HomeMy WebLinkAbout1997-07-10 - Agendas - Final FAYETTEVI LLE
THE CITU OF FAYETTEVILLE, ARKANSAS TRACI PAUL, CITY CLERK
TO : Policemen ' s Pension Board Members
FROM : Traci Paul , City Clerk/Treasurer
DATE : July 10 , 1997
SUBJECT : POLICE PENSION BOARD MEETING
The next Police Pension Board meeting is Thursday , July 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
April 17 regular meeting , and the pension list for July .
Attachments
•
•
113 WEST MOUNTAIN 72701 501 575.5323
AGENDA
POLICEMEN ' S PENSION AND RELIEF BOARD
July 17 , 1997
1 : 00 P . M .
City Hall Room 326
1 . Approval of the minutes of the April 17 , 1997 meeting .
2 . Old Business
A . Discussion of requests made by Mike Kirkland at the
April 17 meeting .
3 . Investment Reports
A . Report from Elaine Longer , Longer Investments
B . Report from Jim Wood , Dean Witter
• Timothy Ellis , Investek
C . Report from Mike Kirkland , Morgan Keegan
4 . New Business
A . Funeral Benefit - Earl Lorch
B . Appointment of Active Board Member
C . Appointment of Retired Board Member
D . Appointment of Physician Board Member
S . Adjournment
•
_ 77maUry L Ellis Vice Presiden0rincinal
Mr. Ellis is responsible for ail marketing functions at Investek Capital Management.
He has over fourteen years experience in the investment business. He has a broad
background in marketing and investor service including experience with a national
securities firm. Before joining Investek, Mr. Ellis was employed for 16 ,years in
developing and implementing marketing strategies for the wholesale distribution of
investment products through a number of national and regional brokerage firms.
Mr. Ellis holds a Bachelor of Business Administration degree from the University of
Mississippi.
•
MINUTES OF A POLICE PENSION BOARD MEETING
A meeting of the Police Pension Board was held on April 17 , 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 , Jerry Friend , City
Clerk/Treasurer Traci Paul
Absent : Mayor Fred Hanna , Hollis Spencer , Randy Bradley
CALL TO ORDER
Roberts called the meeting to order with four members present .
MINUTES
Roberts noted there were minutes of four different meetings to
approve . Regarding page two of the October 17 , 1996 , minutes , he
questioned there being $ 600 , 000 in the cash account . As the
Board hardly ever keeps that much money in the cash account , he
wondered if something else was meant .
• Ben Mayes explained there were two or three CDs that had matured .
The excess was transferred to other accounts .
Mashburn , seconded by Friend , moved to approve the minutes of all
four meetings . The motion passed unanimously .
Mayes further explained that as it had been October , property tax
and the State insurance turnback had further contributed to the
cash build up .
INVESTMENT REPORTS
Longer Investments
Elaine Longer , Longer Investments , reviewed the portfolio of
reports she ' d distributed to the Board . She stated she was only
able to give an update for Longer Investments and Madison as she
had not received statements from the others . She asked if the
statements were set up to be mailed directly from the brokers .
Mayes replied a letter had been sent asking them to mail the
statements directly to her .
• 1
April 17 , 1997
Longer reviewed reports updated through February 28 , 1997 . The
first report was the combined portfolio . Equities as a
percentage total are 43 . 7 44 . 3 % if you add in the Vanguard
small capitalization stock fund . Corporate bonds are 11 % of
total . Government bonds are about 33 % , with government agency
being about 5 % . The overall portfolio market value closed
February 28 , 1997 , at $ 8 . 64 million .
Mashburn asked if Longer was finding any redundancy , where all
three are investing in the same thing .
Longer replied it is quite diversified .
Longer reviewed Longer Investments through February 28 , 1997 .
She had separated off 65 % of the total into a stock fund . When
that fund is totally invested , we can assume we are probably
bumping up to the 50 % maximum . She has bonds in this account , as
that is purchasing power . Further reviewing the reports , she
stated equities were up about 6 . 3 % , about 5 . 25 % with bonds mixed
in .
Mashburn asked for Longer ' s overall investment philosophy .
Longer responded that in her newsletter for this quarter she
. tried to lay out what she thought would happen . The main problem
is that interest rate pressure has turned up again . Part has
been absorbed . The recent Consumer Price Index caused a bit of a
rally this week . The problem is the Federal Reserve could care
less what the CPI is . The Federal Reserve is looking at the
precursors to inflation .
Mashburn asked if she was holding cash or moving money now .
Longer replied she has plenty of cash reserves . She started
lightening up in March , when the two year treasury was up to
6 . 25 % yield again . She started raising cash reserves and did not
disturb the core equity portfolio . They will prune stocks that
haven ' t performed well or that performed better than expected .
We are sitting comfortably now and will not go lighter so as not
to go under what she is supposed to be in terms of the policy .
They are waiting and watching at this point . She feels there
will be a better buying opportunity .
Longer next reviewed the bond account . It is basically 16 %
corporate and the rest is government bonds . We lose the Philip
Morris corporate bond in December of this year .
Friend asked what she is doing with the Philip Morris stock .
• Longer replied it was sold in March .
2
April 17 , 1997
Continuing with the review of the bond account , Longer stated the
return on the bonds through February 28 was . 39 % . When updated
through March 31 , it was right at zero year to date because bond
prices decline as interest rates go up . At this point in time ,
the interest income has offset the price decline . We have lots
of opportunity in the bond fund to roll forward and capture
higher yields when the buying opportunity is there .
Longer next reviewed the Dean Witter Madison bond account .
Through February 28 , their return was . 39 % Through March 31 ,
they were down . 45 % . That is just the price change that took
place in March when the interest rates went up . They have more
corporate bonds , about 32 % .
Longer did not discuss the Dean Witter money market report .
Longer reviewed the Morgan Keegan bond fund . Through February
28 , it was up about 1 % . They have about a half million . She did
not have an update on this .
Longer next reviewed the Flippin stock fund with Morgan Keegan .
It is about $ 772 , 000 . 80 % of that is invested in stock . The
first two months they were up about 4 . 781 on equities and 3 . 68 °%
total with the bonds added in .
• The NWQ account is about 90 % invested in stocks , 10 % cash
reserves . Between the two , you are at about 85 % in the two stock
funds . When you add in the money market and the bond fund , you ' d
be at the 75 % level . The return is 5 . 8 % in equities , 5 . 38 % with
cash net total .
