HomeMy WebLinkAbout1997-04-14 - 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 : April 14 , 1997
SUBJECT : POLICE PENSION BOARD MEETING
The next Police Pension Board meeting is Thursday , April 17 , 1997 ,
at 1 : 00 p . m . , in room 326 of City Hall . Attached , please find a
copy of the agenda for the upcoming meeting , the minutes from the
October 17 and the January 16 regular meetings , the minutes from
the February 27 and the April 3 special meetings , and the pension
lists for April and May .
Attachments
113 WEST MOUNTAIN 72701 501 575-8323
AGENDA
POLICEMEN ' S PENSION AND RELIEF BOARD
April 17 , 199 $
1 : 00 P . M .
City Hall Room 326
1 . Approval of the minutes of the following meetings :
• October 17 , 1996 regular meeting
• January 16 , 1997 regular meeting
• February 27 , 1997 special meeting
• April 3 , 1997 special meeting
2 . Investment Reports
A . Report from Elaine Longer , Longer Investments
B . Report from Jim Wood , Dean Witter 1 - `
• C . Report from Mike Kirkland , Morgan Keegan and a
manager from Flippin , Bruce and Porter .
3 . Old Business
4 . New Business
5 . Adjournment
• MINUTES OF A POLICE PENSION BOARD MEETING
A meeting of the Police Pension Board was held on October 17 , 1996
at 2 : 30 p . m . in room 326 of the City Administration Building , 113
West Mountain , Fayetteville , Arkansas .
PRESENT : Mayor Fred Hanna , Eldon Roberts , Hollis Spencer , Dr .
James Mashburn , Randy Bradley , and City Clerk/Treasurer
Traci Paul
ABSENT: Jerry Friend
CALL TO ORDER
The meeting was called to order by Mayor Hanna .
MINUTES
Mashburn moved to accept the minutes of the July 25 , regular
meeting . Roberts seconded . The motion passed unanimously .
OLD BUSINESS
Discussion of Dean Witter /Morgan Keegan Issue
Mayor Hanna stated the Board has explained to Mike what is
expected . Mayor Hanna suggested that the Board should watch for
the kinds of reports Mike brings forward for two or three meetings
to see if they are satisfactory . Mayor Hanna stated there were no
complaints about results , it was the lack of communication .
Roberts asked if the Board was going to make a decision now or wait
until after the investment reports are given .
Administrative Services Director Ben Mayes suggested the Board
might want to hear from Mr . Wood , Ms . Longer , and Mr . Kirkland
before a decision is made . . Mayes stated Jim Wood from Dean Witter
is very interested in keeping the Board ' s business and he wants to
tell the Board that . Mike Kirkland is here and he knows the
decision to hear him again or not is the Board ' s . Mike Kirkland
and Jim Wood both have specific recommendations to present to the
Board .
Roberts asked if it would be appropriate to take the TCW account
and let Mike have it and keep Madison with Dean Witter .
In answer to a question from Roberts , Mayes stated the cost basis
amount for TCW is $ 1 , 677 , 000 and $ 1 , 678 , 000 for Madison . There are
some CD ' s that we left at Dean Witter which total $ 280 , 000 . We
told them to hang on to those as a cash flow back up . They have
• matured . The cost basis amount for Longer is $ 3 , 810 , 000 .
� 1
October 17 , 1996
• Mayes stated Jim Wood and Elaine Longer are listed on the agenda
and will be giving their investment reports . The third thing
listed on the agenda is the turnback check . The Board has $ 155 , 000
available to invest .
Bradley asked if the Board needs to do something with the $ 280 , 000
today .
Mayes stated yes . That has always been readily available because
you never know who is going to retire or when they are going to
retire . It has been the practice to keep about three months worth
of pension payments . The amount has grown .
The Board decided to hear from all three managers .
NEW BUSINESS
Mayes distributed a cost basis summary for the Policemen ' s Pension
& Relief Fund .
Presentation by Mike Kirkland , Morgan Keegan
Mike Kirkland thanked the Board for allowing him to speak for a few
minutes . Kirkland reported to the Board that he was pleased with
• his move to Morgan Keegan .
Kirkland stated many times in the past the Board has asked " If this
were your money , what would you do ? " Kirkland explained to the
Board that is exactly what he is going to do .
Kirkland explained to the Board what he would do with the $ 1 . 9
million dollars in the TCW account at Dean Witter . Kirkland stated
about $ 600 , 000 of the $ 1 . 9 million is bonds . The Board is being
charged 1 . 71 for the management of the bonds . First , the $ 600 , 000
? should be placed in the cash account . Then the Board would not be
charged $ 10 , 000 per year on t at money . Right now interest rates
are low so you are not going to be buying long term bonds .
Kirkland suggested laddering maturities . Generally , balanced
managers are not going to add much value on the fixed income side .
They are more interested in the equity side . TCW has maturities
every year from 1996 to 2005 . You are paying them $ 10 , 000 per year
to ladder maturities . Kirkland stated Morgan Keegan and I want to
do that . There is no charge to do that . You save $ 10 , 000 per
year . If things were maturing every six months , you could keep
less in cash , earn . a little more interest and still have cash needs
met . Right now there is $ 285 , 000 in the cash account , some of
which can be used in this laddering . So the Board would save money
by removing it from under that balanced umbrella .
• '
, 2
r
October 17 , 1996
That would bring the account down to about $ 1 . 3 million . With the
other . $ 1 . 2 million , I would look at two equity money managers that
we recommend NWQ and Flippin , Bruce , & Porter . Split the $ 1 . 2
million between the two . The fee on the $ 1 . 9 million would be
reduced to about $ 1 . 1 % . With the rates the way they are , it is a
smart thing to do . TCW is charging you just to let those bonds sit
there and mature . They are not going to sell those bonds if rates
go back up because the price is going to go down . They are going
to hold them to maturity . Their yield would look bad if they sold
them at a loss . Kirkland suggested carving out that piece out of
that particular balanced account and ladder the maturities . As a
part of the overall portfolio , if Elaine is doing that and she is
charging you a fee , you could move some of that over here .
