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Home My WebLink About2010-03-25 - Agendas - FinalFayetteville Fireman's Pension and Relief Fund Meeting Date Adjourn Time 3 -asie .5`Io FA- Attendees: /vL Attendees: ,�y /y1Q0A.n,&, ASS N()ol Aster (I M ad ,DJ 1 co.t, oaeJ t dsa.:ry, AeenaU Subject: R0 1/ Motion To: Approoc Motion By: A'%/,j1 » ./Dass Seconded: /41/l,e.- kool Mayor Jordan 1.,#--- /Marion MarionDoss f Pete Reagan IV. Gene Warford t/ - Ronnie Wood e. t/ Sondra Smith to.." --- 6 G -D Subject: Y/! jh/( p Motion To: Approoc Motion By: A'%/,j1 » ./Dass Seconded: /41/l,e.- kool Mayor Jordan i/ Marion Doss f Pete Reagan Gene Warford ✓ Ronnie Wood ✓ Sondra Smith V lv D J Atte Subject: filt4dipv. At Motion To: d,prpr/t Motion By: s £Q fa4c/ Seconded: Maty OO SS Mayor Jordan i/ Marion Doss Pete Reagan Gene Warlord t/' Ronnie Wood Sondra Smith r/ 4 Subject: Motion To: Motion By: Seconded: Mayor Jordan Marion Doss Pete Reagan Gene Warford Ronnie Wood Sondra Smith 4 Lioneld Jordan Chairman Sondra E. Smith Secretary Marion Doss Position 1/Retired alr• enolle Firemen's Pension and Relief Fund Board of Trustees Meeting Agenda March 25, 2010 Pete Reagan Gene Warlord Ron Wood Position 2/Retired Position 3/Retired Position 4/Retired A meeting of the Fayetteville Firemen's Pension and Relief Fund Board of Trustees will be held at 3:00 PM on March 25, 2010 in Room 326 of the City Administration Building. Approval of the Minutes: • February 25, 2010 Meeting Minutes Pension List Changes: • None Approval of the Pension List: • April 2010 Pension List Old Business: New Business: • Revenue Expense Report — February 28, 2010 • Parking Permit Memo Longer Investments: • Monthly Report — February 28, 2010 Informational: • 2010 Meeting Schedule Board Members Mayor Jordan Sondra E. Smith Marion Doss Pete Reagan Gene Warford Ron Wood Chairman Secretary Position 1/Retired Position 2/Retired Position 3/Retired Position 4/Retired aye evtle ARKANSAS Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes February 25, 2010 Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes February 25, 2010 Page 1 of 7 A meeting of the Fayetteville Firemen's Pension and Relief Fund Board of Trustees was held at 3:00 PM on February 25, 2010 in Room 326 of the City Administration Building. Mayor Jordan called the meeting to order. Present: Mayor Jordan, Marion Doss, Gene Warford, Ronnie Wood, Sondra Smith, City Attorney Kit Williams, Paul Becker Finance Director, Elaine Longer, Kim Cooper, Longer Investments, Trish Leach, Audience and Press. Absent: Pete Reagan. Approval of the Minutes: December 31, 2009 Meeting Minutes Marion Doss moved to approve the December 31, 2009 Firemen's Pension and Relief Fund Board of Trustees meeting minutes. Gene Warford seconded the motion. Upon roll call the motion passed 5-0. Pete Reagan was absent. Pension List Changes Arthur Caselman Deceased Sondra Smith: Mr. Caselman deceased in February so the March Pension List will be different than the February List. We go ahead and pay for the full month when they decease during the month. Marion Doss: The widow will get the benefit. Sondra Smith: Yes, it will revert to the widow. All you will see changing is the name but the dollar amount will remain the same. 113 West Mountain 72701 (479) 575-8323 TDD (Telecommunications Device for the Deaf) (479) 521-1316 Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes February 25, 2010 Page 2 of 7 Approval of the Pension List: February and March 2010 Pension List Gene Warford moved to approve the February and March, 2010 Pension List. Ronnie Wood seconded the motion. Upon roll call the motion passed 5-0. Pete Reagan was absent. Old Business: Osborn, Carreiro & Associates, Inc. Actuarial Study Invoice Sondra Smith: The invoice for $2,900 is for the work he performed. We talked about that at the last meeting and everyone thought he was going to bill us $2,200. Evidentially he and Pete talked and we reconsidered the amount. Since it wasn't on the agenda I