,374.16 , 325.00
1,492.83 10,449.81 78.16
1,604.92 11,234.44 150.00
55.00 385.00 30.00
1221.26 8,548.82 150.00
1,193.41 8,353.87 125.00
2,910.17 20,371.19
55.00 385.00
55.00 385.00
70.00 490.00
80.00 560.00
2,005.35 14,037.45
2,248.33 15,738.31 160.00
1 738 46 12,169.22 200.00
2,530.45 . 17,713.15
2,147.56 15,032.92 300.00
55.00 385.00
1,268.40 8,878.80
1,395.58 9,769.06 57.00
1,114.17 7,799.19 125.00
1,114.17 7,799.19 125.00
870.50 6,093.50
390.00 2,730.00
737.78 5,164.46 70.00
NET
100.00 1,258.91
145.00 954.16
55.00
55.00
2,259.76
50.00 1,917.18
1,911.99
50.00 1,170.14
55.00
75.00
1,637.10
55.00
0.00
0.00
55.00
377.50.
1,558.92
839 10
15.00 1,403.08
50.00 2,100.34
55.00
55.00
200.00 ' 2 373 93
100.00 2,212.66
2,081.90
50.00 1,257.82
200.00 893.18
1,436.00
55.00
417.50
55.00
25.00 1,407.82
790.49
10.00 730.50
75.00 2 224 88
1,414.67
50.00 1,404.92
25.00
1,071.26
25.00 1,043.41
2,910.17
55.00
55.00
70.00
80.00
2,005.35
2,088.33
38.00 1,500.46
2,530.45
100.00 1,747 56
55.00
1,268.40
1,338.58
25.00 964.17
25.00 964.17
870.50
390.00
17.00 650.78
•
FIREMEN'S RELIEF AND PENSION
SEPTLMBER,2002
DATE OF
EMP# RETIREMENT NAME
90 03/02 STOUT, IMOGENE W.
25 2/75 STOUT, ORVILLE (DEC
26 3/66 TUNE, BILLIE SUE
27 3/71 TUNE, MILDRED MRS.
71 1/00 WARFORD,THOMAS
28 7/68 WATTS, DONALD
59 5/91 WATTS, WAYNE
88 01/02 WOOD,RONNIE D
52 9/88 WRIGHT, RANDALL
DROP DATE DROP EMPLOYEES
05/01/98
02/01/99
02/01/99
05/01/99
04/01/00
07/01/00
01/01/01
FREEDLE, LARRY
LEDBETTER, DENNIS
TATE, RALPH
BACHMAN, EDDIE
NAPIER,LONNIE
REAGAN ,PETE
DOSS,MARION
GROSS FED. TAX
702.65 3,513.25
EASED) 1,405.30
80.00 560.00
80.00 - 560.00
2,290.35 16,032.45
400.00. 2,800.00
1,642.10 11,494.70
2,816.02 16,896.12
1,547.82 10,834.74
75,561.20/ 504,191.84
300.00
130.00
200.00
6,994 22 ✓
ST. TAX
20.00
25.00
1,395.007
NET
702.65
0.00
•80.00
80.00
1,990.35
400.00
1,492.10
2,816.02
1,322.82
67,171.98 /
NEW BENEFITS
3,492.86
3,455.40
3,356.83
2,396.34
3,219.73
3,235.68
4,920.63
WE, THE UNDERSIGNED, DO SOLEMNLY SWEAR THAT THE ABOVE OBLIGATIONS ARE
JUST AND CORRECT; THAT NO PART THEREOF HAS BEEN PREVIOUSLY PAID; THAT
THE PENSION PAYMENTS SO CHARGED ARE IN ACCORDANCE WITH THE ACTIONS OF
THE BOARD OF TRUSTEES OF THE FIREMEN'S RELIEF AND PENSION FUND; THAT
THE SERVICES OR SUPPLIES FURNISHED, AS THE CASE MAY BE, WERE ACTUALLY
RENDERED OR FURNISHED; AND THAT THE CHARGES MADE THEREFORE DO NOT
EXCEED THE AMOUNT ALLOWED BY LAW OR THE CUSTOMARY CHARGE FOR SIMILAR
SERVICES OR SUPPLIES
•
SECRETARY CHAIRMAN AND PRESIDENT
ACKNOWLEDGEMENT
STATE OF ARKANSAS )
COUNTY OF WASHINGTON)
SWORN TO AND SUBSCRIBED BEFORE ME THIS
MY COMMISSION EXPIRES :
•
DAY OF 2002.
NOTARY PUBLIC
6810-9810-5335-00
CURRENT MONTH
TOTAL EXPENSE YTD
MONTHLY YTD
428,630.64
75,561.20
504,191.84
;; FAYETTEVILLE .
THE CITY OF FAYETTEVILLE, ARKANSAS
•
KIT WILLIAMS, CITY ATTORNEY
DAVID WHITAKER, ASST. CITY ATTORNEY
DEPARTMENTAL CORRESPONDENCE
•
LEGAL DEPARTMENT
TO: Fire Pension Board of Trustees
FROM: Kit Williams, City Attorney
DATE: September 3, 2002
RE: Spousal Pension Benefits
•
•
After receiving the Attorney General's Opinion that pension
benefits for widows of retired police officers "shall not exceed one-
• half" of his ending salary, I was asked if the same rule applies to
widows of firefighters. Apparently, these pensions have different
statutory rules
•
Police pensions benefits for widows are governed by. A.C.A. §24-
11-425 (especially paragraph f - copy attached). Firefighter pension
benefits for widows are governed by A C A §24-11-820 (copy
attached).
Within A.0 A §24-11-820, there is very similar language to the
police pension benefits:
"The sum total of the pension to be paid the
spouse or qualifying children of volunteer or
part -paid fire fighters shall not exceed one-half
(1/2) of the salary attached to the rank the
member held at the time of his or her death as
an active member .... " '
The key distinction is that this limitation part of the statute
applies only to "volunteer or part -paid firefighters", not to the full time
fire fighters Fayetteville employs The police pension language was
NOT limited to part time officers, but covered all police officers in the
pension plan.
CONCLUSION
I believe spouses of full-time firefighters are entitled to "a monthly pension
equal to the amount of the pension or retirement pay" of their deceased
firefighter spouses. Widows of retired police officers are statutorily limited to
one-half of the retirement pay.
•
•
•
•
•
t.
10 w w
< rrfr m.
CD
cr 0.
o m
wY w O O
0..M
GO C
E..T° 7
Y O
53
1 WM"
mCD 01 0
+p'7 ^+
-�wC
r
ocoAi
E Cr CD
41 rati
p. O R Y
I.< 7• a
(C < 5
E. p
O -r .C.11 m
CD
S.
CD 10 7 m
�R,(TOR M
a5.
��
K law
a OO r<
7"w ,9-
m+ Y 7 G
R A iCM° N (.
7'w m b O
s
0N�
et pp CD no
r R
CD re,
4 SO
o p Y <..ryj' w
O x' , N ry
mm r„bw mrm,.
(D y Q. G.
a.° CD(' co
a< y, m m -'� m
N y
O^ "Rf ylth N V 1 m
v m m m
° p m a
Do
m cen
O w y CC
v7 . 7 S r
CN=n w y
CJI Re w CO
e neo G,g
co N 0 C. C. `<
-.. gr mm E 194:
R
w
c 7,,-'mare.00.S
m-mma..5 m N'Hpex.
9en astaa.m-XcL.:
5•� M.� m $<< m a
n R w R A w A« y
•A y 'w -'a0- w
co -OOw� 00+-0
0> tvR p w w p o y m m
Ter Q,C.p 55. Q. y y
w S - C ° w rd -
en
q G m pm amry°
7 L4 0 etc-
O to r
Y wma l5 7,,.
P
m..� m 0 7 m7, ml`C'
g 0
'p
a°
al m5mC? r.
coEUmm
cD Cr
-, n `44 F7 714 m- 0
p -w Qo p.a
ig
mm8m'm
y O g w a ‘.1:1-.
24-11-425. Benefits — Death of active or retired member.
,a o
Pg 7 01
en n
m en
7.
c m
7 w 7 a
°' o ory
'6Z4 -I I.6Z
trO
a yree'% m `•'e n
— Retirant receiving less than one-half sal -
6Z9 '19916am!
al
CC D. -' >
n 14•L
c 'm m m n
V1o O n a
'1 tn_ao=
q E m E
- m -.
ap =_
e. m<
- E.
o m .-t
'F
O O
o
o 'n
10 -
6 < n J
o my
-aam,
n y<m
m
0<Y7: CLAM
O0
O
am
Xy
CO r
a De
a0
6Z9'19916am!
sa,LON asvo
a
.w..w Nx'm r'p m y,- r1-'4
0-3 fir; H7c'r'o �' .p
S °.o O m rS.y.R,... N
CD m m 0 a 7 rO 7. t0
m
mn3'opan �Rw
a "^J' m m y m N 0, an d
y(D c mo 7'.R..