Kirkland stated he would charge $ 5 per thousand to buy the bonds .
If you are being charged $ 10 , 000 per year and you have got $ 100 , 000
maturing every six months , that would be $ 1 , 000 per year in
purchasing new bonds compared to $ 10 , 000 per year . The price is
included in the cost . That would enable us to buy CD ' s , government
agencies , treasuries , and corporate bonds , just like Madison , TCW ,
and Elaine are doing . In the fixed income side of this whole
picture , if there is not really that much value being added , it is
not fair that you are being charged an annual fee just to buy
another bond after one matures .
• Leave the Madison money alone . They are fairly short term managers
anyway . Their charge is very reasonable .
Kirkland suggested keeping the bonds just how they are . Kirkland
stated do not sell anything except maybe the long term bond . Bonds
maturing in eight or nine years could be reviewed to determine if
they are too far out . Right now it would be better to be shorter
than longer anyway as low as rates are . We could do a one to five
year ladder , a one to seven year ladder and have them maturing
every six months or every year . You would have money hitting the
account practically every month from interest and you would have
money maturing regularly also .
In response to a question from Roberts , Kirkland stated the
exposure in the equity market would not ;be increased . It would
just be split between two managers .
In answer to a question from Mayes , Kirkland stated there was no
charge to move that stock .
In answer to a question from Mayes , Kirkland stated with this much
money with the way the market is , he would like to spread the risk
out a little more . If you moved Madison and the TCW and the cash
account to Morgan Keegan , you would have four accounts . We could
still encompass Elaine ' s numbers into the information provided to
the Board .
3
i
• a0ctober -17• — 1__9'96
Mike Kirkland left the meeting .
Roberts stated the guidelines state that we can go to 409; equity
exposure . We are only at 291 . For us to make more money , we are
going to have to get more exposure in the equity market .
Bradley agreed .
Mayor Hanna asked if it is a good time to increase exposure .
Roberts stated he feels comfortable with the double diversification
suggested by Kirkland along with Elaine ' s .
Roberts suggested with the amount of money in the fund , it might ' do
better with a little more risk . The guidelines are set at a max of
401 on equities and we are only running at 290 .
Mayes stated we have been up to 38996 - 396 one time . Typically we are
around 32 % .
Bradley stated we are going to have to increase the risk a little
bit .
The Board discussed asking Elaine Longer to increase the risk in
• equities .
Roberts stated Elaine could go over 401 and still stay within the
guidelines because it is averaged with the other managers .
Mayes stated on June 30 , we had 291 total in equities and on March
31 , we were at 33 % in equities . Mayes read the numbers for several
other 'months and stated we have been consistently in the low
thirties .
Mashburn suggested the Board should give Elaine Longer the
opportunity to increase it at her discretion .
Roberts stated the Board could change the investment guidelines and
increase the max for equities to 45 % .
INVESTMENT REPORTS
Longer Investments
Elaine Longer distributed various investment reports. Longer
stated equities as a percent of everything are about 38 °% .
Corporate Bonds are about 9 % of total and treasuries are about 47 °% .
Longer stated there are a couple of treasuries maturing in the next
• quarter . Those funds will be reinvested .
4
I
• I t0 17 , - 1996'
The total portfolio value on September 30 , is $ 4 . 1 million .
In reviewing the stock portfolio , Longer stated going into next
year the best area of the market is going to be the intermediate
size companies .
Longer briefly reviewed the bond portfolio , the mid month report ,
the list of largest holdings , the report of portfolio parameters ,
and other distributed reports .
Mashburn asked how to determine when it is time to get out of a
stock .
Longer stated we look at the multiples relative to the growth
rates . As long as the growth rate is still growing we will stay in
the stock .
In answer to a question from Mashburn , Longer stated equities are
more attractive now relative to the current market interest rate
environment .
Roberts stated the Board has determined that the fund is not
growing at a fast enough pace . One of the reasons the Board
discussed the issue was that we were not granted a benefit
• increase . We are not strong enough . We ' ve determined we need to
do something to increase our growth . We have been kicking the idea
around of more equities . Roberts asked what Longer would do if . the
assets were hers .
Longer stated given the Board ' s portfolio objectives , you have not
been too conservative . If the objectives change , then the Board
would have to start allocating more on the equity side .
In response to a question from Roberts , Longer stated at this
point if she had more money available to her she would go with the
equity side . New cash that comes in or maturities coming up in
this quarter could be appropriately applied to build up that growth
component .
Roberts asked if it is true that historically , the stock market is
where the money is made .
Longer stated over long periods of time , it is 10 % on average
return . Your only financial asset that provides you with growth in
excess of the inflation rate over a long period of time is stocks .
In the past two years , we have achieved five times the average
annual return in the stock market . If you change your mix , do it
J udiciously at this point . Longer stated she would be happy to sit
down with the Board and go over all the steps to develop an
• investment plan .
5
• +October 17 , 1'996
Mashburn stated the Board wants to give room to work to increase
the amount of return .
Longer stated even though the expected return has been 6 . 25 % , the
average annual return has been 8 . 49s in a real conservative
structure . The Board has bettered the expected return by about 33 %
without really taking on too much risk . As you look going forward ,
focus on the downside .
Roberts stated the Board ' s idea is to increase the exposure in
equities and asked if Longer had any other ideas .
Longer stated that is the Board ' s best option . If the Board wants
to increase the rate of return over a long period of time , the way
to do it is increase the equity exposure .
Longer stated we are always weighing the relative attractiveness
between bonds and stocks and we are pretty good at that because we
manage both sides . Longer explained that she planned to use the
cash reserves that will be maturing in November and December on the
equity side .
Longer stated everything we do comes from the client and what the
investment objectives are and the client ' s risk tolerance and how
• much downside risk the .client is willing to accept . If the Board
changes its policy to a little more aggressive stance , we can
accommodate it .
In response to comments from Mashburn , Roberts explained that the
total exposure to the equity market is 30k . Roberts stated the
percentages are averaged between money managers .
Roberts asked if Longer thought that having 301 of the total assets
invested in equities is too light .
