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HomeMy WebLinkAbout2007-09-25 - Agendas - Final Firemen's Pension and Relief Fund Meeting Agenda September 25, 2007 A meeting of the Fayetteville Firemen's Pension and Relief Fund will be held at 11 :00 AM on September 25, 2007 in Room 326 of the City Administration Building. Approval of the Minutes: • August 30, 2007 Meeting Minutes Approval of the Pension List: • October, 2007 Pension List Old Business: • Dennis Mullens retirement classification (Tabled from the August 30, 2007 meeting.) • Pension Protection Act (Tabled from the August 30, 2007 meeting) New Business: • NCPERS Dues Longer Investments: • Monthly Report FIREMEN'S RELIEF AND PENSION October 10 THE FOLLOWING ARE THE OBLIGATIONS OF THE FIREMEN'S RELIEF FUND FOR THE MONTH LISTED ABOVE YOU ARE HEREBY INSTRUCTED TO ISSUE CHECKS TO THE PAYEES, IN THE AMOUNTS SHOWN , AND FOR THE PURPOSE SO STATED. Added to Aug Check DATE OF Regular Mo Year To Date Act 1373 EMP#RETIREMENT NAME Benefit Reg Benefit iture Supplement Q 79 11/99 ARMSTRONG (DILL), PAMELA 1,812.74 18,127.40 0.00 R 177 4/04 BACHMAN, EDDIE 2,618.55 26,185.50 754.20 S 74 3/86 BAIRD, JULIA 1,802.08 18,020.80 754.20 V 63 5/72 BOLAIN, ANN 109.27 1,092.70 150.84 R 68 7/99 BONADUCE, MICHAEL 2,988.76 29,887.60 754.20 S 44 9/86 BOUDREY, BETTY MRS. 2,477.42 24,774.20 754.20 R 45 9/86 BOUDREY, HOWARD 2,089.28 20,892.80 754.20 R 49 7/88 BOUDREY, JACK 1,647.63 16,476.30 754.20 V 5 5172 CASELMAN,ARTHUR 131.13 1,311.30 150.84 R 57 5/90 CATE, ROY 1,788.90 17,889.00 754.20 V 6 4/68 CHRISTIE, ARNOLD 109.27 1,092.70 150.84 V 8 10/76 COUNTS, WAYNE 109.27 1,092.70 150.84 R 77 11/99 DILL,GARY JOHN 1,812.75 18,127.50 754.20 188 12/05 DOSS, MARION H 5,376.91 53,769,10 754.20 R 11 2176 FARRAR,ALONZO 998.86 9,988.60 754.20 R 192 4/06 FARRAR, DANNY 4,155.36 41,553.60 754.20 R 38 5/84 FRALEY, JOSEPH G. 1,768.12 17,681.20 754.20 R 170 5/03 FREEDLE, LARRY 3,816.75 38,167.50 754.20 R 92 03/02 GAGE,TOMMY 2,596.69 25,966.90 754.20 V 34 6179 HARRIS, JAMES E. 109.27 1,092.70 150.84 V 70 11/99 HARRIS, MARY RUTH 109.27 1,092.70 150.84 Q 182 10/04 JENKINS, EILEEN 1,788.75 17,887.50 R 93 06/02 JENKINS, JOHN 1,788.76 17,887.60 754.20 R 86 07/01 JOHNSON,ROBERT 3,073.47 30,734.70 754.20 R 64 4/95 JORDAN, CHARLIE 2,274.95 22,749.50 754.20 S 76 5/88 JUDY, JAN 1,647.63 16,476.30 754.20 R 37 3/84 KING,ARNOLD D. 1,522.37 15,223.70 754.20 R 54 5/89 KING,ARVIL 1,711.21 17,112.10 754.20 V 12 3/60 LANE, HOPE MRS, Deceased 6/26/07 0.00 655.62 R 13 10/67 LAYER, MERLIN 456.22 4,562.20 754.20 R 173 12/03 LEDBETTER, DENNIS 3,775.80 37,758.00 754.20 V 181 10/04 LEE, VIOLA LOUISE 109.27 1,092.70 150.84 R 51 10/88 LEWIS, CHARLES 1,647.63 16,476.30 754.20 R 40 9/85 LOGUE, PAUL D. 2,868.28 28,682.80 754.20 R 50 9/88 MASON, LARRY 1,631.25 16,312.50 754.20 R 39 4/85 MC ARTHUR, RONALD A. 1,753.74 17,537.40 754.20 V 35 2/82 MC CHRISTIAN, DWAYNE 109.27 1,092.70 150.84 R 15 4177 MC WHORTER, CHARLES 1,334.51 13,345.10 754.20 R 29 8/81 MILLER, DONALD 1,304.07 13,040.70 754.20 R 73 2/00 MILLER,KENNETH 3,180.02 31,800.20 754.20 V 42 2/86 MOORE, JAMES H. 109.27 1,092.70 150.84 V 176 4/04 MORRIS, DIXIE E. 125.66 1,256.60 150.84 R 48 7/88 MULLENS, DENNIS W. 2,191.30 21,913.00 754.20 R 184 3/05 NAPIER, LONNIE 3,518.28 35,182.80 754.20 R 196 01/02 ONEAL, TEDDY 4,120.99 41,209.90 754.20 R 46 5/88 OSBURN, TROY 1,899.66 18,996.60 754.20 R 81 02/01 PHILLIPS,LARRY 2,765,09 27,650.90 754.20 R 53 2/89 