Sm S b SyD ,_ w o
=m y m 0. p -w ac m w. pR
O O m Y en y O
83/45 tit' 08 5 lig
���
k0 `°
,a
p R m m "aw c
CD gmCD y
s+Wb-,ro0 b..9
m Axa m
A ,S
.
0 co A7NmO"nA w 5
s-- y aa
O m Cr.; w0 7A
mmEP
.o eq- .
m aIx, CD ab'm
0 a_< b c 0.. a
y < R < C
V yR y. S p y
a w S.n..m w C
co"ro
w .^._p O p N
a m
=Pati k n
W m m m ¢. w L".
wp O
O m m led.
O m p
R B aa•a c.� ..
O C 7 O0
of the additional examination.
RETIREMENT AND PENSIONS
ao`< Sy ca ova c.m1 m E 01. 17 w 0'0 ti w y
gel S�'m G,mmwr5-4 pi aN w ari Cyp Len m N Sw7C.R-O WN co am P'"`e] <%.M<
ga Rm .. cr =0 Sw 7+ p S
M000 00000
cn O ^ C 7' .. n o o N h. E 3 w O O .�. p- CD H N `"F A U1 N 5 m° w H aa< 7 C. 7 "oma w p'
0 7 0.,7 aao-n a B 7"p'3 C, ap.RRw 7'am a,7 7 o RRaRR
bEm,o�-^0wioo07mc.fD�5�""cgmOD mm°e.wwRomsyo-co �G''o'6mCh co awac
<mCD p a•m• mw�va,-f0•t; t..<85.rz5a�y en "5r.0-ooepmca
7,m Crg o -n'...° p O.w w m m Ay G.G.t. �m 7 C a"moo QO w o? 7a,C.op n 7'm go
m p O p an 'y 7 0 R H.m 3 (°°
o 7 9 o o,an w o p 5'y m ao I
p a❑ .+p m ? 01- 53 a -+o m Sm CT rprN m `n'R.rj S� .- dC m (DP '0 0 S
a y O 5 O< w a
CD
m m .�-• C b m B A' rwpi R w 'w'� N p b a y a .mry 0 '7 m I m m 0 a< n 7' ^ m Crn rp.
m •• "° y 0 y C, . R .^.� h a o CM 07 m 7 m . CD a< `< 5 re o y 7 m '+ W m", •OY. m, a.
On�a w 3 wm7C wm SnnwC - mp'7r} wma n7G'
c L. Oo m� 0 n p,m ~mac m mb wmmo aRA pb `�'-,m �G'r7 n�<<co wOii+Q O7
a " £ m O"w m a w/6 ger w '7 0.0 ^ o b c°* F7
`<m S" n S -yqy Om.7 �„-�- .R GC ^'rr ..m �^"
O^ e. m n 7y O
" b mb m p w O o '+ O m O m -n 0-.1r; m n 0" m m C C o' m a< m YaG w 7 ri a C
pa"49`G Q c*_,n ],Y nt.-� 7o m p m Ro<m F"m D np Y''Ow r« a4y °-%°p
mO^y a.p,r as r.y Oy.^<1"' r...r" Co0mCr .m j Wp,°w 7rta
F.F. y ."' m d b G. m w a m ., m p 0 0 G' 7 • 0 " r y a po D 7 't a• 0" a r" 2 c". ,mo m
m 7 or as G L E. o. cr 0 G' w '* C 5" a w cl" S 7 �' `G tT y `+ ^ •mi •• ' a. n o. < m 7 m
,7 7 m , 2. o y Ga -- -,,.r m w c. 0.o ,aa "ms r -C 7,y C mG'o C. rm7. M0 r^.7Di 0 7 �.
a< `,cc a i a2c"'•7 co Sy yyEa"9lo 0 n. a'y .-• y 7 m p. �. m g. 0 m a< 2 -bei E`•;,.....m0.as
m C'°^ w 'd 0 .m.. ti y C k w .- �.7 R w aro? en < m n 0 y 0' R `< a Y a 54aG a< a`� 5. m �, m mo
rr S t9 0 0 m m C iaT •`� 7- m � n . S� m El °- b w 5...2 a --°tl "
`. nw Ny.<..wm =; m7.ymwo Gm�cam.r^-m <e'<acom p_i, 'm m 0m
2,o w e 0. a aR I. F,. a 0 w n S� v.j p
y.p o'7 Cu • aN Rm 5.N$, etc"
o C m y
.-- Poe ... mr* 7 D O R� /...1 00-2 a "L - m n p
S'In CD Cr y v
CD m c.0 o_m vel m y a^ roc �7:m '0 0.
w ao SSa+m 15.10 m
w, -y m7m�77"G..-, wa7 my<. u0
o C P•1' n o y^ a 0 7' -°i O w ;yea; S 7 7 w
oq as S ✓^ ..,... -n 0 m m 7 w r... m av as
v m -.w 0. 1E -
co .-p Hm "eta co.- .ro�.oa'
w 7 C. .. R S a w w y ^� p So S
�`< `y° << :: m w am w.„C. Sn� m r.", 7 m
cnsw m m 0 °° p+,ti �m m oxo, H rr�.�
7b G.mwM 0 m ,,ym E. 7" 7-.'n.
rn SD
W 0 F "1--et.7�r. I-. 0 7y N ".7w
y R re w O q w a w (. m p m 0.•
15 0
0
Y
0
0c
O
r
0
C11
PtPt
m
z
z
cri
to
O
r
7
.x�
L
N
N
c.C59
a Rwm-oo_ob n <sPo3m?o' �aNGmm
m.. mw
'•PbO8Nam m 0m `a0 CD> 01 a OD .+ Vco O) N-
-
0-0 n <- • mV:]0' Wc1W.d..
.
��- mm9�o5-y G:n9 0 m
^Ba .o0q'a.oaOpo
00 CD fO
(jNpA a OG' m G. m to O d _1,tc
.ap�tNrm j • amm 1-1 CD N0G 6�, nNC Ii roSRq U' • . E 021u' �.0
4C1
1-1
VD
ect)
•
m$• mGmM[m zzz, =' } w5 F . , ,000....10
I-. 0. ymF+.Or000.0_ bgS`^�92m7fv�g.o=°aa:mOo
.o:wNwz�hoyY C.r6CN['Jnwz w e°'m 17 two'mah'm
m a Tc rc r f+.+r o• 000b'CNB^o Rf ,
a 02 p 0 m O,fo
O.
woYCD yP"PO o o COw to4°.'
ywGm ft�to 03
tO •
wNNwP'. C 2O F
m.w10mm worD-m o. ry ,i..omgao!Dm
� oG 2. 14.1. m nc C w 21..-.1^5.100 oor-i-YgW
•
3pmom< 9c�.J'
rym
ryFZ$
ovg
�0O.- " 01 to
amm
c" $ m ro.<Pm5'om p�
?
Pxansm pry- 0 m y rm m coQtLaC G ,ry _ p V n=mNmMC.6„to
m E. 0 0 7 552 o `g 12 J"J
a. 0 m W 0." m •�
p �0 �0 it C,
w 094 .p pO . CD O
Lp R„.1A Wb m 0 CD
0%400° o•,-
" o
`e8 fp o.mCD CD m0``S
ID 4111 to "• o Q co 0
a m n p m
to 2 O 0 0 'C. y
tow`<
em '1� W
aa.to co 1-1 �'J P
om ssv WE
Ei y 9 m m
W WOG Cit to
"o�•w �0 W
G m p P•o
OO m 0 `1
7- mr. a"
0 G0 SH
w G C. 1D m m m r{
A O 0 0 0 4 0 f'r
•
n o m nro m So m H'o'mo C .;y ? t0 ofx 4�=0x
0 m an d 0 n m 1^
O�M m v Q N N• C.P .mom+• R GOG A v� G yam F. - •-• em,. co ^ n
R,<ot+p<?„.mpm o..pp,n 0R•opm.ate 0,,, faro c`z -...n
w mgr - mwm�mosm �mRo°^o ob o °,,,'o nyeatm -.