didn't catch it. I went back through all the minutes and found where the amount was re -approved for up to $3,000. Marion Doss: I guess we better pay it then. Mayor Jordan: That is what the minutes reflected. Sondra Smith: I wanted to let you all know. Marion Doss: I appreciate you researching that and telling us why it went up $700. Kit Williams: Since the minutes said up to $3,000 then you don't need another motion. Sondra Smith: I've received a check from Accounting but I'm holding it until I talked to you. I've talked to Jody and he knows what's going on. He wants you all to be happy. We talked about $2,200 for three scenarios and he did four and then he came here. That was for everything. New Business: NCPERS 2010 Annual Conference Sondra Smith: We usually send Pete to this conference and I received the brochure so I wanted to make everybody aware it's coming up. If we want to send someone we would have to move to pay for those expenses. If you choose not to send someone that's fine, I just wanted make you aware that the conference is coming up. Marion Doss: I don't think we sent anyone last year due to the cost and we didn't want to cause any additional expense to the pension fund. Sondra Smith: Right. 113 West Mountain 72701 (479) 575-8323 TDD (Telecommunications Device for the Deaf) (479) 521-1316 Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes February 25, 2010 Page 3 of 7 Gene Warford: Where is it at this year? Sondra Smith: Las Vegas, It's always in a nice place. Kit Williams: I think you were wise last year. Ronnie Wood: I don't think we are in any position to send somebody to a conference. Marion Doss: It's not the time to do that I don't think. Local Pension Fund Report to the Council Sondra Smith: A copy of the report is in your agenda that the Mayor has to give by State Statute every year in January. I wanted you to have a copy of it and see what was reported to the Council. Revenue Expense Report — December 31, 2009 Sondra Smith: A copy of the report that Trish does for the pension plan is in your agenda. It shows the history of your investments, expenditures, revenues, and your balance through December 31, 2009. Longer Investments: Longer Investment — Investment Report A copy of the report was given to the Board. Elaine Longer: The first page shows the updated portfolio through February 23`d. The common equities are 45% of total portfolio. Page two the International is 7.4%. Your International is running between 15% and 20% of total equity exposure. Your combined total equity is 52%. We need approval to be over 50%. Gene Warford made a motion to approve the equity overage. Marion Doss seconded the motion. Upon roll call the motion passed 5-0. Pete Reagan was absent. Elaine Longer: We've had a volatile start to the year. We hit a new high on this run up from last March's low in January which was about $10,725. From there we fell off to about $9,825. We've had a pretty steep 9% correction and then we've bounced back up to about $10,400, today we touched $10,200. We're waffling around in no mans land waiting to see some more of the first quarter earnings, the GDP numbers, and what the government is going to do about health care. There are a lot of variables on the table. We're eclipsing the one year anniversary of the 113 West Mountain 72701 (479) 575-8323 TDD (Telecommunications Device for the Deaf) (479) 521-1316 Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes February 25, 2010 Page 4 of 7 low which was March 9th of last year. At the high point that we reached in January we were about 67% off the low of a year ago. We have defined a trading range with that $10,725 being the high end now we are going to sort of trade in between the $9,800 and the $10,725 for awhile. If we break below $9,800 then we're looking at more like a 10% to 20% correction of that run up. We have taken some profits in the portfolio. We have some cash reserves. We are hovering down at that 50% level where as at one point we were at about 