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HomeMy WebLinkAbout2003-05-29 - Agendas - Final• • Firemen's Pension And Relief Fund Agenda May 29, 2003 A meeting of the Fayetteville Firemen's Pension and Relief Fund will be held at 11:00 a.m. on May 29, 2003 in Room 326 of the City Administration Building. Report from Attorneys Chuck Stntte and Mark L. Martin " 1. Approval of the minutes: • April 24, 2003 • March 27, 2003 Revised 2. Approval of the pension list: • June, 2003 Pension List 3. Investment Report: • Longer Investments 4. Old Business: • Election of officers • Kelly Skelton Schooling • Burl Skelton Death Certificate • Parking Permits for Board Members • Authonzed signature form - Longer Investments 5. New Business: • NCPERS membership • Special Meeting on June 24th at 1:30 PM with Lopfi Representative Catherine Hmshaw, Room 326 City Administration Building. MINUTES OF A MEETING OF THE FIRE PENSION BOARD OF TRUSTEES APRIL 24, 2003 Fire Pension Minutes April 24,2003 Page l of l0 A meeting of the Fayetteville Fire Pension Board was held on Apnl 24, 2003 at 11:00 a m in Room 326 of the City Administration Building located at 113 West Mountain Street, Fayetteville, Arkansas. PRESENT: Doss, Reagan, Farrar, Johnson, Wood, Treasurer Sondra Smith, City Attorney Kit Williams, Longer Investments, Attorneys Chuck Stutte and Mark L. Martin. Mayor Dan Coody was absent. Marion Doss calls the meeting to order Approval of the minutes: March 27, 2003 Sondra Smith said she emailed the minutes to the Board. She asked the Board if they had received them. She said she emailed them the same day that as the March meetmg. The Board said they did receive them. There was a discussion on if Lucille Morton Day was a widow of a .Fireman or a Policeman. The Board said she was the widow of a Policeman. Pete Reagan asked if that was all the changes to the minutes. The Board said yes: Pete Reagan moved to approve the minutes as amended Ronnie Wood seconded The motion passed unanimously. Approval of the pension lists. Marion Doss asked, on the pension list it said Teddy O'Neil was added to the April pension list should that not be added to the DROP list. Sondra Smith answered yes. Marion Doss said next we have the pension list for May 2003. Do we have any changes? Sondra Smith said yes. Manon Doss said Larry Freedle has been removed from the Drop List and added to the May Pension List. Sondra Smith answered yes. • Fire Pension Minutes April 24, 2003 Paget of 10 Marion Doss said he retired effective May 1st, 2003. Sondra Smith said Burl Skelton deceased. .I haven't received a death certificate or anything yet but I went ahead and told accounting so they would not send a check out for May. Marion Doss asked is his daughter well aware of that because his son-in-law is a retired fireman also. • Sondra Smith said yes, she called because of receiving the Apnl check and wanted to make sure that it was okay if she cashed it. I said yes because he deceased in the month of April. So she's aware that the checks will stop on Mr. Skelton. Pete Reagan moved to approve the pension list Robert Johnson seconded. The motion carried unanimously. Investment Report: Longer Investments Kim with Longer Investments said Elame was not here today because she is in San Antonio at an investment conference sponsored by Northern Trust. Tina and I will be delivering your report today. 1g page of report is Portfolio Appraisal as of March 31g. We're showing you this because that's the end of the quarter and wanted you to see where you were then. Your equities as of that time, that's your mutual funds plus your common stocks were at 26.2%, that's at the low end of the asset allocation range in your investment policy which 25 to 50%, along with being at the low end on stocks there are also a few positions that we had partially hedged and those are listed on the second page under the calls. What we've done we had hedged those positions going into the war, keep you on the • light side of your equities and since the war started we've seen what the market's done. We've worked you out of those calls by either letting the stock get called or buying back the calls. I'm kind of going to skip over this March report and go to the next report which is the report as of the end of last week, dust to show you the changes that we've made since then and that's listed on page 8, is where that report starts and that's as of April 17t°. As you can see now your equities are at about 32 9% up from that 26% at the end of March. The reason that we've started to increase the equities a little bit is once the war began, we saw 1,000 point increase in the DOW. It was a very emotional rally which was followed by a 55% pull back. We lost about 550 of those 1,000 points after the war started and at that point things just kind of rested, we've waited for earnings to come out which started about the middle of this month. The first report that came out was on Alcola which is a cyclical company and they reported very good earnings considering we're kind of in a trough in the economy. The stock was up 10% and people started to a • • • Fre Pension Minutes - - April 24, 2003 - Page 3 of 10 thinking; well it's not as bad as it could be, and after that other companies like General Electric, some of the financials, of which you own Citigroup, technology stocks like Intel, IBM, and Microsoft, they all have come out with very good earnings. So far in this • first quarter earnings season we've seen about 60% of the companies report .and it looks like earnings are going to be up about 12%. Once we saw this and saw that we're seeing a little bit of growth, it looks more like the rally we've seen since the first of April is more rally based on fundamentals as apposed to the emotional rally that we saw earlier, and that's where we come in. With earnings looking better we decided to increase equity exposure a little bit and we've done that by buying some individual equities for you. We also sold those Standard & Poore's Depository Receipts which we said was a kind of proxy for stocks without buying the individual ones; we've sold those at $89. The market pulled back a little bit and we bought them back at $86. So