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HomeMy WebLinkAbout2008-01-31 MinutesBoard Members Mayor Coody Chairman Sondra E. Smith Secretary Marion Doss Position I/Retired Pete Reagan Position 2/Retired Gene Warford Position 3/Retired Ron Wood Position 4/Rctired Marshall E. Mahan Position 5/Highest Ranking 17a*ye evl e ARKANSAS Firemen's Pension and Relief Fund Meeting Minutes January 31, 2008 Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes January 31, 2008 Page l of 14 A meeting of the Fayetteville Firemen's Pension and Relief Fund was held at 11:00 AM on January 31, 2008 in Room 326 of the City Administration Building Mayor Coody called the meeting to order. Present: Mayor Coody, Marion Doss, Marshall E. Mahan, Pete Reagan, Gene Warford, Sondra Smith, Trish Leach, Accounting, Paul Becker, Finance Director, Amber Wood, Deputy City Clerk, City Attorney Kit Williams and Fire Chief Tony Johnson. Absent: Ronnie Wood Approval of the Minutes: Approval of the November 29, 2007 Meeting Minutes Pete Reagan moved to approve the November 29, 2007 Meeting Minutes. Marshall E. Mahan seconded the motion. Upon roll call the motion passed 6-0. Ronnie Wood was absent. Approval of the Pension List: Sondra Smith: Joe Reed was a volunteer fireman. His benefits now go to his wife June Reed. There will be no change in the dollar amount. Marshall E. Mahan and Joey Pierce are retiring so they will be on the March pension list drawing benefits instead of under DROP. Mayor Coody: I'm glad you're keeping up with all of that. Sondra Smith: Thanks to Trish. Mayor Coody: Thanks Trish. Kit Williams: There's no real change because instead of the money going to DROP now it's going directly to them. Sondra Smith: Yes, sir. Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes January 31, 2008 Page 2 of 14 Mayor Coody: Any other discussion, questions or comments on this? Pete Reagan moved to approve the February, March and April 2008 pension list. Marion Doss seconded the motion. Upon roll call the motion passed 6-0. Ronnie Wood was absent. Old Business: Dennis Mullens retirement classification (Tabled from the November 29, 2007 meeting.) Pete Reagan: I have had no correspondence with Dennis other than emails prior to the last meeting. I'm going to recommend that we table this indefinitely. Kit Williams: If you have sessions then anything tabled indefinitely at the end of the session would be gone but we don't really have sessions. You just meet every quarter. It will remain indefinitely until someone moves it off the table. In some ways it would be better just to get rid of it so that Sondra doesn't have to hold it in limbo forever. That means you can always bring it back anytime you want. Pete Reagan: What's the proper terminology? Kit Williams: Why don't you say deny without prejudice, that means it's like a dismissal without prejudice which means that someone can bring it back. You're denying it without prejudice because you just don't have enough information at this point and time. Gene Warford moved to deny without prejudice. Marshall E. Mahan seconded the motion. Upon roll call the motion passed 6-0. Ronnie Wood was absent. Pension Protection Act (Tabled from the November 29, 2007 meeting) Mayor Coody: Anything new on this? Pete Reagan: Trish you sent out an email. Trish Leach: I sent you an email. Did you read that? Pete Reagan: Yes. Trish Leach: Sondra forwarded me an email from NCEPRS and it looks like the 1040 has been changed to allow you to deduct the $3,000 off when you do your taxes. Kit Williams: They do it themselves without us having to do it? Paul Becker: That's what it appears to be. Trish Leach: I haven't done my taxes for this year so I haven't looked at it. Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes January 31, 2008 Page 3 of 14 Kit Williams: I followed the links back and I'm not sure if that's what it does or not. To me it looked like it broadens it so that if you have a self paying medical plan you could deduct that too. I'm just not sure. Gene Warford: I sent it to my accountant and he looked over it and he said I could take it as a line item deduction. This is my accountant not anyone else. Kit Williams: Good, scratch what I said and go with your accountant. Gene Warford: I will make a motion that the city doesn't have anything to do with it. For one thing there's too much paperwork. My plan has probably been changed three times this year. You can't be without it and I hate to take a chance of somebody not getting a payment in or getting it changed and then you lose your insurance. Then you will have to wait a year if you have a pre-existing illness before it would be covered. That's my motion. Mayor Coody: What's his motion? Kit Williams: His motion is that we don't have to do it because they have changed the law so that you can go ahead and get the benefit of the $3,000 deduction by doing it yourself. Gene Warford moved to not involve the city with the Pension Protection Act. Marion Doss seconded the motion. Upon roll call the motion passed 6-0. Ronnie Wood was absent. Mayor Coody: Very good. Thank you. It's good to get these off the agenda and get them resolved. Kit Williams: I'm glad they changed the law. Pete Reagan: The guideline comes from the IRS and you know what