Friend asked if the expenses were prepaid on the NWQ account .
Longer replied it was paid in November but was billed again this
year . A credit came back of about $ 500 .
Kim Cooper , Longer Investments , added it was netted out as the
fee . The fee was reduced .
Longer could not say what the rate being charged is because there
have not been enough months to know what the frequency is . Once
we get a half year , she can calculate what the rate is .
Roberts had concerns about all these rates . He wanted Longer to
get copies of the contracts so she would know how this is being
done . This is one of the things the Board had in mind for her to
report on , that the fees are in line with the contracts .
Mashburn suggested the other investors could clarify this in
their reports .
3
April 17 , 1997
Longer again stated she could report on the numbers but could not
determine the frequency at this time , so could not determine the
rate .
Roberts assured her it would not put her in an awkward position ,
as the Board would have City Attorney Rose follow up on it . He
reiterated that he would like Longer to have copies of the
contracts .
Mayes stated that the investors had been directed by letter to
give Longer copies of the monthly statements and any other
information requested .
Mashburn complimented Longer on the clarity of the report with
its color coding . He suggested using a color for the report on
the total combined accounts , too .
Longer reviewed the reports as of March 31 and commented on the
newsletter . The newsletter profiles the interest rate
environment and the interaction between stocks and interest rates
and what steps she takes to position when the market enters into
a corrective mode . Market correction is the one time you have
good buying opportunity , if you act in advance and raise the
reserves . The earnings outlook is good . It is dependent on the
• interest rates and what happens with the next Federal Reserve
meeting .
Dean Witter
Jim Wood , Dean Witter , announced that Dean Witter and Morgan
Stanley are merging , which should be completed May 15 .
Statistically , it makes them the biggest firm in the world .
Board members were given copies of all Wood ' s material .
Wood began his report by commenting on a paragraph of the cover
letter regarding rate increases . He stated this portfolio has
short maturities , so while there might be a minor amount of short
term fluctuation in the value , you can hang on to them . We are
not speculating on interest rates in any way .
Wood next went over the quarterly report booklet . In the review
section , he called attention to the chart reflecting Greenspan ' s
interest rate decisions . This report shows performance is down
. 37 % , maturity is less than 5 % , and the yield is high , the
highest quality out there . Regarding historical returns , he
would be surprised if 1997 comes in like 1994 , the only negative
year .
• Wood reviewed the outlook section of the report .
4
April 17 , 1997
Wood reviewed the appendix portion of the booklet which shows
what the Board owns . Corporate bonds are a lighter portfolio ;
the rest is treasury notes . The last three months have been a
good environment .
On the cost side , the Board paid a fee to Madison each quarter .
For the fourth quarter , it was $ 2 , 166
Mashburn asked if the quarter was October , November , and December
and if another charge was taken out for January , February and
March .
Wood replied the fourth quarter was October , November , and
December . He has not received another payment from Madison .
Madison notifies him in writing , which is the procedure . The fee
to the adviser is quarterly , about one half of one percent .
There is also a transaction cost whenever anything is done that
is rarely done . For the last 12 months , the transaction costs on
this have been about $ 1 , 400 , not very much for $ 1 . 6 million . The
$ 1 , 400 is the amount of commissions paid to Dean Witter in the
last 12 months .
Roberts explained that the Board has asked several times if they
are paying Dean Witter and then Madison , too , or are they just
• paying one of them and they divide the money . . He asked Wood how
he is being paid .
Wood replied it is not set up as a wrap account . The Board does
not want to wrap it , as there is not enough in there . With a
wrap account , you pay a fee every quarter regardless of what
happens . It does not make sense for this kind of account . The
way this one works is he will get a request in writing from
Madison about the last week of this month asking Dean Witter to
pay for the last three months . It will be based upon the account
value at the end of March . That is what Madison ' s fee is . When
Dean Witter gets anything , that is when they do a trade . There
might be one trade done every three months , not much .
Wood cautioned the Board that they need some depth in managing
the fund . Because of his company ' s size , there are lots of
people at Dean Witter who can back him up . This should be true
of all the key people involved . For now , the name of the new
company is Morgan Stanley Dean Witter Discover .
Roberts informed Wood that the Board would like Longer put on the
mailing list and that they would like Longer to receive a copy of
the contract the Board signed with Dean Witter .
• 5
April 17 , 1997
Wood stated he had a contract dated in 1990 that says it can be
terminated by either party at any time and the Board just pays
for the amount of time the money is managed , paid in advance
based on the previous quarter ' s values . If something happens
during that quarter and it is terminated or added to , it is
prorated .
Roberts complimented Wood on the clarity of his report and
presentation .
Wood stated he might at some point ask to bring in a firm that is
a short term fixed income manager . The Board might bump this up
by to without taking any more risk .
Mayes stated that Dean Witter ' s contract used to be a wrap fee ,
when everything was with Dean Witter . Over time , the Board has
given a piece to Longer , so the contract with Dean Witter may
need to be looked at again .
Roberts stated the Board should see a copy of the contract .
He asked Paul to ask Longer to forward a copy when she gets it .
Morgan Keegan
• Dick Wilson , of Flippin , Bruce & Porter , reviewed the background
of his firm and its investment philosophy . This information is
included in the report he provided the Board .
In response to a question from Mashburn , Wilson stated Flippin
likes stocks that pay dividends . They do not have a rule of
thumb regarding the percentage . Normally , when they buy a
company that is out of favor , its stock prices come down and
chances are they haven ' t cut the dividend . So usually on a
percentage basis , the dividend is fairly high when the stock is
bought . In the past three to four years , dividend yield on
stocks has not been great . Many companies have elected to buy in
shares , as opposed to paying out dividends . His company feels
this is a very favorable approach for stockholders as they get a
larger piece of the pie if there are fewer shares out there .
Mike Kirkland , Morgan Keegan , explained the performance numbers
report , copies of which were given to the Board .
Mashburn asked if there was a basic portfolio or if this report
was strictly what was invested for the police department .
Wilson replied they have the same stocks in all their portfolios .
It is the Board ' s own account . The stocks and bonds are owned
directly by the plan . The only thing that varies is when they
• have the money to fund the account , they look at their list ,
6
April 17 , 1997
roughly 40 stocks , and begin buying those stocks into the
portfolio , except those they are getting ready to sell . The
Board is buying this firm for its future ideas . They hold stocks
four or five years . In this period , the Board would see a full
cycle .