�pp °�*,0.
y o`47e<"'y << 0 CD 'StTm S°n01 R �o m❑ _QCD°
"' c: p' Y m O o m w co m m r c w m� R n w o004 5....„ �• o m 0' � :0A00
, `° '. w,
a.� 00 n ca, 00 R*." n m<yp'o m m c mR o ca En m g m m 7 n 7a ow. am• X7 Sm
do p, 9 o'm"e'p °..?N.-. 5'ogro ga,IP cram"m EOe S,<men ••sa"
P. cm ` n tl r°m of 'm$ pop m .. p 0- o �•" c0* o. g m 0 0- R 0 m `G •< 0 • 0 C'
a 5,1 rr mm'm+mJc5i'-ar.cmo2g.mc0.111.g 'Du °z
Qpm O m o'�f'.p+�G aE'•m 5174.1<"," ° m Rcp.. <<`e°.o �� ma N,<0
on N<� P.m m roil W F•pa0 PaN'°"'G tyD cNrm ry qty < m „Ms '^ 0 �0im
?c�� VI .°. y ° CO CO n � O o "+ o O as m ^., p7 n o 0 0 0- N :' 0
N o• G a p, .'^ N faD R M v na .--• i6 to 5-10:00050 ., '< �f a O !G 0.1< M-
P'
0- °E- °yG
P.9 g.
o • ° ry .0 0 `<
g 8 02
0 m m
O - Sy 0P
• CD r a
Say a°
" aS
E. co p, n m
Otr,qs Er COI a
Or 8.n Dam
`E. o°.7a
00 -aron C
0 0 ..
<* 0 o a
pop W m"'�o Rrom ammm°c".,m 0 g S.Pw
(4 mg.»mFdoo.00r'mmRa a
A., c*e .91oy''wyfoan o 0
vi A M o p n Ov m c* .O' 01°-"B"° 0 R'O
"'omn0'^ �n ppop''R+ co S g p'5
0,o 0 R. `-Sm m, a"Y xm'�'oi oo Pi CD
g.g Cmaoon Ro gi`o O•w m• 1-c-°'
'oi �'p a<SC �'' gSomm" co y<r'
w +�00 m Ro o'm ° 0- C,...m p� D El
o
el- a°gip, °.ym omy0mS-00:0)„.0 RB
'+p'p m mm 5m o'<mo p -g Rn, m
a 0 0 o O m
In
•
•
0.m E �* CO CO'G.E m n 00 COI Rr.
�' L' ...�' R p•-• .. yp1 a' � 8
...,'S F.. N N v m � m Cr y n. v W � Y m° Oram X N m C1 O C '.P. .JR. AoW� S m O ya S N 2-q a.. m a cn
mn p mmo.. a0gp F- ro ro orom0:; 0 m"'+-� <y °,-.°°=•
PI
m o 7 OD
.ro t9 t. 2,, C7 ;z'n
o 3� nm-,- G.n. m5
N N A n O Q
Y m y: Ey y
. • .N a '-
m o.P c.m.c m r
C0
o• xo ?mms
DoH
co 0 i....'o.0 o co Po �° X
WP' ' o 'p . 0 a 0
Na• omy0Toa°Hoo
N a° n, G C • m a 0 co y
'--1 Etootoacoason
ohm 5. Cr `o'5 -E E.
�+v2=°cmit CD 51 = _8soiS.
Up ES' tiA qto. VyyJNr
y.y n0. `rO Z. a•
N"1 nnCo-CC o c'.n w F}� m
o.mro ° wc.
0C9a00FOPI 'at at
Or arsam ow•
•
r
V
0
0-3
tcl
C7
M
z
En
• z
m
F.
go gCb a.r.+ '+c']�'CrA oten' v o'mayn w•'y?m}Sc c$o-3z n n��p oPyp.EJ*mtom
b"Sm` 0.0 <NMSS17°w'NODton'aoXp0 tomm"mX Gg p p • ?Q m -"X" 0.P 0. on
ro o 0 a o m g w m . n 0 0
• p m . p p iP m 0 o p R o p m w . -� R ". R
pp y ii' w m m„ m G a �-..°.y m e. n o `< o m '< 'r a n w 7' r, o m m "1 E y o
g' p n S p- r 0.E m o y 'f p 'Y o S 'O E a n o CJ ry .T E S f»
m 0.crR to o n ..• m .. E m o Sr.g R m m rom g o r,"g'o n0." ni
0.
co o
- o 0 tU ` 2. 0 a a n p a p a nT N R O' O R' N a a, n co R.
d O v p O 'Y = W m m• " in' E m 0 'y 0, A ri
mw 00 IX 1-0, 4 gTjR 11_,n nCD o.o'p 000 •roam^.y11 n o a0- • • n y g00 min n o
m omcm m m"ppmco5C aap:'p°ma'am yo00„ gmE-". o m g 5.n o ow O aGw '5g or
m"'°po wm�oYj 0mroo ��E n: g'y (A� ao,w ROS 7noc r, `.<mm .Jp w,;•c�Smroo 0
a cogCCop .ro .601SC•°opro Sr.o"o°0. "'0.g w • < •ad. '" °1 Cn O
• .0. .W p F+Nm m p n+ o m g G .m y '.ny C p Lam.'..y o• ro "'p) pp o �< 5.1°,-..2-9
N w m 7 o m C m
a.d fir
-" • .. r. n-
'0
, 1 o A
ro< Co 0 R m a 4
"0 oaSq<el.
'Ko 5 cr.SC 5..
. 0 o a Q 'CO a p cm.
gr. 0. ILA mg';w
m a Opo m Rel-" C
5.g no an pp y
y
Cm am 0 0'
'm
o.o "0 C mo
po "-p0yy
7 P - m A" w a
m i'en-i' W ro 0 pm0 S
R m nRay .w"� N
S'' ° I „Co Tn.n 0
0.go-
g' ..0 5 ° 0 °
-n
m
o w
m g
yaw
o
0
1•11.• S
<< m'
CD
Cr
O at
a• y
}p' N
O m
gg
m
Sp
,a
0 „
n
ro g
0'
0 0
gp
R
o0
0
G co
p 0
a°
m
n o
5.• g
n.m
0 ""• f
CL, • m �'-6-' F0.m m a• a-- rt
Ro
or co • 0 R ro.0• n m 0 o 0
ra
t
'rm S tTj
0.Vwopp°Smw S•nani
a<Rror pww0y °`Gp
fp m opag.g co mmmRP P.'o '' C m"" M.ena m Al WyR"y ER'+r01n ar. n. o
er ^ p0 mn 0o,RgorgPmSn
ni 0 0-
co• �a 0 A
0
ti omyK
'La;Oam N ID m•.A ft
• Nm p.
o =$ wd aym xo- m
Co G ec
�C' R O w cc,
0 aA R m HGw p p 0pm,.,°pon. m0.fJo en} a
ow en m
DO Sa
< ].
ro
•
•
Longer Investments Inc.
City of Fayetteville Firemen's Pension and Relief Fund
REALIZED GAINS AND LOSSES
(Securities not in compliance with original investment policy)
January 1, 2002 through September 26, 2002
Credit Approximate
Rating Cost Proceeds
Merrill Lynch:
Realized Losses at Merrill Lynch through 8/6/02 totaled $591,660.1&
Longer Investments is unable to determine which individual securities comprised these losses.
Sales prior to transfer of assets:
Equities: .