it's like dealing with the IRS. Sondra Smith: I'm just glad you are going to be able to benefit from it. Additional Benefit Memo's — Informational Sondra Smith: This is a copy of the letter that Trish sent out in December. We haven't met since then so I put a copy in your packet. We discussed this at our November meeting... If you have any questions on it Trish or I will be happy to answer them. New Business: Joe Reed — Deceased January 18, 2008 — Informational Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes January 31, 2008 Page 4 of 14 Marshall Mahan Retirement — March, 2008 Joey Pierce Retirement — March, 2008 Sondra Smith: We need to vote on their retirement. I haven't received the paper work yet but we need to go ahead and approve their retirement because we don't meet again until April. We will make sure to get all of their paperwork. We will have it in your next packet. Pete Reagan: If they complete the proper paperwork. Marshall E. Mahan: My investment man has all the stuff right now. Sondra Smith: Their retirement date is not until March. Marshall E. Mahan: March 1st Kit Williams: Are you our last active member? Marshall E. Mahan: Joey and I are the last active members. Pete Reagan: I will move to approve. Are we okay on the numbers? Trish Leach: There will be a final adjustment because they are being paid in February and then we will come up with the final number. Pete Reagan: We will have that for the next meeting? Marshall E. Mahan: It's the same as the amount of the DROP. Trish Leach: What they'll draw monthly is what shows on the list as their DROP amount but the pay out to them may need a little tweaking. We make sure they get everything they should get. Pete Reagan moved to approve the retirement of Joey Pierce and Marshall E. Mahan when the proper paperwork is received. Gene Warford seconded the motion. Upon roll call the motion passed 6-0. Ronnie Wood was absent. 2008 Pension Board Elections Kit Williams: Marshall you'll no longer be the highest ranking active member. We won't have any active members I guess. Pete Reagan: No, it goes to a retiree and we have to have an election. Gene Warford: I think your term is up when you retire. Marshall E. Mahan: That's what I thought. Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes January 31, 2008 Page 5 of 14 Sondra Smith: We do elections in May. May 31st is the term end date. I put you down as one that we need to replace because you will be retired. I have a copy of the letter. You can look at it and make changes if you'd like to. I tried to make it clear to the pensioners that we have no more active members. With the letter we will have a list of all the pensioners that are qualified to serve. There will be two names that won't be on there because they are already serving. We will attach that with the letter and have them send back the nomination form. Once we get the nomination forms and we determine who received nominations then we send out the actual election ballot. This will give us plenty of time to do that and get someone elected before the May 31st deadline. Pete Reagan: Looks good Sondra you did a good job on that. Sondra Smith: Marshall you won't be serving as a highest ranking member. If you get elected you will be a retired person. You can look at the letter and see if there are any changes you would like for me to make, let me know in the next week. I would really appreciate it so I can go ahead and do the mail merge and get the letters ready so we can pop them in the mail on April 1st. Pete Reagan: I think it looks good just like it is. Sondra Smith: It is my understanding that we do not send them to any widows. Pete Reagan: Right. Sondra Smith: We're going to try to do a SOP on the election process so we will have it and everyone will know from now on how it's done. Marion Doss: Did the police department change that or did someone change that? Sondra Smith: State law changed that for Police Pension but I don't think it changed for Fire Pension. I will double check. If there are any divorcees they won't receive the letter either. Current Board Member Listing — Informational Sondra Smith: I wanted you to see the term end dates. 2008 Meeting Schedule — Informational 2008 Parking Permits — Informational Sondra Smith: I just handed those out. The only person that hasn't got his is Ronnie Wood and that's because he is not going to be here today. Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes January 31, 2008 Page 6 of 14 NCPERS Leeislative Conference — Informational Sondra Smith: We have sent someone to the annual NCPERS conference in the past. I didn't know if anyone was interested in going this year. It's rather expensive but I thought I would bring it to your attention that it's time to get that in the process if you do choose to send someone. Gene Warford: Last year we didn't send anyone because it was in Hawaii. Pete Reagan: This is the legislature conference they have two conferences. Sondra Smith: The one I'm talking about is the main conference that Pete has gone to in the past. Kit Williams: Where is that going to be this year? Pete Reagan: New Orleans. I would be interested in going. I would encourage someone on this board to go also to stay up on current trends and new IRS regulations and