The URL can be used to link to this page

Home My WebLink About2006-05-25 - Agendas - Final Firemen's Pension and Relief Fund Meeting Agenda May 25, 2006 A meeting of the Fayetteville Firemen's Pension and Relief Fund will be held at 11:00 AM on May 25, 2006 in Room 326 of the City Administration Building 1. Approval of the Minutes: • April 27, 2006 Meeting Minutes 2. Approval of the Pension List: • June, 2006 Pension List 3. Old Business: • Act 2094 - Disclosure of Gifts Affidavit Form • Elections — May 31, 2006 Final Date to Return Ballots • Pete Reagan NCPRES Travel Reconciliation Report • NCPRES Conference Report — Pete Reagan 4. Longer Investments: • Equity Overage of 4% - Equity Allocation is at 54% • Email Regarding Proxy Vote • Monthly Report Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes April 27,2006 Page 1 of 5 Firemen's Pension and Relief Fund Meeting Minutes April 27, 2006 A meeting of the Fayetteville Firemen's Pension and Relief Fund was held at 11:00 AM on April 275 2006 in Room 326 of the City Administration Building Mayor Coody called the meeting to order Present: Mayor Coody, Marion Doss, Dennis Ledbetter, Pete Reagan, Ronnie Woods, City Clerk Sondra Smith, City Attorney Kit Williams, Trish Leach, Accounting. Absent: Teddy O'Neal Approval of the March 30, 2006 Meeting Minutes: Dennis Ledbetter moved to approve the March 30, 2006 meeting minutes. Ronnie Wood seconded the motion. Upon roll call the motion passed 6-0. Teddy O'Neal was absent. Approval of the May, 2006 Pension List: Sondra Smith: We have moved Danny Farrar and Glen Shackleford from DROP to the pension list. Dwayne McChristian finally turned in his affidavit so his back pay is on the May, 2006 Pension List. Pete Reagan moved to approve the May, 2006 pension list. Dennis Ledbetter seconded the motion. Upon roll call the motion passed 6-0. Teddy O'Neal was absent. New Business: Glen Shackelford Retirement from DROP Pete Reagan moved to approve the retirement of Glen Shackelford. Marion Doss seconded the motion. Upon roll call the motion passed 6-0. Teddy O'Neal was absent. Danny Farrar Retirement from DROP Pete Reagan moved to approve the retirement of Danny Farrar. Marion Doss seconded the motion. Upon roll call the motion passed 6-0. Teddy O'Neal was absent. r Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes April 27,2006 Page 2 of 5 Sondra Smith: Due to Danny retiring he is no longer on the Board as the highest ranking member of the Fire Department. The next person that is the highest ranking member of the Fire Department, that is a member of this pension plan, is Teddy O'Neal. I spoke to Teddy, he was not able to come to this meeting, but he is willing to serve. Therefore, Teddy will become a Board member dug to being the highest ranking member of the Fire Department. We only have three people left on DROP once those three people retire the Board will consist of retired members with the exception of the Mayor and myself. Trish Leach: Sondra put in the packet the DROP payout for Glen Shackleford and the projected DROP payout for Danny Farrar. If you approve that we. will go ahead and cut those checks. I wanted to point that out to make sure there is no doubt that was approved. Dennis Ledbetter: Do we need to make a motion? Sondra Smith: You made a motion to approve the retirement for both of them so if you are approving their retirement you are approving the amount they will draw that was in your packet. I I Jim Rose Statement — TIF Lawsuit Sondra Smith: I put a copy of the statement from Jim Rose regarding attorney fees relating to the TIF lawsuit. The amount was $2,050 for both the Policemen's and Firemen's Pension Board,. 1 each Board will pay half of that cost. I had Accounting process a check in the amount of$1,025 from the Firemen's Pension fund. I did not think we needed to vote to approve the payment because you had already approved hiring him. I wanted you to know that has been taken care. Mr. Rose stated that this will not be the only bill that you will receive. Mr. Rose does not think the next bill will be as large as this bill was. You will get another bill when the TIF lawsuit is rapped up. Kit may have some insight as to when that might be. Kit Williams: I talked to the court reporter that is doing the record that we have ordered; you will not have to pay for that, the City will be, paying