The Board was given copies of all the following material that
Kirkland reviewed .
Kirkland reviewed the December , 1996 , statement of the bond
portfolio he is running for the Board . This is pulled out of
NWQ . The value as of Dec . 31 , 1996 , was $ 492 , 375 . 0 . There is
very little cash as there is no reason to keep cash in this
account now . There is $ 1 , 984 cash .
Kirkland reviewed the March statement . At that time there was
about $ 7 , 000 in cash . Market value at the end of March was
$ 494 , 000 .
Kirkland explained the presence of municipal bonds in the
portfolio . They are taxable municipal bonds . We got a great
rate on them . They are paying 7 . 65 % with yield at maturity
almost 7 % each . They mature in 2001 and are AAA rated .
• Kirkland reported he was able to sell U . S . treasury notes at a
small profit . It had a current yield of about 5 . 5 % and he bought
a two year CD yielding about 6 . 35 % .
Kirkland next shared an article from Business Week regarding
their guru , Donald Ratajczak , and his view of the next few
months .
Kirkland reviewed the fourth quarter report on the two managers ,
Flippin and NWQ . Flippin showed a market value at the end of the
year of $ 746 , 312 . They were holding 25 % in cash , but not now .
Total portfolio was down 1 . 7 % , S &P down 2 . 0 % . $ 50 , 000 was added
in cash . NWQ was valued $ 747 , 515 at the end of the year .
Overall portfolio for the month down 2 . 1 % . NWQ had only 5 . 91 in
cash . It is pretty much fully invested all the time .
Kirkland stated he had looked at Longer ' s accounts and these two
and found seven stock overlaps . There is not much overlap .
Kirkland reviewed Flippin ' s 1997 first quarter report . The value
was $ 756 , 345 . The overall portfolio was up 1 . 3 % . For the latest
month it was down 2 . 31 . Overall market was down 4 . 1 % . They had
20 % in cash , which they will be spending in the next couple of
weeks .
• 7
April 17 , 1997
Kirkland reviewed NWQ ending March 31 , 1997 . Portfolio value was
$ 762 , 582 . It was up 2 % . Overall market was up 2 . 7 % . The latest
month was down 3 . 3 % ; overall market was down 4 . 11
Kirkland stated both of these managers are somewhat value
oriented . We need to let them do their thing for a while and see
how they do . Both are considered large cap value managers .
Kirkland reviewed the comparative performance analysis report .
This is the report the Board asked Longer for and paid for .
Morgan Keegan is doing this for free . They went to the trouble
of getting 39 statements from Longer Investments and Madison to
compile this information . He stated the overall number on page 1
does not include the bond account at Morgan Keegan nor the cash
account at Dean Witter .
Mashburn commented that next time the Board would like to see the
whole ball of wax .
Kirkland stated when you add the Morgan Keegan bond account to
that , it puts the fixed income portion up to $ 4 . 228 million ,
almost 51 % of the portfolio .
Regarding page two of the report , Kirkland explained the term
• " time weighted . " It is the performance of the manager . " Dollar
weighted " is the performance of the fund . The total fund for the
latest one year period ending March 31 , 1997 , not including the
bond part , is up 7 . 881 . Latest three years is up 7 . 48 % .
Kirkland briefly reviewed the Longer , Madison , Flippin and NWQ
portions of the report and remaining charts .
Regarding fees , Kirkland stated Dean Witter ' s fee was 1 . 75 % .
Currently Morgan Keegan ' s fee is 1 . 7 % . That is all inclusive .
It is what they call a wrap fee . It is 1 . 7 % per year and would
go down if they had more money under management . He noted he had
credited $ 671 back to the Flippin account as they ' d charged too
much in the first management fee and $ 673 to NWQ .
In response to a question from Mayes , Kirkland stated the 1 . 7 %
wrap fee was just for NWQ and Flippin . This is done quarterly in
advance .
Commenting on the minutes , Kirkland stated Madison is only being
paid one half of one percent . The commission Dean Witter gets
from Madison is just from the bonds they purchase or sell and is
not a lot above that one half of one percent .
8
April 17 , 1997
Kirkland reviewed a diversification reduces risk chart that
showed why there should be international exposure . Historically ,
this has increased return and decreased volatility . He did not
think it was imprudent to have 5 % of the portfolio in
international exposures . He recommended INVESCO , a large cap
value international manager .
Kirkland asked the Board to consider closing both Dean Witter
accounts . He had developed those accounts with the Board .
Morgan Keegan can consolidate the cash account into its cash
account with the same check writing privilege . Madison is an
account he ' d brought to the Board and he would like to have it
back . It is a matter of consolidation and being able to get back
what he initially had . Nothing would change .
Kirkland stated the Board could save $ 17 , 600 in fees by moving
Longer ' s ladders portfolio to him and let him continue to ladder
that . There are numerous ways to add value on the laddering if
we brought that money over . We would not do anything with the
fixed income , just let it mature . The Board would save seventeen
to eighteen thousand dollars on fees for it to just sit there and
mature . Morgan Keegan has one of the best fixed income research
departments around . He thought they could add value without
charging an ongoing fee as they mature .
• Kirkland asked the Board to consider three things : He would like
to have the Dean Witter business back ; he would like the Board to
consider an international manager , INVESCO ; he would like to move
Longer ' s bond account to him to reduce the fixed income fee and
add value by trying to find enhanced yield without charging an
ongoing management fee .
In response to a question from Mayes regarding Madison , Kirkland
was saying move it over as it is . They would call his bond desk
to do trades as opposed to calling Dean Witter ' s . As the Board ' s
consultant , he will continue to monitor all of them .
Roberts informed Kirkland that a letter had been sent instructing
him to place Longer on his mailing list to receive all the
information the Board does . He also requested that Kirkland send
Longer copies of any contracts the Board has signed regarding
fees and all other stipulations .
Kirkland asked when he could expect an answer to the three things
he ' d asked the Board to consider .
Roberts replied the next scheduled meeting is in July . They
might discuss it at that time but may not take action .
• 9
OLD BUSINESS April 17 , 1997
There was no old business .
NEW BUSINESS
Funeral Benefit - R . D . Arnold
Roberts announced that R . D . Arnold , retired Fayetteville police
officer currently drawing monthly benefits , passed away . He
asked Paul to be sure Arnold ' s widow received the $ 200 funeral
benefit and was informed who to contact to make any changes
regarding taxes .