POAGE, LARRY 2,346.70 23,467.00 754.20 R 186 06/05 REAGAN, PETE 3,535.71 35,357.10 754.20 V 22 4/73 REED, JOE 109.27 1,092.70 150.84 S 172 12/03 SCHADER, MADGE 1,386.01 13,860.10 754.20 R 41 9/85 SCHADER, TROY 1,524.99 15,249.90 754.20 R 190 04/06 SHACKELFORD, GLEN 3,647.18 36,471.80 754.20 S 83 03/01 SKELTON, KIMBERLY 2,434.98 24,349.80 754.20 R 36 5176 SPRINGSTON, CARL 806.19 8,061.90 754.20 S 90 03/02 STOUT, IMOGENE W. 767.80 7,678.00 754.20 R 165 12/02 TATE, RALPH 3,668.10 36,681.00 754.20 V 65 3/66 TUNE, BILLIE SUE 136.59 1,365.90 150.84 R 71 1/00 WARFORD,THOMAS 2,502.72 25,027.20 754.20 R 28 7/68 WATTS, DONALD 437.09 4,370.90 754.20 R 88 01/02 WOOD,RONNIE D 3,077.15 30,771.50 754.20 R 52 9/88 WRIGHT, RANDALL 1,691.34 16,913.40 754.20 113,207.55v 1,132,731.12 37,257.48 DATE OF Regular Mo Year To Date Act 1373 EMP#RETIREMENT NAME Benefit Reg Benefit aura Supplement DROP DATE DROP EMPLOYEES NEW BENEFITS 03/01/03 MAHAN, MARSHALL 4,077.28 03/01/03 PIERCE, JOEY 3,647.18 WE,THE UNDERSIGNED, DO SOLEMNLY SWEAR THAT THE ABOVE OBLIGATIONS ARE JUST AND CORRECT;THAT NO PART THEREOF HAS BEEN PREVIOUSLY PAID; THAT THE PENSION PAYMENTS SO CHARGED ARE IN ACCORDANCE WITH THE ACTIONS OF THE BOARD OF TRUSTEES OF THE FIREMEN'S RELIEF AND PENSION FUND; THAT THE SERVICES OR SUPPLIES FURNISHED,AS THE CASE MAY BE, WERE ACTUALLY RENDERED OR FURNISHED;AND THAT THE CHARGES MADE THEREFORE DO NOT EXCEED THE AMOUNT ALLOWED BY LAW OR THE CUSTOMARY CHARGE FOR SIMILAR SERVICES OR SUPPLIES SECRETARY CHAIRMAN AND PRESIDENT ACKNOWLEDGEMENT STATE OF ARKANSAS ) COUNTY OF WASHINGTON) SWORN TO AND SUBSCRIBED BEFORE ME THIS DAY OF 2006. NOTARY PUBLIC MY COMMISSION EXPIRES : Board Members Firemen's Pension and Relief Fund Mayor Coody Chairman Board of Trustees Meeting Minutes August 3Q 2007 Sondra E. Smith Secretary Marion Doss Position 1/Retired Page 1 of 5 Pete Reagan Position 2/Retired Gene Warford Position3/Retired ARKANSAS ` Ron Wood Position 4/Retired Marshall E. Mahan Position 5/Highest Ranking Firemen's Pension and Relief Fund Meeting Minutes August 30, 2007 A meeting of the Fayetteville Firemen's Pension and Relief Fund was held at 11 :00 AM on August 30, 2007 in Room 326 of the City Administration Building Mayor Coody called the meeting to order. Present: Mayor Coody, Pete Reagan, Marshall E. Mahan, Marion Doss, Trish Leach & Wendy Moore, Accounting, Deputy City Clerk Amber Wood, City Attorney Kit Williams. Absent: Gene Warford, Ronnie Wood and City Clerk Sondra Smith. Approval of the Minutes: Approval of the July 26, 2007 Meeting Minutes Pete Reagan moved to approve the July 26, 2007 Meeting Minutes. Marshall E. Mahan seconded the motion. Upon roll call the motion passed 4-0. Gene Warford, Ronnie Wood, and City Clerk Sondra Smith were absent. Approval of the Pension List: Approval of the September, 2007 Pension List Mayor Coody: Are there changes. Amber Wood: There are no changes. Pete Reagan moved to approve the September, 2007 Pension List. Marion Doss seconded the motion. Upon roll call the motion passed 4-0. Gene Warford, Ronnie Wood, and City Clerk Sondra Smith were absent. Old Business: Dennis Mullens retirement classification (Tabled from the July 26, 2007 meeting.) Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes August 30,2007 Page 2 of 5 Pete Reagan: Mr. Chairman, I just got off the phone with him and his accountant is out of town again. I asked him to provide us with some kind of documentation from his accountant or from the State of Arkansas for the next meeting and he promised that he would. Mayor Coody: So it stays tabled. Pete Reagan moved to table Dennis Mullens Retirement Classification to the September meeting. Marshall E. Mahan seconded the motion. Upon roll call the motion passed 4-0. Gene Warford, Ronnie Wood, and City Clerk Sondra Smith were absent. Pension Protection Act (Tabled from the July 26, 2007 meeting) Kit Williams: Was this the fun thing I got to read? I have a copy of this bill from Arkansas if you would like to see it. Pete Reagan: We got a copy of it Kit. Kit Williams: Did I give you a copy of that. Pete Reagan: Yes. 1484. Kit Williams: It said nothing that we needed to hear Mayor. It was about other technical changes to the Arkansas Income Tax Act. It talked about health savings accounts but not premium payments and how they would be done. Mayor Coody: It doesn't have any bearing on this issue. Kit Williams: Not on this issue. Pete Reagan: This is what the Arkansas Municipal League, Don Zimmerman, put out that is affecting us. Kit Williams: I couldn't figure out how it could. Pete Reagan: Unless we had a health savings account then it would. Kit Williams: I don't know if even the health savings account would. Pete Reagan: No, it doesn't affect us. Kit Williams: It might affect active duty. Mayor Coody: What kind of response did you get to the email you sent out to everybody? Pete Reagan: I have received very few responses. I have two people including myself that are interested in it. The email has been out for about three weeks. I think we should let it go for awhile and see if anything else comes in. Letters were sent out by Pat Boudrey, who is our Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes August 30, 2007 Page 3 of 5 secretary for the retirees, to those folks that don't have email addresses. I think we should put that on the agenda for the next meeting. Mayor Coody: So table this? Kit Williams: I looked at Section 33 of that act. Basically it was adopting federal rules saying that you can deduct health savings accounts not only for Federal income tax purposes but also for State income purposes. Pete Reagan moved to table Pension Protection Act to the September meeting. Marshall E. Mahan seconded the motion. Upon roll call the motion passed 4-0. Gene Warford, Ronnie Wood, and City Clerk Sondra Smith were absent. New Business: Stephens Inc. — Informational Amber Wood: Sondra provided a copy of a memo from Stephens, Inc in your packet. It is just an informational item. Pete Reagan: This is from Larry Middleton who is the advisor for LOPFI. He is an investment advisor for all the investors for LOPFI. I read this and basically what he is doing is giving us the status of new legislation that was passed dealing with old pension funds. Kit Williams: Is there anything in there that we need to look at? Pete Reagan: No, other than it sounds like to me that he would like to come up and give us his sales pitch. Kit Williams: I don't think we can unless you're going to open it up and do an RFQ for everybody to come back again. Kim Skelton, Enrollment Letter — Informational 2007 Future Supplement Benefit Memo — Informational Pete Reagan: That was sent out with the checks. Drop Interest Checks - Informational Lonp,er Investments: Monthly Report Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes August 30,2007 Page 4 of 5 A copy of the Longer Investments monthly