for the record. She is about finished, probably in a week or two, I will go over the record with her and the attorney from the library to make sure that we have everything in the record and then it will be sent to the State. I will then have to file an abstract and a brief. I still think it is possible that we can get this resolved before the end of the year. Mr. Rose will have to file a brief on your behalf but it is basically the same as what the library will be arguing so it will not be a difficult brief. I don't think that he will think that he will need to go to Little Rock and argue because there are too many lawyers and they will force the defendants to only have one or two lawyers argue for the group. I don't think that Mr. Rose will go to Little Rock therefore that will hold your cost down. Dennis Ledbetter: Could they select him to be the one to argue? Kit Williams: Possibly but keep in mind when it comes to a millage point of view you have the smallest bit of everybody so you have the least money at stake. Some of the issues do not apply to you all. There are only one or two issues that apply to you. . The big issue is the 25 mils, is Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes April 27,2006 Page 3 of 5 only the Department of Finance and Administration that is the largest amount of money in dispute, and then the schools would be next with at least 4.50 mils that we are disagreeing about. Those are the two major ones. I think that they will allow or make sure that your issue is covered by whoever does argue. It will certainly be covered in the briefs and probably also in the oral arguments. It is basically the same argument that the library has; the new law gets you out. So if we did a new TIF now you would specifically be exempt just like the library. It wasn't that way when this TIF District was formed and so the argument is that they should look at the new law and use it to help them understand the old law and keep you all from having to pay. That didn't work at the Circuit Court level; I don't know if it will work at the Supreme Court level. Dennis Ledbetter: But if they select a lawyer to argue could he in turn bill us? Kit Williams: No, I don't think so. If it is the Department of Finance and Administration they are like me we don't bill anyone that is just part of our job. I don't think that would be the case at all. I think they would be responsible for paying their own attorney and he would get the benefit of being able to argue for his client so he would be under an obligation to go ahead and mention the arguments for you. It would be to his client's benefit that he would be getting to argue so I could not see him billing you. Pete Reagan moved to approve the payment to Attorney Jim Rose in the amount of$1,025. Marion Doss seconded the motion. Upon roll call the motion passed 6-0. Teddy O'Neal was absent. Old Business: Elections -Nominations — Pete Reagan and Marion Doss Sondra Smith: We sent out nomination forms and the only nominations that we received back were for Marion Doss and Pete Reagan. They were nominated to both Position 1 and Position 2. Pete received more nominations for Position 2 and Marion received more nominations for Position 1. I guess we can put Marion in Position 1 and Pete in Position 2. I would not think there would be any reason to send the nominations back out for a vote since we only received the two nominations but that is up to the Board. Mayor Coody: That works for me. Dennis Ledbetter: The deadline for getting the nominations in has passed? ` Sondra Smith: Yes, the nomination deadline was April 15, 2006. Kit Williams: The statue doesn't require a vote? Marion Doss: I don't know that is up to you. r Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes April 27,2006 Page 4 of 5 Kit Williams: If the statue required voting even though we only.have two people you would be safer to have them vote on the nominees. We need to make sure we follow statutory procedure. Sondra Smith: I will look at the statue and see what it says. Kit Williams: I will get with Sondra and see if there has to be a vote. If not then I think you can make a motion to go ahead and accept Marion and Pete as Board members unless an election- is required by the statue. Dennis Ledbetter moved to accept Marion Doss and Pete Reagan as Board members unless the statue