Longer stated the Board could probably take more risk than that
because there is so much of the portfolio that will be relatively
stable .
Mayes stated equities are at 301 on a cost basis . It would
probably be at 35 % on a market basis .
Mayes stated the actuary study done in 1990 says that we had to
earn 61 average annual interest to be actuarialy sound by the year
2003 which was required by law . We are ahead of where we projected
we would be .
Roberts stated the rules for actuarial soundness have changed . We
are actuarialy sound now .
• 6
. f"'Cctober -1 1996
Mayes stated the reason we came up with the 6 % figure was to
satisfy State law . If you are not actuarialy sound by 2003 you
turn it over to the State .
Mayes stated Longer manages approximately 50 % of what is in the
plan . Mayes asked Longer if , from a diversification standpoint ,
she felt uncomfortable taking more money .
Longer stated she did not .
Mashburn asked if Longer would be willing to sit down and discuss
possible changes to the investment policy .
Longer stated she would review the policy with the Board . It is
good to look at the policy and reassess what the goals are .
Longer suggested the Board determine the average age of the work
force that participates in the plan .
Mayes stated that was done by the actuary in 1990 .
Presentation by Jim Wood , Dean Witter
Jim Wood , Dean Witter , distributed and reviewed a list of the
• reasons the Board chose to do business with Dean Witter back in
1989 .
Wood stated the TCW account was about approximately 2 % for the
quarter . July was a difficult month so 2 % is o . k . The account
value is $ 1 , 927 , 487 . Stocks make up 64 % of that , 3 . 4 % is in cash
and the rest is in government and high grade corporate bonds .
Wood stated TCW has made a change in how they are managing their
equity and their balanced portfolio . They had imposed some
constraints on themselves that limited how well their performance
was . Wood explained that they have made some changes affective
October 1 and the account is up pretty good this month .
The first half of this year , this modified program was up 12 . 5 % .
The current one , what you have been in , was up 8 % on the equity
side . The results on the stock side from TCW should be better .
Wood reviewed the Balanced Portfolio Strategy report as of June 30 ,
1996 .
Wood stated he could bring in someone from the management firms for
the next meeting .
• 7
• c t o b d', 17_—_1_9T96 :
Mayor Hanna suggested the Board have a short meeting on October 24
to discuss the information given to them today . Mayor Hanna stated
the next regularly scheduled meeting will be the third Thursday in
January .
Wood distributed a current report on the Madison account .
Wood stated the market expects Bill Clinton to be reelected and
expects the Republicans to maintain control of congress . If either
of those do not happen there will probably be some short term
ramifications .
Wood stated he understands that Elaine Longer manages big cap
stocks like TCW does . The Board might want to consider a smaller
amount of money with some managers that are doing something a
little bit different . Wood suggested bringing something to the
table that the Board is not doing . Wood stated a representative
from Insight Capital Research and Management would be here on
November 14 if members of the Board wanted to come over for a
presentation .
Bradley asked Wood if this was his money what would he do to
increase it .
• Wood stated Dean Witter is probably using the same type stocks that
Elaine Longer is using . Wood stated he would reallocate some money
into some newer , faster growing companies . There are also some
international things the Board might want to look at .
Jim Wood left the meeting .
Mayor Hanna stated the Board needs to meet again next week to
discuss this issue further .
The Board decided to meet on Thursday , October 24 , at 10 : 00 a . m .
without any money managers present .
The meeting adjourned at 4 : 35 p . m .
• 8
. MINUTES OF A POLICE PENSION BOARD MEETING
A meeting of the Police Pension Board was held on January 16 ,
1997 , at 1 : 00 p . m . in room 326 of the City Administration
Building , 113 West Mountain , Fayetteville , Arkansas .
PRESENT : Mayor Fred Hanna ( arrived late ) , Eldon Roberts , Jerry
Friend , Randy Bradley , Dr . James Mashburn , City
Clerk/Treasurer Traci Paul , and Administrative Services
Director Ben Mayes .
ABSENT : Hollis Spencer:
CALL TO ORDER
The meeting was called to order by Eldon Roberts .
MINUTES
Mashburn , seconded by Friend , made a motion to approve the
minutes of the October 24 , 1996 regular meeting . The motion
passed unanimously .
OLD BUSINESS
DISCUSSION OF 1990 PENSION PLAN PROJECTION
• Roberts asked if the total on the monthly balance sheet on the
Pension Plan reflects cost or market value .
Administrative Services Director Ben Mayes stated it reflects
cost .
Roberts stated the balance sheet he received in November showed
the plan at $ 8 , 078 , 000 .
Roberts explained that in 1990 the actuary in Little Rock
projected that the plan should be at $ 6 , 800 , 760 in 1996 .
Mayes read from the 1990 report stating " a 696 net investment
return will fund the plan . The result would indicate that a
conservative investment strategy would be in order . " He stated
the last investment policy was based on this report . The plan is
$2 million over what the actuary projected it to be . That means
it is prudent to look at the investment policy again .
Mashburn pointed out that the Board had given some raises .
Roberts stated only mandated raises . Roberts expressed his
opposition to the bottom people getting a raise every time .
• 1
• January 16 , 1997
Bradley stated some the those people may be getting close to
receiving 100 % . They cannot exceed 100 % .
Roberts stated before' long it will not be a problem unless they
keep raising the minimum benefit . Roberts stated the Board
should send a letter to Little Rock if any legislation is
proposed to increase the minimum benefit .
Mayes distributed copies of the Policemen ' s Pension & Relief Fund
Plan Projection that was prepared in 1991 . Roberts stated
projections are listed through the year 2029 .
NEW BUSINESS
INVESTMENT REPORTS FROM DEAN WITTER & MORGAN KEEGAN
Roberts stated Mike Kirkland from Morgan Keegan distributed a
report for the Board to review .
In answer to a question from Roberts , Mayes stated he had not
received anything in writing from Jim Wood at Dean Witter .
FUNERAL EXPENSE BENEFITS
. Roberts stated the Board needs some clarification on an issue .