Ccndant Corp. 3- $60,506.00 $28,838.55 -$31,667.45
Cohen & Steers ADV NR $81,494.00 $84,583.71 $3,089.71
Millea Holding Inc ADR NR 522,800.00 $16,685.89 -$6,114.11
Mitsubishi CP Spon ADR NR $17,095.00 512,530.12 -54,564.88
INC GP NV SPSD ADR NR 535,584.00 524,076.07 -$11,507.93
International Game Technology B+ 517,131.00 $17,607.36 5476.36
Hutchisn Whampoa ADR NR $16,746.00 $11,004.41 -55,741.59
Hitachi LTD ADR NR 523,525.00 $11,115.66 $12,409.34
CRH PLC NR $25,686.00 521,480.85 -54,205.15
CanonlncADR NR 519,762.00 517,929.45 -51,832.55
BHP Billiton LTD ADR NR 512,847.00 513,621.08 $774.08
BNP Paribas Spon ADR NR $19,145.00 515,980.13 -53,164.87
Barclays PLC NR 512,729.00 512,873.21 5144.21
Bank of Ireland SPNS ADR NR $17,888.00 $18,609.43 5721.43
Banco B VIZ Atgt SA ADR NR $18,280.00 514,647.05 -$3,632.95
Amersham PLC NR $17,807.00 513,944.52 -53,862.48
Astrazeneca PLC SPND ADR NR 519,178.00 517,196.38 -51,981.62
Wcllpoint}3 NWRK B+ 548,160.00 $42,698.96 -$5,461.04
Sears Roebuck B+ $40,776.00 531,850.90 -58,925.10
HCA Inc. B+ 553,668.00 553,396.78 4271.22
VerizonContmunications B+ $49,099.00 529,929.09 419,169.91
TXU Corp B 522,573.00 519,960.49 -52,612.51
Koninkl Phil E NY NR $29,488.00 $31,124.05 $1,636.05
HCA Inc. B+ $17,965.00 $18,225.44 5260.44
Hartford Financial Services Group NR $18,174.00 514,952.44 -53,221.56
First Data Corporation B+ 523,865.00 520,458.97 -53,406.03
Viacom Inc CI 8 C 515,552.00 $11,997.33 -53,554.67
Vodafone Grp PLC Spn ADR NR $42,693.00 516,213.50 -$26,479.50
Verizon Communications B+ 533,068.00 519,429.86 -$13,638.14
United Oveiseas Bk Spn ADR NR 515,348.00 515,844.02 5496.02
Tyco International Ltd B $26,320.00 57,756.21 -$18,563.79
Tcsco PLC Spon ADR NR $29,075.00 525,218.73 4492.70 43,363.57
Southern Company A- 518,917.00 521,249.10 52,332.10
Sharp Corp ADR NR 515,292.00 515,105.54 4186.46
Rio Tinto PLC Spnsrd ADR NR 526,158.00 $26,949.18 5601.50 5241.50
Reed Elsevier PLC Sp ADR NR $18,643.00 $16,578.89 -52,064.11
Nokia Corp ADR NR $55,800.00 515,443.53 -540,356.47
Micron Technology e- $23,053.00 59,274.71 -$13,778.29
Fuji Photo Film ADR NR 519,130.00 515,312.00 -53,818.00
Concord EFS B+ 535,289.00 519,962.04 415,326.96
United Microelectronics NR 516,597.00 59,461.91 -57,135.09
Corporate Bonds:
Corning Inc. Debentures 0% due 11/082015 Ba2/BB+ 524,876.00 $16,894.65 -57,981.35
Southern Cal Edison 6.90% due 10/01/2018 Ba2/BB 539,233.00 534,000.00 -55,233.00
•
•
•
Longer Investments Inc.
City of Fayetteville Firemen's Pension and Relief Fund
REALIZED GAINS AND LOSSES
(Securities not in compliance with original investment policy)
January 1, 2002 through September 26, 2002
Xerox Corporation 6.60% due 03/15/2011
ITT Corporation Debentures 7.375% due 11/15/2015
Merrill Lynch Products:
Solectron Corp. Liquid Yield Option Notes 0% due 05/082020
Merrill Lynch Bank & Trust S&P 500 MPDS due 02/28/2003
Merrill Lynch & Co. S&P 500 MITTS due 08/29/2008
Merrill Lynch & Co. Strategic Return Notes due 05/30/2006
Merrill Lynch & Co. 8.00% Strides (EMC Corp.) due 11/21/2003
The Sector Strategy Fund VI Limited Partnership
Mutual Funds:
Conseco Fixed Income Fund Class A
Preferred Debt Securities:
Dillard's Capital Trust Pfd Cap Securities 7.50% due 08/01/2038 B2B+ 550,000.00 $37,118.52 -$12,881.48
Motorola Capital Trust Pfd Secs. 6.68% due 03/31/3039 Baa3B13+ 550,000.00 $35,773.56 -$14,226.44
Tribune Co. Var Exch Sr. Deb Cony due 05/15/2029 Baal/A-t51 $31,400.00 512,301.77 -519,098.23
Credit Approximate
Rating Cost Proceeds
81B+ 566,731.00 $26,600.00
13a1/13B+ 547,522.00 541,000.00
Ba3BB
NR OJ
NR (2)
NRf1
NR
(4)
543,434.00
540,000.00
540,000.00
$100,000.00
524,225.00
$100,000.00
541,057.15
539,754.65
532,557.66
573,572.41
$13,059.25
$133,000.00
$500,011.00 5461,539.13
-57,442.34
-511,165.75
-538,471.87
-540,131.00
-56,522.00
-52,376.85
-5245.35
-526,427.59
533,000.00
Additional sales following transfer of assets:
Equities:
Baxter International
Microsoft Corp.
Union Pacific
Newell Co. Inc.
Electronic Arts Inc
Forest Labs
Tenet Healthcare Corp.
J. P. Morgan Chase
Goldman Sachs Group
McGraw Hill Companies
ChevronTexaco Corp.
Toyota Motor Corp. ADR
Kohl's Corp.
Total Fina ELF SA Sp ADR
Bank of America
Novartis Ag ADR
Wyeth
Cisco Systems
GlaxoSmithKline PLC ADR
Bed Bath & Beyond
Tenet Healthcare Corp.
ENI SPA Sponsored ADR
International Business Machines
First Data Corp.
Microsoft Corp.
Lockheed -Martin Corp.
Stryker Corp.
Nestle
8 519,233.00 513,022.10 -56,210.90
e+ 569,018.33 539,558.80
B $17,617.00 $18,228.44 $611.44
A- $14,005.00 $13,825.58 -5179.42
B+ 519,052.00 $18,900.42 -5151.58
B+ 539,120.00 $35,773.92 -53,346.08
B 529,815.55 527,881.15 -51,934.40
B+ $22,256.00 510,124.19
NR 517,837.00 516,325.00 -51,512.00
NR 517,806.00 516,667.89 -51,138.11
84- 535,659.00 529,257.11 -56,40L89
NR $19,839.00 $13,491.09
A- 526,191.00 $26,780.44 5589.44
NR $14,574.00 514,392.96 -5181.04
A- $28,914.00 529,450.81 $536.81
NR $17,869.00 517,940.45 $71.45
B $23,018.00 516,733.49 -56,284.51
B+ 557,067.31 512,689.61
NR 521,960.00 514,177.07
A- 510,779.61 512,150.63 51,371.02
B $28,508.78 $30,485.08 $1,976.30
NR 514,785.00 517,906.95 53,121.95
B $47,729.00 533,569.18 -510,097.45
B4- $51,474.00 564,518.05
B+ 5151,639.67 5109,291.45 -52,796.37
13- $65,270.18 564,511.45 -5758.73
13+ 540,639.00 544,181.16 53,542.16
NR 528,089.00 529,703.61
-$29,459.53
-$12,131.81
-56,347.91
-544,377.70
-57,782.93
-$4,062.37
513,044.05
-539,551.85
$1,614.61
•
•
Longer Investments Inc.
City of Fayetteville Firemen's Pension and Relief Fund
REALIZED GAINS AND LOSSES
(Securities not in compliance with original investment policy)
January 1, 2002 through September 26, 2002
Credit Approximate
Rating Cost Proceeds
Unrealized Loss on Bonds for which competitive bids are not available:
Solo International Notes 6.875% due 03-15-08 Ba3BB $49,477.00 $24,500.00
Enron Corp. Senior Notes 0% due 02-07-21 Ca/D $3 1,130.00 $0.00
Total Gain/Loss
(1) Unable to detemiine if securities are rated.
j2J Debt securities of Merrill Lynch & Co.
j3) Recdenuble for EMC Corp. common stock (rated B+) at maturity.
(4)
38.88% of portfolio rated BBB and 9 38% rated less than investment grade or non -rated.
(5) Convertible to AOL common stock (rated B-).
•
Short-term Long -Term
-$24,977.00
-$31,130.00
-$197,629.14 -$391,538.10
-$589,167.24
This information has been compiled through sources Longer Investments Inc considers reliable, however; we cannot guarantee
completeness and accuracy.
•
•
L•=
1
r•
• • • • •
• •
••
•�
• • •
•tyy •
h
N
•
N
p•
I V Lt) O h m OI 0 I" f'i f7 V H m "•°
0 0) N N N N
N N CO
N
N
0
p
0 41 R A IR
CO
(r'1
p•
R 2 O O Y Q P
O O
P Q O fl N N
31rt:Chi; T11T4t i -TThXt'Ull tit- "—IT7TWIRI--7774Tni'll- —7S3Z:''l ff',- 'ITC —77757 -Er —51u n-74-- -5,7.p'47-FR- _ -' --.
' -----OttriTirn":9TfitS 1.140E1(1111 laill 1t`(I3UU I.2.f41pi:S1t7 lUliY4.Til .00 -` -71']255.46t L w -1r7." Iih042:in »»•_ �' �`.�»l•+
Fun 4 TGT41.S . . : 1211S (UV UU IF i1CU- II[1416. UU 1UI3YUli i .UU - (152)5. 66 911161 i4 arec 7ibU41. 11g-
.....,_ 4.44-.44 -
1
,
i —
r,...
.� .. _ •. r "' a ' iia p' ow. e.4- i 'M
•
p. .xwrFn . _rn+nn
... .. ..x.. r' T• ..'.'.•..�.. .�.��.awnr..-5i. ...vrwr>+r»"�N•.'. .wa. _.rte .•.+ ... .. ..��� vrrnv .: ri n r rcx....+— .—•.�.w �. .er.. vw•w.r.-r _..T.y
•
• or
F.