requires a vote. Ronnie Wood seconded the motion. Upon roll can the motion passed 6-0. Teddy O'Neal was absent. Marion Doss: We have done it that way in the past. We are just not sure if we did it right. We have done it that way in the past if there were no other nominations there was no point in having a vote. Dennis Ledbetter: So if it requires a vote letters will be sent out? Sondra Smith: We will have to send letters out, yes. i Non-Return of Affidavit for Dwayne McChristian - Received i Sondra Smith: We did receive his affidavit. Longer Investments: Revised Investment Policy — The Board Needs to Sign. A copy of the revised investment policy was given to the Board for them to sign. Pete Reagan: Is this the one that we approved at the last meeting? Sondra Smith: Yes. This is the formal policy for you to sign. Page 4 (e) has been changed. It now states investments in international securities will be limited to 50% of the equity portfolio at cost. That was our motion at the last meeting so that is what has been changed in your policy, j the amount that is bolded. It was 10% and we increased-the amount to 50%. There are two original policies and we need both of them signed. Danny will have to sign the policy because he was on the Board at the time the motion passed. I will contact him and have him come in and sign it. I Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes April 27, 2006 Page 5 of 5 Email Regarding Proxy Vote Sondra Smith: A copy of the email from Kim Cooper of Longer Investments is in your packet regarding the proxy vote that Pete was concerned about. Longer View A copy of the Longer View was given to the Board. Monthly Report A copy of the Longer. Investment monthly investment report was given to the Board. Sondra Smith: There is a note on top of the monthly report that the equity allocation was 55% therefore we will need to vote on the overage of 5%. We voted to allow them to go plus or minus 5% of our equity amount`of 50%. We are to approve any overages. Pete Reagan moved to approve the equity overage of 5%. Ronnie Wood seconded the motion. Upon roll call the motion passed 6-0. Teddy O'Neal was absent. 1St Ouarter— Ouarterly Report A copy of the Longer Investment first quarter report was given to the board. Meeting Adjourned at 11:25 AM FIREMEN'S RELIEF AND PENSION June 2006 6 THE FOLLOWING ARE THE OBLIGATIONS OF THE FIREMEN'S RELIEF FUND FOR THE MONTH OF AUGUST. YOU ARE HEREBY INSTRUCTED TO ISSUE CHECKS TO THE PAYEES, IN THE AMOUNTS SHOWN, AND FOR THE PURPOSE SO STATED. DATE OF Act 1373 EMP#RETIREMENT NAME Regular Mo Year To Date Future Benefit Reg Benefit Supplement Fed Tax St Tax Net Q 79 11/99 ARMSTRONG (DILL), PAMELA 1,812.74 10,876.44 300.00 100.00 1,412.74 R 177 4/04 BACHMAN, EDDIE 2,618.55 15,711.30 479.27 119.82 2,019.46 S 74 3/86 BAIRD, JULIA 1,802.08 10,812.48 350.00 145.00 1,307.08 V 2 3175 BLACKARD, PAUL 109.27 655.62 109.27 V 63 5172 BOLAIN,ANN 109.27 655.62 109.27 R 68 7/99 BONADUCE, MICHAEL 2,988.76 17,932.56 475.38 2,513.38 S 44 9/86 BOUDREY, BETTY MRS. 2,477.42. 14,864.52 300.00 50.00 2,127.42 R 45 9/86 BOUDREY, HOWARD 2,089.28 12,535.68 2,089.28 R 49 7/88 BOUDREY, JACK 1,647.63 9,885.78 287.68 50.00 1,309.95 V 5 5172 CASELMAN,ARTHUR 131.13 786.78 R 57 5/90 CATE, ROY 131.131,788.90 10,733.40 1 788 90 V 6 4/68. CHRISTIE, ARNOLD 109.27 655.62 109 27 V 8 10176 COUNTS, WAYNE 109.27 655.62 109.27 R 77 11/99 DILL,GARY JOHN 1,812.75 10,876.50 100.00 1,712.75 188 12/05 DOSS, MARION H 5,376.91 32,261.46 800.00 320.00 .4,256.91 R 11 2/76 FARRAR,ALONZO 998.86 5,993.16 R 192 4106 FARRAR, DANNY 988.86 R 4,155.36 8,310.72 207.00 207.00 3,741.36 38 5/84 FRALEY, JOSEPH G. 1,768.12 10,608.72 200.00 15.00 1,553.12 R 170 5/03 FREEDLE, LARRY 3,816.75 22,900.50 500.00 100.00 3,216.75 R 92 03/02 GAGE,TOMMY 2,596.69 15,580.14 226.00 50.00 2,320.69 V 34 6/79 HARRIS, JAMES E_ 109.27 655.62 109.27 V 70 11/99 HARRIS, MARY RUTH 109.27 655.62 Q 182 10/04 JENKINS, EILEEN 109.27 R 1,788.75 10,732.50 350.00 100.00 1,338.75 93 06/02 JENKINS, JOHN 1,788.76 10,732.56 350.00 100.00 1,338.76 R 86 07/01 JOHNSON,ROBERT 3,073.47 18,440.82 500.00 100.00 2,473.47 R 64 4/95 JORDAN, CHARLIE 2,274.95 13,649.70 150.00 50.00 2,074.95 S 76 5/88 JUDY, JAN 1,647.63 9,885.78 200.00 50.00 1,397.63 R 37 3/84 KING,ARNOLD D. R 1,522.37 9,134.22 300.00 47.00 1,175.37 ' 54 5/89 KING,ARVIL 1,711.21 10,267.26 130.00 