we're still using them as a plug but we have reduced those a little bit since the first of April. We can take those off and also the S&P midcap depository receipts which is another proxy for the market. We can take those out without disturbing your equities at all. That's just kind of an update on why we've increased equities by usmg little bit more buying in mdividual stocks. • The last part of that page, it lists your Real Estate Investment Trust. Right now those are about 4 1/2% of your portfolio. They have a yield of 6.7%, which is a great yield plus being equity, you're getting some growth m it too; it's not just a straight fixed income investment. The next page lists your preferred stocks, preferred debt securities goes into the corporate bonds that you own, and that follows through on the next couple pages. Your corporate bond plus preferred stocks are about 16 7% of your total portfolio. I'm on page 11. Your government bonds are 6% of the portfolio, and then the rest of it is in the Government Agencies which Government Agencies plus your Jeannie Mae which is a mortgage type bond, those are 27% of your portfolio. Your cash and CD's are about 12%. Your total market value as of April 17 was $9.5 million and the over all income yield on the portfolio, that's just the income that you earn on it, is 3.6%. That compares to a five treasury which is yielding 2.85%. So you've got over 30% in growth and you're still earning more than you could earn in a five year treasury. On Page 15. It lists your largest equity holdings, General: Dynamics, Pfiser, Chevron, Texaco, Microsoft, and Emerson Electric All of those are between 1.1% and 1.5% of your total portfolio which is well below your policy restriction of 2.5%, so we're keeping you very diversified. Page 16 through 19 is a report that lists just your fixed income holdings. It shows.how much you own in each one, what the S&P and Moody's ratings are on. them and any call features. Right now everything that's in the portfolio is investment grade bonds. We've got about a million dollars worth of very short tern government agencies that we're targeting to reinvest once we have a better buying opportunity. We're keeping those Fire Pension Minutes .. April 24, 2003 Page of 10 invested in the agencies because we're getting a higher interest rate than what you get on your cash which is only about .8%. So we'll use up all your cash first before we hquidate these agencies. As we see these stocks start to recovering we'll probably see bonds go down as interest rates go up a little bit and we think we'll have a better buying opportunity later in the bond side of the market for in the bond side of the portfolio If I'm going to fast on any of these, or if you have any question feel free to stop me. Let's go to page 20 now, that's just a summary of your income and realized gains year-to-date. Your realized losses are about $29,000. Your net income, that's just the income generated on the portfolio through March 31, has been $64,000. We usually try to even that up before the end of the year but this is just where you stood at the end of the quarter. The next page shows your yield on your fixed income securities and on your total portfolio, that 3.6% on total portfolio we've talked about, just your bonds alone are earning 4.9%, which is again compared that five year at 2.85 at ten at 3.95. So your bonds, your weighted average maturity is 8.8 years. But you have a much higher yield than what we can get right now m a ten year treasury. Page 22 is just the distributions that have come out of the account since the inception of the account Page 23 is the performance summary and through March 31st your total account was down 2.6%. That was equities down about 10 1/2%, and then your bonds offset that being up 5.5%. Your equity performance was lower than the market overall, but that was while we were in a period of restructuring the portfolio getting rid of some of the things that we didn't feel should be kept m there buying new stock. We think that starting with this year you'll see more of a better performance relative to themarket because we'll have the opportunity to have the stocks in there that we want in there. Just to give you an update through Apnl 22"d, your account is up 3 2% since inception with your stocks up 7.8%, so three weeks have made a big difference and year to date your account is up 2.9% and your stocks are up about 1%. Stocks this month only are up 9%, so things change quickly. The next report, that's called the Model Portfolio Report. That shows where your stocks lay in relation to the economic sectors and industries of the S&P 500, about the middle of the page where it says total capital goods, you can see your capital goods are overweighted to the market, you are at about 13% and the market is about 7%. And then on the next page on the non cyclicals, consumers stocks were under weighted on that and that's just because we think we're on the cusp of cyclical economic recovery. So we're over weighted m the cyclical stocks and a little bit underweighted in the consumer noncyclically stocks. Page 26 under the energy portion of it, your still overweighted in energy but we are moving more to a neutral weighting in energy, using that as a source of funds as we buy into other stock. Financial, we're underweighted compared to the market, the market is .) • Fire Pension Minutes .. April 24, 2003 Page 5ofl0 at about 21%, and we are at 8%. We think there is still a lot of credit risk out there for banks, so' we're staying underweighted there. Banks that do own, Citigroup, Sun Trust and MB&A, we think those are just the highest quality in the sector and that's why you're in those. Pharmaceuticals. You're at about an equal rating to the market and the same with technology. We've moved to that neutral rating but we've had some good earnings, like I said before in DOW, Intel, Microsoft, IBM, we're just waiting to see another card turned up before we commit more into the market, we've seen the NASDAQ out perform the DOW this month but we just need to see one more card turned up. Page 29. That just shows you our calculations on how we arrived at your weighted average, S&P rating for equities