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Home My WebLink About1996-07-25 - Agendas - Final FAYETTEVI LLE THE CITY OF FAYETTEVILLE, ARKANSAS TRACI PAUL, CITY CLERK TO : Policemen ' s Pension Board Members FROM : Traci Paul , City Clerk/Treasurer DATE : July 22 , 1996 SUBJECT : Police Pension Board Meeting The next Police Pension Board meeting is Thursday , July 25 , 1996 , at 1 : 30 p . m . , in room 326 of City Hall . Attached , please find a copy of the agenda for the upcoming meeting , the minutes from the April 18 regular meeting and the June 12 special meeting and the pension lists for June , July , and August , 1996 . Attachments k. 1 c�. 113 WEST MOUNTAIN 72701 501 575.5323 I0 AGENDA POLICEMEN ' S PENSION AND RELIEF BOARD July 25 , 1996 1 : 30 p . m . City Hall Room 326 1 . Approval of the minutes of the April 18 , regular meeting and the June 12 , special meeting . 2 . Old Business A . Report - Proposed Benefit Increase 3 . New Business A . Report from Longer Investment B . Presentation - Jim Wood , Dean Witter C`'• Report from Mike Kirkland p'. Other 4 . Adjournment e MINUTES OF A POLICE PENSION BOARD MEETING A meeting of the Police Pension Board was held on April 18 , 1996 at 2 : 30 p . m . in room .326 of the City Administration Building , 113 West Mountain ; Fayetteville , Arkansas . PRESENT : Mayor Fred Hanna , Randy Bradley , Hollis Spencer , City Clerk/Treasurer Traci Paul ABSENT : Eldon Roberts , Jerry Friend , and Dr . James Mashburn CALL TO ORDER The meeting was called to order by Mayor Hanna . MINUTES Spencer moved to accept the minutes . Bradley seconded . The motion passed unanimously . OLD BUSINESS Jerry Friend - Appointed as Retired Member Mayor Hanna presented a letter written by Spencer stating he had • the votes to keep Jerry Friend on as a retired board member . Spencer stated it was a unanimous vote for Friend filling that slot . Mayor Hanna asked that the letter be made part of the minutes . 3 List of Retirees Paul presented a rough draft of a list of retirement dates and salaries at retirement , as was requested at the special meeting in February . This should be in its final format by the next meeting . NEW BUSINESS INVESTMENT REPORTS Longer Investments Kim Cooper , Longer Investments , reviewed the reports included in the agenda packet . 46 . 616 of the combined portfolio is in stock . Of that , the Barrick Gold and Inco , Ltd , the Mobile , and Placer Dome are considered cash reserves as opposed to equity . The total account value is $ 3 . 913 million . Regarding the stock portfolio alone , 22o is in bonds and 12 > is cash . About 35 % of the stock portfolio is being held in reserves . Bond interest rates have been coming ' up , but Elaine Longer thinks there is a chance for a peak , and later in the year there will probably be a much better buying opportunity in bonds than in stocks . We are waiting on the sidelines now with a lot in cash reserves . Stocks and bonds are down a little bit because of the rise in interest rates , so the total portfolio is down a little . Dean Witter Mike Kirkland , Dean Witter , asked for any questions . There being none , he reviewed the reports as presented in the agenda packet . The cash account report shows $ 67 , 000 in cash ; but all the CD ' s mature in a couple of months , $ 204 , 000 . We will not be able to replace that with the way CD ' s are now . If we bought anything new right now , we would stagger maturities because rates are so low we would not want to tie anything up long term . Kirkland explained the activity in the bond account , the Madison account . Rates have gone up in the bond market . This has affected all the fixed - income investments . Rates have gone up • and bond values have gone down . In this case it is about 1 . 5 % in the first three and a half months of this year . The treasury note matured at the end of March and has not been put back to work yet , which is wise . They have about 23 % in cash now . The $ 378 , 000 is in money market funds and the $ 1 . 2 million -is still in bonds . Regarding the TCW account , the balanced account , the stock market continues to do well . The account is up about 2 % since the end of the year . In this account 64 % is in stocks , 31 % is in bonds , and only 5 % is in cash , much as it has always been . In the three accounts at Dean Witter , the total amount as of the close yesterday was $ 3 , 728 , 581 . of those three accounts , 20 % is in cash , including the soon to mature CD ' s ; 31 . 41 is in the stock market ; and 48 . 6 % is in the bond market . Kirkland recommended having a comfortable figure in some international management . With our markets having done so well . and the international markets lagging ours , you have increased return and decreased volatility when you have a mixture of a little international . He recommended a specific manager , Lazard Freres . Essentially , it would be like hiring another manager with additional expertise and means further diversification . The fee structure would not go up . • • In response to a question , Kirkland stated Merrill Lynch has come out with its own Japan fund . Japan is the second largest economy in the world . They are coming out of a banking crises and for diversification it would not be unwise to have a little more exposure in Japan . Many global funds will have some exposure in Japan anyway . Kirkland read from the investment policy : " Investments in international securities shall be made only after securing the approval by the majority of the Board at a regularly scheduled meeting . " This could be discussed more at the next meeting . In response to a comment , Kirkland stated investments would be spread all over the place and not weighted in any one country . There was general discussion regarding foreign investing . The meeting adjourned at 3 : 20 p . m . • • • MINUTES OF A POLICE PENSION BOARD MEETING A special meeting of the Police Pension Board was held on June 12 , 1996 , at 2 : 30 p . m . in room 111 of the City Administration Building , 113 West Mountain , Fayetteville , Arkansas . PRESENT : Mayor Fred Hanna , Hollis Spencer , Randy