50.00 1,531.21 V 12 3/60 LANE, HOPE MRS 109.27 655.62 109.27 . R 13 10/67 LAYER, MERLIN 456.22 2,737.32 456.E R 173 12/03 LED.BETTER,'DENNIS 3,775.80 22,654.80 650.00 200.00 2,925.80 V 181 10/04 LEE, VIOLA LOUISE 109.27 655.62 R 51 10/88 LEWIS, CHARLES 109.271,647.63 9,885.78 75.00 25.00 1,547.63 R 40 9/85 LOGUE, PAUL D. 2,868.28 17,209.68 325.00 75.00 2,468.28 R 50 9/88 MASON, LARRY R 1,631.25 9,787.50 137.61 25.00 1,468.64 39 4/85 MC ARTHUR, RONALD A. 1,753.74 10,522.44 150.00 50.00 1,553.74 V 35 2/82 MC CHRISTIAN, DWAYNE 109.27 655.62 109.27 R 15 4177 MC WHORTER, CHARLES 1,334.51 8,007.06 150.00 1,184.51 R 29 8/81 MILLER, DONALD 1,304.07 7,824.42 125.00 25.00 1,154.07 R 73 2/00 MILLER,KENNETH 3,180.02 19,080.12 325.00 75.00 2,780.02 V 42 2/86 MOORE, JAMES H. 109.27 655.62 V 176 4/04 MORRIS, DIXIE E. 109.27 125.66 753.96 125 66 V 62 10/68 MORRISON, ELIENE 136.59 819.54 136.59 R 48 7/88 MULLENS, DENNIS W. 2,191.30 13,147.80 2,191.30 R 184 3/05 NAPIER, LONNIE 3,518.28 21,109.68 110.00 88.00 3,320.28 R 46 5/88 OSBURN, TROY R 1,899.66 11,397.96 200.00 38.00 1,661.66 81 02!01 PHILLIPS,LARRY 2,765.09 16,590.54 2,765.09 R 53 2/89 POAGE, LARRY 2,346.70 14,080.20 300.00 100.00 1,946.70 R 186 06/05 REAGAN, PETE 3,535.71 21,214.26 3,535.71 V 22 4/73 REED, JOE S 172 12/03 SCHADER, MADGE ,109109.27 655.62 27 1 .01 8,316.06 1,386.01 R 41 9185 SCHADER, TROY R 1,524.99 9,149.94 57.00 25.00 1,442.99 190 04/06 SHACKELFORD, GLEN 3,647.18 7,294.36 400.00 200.00 3,047.18 S 83 03!01 SKELTON, KIMBERLY S 2,434.98 14,609.88 250.00 50.00 2,134.98 66 8/98 SKELTON, PAULINE, Deceased 12/30/05 0.00 0.00 R 36 5/76 SPRINGSTON, CARL0.00 806.19 4,837.14 70.00 17.00 719.19 S 90 03/02 STOUT, IMOGENE W. 767.80 4,606.80 767.80 R 165 12!02 TATE, RALPH V 3,668.10 22,008.60 300.00 100.00 3,268.10 65 3/66 TUNE, BILLIE SUE 136.59 819.54 V 27 3111 TUNE, MILDRED MRS. 136.59136.59 819.54 136.59 R 28 7/68 WATTTSTS,, D DONALD S R 71 1/00 WAALD 2,502.72 15,016.32 300.00 2,202.72 437.09 2,622.54 437.09 R 88 01/02 WOOD,RONNIE D R 3,077.15 18,462.90 800.00 200.00 2,077.15 52 9/88 WRIGHT, RANDALL 1,691.34 10,148.04 200.00 _ 25.00 1,466.34 109,578.28 626,259.52 0.00 11,129.94 2,971.82 95,476.52 DATE OF Regular Mo Year To Date Future EMP#RETIREMENT NAME Benefit Reg Benefit Supplement Fed Tax St Tax Net DROP DATE DROP EMPLOYEES NEW BENEFITS 03/01/03 MAHAN, MARSHALL 4,077.28 03/01/03 PIERCE, JOEY 3,647.18 04/01/03 O'NEAL, TEDDY 4,120.99 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 2005. i i I NOTARY PUBLIC i MY COMMISSION EXPIRES : y I. f YTD 6810-98105435-00 406,884.42 626259.52 -219375.10 i 6810-9810-5335-W 0.00 #REF! #REF! Drop Payout/Intrest Checks to Drop Retirees 355,91259 YTD Column 762,797.01 Difference 0.00 "(should be off Supplemental amount for DROP part) I i I I I j j I Policemen's Pension and Relief Fund Board of Trustees Firemen's Pension and Relief Fund Board of Trustees Act 2094 Disclosure of Gifts Affidavit Calendar Year State of Arkansas } ss: County of Washington Pursuant to A.C.A. § 24-11-801 (j)(1) through (C)(ii) I do hereby certify and state that to the best of my knowledge the following information is true and correct: Name: Last First Middle Address: Street or PO Box City State Zip Code Phone: Date of Birth: I have received the following gifts (If you received no gifts please enter N/A): Gift Description: Source of Gift: Dated Received: Estimated Value: Gift Description: Source of Gift: Dated Received: Estimated Value: Affiant SUBSCRIBED AND SWORN before me this day of , 20 Notary Public My Commission Expires: City of Fayetteville Trip Reconciliation Form Name of Traveler: Peter T Reagan Employee#: Employee Vendor#: 47270 'Purpose of Trip: NCPERS Conference Fire Pension Destination: Ft. Lauderdale, Florida Event date(s): April 28, 2006 - May 4, 2006 Actual departure from City of Fayetteville: Actual arrival in City of Fayetteville: From: Fayetteville From: Ft. Lauderdale, Florida Date: 4/27/2006 Date: 5/4/2006 Time: 2:00 PM Time: 10:00 PM ACTUAL COSTS: Receipts are required on all transactions not previously paid for by the City. Difference of Actual Actual Amount: Approved Amount: Over Approved Actual mode ofTransportation: (please specify) Commercial Airline $383.20 $383.20 $ Personal Vehicle $30.26 $30.26 $ Shuttle Service $80.00 $50.00 $30.00 Reimbursable Per Diem: Total from table below. $405.00 $405.00 $ Lodging: Total from table below: $1,673.68 $1,623.93 $49.75 Registration: $890.00 $890.00 $ Other Charges: (please explain in additional information section below) Grand Totals: $3,462.14 $3,382.39 $79.75 Advanced to employee:(total amount of check to employee) $3,382.39 Advanced for registration: Advanced for transportation: Items placed on P-card Total Advances: $3,382.39 Amount due to Traveler: $79.75 Amount due to City: (please include a check request for reim.bursemen (please include your receipt ce) Lodging and Per Diem Calculation Table Date: Lodging: 1/2 Day: Whole Day: Reimbursable Per Diem: Notes:(Please explain differences in per diem usage) 27-Apr $241.94 $27.00 $ $27.00 28-Apr $231.99 $54.00 $54.00 29-Apr $241.94 $54.00 $54.00 30-Apr $241.94 $54.00 $54.00 1-May $241.94 $54.00 $54.00 2-May $231.99 $54.00 $54.00 3-May $241.94 1$54.00 $54.00 4-May $0.00 1$54.00 $54.00 Total $1,673.68 Total $405.00 1 agree to waive my right to per diem. Initials: Additional Information and explanations of differences: The difference in lodging charges was telephone charges for internet service. The shuttle expenses were $30.00 more than anticipated. Signature of Traveler: Date: Internal Auditor Division Use Only: Overage that exceeds $50 (exclusive of taxes & fees) Overage has been: Approved $ Denied $ Signature of Internal Auditor: Date: f i Report of 2006 NCPERS Conference To Fayetteville Fireman's Pension & Relief Fund Board of Trustee's I arrived in Ft Lauderdale the evening of Thursday, April 27th and checked in the Westin Diplomat Hotel The NCPERS Trustee Educational seminar started at 0800 on Friday morning and lasted till approx 3pm. Attended same seminar Saturday from 0800 till approx 3pm Attended welcoming reception at Westin Diplomat 6-8pm Sunday April 30, sponsored by Northern Trust Attended all General Sessions from Monday-Wednesday Attended the following breakout sessions Monday-Wednesday Monday May 1st Title: The Brutal Truth about our Nations Energy Problems William Hackney, III, Atlanta Capital Management CO. Title: Securities Litigation and Public Pension Funds Mark McNair, Kaplan Fox & Kilsheimer Tuesday May 2nd Title: WEP and GPO Offsets in Social Security Benefits — Why Me Tim Kelly, Social Security Admn. Title: Understanding Style Benchmarks and making sense Srikant Dash, Standard & Poor's Wednesday May 3rd Title: Retiree Healthcare in the Public Sector Leslie Thompson, The Segal Company Title: Fiduciary Responsibility in a Critical Age Tom Mackell & Ronne Ades, Dow Jones Attended Networking Luncheon and Roundtable discussion on Group Long Term Care Insurance for Retirement Systems. Also attended Closing reception Sponsored by Lynch, Jones & Ryan Thursday morning, May 4th, I attended the NCPERS Annual Business Meeting and was elected to the NCPERS Nation Committee as one of two representatives from Arkansas. The NCPERS Conference was attended by members of the following Arkansas boards and Cities: Little Rock Police (Old Fund), LOPFI, Arkansas Pension and Relief Fund Board, City of Little Rock Finance Dept. The conference was very education and I encourage each member of the Fayetteville Fireman's Pension and Relief fund to attend. Our current Defined Benefit Pension Plans ' are under attack on both the national and state levels. It is our job to see that our current pension plan is kept secure. NCPERS has developed a booklet entitled; Public Pensions & You, Moving up to the Trustee Level, along with a glossary key for Investment Terms and Acronyms. The cost of this booklet is $125.00. It also contains an online test for trustees. I encourage each member to read this booklet and take the online test. This booklet was introduced at this conference, and was given to each attendee for free. I have included a copy of all written material that I received and will make available to each Trustee for copying. I would like to keep the originals for future reference. Thank you for allowing me the opportunity to represent the Fayetteville Firemen's Pension and Relief Fund at this annual Conference of the Nation Conference of Public Employees Retirement Systems. Vfud, i Trustee - FFD Pension and Relief Fund i i I j i i I i City of Fayetteville Fire Pension and Relief Fund U/A Dated 6/18/86 April 30, 2006 Equity Allocation: 54% Equity Range Per Policy: 25% to 50% (+/-5% with monthly approval) Longer