all of that. It is a very good conference and they have a two day very intense conference just for trustees. Sondra Smith: The board usually decides and isn't it in April or May? Pete Reagan: It's May 16 through May 22. Sondra Smith: I knew if we waited until the April meeting it would not give us time to get someone registered and get all the paper work filled out. We have to fill out all of the same forms that a city employee has to fill out. Pete Reagan: There's a late fee too if you don't do it by a certain date. After April 24t1i it goes from $650 to $750. Mayor Coody: It doesn't take action does it? Kit Williams: It does because they need to authorize an expenditure of money out of the pension fund. Mayor Coody: How much roughly do you think it's going to cost? Sondra Smith: Maybe $2,500 for the registration fee, flight and hotel rooms. Pete Reagan: I'm going to say closer to $3,000. Gene and I sat down and roughed it. Gene Warford: I make a motion that we send Pete if he wants to go. Kit Williams: And authorize expenditure up to $3,000. Gene Warford: $3,000 yes. Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes January 31, 2008 Page 7 of 14 Sondra Smith: Why don't we just move that we send one board member and if you want to send two then make a motion to send two. Then if something happens and Pete can't go then maybe someone else can fill his place but we will get one person registered. Gene Warford: Okay we will register one person. Mayor Coody: The motion is to send a representative to the conference. Gene Warford: Yes. Kit Williams: And to authorize the expenditure up to $3,000. Pete Reagan: This is the annual conference not the legislative conference. Gene Warford: I don't like spending the $3,000 but we also need to stay up on this or we won't have knowledge about what we are doing. Gene Warford moved to send a board member to the annual NCPERS Conference with an expenditure of no more than $3,000. Marshall E. Mahan seconded the motion. Upon roll call the motion passed 6-0. Ronnie Wood was absent. Sondra Smith: If the expenses are over $3,000 how do we want to do that? Kit Williams: We will just come back and do it in April because we will have a meeting before that anyway. We can make a minor adjustment in April. Sondra Smith: Okay. Kit Williams: If you estimate it at $3,000 surely you won't be above that. Sondra Smith: Are you going to book your own airline like you usually do? Pete Reagan: Yes. Sondra Smith: Okay. Are you going to go ahead and put it all on your credit card like you have done in the past and then we will fill out the paperwork? Pete Reagan: Yes. I'll send you an email receipt. The airlines are very good about sending an email receipt. Sondra Smith: As long as I get the receipt so I can turn it in to Accounting. Merrill Lvneh — Informational Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes January 31, 2008 Page 8 of 14 Sondra Smith: John Turbeville wants to send the pensioners to the horse races so he called and asked for your addresses. He is going to invite you to the horse races. Remember if you go you have to put it on the form that Trish gave you. Pete Reagan: And assign a dollar amount to it. Sondra Smith: Yes. Local Pension Fund Report 2007 — Informational Sondra Smith: This is the report that the Mayor gave to the City Council by state law. We have to do that every year and so I wanted to provide you with a copy of what the Mayor reported to the Council at the City Council meeting. We will have to do it again next year in January. Longer Investments: Economy and Stock Market Update — Informational Sondra Smith: I included a copy of a letter that we received from Longer when the market started bouncing. You probably received this letter at home but I wanted to go ahead and put it in your packet. Ouarterly Report Dated December 31, 2007 A copy of the Longer Investments quarterly report was given to the board. Sondra Smith: There is also a copy of the quarterly report. Probably in the future because of going to quarterly meetings you won't see a quarterly report and monthly report. You will just see the quarterly report. That is how they do it for the Police Pension. Pete Reagan: Do they email you the monthly report? Sondra Smith: No. On the Police Pension we just get a quarterly report. We can request them to do that and I'm sure they would be happy to do that if you want them to and then I can email it out. I'm don't know if you are aware but when I send out the minutes for you to review I also send them out to other people that have requested them. I also send them to Pat Boudrey so that she can forward them out to everyone. I think it's good that everybody that wants a copy of those has them. She has several on an email list and she has volunteered to do that for me so that I didn't have to set up my own group. Gene Warford: That's a good deal. Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes January 31, 2008 Page 9 of 14 Sondra Smith: They are the draft minutes. Pete Reagan: I don't think we need to send out draft minutes. I think we need to send out the final. Marion Doss: I was thinking about that that might be a good point because there could be something that we want to change. Maybe we need to send out the amended minutes. Sondra Smith: After the meeting? Marion Doss: I like to get the draft minutes because I can read those the day before. Sondra Smith: I can send the draft minutes to the pension board then after the meeting I can send out the approved minutes. Pete Reagan: I think that would be the best way to do that. Sondra Smith: I would be happy to change that. Pete Reagan: There could be something wrong in there. Investment Report Gene Warford: Are we making money today? Elaine Longer: Today we are. It's been a fast start to the year. We closed the year and we had a really good year last year. Then we came into January and the world shifted with the unemployment numbers that were released the first week of January and the ISM Manufacturing Index, the world shifted completely to discounting a recession. It happens so fast these days. It took only about two or three trading sessions. We went to a much more defensive posture in the first week of January. Page one of your report is where we ended on December 31. You had about 44.5% of portfolio in stocks and 8% in foreign. Your total equity weighting was about 53% at the end of the year. We need to have a vote to approve that because we were over the 50%. Equity Overage Pete Reagan moved to approve the equity overage. Gene Warford seconded the motion. Upon roll call the motion passed 5-0. Ronnie Wood was absent. Elaine Longer: We quickly went into a defensive posture at the mid point of the month. When we sent out the interim newsletter we had dropped to about 37% equities and as of yesterday we are up closer to about 40%. We are still fairly defensive. We can go all the way up to 55%. There's a lot going on and it has to do with the economy, the banking system, the sub prime loans, refinancing, and the mortgage originators. The Fed has come galloping to the rescue in a very dramatic way this month with 75 basis points in the last week and 50 basis points yesterday. Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes January 31, 2008 Page 10 of 14 When I wrote the interim newsletter we expected a 50 basis point cut in January and low and behold within the last week we have had 125 basis points cut. So we have deployed some more cash today into the market and part of the reason is because now your alternative investment to owning stocks is a two year treasury that yields 2.1%. Money market is around 2%, the five year treasury is about 2.5% and the ten year is 3.5% to 3.75%. As the interest rates have come plummeting down so quickly your alternatives to owning stocks are not very attractive. There are a number of stocks that we've been buying with 3.5% and 4% dividend yields in a taxable account that equals a 4.5% to 5% taxable equivalent yield because dividends are only taxed at 15% and bonds are taxed at full income tax rates. Even in some of our bond accounts we are buying stocks, like Pfizer that has a 5.5% dividend yield, we can't get anything close to that in a bond so we are using Pfizer as a bond. The difference in valuation relative attractiveness between stocks and bonds has really gotten so stretched that I think that even with the market really fully discounting a recession at this point there's still value to be found in the stock market. With the Feds most recent actions of 125 basis points we started moving more cash into the market. The earnings for the financial stocks are down 95% for the fourth quarter and so the earnings for the S&P 500 are going to show a 20% drop for the fourth quarter but if you exclude the financial stocks the earnings elsewhere are up 11.5%. We've had this dramatic impact with bad debt and charge offs. You've probably read in the newspaper about Citigroup it's like the numbers just keep coming five billion, thirteen billion, and fifteen billion. At some point you get kind of numb to the billions that are being charged off. I do think there is more to come. We are very underweight the financials we moved to a significant underweight last summer. A lot of that was based on our technical analysis that we use in conjunction with our fundamental analysis. We went from a 20% weighting of financials to about a 4% weighting before the end of July, then everything starting hitting. For instance we sold Citigroup at 46.5 and it is 27.5 today off a low of 24. I haven't bought it back yet and I'm not ready to because I think we still don't know the full impact of the charge offs there, the dividend has been cut by 40%. When you look at these financial stocks you can't value them based on price to earnings because you don't know what earnings are going to be. You can't value them based on price to book because they keep taking these billions of dollars of charge offs which reduces book value and you can't really rely on price to dividend or dividend yield because we are still in the process of cutting dividends. We've just kind of stayed out of that arena and we are being careful about getting back into financials. The earnings on companies like GE, IBM, Emerson Electric, Minnesota Mining, United Technologies, these big multi national corporations that are benefiting from the overseas growth have continued to come through with very good earnings. So we have added some names in that arena. That's the nut shell of it all. It's been a really dramatic start to the year and it's interesting to see the markets respond in intemet speed to such disequilibrium's that hit. I was expecting from the Feds 25 basis points which would have given us 100 during the week which I thought was plenty generous but they came with 50. I think they just want to hit this thing over the head with a sledge hammer. We are at 3% Fed funds which moves the prime rate to 6% down from 8.25% just six months ago. This is all going to have an impact on banks and the ability of the home owner to refinance. I think this is intentional with the Feds to help homeowners who are in trouble to refinance at these lower rates. I think they will keep them low until we see some improvement. Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes January 31, 2008 Page 11 of 14 Page five is a summary of your realized gains and the income for the year. Total gains were $417,000 and income was $231,000. Page six is your bond summary. Your average yield to maturity on the bonds is 5.4% and the average maturity is under five years. That compares to a treasury yield in the five year maturity of about 2.5%. We still have a good income yield locked in. We have had to use some preferred debt like the GE preferred debt that gets you over 6%. We've recently bought an AT&T preferred debt that is over 6% and A2/A rated so we had to sort of branch out from the government agencies. We bought a 5% government agency this week that is a ten year with a one year call feature. We've had to get a little bit more creative to maintain the income yield but you still have almost double what is available in the five year treasury. Page seven shows your largest holdings. Nothing much has changed with that. Wal-Mart today is trading at 50.5. It's been performing really well. It's like the last man standing in the retail sector. We did add Best Buy to the portfolio this past week as well. Johnson & Johnson, General Electric, Oracel Corp. and Microsoft, across the board each one of these major corporations has recorded excellent earnings. Page eight is a copy of your contributions and distributions from August of 2002 through the end of the year. The contributions coming into the portfolio have been about $824,000 against distributions of $5.4 million. Page nine is a summary of performance. The equity return was 11.1% and that compares to the S&P of 3.5 on a cash basis and 5.5 with compounding of dividends. The DOW last year did 6.4%. The smaller cap indices like the Russell 2000 which are small companies actually had a negative 2.8% return. They've been the hardest hit in this first month of the year down about 11% month to date while the large cap indices are down 8 or 9%. Still the best place to be in the market is these large international corporations that can tap into the growth over seas and off set the sluggishness that we are seeing in the United States economy. The international funds were up only 2%, mostly that's because Japan was down about 9% last year. Bonds returned 5.7% so the total return was 8% for last year with everything included. The compound annual from the account inception has been 7.1% and that is above the 6% actuary assumption in your plan. That's net of all expenses. Your compound annual stock return has been 10.4% and that compares to the indices below. I think it was right for us to be above that 50%, we keep bouncing up to the 55%, and this year we are a little bit more defensive getting off the starting point. As of yesterday with the market indices down anywhere from 8% to 11% the portfolio is down about 3.9%. We have ample reserves to take advantage of this. We're just using our disciplines and picking our entry points real carefully. We have had some stops go off which we control the down side especially on a new position, if it satisfies our valuations we are usually buying within a 3% to 5% support level, that needs to hold or else the stocks actually going to go lower. It's been messy we have had some stops go off but in a market like this that's okay. If you lose 2% or 3% and you come back into the stock 10% or 15% lower that's still good. We've had to really adhere to our disciplines and be very careful in this market. Today since the market opened at 8:30 we had a 300 point swing. There have been days that we had 600 points in a day and many that have been 300 or 400 points. Pete Reagan: Do you feel the election process plays a role in this? Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes January 31, 2008 Page 12 of 14 Elaine Longer: Yes, I think so and as we get closer to the election I think the market will start to discount who's going to be elected. It's hard to tell about the democratic side but I think they have picked the front runner on the republican side which is probably McCain. I've been looking at this election, without talking democrat or republican, looking for whom is the candidate who can draw the moderates from the other parry, the cross over votes, and I really think in the whole field McCain is probably the only one who can. It's hard to tell on the democratic side if it's going to be Obama or Hillary. I would still say its most likely going to be Hillary but you don't know what the platforms are at this point in time. The biggest risk as