He explained that the information cannot be located in the
minutes from past Board meetings .
Roberts explained he was appointed to the Police Pension Board in
1981 . Roberts stated at that time , the funeral expense benefit
was $ 100 per death paid to the spouse of the deceased policeman .
Roberts stated after 1981 the Board approved an increase of the
funeral expense benefit to $ 200 . Bernice Hutchens was only paid
$ 100 . Now the Board needs to deal with the deaths of Bobby
Williams and Lloyd Little .
Mashburn stated he thought he remembered approving the increase .
Roberts explained he remembered making the motion . Roberts
stated he didn ' t feel like $ 200 was out of line . The law reads
that the Board can set any amount they desire . It does need to
be a consistent amount going to everyone .
In answer to a question from Mashburn , Roberts stated for
clarification the Board should approve the increase again . We
have three people to deal with . Bernice Hutchens should be given
another $ 100 . A funeral expense benefit has not been given to
Bobby Williams ' wife or Lloyd Little ' s wife yet . Roberts stated
the benefit is given to the officer ' s wife if she is still
• living . It is not passed on to the kids .
2
. January 16 , 1997
Mashburn inquired about the legalities of approving the increase
and making it retroactive .
Roberts stated the law does not address the issue of making the
increase retroactive ; it just says the Board can meet and decide
what the funeral expense benefit will be .
In answer to a question from Friend , Roberts stated Southern died
before Hutchens . Southern ' s wife should have received $ 200 . The
funeral expense benefit increase was done in the early eighties .
Accounting has not been able to locate any records to verify what
Mrs . Southern received .
In answer to a question from Roberts , Paul explained she could
not find anything in the minutes to verify the increase in the
funeral expense benefit .
Bradley stated the Board could approve the increase and make it
retroactive to Clint Hutchens ' death . After some discussion
about the date Clint Hutchens passed away , Roberts stated the
Accounting Division has a record of Bernice Hutchens only
receiving $ 100 for funeral expenses .
Roberts explained that he talked to Bobby ' s wife on the phone and
• told her she would be receiving $ 200 for funeral expenses .
Roberts stated retired police officer Lloyd Little just passed
away on Sunday . Roberts explained he had not talked to any
family member about Little ' s funeral expense benefit .
Roberts asked for input from the Board .
Bradley stated if you and Dr . Mashburn are convinced that it was
approved , we should just make a motion to pay Bernice Hutchens
$ 100 , $ 200 to Pat Little and $ 200 to Mrs . Williams .
Paul stated we have not been able to find any back up that
verifies that the increase was approved . The Accounting Division
needs verification . The Board should vote on the increase .
Bradley made a motion that the Board pay a $ 200 death benefit and
make it retroactive to Clint Hutchens ' death . Mashburn seconded
the motion .
Roberts stated there has been a motion that we pay $ 200 death
benefit to the spouse of a deceased police officer from this
point on and that we retroactive $ 100 to Bernice Hutchens .
The motion passed unanimously .
• 3
. January 16 , 1997
Roberts asked Paul to get the information to Denise Land in
Accounting . Roberts stated Clint Hutchens ' wife needs to get
$ 100 . Lloyd Little ' s wife Pat should receive $ 200 and Joyce
Williams should receive $ 200 .
INVESTMENT REPORT FROM ELAINE LONGER
Elaine Longer explained she reviewed the annual reports for the
City , the actuary report , reports from the other managers , the
age of participants and all the information she received .
Longer gave a summary of the fund . Longer stated investment
returns are not available from other managers from account
inception . She recommended the Board require sound reports from
other managers that link returns quarterly and annually .
The Board briefly discussed their desire for better reports from
the other managers .
Longer stated the Board should require quarterly accountings of
performance by asset category . You should know what your
equities are doing , what your bonds are doing and you should know
what your total return is doing net of all expenses . The Board
should be able to secure from the other managers a length
• quarterly rate of return from account inception . The managers
should at least comply with S . E . C . standards on reporting .
In response to comments from Roberts , Mayes stated Mike Kirkland
does usually give that information . Some of it is given verbally
at the meetings . The investment policy states exactly what the
managers are supposed to report to -the Board .
Friend asked if Longer Investments provides a service where she
could be the head manager and the other managers could send
reports to her .
Longer stated that service is available . The Board would be
charged an accounting fee . Longer explained that their systems
have the capability of linking multiple accounts into one report .
Mashburn suggested the other managers could submit their reports
to Longer Investments a minimum of two weeks before the meeting .
Longer explained that receiving a monthly statement from the
other managers should be satisfactory .
Longer recommended redoing 1996 through year end .
Robert asked how much the accounting fee would be .
• 4
• January 16 , 1997
Longer stated she would need to determine the time that would be
involved .
Roberts asked Longer to report to the Board with the proposed
amount when it was determined .
Mayes reminded the Board that this concept had been proposed by
Mike Kirkland also .
In response to a comment from Mashburn , Mayes stated he gets
monthly statements and he could forward copies to Elaine . It
. would be better if the manager mailed them directly to Elaine .
Longer stated the policy sets a maximum of 40 % for equities . It
seems like the fund is mid ranging at about 30 % . If the desired
target is 40 % , the range should be changed to 35 % to 50 % . Longer
stated as of November 30 , 1996 the whole plan was 34 % equities ,
57 % bonds and 10 % cash .
Longer reviewed the asset structure for each manager . She stated
the bond portfolio at Dean Witter was a very nice portfolio .
Longer stated it would be helpful if the Board could arrive at
what the asset allocation is going to be and then dictate
. structure to each manager . She suggested the Board could keep
Dean Witter at 100 % bonds , have Morgan Keegan at 70 % - 100 % stocks ,
and have Longer Investments at 35 % - 50 % equities and the rest in
bonds . She stated if everyone is operating within the ranges
given the whole plan will be running 35 % - 50 % equities and the
rest bonds .
Mashburn stated Mike Kirkland has just recently moved to Morgan
Keegan . The Board has not had any experience with them . He
explained he felt uncomfortable turning over 100 % stocks to a
company the Board had no experience with .