Investments Inc. requests authorization for the variance of less than 5% as required in the investment policy dated February 24, 2005. LONGER INVESTMENTS INCORPORATED A Registered Investment Advisor Sondra Smith Wal Mart Proxy age P 1 From: "Kim Cooper" <kim@longerinv.com> To: "Sondra Smith" <ssmith@ci.fayetteville.ar.us> Date: 5/11/06 1:44PM Subject: Wal-Mart Proxy Dear Sondra: Today, we received the proxy for the Wal-Mart shareholders' meeting that will be held on June 2. We have voted the shares owned by the City of Fayetteville Firemens Pension Fund FOR the shareholder proposal related to greater disclosure and board oversight of political contributions, as the pension board requested. The vote has been recorded in accordance with the Longer Investments Inc. Proxy Voting Policy.. Wal-Mart is the final company that was noted in the letter from NCPERS. If we can be of further assistance, please let me know. Kim Cooper Longer Investments Inc. (479) 443-5851 (800) 827-7710 kim@longerinv.com This email and any files transmitted with it are confidential and intended solely for the entity or individual to whom they are addressed. If you have received this email in error, destroy it immediately. CC: <apffprez@aol.com>, "Elaine Longer' <elaine@longerinv.com> Longer Investments Inc. PORTFOLIO APPRAISAL Fayetteville Fire Pension and Relief Fund U/A DTD 6-18-86 April 30, 2006 Unit Total Market Pct. Unit Annual Cur. Quantity Security Cost Cost Price Value Assets Income Income Yield COMMON STOCK 3,750 AT&T 26.15 98,075.00 26.21 98,287.50 1.1 1.330 4,987.50 5.1 1,000 Allergan Inc. 98.56 98,558.90 102.72 102,720.00 1.1 0.400 400.00 0.4 1,000 Anadarko Petroleum 59.05 59,054.15 104.82 104,820.00 1.1 0.720 720.00 1.2 Corp. 2,425 Archer-Daniels-Midland 30.19 73,214.06 36.34 88,124.50 1.0 0.400 970.00 1.3 Co. 2,000 B.P. Amoco PLC A.D.S. 39.64 79,285.00 73.72 147,440.00 1.6 2.196 4,392.00 5.5 2,570 Bank of America Corp. 46.98 120,743.23 49.92 128,294.40 1.4 2.000 5,140.00 4.3 3,185 Barclays PLC 40.25 128,201.86 49.85 158,772.25 1.7 1.891 6,023.79 4.7 1,550 Caterpillar Inc. 43.94 68,112.19 75.74 117,397.00 1.3 1.000 1,550.00 2.3 2,500 Chevron Corp. 40.13 100,313.14 61.02 152,550.00 1.7 2.080 5,200.00 5.2 3,500 Citigroup 41.09 143,827.09 49.95 174,825.00 1.9 1.960 6,860.00 4.8 2,750 Coca-Cola 41.79 114,913.40 41.96 115,390.00 1.3 1.240 3,410.00 3.0 1,750 Deere&Co. 74.97 131,197.67 87.78 153,615.00 1.7 1.240 2,170.00 1.7 4,850 Disney Company 24.98 121,132.29 27.96 135,606.00 1.5 0.270 1,309.50 1.1 3,120 E.I. DuPont de Nemours 43.88 136,918.13 44.10 137,592.00 1.5 1.480 4,617.60 3.4 &Co. 1,500 Emerson Electric 47.97 71,955.00 84.95 127,425.00 1.4 1.780 2,670.00 3.7 1,750 ExxonMobil 32.23 56,409.51 63.08 110,390.00 1.2 1.280 2,240.00 4.0 4,410 Flextronics 10.50 46,288.33 11.36 50,097.60 0.5 0.000 0.00 0.0 2,000 General Electric 14.37 28,734.85 34.59 69,180.00 0.8 1.000 2,000.00 7.0 905 Goldman Sachs Group 127.90 115,745.52 160.29 145,062.45 1.6 1.400 1,267.00 1.1 Inc. 3,500 Hain Celestial Group, 19.98 69,927.83 26.90 94,150.00 1.0 0.000 0.00 0.0 Inc. 7,325 Health Care Select 32.47 237,810.18 30.99 227,001.75 2.5 0.426 3,121.62 1.3 Sector SPDR Fund 3,320 Home Depot 41.53 137,875.65 39.93 132,567.60 1.4 0.600 1,992.00 1.4 3,675 Ingersoll-Rand 38.03 139,774.32 43.75 160,781.25 1.8 0.640 2,352.00 1.7 1,000 L-3 Communications 84.07 84,070.00 81.70 81,700.00 0.9 0.750 750.00 0.9 Holdings Inc. 3,620 Microsoft Corp. 27.27 98,712.90 24.15 87,423.00 1.0 0.360 1,303.20 1.3 2,250 Morgan Stanley 53.66 120,734.36 64.30 144,675.00 1.6 1.080 2,430.00 2.0 4,285 Newell Rubbermaid Inc. 25.21 108,023.80 27.42 117,494.70 1.3 0.840 3,599.40 3.3 5,850 Pier I Imports 11.82 69,147.00 12.07 70,609.50 0.8 0.400 2,340.00 3.4 6,280 Powershares Dynamic 16.76 105,250.00 17.29 108,581.20 1.2 0.072 451.66 0.4 Insurance 4,750 Powershares Dynamic 16.97 80,607.50 17.33 82,317.50 0.9 0.000 0.00 0.0 Networking 3,850 Powershares Lux 17.98 69,223.00 19.10 73,535.00 0.8 0.000 0.00 0.0 Nanotech 5,050 Powershares Water 17.60 88,891.35 18.31 92,465.50 1.0 0.000 0.00 0.0 Resource 1,610 Procter&Gamble 56.12 90,349.18 58.21 93,718.10 1.0 1.240 1,996.40 2.2 2,400 Sigma-Aldrich 58.26 139,827.18 68.61 164,664.00 1.8 0.840 2,016.00 1.4 9,985 The Technology Select 21.84 218,033.50 21.85 218,172.25 2.4 0.592 5,915.11 2.7 Sec SPDR Fund 3,000 Walmart Stores 45.66 136,975.50 