• • • • • •
• •,• • • • •V••
C N co A 0 Ol O r V (7 P H co A O m N N
NN NOm0
N N N ( 0
M•
0(OO'VV
t) C)
m•
V V VO
N0N
) 0
NeA 4isiN :.'cittfl-e 4.44.I44[K F 1MA Cl AL N-AkABEHEkT i'AU 2 .
DATE D/17/I2 612110
'TIDE 11:27:34 9UDS£T PER£QRifAHC£ REPllRT
MUM
ninth End Date: 7/31120D2 1
CURRENT MIMED ____LAST, _
Ca
14:I
1
2 --CI
CI
iona<
T:
CO
t4
LA
-.I
M
W%1I
Ur
=0
GY
Co
W
2=
W
I•`
I
{{ ,,rI))
41
to
W
2t1.
4.
W
n
n
1
1
11
n
111
II
1
1
;
I
I
iI
141
: 11
I
1
n 11
4
4
n
n
II
1111
il
tl
Ia
f
it
Il
11
11 .1
v11
II
a
11
4
4
gg
n
il
0
M
II
v
il
n
II
4
11
n
n
n
4
n
M
II
H
11
n
n
n
11
1
4
11
11
11
11
Il
I
1
11
I
II
fl
IItO
11
11
11
11
11
II
11
If
11
ft
11
11
II
to
N
CO
rte..
Fr-
CO
CO
40
T
1'n
hi
4.0
Ff
Illiti
.
[
It
'E
€
1
I
i
'.
-
t
'
.
-
-
_
.
—
-
I
1
a
I
i
11
,✓
a
Yypt1y
..,
1
-
I '
•.
I
11
II
11
11
11
11
11
11
II11 II
II.
:it
II
hI
II
II
11
11
ti
11
11
II
11
tl
11
1l
11
I1
P
II
v
11
to
-t1
11A.
II
II
n
I1
II
I1
II
Il
II
IIv
31
li
v
11.
II II
II
11
11
.-1
4O
.Cr
Kr
Y+
vr
N-
(+
O
c
CO
CO
•
I,
P.
co
CO
W[�
O
1
O..= "1"
CIO
ram
.
1 i1[
a 6
WW
W
p
W
W
W.W.
n
i*4
'S°
Ila
CO11
•-•C
C
SH
....... fro. rJ.
:C
G
1C=
pt
CC
1
Mr Ir^
W
es
Cam
CC
y0
N^
M
Wfrn
7 iOa
iliC
x.1
O.n
u...�.(A!1
Cn~6
rM
IC
.'1
Cr
Cr
Cr
K1
NI
"I I
Cr
Cr
•
CO
r1
C.
•
Cr
A�
Mr
Cr
"'
CI
N l7
C
N
CO
A
m
0
0
.-
N
0 C 0
t0
A
CO O) N N N
N N N N
0 N CO C] l7 f7 C'I (`� (� < d' < O 4 V co V O Y 0 inilk r� N N
• • �• • • • • • • •w• • • • • • • •
•
• L•=
• ••• •• • • • •O•
• • • • • •N
'tyON
0 r- 1 pl O N t) f N 0 r 0mp
N N N N
N 0Ny
N N N C" 01
y
I"
N Co)
On00 M
Co) Co) p d V V V V C V
0 N• NPN
( N N i• N
4
-14.0,
1
�
'
EEW Il
A4 h 11
ON all
CI
C+.^1'
OO
-tl
G+
2GJ.:"
GGr'
AC -MO
t�C1 -MI•..
tb0
t3Q
r..: r...:
CD
Gr:.
G 0
10:.`1
O
G
0
0Cia
t?C.'
.0
1.0in
.OG.
nlgr.n
- boo HYIM
r`h•lt"i....iJ0.WG•'l.tl~q[•.
ri
III
of L.0000iJ
Q .N"..hf`
M N?
Qf
N
C'Ptl"S
n.
Ml M
I
P
lr.01O
4I Y
n.. y'•f 14400
141 C40.
V°
141
r.l4Nw
Oa
•0'.•00?
'64 Pr
Q
4+•1
N
O
4•p�11'MNI•n
W6cM
I‘.Wh:ttifw
G
r-- r...
n•1 4:G+t
N 6. 011
l .W
rc..
�`i"J"T
.p FL,
V .
I91
0
Y*1p}I•.�es
N`4
^-•
MFn.
wpi"par+•Ir•I
• grate)
•1
U`J in
i+•i`n•..
RYYRa••I
M
Wt4'1..N
a
M.•
P'•
0
U'
91
..
".
NN J 11
M,�l•G
,.n
`
CO
01 Cn0
mH SII
M R: 0 11
..ICO 0
4p CI J 11
It LC
I
1x241
4
MIL.
n
CO
M
E
aCJ
4lOW
Ia Cr
- n
N•f1.
rn rr.r1 v. nr•
G O'. 1.0
}
R^OOC;f
G"?al'V'
4•1:1
Nn'tlr.0C.
n
+4
'tl'TXfl
CJ CMtk'•O
t,'cr
NrYyal
- C.G�0t,.4.00u
V^
hY
'fo
C•f."OQ
>,
wawa
Ct-V)�t?L'l
tVN9'CN>fO
.0 al .a4.�`ilMw..a
0-.0
J
AI-
M4*tl
I`y
0 Vv. am
7
+p'o
Pr.n.-f�:h.M1.
q�
+p f�G..
"`IIIFFF
Ati:
•2i 11
1
i... !1
S 11
11
II
I
"
g1l'. Q' yr
o•' Aur C
O'•P.
O•
Vf4`[Y
O•.
yr
-
,r
V'b'?O' QtT
0Ortut
n
4J•
*1
W
tY.
4Y
W
lir) J
wl
ly
W
IJ I1
C n
S n
1..-
2
10
-
ha
[:tl
6
0
c
" tr. '
c
C.
GC
G
:
ti' .
0
CJ t-
Y
_
..
.
H n
tLa o 11
W
t'.'.
0
tYr
CC
tl
1G
0
.0
04Y.
CEJ
1.J
Y• Cal r
1•+
aG 11
W 11
11
11
11J
0
'1.-
:
c
4t
i••
J
c
W
Y
c
W '.
1^
v
c
W
Y
c2��
W
Y.
1
}1•".
>1•
�.
fF
c
W
Y
..I
Y
•
_
11
tee
-CC
..1
0
c
11
l.- 11
. may. "1. Ii
11
0
MJ
1W
N.
0
O:rrNO
•Y.
GS
✓
Cs
.
4G
C.0
HO.,,,.t
- u•
I3
• 0
O.
W
to
H
W
9-0
HG
L.
•
y
Cu'O
ftf"r
L{a""
.O
G
tw.
W
L40
MO
W 1
t.
M CC✓o'ct•I04
'0.- At. G 10
H 01 tr
09 an
00
1+
fV 01A
Glti'S Y,M1••t
001^''•.+0
01 000100
o.]]
C•1W •- 0C
1T0.lM V?C
S^GYO
t
r
.040
;y•v'.•ii
r-•10/C1C
C:
4'" van
y}
._.
11:'
r' f
pN
NY
V}
`n
•l ri Ky- m N 14~
tel
M VwW
i
NY+4
am tip 1,n
N'! It}
t'J 41
= n
.
0.'r �+ 4't U'1 fb
VY .aen
44 ('.
L_ vaGla
4 N'.1tr,fl
t.. 0110
i ._
ll.. Ift*4
y-1 .
•I NU
100--43-,I1aatyQ
L ..1
wa
01. C.'
J
`i
Nt�MIH
LC .- O
211
";
wI JG ti
VIA.Y"
•.r
m Os..CI
-I
'L.me
m
✓V!m ti
4NN(M
.Mf-a.a
..
r -J n
fN f>`I44.
M.14. -C.1
ratII •`"
N
.
1•• II
H II
tl 11
La II
CO 11
I•' II'
ii
.L 11
11140 11
0 II
=lati m 11
WM
-
N
t
'a.
61
C.:
M1
-
dt
a
r•f
.-I ^t C.I
N N. I
•O •• G 0
C i� NC9J-J.
1 '�n..'�'4'ti^..'4i
Cin'1«4
N NN
OCa 60
4�}t1t.1COO
C-k04Ow
.••1
v G' 1004`+
CA
0 CGaa Ca
�.'1.
IVN
G
CO 0 CO41V
Gtat
r 1 V. 1
v
egg
lar
•J
0.1
0.0
a NM
1M1t'ti1
M.NM€4-0
444+�019.11
CJC1
SpYGG0 0a,�J'M�-•1r✓G
Cit1 NN l., M
n. ga.1'ft.'-4.