Bradley , Jerry Friend , Eldon Roberts , Dr . James Mashburn ( arrived late ) , and City Clerk /Treasurer Traci Paul . CALL TO ORDER The meeting was called to order by Mayor Hanna . BUSINESS Mike Kirkland - Move to Morgan Keegan Mike Kirkland thanked the Board for calling a special meeting . Kirkland explained that he was approached by a firm by the name of Morgan Keegan approximately five weeks ago to open an office in Rogers . Morgan Keegan is a large regional firm out of Memphis . Morgan Keegan purchased a Little Rock firm in 1989 so they have been in Arkansas for a number of years and have a large office building in Little Rock . The home office is in Memphis . • They have been in business since 1969 . Kirkland presented a copy of the 1995 Morgan Keegan Annual Report and other materials to the Board . Kirkland explained he had been considering not staying in this business . Kirkland stated the move is timely for him . He I . explained that he and his wife would be empty nesters soon which would allow him to work more . He stated there will be more time to spend at the office . Kirkland stated he is more excited about the business than he has ever been . Kirkland stated he wanted to meet with the Board to review each account that the Board has with Dean Witter and discuss options . He stated he also wanted . to explain to the Board where he has gone and why he has moved . Kirkland stated he has nothing but praise for Jim Wood and the crew from Dean Witter . He stated he chose to move to a smaller firm because there is more flexibility and more personalized attention . Morgan Keegan is a client oriented firm where the client is first . The philosophy there is less bureaucratic and there is less red tape . Morgan Keegan is an easy going but top notch firm . They are very highly respected in the industry . They do a whole lot of the underwritings in Arkansas for municipal bonds . Kirkland explained the move is a good move for himself and his clients . • June 12 , 1996 Kirkland stated the Board is not obligated to transfer any money . He explained he appreciates the opportunity to present his case and will plan to make a more detailed presentation in July . In the cash account , there is $ 180 , 000 in CD ' s maturing this month . This will boost what is already in the account up . Morgan Keegan has an excellent fixed income desk if the Board wants to do some CD ' s . The cash account would not change . It would continue to funnel money in and out as needed . If the Board chose to transfer the Madison account , not one thing would change . Madison is not a part of the preferred manager program but because of the way it is set up , they are charging you a fee to manage it . I get a commission when they do a trade . They are not active traders . If the Board transfers the account to Morgan Keegan , we would still pull a fee out of the account and mail to Madison just like we have been doing at Dean Witter . The TCW balanced account is the account that is a question mark as far as Morgan Keegan goes . Morgan Keegan does not have an agreement with TCW as far as doing a wrap program . We could transfer the account to Morgan Keegan . There are some options to consider . Options can be discussed at a later date . • Kirkland stated he mainly wanted to give the Board an opportunity to hear a little bit about Morgan Keegan and the reason for the move . This meeting is an opportunity for the Board to agree to a more detailed presentation and recommendation at the regular meeting in July . It is also an opportunity for the Board to decide to do something different . Kirkland stated he would like to invite some people from Memphis to meet with the Board in the future . Morgan Keegan is committed to Northwest Arkansas . The Rogers office is located on Walnut Avenue . Roberts asked if the Pension Board would have to spend any more money if they decided to go with Morgan Keegan then they would if they remained with Dean Witter . Kirkland stated no . If the Board instructed Dean Witter to cease trading , they would refund to the Board the piece that is remaining until the end of July . Kirkland stated TCW is the only real change to talk about . The reason the Board would be considering a change is because Morgan Keegan does not have an agreement with TCW in their wrap program . Roberts expressed concern about managers making unnecessary trades just to generate revenue . June 12 , 1996 Kirkland stated he would mail to the Board more information on Morgan Keegan . The phone numbers to the Rogers office are 800 - 758 - 4008 and 936 - 7774 . The fax number is 936 - 7775 . Kirkland thanked the Board for having a special meeting and stated he would like to have an opportunity to attend the regular meeting in July to discuss more details . Kirkland left the meeting . Mayor Hanna stated each Board member should take some time to think about this issue . We should have a full Board meeting before a decisionis made . Administrative Services Director Ben Mayes stated he had a call from Dean Witter . They asked that they be allowed to make a presentation if the Board was going to consider switching to Morgan Keegan . Friend stated he has been dissatisfied with Mike . The Board should look into another manager at Dean Witter or change to somewhere else . Roberts explained he does not have a problem with listening to presentations from other people . He stated he prefers to stay • with Mike . He has been with the Board eight years . He understands how we function and our philosophies , goals and objectives . There are probably other companies that are going to want to come and give presentations . Mashburn arrived . Friend expressed his concern that Mike does not seem prepared for the Pension Board meetings . He stated the reports are confusing . He is making as much money as anybody is . The Board discussed the possibility of giving everything to Longer Investments . Roberts suggested it would be better to have two managers . . In answer to a question from Roberts regarding Friend ' s dissatisfaction with Mike , Friend stated he just doesn ' t like Mike ' s reports and doesn ' t