report was given to the board. Longer Investments Informational Letter A copy of the Longer Investments Informational Letter was given to the Board Informational Marshall E. Mahan: I will not be able to be here for next months Pension Board meeting. Kit Williams: When is that scheduled? Marshall E. Mahan: The 27th Mayor Coody: The Police meet quarterly. Pete Reagan: We can't it is state statue. Kit Williams: I won't be here for that one either because that is during a four day jury trial. Pete Reagan: I will be out of town as well on the 27th and I will also be out on the 20th. Marshall E. Mahan: Could we move it to Tuesday or another day that week? Amber Wood: Thursday, September 20th is available. Marshall E. Mahan: Pete is out of town on the 20th. Amber Wood: Tuesday the 25th the room is available at the same time. Kit Williams: I think that is when my trial starts. Mayor Coody: I'm not sure what my schedule looks like. I plan on being here. Pete Reagan: Can we set that as tentative if the Mayor and Sondra can make it. Amber Wood: On the 25th Mayor Coody: Sure. Amber Wood: We can do that. Marion Doss: If we are going to change the date we need to make sure that a letter gets to Dennis Mullens about the date change. Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes August 30, 2007 Page 5 of 5 Pete Reagan: I'll take care of that. What was the date again? Amber Wood: Tuesday, September 25th at 11 :00 AM. Meeting Adjourned at 11:09 AM (9%25/2007) Sondra Smith - Fwd: Dennis Mullens Pagel From: Sondra Smith Subject: Fwd: Dennis Mullens ----Original Message----- From: Marcresa Hattenhauer <marcresahCcD_jja.net> To: apffprez(c_aol.com Sent: Mon, 24 Sep 2007 11:17 am Subject: FW: Dennis Mullens From: Marcresa Hattenhauer fmailto:marcresah anjja.net] Sent: .09/24/2007 9:22 AM To: 'apffpres(a_aol.com' Subject: Dennis Mullens Pete: Dennis asked me to send you an e-mail to give you an update on the tax situation with the state of Arkansas. Jerry and I spoke with a state auditor, Amanda Johnson, last week who has reassured us that this matter can be resolved. She said that she had spoken with other auditors in her area who all agree. I have sent her the information we originally sent the IRS concerning the retirement— doctor's letters. I also had to send her proof that the IRS did not change his tax return and that he did receive his full refund in 2005 and 2006. She said that if I could provide that proof, she would make the correction to the changes the state made and get the levy release and his 2005 refund. She said also that they follow the federal code on tax cases. In other words, if the IRS agrees they follow suit. We haven't filed his 2006 due to all the problems with 2005 and the state reopening 2003-2004. She will send Dennis a letter of change in 30- 45 days. She is hoping to get everything resolved sooner than later. She and I spoke for a long time on this matter and she made the comment that if the 1099 is not changed Dennis will have this tax problem every year, which is crazy. Please table the discussion concerning Dennis until we can get the information from the state that we need to show that it is OK to change his retirement. If proof that the IRS gave him his full refund and if the state is going to do the same, I am not sure what else it is going to take to get this changed. Let me know if there is something else we can do. Thank you. Marcresa Hattenhauer Office Administrator