In answer to a question from Roberts , Mayes stated Madison ' s goal
is to stay almost entirely in fixed income .
Longer asked what kind of expense ratio the Board was paying .
She stated a wrap fee on a bond portfolio is way too much .
Mayes stated we had a wrap fee when it was a balanced account but
now that it is just all fixed income , Elaine is saying that is
probably too high .
Mashburn stated the Board is going through Dean Witter to buy
Madison . He asked if there has to be a middle man .
• 5
• January 16 , 1997
Longer stated the only expenses she could find was on TCW . TCW
was billing the portfolio a 1 . 85 % expense ratio . That does not
pay Mike Kirkland anything . Longer stated she wondered if there
was another fee on top of the fee that the manager charges to the
account so that you are paying more than 1 . 85 % .
The Board discussed fees and how they are charged . It was
determined that Madison charges the account and Dean Witter is
paid by Madison . Longer stated the TCW fee was 1 . 85 . Mayes
stated he thought the Madison .fee was less than that .
Longer cautioned the Board about fees on a bond fund . She stated
there is just not that much to make it back . You want to be
making at least 6 % on the bonds net of expenses .
Longer stated we do custody , plus ., management plus all commissions
are about a 1 . 6 % overall and that includes all the expenses . .
Longer reviewed the pension plan assumptions .
Longer reviewed the age of the plan participants . She stated the
retirees are 77 % of the total plan and the active members make up '
23 % . The overall active plus retiree average age is 58 . The
Board has a fairly older group of participants to provide for
• which explains why the investment policy is - so conservative . In
your plan the income needs really are not there yet because you
still have excess revenues over expenditures . As more and more
of the actives retire , cash outflows are going to exceed inflows .
At that point in time liquidity needs would have to be addressed
in the policy .
Mayes stated the actuary computed that by the end of 2003 , if the
fund was earning a 61 return , the return on that investment had
to be sufficient to pay everybody out for the rest of the period .
Longer questioned what was driving the Board ' s desire to change
the investment policy . Longer stated the return objective was 6 %
in your prior policy . You are making about 8 . 5 % . That has been
within a pretty conservative portfolio structure . Longer
explained that the Board has done a good job . Longer asked for
the Board ' s investment goal going forward . Longer asked Mayes
what is the fall back position in the event% of a big market
decline .
Mashburn suggested that leaving the policy as it is , might be a
good idea .
Roberts stated if we leave it as it is , we may be hampering the
I
nvestors ' ability to do better .
• 6
• January 16 , 1997
Longer asked if the Board wanted a midpoint of 40 % in equities
rather than a maximum of 40 % .
Roberts stated that has been suggested by members of the Board .
The Board discussed their concern that each manager is doing
their own thing with little communication .
Mayes stated the Board has done a fantastic job . From 1990 to
1996 , the fund has gone from $ 4 . 6 million to $ 8 . 4 million on
market value . On a market basis , the equity was at 40 . 31; at the
end of 1996 , 39 . 1 % at the end of 1995 , and 31 . 9 % at the end of
1994 . At the end of 1993 , the equity was 42 . 7 °% which is above
what the policy said . The fund has not been that far off the
policy . The policy says 201 to 40 % but we were all thinking 40 % .
If the Board wants to maintain closer to 40 % , it should be set up
that way .
Longer stated if you define the range and you say , for instance ,
to Mike 70 % to 100 °% , that gives their portfolio managers the
flexibility to raise up to 301 cash .
Longer stated in looking at the returns and the objective in the
policy , the Board is doing a good job on what it set out to do .
• Looking at the Efficient Frontier , the lowest risk portfolio is a
40 % stocks - 60 % bond portfolio , even less risk than 100 °% bonds .
Longer stated given the age of your work force and the actuarial
returns that you have to shoot for , the fund is right exactly
where she would recommend . The only question is if you want 40 %
to be the midpoint instead of the maximum .
Mashburn stated he liked the idea of going to a 35 % to 50 °; range .
Roberts stated if the investment policy is set at 351 to 50 % it
does not mean that for every year we are going to have 50 % in
equities .
Longer stated for the Board to be at 50 % , if you dictate to the
managers as recommended , Morgan Keegan would have to be at 100 %
the same time she was at 50 % . That is highly unlikely .
Roberts asked if 50 % equities looks out of touch in reality .
Longer stated it is not too risky but the Board probably does not
want 50 % to be the midpoint . Longer suggested that the Board
could set the range at 35 % to 45 % .
The Board discussed their options in setting the equity range .
• 7
• January 16 , 1997
Longer stated when you decide what the asset allocation is going
to be , then you need to decide what - Dean Witter is to do and what
Morgan Keegan is to do and then Longer Investments can back into
what the guidelines would be .
Longer stated when you incorporate international stocks into a
mix with U . S . equities , you can actually increase your equity
exposure and decrease your risk . at the same time . Foreign
markets are not perfectly correlated with U . S . markets . The
Board briefly discussed the Foreign market .
In answer to a question from . Friend , Longer stated the policy
says that you can ' t trade them unless they are available in
exchange traded ADR ' s . Anything that .would be a Foreign stock
that is not exchange traded would have to have prior approval by
the Board .
The Board discussed the details of investing in international
stocks . Longer explained that if the Board ever wanted to take
this step , there are easy ways to do it . It is a simple
allocation decision . It is easy to execute a 51 exposure to the
international market .
Longer; stated the policy sets maximum exposure to any one equity
o
• of 206 f the total portfolio or 51 of equity portfolio . Two
percent of the total portfolio is $ 160 , 000 . Longer explained she
has three stocks , Bristol Myers , Emerson , and Mobile , that
because of appreciation , have now exceeded 21 of the total
portfolio that they manage . Longer suggested the Board could set
a minimum and maximum per manager . Longer explained she did not
think 21 of the total is too small but it is hard to know if you
are exceeding that amount without knowing what everyone else
holds .
After some discussion , Longer and the Board determined that
because there would be consolidated accounting the policy would
not need to be changed . Longer explained that for each Pension
Board meeting they will do a consolidated accounting report .