understand what he says . Mayor Hanna stated considering the way Elaine Longer handles the account , we really would not be putting all of our eggs in one basket . The Board could instruct Elaine to invest portions in certain types of investments . . Roberts stated she would have to follow the investment guidelines set by the Board . • June 12 , 1996 Friend stated , although it is a drastic move , he would be open to transferring everything to Longer Investments . Friend restated he is dissatisfied with Mike ' s reports . Paul asked if the Board has ever said anything to Mike and asked him to do his reports different . Roberts and Friend stated they had not . Mayes stated it is not wise to put all of the money with one investor . Whether they diversify or not , there is still risk in the philosophy of one . Elaine does a better job of explaining things but the performances have been about the same . Mashburn agreed that the performances have been about equal . Roberts suggested that one of the reasons Elaine does such a good job is that her business is small enough that she can tend to business . Mayes stated Elaine manages the account where Dean Witter or Morgan Keegan hires other investment managers . They are not the ones doing the day to day managing . • Mashburn stated with some communication , Mike might start giving better reports to the Board . Mashburn agreed that Mike ' s reports are unorganized and hard to follow . Bradley stated the Board needs to tell Mike . Roberts stated Mike is uncomfortable with the performance in the TCW account . Friend stated he is not so unhappy that he would have changed it had he stayed with Dean Witter . Mashburn stated if the Board decides to stay with Mike , he should get the word that we expect him to make his reports more understandable and organized . Spencer asked for the date of the next meeting . Roberts suggested transferring the $ 1 . 6 million in the TCW account to Longer Investments . In answer to questions from Bradley and Roberts regarding the amount in the cash account , Mayes stated approximately one year ago they came to us and offered us an opportunity to buy some CD ' s . The Board approved them to go ahead and do that at the • time . They are all maturing in May , June , and July of this year . • June 12 , 1996 The Board continued to discuss their dissatisfaction with the lack of organization and communication with Mike Kirkland . Bradley stated Mike might just need to be told about the Board ' s concerns . Bradley suggested writing a letter to Mike . Roberts asked if the Board wanted to make a decision at this meeting . Mayes stated that he told Jim Wood with Dean Witter that we would call him and let him know if the Board was going to consider a transfer . Friend stated Dean Witter deserves a chance to make a presentation . The Board decided they did not want to hear presentations from other , companies . Friend suggested having Dean Witter come ,in and make a presentation and have a letter sent to Mike Kirkland addressing the Board ' s concerns . Mayor Hanna asked if Paul would write the letter . • Paul stated she would write a letter and send Mike a copy of the minutes . Discussion ensued regarding the status of the Fire Pension Fund . Mayor Hanna stated we will have Dean Witter here at the regular meeting in July to make a presentation . We will have Mike notified and he will probably be here to make a report . Mayor Hanna stated Mike will be here to make a report so he needs to receive the letter before the meeting . In answer to a question from Friend , Paul stated she did not have a problem with writing a letter to Mike Kirkland . Paul stated the next meeting is July 18 . Mashburn stated he would not be able to attend a meeting on July 18 . The Board decided reschedule the meeting for July 25 at 1 : 30 p . m . In response to a comment from Mayor Hanna , Paul suggested the letter to Mike Kirkland be signed by each member of the Board . • The meeting adjourned at 3 : 20 p . m . POLICE PENSION FUND JUNE 1996 EMP# NAME GROSS FED. TAX ST. TAX NET 131 ARNOLD, R D 838.00 838.00 130 BAYLES, DON 760.73 760.73 107 BLACK, JOE P 539.44 539.44 120 BOWEN, J R 350.00 10.00 340.00 147 BRADLEY, GERALD 21345.47 300.00 45.47 2,000.00 139 BRADLEY, RANDALL 1 ,388.45 11388.45 101 BROOKS, BILL 728.22 728.22 109 COOPER, ADRIAN 350.00 350.00 111 DAY, LUCILLE 350.00 350.00 108 DENNIS, WARREN 666.51 666.51 125 FLOWERS, HAROLD 413.39 413.39 140 FOSTER, BILLIE D. 11563.71 150.00 50.00 11363.71 148 FRIEND, JERRY 11510.85 11510.85 145 HANNA, MARK 1 ,311 .73 120.00 35.00 11156.73 124 HASKINS, RONALD 374.85 374.85 146 HUTCHENS, BERNICE 874.85 130.00 744.85 143 JOHNSON , CHARLES 1 , 176.74 36.70 1 , 140.04 103 JOHNSON , WENDELL 375.30 375.30 118 JONES, BOB 1 ,581 .67 11581 .67 144 KILGORE, DONALD 980.73 19.72 961 .01 129 LAWSON , FORREST 751 .38 50.00 701 .38 114 LITTLE, LOYD F 350.00 350.00 119 LORCH , EARL 350.00 350.00 128 MCCAWLEY, LARRY 812. 19 70.00 742.19 116 MCCHRISTIAN, MARIE 350.00 350.00 126 MCWHORTER, KAREN 485.02 485.02 136 MITCHELL, MICHAEL 1 , 104.75 150.00 954.75 141 MUELLER, ROSEMARY 989. 10 989. 10 112 MURPHY, JAKE 350.00 350.00 137 PERDUE, LARRY 11113.09 100.00 1 ,013.09 132 PHILLIPS, HOMER GENE 843.00 300.00 543.00 105 PRESTON , GEORGE DAVID 767.43 67.43 700.00 135 RICKMAN, LOREN 11069.19 169.00 20.00 880. 19 104 RIGGINS, RAYMOND C 806.67 100.00 706.67 115 RITCHIE, LIZZIE 350.00 350.00 122 SKELTON, FRANK 398.70 398.70 123 SPENCER, HOLLIS 659.25 50.00 609.25 121 STOUT, WAYNE 415.25 415.25 133 SURLES, JERRY 1 ,304. 17 138.00 1 , 166. 17 142 TAYLOR, DENNIS 989. 10 60.00 15.00 914. 