that you own, so that we're sure we're staying in compliance with your investment policy and nght now you're at about A- weighted average equity ratmg. And then we've put a copy of your investment policy in there Just to always keep that in front of you. We use this as our game plan and we just want you to make sure that it still adequately reflects what you want us to do. The main point that Elaine wantedme to share with you is that we're in a period right now where we think that stocks can out perform bonds, but that might only be for a quarter or two that we think that way. There are still a lot of things that need to go on in the market; there are some long teen macro- economic factors like the huge consumer debt. There's an over leverage federal government, state govemment, and local government, and also corporations are over leverage so we need to see a lot of repair m government and personnel balance sheets before we think the market can move forward. It will provide a strong head wind for better market once all of the repair is through. Pete Reagan asked do you think that will happen within the next two or three quarters or do you think that your election cycle coming around a year from November will affect that. Kim with Longer Investments said what Elaine feels is that even though we're seeing some good things in the market right now it's not going to last, or she doesn't think it can last because there are so many other things that are going on in the market, and things like the elections will probably affect that. How Bush's economic package is taken and how much of it is passed how much isn't, there's a lot of things like that thatwill affect the market. Pete Reagan: I have a question on page 17, on our Enron Bonds, are these the ones we tried to se11 and couldn't. - Kim: Yes. Fin Pension Minutes April 24, 2003 Page 6of0 Reagan: I saw a deal on CNBC the other day that they are changing their name and trying to restructure, what's your position on this, are we going to hold on to these and see what happens? Kim: If we can get bids on them we'll try to sell them. We've been checking, Tina handles our bond trading and she can't find a bond trader anywhere who wants to touch them. When we have an opportunity, if we can get something for them for you we will. Reagan: We've already written those off. Kim: They are wntten down to zero so all the performance numbers they have that factored in. Doss: Great job. Reagan: Keep up the good work Kim: We will try. Thank you very much and Elaine should be here for the next quarterly meeting. How is it going with the reports that we're sendmg on the two months interim. Is that working out? Reagan. It's working. Kim: I do have one other question for you. This is something that the Accounting Deparhnent had asked me about, initially when you set up youraccount we had put Heather and Marion down as the people that are authorized to do the withdrawals, and with Heather the Accounting Department tries to run Marion down to sign those authorizations, I didn't know if you wanted to have someone else or put Sondra on there. Marion Doss: We probably ought to put Sondra on there. Pete Reagan: Sondra. Kit Williams: Why don't you just make a formal motion to that effect? Pete Reagan: Moved to give Sondra signature authority. Danny Farrar seconded. Motion carried unanimously. Kim: The wire transfers that they do, from their account to it, goes directly from the fire pension account that we manage directly to a checking account m the name of the firemen's pension. So it's not authorizing funds to be paid out to someone else. It just goes directly to your checking account to pay your checks. Marion Doss: I think we just forgot about that when Heather Left. Kim: Thank you very much. •) •,) Fire Pension Minutes :-April 24, 2003 Page 7 of 10 Pete Reagan: Thank you. Appreciate your time. Kim: We appreciate you too. Sondra Smith: Do you want to go ahead and let the attorneys talk? Kit Williams: I didn't see them on the agenda. Sondra Smith: I didn't know they were going to be herd. Stutte: We're not on the agenda. I think that at the last meeting it was left that we continue to do whatever it is until you all wanted a report and called us in. What we wanted to do because we're a part of the process that we hurry up to get something to do rather than wait, that I thought we would at least keep them apprised which level we were at in the hurrying up process. We're really in the final stages of lining up the ducks,. we're still herding a few of them but we're kind of doing our due diligent before we finally pull the trigger on the type of claun that we are going to do. I think I indicated at our last meeting that our. preference from all indication was that we would file probably arbitration proceedings. There is . a service that's called a security arbitration commentator, it's a recording service that will give you all the awards that are being done in security industry under arbitration, land of like a case reporter on jury verdicts. I didn't know this until doing some research that there is a wealth of information on reported arbitration decisions. Also you can look up each of the individual arbitrators when it comes time to having to handle an arbitratorthey will give us a list. We can strike people or pick one that we would agree to. Reagan: That's collective bargaining, isn't it? Stutte: Mostly we're sitting up so that we're going to be prepared to have that research on tap and ready to go if we do the arbitration of it. The second thing that we're doing is, in a lot of cases and news on various claims whether the brokers, Merrill Lynch on wolves on lawsuits. Time Magazine and ATLA, the association of trial lawyers for plaintiffs. We also have access to lawsuits that have been filed by the plaintiff's lawyers on similar type cases and we're running that search through them to see which actions have beentaken, so that we're not overlooking anything that is obvious. A lot of this is just us doing some due diligence to make sure that we are not overlooking a cause of action or an avenue that we would like better than what I think the arbitration is We've already retained a guy on board, an