Roberts suggested increasing the maximum exposure to any one
equity .
Longer explained that it should be increased since the range is
going to be changed . Longer explained that it would need to be
changed to 2 . 51 . 4
Roberts asked if the Board makes changes in the Morgan Keegan
account and requires them to be 501 equities and 501 fixed income
would they have to go out and look for another manager .
• 8
• January 16 , 1997
Mayes stated they probably would .
Roberts stated NWQ does equities only .
In answer to a question from Friend , Longer stated there is more
return potential in equities . There will be some years when
bonds outperform stocks .
The Board discussed allocation possibilities .
In response to comments from members of the Board , Longer stated
Morgan Keegan is at 75 % equities and 25 % bonds . The Board
discussed options with Morgan Keegan .
Mayor Hanna arrived .
The Board discussed different ways they could tailor the
investment policy for each manager .
Mashburn stated Dean Witter will stay 1000 fixed assets . Morgan
Keegan will have up to 75 % in equities and 25 % in fixed assets .
Longer asked if the Board was comfortable with the 35 % to 500s
equities range or if they wanted to make it 35 % to 4516 .
• The Board decided that with the other managers reporting to
Longer , they wanted the range to be 35 % to 50 % .
The Board decided that in limiting the other managers , they would
not need to limit Longer because her limit would be what is left
to manage to see that the whole thing fits the parameters .
In answer to a question from Mashburn , Mayes stated the policy
says the long term goals realize a minimum annual absolute rate
of return equal to a weighted average income yield of funds total
portfolio of 6 % to satisfy the actuarial projections .
Longer stated the way the policy is written , the minimum annual
absolute rate of return equal to a weighted income yield of 6 %
defines the dividend and interest income has to be 60 of the
portfolio . That is not an average total return of 6 % .
Longer stated the return objective should be restated in the
policy . Longer suggested it should say your long term goal is to
achieve a total return averaging 6 % to satisfy actuarial
projections . Longer stated if you make it an absolute rate of
return on income yield , you are pretty much into 100 % bond
portfolio .
• 9
• January 16 , 1997
In answer to a question from Roberts , Mayes stated the equity
range needs to be changed to 35 % to 50 % . Cash will be 0 to 10 %
and the maximum in fixed income will be 65 % . Mayes suggested he
and Longer should review the numbers and send a copy of the
revised policy to each Board member .
Mashburn stated the motion should be that . the Board recommends
that Longer further evaluate the Policemen ' s Pension and Relief
Fund Investment Policy with the idea in mind that Dean Witter
will have 100 % of their investment in fixed income and that
Morgan Keegan will have 75 % in equity and 25 % in fixed income .
Longer will work with the figures on the remainder and make a
recommendation if the Board needs to make any changes . Longer
will then present a proposal to the Board .
Bradley stated the Board needs to know what Longer is going to
charge .
Longer stated the ongoing fee will not be as much as it will be
to get it all put on the computer .
After some discussion , Friend stated the motion should be to
limit Dean Witter and Morgan Keegan . The Board should handle
anything else Longer is to do in another motion .
• Roberts stated the Board can act on what Dean Witter and Morgan
Keegan are to do and have a letter written to each of those firms
telling them what they are to do .
Longer stated the Board should dictate an equity range to Morgan
Keegan . Longer suggested 50 % to 75 °% in equities rather than just
75 °06 .
Friend stated Longer will have her account so that the overall
fund is in compliance with the policy .
Friend made a motion to have Dean Witter maintain 100 % in fixed
income , for Morgan Keegan to have a range of 50 % to 75% in
equities with the remainder infixed income , and for Longer
Investments to maintain their equity and bond ratio so that the
total portfolio is in compliance with the policy .
In answer to a question from Roberts , Mayes stated he could send
a letter to Dean Witter and Morgan Keegan informing them of the
Board ' s decision .
Roberts stated the letters should also mention the requirement
that monthly reports from each manager will be sent to Longer
Investments .
• 10
. January 16 , 1997
Mayes stated there is a small account at Dean Witter that is
maintained for cash flow purposes . The Board dictates to them
how much money to keep in there . As it builds up over time , the
Board transfers it out to a manager . The account holds at least
three months worth of benefits . We only pay benefits out of the
account unless we get the Board ' s permission to move it to
somebody else .
Longer stated the Board needs to authorize them in writing to
release information to Longer Investments . Longer explained she
may need to call another manager to ask them what the cost is on
a security or something like that .
Bradley seconded the motion . The motion passed unanimously .
Mayes reviewed the changes the Board decided to make in the
investment policy . He stated the long term goal is to realize an
average annual rate of return of 696 on the fund ' s total portfolio
to satisfy actuarial projections . The maximum exposure to any
one equity will be increased to 2 . 5 % . The maximum allocation
investment category shall be 50 % for equities and the balance in
fixed income . The range for equities will be 35 % to 50 % . Cash
should be 0 to 25 % . The range for fixed income should be 5016 to
65 % .
• Friend , seconded by Mashburn , made a motion to change the
I
nvestment policy as stated by Mayes . The motion passed
unanimously .
Roberts stated when Longer has a proposal ready the Board will
hold a special meeting .
Friend , seconded by Mayor Hanna , made a motion to make Longer
Investments the primary manager of the plan . The motion passed
unanimously .
Paul asked if the Board wanted to change the time of the
regularly scheduled meetings to a time earlier than 2 : 30 p . m .
The Board decided to change their regular meeting time to 1 : 00
p . m .
The meeting adjourned at 3 : 30 p . m .
• 11
MINUTES OF A POLICE PENSION BOARD MEETING
A special meeting of the Police Pension Board was held February
27 , 1997 , at 1 : 00 p . m . , in room 326 of the City Administration
Building , 113 West Mountain , Fayetteville , Arkansas
PRESENT : Eldon Roberts , Dr . James Mashburn , Randy Bradley ,
Hollis Spencer , Administrative Services Director Ben
Mayes , and City Clerk/Treasurer Traci Paul
ABSENT : Mayor Fred Hanna and Jerry Friend
CALL TO ORDER
The meeting was called to order by Eldon Roberts . He stated
there was no prepared agenda and the main purpose of the meeting
was to discuss with Elaine Longer revisions to the investment
policy and guidelines and her proposals .