56% to 57%. The total portfolio income yield on page three shows the income is at 3.4% income yield which is the equivalent to a 10 year treasury yield but that includes your 52% growth component. We've continued to emphasis stocks that have a high dividend income. For the most part your portfolio is structured with the multi national corporations that are of higher quality, higher dividend income, are better positioned to capitalize on international growth. We trimmed the sails a little but we are still invested on the growth side. Page four the realized gains year to date are about $42,000. Income year to date is about $25,000. Page five is a break down of the fixed income portfolio. This has been a year where the interest income on the long term bonds is still fairly low with the 10 year treasury yielding about a 3.65%. Your weighted average yield to maturity is about 4.6%. The weighted average maturity is 7.3 years. That means compared to a 10 year that yields 3.60% you're in an average maturity of seven years yielding a 4.60%. You still have a higher than market interest rate with a more conservative maturity structure. We don't have much call risk in there because we have rolled into longer term maturities as we have the opportunity this past year. At this point in terms of your maturity structure only 3.1% of the portfolio matures within the next year, where as within three years 18.8% matures. Most of what would have been coming up to mature at this point in time has already been reinvested. Page six includes the performance from where we started managing the portfolio in 2002. Our January meeting was canceled because of snow so we didn't have a chance to review last year, but in 2009 your equity return was 29.1%. That compares to an S&P cash retum of 23.5%, S&P with compounded dividends of 26%. You've out performed the stock market substantially last year. In your equity mutual funds, that would be your International holdings, you were up approximately 24%, bonds were 3.5%, and Real Estate Investment Trusts returned 17.1%. We didn't hold them for the whole year, we had a good buy point and within less than two weeks we had made the 17% so we decided to leave the party. They haven't gone much higher since we sold them. Your total return last year was 16.3% which really almost fully compensated for the year before which was down 20%. We had a good make up year last year and that's why we're a little bit more conservatively structured at this point in time. We want to protect the gains we made last year and protect our flexibility in this volatility that we see coming into the first quarter. Looking down to this year basically your stocks are unchanged with the market down 1.8%. We've been able to hold pretty steady in this down draft so far this year. The equity funds, which is International, are down 4.5%, the EIFA Index, which is the measure of the International 113 West Mountain 72701 (479) 575-8323 TDD (Telecommunications Device for the Deaf) (479) 521-1316 Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes February 25, 2010 Page 5 of 7 Stocks, is down about 5.5%, and bonds 1.3%. The total with everything mixed in is flat so far this year. The final summary your equity return inception to date is 3.7% which out performs the S&P. Your International is about a 2% and this includes the big down draft year in 2008. Bonds have averaged 4.3%, and Real Estate Investment Trusts have compounded at 30.3%. Your compound annual return is back to a 4% average annual return inception to date. That compares to if you look at just a blended 50/50 return between the S&P and the Lehman Government Bond Index that would be a 3.6% compound annual verses your 4%. We haven't managed your account as long as we have the Police but they have come back now to a compound annual 6%. I don't know your history back to 1989 or so, I can only speak to this period of time at least it's returned back to a 4% compound annual coming off that year that was so