expert consultant out of Bank of America, Hazards Securities Division in Chicago to review the case for us. We've got a law clerk assigned on doing all the case law in various areas, and we're about to hire an intem to do nothing but assimilate the information. I would expect that prior to the next meeting we want to be able to have a statement of claim in arbitration commission form ready to go. That's kind of where I'm coming from in terms of preparation, and the only thing would keep me from making that recommendation is this, in this research that we are doing on other avenues if some thing comes to change our mind, I might suggest that we have a look at Fire Pension Minutes April 24, 2003 Page 8 of 10 some other avenue. We're looking to have a claim ready for submission and approval to you to decide this is okay, this is what we want to do and why. So I think we're getting close. Kit Williams: Does anybody have any questions for him? Pete Reagan: I feel good about it. Marion Doss: I think we appreciate you coming and just letting us know what's going on. I know I feel better just knowing where it's at. We'll probably have someone asking us, some of our members. Stutte: I think at this stage it's important because we're going to be making and having to make some real decision strategically. I want you to know our thought process as we are gathering the information, so that when we finally presume to court you know where we're at and where we're coming -from m terms of final recommendations to you so that you can make some kind of an informed decision. I think you ought to look proceeding in a federal court, possibly to a jury trial. Let's hash it out and make informed decisions to go all along the way. After a case gets submitted I think we're going to hit doldrums whether it's a civil lawsuit or whether its arbitration. We get it submitted and we're going to be waiting for them to do a response It will at least be 30 days by the time we get something, then there will be some discovery process. There will be a lot not happening or not to report on other than you will wait to get somewhere on the case. Until we are in the middle of doldrums I think you all deserve to know where we are at and what we're thinking and we certainly do not mind commg. Pete Reagan: Do you plan on being at the next meeting? Stutte: Yes. Pete Reagan: Sondra if you can, can we get them on the first item on the agenda? Kit Williams: They're old business. Sondra Smith: Yes. Stutte: That's all we have. Thank you very much. Pete Reagan: Appreciate it. Stutte: Do you know the date of your next meeting? Pete Reagan: The last Thursday of the month it will be May the 29th at 11:00 AM. • Fire Pension Minutes April 24,2003 - Page 9of10 Old Business: Election of officers: Sondra Smith said all the letters for selection of Board members that were nominated to fill the expiring terms have been mailed. The Drop Pension list was sent to the Fire Station for distribution. There was a discussion about some of the Drop retirees not receiving their letter. Pete Reagan said Sondra and I have talked about this and when we do this for Drop participations we will get their home addresses and mail them to their home address. Pete Reagan said Sondra brought up a point, in the State Statues it says the election of board members shall be held in May. I think what we shoulddo is send out one more letter and tell the Pensioners that the ballots are due by May 28th and that way we can have them for our May 29th meeting. Sondra Smith said that would be fine. She said she could also point out if we send out new letters that they need to select three nominees. Kit Williams said why don't we say May 15th so that we don't receive some after the May 29th meeting. A discussion followed on the date that the form should be received by the City Clerk, it was decided that they should be postmarked by May 15th and that all previous forms that were received should be destroyed. Pete Regan said to tell those that have already voted that there was a misunderstanding and those ballots have been destroyed and please send another one. Sondra Smith said we have the term end dates as April 30th, to me it does not make sense to have the term end dates of April 30th when the State Status says the elections shall be in May. I would suggest the terms end May 31s1 and the newly elected Board members start on June I There was a discussion on the term end dates. Pete Reagan moved to change the term end date to May 31''* Ronnie Wood seconded Motion carried unanimously. New Business: Burl Skelton (Deceased): Already discussed. Fire Pension Minute; April 24, 2003 Page 10 of 10 Kelly Skelton Schooling: Sondra Smith said Kelly Skelton has asked if she attends a massage therapy school if she will still be able to draw her portion of her dad's retirement check. State Statues says they have to be enrolled m a school of higher education. I.spoke with Kit about this and to us that means a college,, junior college, community college. Marion Doss said I think we have to go with what the State Statues says, if we don't I think we could be in trouble. That's not anything against Kelly or anyone else. Sondra Smith said we have not received from Kelly her form showing that she is enrolled; we received her form showing that she is pre -registered, but it does not say she has enrolled. I spoke to her and told her that we needed the form showing that she is enrolled I received a phone call from Kelly's mother saymg that they could not provide the registration form until they paid the rest of the tuition. Pete Reagan moved that the City Clerk contact the NW Arkansas Community College and inquire if Kek, is enrolled there and also send a letter to Kelly asking for proof of registration. If she is not enrolled in a school of higher education the City Clerk will notr; fy her that her benefit will cease. Danny Farrar seconded. The motion passed unanimously. A discussion followed on whether the school would give us that information or not. Marion Doss said is Kelly over the age of 18 and if so we can send her a letter. directly instead of dealing with her mother. Robert Johnson moved to deny Kelly Skelton's request