Jackson, Erwin & Williams Phone: 479-527-9999 Fax: 479-527-9997 •2 . The Voice for Public Pensions National Conference on Public Employee Retirement Systems 2008 Membership Renewal 202-624-1456 RECEIVED � Cn � / 1-877-202-5706 Invoice Message: R EC E ! V E D FAX 202-624-1439 info@NCPERS.org FIRST NOTICE SEP 10 2001 www.NCPERS.org CITY OF FAYETTEVILLE Please verify your contact information, note any updates in the space provided: CITY CLERK'S OFFICE Name: Sondra Smith Organization: Fayetteville Fire Fighters Pension & Relief Address: 113 West Mountain Street, Fayetteville, AR 72701 Phone: 479-575-8323 Fax: 479-718-7695 NOW AVAILABLE: Email: city clerk@ci.fayetteville.ar.us PAY YOUR DUES ONLINE! Please check the appropriate size of your fund: Log on to www.NCPERS.org and then click ❑ i - 4,500 Members on Member Login in the top right hand corner ❑ 4,501 — 10,500 Members of the screen. ❑ 10,501 — 16,500 Members ❑ 16,501 and over Remit to: NCPERS IF YOU ARE NOT PAYING USING OUR ONLINE PAYMENT OPTION; PO Box 79819 PLEASE RETURN THIS PORTION WITH PAYMENT IN FOR PROPER PROCESSING: Baltimore, MD 21279-0819 ORGANIZATION NAME MEMBER DUE DATE NCPERS NUMBER Tax ID # 2008 Annual Membership $150 Fayetteville Fire Fighters Pension & Relief 23510 01/01/2008 310729205 Dues If you would like to pay by credit card, complete the following information and fax to 202-624-1439 or mail to the address above. OAmerican Express Account # OMasterCard Exp. Date OVisa CC Verification Code: Card Holder's Name: Billing Address: Signature: ---------------------------------------------------------------------------------------------------- KEEP THIS PORTION FOR YOUR RECORDS: MembershipRenewal Receipt ORGANIZATION NAME MEMBER DUE DATE NCPERS NUMBER Tax ID # 2008 Annual Membership $150 Fayetteville Fire Fighters Pension & Relief 23510 01/01/2008 310729205 Dues National Conference on Public Employee Retirement Systems 444 N. Capitol St. NW Suite 221, Washington, DC 20001 In order to help you with your budgetary planning, we put together the following list of NCPERS Conferences and Educational Opportunities scheduled for the remainder of 2007 and all of 2008. If you have any questions, please call NCPERS at (877) 202-5706. 2007 Conferences and Educational Programs Public Sector Health Care Symposium & Public Safety Employee Pension & Benefits Exhibition Conference October 1-3, 2007 October 14-17, 2007 NCPERS Members: $550 NCPERS/PSEP&BC Members: $550 Exhibitors: $1,400 Exhibitors: $1,500 Hyatt Regency Chicago Hotel Zoso Chicago, IL Palm Springs, CA Room Rate: $269 Ronin Rale;;, $199 ZOOS Conferences and Educational Programs Annual Legislative Cciiifereace, "Program for Advanced.. Trustee Studies February 4-6, 2008 : July 22-24, 2008 Fund Member: $200 . Harvard Law School Corporate Member $550 Caxibridge, MA Holiday Inn on the Hill Tuition; $550 Washington, DC Public Sector Health Care Symposium & Trustee Educational Development Seminar Exhibition (TEDS) September 9:-10, 2008 May 16-17, 2008 SariFrancsco, CA Fund Member: $350 NCPERS lylembers/Invitd Guests: $550 Hilton New Orleans Rivcrsitde Exhib�tors.