negative in 2008. Page seven shows the contributions from August of 2002 have been near a million. Distributions have been approximately eight million. Page eight is the asset reconciliation that we go through in each meeting that shows the beginning portfolio amount, the contributions that have come in, the net distributions, and the components of investment return. Investment return is back to 2.7 million investment return over that time period but that has not offset the distribution rate of 8 million. We included at the bottom the fact that we are still awaiting clarification of the 7% actuary assumption that was changed at the start of this year. There has not been an explanation given that we can understand as far as how they are coming to that conclusion. When you look at the fact that half of the portfolio is fixed income investments and the reinvestment rate in a 10 year maturities is 3.5%. If you assume then that even you could get 4% on half the portfolio using some of the things that we use to be able to maintain in an above market income yield, then you would still have to assume that the rest of the portfolio is going to achieve 12% to 12.5% on the equity side. That's outside the realistic expectations of anyone that I know. We are using 7% to 9% in our portfolio plans that we run for retirees and for foundations. If you look at a blended return it doesn't get you anywhere near that 7% because you're really hampered by what is available in the fixed income market at this point in time. Unless you stretch for higher yield by sacrificing credit quality or taking on more maturity structure risk which I wouldn't recommend. In the minutes that we read regarding the August meeting, when Jody Carreiro was talking about this, he said that you should discuss a more conservative structure of 70% bonds and 30% stocks to avoid risk of ruin. If you look at a higher allocation to the bond market, which is no where near your 7% return, it would actually significantly increase your risk of ruin for you to make that kind of asset allocation shift. I don't understand where they are getting their numbers or their assumptions behind their rate of return. That's why I bring it up in every meeting because it is part of your investment policy and the policy that we follow for investing funds at the original 6% that we discussed when we took the portfolio on as investment manager. I still feel comfortable with that assumption going forward but I'm not willing to change the policy to a 7% without some explanation of how they are arriving at that. Does that make sense? 113 West Mountain 72701 (479) 575-8323 TDD (Telecommunications Device for the Deaf) (479) 521-1316 Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes February 25, 2010 Page 6 of 7 Paul Becker: This has been discussed with the Pension Review Board at their last meeting. The Longer View A copy of the report was given to the Board. Elaine Longer: The Longer View is a year end newsletter. I don't think I have ever struggled more with a year end news letter than I did with this one. There are so many variables that we are dealing with as we look into the crystal ball for 2010. On the plus side you have very few alternatives to equity investing, in that the five year treasury yield is 2.5% fully taxable. We can get a 2.5% dividend income yield on the Dow Jones Industrial Average that is tax preferred for taxable accounts. The returns on assets outside of equities are really not very attractive and they don't pose much of a competition for investor funds at this point in time. Also the earnings have continued to come through and surprise on a positive basis. In particular the S&P 500 and the Dow companies that are able to compete internationally, have continued to be able to deliver productivity improvements by reducing costs and have delivered very good earnings. The earnings have actually keep up with the progression of the stock market price to the point that we ended the year at about 