to attend the White River School of Massage. Danny Farrar seconded The motion carried unanimously. Pete Reagan asked the City Clerk to notify Kelly Skelton that according to the attomey of the fire pension board and the members of the board that we have concluded that a school of massage is not a school of higher education. Larry Freedle from DROP to retired: Approved when pension list was approved. Budget Reports: A copy of the budget reports was provided to the board. Pete Regan said the parking permits are up and need to be renewed. Sondra Smith said she will let them know who is on the board and that they need parking permits. , Meeting adjourned 12:05 PM. fib • Fireman's Pension and Relief Fund Board Meeting March 27, 2003 Page I of 4 Revised Minutes Of A Meeting Of The Fireman's Pension And Relief Fund Board March 27, 2003 A meeting. of the Fayetteville Fireman's Pension and Relief Fund Board was held on March 27, 2003 at 11:00 am in Room 326 of the City Administration Building located at 113 West Mountain Street, Fayetteville, Arkansas. Present: Mayor Coody, Ronnie Wood, Pete Reagan, Danny Farrar, Robert Johnson, Sondra Smith, and Kit Williams Absent: Manon Doss Mayor Coody presided over the meeting. Mayor Coody called the meeting to order. Minutes: Mr. Reagan moved to approve the February 27, 2003 minutes. Mr. Farrar seconded Motion carried unanimously. Pension List: The pension list was reviewed for the month of April 2003. Mr. Reagan asked if there were any new ones on the pension list. Ms. Smith said Teddy O'Neal has been added to the April Drop List. Mr. Farrar moved to approve the Pension List. Mr. Reagan seconded Motion carried unanimously. Investment Report: Mr. Williams said Longer Investments would not be here every month. Ms. Smith said there is a copy of the report for the Board to review. She asked if they would like to review it before the meeting continued. The report was reviewed. Mayor Coody asked if there were any comments on the mvestment report. Mr. Reagan said no comments except it has been reviewed and we are in the positive: Mr. Reagan moved to approve the Investment Report. Mr. Wood seconded. Motion carried unanimously. • Fireman's Pension and Relief Fund Board Meeting March 27, 2003 Page 2 of 4 Old Business: Resolution 03-01: Mayor Coody asked what this Resolution was for. Ms. Smith said this Resolution was to hire the attorney's for the lawsuit against Merrill Lynch. This is the signed copy for the Board to have for their records Return check — Wilkie Morris Mayor Coody asked what this was. Ms. Smith said there was a comment at the last meeting as to if benefits were paid to Ms. Monis in February because she deceased in January. We did pay her benefits for February; this is a copy of the check being returned for the February benefits. New Business: Nomination Form: Mayor asked are you guys wanting to nominate some people for something? Mr. Reagan said no we just changed the form. Ms. Smith said you need to review the form and make sure it is okay as revised. We need to get them m the mail and returned to us by April 15, 2003 so we can get the nominations m and then send out ballots for selection. Ms. Smith asked if the current Board members are willing to serve again. They replied yes. Mr. Reagan asked if it would be proper to put on the form that all current Board members are willing to serve another term. Ms. Smith said she wanted to ask the Board if they were willing to serve another term before she put that on the form. She will revise the form before it is mailed. Mr. Williams said you do not want to make it look like they do not have a choice. Ms Smith said she does not give them any names to select from on the form, she just lets them know who is currently serving, when the terms expire, and that the current members I y Fireman's Pension and Relief Fund Board Meeting March 27, 2003 Page 3 of 4 are willing to serve again. She also stated she put a tear off area on the bottom of the form for folks to nominate whoever they choose and return it. She said this has not been done in the past and wanted to know if the Board thought having the tear off sheet would be okay. They could either send the entire form back or tear off the bottom and send it back. Mr. Reagan asked does the nomination have to be done in venting? Ms. Smith said yes. She said after the nominations have been received we will send a list of the nominated folks back to the pensioners for them to make their selection from the nominees, this is what she understands. She asked is this correct? The Board said yes. Mr. Reagan said that the form looks good. Ms. Smith said if they would like to take the form home and look at it that would be okay, but she would like to get the letters out no later than Monday, March 31, 2003. Mr. Reagan said if you add that all current Board members are willing to serve another term then the form can be sent out. Lucile Morton Day — Death Certificate: Mr. Reagan said this is just for our records. Mayor Coody asked if there is any action on this item Mr. Reagan said no. Other Business: Mayor Coody asked if there was any other business that anyone needs to bring up. Mr. Reagan said have we got dates set for elections, are the nominating forms going out with the checks. Ms. Smith said they will not go out with the checks; they will be mailed out separately. Ms. Smith said because of somechecks that may be direct deposited in the future, mailings of this nature will be sent separately. Mr. Reagan said okay. Ms. Smith said she will get the nomination form in the mail no later than Monday, March 31, 2003 with a return date to the City Clerk's office no later than April 15, 2003. We b • Fireman's Pension and Relief Fund Board Meeting March 27, 2003 Page 4 of 4 will then have to send back to the pensioners the nominations for them to make their selection from the nominees. Mr. Reagan asked by what date will we ask them to return their selection. Ms. Smith said she will give them until Mayl, 2003. The terms end April 30. Mr. Reagan asked when is our next meeting. Ms. Smith said the last Thursday in April. She did not have her calendar, around April 26. Mr. Reagan said April 24, 2003 is our next