`$1,400 New Orleans, LA Publie Safety Employee Pension & Benefits Annual Conference & Exhibifion Confei once May 18-22, 2008 October 12-15, 2008 Fund Member: $650 Palm Sprzngs, CA Guest/Spouse: $150 NCPERS Members: $550 Corporate Member: $795 Exhibitors: $1,500 Member Exhibitors: $1,000 Hilton New Orleans Riverside New Orleans, LA Longer Investments Inc. PORTFOLIO APPRAISAL Fayetteville Fire Pension and Relief Fund U/A DTD 6-18-86 August 31, 2007 Unit Total Market Pct. Unit Annual Cur. Quantity Security Cost Cost Price Value Assets Income Income Yield Common Stock 2,175 AT&T 26.02 56,589.50 39.87 86,717.25 1.0 1.420 3,088.50 5.5 4,750 Applied Materials Inc. 16.08 76,402.33 21.36 101,460.00 1.2 0.240 1,140.00 1.5 500 B.P. Amoco PLC A.D.S. 39.59 19,795.00 67.36 33,680.00 0.4 2.600 1,300.00 6.6 1,560 Barclays PLC 39.80 62,095.33 49.60 77,376.00 0.9 2.990 4,664.40 7.5 2,225 Barrick Gold Corp. 30.09 66,950.25 32.52 72,357.00 0.8 0.300 667.50 1.0 1,750 Chevron Corp. 36.34 63,596.05 87.76 153,580.00 1.7 2.320 4,060.00 6.4 2,400 Citigroup 38.13 91,500.09 46.88 112,512.00 1.3 2.160 5,184.00 5.7 2,200 Coca-Cola 41.77 91,894.00 53.78 118,316.00 1.3 1.360 2,992.00 3.3 1,000 Devon Energy Corp. 66.34 66,338.30 75.31 75,310.00 0.9 0.560 560.00 0.8 2,500 Disney Company 24.37 60,912.78 33.60 84,000.00 1.0 0.310 775.00 1.3 5,175 EMC Corporation 16.07 83,178.00 19.66 101,740.50 1.2 0.000 0.00 0.0 1,545 Eli Lilly&Co. 55.65 85,972.92 57.35 88,605.75 1.0 1.700 2,626.50 3.1 1,725 Emerson Electric 23.98 41,374.12 49.23 84,921.75 1.0 1.050 1,811.25 4.4 1,475 ExxonMobil 34.89 51,457.58 85.73 126,451.75 1.4 1.400 2,065.00 4.0 5,500 General Electric 26.59 146,257.35 38.87 213,785.00 2.4 1.120 6,160.00 4.2 220 Google 505.87 111,291.15 515.25 113,355.00 1.3 0.000 0.00 0.0 4,000 Health Care Select 34.08 136,302.13 34.40 137,600.00 1.6 0.773 3,092.80 2.3 Sector SPDR Fund 5,025 Intel Corp. 18.36 92,242.67 25.75 129,393.75 1.5 0.450 2,261.25 2.5 1,000 International Business 104.04 104,039.27 116.69 116,690.00 1.3 1.600 1,600.00 1.5 Machines Corp. 3,100 J.B. Hunt Transport 23.62 73,231.57 28.77 89,187.00 1.0 0.360 1,116.00 1.5 Services Inc. 1,600 Johnson &Johnson 59.45 95,125.68 61.79 98,864.00 1.1 1.660 2,656.00 2.8 3,185 Kraft Foods Inc. 33.23 105,832.65 32.06 102,111.10 1.2 1.080 3,439.80 3.3 3,165 Lowe's Companies Inc. 28.49 90,179.26 31.06 98,304.90 1.1 0.320 1,012.80 1.1 1,500 Northern Trust Corp. 56.85 85,272.15 61.46 92,190.00 1.0 1.000 1,500.00 1.8 3,650 Oracle Corp. 17.02 62,132.13 20.28 74,022.00 0.8 0.000 0.00 0.0 700 Parker Hannifin Corp. 81.99 57,394.96 107.47 75,229.00 0.9 1.260 882.00 1.5 4,500 Powershares Dynamic 18.81 84,667.50 19.31 86,895.00 1.0 0.000 0.00 0.0 Networking 6,300 Powershares Water 17.96 113,150.25 21.02 132,426.00 1.5 0.122 769.10 0.7 Resource 1,350 Procter&Gamble 63.92 86,296.19 65.31 88,168.50 1.0 1.400 1,890.00 2.2 2,550 St. Jude Medical Inc. 38.60 98,427.36 43.57 111,103.50 1.3 0.000 0.00 0.0 3,500 Symantee Corp. 19.42 67,955.20 18.81 65,835.00 0.7 0.000 0.00 0.0 2,750 Teva Pharmaceuticals 38.62 106,218.70 43.00 118,250.00 1.3 0.340 935.00 0.9 2,375 Texas Instruments 29.83 70,846.83 34.24 81,320.00 0.9 0.320 760.00 1.1 5,000 The Technology Select 25.50 127,480.00 26.04 130,200.00 1.5 0.071 354.20 0.3 Sec SPDR Fund 1,000 Transocean hie. 96.73 96,734.80 105.09 105,090.00 1.2 0.000 0.00 0.0 1,200 United Parcel Service 73.99 88,790.04 75.86 91,032.00 1.0 1.680 2,016.00 2.3 Inc. 1,500 Varian Medical Systems 44.50 66,749.55 40.39 60,585.00 0.7 0.000 0.00 0.0 Inc. 2,000 Verizon 40.60 81,200.00 41.88 83,760.00 1.0 1.620 3,240.00 4.0 Communications 1,815 eBay Inc. 35.81 64,991.52 34.10 61,891.50 0.7 0.000 0.00 0.0 3,230,865.16 3,874,316.25 44.1 64,619.10 2.2 Preferred Debt Securities 4,575 G.E. Preferred 6.625% 25.41 