00101
CO CtitC
21-1 y
WMvt
N�
Cali Cit1
i.
..
.C•p
�.
NC.
CCGG
••,....••••••.„.
•W
NSIONN
W4•.0
-
NN NN
OO•••
{4.2 •••••••-•••....
MM
J N
_.O"
CO••v.
Ira
. �.
:eM
11
S}
4e
w
N
r4 M
MWM
-ea ,'l Y4M01141144
m ht M M
r•4
-M On /01 m
mMm
r0.J
'Pei et* Mm•nerg
Ka
et, .
- m
mrpl nim
m "M
a .9 11
11
S� n
a M II
H 11
O
48 -
y.
C
C
"vt
C
•h'gty
"14
IJt
,1LCk
N
h
11
'1
r'1
!n
.1.
O
W
rel
a
U
YJ
Pr...
=
N
h
v
/S
Y
M m m
.. ..
M1 KA
-q 00
" t 1 1 1
_• r£ J: N V'{1yYr�'
nt r(t m
'Ir `M ^.
M1 M1t-A.-f.`•Cr-
aG^..
1 1
•L1• +I
t{�
I J
v
GC10
1 1
S_ l` N
l
't t. .- "h
Y. I+. t•�r I� f..h.ft
Ca Co Cm
1 Y I 1 1 11
to [[[fff... 0 J 1n Y'
.
n.i• .- -. 1'-14y
N. .. i• t�i'�tl.-(•Y
•0 0 0a
1 1 1 I
✓r th. 1n £ F1
'..'.�.'
tm
1
1t
4
('t-ir
000
'I 1 1
.0 tN a
.
1
_ 4
CC
0001v.100
1
1n
^Z -
I k 1 1
1(' l 1l"tn
.__
A. -
1
N
. ......
O
£ _ '£
-
C.
r'1•"'1:.:[
a..-
s•
-s0:g k...t4s S
.i . .?'
..,4S.G.•O
+iS.....t r'r:.i'
s'
'R 43 11
901 tt n
.'C E] 11
0 1.111
0
aJ
lb
G_
•4''
tI
Ck
eM
r
F4
1L
F
1+
•42
4
i
4
O1
.•a
J1
.1
b
+S'.
Iv
In
Cr
.-
'3
C
O
J :i 0
0 0 r d
s i.- .=
n4 _r W• ti
U
G
..a
c.l
0 <'1 C}
t. - G
1G LL
y[F 9tj W•..`
U
G
.....0
G+
U Q U V 41 0 ti V 14
0 r GOA 0'- 0 6
C G C.6•G-= .G
W Lr•..•j4} 9W
41 1kkL�55 Ga C Ll J f
0 GF Cr 0.. qr
L•SS, C - i-.
I':,.'. L: Gi `' G+
G
CI
d'
W
W G
I CLI 4
SS
ICI CO 1.J[..`
U
1I
O
CU
- GL•
v a
D U U V
0 0 Ou hi?
s C.CC
9-019013
V
G.
.` 0
N
-
9
-
Jr.- 1:2...11
M 11.H
90 CC 11
r.1
'.:
0
-re
",h
c
1 0.•
b
_.1
""
-
.Y
+1
l4
U.
G
1.
aaa:::*III.
•4y.?
M.
c
#
C
N ''�r-1
C
WI-
�1•i r40
La..Lr•4'r1
• 7 0 O
Q
hS iL%M'I
M 0.4 H.W
10 9 0
0101
rY
0
N M /01140104 wl
041 mom 01i•1•al M r.lM
0 G Q O -;f••
r.9
0
041 t••1 1,l
t••t fM r•I r -r WM
O COO • Q
"
O
rJrS
111011
O O
rN
^ •-
L
the
'14.•19-r
' 0
tot..vf^1NM
C'1 Mr•
0.g.0 Q
w
-4
G
f..
-
r••1
•' Q
i+J C•• 11
A n
�l+•.
t
C
a
VC
*
V.
Ct.
a-
:rU •F.
04'�r'
4. P
C
a h C.
0100�'••
w
i.'b h
W
h
10 .00'01
w f. D, {yam ti.. w
Ar. 5n,
Ch
R w h w
•t. ax -a.- P'S.
i.
f•- F.
31..00
�'h•F.:f+
•3rF•rnn0'J.
04 t•. t•? 11
2` lwl n
1
"J
)
1 1411
.h
4
L'q
.T
•Y
n t.
N
to ?L}d'. ft'
N F '9 t1• t
t 0
O
It
CO .!. rtl 1R
N
T K
•!r
1i •
- 0
G.
N ht M.
G. G. C. C.A
N
.15
' M.
0
G4
AL1
0.040 MCI..
-
C...3 tin
Cl.Y
ft..
11.A11 a. Ot. 6. t1
.. 6tl.
6. GAG. Cit.. • C.
Z..
LSrA
UJ 0 I11
I
A' = 11
n
-
Ol
C
rn
li
I-•
(
` '•1•
'
1
r
44..
G
a
La
IP:
111
" C
". 14 3 C.
t c, h
V
a
Ir rJ 0
F� qp f••
U
w
tL O G 6 r� 4 J
C. w h 0 F b. L w
3 U
w
ur
F.
.i C6 V O 1 Q
L t} w t+ e.
-
V
h
.i 41 tJ
ta. 4,- f..
4
w
. C1
F
iJ O V
h'C- 1...- Ca
•Jr in
O
h•
' t.
w
0
at II
-
w
1"
.'"
.F
01
01
p.
In J• r Jr
:CGL.' YJ4.
Fn
ilje IIII Jr
qC cc OC
r£
CG
' u1 s......./1 ...ti ...I ip
G CL cc CG OG c.c.= ix
J r ter
Ci
N 1. yr Jr n n
aG it C4' CC • CL
iG
to 1."
I'b`t C4 CA
Cid
4" u,
Q'
Jr yr1
CS�IG CK GC
J1
I9G
n 1.4
•. GC
7C 4C W 11
11
W II
NI CC 11
i..
..
i-1
1
•
C:
..
.:
A
..
•
•.•'
a
3- a
- Y K
" 2L t
0v
a
M
t
0
:a c•
.flt ,..
t.Y
c
,.
= c v G h•CJr"
G f .r4 1i OM 1
tttt Y' L
74G 0. 0
c
L 1
L .Rt
r
Q W C C - a
19 ,t .1. to . ,
lC . tt=
? '•:1 '0?
a
0
�0
or
tt
..t
a
v
0•
v
t
?
0
to
rt
CwGw0
0101 � a
ra in m n
9Y.L
- C"
tkt
�++
G111
t
.^.10G
`�C5F22
S�.'4r=SS
S
•"
w) 11
`
_
i r
2tL • 5=0
t.na m1.JLILT
-='SS
Gula
2 S=.2 SS
W W w W Cay. Let
S'2...
IWWC.{
SS S.^L
lel f.Ju4'.
#�I
WW
W�4JLC4sW
4J
'
2CWC. II n
GC }•• 11
'9 M•• I
44II Cl
C..
0
I.
l
4.
C1+'..1
- ..Q
.
G
a ♦ ."-a
v
r
.'7 w'77'1
-t..i^
-7'a ^e'a-. .
-lif.
'Y.-.`"
to act
..G
000
-•,p _-,-,
lat tie
TS
J
.J
1
J
1.'.(fl
"..A
CC q.e Qf.
YG
^- fK
040.^
CC CC
t ICCCC
...
CC CC CC • 16
Of. fF'AK
SEW II
.J
-.I
'Z'
==A`
T..
`X 3L.'G
=':C GC
7. SC
F
7C=.'F =C GS'
S.7J.T.=
-
==+"C"..^..
SS
SC1 n
ICY n
0-i•• 41
11
ell
0
0
V)"
tr
Cs
n1c
t"1-
C
I-
S
. v
I.
a
C i••
t'•. CC
t .a
t1'C)
l i••
:
.•i t:
-
I.01 :
1i. -
19 1
T0f.:
tel
Ir
a1•
I.wr•.,
M •
0
0
t.4 I-.
in CZ
4'J1•••
G. -r
1n
t' 42
-Cm
0Y-
pp�-IH
Cl
GP
r•1 re.
MG!
GY y1+
r.'. HI:
5AC '
U -•..r PG
D.
G. 1M'C.
PJri.
C'•r
G
T✓fir.
G•o- .i.h-x01•
Prw
0.-
1:
Os. r'-. Ca-
0-.
G
J u
G
G.1
• .-1
"
•
010
01/0000
m"
• SO
pi.G•Cn
ea COI
A 010
07
0)
SSG11
GL 11
7..a
T. " n
CS II
'}
01. 0W
G.