10 106 UPTON, FRANKLIN 506.58 10.00 496.58 110 WATTS, BEULAH 350.00 350.00 136 WILLIAMS, BOBBY 1 ,217.07 217.07 11000.00 134 WITT, DON 846.72 64.00 782.72 127 WOOD, PAUL J 757.62 757.62 ----------------------------- $36,416.92 $2,255.50 $221 .89 $33,939.53 POLICE PENSION FUND JULY 1996 • EMP# NAME GROSS FED. TAX ST. TAX NET 131 ARNOLD, R D 838.00 838.00 130 BAYLES, DON 760.73 760.73 107 BLACK, JOE P 539.44 539.44 120 BOWEN, J R 350.00 10.00 340.00 147 BRADLEY, GERALD 21345.47 300.00 45.47 21000.00 139 BRADLEY, RANDALL 1 ,388.45 1 ,388.45 101 BROOKS, BILL 728.22 728.22 109 COOPER, ADRIAN 350.00 350.00 111 DAY, LUCILLE 350.00 350.00 108 DENNIS, WARREN 666.51 666.51 125 FLOWERS, HAROLD 413.39 413.39 140 FOSTER, BILLIE D. 11563.71 150.00 50.00 11363.71 148 FRIEND, JERRY 1 ,510.85 1 ,510.85 145 HANNA, MARK 19311 .73 120.00 35.00 1 , 156.73 124 HASKINS, RONALD 374.85 374.85 146 HUTCHENS, BERNICE 874.85 130.00 744.85 143 JOHNSON , CHARLES 1 , 176.74 36.70 1 , 140.04 103 JOHNSON , WENDELL 375.30 375.30 118 JONES, BOB 1 ,581 .67 11581 .67 144 KILGORE, DONALD 980.73 19.72 961 .01 129 LAWSON , FORREST 751 .38 50.00 701 .38 114 LITTLE, LOYD F 350.00 350.00 119 LORCH , EARL 350.00 350.00 128 MCCAWLEY, LARRY 812. 19 70.00 742. 19 • 116 MCCHRISTIAN, MARIE 350.00 350.00 126 MCWHORTER, KAREN 485.02 485.02 136 MITCHELL, MICHAEL 11104.75 150.00 954.75 141 MUELLER, ROSEMARY 989. 10 989. 10 112 MURPHY, JAKE 350.00 350.00 137 PERDUE, LARRY 11113.09 100.00 1 ,013.09 132 PHILLIPS, HOMER GENE 843.00 300.00 543.00 105 PRESTON , GEORGE DAVID 767.43 67.43 700.00 135 RICKMAN, LOREN 1 ,069. 19 169.00 20.00 880. 19 104 RIGGINS, RAYMOND C 806.67 100.00 706.67 115 RITCHIE, LIZZIE 350.00 350.00 122 SKELTON, FRANK 398.70 398.70 123 SPENCER, HOLLIS 659.25 50.00 609.25 121 STOUT, WAYNE 415.25 415.25 133 SURLES, JERRY 1 ,304. 17 138.00 11166. 17 142 TAYLOR, DENNIS 989. 10 60.00 15.00 914. 10 106 UPTON , FRANKLIN 506.58 10.00 496.58 110 WATTS, BEULAH 350.00 350.00 138 WILLIAMS, BOBBY 11217.07 217.07 11000.00 134 WITT, DON 846.72 64.00 782.72 127 WOOD, PAUL J 757.62 757.62 $36,416.92 $2,255.50 $221 .89 $33,939.53 POLICE PENSION FUND AUGUST 1996 EMP# NAME GROSS FED. TAX ST. TAX NET 131 ARNOLD, R D 838.00 838.00 130 BAYLES, DON 760.73 760.73 107 BLACK, JOE P 539.44 539.44 120 BOWEN, J R 350.00 10.00 340.00 147 BRADLEY, GERALD 2,345.47 300.00 45.47 2,000.00 139 BRADLEY, RANDALL 11388.45 1 ,388.45 101 BROOKS, BILL 728.22 728.22 109 COOPER, ADRIAN 350.00 350.00 111 DAY, LUCILLE 350.00 350.00 108 DENNIS, WARREN 666.51 666.51 125 FLOWERS, HAROLD 413.39 413.39 140 FOSTER, BILLIE D. 11563.71 150.00 50.00 1 ,363.71 148 FRIEND, JERRY 11510.85 1 ,510.85 145 HANNA, MARK 1 ,311 .73 120.00 35.00 1 , 156.73 124 HASKINS, RONALD 374.85 374.85 146 HUTCHENS, BERNICE 874.85 130.00 744.85 143 JOHNSON , CHARLES 1 , 176.74 36.70 1 , 140.04 103 JOHNSON , WENDELL 375.30 375.30 118 JONES, BOB 1 ,581 .67 1 ,581 .67 144 KILGORE, DONALD 980.73 19.72 961 .01 129 LAWSON , FORREST 751 .38 50.00 701 .38 114 LITTLE, LOYD F 350.00 350.00 119 LORCH, EARL 350.00 350.00 128 MCCAWLEY, LARRY 812. 19 70.00 742. 19 • 116 MCCHRISTIAN, MARIE 350.00 350.00 126 MCWHORTER, KAREN 485.02 485.02 136 MITCHELL, MICHAEL 11104.75 150.00 954.75 141 MUELLER, ROSEMARY 989. 10 989. 10 112 MURPHY, JAKE 350.00 350.00 137 PERDUE, LARRY 1 , 113.09 100.00 1 ,013.09 132 PHILLIPS, HOMER GENE 843.00 300.00 543.00 105 PRESTON, GEORGE DAVID 767.43 67.43 700.00 135 RICKMAN, LOREN 1 ,069. 19 169.00 20.00 880. 19 104 RIGGINS, RAYMOND C 806.67 100.00 706.67 115 RITCHIE, LIZZIE 350.00 350.00 122 SKELTON , FRANK 398.70 398.70 123 SPENCER, HOLLIS 659.25 50.00 609.25 121 STOUT, WAYNE 415.25 415.25 133 SURLES, JERRY 1 ,304.17 138.00 1 , 166. 17 142 TAYLOR, DENNIS 989.10 60.00 15.00 914. 10 106 UPTON , FRANKLIN 506.58 10.00 496.58 110 WATTS, BEULAH 350.00 350.00 138 WILLIAMS, BOBBY 11217.07 217.07 11000.00 134 WITT, DON 646.72 64.00 - 782.72 127 WOOD, PAUL J 757.62 757.62 ---------------------------------------- $36,416.92 $2,255.50 $221 .89 . $33,939.53 po) D D ARKANSAS FIRE & POLICE PENSION REVIEW BOARD P.O. DRAWER 34164 LITTLE ROCK, ARKANSAS 72203 TELEPHONE (501 ) 682- 1745 FAX: (50 1 ) 682. 1751 RECET VJ7iL July 1 , 1996 M ® 8 19961 Board of Trustees -MY CLERWS OFFM Fayetteville Police Pension & Relief Fund c / o City Clerk/Treasurer Traci Paul City of ,- Fayetteville 113 West Mountain Fayetteville , Arkansas 72701 Dear Board of Trustees : Effective February 15 , 1996 , the Board of Trustees of the Fayetteville Police Pension and Relief Fund passed a resolution to increase the benefit amount of present and future retirants to the highest of either 55 % of salary , or 53 % of salary for 20 years of service , increasing $ 20 per month for each year of service over 20 years , to a maximum additional amount of , $ 100 per month for 25 years of service , and increasing 1 . 25 % for every year of service over 25 years . The minimum benefit for surviving spouses is $ 350 per month . State law requires that in order for a benefit increase to be granted : 1 ) the annual city contribution must equal or exceed the actuarially computed city rate , and , 2 ) there must be enough assets in the fund to cover 100 % of the liabilities for active member contributions and current retired life , plus at least 65 % - ` of liabilities -< forfuture . payments to currently active . members , or current assets must be sufficient to cover 86 % of all accrued actuarial liabilities . PROPOSAL 1 : 55 % of Salary The attached cost valuation of the actuary shows that the proposed benefit to 551 of salary would increase the City ' s required contribution rate of 37 . 5 % to 59 . 5 % of annual payroll or $ 308 , 497 annually . The actual reported City contribution for 1995 was $ 500 , 514 , which does exceed the required employer contribution amount of $ 308 , 497 . • However , further analysis of the proposed benefit increase shows that while the liabilities for active member contributions and current retired life would both remain 100 % funded , the liabilities for currently active members would drop to only 36 % funded . Additionally , current assets would only cover 80 . 3 % of all accrued actuarial liabilities , as opposed to 8611 . Therefore , I cannot grant the proposed increase to 55 "% of final salary . PROPOSAL 2 : 53 % of Salary The attached cost valuation of the actuary shows that the proposed' benefit to 53 °% of salary would increase the City ' s required contribution rate of 37 . 5 % to 50 . 