116,233.24 25.08 114,741.00 1.3 1.656 7,577.34 6.5 AAA/AAA (C 6-28-07) 116,233.24 114,741.00 1.3 7,577.34 6.5 1 LAh LONGER INVESTMENTS INCORPORATED A Registered Investment Advisor Longer Investments Inc. PORTFOLIO APPRAISAL Fayetteville Fire Pension and Relief Fund U/A DTD 6-18-86 August 31, 2007 Unit Total Market Pct. Unit Annual Cur. Quantity Security Cost Cost Price Value Assets Income Income Yield Mutual Funds-Equity 1,250.0000 Japan Smaller 11.62 14,526.13 10.57 13,212.50 0.2 1.660 2,075.00 14.3 Capitalization Fund Inc. 20,000.0000 iShares MSCI Japan 10.69 213,850.00 14.07 281,400.00 3.2 0.099 1,989.18 0.9 Index Fund 1,500.0000 iShares MSCI Taiwan 12.54 18,803.55 15.94 23,910.00 0.3 0.302 452.45 2.4 Index Fund 3,000.0000 iShares S&P Europe 82.03 246,094.10 113.36 340,080.00 3.9 2.083 6,248.48 2.5 350 Index 493,273.78 658,602.50 7.5 10,765.11 2.1 Corporate Bonds 50,000 NationsBank Corp. 99.79 49,894.00 100.25 50,124.60 0.6 6.375 3,187.50 6.4 Subordinated Notes AA2/AA- (NC) 6.375% Due 02-15-08 65,000 J.P. Morgan Chase 102.60 66,687.00 100.82 65,534.43 0.7 6.700 4,355.00 6.5 Bank AAI/AA- (NC) 6.700% Due 08-15-08 50,000 Bankers Trust NY Corp 99.26 49,630.00 100.57 50,284.80 0.6 6.000 3,000.00 6.0 Subordinated Notes A2/A+ (NC) 6.000% Due 10-15-08 25,000 First Union Corp. 93.78 23,446.00 100.90 25,224.77 0.3 6.000 1,500.00 6.4 Subordinated Debentures Al/A+ (NC) 6.000% Due 10-30-08 25,000 Pepsico Incorporated 97.49 24,373.00 100.57 25,143.37 0.3 5.700 1,425.00 5.8 Medium Term Note AA2/A+ (NC) 5.700% Due 11-01-08 50,000 Hershey Foods Corp. 97.63 48,816.00 107.27 53,633.15 0.6 6.950 3,475.00 7.1 Notes Al/A(NC) 6.950% Due 08-15-12 50,000 Paribas New York 96.03 48,014.00 110.11 55,053.30 0.6 6.950 3,475.00 7.2 Branch Subordinated Notes AA2/AA(NC) 6.950% Due 07-22-13 50,000 IBM Corp. Debentures 100.01 50,004.00 110.60 55,301.50 0.6 7.000 3,500.00 7.0 Al/A+ (Subject to make whole call) 7.000% Due 10-30-25 Accrued Interest 4,141.12 0.0 360,864.00 384,441.05 4.4 23,917.50 6.6 Government Agency 100,000 Federal Home Loan 100.00 100,000.00 100.00 100,000.00 1.1 5.200 5,200.00 5.2 Bank(NC) 5.200% Due 02-14-08 110,000 Federal Home Loan 100.00 110,000.00 100.00 110,000.00 1.3 5.280 5,808.00 5.3 Bank (Callable 9-19-07 @ 100, 1 X) 5.280% Due 09-19-08 2 LONGER INVESTMENTS INCORPORATED A Registered Investment Advisor Longer Investments Inc. PORTFOLIO APPRAISAL Fayetteville Fire Pension and Relief Fund U/A DTD 6-I8-86 August 31, 2007 Unit Total Market Pct. Unit Annual Cur. Quantity Security Cost Cost Price Value Assets Income Income Yield 100,000 Fed Nat'l Mortgage 100.00 100,000.00 100.03 100,031.25 1.1 5.125 5,125.00 5.1 Assoc (Callable 10-3-07 @ 100, IX) 5.125% Due 10-03-08 100,000 Federal Home Loan 100.00 100,000.00 99.97 99,968.75 1.1 5.100 5,100.00 5.1 Bank (Callable 12-26-07 @ 100, 1X) 5.100% Due 12-26-08 200,000 Federal Home Loan 100.00 200,000.00 100.12 200,250.00 2.3 5.100 10,200.00 5.1 Bank(Callable 5-20-08 @ 100, ix) 5.100% Due 11-20-09 50,000 Tennessee Valley 98.95 49,474.00 102.76 51,377.70 0.6 5.625 2,812.50 5.7 Authority(NC) 5.625% Due 01-18-11 350,000 Federal Home Loan 100.00 350,000.00 100.53 351,859.37 4.0 5.250 18,375.00 5.2 Bank (Callable 2-9-09 @ 100, ix) 5.250% Due 02-09-11 65,000 Federal Home Loan 100.00 65,000.00 100.12 65,081.25 0.7 5.020 3,263.00 5.0 Bank (Callable 4-13-09 @ 100, ix) 5.020% Due 04-13-11 125,000 Federal Home Loan 100.00 125,000.00 100.91 126,132.81 1.4 5.500 6,875.00 5.5 