far as the stock market is concerned is if we get into an administration whose policies are less capital friendly, for instance, if they change capital gains tax, or the tax treatment of dividends. I think that could affect the stock market. It's going to be an interesting election season. Pete Reagan: We are in this down turn now and I've ridden quit a few of these cycles and when the vice presidential candidate is picked that will also cause a fluctuation in the market. Elaine Longer: The good news about the volatility, I wrote about this last year in one of our newsletters, the good news is the market arrives at a point of equilibrium so much faster than what it use to take. Instead of six or twelve months to discount an economic event it's more like two trading sessions. It's very volatile out there and there's a lot going on. It affects the currency markets, gold markets, fixed income market, and the equity market. You can see it all happening on the screens but it arrives at that point of equilibrium very quickly. When I sent out that interim letter I didn't think I'd be redeploying cash before the end of the month statements went out but this is the kind of market that we are operating in. We went down 10% or 11% at one point this month. Most people who were in an index fund last year made 5.5% in stocks. So within the first month of the year they have given up all their gain from last year by a factor of two. That really adjusted valuation very quickly. Gene Warford: A market like this also makes opportunities out there for bargains. Elaine Longer: It does. We bought Schlumberger at 90 and it hit our stop within twenty four hours at 88 but that was a very important level for it to hold. It went down into the 60's and it's since come back up to 74. If it gets back down around 70 to 68 I'll go back in and put Schlumberger back on. That's the kind of situation that we are looking at. There are opportunities because it's so volatile. Gene Warford: I thought about buying Apple right before they come out with earnings and I'm glad I didn't. Elaine Longer: Apple is down from 200 to about 130. We added China today to the International side of the portfolio but the price at which we are buying is almost a 40% pull back off its 4th quarter high. That is the thing about the emerging markets and China and India they are so dependent on the US that there is a saying when the US gets cold they catch pneumonia. You can see it with 10% down for the US market and 40% off in China and there is a very close stop there within about 2% to 3%. That's a great opportunity because we haven't been able to get an allocation into China. That feels more comfortable than buying it as it was running away. Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes January 31, 2008 Page 13 of 14 Pete Reagan: You were doing monthly reports before we switched to quarterly meetings, can you do a monthly email quickie type report? You don't have to give us all the stocks and how much they are up or down. Would that be too much trouble for you? Kim Cooper: Just the report that shows what you own? Similar to what we were doing on a monthly basis? Sondra Smith: Yes. Kim Cooper: I think we were just sending you a report of what you own. Pete Reagan: I don't know that we need that as we do the indexes, our percentages in stock, are they up or down, and our fixed income. Sondra Smith: That was in the monthly wasn't it? Pete Reagan: Like a tally sheet. Elaine Longer: I know we did this one quarterly but we will have to look at the monthly. Kim Cooper: We can do what we did for you monthly and just send it by email. Pete Reagan: I don't want to cause you too much work. I want you to be watching those computers. I don't want to create anymore work for you than you need. Kim Cooper: Our computer systems have those reports on it so we can just copy them and email them. Do all of you have email addresses on file with Sondra? Pete Reagan: Yes. Kim Cooper: I will get your addresses and send them. Sondra Smith: I think Pete just wants what you've been giving us at the monthly meetings. Pete Reagan: Yes, but I don't know if they need to calculate all of that if they can just give us a tally sheet. Sondra Smith: This is just four pages. It shows your stocks. Pete Reagan: Does it show everything that we own? Sondra Smith: Yes. Elaine Longer: Yes and the asset allocation. The performance report we just do at the end of each quarter. Pete Reagan: We probably need a motion now that we're meeting quarterly to make a change to approve the overages quarterly. Is that in our investment report? Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes January 31, 2008 Page 14 of 14 Sondra Smith: I think it just says that we will approve the overages. Does it say on a monthly basis? Kim Cooper: On page three it says a report to the board at their next monthly meeting. The board will then authorize or reject the variance. So we can just amend the policy and say quarterly. We will change the policy. Sondra Smith: You will all have to sign it again. Pete Reagan: Let's recommend that change and then we will have it for our next meeting to sign. Okay, thank you very much. We appreciate you and if you need us you know where we are at. Meeting Adjourned at 12:00 PM