Benefit Increase
Roberts asked Mayes to try to review the only information
received from Little Rock on the denying of the benefit increase
and if possible use the same method of evaluation to give the
Board a rough idea whether or not the Board could now grant
benefit increases .
Mayes responded that he had looked at this quickly when informed
the Board might be interested in this . The Board had an
• evaluation of assets of $ 7 , 187 , 000 at the end of 1995 . This time
they will use $ 8 , 088 , 000 . He cannot do all their calculations ,
but if the actuarially computed liability were the same today as
it was then , the Board would have been at 80 . 31 and had to be at
a minimum of 86 % . Based on this value , the Board would be at
90 % , so would qualify . The unknown is what happened to the
actuarial evaluation .
Mashburn asked if they were liable to give an evaluation every
two years .
Roberts clarified that a benefit increase study is different from
an actuarial evaluation and they would have to pay for it .
Mayes stated the actuarial evaluation would be done' at the end of
1997 and received in June or July of 1998 . Regarding the benefit
increase , he thought they were real close . He reminded the Board
that every year , they are supposed to be 5 % more actuarilly
sound , until they get to 2003 and 100 % .
Minutes
Friend asked that the minutes read , " The Board heard a report
from Elaine Longer " and not have the actual report taped .
• 10
April 17 , 1997
Discussion ensued regarding the importance of having a taped
record of the meeting and having some details of the investment
reports written in the minutes .
ADJOURNMENT
Friend moved to adjourn . Mashburn seconded . The motion passed
unanimously .
The meeting was adjourned at 3 : 56 p . m .
•
• 11
POLICE PENSION FUND
JULY 1997
• EMP# NAME GROSS FED. TAX ST. TAX NET
152 ARNOLD, WILLADEAN 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
151 COLE, RUSTON 11469.19 100.00 100.00 11269. 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. 11563.71 150.00 50.00 1 ,363.71
148 FRIEND, JERRY 1 ,510.85 300.00 50.00 1 , 160.85
145 HANNA, MARK 11311 .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
150 LITTLE, PATSY R 350.00 350.00
153 LORCH , DONNA G 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 11013.09
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 11000.00
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
• (Display ad to appear in the editions of June 15 , June 18, & June 22, 1997 . The first
insertions are to be headed NOTICE OF VACANCIES and the last is to be headed FINAL
NOTICE OF VACANCIES. )
(Appropriate Heading)
CIVIL SERVICE
COMMISSION: One position with an
unexpired term ending April 1 , 1999.
PARKS AND RECREATION
ADVISORY BOARD: One position with
an unexpired term-ending-January 1 , 1998.
;; POLICEEN'S . ENSION.ANDO VACANXY Ab pUL3LISHED
CRELIEF FUND BOARD'OF 7j ON DATES LISrEb A8ovE .
[TRUSTEES:"One position with a term
ending in May of 1999 is open to a ONLY AIL I CATI ON
reputable physician who shall represent the SU13M ITrEb WAS FkmM
Board of Trustees in the examination of
any member of the department upon a bIP. MASHk5uIPN Aipl�LVING
claim of disability . FOW ANO
Registered voters residing in the ��I" -
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calling 575-8323 or by coming to Room
309 of City Hall (113 West Mountain
Street) .
Completed applications must be
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Friday, June 27 , 1997 .
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RETURN THIS APPLICATION TO: Traci Paul , City Clerk' s Office, 1 W. M Kai : FayettevilleIf. you have
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If you are not appointed, your application will be kept or— r end will automatically be resubmitted
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July.15, J997 -_
Traci Paul, City Clerk
City of Fayetteville
113 West Mountain
Fayetteville, AR 72701
RE: Replacement of Retired Pension Board Member
• Telephone calls were made by Paul Wood, member of the Retired Police, and myself, as
a Retired Police Pension Board Member, to thirty-one of the retired members, all of
whom wanted Randall Bradley to be re-elected to the Retired Police Pension Board.
Hollce� -
HES : sh
- c. Mayor. F.red I3anna,
• V JUL 1 6 1991
UTY BENTS C rCU�
FAYETTEVILLE
THE CITY OF FAYETTEVILLE, ARKANSAS
•
DEPARTMENTAL CORRESPONDENCE
M E M O R A N D U M
TO : Traci Paul , Ci y Clerk
FROM : Rick Hoyt , stant Chief of Police
DATE : June 23 , 1997
SUBJECT : Pension Board Election
On Friday , June 20 , 1996 at 3 : 00 PM , a meeting was held for
active police pension members . The purpose of the meeting was to
elect the active representative to serve a two year position on the
board . The meeting was held in the police department briefing room
and the following members were present ;
Ken Martin
Angela Munson
• Melvin Stanley
Charles Allen
Gary Dugger
Eldon Roberts
John Schuster
Frank Johnson
Rick Hoyt
I chaired the meeting at the request of Eldon Roberts .
Nominations were opened and Eldon Roberts was nominated by John
Schuster , 2nd by Gary Dugger .
Nominations were called for two more times with no further
nominations . Motion by Angela Munson to cease nominations and
elect Eldon Roberts by acclamation , 2nd by Schuster . Motion passed
unanimously on a voice vote .
After a short discussion about the Deferred Retirement Option
Plan ( DROP ) , the meeting was adjourned .
•
r
LONGER
INVESTMENTS
INCORPORATED
City of Fayetteville
Police Pension Board Meeting
July 17, 1997
• Longer Investments, Inc.
PORTFOLIO APPRAISAL
City of Fayetteville Police Pension Fund
Longer Investments, Inc. Combined Account
June 30, 1997
Unit Total Market Market Pct. Unit Annual Cur.