Bank(Callable 2-18-09 @ 100, IX) 5.500% Due 08-18-11 200,000 Fed Nat'l Mortgage 100.00 200,000.00 100.50 201,000.00 2.3 5.400 10,800.00 5.4 Assoc (Callable 9-15-08 @ 100, IX) 5.400% Due 09-15-11 70,000 Federal Home Loan 100.00 70,000.00 99.97 69,978.12 0.8 5.300 3,710.00 5.3 Bank(Callable 12-28-07 @ 100, quarterly) 5.300% Due 12-28-11 100,000 Federal Home Loan 100.00 100,000.00 99.72 99,718.75 1.1 5.020 5,020.00 5.0 Bank(Callable 12-12-08 @ 100, 1X) 5.020% Due 06-12-12 55,556 Federal Home Loan 100.00 55,555.56 99.31 55,173.62 0.6 5.080 2,822.22 5.1 Bank(Callable since 10-3-03 @ 100, CC) 5.080% Due 10-03-12 250,000 Federal Home Loan 100.00 250,000.00 99.16 247,890.62 2.8 5.000 12,500.00 5.0 Bank(Callable 10-5-07 @ 100, CC) 5.000% Due 10-05-12 100,000 Federal Home Loan 100.00 100,000.00 100.22 100,218.75 1.1 5.250 5,250.00 5.2 Bank(Callable 11-14-08 @ 100, 1X) 5.250% Due 11-14-12 75,000 Federal Home Loan 100.00 75,000.00 99.44 74,578.12 0.8 5.375 4,031.25 5.4 Bank(Callable since 11-7-05 @ 100, CC) 5.375% Due 11-07-13 3 LONGER INVESTMENTS INCORPORATED ik A Registered Investment Advisor Longer Investments Inc. PORTFOLIO APPRAISAL Fayetteville Fire Pension and Relief Fund U/A DTD 6-18-86 August 31, 2007 Unit Total Market Pct. Unit Annual Cur. Quantity Security Cost Cost Price Value Assets Income Income Yield 125,000 Federal Farm Credit 100.00 125,000.00 98.75 123,437.50 1.4 5.300 6,625.00 5.3 Bank(Callable since 6-22-07 @ 100, CC) 5.300% Due 06-22-15 100,000 Federal Home Loan 100.00 100,000.00 101.05 101,047.10 1.2 6.000 6,000.00 6.0 Mortgage Corp. (Callable 4-28-09 @ 100, quarterly) 6.000% Due 04-28-16 210,000 Fed Nat'l Mortgage 100.00 210,000.00 100.50 211,050.00 2.4 6.000 12,600.00 6.0 Assoc (Callable 10-24-08 @ 100, quarterly) 6.000% Due 10-24-16 200,000 Federal Home Loan 100.00 200,000.00 103.06 206,125.00 2.3 6.000 12,000.00 6.0 Bank (Callable 1-3-12 @ 100, IX) 6.000% Due 07-03-17 Accrued Interest 37,202.19 0.4 2,685,029.56 2,732,120.92 31.1 144,116.97 5.4 Treasury Bills 525,000 U. S. Treasury Bill Due 99.62 522,991.88 99.75 523,687.50 6.0 4.684 24,591.00 4.7 9-27-07 4.684% YTM 522,991.88 523,687.50 6.0 24,591.00 4.7 Cash and Equivalents Dividends Accrued 5,203.62 5,203.62 0.1 0.000 0.00 0.0 Money Market 305,989.09 305,989.09 3.5 4.545 13,907.20 4.5 Restricted Cash 185,000.00 185,000.00 2.1 4.545 8,408.25 4.5 496,192.71 496,192.71 5.6 22,315.45 4.5 TOTAL PORTFOLIO 7,905,450.33 8,784,101.93 100.0 297,902.48 3.7 4 LONGER INVESTMENTS INCORPORATED A Registered Investment Advisor Longer Investments Inc. CASH CONTRIBUTIONS/WITHDRAWALS City of Fayetteville Fire Pension and Relief Fund 08-15-02 to 08-31-07 CONTRIBUTIONS 2002 Total Additional transfers from Merrill Lynch $147,498.38 09-10-03 Money Market $350,000.00 08-04-04 Money Market $127,000.00 09-01-05 Money Market $145,000.00 08-17-06 Money Market $408.95 (Bristol-Myers Squibb litigation settlement) 07-26-07 Money Market $55,000.00 $824,907.33 WITHDRAWALS 2002 Total Money Market $199,000.00 2003 Total Money Market $751,000.00 2004 Total Money Market $935,000.00 2005 Total Money Market $1,106,000.00 2006 Total Money Market $17536,000.00 2007 1-04-07 Money Market $117,000.00 2-01-07 Money Market $80,000.00 3-05-07 Money Market $108,000.00 4-01-07 Money Market $957000.00 5-01-07 Money Market $100,000.00 6-01-07 Money Market $20,000.00 7-02-07 Money Market $837000.00 $5,130,000.00 5 LONGER INVESTMENTS INCORPORATED 16 A Registered Investment Advisor