• W
O
(I%/.r
by
'
C1G
M
- M
•, y
.4
• O00
tGn
tr11tl
tAy
t. MI?
G
M
OM•'r f
cr.
)
G
M
Wr
0.
00
•'1'
l4
y1
4
Gl:.ta
"0 .•
4
Cr
4O
M .iJ
•
oat
Ca
G
O?Gn"
tr AA
Nv
G
••GG'•G
rn n
O
SCJ NC
m
C/Ca
NCJ
rnh-r�.
mm
G q!^J
r4J i'I
O
CJ
Lr0
1GCtat 1010O0.a
rrr tr.nn en
G GO G GC.
n1 CJ N CJ
en
G.
NCJ
law
G
N
rn
0
C.4
G•,
m
G
'
rr0..+C0S
Im
O
NNCJti
r«S
m
GOC330.j.'•
01'10 G .r
yT mYlm n
Gat Ca J
0
an
C -it
a
OWtw
tl Mm
L:ir•`G
CCU Cc
CJ
G
T
NC
m
00.0
0401
C9
Crfl
0.1 C11 CJN
G'^
000 .n
I..
•I
.;
MI
SJ"
?'
((
n
1 II
.J n
re
CO
.q
I
101--.-.
4
c
W
•• pi
E'. C
M.. t1 qt.
.
Ar
•Cs
D
•)n
-
4
NI
. GO tG
' W ✓I
i0
•)
G
r
ca$G
'YJ y.'
•.:
.J
M 1I
VC
A
t
a n
Ca II
r ='I II
GC
0
sz..
m
as
- lC
CC
Rs
1r.
..
rG
0
11C.
0
i
_
'
.
G0 11
W
Ix
W
.
CA
".
La
W
m.J
r.
w 11
II
a 11
P N(n 11
IC
CV
'
C
J
M
:..1
4'
a
:Y'
1--
IG
:.:r
741
1.
•�
.`I.
1•tl-
Y.
iW
Y
M
'
=Ca M Sit 11
y •-. 11
1.•
SG
':
Y.
X.
aS:
as
l
SSSGG
t
J
.
”21"1 el G~..• II
CGS
=
A
..uuF
G
Cw^A
C:
Ci
Ga
Ca
J
R
1 •. --n. W 11
1.4s. "7 11
0 101 CO Il
+
N.IW Ci. I
a i•. Itt
1)12:14.1 11
!C ail- 11
0
Gi
c:
t J
n ^•.4£
40
..
5C
..I
W
W
W
0
C
..1
1.
.
Ij6'.
....rd
ti
W
•
C>
1.:,
•a:
.•.1
4.1
4:
Q
J
W
C.:
4J
Y,
..1
La
a:
J
iD
C
tat
IL
rr
t"
V
1n
ID
94 44. ...
1. CO 0111
O
.. ty
N C) P in tO n CO O N N N
N
N N
N n
0 p in m 0_ q p
N N 01 N t.) t.1 t•1 Cl t•1 N t7 P V O 4 V
m
a •t 0 O O N N
N
p
N
1011 NANL
At
aa
a •- a a • • • •
,
•
•
•
•
8_
Ir
• • • • • •
• •.•
N
• •
• •
• •
M V h f0 1.t0m01O
.N° °°1..0TO N N N
O N
N
N
O
;7;
N CV'A
8
Pi
8
8 P O
0OppN
O•
N•
Or<
141 LO
3a6eft�etail TOTAL PenK.ioafxp '75,161:20 as aa�,ir�.ea
. mom-
SIL'FiWCIIUnAinIECR,--4,eri}rS$.+0,5.3a.i DS •GRUf-'-aacpeu-se - .. - •, ISCACittP«ji94fRIZ 162.x924 41" . _
:'0'6 Y 7/2920.2 21339J[ JF 7153 .0 Bead DROP ex- Jul '02 3 492.38 188 489.29 _._._.__
t<• _ n .,t s n g ec 4 i ` exp u rg r' 71.42 166;740.89 •
, r r • 0715.8 .Y9
42042 ; , t • 266x4 U ,4r„�•,:
82D'•3 1 203372j JF JE 7153 du Recd DROP en: Julu '02 3' 173 3
358.33 19.76
•,::..203375.,, • .Jt... JE. 7150:>ig -Rea DROP. exp -Jolt; "02
261.64 - ' 174,081.40. ., ,
•
.: 6'm07a, .. .�ss.x5.,c..-.-.Tlc_....—tc–Tt tti,,.*-----Prn, 1 MP,-nrir^.#I1.a.. ft _...:...:.. ..._.`7--395•.,44-.. .,.._.,...,.�...._.,.,:.•-1'76.477:74_ _,_ ,..r.. -i --r._ ,__
1
VI
N
m N
N N
•
• • • • • • • • • •e• • • • • • • • v • •
i
• Ci=
,
I••
#C,In if -I 'Cr
di cr
d,
m wab
n'••.
1:4a u .-1
.r.
i.J La
swr_
4 CLy
I. r i-
• • • • •
• • •a• • • • • • • • a • •
1 O N ID h CO O r N Cl) O N CO
r N m N N Cr N N
N N
-N
l'OJ
0
Cl
Pi ('NJ (nil
51
(tel d C O 4 V Q<
O V d N N N W N N N
CII
N
{
•
�f}m
t
- 1
-..
-3U blTLbt +33 _. 06 Li
r
I}I2
•.:
It 911 iii 00 u0 _uu uu uu uu --••• -' ""
a
}
1
la
1
r�Jjj
C
lT
L5350."48 -- 39'1 15298;..61
t£276:5$. :;751'C 712381106f.
13346--93 51X -----1:74647W;
119117'5; 922 4111411R 21
4
CSO
b
1-•••
lin
■:.
N
L,I tl.
77 17 1177... , 7442fl
05.52- 126% -°'10411
n
.0 ,
4
P
.r
Vo
r
CoP
m W:,
•
CeY'M
{y
.-
-
Da.'
D
1..
II
(
..
{i[(
`C
.
4
c
r{
:•ya. b.
-
m.\.
Tri
,.d, ry
.,.1C
G .3J
-.
N
405 .0-5
41
0 II
II.
. Ilz,
I'
I
IIn
II g
C.
� ..
:C
d+
aver
C
r
y7.
G
CIN
-
y,
E(
bC.l'
G
�'n'
'W
IL
IIAm
S
b.
CD
,ild
N�{�yy.
1r
�+1
is,r
O.
r
1�
0.
_
*ion
jC
S
C•.
Y
e
.�.
.,
'�^. vett-
a
I t41I
11
iii
.4.6»
M
r
r
.r,
..
r' ..0C
n CV rJ
C
Gfv
A:
G
'
-
'•r
-
Ch
.•41 i+l.
•.O
s,
RC
4
II
•
1.1
.-
L•1/ 11
r.
-aav
C:
C
Ni
Y ,
> ✓, r..
.. 4
jj
3> {v
4
MO..
•• bb
twf+ri„•
i1
irµII
•
IT
h
r
r.b
4
M
L
a
Lw
.
xI•o
n
C
C
n
jj
..
e
.
CD CD
c
Giww
11
-c�i
:o
is
+`e .
c
awr
4a
Com'-
•a
4d
cl‘
ries
-'r.
._
a
C
9•• o
C
CI
M.
_
....
_
Q
r 4
F-
r
jj
4:4
Q
C
11
0
CI
1.h5
,r
1
i
1
a
1
1
i
4.
q,
1
:3I
ft,
]C
G
• C
e
UY
O
"p[
I1
1L^'
.r
x
Ir,
41
11
a
a-
c
Co
c
PI
I-
I
M
r[y
r
1
x
1.0
I
a
!w
- /1
C
M
.I.
•
✓,
J
w
r
1.
uc
AliC.
ca
r.
yo
0
O
C
M
It
N
. 4
&C
-
W
O•
>
44
1Y
Y
ti.
1.
1
4
.4
M
of
cc
C
N
a
..
V•
V
J.
U. V
b
J.
i
.
LU..
IS
L'1
'•
w•
1
N
-a
1 In
1 .
, •
N-
J
c
r+
M
i'-
• 1
< F.�uF r a,
I
a
A C
s
A.
h
Y
•
:
H
0Pr40
12
4,
f3:
IP
a
ala
t"W
CA
4
`t'
4yJ
_g
J
1...
...
r7.
la.
- •1:
C
CY
!
r
aa
r.
•+•
4
••
C1
aftftui
4
1
1'
i
a
I
Y
ci
1'
Qw
r
M
wa.�
¢'>
.
:
!