meetmg. Ms. Smith asked do you want them back by April 24th? She said she thought that was cutting it too close Mr. Reagan said that's only eight days, so May 1, 2003 will be fine. Ms. Smith she will let everyone know who was selected. She will send an email out on May 1, 2003 to the Board on the selections. Mr. Reagan said we need to align them for the 2004 and 2005 and make sure they vote on all the terms open. Ms. Smith said in the nomination letter she has stated the term end dates and who is filling those positions at the present time. Mr. Reagan asked Mr. Williams, Danny is the only current one on active, so if he does not vote for himself what do we do. Mr. Williams said I think you are already elected by acclamation. It is just like Marion and the Mayor; I don't think you have a choice and the Clerk. There are certain people that must serve. Mayor Coody asked is there anything else? Meeting Adjourned at 11:15 AM. FIREMEN'S RELIEF AND PENSION June 2003 THE FOLLOWING ARE THE OBLIGATIONS OF THE FIREMEN'S RELIEF FUND FOR THE 114 OF JUNE 2003. YOU ARE HEREBY INSTRUCTED TO ISSUE CHECKS TO THE ES, IN THE AMOUNTS SHOWN, AND FOR THE PURPOSE SO STATED. DATE OF REGULAR Year To Date MO BENEFIT REG BENEFIT FED. TAX ST. TAX NET EMP#RETIREMENT NAME • 79 11/99 74 3/86 2 3/75 63 5/72 68 7/99 44 9/86 45 9/86 49 7/88 4 6/67 5 5/72 57 5/90 6 4/68 84 03/01 85 03/01 8 10/76 61 6/66 78 11/99 11 2/76 38 5/84 5/03 92 03/02 34 6179 70 11/99 93 06/02 86 07/01 64 4/95 76 5/88 37 3/84 54 5/89 12 3/60 13 10/67 14 7174 51 10/88 55 12/89 40 9/85 50 9/88 39 4/85 35 2/82 15 4/77 29 8/81 73 2/00 42 2/86 17 2/66 16 4/64 62 10/68 48 7/88 58 9/90 46 5/88 81 02/01 53 2/89 22 4/73 30 3/81 41 9/85 82 03/01 83 03/01 •23 4/71 66 8/98 36 5/76 90 03/02 25 2/75 165 12/02 ARMSTRONG (DILL), PAMELA BAIRD, JULIA BLACKARD, PAUL BOLAIN, ANN BONADUCE, MICHAEL BOUDREY, BETTY MRS. BOUDREY, HOWARD BOUDREY, JACK CARL, FLOYD JR CASELMAN, ARTHUR CATE, ROY CHRISTIE, ARNOLD CIRCT CLRK WA CO CIRCT CLRK WA CO COUNTS, WAYNE DAVIS, BEULAH F. DILL,GARY JOHN FARRAR,ALONZO FRALEY, JOSEPH G. FREEDLE, LARRY GAGE,TOMMY HARRIS, JAMES E. HARRIS, MARY RUTH JENKINS, JOHN JOHNSON,ROBERT JORDAN, CHARLIE JUDY, JAN KING, ARNOLD D. KING, ARVIL LANE, HOPE MRS LAYER, MERLIN LEE, HAROLD LEWIS, CHARLES LEWIS, ROGER (DECEASED) LOGUE, PAUL D. MASON, LARRY MC ARTHUR, RONALD A. MC CHRISTIAN, DWAYNE MC WHORTER, CHARLES MILLER, DONALD MILLER,KENNETH MOORE, JAMES H. MORRIS, WILKIE MRS. (DECEASED) MORRIS, WILLIAM H. MORRISON, ELIENE MULLENS, DENNIS W. OSBURN, EDWARD OSBURN, TROY PHILLIPS,LARRY POAGE, LARRY REED, JOE SCHADER EARVEL SCHADER,TROY SKELTON,KELLY SKELTON, KIMBERLY SKELTON, LAWRENCE BURL (DECEASED) SKELTON, PAULINE SPRINGSTON, CARL STOUT, IMOGENE W. STOUT, ORVILLE (DECEASED) TATE, RALPH 1,658.91 1,649.16 55.00 55.00 2 73514 2,267.18 1,911.99 1,507 82 55.00 75.00 1,637.10 55.00 55.00 377.50 1,658.92 914.10 1,618.08 3,492.86 2,376.34 55.00 55.00 3,273.93 2,812.66 2,081.90 1,507.82 1,393.18 1,566.00 55.00 417.50 55.00 1,507.82 2,624.88 1,492.83 1,604.92 55.00 1,221.26 1,193.41 2,910.17 55.00 - 70.00 80.00 2,005.35 2,248.33 1,738.46 2,530.45 2,147.56 55.00 1,268.40 1,395.58 1,114.17 1,114.17 390.00 737.78 702.65 8,294.55 8,245.80 275.00 275.00 13,675.70 11,335.90 9,559.95 7,539.10 275.00 375.00 8,185.50 275.00 0.00 0.00 275.00 1,887.50 8,294.60 4,570.50 8,090.40 3,492.86 11,881.70 275.00 275.00 16,369.65 14,063.30 10,409.50 7,539.10 6,965.90 7,830.00 275.00 2,087.50 275.00 7,539.10 0.00 13,124.40 7,464.15 8,024.60 275.00 6,106.30 5,967.05 14,550.85 275.00 55.00 350.00 400.00 10,026.75 11,241.65 8,692.30 12,652.25 10,737.80 275.00 6,342.00 6,977.90 5,570.85 5,570.85 3,482.00 1,950.00 3,688.90 3,513.25 . 3,356.83 16,784.15 300.00 100.00 1,258.91 350.00 145.00 1,154.16 55.00 55.00 475.38 2,259.76 300.00 50.00 1,917.18 1,911.99 287.68 50.00 1,170.14 55.00 75.00 1,63710 55.00 0.00 0.00 55.00 377.50 1,558.92 839.10 15.00 1,403.08 100.00 . 2,892.86 50.00 2,100.34 55.00 55.00 700.00 200.00 2,373.93 500.00 100.00 2,212.66 2,081.90 • 200.00 50.00 1,257.82 240.00 100.00 1,053.18 130.00 1,436.00 55.00 417.50 55.00 75.00 25.00 1,407.82 0.00 325.00 75.00 2,224.88 78.16 1,414.67 150.00 50.00 1,404.92. 55.00 150.00 1,071.26 125.00 25.00 1,043.41 325.00 75.00 2,510.17 55.00 0.00 70.00 80.00 2,005.35 160.00 2,088.33 200.00 38.00 .1,500.46 2,530.45 30080 100.00 1,747.56 • 55.00 1,268.40 57.00 1,338.58 125.00 25.00 964.17 125.00. 25.00 964.17 0.00 390.00 70.00 , 17.00 650.78 702.65 0.00 300.00 100.00 2,956.83 100.00 75.00 200.00 500.00 226.00 am DATE OF EMP#RETIREMENT NAME 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 (DECEASED) 88 01/02 WOOD,RONNIE D 52 9/88 WRIGHT, RANDALL DROP DATE 02/01/99 05/01/99 04/01/00 07/01/00 01/01/01 03/01/03 03/01/03 03/01/03 04/01/03 DROP EMPLOYEES LEDBETTER, DENNIS BACHMAN, EDDIE NAPIER,LONNIE REAGAN,PETE DOSS,MARION MAHAN, MARSHALL PIERCE, JOEY SHACKLEFORD, GLEN O'NEAL TEDDY REGULAR Year To Date MO BENEFIT REG BENEFIT FED. TAX 80.00 400.00 80.00 400.00 2,290.35 11,451.75 300.00 400.00 2,000.00 2,816.02 14,080.10 1 547 82 7,739.10 78,262.30 380,877.06 800.00 200.00 8,449.22 ST. TAX • 200.00 25.00 1,740.00 NET 80.00 80.00 1,990.35 400.00 0.00 1,816.02 1,322.82 68,073.08 NEW BENEFITS 3,455.40 2,396.34 3,219.73 3,235.68 4,920.63 3,731.29 3,337.69 3,337.69 3,771.29 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 DAY OF 2003. NOTARY PUBLIC MY COMMISSION EXPIRES : 6810-9810-533500 YID 380,877.06 • • • • ANAAnsAb UGMNIMENI 01 HEALTH...' • • Division Of Vital Records. - CERTIFICATE OF DEATH '1 b€ CEOEMS AIME Ifni MOPS.tae-.- - - - - - Lawrence 'Hurl Skelton )SFA kale -. OATE. •/ Apr11 5, ZW3 - • 1 SCCALSECUWTY NUMBER Se AGE -..Lfl Boren Sa UNDER A YEAR k UNDER a DAY .e DATE OF BIRTH BIRTHPLACE.100 am 5aa Of ,.. 430-36.4554 : neem : mg, . .Soo 1 ..O9a. L fon 1. AwMT- I Ocie' 4lrj 11,13 • Narnifir'y', 'AR .: -: e. WAS DECED&NT EVER N us. A AAA - w PUCE OF DEATH Iaeet *MY e1e).. MFORCES+MC/5PITAL 1 Y µ -Yes AR - I OTHER . ' in,.... ER on. co. !song none Anomie cow soon. Ep. TOOT 1 ANI[ retro /atm ane end no MInOM•. Northwest Nursing Center - .. K CT IRAN ORECCATON OF MAIM I Fayetteville FO COUNT+OF JEAr Washington '- 10 MANTAI STATUS — Mand - ram Mewed Mooned - 1De h-SNMold Sawsa ,e Mpm pHaw n.. 1]W DECEDENT SUSsM OCCUPATION /Gee .Aro Ntan Woe w1' P„can Y •wuyw fa Sae I 1 WO ONO Cf BUSNESS'MOSIR• • 'V�idewedoid! one - me - Retired fire Chief I City Of Fayetteville :. 