Kim Cooper , Longer Investments , reviewed the reports of the other
money managers . She stated Longer Investments has taken the
December 31 statements from the other money managers and set up
• accounts so the Board can look at them the same way they look at
the accounts managed by Longer .
Cooper stated the total assets of the funds managed by Dean
Witter , Morgan Keegan , and Longer as of January 31 was $ 8 . 6
million . The total portfolio is about 43 °1 stock .
The Board discussed the performance of the different accounts .
There was discussion regarding the management fees and how they
are billed . The Board needs to have this clarified and possibly
monitored .
In answer to a question from Longer , Mayes stated the Board has
an agreement with Dean Witter and an agreement with Morgan Keegan
where the fees are stated .
The Board reviewed a list of questions regarding the Dean Witter
and Morgan Keegan accounts .
Mashburn expressed concern that there were still unanswered
questions .
Mayes explained it was his understanding that what the Board
wanted to accomplish today was to act on hiring Longer
• Investments as the primary account manager . Mayes stated at the
1
February 27 , 1997
end of the last meeting the Board discussed the changes to the
investment policy . Those changes have been reviewed and the
policy has been revised . The information given to the Board
shows the words that were deleted and the words that were added .
The revised policy was sent to the other managers for any other
recommendations they may have . They did not recommend any
changes . The calculations have been double checked and letters
were sent out .
Roberts stated he was in favor of acting on this investment
policy today with the changes that have been made .
Mashburn moved . to adopt the investment policy as presented .
Bradley seconded the motion . The motion passed unanimously .
Mayes stated the Board had asked Elaine to prepare a proposal
to officially hire her as the overall accounting firm .
Elaine Longer stated she has done a proposal based on $45 per
hour and estimated the number of hours it would take to put
everything on the computer and move forward monthly with postings
from all the other accounts . It comes to an estimated $ 500 to
establish everything on the computer system . She estimated one
hour a month per manager , plus year - end reports of three hours
• total . This will be the most it will take ; it includes the worst
case scenario . If their time is not as high as this , they will
back off the fee . It comes to $ 500 to get established and then
probably an annual reporting fee of $ 1 , 200 . The $ 500 is a one
time fee .
Regarding a monthly report , it would take time for the statements
to come in from the brokerages and to be posted ; so it would
probably come out mid - month , if it was wanted .
The Board decided they would only need to receive quarterly
reports .
Mayes explained he receives monthly reports but' they have to go
to the Board no less than quarterly or semi - annually . He stated
he would have each manager send monthly reports directly to
Elaine .
Roberts did not see a problem with quarterly reports . A monthly
report could be generated if needed .
Longer explained the types of reports the Board can expect to
receive .
Longer reviewed the distributed reports .
2
• February 27 , 1997
Longer reviewed the questions that were forwarded to Morgan
Keegan and Dean Witter .
Roberts asked if the Board wants to go through the trouble of
getting 1996 figures . He stated that can ' t be changed , but the
Board can start monitoring from this point forward .
Longer noted that the policy requires a five year time frame for
evaluation .
Roberts thought the bottom line for the year might satisfy the .
investment policy .
Mayes stated the other managers could come for the April meeting
and report on 1996 and the first quarter of 1997 .
In response to comments from Longer , Roberts stated she should
receive copies of the contracts that spell out what the fees for
each firm are to be . Then it can be determined if they have been
paid the proper amount and for what time period .
Roberts brought the discussion back to hiring Longer . He
reviewed the figures she ' d quoted . He stated he felt very
comfortable with that situation .
Bradley moved to retain Longer Investments to be the overall
accounting coordinator of the investments at the initial fee of
$ 500 and a yearly retainer of $ 100 a month . Dr . Mashburn
seconded .
There was discussion regarding reports . The Board would want a
quarterly report and monthly reports only if needed .
The motion passed unanimously .
Bradley asked how this would be paid .
Longer stated it could be deducted the way the fees are or it
could be billed separately as an accounting charge .
Mayes suggested letting her deduct it . Appropriate documentation
has been signed for this .
Roberts reiterated that Elaine should have copies of contracts
from the other firms . He asked if the other firms need to be
notified to put Elaine on their mailing lists . '
Longer stated the other managers need to be authorized to release
any information she requests .
• 3
February 27 , 1997
Mayes stated he would write a letter regarding this .
Longer explained that she wanted to tell the Board what she had
done since the last meeting . She explained that she has a broad
range , 35 % - 65o , because Longer Investments is the swing factor .
She stated if she is targeting 50 % equity exposure between bonds
and stocks , then that should mean the combined total is about
42 % . She explained that she moved immediately to 50 % in January .
She referred to the written reports . This moved the combined to
431 . Right now she has enough bonds for purchasing power . If
she wants to go to 650 , she can use up the bonds in the stock
portfolio and then will be at her limit . .
Roberts explained that the Board wants Elaine ' s future reports
presented in the same format so they can become familiar with
them and can more intelligently study and discuss them .
SGT . RUSS COLE - POSSIBLE RETIREMENT
Roberts reported Sgt . Russ Cole has severe back problems and will
probably retire soon , after about 16 years of service .
LATE PENSION CHECKS
Roberts reported he received several calls this last month
regarding late checks . They ' d been mailed late Friday , and
Monday had been a holiday . He wondered if they could be mailed
earlier so that retirees would receive them before the 15th . He
understood that items mailed after a certain time on Friday were
sent to Memphis to be sorted .
OTHER BUSINESS
Paul asked if Mike Kirkland and Jim wood should be asked to give
reports at the April meeting and , if Elaine will be reporting ,
should they then come to every meeting .
Mayes stated Elaine would give a report summarizing what the
other managers had done but could not answer specific questions
regarding their performance . It would be prudent to have them
come to that meeting to make any explanations .