7 % of annual payroll or $ 262 , 905 annually . The actual reported contribution for 1995 was $ 500 , 514 , which does exceed the required annual contribution of $ 262 , 905 . However , further analysis of this proposal shows that while liabilities for active member contributions and current retired life would remain 1000i funded , liabilities for future retirements • would drop to only 4596 funded . Additionally , current assets would only cover 83 . 2 °% of all accrued actuarial liabilities , as opposed to 86 % . Therefore , I cannot grant the proposed increase to 53 % of final salary . Under law , my decisions on benefit increases must be reviewed by the Arkansas Fire and Police Pension Review Board . The next meeting of the Board will be held July 11 , 1996 at its offices in Little Rock . If a representative from your Pension Board of Trustees wishes to attend this meeting to appeal my decision , please let me know in writing . I regret that the results of the valuations were not more favorable . Sincerely , t7yRy' , _ F CathyrnHinshaw Executive Director encls : actuary ' s letters ( 2 ) Osborn , Carreiro & Associates, Inc . ACTUARIES • CONSULTANTS ANALYSTS City of Fayetteville Police Pension Fund PROPOSAL TO INCREASE RETIREMENT BENEFITS The cost of this proposal is calculated using the same methods, assumptions, and data as were used in the December 31 , 1995 actuarial valuation. "Previous benefit provisions" refer to the provisions in effect on December 31 , 1995 . Proposal 1 : Increase the basic formula for policemen from 50% of Final Salary to 55% of Final Salary (the additional amount for service over 20 years is unchanged). Increase After due to Previous Proposal Proposal Normal Cost $ 143,471 $ 156,735 $ 132264 Unfunded Accrued Liab. Active Lives 821165 104,293 22, 128 Retired Lives 0 783588 782588 • Total $ 225,636 $ 339,616 $ 1133980 Less Member Contrib. - 312119 - 312119 0 Net Employer Contrib. $ 194,517 $ 308,497 $ 1132980 Employer Rate 37. 5% 59.5% 22.0% Short Condition Test Portion of Liabilities Computed Actuarial Liabilities Covered by Assets (1) (2) (3) Active Retirees Actives Member and -Employer Valuation (1) (2) (3) Funded Contrib. Inactives Financed Assets Percent Previous 319,728 5,358, 162 2,499,475 7, 1873710 100% 100% 60% 87.9% Proposed 3192728 51862,956 2,766,010 7, 187,710 100% 100% 36% 80.3% Sincerely, ., � Steve Osborn, F. S.A. June 25, 1996 Actuary Osborn , Carreiro & Associates, Inc , ACTUARIES CONSULTANTS • ANALYSTS City of Fayetteville Police Pension Fund PROPOSAL TO INCREASE RETIREMENT BENEFITS The cost of this proposal is calculated using the same methods, assumptions, and data as were used in the December 31, 1995 actuarial valuation. "Previous benefit provisions" refer to the provisions in effect on December 31 , 1995 . Proposal 2: Increase the basic formula for policemen from 50% of Final Salary to 53% of Final Salary (the additional amount for service over 20 years is unchanged). Increase After due to Previous Proposal Proposal Normal Cost $ 1431471 $ 1512429 $ 7,958 Unfunded Accrued Liab. Active Lives 82, 165 95,442 13,277 Retired Lives 0 472153 47, 153 • Total $ 2252636 $ 294,024 $ 68,388 Less Member Contrib. - 31, 119 - 31, 119 0 Net Employer Contrib. $ 194,517 $ 262,905 $ 682388 Employer Rate 37,5% 50.7% 13 .2% Short Condition Test Portion of Liabilities Computed Actuarial Liabilities Covered by Assets (1) (2) (3) Active Retirees Actives Member and -Employer Valuation (1) (2) (3) Funded Contrib. Inactives Financed Assets Percent Previous 319,728 5,3581162 23499,475 7, 187,710 100% 100% 60% 87.9% Proposed 3199728 5011038 22659,396 72187,710 100% 100% 45% 83 .2% Sincerely; Steve Osborn, F. S.A. June 25, 1996 Actuary . June 26, 1996 Mike Kirkland #1 Halsted Circle Suite 5 Rogers, AR 72756 Dear Mike: Thank you for meeting with the Police Pension Board to discuss your recent move to Morgan Keegan. Please find enclosed a copy of the minutes from that meeting. It is the Board's desire that you be advised of several concerns regarding your investment presentations. Although your investment performance has been satisfactory, your presentations have not. The Board feels that your investment presentations lack clarity, organization, and preparation. • The Board requests the following improvements: • Prepare clearer reports that are easier to understand. • Present current information to the Board. • Be better prepared for Pension Board meetings. Thank you for your attention to this matter. We look forward to your presentation at the July 25 meeting. Please note that the meeting has been rescheduled from July 18 at 2:30 p.m. to July 25 at 1 :30 p.m. Please feel free to call any of us if you have any questions. Sincerely, Fayetteville Police Pension Board 0 Morgan Keegan Morgan Keegan & Company, Inc. 3600 Cantrell Road Box 3647 Rock, Arkansas 72203 666-1566 WATS 8001758-4155 Members New York Stock Exchange, Inc. July 03, 1996 Traci Paul 4310 Chaparral Lane Fayetteville, AR 72704 Dear Dr- Mashburn, Thank you for the opportunity to meet with you July 25, 1996 regarding the Madison, TCW, and cash accounts currently at Dean Witter. At the meeting, I intend to clarify the status of each account and give specific recommendations regarding the transfer to Morgan Keegan and the benefits thereof. The president of Morgan Asset Management, Bob Glenn, from our home office in Memphis, • will attend the meeting with me. 1 received a copy of the minutes from the special meeting on June 12, 1996. 