45.03 135,090.00 1.5 0.670 2,010.00 1.5 3,787,912.54 4,402,535.05 48.1 86,204.78 2.4 PREFERRED DEBT SECURITIES 4,250 G.E. Preferred 6.625% 25.89 110,012.50 24.91 105,867.50 1.2 1.656 7,039.06 6.4 AAA/AAA (C 6-28-07) 110,012.50 105,867.50 1.2 7,039.06 6.4 1 LONGER INVESTMENTS INCORPORATED A Registered Investment Advisor Longer Investments Inc. PORTFOLIO APPRAISAL ' Fayetteville Fire Pension and Relief Fund U/A DTD 6-18-86 April 30, 2006 Unit Total Market Pct. Unit Annual Cur. Quantity Security Cost Cost Price Value Assets Income Income Yield MUTUAL FUNDS-EQUITY 17,500.0000 iShares MSCI Japan 10.01 175,250.00 14.80 259,000.00 2.8 0.043 752.50 0.4 Index Fund 3,000.0000 iShares S&P Europe 82.03 246,094.10 93.48 280,440.00 3.1 0.000 0.00 0.0 3501ndex 421,344.10 539,440.00 5.9 752.50 0.2 CORPORATE BONDS 50,000 NationsBank Corp. 99.79 49,894.00 101.73 50,863.85 0.6 6.375 3,187.50 6.4 Subordinated Notes AA3/A+(NC) 6.375%Due 02-15-08 65,000 J.P. Morgan Chase 102.60 66,687.00 102.79 66,816.49 0.7 6.700 4,355.00 6.5 Bank AA3/A+ (NC) 6.700%Due 08-15-08 50,000 Bankers Trust NY Corp 99.26 49,630.00 101.44 50,719.25 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 23,446.00 101.68 25,420.17 0.3 6.000 1,500.00 6.4 Subordinated Debentures Al/A(NC) l 6.000%Due 10-30-08 J 25,000 Pepsico Incorporated 97.49 24,373.00 100.80 25,199.62 0.3 5.700 1,425.00 5.8 Medium Term Note Al/A+ (NC) 5.700%Due 11-01-08 50,000 Hershey Foods Corp. 97.63 48,816.00 107.72 53,859.95 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 48,014.00 107.56 53,778.50 0.6 6.950 3,475.00 7.2 Branch Subordinated Notes AA3/AA- (NC) 6.950%Due 07-22-13 75,000 Merrill Lynch&Co. 99.26 74,442.00 104.44 78,327.45 0.9 6.500 4,875.00 6.5 Inc. Global Bonds AA3/A+ (NC) 6.500%Due 07-15-18 50,000 National City Corp. 96.65 48,326.00 107.43 53,712.90 0.6 6.875 3,437.50 7.1 Sub.Notes A2/A-(NC) 6.875%Due 05-15-19 50,000 IBM Corp. Debentures 100.01 50,004.00 108.86 54,429.10 0.6 7.000 3,500.00 7.0 Al/A+(Subject to make E whole call) 7.000% Due 10-30-25 50,000 Dell Computer Corp. 95.46 47,731.00 109.31 54,656.55 0.6 7.100 3,550.00 7.4 Debentures A2/A (Subject to make whole call) 7.100%Due 04-15-28 Accrued Interest 7,220.14 0.1 j 531,363.00 575,003.98 6.3 35,780.00 6.8 2 ® LONGER INVESTMENTS INCORPORATED A Registered Investment Advisor Longer Investments Inc. PORTFOLIO APPRAISAL Fayetteville Fire Pension and Relief Fund U/A DTD 6-18-86 April 30, 2006 Unit Total Market Pct. Unit Annual Cur. Quantity Security Cost Cost Price Value Assets Income Income Yield GOVERNMENT BONDS 50,000 U. S. Treasury Bond 100.01 50,004.00 102.50 51,250.00 0.6 5.500 2,750.00 5.5 5.500% Due 08-15-28 50,000 U. S. Treasury Bond 98.95 49,474.00 99.31 49,656.25 0.5 5.250 2,625.00 5.3 5.250% Due 11-15-28 Accrued Interest 1,765.88 0.0 99,478.00 102,672.13 1.1 5,375.00 5.4 GOVERNMENT AGENCY 100,000 Federal Home Loan 100.00 100,000.00 99.63 99,625.00 1.1 4.550 4,550.00 4.6 Bank(C 05-29-06 @ 100, IX) 4.550% Due 11-22-06 250,000 Fed Nat'l Mortgage 100.00 250,000.00 98.81 247,031.25 2.7 4.150 10,375.00 4.2 Assoc (C 7-13-06 @ 100, IX) 4.150% Due 07-13-07 75,000 Federal Home Loan 100.00 75,000.00 98.53 73,898.44 0.8 4.010 3,007.50 4.0 Bank(C 5-24-06, 1X) 4.010% Due 08-24-07 450,000 Federal Home Loan 100.00 450,000.00 99.69 448,593.75 4.9 5.020 22,590.00 5.0 Bank(C 9-14-06 @ 100, 1X) 5.020%Due 09-14-07 185,000 Federal Home Loan 100.00 185,000.00 98.44 182,109.38 2.0 4.000 7,400.00 4.0 Bank(C 6-28-06 @ 100, IX) 4.000% Due 09-28-07 100,000 Federal Home Loan 100.00 100,000.00 98.94 98,937.50 1.1 4.400 4,400.00 4.4 Bank(C 9-28-06 @ 100, 1X) 4.400% Due 09-28-07 200,000 Federal Home Loan 100.00 200,000.00 99.72 199,433.99 2.2 5.100 10,200.00 5.1 Mortgage Corp. (C 3-17-07 @ 100, 1X) 5.100% Due 03-14-08 100,000 Federal Home Loan 100.00 100,000.00 99.31 99,312.50 1.1 5.000 5,000.00 5.0 Bank(C 12-22-06 @ 100, 1X) 5.000%Due 12-22-08 75,000 Federal Farm Credit 100.00 75,000.00 97.09 72,820.31 0.8 4.000 3,000.00 4.0 Bank(C 5-29-06, continuously thereafter) 4.000%Due 12-29-08 100,000 Federal Farm Credit 100.00 100,000.00 99.31 99,312.50 1.1 5.020 5,020.00 5.0 Bank(C 11-22-06 @ 100, 1X) 5.020%Due 05-22-09 125,000 Federal Farm Credit 100.00 125,000.00 97.69 122,109.38 1.3 4.350 5,437.50 4.4 Bank(NC) 4.350%Due 06-01-09 225,000 Federal Home Loan 100.00 225,000.00 95.59 215,085.94 2.3 4.000 9,000.00 4.0 Bank(C 