Quantity Security Cost Cost Price Value Assets Income Income Yield
COMMON STOCK
650 AT & T 39.79 259866.13 35.06 220790.62 0.5 1 .320 858.00 3.8
1,500 ADT Limited 13.57 20,355.00 33.25 492875.00 1 .0 0.000 0.00 0.0
1,000 Alternative Resources 18.47 18,472.50 20.37 205375.00 0.4 0.000 0.00 0.0
1 ,300 Baldor Electric 19.55 25,418.75 29.56 389431 .25 0.8 0.480 624.00 1 .6
2,200 Bristol Myers Squibb 43.07 942747.32 81.00 178,200.00 3.5 3.040 6,688.00 3.8
675 Cisco Systems Inc. 48.14 322496.71 67.12 455309.37 0.9 0.000 0.00 0.0
1 ,300 Coherent, Inc. 41 .68 542190.00 44.50 575850.00 1 .1 0.000 0.00 0.0
1 ,500 Concord EFS, Inc. 26.76 40,138.80 25.87 389812.50 0.8 0.000 0.00 0.0
2,200 DSC Communications 14.40 31,678.58 22.25 48,950.00 1 .0 0.000 0.00 0.0
1 ,030 Diebold, Inc. 13.56 132968.70 39.00 405170.00 0.8 0.500 515.00 1 .3
1 ,500 EMC Corporation 36.44 54,667.50 39.00 587500.00 1 .2 0.000 0.00 0.0
25400 Emerson Electric 33.13 79,501 .60 55.06 132,150.00 2.6 1 .080 2,592.00 2.0
17500 Franklin Covey Co 21 .24 31 ,855.00 25.31 37,968.75 0.8 0.000 0.00 0.0
(Formerly Franklin
Quest)
1 ,950 General Electric 26.42 51 ,524.58 65.00 126,750.00 2.5 2.080 47056.00 3.2
1 ,500 General Nutrition 19.94 29,916.90 28.00 42,000.00 0.8 0.000 0.00 0.0
15900 Hanna, M. A. 21 .70 419236.50 28.62 54,387.50 1 .1 0.400 760.00 1 .4
• 2,000 Inco, Ltd. 33.08 66,165.00 30.06 6%125.00 1 .2 0.400 800.00 1 .3
15500 Innovex Inc. 28.01 42,016.00 29. 12 43,687.50 0.9 0. 180 270.00 0.6
300 Intel Corp 107.39 32,217.50 141 .81 42,543.75 0.8 0. 160 48.00 0.1
1 ,700 Jacobs Engineering 26.53 45,097.50 26.87 45,687.50 0.9 0.000 0.00 0.0
1 ,000 Kimball International, 3933 39,330.00 40.25 40,250.00 0.8 1 .040 17040.00 2.6
Inc.
2,000 Leggett and Platt 31 .06 622128.00 43.00 86,000.00 1 .7 0.480 960.00 1 .1
1,000 Life Technology 23.77 239765.83 27.75 277750.00 0.5 0.160 160.00 0.6
534 Lucent Technologies 50.12 26,763.63 72.06 38,481 .37 0.8 0.300 160.20 0.4
1 ,600 Micron Technology 33.99 54,390.00 40.00 64,000.00 1 .3 0.200 320.00 0.5
2,600 Mobil Corp. 50.88 132,293.00 69.87 181 ,675.00 3.6 4.000 109400.00 5.7
1 ,500 Mueller Industries 36.77 557151 .82 43.75 65,625.00 1 .3 0.000 0.00 0.0
71 NCR Corp. 31 .89 2,264.49 29.62 2,103.37 0.0 0.000 0.00 0.0
22000 Natures Sunshine Prod. 16.57 33,149.50 18.12 36,250.00 0.7 0.133 266.00 0.7
500 Nike, Inc. 55.60 27,802.50 58.37 29,187.50 0.6 0.560 280.00 1 .0
2,400 Northern Trust Corp. 23.69 56,853.08 48.37 1165100.00 2.3 0.720 17728.00 1 .5
1 ,000 Nutramax Products, Inc. 9.83 92830.00 13.12 13,125.00 0.3 0.000 0.00 0.0
2,000 Periphonics Corp. 15.74 31 ,477.50 21 .50 435000.00 0.9 0.000 0.00 0.0
1 ,500 Placer Dome, Inc. 26.44 392667.50 16.37 24,562.50 0.5 0.300 450.00 1 .8
1,200 Robert Half International 39.23 472076.00 47.06 56,475.00 1 .1 0.000 0.00 0.0
11700 Rotech Medical 17.71 30,100.40 20.06 34,106.25 0.7 0.000 0.00 0.0
1,100 Rubbermaid, Inc. . 25.48 28,028.00 29.75 32,725.00 0.6 0.560 616.00 1 .9
1,500 Saint John Knits 38.71 58,071 .15 53.62 80,437.50 1 .6 0.100 150.00 0.2
800 Schwab Corporation 36.10 28,884.00 40.50 32,400.00 0.6 0.200 160.00 0.5
1 ,300 Snap-On, Inc. 32.77 42,601 .00 39.37 51 ,187.50 1 .0 0.840 1 ,092.00 2.1
2,350 Staples, Inc. 17.72 412636.05 23.25 54,637.50 1 . 1 0.000 0.00 0.0
11500 Starbucks Corp. 30.19 45,282.50 38.94 58,406.25 1 .2 0.000 0.00 0.0
1 ,250 Superior Industry 23.95 29,935.94 26.50 33,125.00 0.7 0.210 262.50 0.8
International
1 ,000 U. S. Filter Corp. 32.70 32,705.00 27.25 272250.00 0.5 0.000 0.00 0.0
• 1 ,600 Valmont Industries 18.90 302233.50 19.00 302400.00 0.6 0.400 640.00 2. 1
1
y .
Longer Investments, Inc.
PORTFOLIO APPRAISAL
City of Fayetteville Police Pension Fund
Longer Investments, Inc. Combined Account
June 30, 1997
Unit Total Market Market Pct. Unit Annual Cur.
Quantity Security Cost Cost Price Value Assets Income Income Yield
2,800 Walmart Stores 25.91 72,555.00 33.81 94,675.00 1 .9 0.210 '588.00 0.6
1 ,000 Whole Foods Market, Inc. 23.95 23,955.00 33.12 33,125.00 0.7 0.000 0.00 0.0
1 ,500 Woodhead Industries, 15.25 22,875.00 18.87 28,312.50 0.6 0.280 420.00 1 .5
Inc.