134 RESIDENCE ec STATE. M .1]15 -COUNTY .. .. Meeh ngton - 1N. Gen. .OR LOyTCN ,. .` Ix STRECI INOM}AFEA' •. Fayettevi lie 107 South Duncan 13* OSTM CITY Of. )IPCObE 11 WAS DECEDENT OF NSPARTC ORIGIN+ 15. RAM— Amman Innen, 16 DECEDENT 5 EDUCATION LNRS+..... - o ... •. .ISJ{a1),Now Yes— 11 pis wady Ginn........ RIHa. Whit. Tr .. .. ISpec et Iur.ss in co,pere .Yen sW Mns+a Raft Ran tic 1 R+V .YAR r.perM ePrb.1 .. M Atte .. Eawe[Nwy SOCrelley la12, ' CYbpe I+Mw! . -12 1T FATHERSNAME IF I Mgpk. by) ' Jon M.rri.on ikeltsn - 1 Ie MOTHER'S NAME (Fm. Meddle. . MaSumamU Nary Ellen Flay Schauer Ir) NFO RYUII $ NXI,EI'p aA1' - - - Enna Ferrer 1; MAILING ApD,N$$ Sant W MW Y 141 Ras Peat Gr co tY,. $.'aY. )y coon 1111 E Huntington WC 2036 Feyettevllle AR 72701 200 DATE OF DISPOSITION Warm. Day. Veer) RECEIVED' APR 2-8 2003 CITY OF FAYETIEV1LLE CRY CLERK•SOFFICE ;.., "'Sia SIGNATURE R EMBALMER. OP* OW . Sunset Cautery 211) LICENSE NUMBER 22a. NAME AND 'ADDRESS 'OF FUNERAL HOME ... .. 1 98 Lugirtiet Funeral Hoe P.O. lea 193 - Prairie Grove, Al 72753 2DRART t-.Elilenneconies. acne,.aW.weweeel caner re Slit, 00+n enter 11e MOO at Ors). NLN m 01YSC N,6R1eby arta ace. Y NMn mere Lel only one use on each Int •raft DATE WS( ` '• .. . ., 1Fe.l oleo Y mles _a. %y5([�Ln • CA, ..�. N4 n?'•�11 ' -1eYlaeg F Dean - ... DUE IOIOA AS ACON$E(NENLE (IFI'. Swa0M.heNT s mA9auW - . ea,. a3 cn.r A[ 0.0 A5ACON$FO [A [O1 urn fDs •CE9Ln.s ... .. .. CAUSE (Dena Y Alun _ PART 11 Other agnMUM mMtms combining ,o dean, M ml resulting in Die uwde•M1IF cane grvM m Par 1 .. 5, u 4/ �•F?2 O7....e-?-. P. n.... (4s ,3 6 /...1`.. } u. -r 24 DRS AN AUTOPSY PERFORMED+ 25. WERE AUTOPSY ENDINGS AVAILABLE PROR TO .ccsin E T. Or CAISE OF OE ARO Elbe N1 30 DESCRIBE HOW INJURY OCCURRED-. .. )i. RACE OF INJURY lane.. mw.' gent aclo, eT 32 LOCATION IS wee. wd1F. enc !Specify) ' --3]. TATE OF DEATH "-" 34.DATE'PRONOUNCEO DEAD (Momn.'Oy.Year) .12:40 P..N. .. April 5, 20D3 ixO TO'MEOGL EXAMINER GORGE -IVO On air peon aarwel+cw'a erveM9rw: a fay WNOa:Msm manta a: re Oak •m wee am ew Wee minetal Ra macer notated IYem. Lyy.Ye1*) a CE aloes s4 P..YS C AM //• NM- .Ln:•weY w aa.a•..•,. Fa <F 1't Weds, t-. REG STEREO A.ASE•ns.c 4.. Lassaow.n al w'w k. Signature r nature and G .✓ /2•4Y":",.u-'iuYCa:b 3bIJ1c SS O ARE'.' 0415. rti7 cavSt difct-am•, p.'t ___ Or. Scott Mans a 2422 a Meg ar, Sprinpdale, AA 72764 .e ij,fAKWR9i6etiM - 42 DATE FI FD Mora dr Ye WI �6.L: •'• a - ♦ • TO OERT/Fif TM&ir (E ABOVE ISA TRUE AND CORRECT COPY OF • pjlffGA thyt?re 4• 'T ... • E� p) T �} , SEA` j ... .Bnaron M. Leinbach.. Is _ f (� Stale Registrar t, .. A REPRODUCTIONOFTH IS DOCUMENT RENDERS 1T VOID AND INVALID, DONOT ACCEPT UNLESS ° WARNING. EMBOSSED SEAL,OF THE ARKANSAS.DEPARTMENT OF HEALTH'S PRESENT. IT IS ILLEGAL TO 0 8 56209 LA�.t '� `� ALTER OR COJMERFER TMS DOCUMENT Membership Info • Hirt 5'r ri1r4., Why Belong to NCPERS? 'Become eMember It is easy to become a member of NCPERS. Select the type of membership that applies to you — either a pension fund/associated organization or corporate sponsor — and complete the online registration form. Once submitted to NCPERS along with your dues payment, you will begin receiving all the benefits of NCPERS membership by joining a unique organization committed to the preservation and protection of public sector pension funds for the millions of public employees who have committed their lives to public service. Are you applying for a membership as a Pension Fund? or Corporate Sponsor? Download Application Pension Fund Corporate Sponsor Page 1 of 2 About NC PERS Leolslative acial Pleinhersti c Info1k£-=. Conaresslon`al Sta1r-'t Caircati:lfs The public pension community used to be a small, tight -knit group. Today, however, the competition to advise and assist pension funds is greater than ever. NCPERS is the only public pension organization that brings together all public employee fund groups. ti In this complex political and economic environment, no one involved in public pensions can afford to be without the support and education NCPERS offers. We provide our trustee members and corporate sponsor members with informative publications, legislative representation, professional training, and educational conferences throughout the year. o The Monitor, information on federal and state legislation o Federal and State Legislative Alerts [more on The Monitor] o Persist quarterly report about current pension issues, including investment and benefit reports, legal issues, and trustee continuing education [more on Persist] o http://www.ncpers.org website that contains regular legislative, legal and regulatory updates, as well as information about NCPERS conferences regislatwe Represeedition o Bill Tracking: NCPERS tracks federal and state legislation and regulations that impact pension funds ,Profess"Iona nen o Trustee Educational Development Seminar (TEDS): trustees hear from professional experts about benefit trends, investment fundamentals, due diligence, legal issues, and trustee responsibilities Educational Conference_Opportunities o NCPERS Annual Conference: The annual conference, which attracts over 1200 participants, provides networking and educational opportunities [upcoming conferences] o NCPERS Annual Legislative Conference: This conference provides the opportunity to leam about legislative http://www.ncpers.org/html/membership_info.html 5/27/2003 • Membership Info i • Page 2 of 2 issues from members of Congress and key administration officials and to lobby elected representatives [upcoming conferences] C 2003 National Conference on Public Employee Retirement Systems http:Uwww.ncpers.org http://www.ncpers.org/htmUmembership_mfo.html 5/27/2003 CITY OF FAYETTEVILLE FIREMEN'S PENSION AND RELIEF FUND 1 13 W. MOUNTAIN STREET , FAYETTEVILLE, AR 72702 April 24, 2003 Longer Investments Inc. P. 0. Box 1269 Fayetteville, AR 72702 RE: CITY OF FAYETTEVILLE FIREMEN'S PENSION AND RELIEF BOARD AUTHORIZED SIGNATURES 1, Dan Coody, Mayor of the City of Fayetteville and member of the Firemen's Pension and Relief Board hereby autiionze the following individuals to transfer funds from the City of Fayetteville Firemen's Pension and Relief Fund account under management by Longer Investments Inc. to the City of Fayetteville Firemen's Pension and Relief Fund checlang account as needed. Sample of authorized signatures: X &oy.dA.au R Name: Sondra Smith Title: City Clerk X / Arrow Name: Dann FA/ Title: Assi •1 Fire Marshall X Name: Marion Doss Title: AssiskntFire rhief X Name: Pete Reagan Title: Trustee Smcerely, X 22 • an Coody, Mayor Attest: X hgesd.