15.5% times expected earnings for 2010, which is not out of line with historical evaluations. The evaluation on the stock market even though we have had a pretty dramatic run off of the low, that we achieved in March, has not reached over evaluation and there aren't very many attractive alternatives. That being said you have to still include the risks that are out there which are systemic risks and those are on page three. Basically we are seeing one of them play out on the front pages of the newspaper. We talked about that sovereign debt problems could worsen. At the time that I wrote this it was mostly Dubi's default on their debt that was on the front pages of the newspapers, but behind the scenes you had this drama being played out among the PIGS which is short for Portugal, Ireland, Italy, Greece, and Spain. They are sort of the weak sisters in the Euro economic grouping and at this point in time you can see that they are dealing with sovereign debt problems that don't just threaten Greece's ability to issue debt or Portugal or coming up next Spain, but it does actually threaten the Euro and what it means for the future of the Euro. The Euro had not been stress tested until this economic crisis. So what you are looking at is this place out is sovereign countries that have to be able to issue debt that have no control over their monetary future, because the monetary is controlled by the European Central Bank, but they have to control their fiscal future. Where as in America, we came together on the TARP weekend and you had the legislative branch of the government, the executive branch of the government, and the Federal Reserve all hands on deck to take care of this problem. We were able to come together with an emergency resolution that really saved the banking system. Europe is unable to do that with as much swiftness as what we were able to bring to the situation. As a result their GDP growth is slower but now you're starting to see the other affect that they can't address, the domestic sovereign debt issues in such a coordinated manner as we were able to do. This will play out some more, it is something to be watched and it is something the 113 West Mountain 72701 (479) 575-8323 TDD (Telecommunications Device for the Deaf) (479) 521-1316 Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes February 25, 2010 Page 7 of 7 markets are very sensitive to. Greece was supposed to issue a 10 year government note auction this week, they postponed it. This will continue to be something that hovers over the market. Today we have testimonies on Capital Hill from Bernanke as it pertains to the financial situation. We've got bank re -regulation on the books. That's still being debated in Congress. We have the Health Care Summit as we speak. We still have a lot on the plate that is coming from Washington and it does require watching what Congress is doing and what these major policy initiatives are doing as it pertains to managing money. The political risk that we talk about in the newsletter is not behind us but it has been somewhat assuaged by the fact that there seems be more balance coming into post the Massachusetts election. Somehow these parties have to get to by partisan agreement on something. We are going down the road towards that hopefully. Longer 2009 4th Quarter Report A copy of the report was given to the Board. Informational: NCPERS Membership Sondra Smith: At the meeting in December you approved to pay the membership dues of $150, the check has been mailed for the membership dues. 2010 Meeting Schedule A copy of the meeting schedule was given to the Board. Additional Information: Sondra Smith: Do you have anything else for the agenda or anything for the next agenda you can think of? We will be working on the elections next month. We send out the nomination letters first. Marion I believe you and Pete are up this time. Marion Doss: That is what I was thinking too. Sondra Smith: We will start working on that in March. Meeting Adjourned