1 ,700 Zero Corporation 20.71 35,211 .50 26.25 44,625.00 0.9 0.120 204.00 0.5
119952547.46 2,644,561 .00 52.4 37,107.70 1 .4
MUTUAL FUNDS-EQUITY
3,123.318 Vanguard Intl Equity 11 .21 352000.00 11 .31 35,324.73 0.7 0.090 281 . 10 0.8
Index Pacific
2,486.154 Vanguard Small 21 .63 53,767.34 22.48 555888.74 1 .1 0.180 447.51 0.8
Capitalization Stock Fund _
882767.34 91 ,213.47 1 .8 728.61 0.8
CORPORATE BONDS
1001000 Philip Morris 100.54 1005543.50 101 .34 101,343.75 2.0 9.250 9,250.00 9.1
(Non-callable) Rated
A2/A
9.250 % Due 12-01-97
. 55,000 Pepsico (Non-callable) 99.31 54,618.30 100. 11 55,059.40 1 .1 6.125 3,368.75 6.1
Rated Al/A
6.125 % Due 01-15-98
140,000 Wal-Mart Stores 101 .83 142,565.75 99.22 138,906.25 2.8 6.500 9,100.00 6.6
(Non-callable) Rated
AAI/AA
6.500 % Due 06-01-03
Accrued Interest 3,022.20 0.1
2972727.55 2982331 .61 5.9 21,718.75 7.4
GOVERNMENTBONDS
150,000 U. S. Treasury Note 99.94 149,910.50 100.62 1509937.50 3.0 7.375 11,062.50 7.3
7.375 % Due 11-15-97
250,000 U. S. Treasury Note 99.93 249,820.00 100.44 251,093.75 5.0 6.250 157625.00 6.2
6.250 % Due 06.30-98
240,000 U. S. Treasury Note 99.95 239,882.00 100.44 241,050.00 4.8 6.250 152000.00 6.2
6.250 % Due 07-31-98
200,000 U.S. Treasury Note 99.87 1992736.00 100.53 2012062.50 4.0 6.375 122750.00 6.3
6.375 % Due 04-30-99
50,000 U.S. Treasury Note 100.06 50,030.00 100.50 507250.00 1 .0 6.375 3,187.50 6.3
6.375 % Due 05-15-99
50,000 U. S. Treasury Note 99.56 49,781 .50 99.94 49,968.75 1.0 6.250 35125.00 6.3
6.250 % Due 08-31-00
100,000 U. S. Treasury Note 99.00 99,000.00 105.66 1057656.25 2.1 8.000 8,000.00 7.6
8.000 % Due 05-15-01
100,000 U. S. Treasury Note 101 .50 101 ,500.00 99.94 99,937.50 2.0 6.375 6,375.00 6.4
6.375 % Due 08-15-02
155,000 U. S. Treasury Note 98.34 1522425.98 104.22 161 ,539.06 3.2 7.250 11 ,237.50 7.0
7.250 % Due 05-15-04
50,000 U. S. Treasury Note 99.97 49,984.38 107.87 53,937.50 1 .1 7.875 3,937.50 7.3
7.875 % Due 11 -15-04
2
• Longer Investments, Inc.
PORTFOLIO APPRAISAL
City of Fayetteville Police Pension Fund
Longer Investments, Inc. Combined Account
June 30, 1997
Unit Total Market Market Pct. Unit Annual Cur.
Quantity Security Cost Cost Price Value Assets Income Income Yield
50,000 U. S. Treasury Note 99.87 49,937.50 99.75 49,875.00 1 .0 6.500 32250.00 6.5
6.500 % Due 08-15-05
50,000 U.S. Treasury Note 99.97 49,984.37 99.56 49,781 .25 1 .0 6.500 3,250.00 6.5
6.500 % Due 10.15-06
50,000 U. S. Treasury Note 99.83 492914.06 92.53 46,265.62 0.9 6.250 31125.00 6.8
6.250 % Due 08-15-23
Accrued Interest 19,553.12 0.4
124912906.29 1 ,530,907.81 30.3 995925.00 6.6
GOVERNMENT AGENCY
150,000 Federal Home Loan Bank 100.00 1505000.00 99.56 149,343.75 3.0 6.160 9,240.00 6.2
(Call 11-26-97 @100)
6.160 % Due 11-26-99
100,000 Federal Home Loan Bank 100.31 1007312.50 100.69 10%687.50 2.0 6.690 6,690.00 6.6
(Non-eallable)
6.690 % Due 05-16-01
150,000 Federal Home Loan Bank 100.00 150,000.00 99.47 149,203.12 3.0 7.010 10,515.00 7.0
(Call 12-30-97 @100)
7.010 % Due 12-30-03
. Accrued Interest 1 ,690.33 0.0
400,312.50 400,924.71 7.9 262445.00 6.6
CASH AND EQUIVALENTS
Dividends Accrued 19218.00 1,218.00 0.0 0.000 0.00 0.0
Money Market 809888.41 80,888.41 1 .6 4.900 31963.53 4.9
822106.41 82,106.41 1 .6 31963.53 4.8
TOTAL PORTFOLIO 4,3569367.56 5,048,045.01 100.0 189,888.59 3.8
3
w
. Longer Investments, Inc.
PORTFOLIO APPRAISAL
City of Fayetteville Police Pension Fund
Stock Account
June 30, 1997
Unit Total Market Market Pct. Unit Annual Cur.
Quantity Security Cost Cost Price Value Assets Income Income Yield
COMMON STOCK
650 AT & T 39.79 252866.13 35.06 22,790.62 0.7 1 .320 858.00 3.8
11500 ADT Limited 13.57 20,355.00 33.25 49,875.00 1.6 0.000 0.00 0.0
1 ,000 Alternative Resources 18.47 180472.50 20.37 20,375.00 0.6 0.000 0.00 0.0
1,300 Baldor Electric 19.55 25,418.75 29.56 38,431 .25 1 .2 0.480 624.00 1 .6
2,200 Bristol Myers Squibb 43.07 94,747.32 81 .00 178,200.00 5.6 3.040 61688.00 3.8
675 Cisco Systems Inc. 48. 14 32,496.71 67.12 45,309.37 1 .4 0.000 0.00 0.0
1 ,300 Coherent, Inc. 41 .68 54,190.00 44.50 57,850.00 1.8 0.000 0.00 0.0
1 ,500 Concord EFS, Inc. 26.76 40,138.80 25.87 38,812.50 1 .2 0.000 0.00 0.0
2,200 DSC Communications 14.40 31 ,678.58 22.25 48,950.00 1 .5 0.000 0.00 0.0
1 ,030 Diebold, Inc. 13.56 130968.70 39.00 40,170.00 1 .3 0.500 515.00 1 .3
1 ,500 EMC Corporation 36.44 54,667.50 39.00 580500.00 1 .8 0.000 0.00 0.0
2,400 Emerson Electric 33. 13 790501 .60 55.06 132,150.00 4.2 1 .080 2,592.00 2.0
1 ,500 Franklin Covey Co 21 .24 312855.00 25.31 37,968.75 1 .2 0.000 0.00 0.0
(Formerly Franklin
Quest)
1 ,950 General Electric 26.42 51 ,524.58 65.00 1260750.00 4.0 2.080 4,056.00 3.2
1 ,500 General Nutrition 19.94 29,916.90 28.00 425000.00 1 .3 0.000 0.00 0.0
1 ,900 Hanna, M. A. 21.70 41 ,236.50 28.62 54,387.50 1 .7 0.400 760.00 1 .4
• 2,000 Inco, Ltd. 33.08 66,165.00 30.06 60,125.00 1 .9 0.400 800.00 1 .3
1 ,500 Innovexlnc. 28.01 42,016.00 29. 12 43,687.50 1 .4 0. 180 270.00 0.6
300 Intel Corp 10739 329217.50 141 .81 422543.75 1 .3 0. 160 48.00 0.1
1 ,700 Jacobs Engineering 26.53 45,097.50 26.87 45,687.50 1 .4 0.000 0.00 0.0
1 ,000 Kimball International, 39.33 39,330.00 40.25 40,250.00 1 .3 1 .040 1 ,040.00 2.6
Inc.