1 want to thank you for bringing to my attention your dissatisfaction with my meeting preparation and confusing reports. I always try to make sure my clients understand the condition of their accounts, but I sincerely apologize for not meeting your expectations in this area. Morgan Keegan affords me the opportunity to better serve my clients; that is why I have made this move at this point in my career. The quarterly statements we provide are concise and to the point allowing you to better understand how the portfolios have performed. I look forward to presenting this to you at the July 25th meeting. My dealings with you and the Police Pension Plan are very important to me and 1 fully intend to make, the-necessarv- chanees you are requesting so as to continue our relationship , for years to come. Thank you for your consideration. Sincerely, Mike Kirkland Associate Vice President 800/758-4008 r THE WASHINGTON HACKETT COMPANY' S _ New Frontiers ® Fiduciary Education Retreat ` August 1547, 1996 KNOWLEDGE - � E � � � � � � JW Marriott at Lenox IS THE KEY JUL 0 g 1996 Atlanta, Georgia r1RANCE DEPT . This event continues our "New Strategies" panel which tradition of trustee education in PARTNERS INCLUDE: explores the investment vehicles "plain English." The two-day of the future which many funds retreat combines intense class- The Bank of New York are reaping the benefit of now; a room study with lively panel The Boston Company "Global Investing" panel that discussions and debate to pro- Asset Management, Inc. promises to provide the real low- vide the prudent fiduciary with a Diaz-Verson down on this all-important asset foundation of practical knowl- Capital Investments, Inc. class, and what promises to be a edge. GW Capital, Inc. special concluding forum with Day one's theme is "Who's Highland lnvestinent trustees and sponsors debating on First?", a thorough examina- Group, LP the advisors on the tough ques- tion of the roles of different tions of the day. Invesco Capital Management members of the pension fund The best news of all is that "team" including the consultant, IMC Capital registration for this event is the actuary, the manager, the Managenvent, Inc. absolutely free for trustees, plan custodian, etc. The duties and Lynch & Mayer, Inc. sponsors, and staff. Registration obligations for each are clearly Miller/Howard includes most meals, educational and simply delineated, under- Inveshnents, Inc. materials, and a tour of the scoring our commitment to Peachtree Asset Management Olympic Village. providing in-depth training Als, the nation' without useless and confusingVuong & Company, LLC s always, s top institutional investment-related jargon. firms will serve as our partners in In response to trustee de- this conference, and will be hand, we will introduce a segment on Commis- featured as panelists and speakers. Each "student' sion Recapture, Soft Dollars and Directed Broker- will be provided with a tote bag for convenient aj;e. We will explain who has discretion over storage of seminar materials, and the seminar commissions, the investment managers or the binder, which contains the full presentations of our Board? speakers in addition to glossaries and other educa- Our objective is to create an atmosphere where tional material of the highest level. plirticipants can feel comfortable asking any We've also taken the series into cyberspace. question they would like on any of the subjects. Washington Hackett maintains a site on the World Our presenters are therefore challenged to "make Wide Web, where fiduciaries around the globe can it, plain" until the student says "I understand." In gain immediate and up-to-date access to confer- our seven years of conducting seminars and ence highlights, participants, schedules, and future inferences, this innovative concept in training has plans all from their home or office computer: received the most acclaim. http://www.neosoft.com/~washhack Day two's theme, "Controversy - Let's ask the Call (504) 524-1101 with questions on how you Tough Questions," includes three sessions - a can take part in this exciting event. Fiduciary Responsibility ERISA in plain English. 5:00-7i00 pm Registration The Role of Your Legal Counsel _ 7:00-9:00 pm Opening :Cocktail Reception and Exhibits Investment and benefits policies, disp lobbying governmental (bodies, hiring ...a I !board attorney. B:OO am Registra'tio'n an'd 'Breakfast 4:45-5M ip n 9100 am W elcom'ing 'Remarks Conclusion and presen'ta't'ion o'f certificates of completion. 9:15-17 :45 am What you should expect from adv isors, with the ijargon 'of each advisor explained, The Role of Your -Consultant 8M-9:00 am Breakfast Buffet and Exhibits Asset Allocation, investment policy; 9:00-10:00 am performance measurement, manager search, :trustee education. Can your fund take advantage of en- The Role of Your :Custodian hanced equity strategies that add Value Safekeeping, cash management, settle- and lower risk? ment .of .transactions, record keeping; online access to data, liaison to managers, 10:00-11 :00 am and performance calculations. We've heard .a lot about it, but are the zeal The Role of Your Actuary costs? This session will cover all of the Investment return, assumption rate, hidden costs associated with global DROP plans, benefits impact, etc. investing - currency trading and custody. Does this strategy add value over the long The Role of Your Broker term? Is your 'fund ready 4o take :on ;this Trade execution, listed OTC, new issues, asset class? global, introducing vs. clearing brokers, and ;best execution 11 ."00 am-Noon 'The Role of Your 'Investment (Manager Management styles, hypes, and 'bench= marks, explained . A panel ;of 'trustees Land ;plan sponsors face off with 'a panel rofradv'isors !(consulOnts, 12:001pin Luncheon and Keynote Address .(invited) media, money managers, brokers, law- 'Tr3e HONORABLE MICHAEL H]GIiT.Z?WER vers, actuaries) in La moderated yetinfor- FultoniCounty Commissioner mal debate to tackle such questions as: • 1 :00=2:00 pm How many managers is too many? • When should you .fire a manager? The mechanics of securities lending;'the • W'hat if:any should the limits bein adi:anY.ages, risks, ;onlme services and lobby-ing :tactics — free gifts, trips, performance measurement. meals, .etc? 12:00 pm Luncheon 2:00-3:30 pm 1-:00 pm Tour of ihe .Olympic 8r;illage W'hat .do these terms mean? Whose ' :n , commissionsare they , anyway ? A step- by-step breakdown of the mechanicsiof the "',trade" and of equ'ityand fixed / ,� Ol income trading. L 49� 3 30-5:00 !pm � oo Amex 'lonat'ion ,oftithe r 'htsand res - onsi= i b'ilitiesofihe 'Imstee. g P Atl=al1996� I ttLL�.dii No, [Harr „the. probably lwon!tIlet� ,ouUbetbecue �onIt .... Y. YIP Y ,Y I. TRUSTEE AND PLAN SPONSOR REGISTRATION CARD THE WASHINGTON HACKETT COMPANY'S 611111000000 AZ NEW FRONTIERS FIDUCIARY EDUCATION RETREAT KNOWLEDGE IS THE August 15-17, 1996 ° JW Marriott at Lenox • Atlanta, Georgia If you are interested in attending the New