Roberts stated one of the Board ' s primary interests is for the
managers to report on the bottom line figures for 1996 and Jim
could bring the TCW numbers from January 1 , 1996 through November
16 , 1996 .
ADJOURNMENT
There being no further business , the meeting adjourned at 2 : 35 .
4
MINUTES OF A POLICE PENSION BOARD MEETING
A special meeting of the Police Pension Board was held on April
3 , 1997 , at 1 : 00 p . m . in room 326 of the City Administration
Building , 113 West Mountain , Fayetteville , Arkansas .
PRESENT : Mayor Fred Hanna , Hollis Spencer , Jerry Friend , Eldon
Roberts , and City Clerk /Treasurer Traci Paul .
ABSENT : Randy Bradley & Dr . James Mashburn
CALL TO ORDER
Mayor Hanna called the meeting to order .
BUSINESS
Russ Cole - Retirement
In response to a question from Eldon Roberts , Russ Cole explained
he went on sick leave on December 2 , -1996 . Cole stated it has
taken a while to see the right people . He stated he knew his
lower back was going out on him . He explained he has had an MRI ,
X rays , has been on pain medication and has been running back and
forth to Little Rock . Cole stated things were going slow with
the Veterans Administration so a private physician , Thomas
Fletcher , has examined him and has reviewed the MRI . According
to Dr . Fletcher , the condition is chronic and will not get any
better . Eventually there is a probability that surgery would be
required to correct the problem . There is some bulging on the
disk at the lumbar sacral area . He explained there is some nerve
compression from the first surgery he had in the Marine Corps in
1975 . Cole stated there is permanent damage . The doctors don ' t
think surgery is necessary at this time but some time in the
future it will be . Cole explained that The Veterans
Administration and Dr . Fletcher both advised him to seek a more
sedate type of employment .
Mayor Hanna asked Cole how long he had been with the Fayetteville
Police Department .
Cole stated he was hired August 9 , 1982 .
Police Chief Richard Watson stated Russ Cole has been a good
officer and he hates to lose him .
Roberts stated Russ Cole has been a very good officer . He has
been someone you could depend on and someone that would do what
• was right in every instance .
1
April 3 , 1997
In response to a question from Spencer regarding rehabilitation
through the Veterans Administration , Cole explained within the
next couple of months , he will have completed his master ' s thesis
in history . Cole stated the Veterans Administration is
suggesting that he become a lecturer through applying at the
community college . If a job is not available there , he explained
he would probably go through post graduate studies . The Veterans
Administration is helping with resumes and interviews .
Friend asked if the Veterans Administration helps pay for school .
Cole stated they have offered to pay for any school from this
time forward .
In response to a question from Roberts , Cole explained an injury
in basic training caused the first surgery in October , 1975 .
Spencer , seconded by Roberts , made a motion to grant medical
retirement to Russ Cole . The motion passed unanimously .
Cole expressed his appreciation for what his job has done for him
and his family . He explained he is thankful for his chance to
work for the City .
• Roberts explained that Cole would need to submit a letter from
his doctor every six months stating that his condition has not
changed .
The meeting adjourned at 1 : 15 p . m .
• 2
POLICE PENSION FUND
APRIL 1997
• EMP# NAME GROSS FED. TAX ST. TAX NET
131 ARNOLD, RD 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 1 ,388.45 1 ,388.45
101 BROOKS, BILL 728.22 728.22
109 COOPER, ADRIAN 350.00 350.00
111 DAY, LUG ILLE 350.00 350.00
108 DENNIS, WARREN 666.51 666.51
125 FLOWERS, HAROLD 413.39 413.39
140 FOSTER, BILLIE D. 1 ,563.71 150.00 50.00 1 ,363.71
148 FRIEND, JERRY 1 ,510.85 300.00 50.00 1 , 160.85
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 11176.74 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
150 LITTLE, PATSY R 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 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
149 WILLIAMS, JOYCE 11217.07 217.07 1 ,000.00
134 WITT, DON 846.72 64.00 782.72
127 WOOD, PAUL J 757.62 757.62
--------------
$36,416.92 $2,555.50 $271 .89 $33,589.53
•
POLICE PENSION FUND
MAY 1997
EMP# NAME GROSS FED. TAX ST. TAX NET
131 ARNOLD, RD 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 1 ,388.45 . 1 ,388.45
101 BROOKS, BILL 728.22 728.22
151 COLE, RUSTON 1 ,469. 19 100.00 100.00 1 ,269. 19
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. 1 ,563.71 150.00 50.00 11363.71
146 FRIEND, JERRY 1 ,510.85 300.00 50.00 1 , 160.85
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 ,561 .67
144 KILGORE, DONALD 980.73 19.72 961 .01
129 LAWSON, FORREST 751 .38 50.00 701 .36
150 LITTLE, PATSY R 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 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 20.00 680. 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
149 WILLIAMS, JOYCE 1 ,217.07 217.07 1 ,000.00
134 WITT, DON 846.72 64.00 782.72
127 WOOD, PAUL J 757.62 757.62 -
$37,886. 11 $2,655.50 $371 .89 $34,858.72
•
FAYETTEVI LLE .
*E CRY OF FAVETTEVILLE, ARKANSAS Ben R. Mayes, Administudw ServIces Dirww
March 10, 1997
Mr. Jim Wood
Dean Witter
112 W. Center, Suite 100
Fayetteville, Arkansas 72701
Dear Mr. Wood:
At their February 27 meeting, the Police Pension Board appointed Elaine Longer to act as
Accounting Coordinator for the Police Pension & Relief Fund. Please send copies of all month-
end and year-end reports for any and all funds under your management to :
Longer Investments
ATTN: Elaine Longer
P.O. Box 1269
Fayetteville, AR 72702
We have complete confidence you will cooperate fully with Ms. Longer regarding any questions
she may have or additional information she may require.
If you have any questions or comments, or if I can be of assistance to you, please call me at
575-8330. Thank you.
Sincerely,
Ben R. Mayes
Administrative Services Director
BRM/rlw G \0
113 WEST MOUNTAIN 72701 501576-8330
FAX 601 575-8257