2,000 Leggett and Platt 31 .06 62,128.00 43.00 86,000.00 2.7 0.480 960.00 1.1
1 ,000 Life Technology 23.77 23,765.83 27.75 27,750.00 0.9 0.160 160.00 0.6
534 Lucent Technologies 50.12 26,763.63 72.06 385481 .37 1 .2 0.300 160.20 0.4
1 ,600 Micron Technology 33.99 54,390.00 40.00 649000.00 2.0 0.200 320.00 0.5
2,600 Mobil Corp. 50.88 132,293.00 69.87 1819675.00 5.7 4.000 10,400.00 5.7
1 ,500 Mueller Industries 36.77 552151 .82 43.75 65,625.00 2.1 0.000 0.00 0.0
71 NCR Corp. 31 .89 2,264.49 29.62 29103.37 0.1 0.000 0.00 0.0
2,000 Natures Sunshine Prod. 16.57 33,149.50 18.12 36,250.00 1. 1 0.133 266.00 0.7
500 Nike, Inc. 55.60 27,802.50 58.37 29,187.50 0.9 0.560 280.00 1 .0
2,400 Northern Trust Corp. 23.69 56,853.08 48.37 116,100.00 3.7 0.720 1 ,728.00 1 .5
1 ,000 Nutramax Products, Inc. 9.83 9,830.00 13.12 13,125.00 0.4 0.000 0.00 0.0
2,000 Periphonics Corp. 15.74 31,477.50 21 .50 43,000.00 1.4 0.000 0.00 0.0
1 ,500 Placer Dome, Inc. 26.44 39,667.50 16.37 24,562.50 0.8 0.300 450.00 1 .8
1,200 Robert Half International 39.23 47,076.00 47.06 56,475.00 1 .8 0.000 0.00 0.0
1,700 Rotech Medical 17.71 30,100.40 20.06 34,106.25 1.1 0.000 0.00 0.0
1,100 Rubbermaid, Inc. 25.48 289028.00 29.75 32,725.00 1 .0 0.560 616.00 1 .9
1,500 Saint John Knits 38.71 589071 .15 53.62 80,437.50 2.5 0.100 150.00 0.2
800 Schwab Corporation 36.10 28,884.00 40.50 32,400.00 1 .0 0.200 160.00 0.5
1 ,300 Snap-On, Inc. 32.77 427601 .00 39.37 512187.50 1 .6 0.840 1 ,092.00 2.1
2,350 Staples, Inc. 17.72 419636.05 23.25 54,637.50 1 .7 0.000 0.00 0.0
1 ,500 Starbucks Corp. 30.19 45,282.50 38.94 58,406.25 1 .8 0.000 0.00 0.0
1 ,250 Superior Industry 23.95 297935.94 26.50 33,125.00 1 .0 0.210 262.50 0.8
International
1 ,000 U. S. Filter Corp. 32.70 322705.00 27.25 27,250.00 0.9 0.000 0.00 0.0
• 1 ,600 Valmont Industries 18.90 30,233.50 19.00 30,400.00 1 .0 0.400 640.00 2.1
1
g.. f
s
• Longer Investments, Inc.
PORTFOLIO APPRAISAL
City of Fayetteville Police Pension Fund
Stock Account
June 30, 1997
Unit Total Market Market Pct. Unit Annual Cur.
Quantity Security Cost Cost Price Value Assets Income Income Yield
25800 WalmartStores 25.91 725555.00 33.81 945675.00 3.0 0.210 588.00 0.6
1 ,000 Whole Foods Market, Inc. 23.95 23,955.00 33.12 339125.00 1 .0 0.000 0.00 0.0
15500 Woodhead Industries, 15.25 223875.00 18.87 28,312.50 0.9 0.280 420.00 1 .5
Inc.
1,700 Zero Corporation 20.71 35,211 .50 26.25 443625.00 1A 0.120 204.00 0.5
1,9952547.46 22644,561 .00 83.1 379107.70 1 .4
MUTUAL FUNDS-EQUITY
3,123.318 Vanguard Intl Equity 11 .21 35,000.00 11 .31 35,324.73 1 .1 0.090 281 . 10 0.8
Index Pacific
2,486.154 Vanguard Small 21 .63 53,767.34 22.48 550888.74 1 .8 0. 180 447.51 0.8
Capitalization Stock Fund
88,767.34 91 ,213.47 2.9 728.61 0.8
GOVERNMENT BONDS
250,000 U. S. Treasury Note 99.93 2499820.00 100.44 251,093.75 7.9 6.250 15,625.00 6.2
6.250 % Due 06-30-98
1002000 U.S. Treasury Note 99.87 99,868.00 100.53 1002531 .25 3.2 6.375 6,375.00 6.3
6.375 % Due 04-30-99
• 50,000 U.S. Treasury Note 100.06 50,030.00 100.50 50,250.00 1 .6 6.375 3,187.50 6.3
6.375 % Due 05-15-99
Accrued Interest 13460.94 0.0 _
399,718.00 403,335.94 12.7 255187.50 6.3
CASH AND EQUIVALENTS
Dividends Accrued 12218.00 1 ,218.00 0.0 0.000 0.00 0.0
Money Market 4017.50 40,317.50 1 .3 4.900 11975.56 4.9
41 ,535.50 41 ,535.50 1 .3 1 ,975.56 4.8
TOTAL PORTFOLIO 21525,568.30 39180,645.91 100.0 64,999.36 2.0
0
2
I
i
Longer Investments, Inc.