5-29-06, continuously thereafter) 4.000% Due 04-01-10 l 3 s LONGER INVESTMENTS INCORPORATED A Registered Investment Advisor r Longer Investments Inc. PORTFOLIO APPRAISAL J Fayetteville Fire Pension and Relief Fund U/A DTD 6-18-86 April 30, 2006 Unit Total Market Pct. Unit Annual Cur. Quantity Security Cost Cost Price Value Assets Income Income Yield 200,000 Federal Home Loan 100.00 200,000.00 96.06 192,125.00 2.1 4.200 8,400.00 4.2 Bank(C 5-29-06, continuously thereafter) 4.200% Due 05-20-10 50,000 Tennessee Valley 98.95 49,474.00 101.45 50,723.05 0.6 5.625 2,812.50 5.7 Authority(NC) 5.625% Due 01-I8-11 150,000 Federal Farm Credit 100.00 150,000.00 94.88 142,312.50 1.6 4.150 6,225.00 4.2 Bank(C 5-29-06, continuously thereafter) 4.150% Due 04-07-11 70,000 Federal Home Loan 100.00 70,000.00 98.44 68,906.25 0.8 5.300 3,710.00 5.3 Bank (C 12-28-07 @ 100, quarterly) 5.300%Due 12-28-11 55,556 Federal Home Loan 100.00 55,555.56 97.16 53,975.70 0.6 5.080 2,822.22 5.1 Bank (C 5-29-06, continuously thereafter) 5.080% Due 10-03-12 250,000 Federal Home Loan 100.00 250,000.00 96.31 240,781.25 2.6 5.000 12,500.00 5.0 Bank(C 10-5-07 @ 100, continuously thereafter) 5.000%Due 10-05-12 l 100,000 Federal Home Loan 100.00 100,000.00 98.53 98,531.25 1.1 5.250 5,250.00 5.3 Bank(C 11-14-08 @ 100, IX) 5.250% Due 11-14-12 75,000 Federal Home Loan 100.00 75,000.00 97.69 73,265.63 0.8 5.375 4,031.25 5.4 Bank(C 5-29-06, jcontinuously thereafter) 5.375% Due 11-07-13 125,000 Federal Farm Credit 100.00 125,000.00 96.75 120,937.50 1.3 5.300 6,625.00 5.3 Bank(C 6-22-07 @ 100,continuously thereafter) 5.300% Due 06-22-15 Accrued Interest 35,416.00 0.4 3,060,029.56 3,035,244.05 33.2 142,355.97 4.7 CASH AND EQUIVALENTS Dividends Accrued 5,150.85 5,150.85 0.1 0.000 0.00 0.0 Money Market 246,772.78 246,772.78 2.7 4.090 10,093.01 4.1 Restricted Cash 100,000.00 100,000.00 1.1 4.090 4,090.00 4.1 351,923.63 351,923.63 3.8 14,183.01 4.0 CERTIFICATE OF DEPOSIT 40,000 Capital One Bank FSB 100.00 40,000.00 99.74 39,896.48 .0.4 4.900 1,960.00 4.9 Falls Church,VA BAAI/NR(NC) FDIC-Insured 4.900% Due 02-20-07 Accrued Interest 381.11 0.0 40,000.00 40,277.59 0.4 1,960.00 4.9 I } 4 I LONGER INVESTMENTS INCORPORATED iILI, A Registered Investment Advisor I , Longer Investments Inc. PORTFOLIO APPRAISAL Fayetteville Fire Pension and Relief Fund U/A DTD 6-18-86 April 30, 2006 Unit Total Market Pct. Unit Annual Cur. Quantity Security Cost Cost Price Value Assets Income Income Yield TOTAL PORTFOLIO 8,402,063.33 9,152,963.93 100.0 293,650.33 3.5 5 LONGER INVESTMENTS INCORPORATED A Registered Investment Advisor Longer Investments Inc. CASH CONTRIBUTIONS/WITHDRAWALS City of Fayetteville Fire Pension and Relief Fund 08-I5-02 to 4-30-06 CONTRIBUTIONS 09-10-03 Money Market $3502000.00 08-04-04 Money Market $127,000.00 09-01-05 Money Market $145,000.00 $622,000.00 WITHDRAWALS 10-09-02 Money Market $40,000.00 12-12-02 Money Market $9,000.00 12-18-02 Money Market $150,000.00 01-08-03 Money Market $73,000.00 02-15-03 Money Market $51,000.00 03-04-03 Money Market $66,000.00 04-01-03 Money Market $60,000.00 05-01-03 Money Market $66,000.00 06-03-03 Money Market $245,000.00 07-01-03 Money Market $30,000.00 08-01-03 Money Market $65,000.00 10-01-03 Money Market $75,000.00 11-03-03 Money Market $20,000.00 ? 01-06-04 Money Market $24,000.00 01-22-04 Money Market $2162000.00 02-09-04 Money Market $76,000.00 03-01-04 Money Market $66,000.00 04-01-04 Money Market $75,000.00 05-03-04 Money Market $60,000.00 05-19-04 Money Market $88,000.00 06-02-04 Money Market $80,000.00 07-01-04 Money Market $70,000.00 07-29-04 Money Market $15,000.00 08-11-04 Money Market $15,000.00 09-08-04 Money Market $807000.00 j 10-04-04 Money Market $602000.00 12-08-04 Money Market $10,000.00 01-03-05 Money Market $65,000.00 ,i 02-01-05 Money Market $74,000.00 03-01-05 Money Market $80,000.00 04-01-05 Money Market $90,000.00 04-14-05 Money Market $217,000.00 05-01-05 Money Market $5500.00 06-09-05 Money Market $35,000.00 07-06-05 Money Market $280,000.00 08-01-05 Money Market $95,000.00 j 10-01-05 Money Market $75,000.00 11-01-05 Money Market $40,000.00 01-03-06 Money Market $394,000.00 02-01-06 Money Market $100,000.00 03-01-06 Money Market $90,000.00 04-01-06 Money Market $82,000.00 04-27-06 Money Market $145,000.00 ` $3,802,000.00 6 LONGER INVESTMENTS INCORPORATED LV6 A Registered Investment Advisor