Frontiers Fiduciary Education Retreat, August 15-17 in Atlanta, please fax the completed registration form below to The Washington Hackett Company at (504) 524-1411 no later than 7 / 31 / 96. FUND STREET TEL. FAX CITY STATE ZIP 1. NAME TITLE 2. NAME TITLE 3. NAME TITLE NAME TITLE 5. NAME TITLE 6. NAME TITLE 7. NAME TITLE 8. NAME TITLE ❑ Please confirm registration (NOTE: Retreat attendance is FREE to trustees, plan sponsors and investment staff) ❑ I cannot attend Retreat in August, but please send me information about the upcoming Washington Hackett Company Fiduciary Education Congresses to be held December 5-6 in Cincinnati, Ohio. VENUE: Comments, questions, special requests: JW MARRIOTT HOTEL AT LE X 3300 Lenox Road a Atlanta, GA 30326 Reservations: 1-800-831-4004 FAYETTEVI LLE • THE CITY OF FAYETTEVILLE, ARKANSAS TO: Members of the Police Pension Board Members of the Fire Pension Board FROM : . Denise Land, Accounting Coordinator THROUGH: Ben Mayes , Administrative Services Directorly \ DATE: July 24, 1996 SUBJECT: Internal Revenue Service Tax Deposit Requirements Beginning January 1 , 1997 , the 1993 North American Free Trade Agreement Implementation Act (NAFTA) mandates that businesses making deposits of more than $50,000 in employment 00 taxes make all Federal Tax Deposit (FTD) payments electronically . Since the City of Fayetteville's Police and Fire Pensions operate under a single Federal identification number, the electronic transfer of FTD payments must be made from one checking account. The account so designated is the Payroll Fund account at Boatmen' s Bank. Each month, the amount of Federal income tax withheld from Police and Fire Pension retirees' checks will be transferred from the respective Pension Fund to Payroll . The FTD payment will then be made from the Payroll account and will equal the sum of the Federal income tax withheld from both Police and Fire retirees' checks . If you have any questions, please call me at 575-8288 . 113 WEST MOUNTAIN 72701 501-521 -7700 FAX 501-57578257 t City of Fayetteville, Arkansas \BEN\POLINV Policemen's Pension 8 Relief Fund Asset Allocation — Cost Basis June 30, 1996 Cash & Fixed Peicent? Equivalent Income Equities Total (10-25%) (15-75%) (20-40%) Tote): DEAN WITTER Dean Witter — #18786 $281 ,368 $0 $0 $281 ,368 4%<: Madison Invest. —#15178 267,513 ' 1 ,384,920 0 1 ,652,433 22% TCW — #18922 89,395 589,212 1 ,002,751 1 ,681 ,358 ,...... .. 23%, 59% 48% 46% TOTAL DEAN WITTER 638,275 1 ,974, 132 1 ,002,751 3,615, 158 49W, 41 % 52% 54% LONGER INVESTMENTS, INC. 446,748 2, 132,092 1 ,161 ,221 3,740062 51% , 0% 1 % 0% CITY HELD INVESTMENTS 3,245 21 ,093 0 24,338 TOTAL FUND $1 ,088,268 $4, 127,317 $2, 163,972 $7,379,557 • PERCENT O FTOTAL ' 15% 56% 29% i 100%` • i; hi LONGER INVESTMENTS INCORPORATED City of Fayetteville i Police Pension Board Meeting , July 18, 1996 Longer Investments, Incorporated PORTFOLIO APPRAISAL City of Fayetteville Police Pension Fund Combined Account June 30, 1996 Unit Total Market Market Pct. Unit Annual Cur. Quantity Security Cost Cost Price Value Assets Income Income Yield COMMON STOCK 11650 AT & T 58.03 95,749.25 62.00 102,300.00 2.6 1 .320 2,178.00 2.1 1,500 ADT Limited 13.57 20,355.00 19.00 282500.00 0.7 OA00 0.00 0.0 1,400 Barrick Gold Corp. 19.26 26,968.28 27.12 371975.00 0.9 0.120 168.00 0.4 1 ,100 Bristol Myers Squibb 86.13 945747.32 90.00 99,000.00 2.5 3.000 3,300.00 3.3 1 ,600 Clayton Homes 17.31 27,692.00 20.00 329000.00 0.8 0.080 128.00 0.4 1 ,000 DII Group (Formerly 30.72 30,724.35 25.50 253500.00 0.6 0.000 0.00 0.0 Dovatron Intl.) 1,087 Diebold, Inc. 20.34 22,112.58 48.25 52,447.75 1 .3 0.680 739.16 1 .4 900 Dover Corp. 44.08 39,675.00 46.00 417400.00 1 .0 0.600 540.00 1 .3 900 Emerson Electric 55.07 492564.37 90.37 81,337.50 2.0 1 .960 1 ,764.00 2.2 1,000 Federal Signal 22.50 22,500.00. 23.50 23,500.00 0.6 0.580 580.00 2.5 1,225 General Electric 52.85 642736.02 86.75 106,268.75 2.7 1 .840 27254.00 2. 1 1 ,500 Inco, Ltd. 33.53 50,290.00 32.25 48,375.00 1 .2 0.400 600.00 1 .2 800 Innovezlnc. 23.00 18,400.00 17.62 14,100.00 0.4 0.180 144.00 1 .0 800 Intel Corp 61 .87 49,500.00 73.44 58,750.00 1 .5 0.160 128.00 0.2 1,200 Jacobs Engineering 28.12 33,750.00 26.37 31,650.00 0.8 0.000 0.00 0.0 1,000 Lifeline Systems, Inc. 11 .25 117250.00 13.37 13,375.00 0.3 0.000 0.00 0.0 1,300 Mobil Corp. 101 .76 132,293.00 112.37 146,087.50 3.7 4.000 5,200.00 3.6 . 800 Motorola, Inc. 58.50 : 462800.00 62.75 50,200.00 1 .3 0.400 320.00 0.6 1,200 Northern Trust Corp. 47.38 56,853.08 57.75 69,300.00 1 .7 1 .240 12488.00 2.1 1,000 Periphonics Corp. 24.53 24,529.95 34.00 34,000.00 0.9 0.000 0.00 0.0 850 Personnel Group of 15.06 12,799.58 24.62 20,931 .25 0.5 0.000 0.00 0.0 America 1 ,450 Philip Morris 63.73 922404.52 104.00 150,800.00 3.8 4.000 5,800.00 3.8 1,500 Placer Dome, Inc. 26.44 39,667.50 23.87 35,812.50 0.9 0.300 450.00 1 .3 11063,361 .79 123035610.25 32.6 25,781 . 16 2.0 CORPORATE BONDS 100,000 Philip Mortis 100.54 100,543.50 103.94 103,937.50 2.6 9.250 9,250.00 8.9 (Non-callable) Rated A2/A 9.250 % Due 12-01-97 55,000 Pepsico (Non-callable) 99.31 54,618.30 99.69 54,829.49 1 .4 6.125 3,368.75 6. 1 Rated Al/A 6.125 % Due 01.15-98 140,000 Wal-Mad Stores 101 .83 142,565.75 97.31 136,237.50 3.4 6.500 91100.00 6.7 (Non-callable) Rated AAVAA 6.500 % Due 06-01-03 75,000 J.P. Morgan 99.90 74,925.75 87.00 65,250.00 1 .6 5.750 4,312.50 6.6 (Non-callable) Rated AA3/AA 5.750 % Due 10.15-08 Accrued Interest 3,920.64 0. 1 372,653.30 364,175. 14 9. 1 26,031 .25 7.2 • 1 F• l Longer Investments, Incorporated PORTFOLIO APPRAISAL City of Fayetteville Police Pension Fund Combined Account June 30, 1996 Unit Total Market Market Pct. Unit Annual Cur. Quantity Security Cost Cost Price Value Assets Income Income Yield GOVERNMENTBONDS 200,000 U. S. Treasury Note 99.94 1993884.00 100.09 200,187.50 5.0 6.125 12,250.00 6.1 6.125 % Due 07-31.96 100,000 U. S. Treasury Note 99.96 99,958.00 100.66 100,656.25 2.5 7.250 7,250.00 7.2 7.250 % Due 11-30-96 225,000 U. S. Treasury Note 99.89 2249751.75 100.97 227,179.69 5.7 7.500 16,875.00 7.4 7.500 % Due 12-31-96 150,000 U. S. Treasury Note 99.94 149,910.50 101 .78 152,671 .87 3.8 7.375 115062.50 7.2 7.375 % Due 11-15-97 100,000 U. S. Treasury Note 99.36 99,359.37 100.00 100,000.00 2.5 6.000 61000.00 6.0 6.000 % Due 11-30-97 75,000 U. S. Treasury Note 99.99 74,995.25 98.94 74,203. 