PORTFOLIO APPRAISAL
City of Fayetteville Police Pension Fund
Bond Account
June 30, 1997
Unit Total Market Market Pct. Unit Annual Cur.
Quantity Security Cost Cost Price Value Assets Income Income Yield
CORPORATE BONDS
100,000 Philip Mortis 100.54 1007543.50 101 .34 101 ,343.75 5.4 9.250 92250.00 9.1
(Non-callable) Rated -
A2/A
9.250 % Due 12-01-97
55,000 Pepsico (Non-callable) 99.31 54,618.30 100.11 552059.40 2.9 6.125 3r368.75 6.1
Rated Al/A
6. 125 % Due 01-15-98
140,000 Wal-Mart Stores 101 .83 1429565.75 99.22 1381906.25 7.4 6.500 9,100.00 6.6
(Non-callable) Rated
AAl/AA
6.500 % Due 06-01-03
Accrued Interest 3,022.20 0.2
297,727.55 2982331 .61 16.0 21 ,718.75 7.4
GOVERNMENT BONDS
150,000 U. S. Treasury Note 99.94 1492910.50 100.62 150,937.50 8.1 7.375 11 ,062.50 7.3
7.375 % Due 11-15.97
. 240,000 U. S. Treasury Note 99.95 239,882.00 100.44 241,050.00 12.9 6.250 15,000.00 6.2
6.250 % Due 07-31-98
100,000 U.S. Treasury Note 99.87 999868.00 100.53 100,531 .25 5.4 6.375 6,375.00 6.3
6.375 % Due 04-30-99
50,000 U. S. Treasury Note 99.56 49,781.50 99.94 492968.75 2.7 6.250 3,125.00 6.3
6.250 % Due 08-31-00
100,000 U. S. Treasury Note 99.00 99,000.00 105.66 1057656.25 5.7 8.000 8,000.00 7.6
8.000 % Due 05-15-01
100,000 U. S. TreasuryNote 101 .50 101,500.00 99.94 99,937.50 5.4 6.375 6,375.00 6.4
6.375 % Due 08-15-02
155,000 U. S. Treasury Note 98.34 152,425.98 104.22 1615539.06 8.7 7.250 11 ,237.50 7.0
7.250 % Due 05-15-04
50,000 U. S. Treasury Note 99.97 49,984.38 107.87 532937.50 2.9 7.875 3,937.50 7.3
7.875 % Due 11-15-04
50,000 U. S. Treasury Note 99.87 49,937.50 99.75 49,875.00 2.7 6.500 3,250.00 6.5
6.500 % Due 08-15-05
50,000 U.S. Treasury Note 99.97 497984.37 99.56 492781 .25 2.7 6.500 37250.00 6.5
6.500 % Due 10-15-06
50,000 U. S. Treasury Note 99.83 49,914.06 92.53 46,265.62 2.5 6.250 33125.00 6.8
6.250 % Due 08-15-23
Accrued Interest 18,092.19 1 .0
1 ,092,188.29 11127,571 .87 60.4 74,737.50 6.7
GOVERNMENT AGENCY
150,000 Federal Home Loan Bank 100.00 150,000.00 99.56 149,343.75 8.0 6.160 9,240.00 6.2
(Call 11-26-97 t@100)
6.160 % Due 11-26-99
100,000 Federal Home Loan Bank 100.31 1005312.50 100.69 100,687.50 5.4 6.690 6,690.00 6.6
(Non-callable)
6.690 % Due 05-16-01
•
1
f
Longer Investments, Inc.
PORTFOLIO APPRAISAL
City of Fayetteville Police Pension Fund
Bond Account
June 30, 1997
Unit Total Market Market Pct. Unit Annual Cur.
Quantity Security Cost Cost Price Value Assets Income Income Yield
150,000 Federal Home Loan Bank 100.00 1502000.00 99.47 1492203.12 8.0 7.010 10,515.00 7.0
(Call 12-30-97 @100)
7.010 % Due 12-30-03
Accrued Interest 1,690.33 0.1
400,312.50 400,924.71 21 .5 26,445.00 6.6
CASH AND EQUIVALENTS s
Money Market 40,570.91 40,570.91 2.2 4.900 1,987.97 4.9
40,570.91 40,570.91 2.2 11987.97 4.9
TOTAL PORTFOLIO 158309799.25 11867,399.10 100.0 124,889.22 6.8
•
2
City of Fayetteville Police Pension Fund
• Largest Holdings
June 30, 1997
Percent of Percent of
Equity Portfolio Total Portfolio
(Historical Cost) (NstoricalCost
Mobil 5 .2% 3 .0%
Bristol Myers-Squibb 3 . 8% 2 .2%
Emerson Electric 3 . 1 % 1 . 8%
Wal-Mart Stores 2 . 9% 1 . 7%
Inco, Ltd 2 . 6% 1 . 5%
• Leggett & Platt 2 . 5% 1 .4%
Saint John Knits 2 .3 % 1 .3%
Northern Trust Corp. 2 .3% 1 .3 %
City of Fayetteville Police Pension Fund
• Portfolio Parameters
June A 1997
Price/Earnings Multiple 29.OX
Return on Equity 19.3%
Debt to Capital Ratio 16.9%
Expected Return 15.9%
Beta 1.09
Standard & Poor's Rating A-
Market Capitalization (Percent of Equities)
Large Cap. (Greater than $5 Billion) 48 . 1 %
Mid Cap . ($400 Million - $5 Billion) 44 .9%
Small Cap. (Less than $400 Million) 7 .0%
1997 REALIZED GAINS (Through 6/30) $ 138,942.29
City of Fayetteville Police Pension Fund
• Portfolio Income and Yield
June 30, 1997
Annual Yield on
Income Book- Value
Fixed Income $ 1481089 6 .8%
Securities Only
Total Portfolio $1899889 4.4'%o
Weighted Average Maturity 3.74 Years
Weighted Average Yield-to-Maturity 6.2 %o
• Weighted Average Duration 2.9
Bonds as a percent of total portfolio = 44 . 1 %
Fixed income securities maturing in three years or less :
23 .9% of total portfolio