C
CCI
WaA
C7
4b
`v
d... ^1
-m
V G
I
i I�
N
_
i
Gb
[fG
a
V"
10
fi
h•
M
u
to
m
aT
v.
Li�l
b
m
_ .Y
c
1...
r
ft.I'
1•r-
IC,
L(
w
r•1
'STt•
v:ra
v•Y
r
11
y_
r
N CI
O
N
(O
1.
0
T
'
O
r-
N
t7
O
N
.O h
(O O) O N N
N N N N N
N N co trl M 2 A N 51 M CJ' Cm3 O<<<<
P•••r?
V N N
N N- N N
2 N
• • • • • • • • • •• • • • • • • • • • • •
• • 0 • • • • • • • •0• • • • • • • •
• •
S
0
• • • • • • • • • ••• • • • • • • • • • •
RECEIVED
Merrill Lynch SEP 18 2002
PC BOX 11000 801102
NEW BRUNSWICK, NJ 0001Jd000 A ^(, DEPT.
N***N*****N*AUTO** 3 -DIGIT 727 2622
FAYETTEVILLE FIRE DEPT PENSION
8 RELIEF FUND
113 N MOUNTAIN ST
ATTN ACCOUNTING DEPT
FAYETTEVILLE AR 72701 6069
Il u�u�I��n IIII IIIIIulluulIIII IIuull'u llll u'II
ENROLLMENT As F 1934 7716 8146
341-0899
WE HAVE BEEN REQUESTED TO FORWARD
THE ENCLOSED INFORMATION
REGARDING YOUR INVESTMENT IN
CITIGROUP INC.
WHICH IS HELD IN YOUR ACCOUNT
991402)
991402
TO RECEIVE SHAREHOLDER COMMUNICATIONS
INCLUDING PROXY MATERIAL VIA THE INTERNET,
SIMPLY GO TO www.lnvestordelivery.com
AND FOLLOW THE INSTRUCTIONS UTILIZING THE
ENROLLMENT NUMBER PRINTED ABOVE. IF/WHEN
INFORMATION ON COMPANIES HELD IN YOUR
ACCOUNT IS AVAILABLE ELECTRONICALLY, YOU
WILL BE SENT AN E-MAIL NOTIFICATION.
•
A/C L9927 56305G88 00
Sabo
crtigrour
RECEIVED
SEP 19 2002
CITY OF FAYETfEVILLE
CITY CLERK'S OFFICE
U.S. FEDERAL INCOME TAX INFORMATION
Citigroup Inc. ("Citigroup") has received a private letter ruling from the U.S. Internal Revenue Service
stating that Citigroup's distribution of Travelers Property Casualty Corp. ("TPC") class A common stock and
class B common stock to its common stockholders will be tax-free to Citigroup and to holders of Citigroup
common stock for U.S. federal income tax purposes. A summary of certain U.S. federal income tax
consequences of the distribution is set forth in the Information Statement that was mailed to holders of our
common stock. The following information is provided to assist you in determining your tax basis in your
Citigroup common stock and your TPC class A and class B common stock for U.S. federal income tax
purposes as a result of the distribution, but is not intended to be tax advice. We have also enclosed a statement
which should be signed and attached to your 2002 U.S. federal income tax return.
We suggest that you retain this information for use in connection with the preparation of your
U.S. federal income tax return and consult your tax advisor regarding the calculation of the basis in your
Citigroup common stock, TPC class A common stock and TPC class B common stock under U.S. federal,
state, local and foreign tax laws.
Sax
Information Regarding Allocation of Tax Basis
The U.S. federal income tax law generally requires you to apportion some of your cost basis in your
Citigroup common stock to the TPC class A common stock and TPC class B common stock you received in
the distribution. This allocation is based on the relative fair market values immediately after the distribution of
your Citigroup common stock and the TPC class A common stock and TPC class B common stock that you
received in the distribution. U.S. federal income tax law does not specifically identify how you should
determine the fair market value of your Citigroup common stock and the TPC class A common stock and
TPC class B common stock you received in the distribution. We believe that an appropriate measure of fair
market value is the average of the highest and lowest trading prices on August 21, 2002 (the first trading day
after the distribution). You should consult your tax advisor to determine if another measure of fair market
value is more appropriate.
Once you have determined the fair market values of your Citigroup common stock and the TPC class A
common stock and TPC class B common stock you received, you should allocate your cost basis in the shares
of your Ctfigrotip common stock among younhares of Citigroup common stock -and TPC class-A'and-class-B
common stock in proportion to their fair market values. A determination will be required with respect to each
block of Citigroup stock owned.
You and your tax advisor may find the information in the following table useful for purposes of allocating
the tax basis in your Citigroup common stock among the TPC class A common stock and TPC class B
common stock you received in the distribution and your Citigroup common stock. The trading prices for the
Citigroup common stock, TPC class A common stock and TPC class B common stock reflected in the table
below are based on the high and low trading prices for such shares on the New York Stock Exchange on
August 21, 2002.
High -Low Allocation of Basis
Stock High Low Average Price Percentage
•Citigroup common stock $34.51 $33.01 $33.76 93.63%
TPC class A common stock 17.14 15.90 16.52 1.98
TPC class B common stock 18.60 17.10 17.85 4.39
Example: Allocation of Cost Basis
•
Assume that Shareholder owns 100 shares of Citigroup common stock that he previously acquired for $30
per share, for a total tax basis of $3,000. Shareholder received 4 shares of TPC class A common stock and
8 shares of TPC class B common stock in the distribution. Shareholder also received cash of (1) $5.44 in lieu
of 0.320 fractional share of TPC class A common stock (assuming fractional shares of class A common stock
are sold at an average price of $17/share) and (2) $15.79 in lieu of 0.877 fractional share of TPC class 13
common stock (assuming fractional shares of class 13 common stock are sold at an average price of
$18/share).
Based on the average high and low trading prices of Citigroup common stock, TPC class A common
stock and TPC class B common stock on August 21, 2002 (the first trading day following the distribution), as
well as the basis allocation percentages reflected in the chart above, Shareholder's tax basis in his Citigroup
($3,000) common stock is allocated among his Citigroup common stock, TPC class A common stock
(including fractional shares) and TPC class B common stock (including fractional shares) as follows:
Citigroup TPC Class A TPC Class B
Common Stock Common Stock Common Stock
High/Low Average (A) $ 33.76 $ 16.52 $ 17.85
Shares Retained/Received (8) 100 4.320 8.877
Total Value of Shares (A) X (B) $3,376.00 $ 71.37 $ 158.45
Allocation of Tax Basis % 93.63% 1.98% 4.39%
Allocation of $3,000 Tax Basis $2,808.90 $ 59.40 $ 131.70
The portion of Shareholder's tax basis allocable to the 0.320 fractional share of TPC class A common
stock is 0.320/4.320 X $59.40 = $4.40. Shareholder will recognize gain with respect to cash received in lieu of
the fractional share of TPC class A common stock of $1.04 ($5.44-$4.40).
The portion of Shareholder's tax basis allocable to the 0.877 fractional share of TPC class B common
stock is 0.877/8.877 X $131.70 = $13.01. Shareholder will recognize gain with respect to the cash received in
lieu of the fractional share of TPC class B common stock of $2.78 ($15.79 - $13.01).
2
•
•
•
•
STATEMENT OF SHAREHOLDERS RECEIVING A DISTRIBUTION OF STOCK IN
TRAVELERS PROPERTY CASUALTY CORP ("TPC"), A CONTROLLED CORPORATION,
PURSUANT TO TREASURY REGULATIONS SECTION 1.355-5(b).
By private letter ruling, the Internal Revenue Service ruled that the distribution by Citigroup Inc.
("Citigroup") of shares of TPC class A and class B common stock was a nontaxable corporate separation
under Section 355 of the Internal Revenue Code.
INSTRUCTIONS: Read, complete parts 1, 2 and 4, sign and attach to your 2002 U.S. federal income tax
return. This form should not be sent to Citigroup or TPC.
Part 1: Statement of ownership
was a shareholder owning shares of common stock of Citigroup of the class traded on
Stock Exchange under the symbol "C", that received a distribution of stock in TPC, a
corporation, pursuant to Section 355.
• The undersigned
the New York
controlled
`Part-2:—Shares-of-common-stock-received- -- -- •– --- ----
---- ----
The undersigned received a total
TPC class B common stock in the
of shares of TPC class A common stock and
shares of
distribution.
Part 3: The names and addresses of the corporations
involved
Distributing Corporation: Controlled Corporation:
Citigroup Inc. Travelers Property Casualty Corp.
399 Park Avenue One Tower Square
New York, New York 10043 Hartford, CT 06183
Part 4: Shareholder Signature and Taxpayer
ID
Name
Signature
Taxpayer
ID or Social
Security
Number