+-i (i)exet+ Sondra Smith, City Clerk J • • Market Analysis Market Outlook • Liquidity will continue to be stimulative. • With possible 50 -basis point interest rate cut, interest rates are positive. • Equity valuation is not cheap historically. • Earnings growth is the key to improved market performance. • • 01 30 S&P 500 Historical Price/Earnings Ratio —R atlo 25 20 15- t0 - 5 O N t7 d V1 CO 1- 1- m m g O O m m m CO m m m m m m m m m m m ▪ ▪ m 0) 0 m m m m m m m 0) 0 0 0 m T 0 co m m 0 0) m m m N N N 50% Difference Between Bond and Stock Performance 52 week ten-year Treasury bond prier return 40% exceeds the S&P 500 index price return 30% 20% 10% 0% -10% - 20% -00% -50% 52 week S&P 500 index price return exceeds the ten-year Treasury bond price recant - 60% ( co rn ao rn ch to r rn CD 0) CD 0) 0 M 9 CO c0 m o3 as 03 05 03 o3 m m 03 m m m m 03 as m m 25525255555555552555 January 1, 2000, through March 31, 2003, Performance S&P 500 (with dividends reinvested) -39.6% NASDAQ -67.0% Salomon Brothers U.S. Treasury Index +36.5% Relative performance of bonds: +76% to S&P 500 and +103% to NASDAQ Concerns • A leveraged household sector that is poorer and illiquid. • A leveraged business sector with underfunded pension plans. • A state and local government sector with record budget deficits and unfunded liabilities. • A return to federal budget deficits. The Household Sector HOUSEHOLDS HAVE EXPERIENCED AN UNPRECEDENTED DECLINE IN NET WORTH e < HoueeholEB Nonproflar to Y nlzetlons ,Net Warfh`..> 's:%Chefipv: Yadt to Yqm ea,e,'. Household§, Nonproflt•Orpanizatfons Net Worth> 12 40 so 20 fc a"s 0 CONSUMER SPENDING WILL LIKELY BE HELD BACK BY HIGHER SAVING .. . eonal Se9Iii0 tate SAAR. :%:V.'r- H.80...1.974 90%1.. 00 � OTh?- 02 Buneu nO.Emnomle Malysb Mavvr Mtlrinw.v'iz�..i�::`:• • -'X -J • • ...TO REPAIR OVERLEVERAGED BALANCE SHEETS. Housetwlds Totel LIebllltias/Net Worth: LIQUIDITY IS AT RECORD LOWS MFs%TotaI LIGbilitisp -p-ti _.. e: AND THE PERSONAL BANKRUPTCY RATE IS NEARARECORD HIGH ,..- +::Personal BenkrupIiiin9s us %1 Households ry;F • .25- r .. 1 1.00 A. v bo 5 .. 55'.' 10 :, Th ; y bo • • • CONSUMER SPENDING HAS BEEN SUPPORTED BY HOUSEHOLDS TAPPING THE EQUITY IN THEIR HOUSES .n Hou§eha % olde. Owheis':.EQUltyas 4OI Household Real Estate >>.4 - e5'` L 1 The Business Sector CORPORATIONS WENT ON A BORROWING SPREE IN THE LATE 1990s, LEAVING THEM WITH RECORD -HIGH LEVERAGE -NonfermN6riflnanciei Corp Bda: Uabs Credit' Mkt Instruments'; c Nonfarm Nonlinariclel'Cbrp Bas: Credit Market Debt/Net Worth Ratio:',. 500- �.... V .. .�._ a60I0 • 2:5 `tt 6.0 t 6- ( :5.1.0 0 Sources: Felmel-BOsaive 202ertl.';/14ev6/ instwes - BUSINESS CREDIT IS TURNING SOUR IN ADDITION TO PAYING DOWN DEBT, ANOTHER CLAIM ON CORPORATE PROFITS IS UNDERFUNDED PENSION PLANS. State/Local Government Sector • STATE/LOCAL GOVERNMENTS ARE RUNNING RECORD DEFICITS BECAUSE OF THE BEAR MARKET IN STOCKS State end Leta' Government Surplus ar-0enal FL NIDA _ �_.. -tpu MoviroAveragir-' SMP. as 1 • 4 so, 1 1 EZ- 1 1 7 r rt (, as :SE w ns.r. 50 .45 ;,„>a w'bvwu N Emilavk MlpbNoon Mtlytcs 75 BO 65 04 OS 0 FORECAST 2000(A) 2001(A) 2002(A) 2003(F) Real Gross Domestic Product 23 0.1 2.9 2.5 (%change Q4/Q4) Consumer Price Index 3.4 1.9 2.2 2.8 (% change Q4/Q4) Unemployment Rate (Q4 average) 4.0 5.6 5.9 6.0 Federal Funds Rate * 6.50 1.75 1.25 0.75 A - Actual, F - Forecast Federal funds target on last business day of the year • Charts and graphs provided by Northern Trust Company, April 2003. Federal Budget Deficits • • POLITICS AND POLICY FROM THE ARCHIVES: April 18, 2003 U.S. Budget Deficit Balloons To $252.6 Billion in 1st Half Associated Press WASHINGTON -- The government ran up a deficit of $252.6 billion in the first six months of the 2003 budget year, nearly twice the total for the same period a year earlier. The latest figures, released Friday by the Treasury Department, highlighted the government's deteriorating fiscal situation. Record deficits are forecast this year and next. The total deficit so far this fiscal year, from October through March, was higher than the Congressional Budget Office's forecast for a deficit of $248 billion. The shortfall was $131.9 billion in the 2002 first fiscal half. Revenue slipped 6.1% to $825.2 billion from the year-earlier period, reflecting lower tax revenue from the listless economy. I • ' Individual income-tax payments dropped 6.8% to $372.1 billion. Corporate tax payments plunged 43% to S44.6 billion, reflecting in part the impact of business tax cuts enacted last year and weaker profits, the CBO said. Federal spending climbed 6.6% to $1.08 trillion from a year earlier. The biggest spending categories were Social Security, at $249.3 billion; programs of the Health and Human Services Department, including Medicare and Medicaid, $246.5 billion; military, $180.9 billion; and interest on the public debt, $160.6 billion. For the entire 2002 budget year, which ended Sept. 30, the government ran up a deficit of $157.8 billion, ending four consecutive years of surpluses. The Bush administration has blamed the return of deficits on lingering effects of the 2001 recession and the costs of fighting terrorism at home and abroad. Democrats say a major cause of the red ink has been President Bush's 10 -year, $1.35 trillion tax cut and what they contend are bad economic policies being pursued by the Bush administration. For the month of March, the government produced a deficit of $58.7 billion, with revenue of theshortfall of 64.2tbi outlays of recorded forth sn. ame month last year.e deficit for March, however, was smaller than Copyright © 2003 Associated Press Source: Wall Street Journal, April 18,2003