12 1 .9 5.250 3,937.50 5.3 5.250 % Due 12-31-97 50,000 U. S. Treasury Note 99.99 493996.00 99.75 497875.00 1 .2 6.000 32000.00 6.0 6.000 % Due 05-31-98 250,000 U. S. Treasury Note 99.93 249,820.00 100.25 2502625.00 6.3 6.250 15,625.00 6.2 6.250 % Due 06-30-98 50,000 U.S. Treasury Note 100.06 502030.00 100.22 50,109.37 1 .3 6.375 3,187.50 6.4 6.375 % Due 05-15-99 50,000 U. S. Treasury Note 99.56 492781 .50 99.28 49,640.62 1 .2 6.250 3,125.00 6.3 • 6.250 % Due 08-31-00 100,000 U. S. Treasury Note 99.00 99,000.00 106.31 106,312.50 2.7 8.000 8,000.00 7.5 8.000 % Due 05-15-01 100,000 U. S. Treasury Note 101.50 1013500.00 99.19 999187.50 2.5 6.375 6,375.00 6.4 6.375 % Due 08-15-02 155;000 U. S. Treasury Note 98.34 152,425.98 103.56 1603521 .87 4.0 7.250 11 ,237.50 7.0 7.250 % Due 05-15-04 50,000 U. S. Treasury Note 99.97 497984.38 107.44 53,718.75 1 .3 7.875 37937.50 7.3 7.875 % Due 11-15-04 50,000 U. S. Treasury Note 99.87 49,937.50 98.50 49,250.00 1 .2 6.500 3,250.00 6.6 6.500 % Due 08-15-05 100,000 U. S. TreasuryNote 100.09 100,093.75 94.16 94,156.25 2.4 5.875 51875.00 6.2 5.875 % Due 11-15-05 50,000 U. S. TreasuryNote 99.83 49,914.06 90.62 459312.50 1 .1 6.250 3,125.00 6.9 6.250 % Due 08-15-23 Accrued Interest 1703.75 0.4 1 ,851 ,342.05 118819301 .56 47. 1 124, 112.50 6.7 GOVERNMENT AGENCY 100,000 Federal Home Loan Bank 100.31 100,312.50 100.09 100,093.75 2.5 6.690 6,690.00 6.7 (Non-callable) 6.690 % Due 05-16-01 60,000 Federal Home Loan Bank 100.06 60,035.00 97.91 58,743.75 1 .5 7.350 41410.00 7.5 (Call 6-14-96 @ 100) 7.350 % Due 06-14-05 Accrued Interest 12013.67 0.0 160,347.50 159,851 . 17 4.0 11 , 100.00 7.0 CASH AND EQUIVALENTS Dividends Accrued 21574.50 2,574.50 0. 1 0.000 0.00 0.0 a 2 r Longer Investments, Incorporated • PORTFOLIO APPRAISAL City of Fayetteville Police Pension Fund Combined Account June 30, 1996 Unit Total Market Market Pct. Unit Annual Cur. Quantity Security Cost Cost Price Value Assets Income Income Yield Money Market 286,830.74 286,830.74 7.2 4.690 13,452.36 4.7 289,405.24 289,405.24 7.2 13,452.36 4.6 TOTAL PORTFOLIO 397379109.88 39998,343.35 100.0 200s477.27 5.0 • 3 F +. r,o Longer Investments, Incorporated PORTFOLIO APPRAISAL City of Fayetteville Police Pension Fund Stock Account June 30, 1996 Unit Total Market Market PM. Unit Annual Cur. Quantity Security Cost Cost Price Value Assets Income Income Yield COMMON STOCK 1,650 AT & T 58.03 95,749.25 - 62.00 102,300.00 4.0 1 .320 2,178.00 2. 1 1,500 ADT Limited 13.57 20,355.00 19.00 28,500.00 1 .1 0.000 0.00 0.0 1,400 Barrick Gold Corp. 19.26 26,968.28 27.12 37,975.00 1 .5 0. 120 168.00 0.4 1 ,100 Bristol Myers Squibb 86.13 942747.32 90.00 992000.00 3.9 3.000 3,300.00 3.3 1 ,600 Clayton Homes 17.31 27,692.00 20.00 32,000.00 1 .3 0.080 128.00 0.4 1,000 DII Group (Formerly 30.72 30,724.35 25.50 25,500.00 1 .0 0.000 0.00 0.0 Dovatron Intl.) 1,087 Diebold, Inc. 20.34 22,112.58 48.25 52,447.75 2.1 0.680 739.16 1 .4 900 Dover Corp. 44.08 399675.00 46.00 41 ,400.00 1 .6 0.600 540.00 1 .3 900 Emerson Electric 55.07 49,564.37 90.37 81 ,337.50 3.2 1 .960 1,764.00 2.2 1,000 Federal Signal 22.50 22,500.00 23.50 232500.00 0.9 0.580 580.00 2.5 1,225 General Electric 52.85 647736.02 86.75 106,268.75 4.2 1 .840 2,254.00 2.1 1,500 Inco, Ltd. 33.53 5%290.00 32.25 48,375.00 1 .9 0.400 600.00 1 .2 800 InnovexInc. 23.00 18,400.00 17.62 14,100.00 0.6 0.180 144.00 1 .0 800 Intel Corp 61 .87 49,500.00 73.44 587750.00 2.3 0.160 128.00 0.2 1 ,200 Jacobs Engineering 28.12 33,750.00 26.37 319650.00 1 .2 0.000 0.00 0.0 1 ,000 Lifeline Systems, Inc. 11 .25 11 ,250.00 13.37 13 75.00 0.5 0.000 0.00 0.0 1 ,300 Mobil Corp. 101 .76 1327293.00 112.37 146,087.50 5.7 4.000 5,200.00 3.6 800 Motorola, Inc. 58.50 46,800.00 62.75 50,200.00 2.0 0.400 320.00 0.6 1 ,200 Northern Trust Corp. 47.38 56,853.08 57.75 69,300.00 2.7 1 .240 19488.00 2.1 1 ,000 Periphonics Corp. 24.53 245529.95 34.00 34,000.00 1 .3 0.000 0.00 0.0 850 Personnel Group of 15.06 12,799.58 24.62 20,931 .25 0.8 0.000 0.00 0.0 America 1 ,450 Philip Morris 63.73 92,404.52 104.00 150,800.00 5.9 4.000 5,800.00 3.8 1 ,500 Placer Dome, Inc. 26.44 392667.50 23.87 352812.50 1 .4 0.300 450.00 1 .3 1 ,0631361 .79 1 ,303,610.25 51 .2 25,781 . 16 2.0 GOVERNMENTBONDS 125,000 U. S. Treasury Note 99.88 124,853.75 100.97 126,210.94 5.0 7.500 91375.00 7.4 7.500 % Due 12-31-96 50,000 U. S. Treasury Note 99.96 49,978.50 101.78 50,890.62 2.0 7.375 35687.50 7.2 7.375 % Due 11-15.97 100,000 U. S. Treasury Note 99.36 992359.37 100.00 10%000.00 3.9 6.000 67000.00 6.0 6.000 % Due 11-30-97 50,000 U. S. Treasury Note 99.99 49,996.00 99.75 497875.00 2.0 6.000 32000.00 6.0 6.000 % Due 05-31-98 250,000 U. S. Treasury Note 99.93 249,820.00 100.25 250,625.00 9.8 6.250 15,625.00 6.2 6.250 % Due 06-30-98 50,000 U.S. Treasury Note 100.06 5%030.00 100.22 5%109.37 2.0 6.375 31187.50 6.4 6.375 % Due 05-15-99 100,000 U. S. Treasury Note 101 .50 101 ,500.00 99.19 999187.50 3.9 6.375 6,375.00 6.4 6.375 % Due 08.15-02 110,000 U. S. Treasury Note 97.95 107,747.48 103.56 113,918.75 4.5 7.250 7,975.00 7.0 7.250 % Due 05-15-04 50,000 U. S. Treasury Note 99.97 49,984.38 107.44 53,718.75 2. 1 7.875 32937.50 7.3 7.875 % Due 11-15-04 1 i Longer Investments, Incorporated PORTFOLIO APPRAISAL City of Fayetteville Police Pension Fund Stock Account June 30, 1996 Unit Total Market Market Pet. Unit Annual Cur. Quantity Security Cost Cost Price Value Assets Income Income Yield Accnred Interest 5,489.06 0.2 883,269.48 900,025.00 35.4 593162.50 6.6 GOVERNMENT AGENCY 100,000 Federal Home Loan Bank 100.31 100 12.50 100.09 100,093.75 3.9 6.690 6,690.00 6.7 (Non-callable) 6.690 % Due 05-16-01 Accrued Interest 817.67 0.0 100,312.50 100,911 .42 4.0 62690.00 6.7 CASH AND EQUIVALENTS Dividends Accrued 2,574.50 2,574.50 0. 1 0.000 0.00 0.0 Money Market 238,644.55 238,644.55 9.4 4.690 11,192.43 4.7 241 ,219.05 241 ,219.05 9.5 11 ,192.43 4.6 TOTAL PORTFOLIO 2,2889162.83 295459765.72 100.0 102,826.09 4.0 • 2