at 3:25 PM 113 West Mountain 72701 (479) 575-8323 TDD (Telecommunications Device for the Deaf) (479) 521-1316 FIREMEN'S RELIEF AND PENSION April 4 2010 4 2 4 4 THE FOLLOWING ARE THE OBLIGATIONS OF THE FIREMEN'S RELIEF FUND FOR THE MONTH LISTED ABOVE YOU INSTRUCTED TO ARE HEREBY ISSUE CHECKS TO THE PAYEES, IN THE AMOUNTS SHOWN AND FOR THE PURPOSE SO STATED. DATE OF EMP#RETIREMENT NAME Regular Mo Year To Date Regular Benefit Act 1373 Benefit Reg Benefit Fed Tax St Tax Net Future Supplement Q 79 11/99 SMITH (ARMSTRONG) (DILL), PAMELA 1,812.74 7,250.96 500.00 300.00 1,012.74 R 177 4/04 BACHMAN, EDDIE 2,618.55 10,474.20 479.27 119.82 2,019.46 S 74 3/86 BAIRD, JULIA 1,802.08 7,208.32 350.00 145.00 1,307.08 ✓ 63 5/72 BOLAIN, ANN 109.27 437.08 109.27 R 68 7/99 BONADUCE, MICHAEL 2,988.76 11,955.04 475.38 2,513.38 S 44 9/66 BOUDREY, BETTY MRS. 2,477.42 9,909.68 300.00 50.00 2,127.42 R 45 9/66 BOUDREY, HOWARD 2,089.28 8,357.12 2,089.28 R 49 7/68 BOUDREY, JACK 1,647.63 6,590.52 287.68 50.00 1,309.95 ✓ 5 5/72 CASELMAN, ARTHUR deceased 2/11/10 0.00 262.26 0.00 ✓ 210 5/72 CASELMAN, GLADY'S 131.13 262.26 131.13 R 57 5/90 CATE, ROY 1,788.90 7,155.60 1,788.90 ✓ 6 4/68 CHRISTIE, ARNOLD 109.27 437.06 109.27 ✓ 8 10/78 COUNTS, WAYNE 109.27 437.06 109.27 R 77 11/99 DILL,GARY JOHN 1,812.75 7,251.00 100.00 1,712.75 R 188 12/05 DOSS, MARION H 5,376.91 21,507.64 900.00 350.00 4,126.91 R 188 12/05 DOSS, MARION H plus 25 additional pay 731.61 2,926.44 731.61 R 11 2/76 FARRAR,ALONZO 998.86 3,995.44 30.00 968.86 R 192 4/06 FARRAR, DANNY 4,155.36 16,621.44 207.00 207.00 3,741.36 R 38 5/84 FRALEY, JOSEPH G. 1,768.12 7,072.48 200.00 15.00 1,553.12 R 170 5/03 FREEDLE, LARRY 3,816.75 15,267.00 500.00 100.00 3,216.75 R 170 5/03 FREEDLE, LARRY plus 25 additional pay 141.37 565.48 141.37 R 92 03/02 GAGE,TOMMY 2,598.69 10,386.76 226.00 50.00 2,320.69 ✓ 34 6/79 HARRIS, JAMES E. 109.27 437.08 109.27 ✓ 70 11/99 HARRIS, MARY RUTH 109.27 437.08 109.27 Q 182 10/04 JENKINS, EILEEN 1,788.75 7,155.00 150.00 75.00 1,563.75 R 93 06/02 JENKINS, JOHN 1,788.78 7,155.04 350.00 100.00 1,338.76 R 66 07/01 JOHNSON,ROBERT 3,073.47 12,293.88 500.00 100.00 2,473.47 R 84 4/95 JORDAN, CHARLIE 2,274.95 9,099.80 150.00 50.00 2,074.95 S 76 5/88 JUDY, JAN 1,647.63 6,590.52 100.00 25.00 1,522.63 R 37 3/84 KING, ARNOLD D. 1,522.37 6,089.48 325.00 75.00 1,122.37 R 54 5/89 KING, ARVIL 1,711.21 6,844.84 130.00 50.00 1,531.21 R 13 10/67 LAYER, MERLIN 456.22 1,824.88 456.22 R 173 12/03 LEDBETTER, DENNIS 3,775.80 15,103.20 650.00 200.00 2,925.80 ✓ 181 10/04 LEE, VIOLA LOUISE 109.27 437.08 109.27 R 51 10/88 LEWIS, CHARLES 1,647.63 6,590.52 200.00 100.00 1,347.63 R 40 9/85 LOGUE, PAUL D. 2,868.28 11,473.12 325.00 75.00 2,468.28 R 202 02/08 MAHAN, MARSHALL 4,077.28 16,309.12 612.00 204.00 3,261.28 R 50 9/88 MASON, LARRY 1,631.25 6,525.00 137.61 25.00 1,468.64 R 39 4/85 MC ARTHUR, RONALD A. 1,753.74 7,014.96 150.00 50.00 1,553.74 ✓ 35 2/82 MC CHRISTIAN, DWAYNE 109.27 437.08 109.27 R 15 4/77 MC WHORTER, CHARLES 1,334.51 5,338.04 150.00 1,184.51 S 209 8/81 MILLER, ALICE GAYLE 1,304.07 5,216.28 125.00 25.00 1,154.07 R 73 2/00 MILLER,KENNETH 3,180.02 12,720.08 325.00 75.00 2,780.02 R 73 2/00 MILLER,KENNETH plus 25 additional pay 170.60 682.40 170.60 ✓ 42 2/86 MOORE, JAMES H. 109.27 437.08 109.27 ✓ 176 4/04 MORRIS, DIXIE E. 125.66 502.64 125.66 R 48 7/88 MULLENS, DENNIS W. 2,191.30 8,765.20 2,191.30 R 184 3/05 NAPIER, LONNIE 3,518.28 14,073.12 110.00 88.00 3,320.28 R 196 01/02 ONEAL, TEDDY 4,120.99 16,483.96 400.00 100.00 3,620.99 R 46 5/88 OSBURN, TROY 1,899.66 7,598.64 200.00 38.00 1,661.68 R 81 02/01 PHILLIPS,LARRY 2,765.09 11,060.36 2,765.09 R 203 02/08 PIERCE, JOEY 3,847.18 14,588.72 550.00 180.00 2,917.16 R 53 2/89 POAGE, LARRY 2,348.70 9,386.80 325.00 105.00 1,918.70 R 186 06/05 REAGAN, PETE 3,535.71 14,142.84 200.00 0.00 3,335.71 ✓ 201 *02/08 REED, JUNE 109.27 437.08 109.27 S 172 12/03 SCHADER, MADGE 1,386.01 5,544.04 1,386.01 R 41 9/85 SCHADER, TROY 1,524.99 6,099.96 57.00 25.00 1,442.99 R 190 04/06 SHACKELFORD, GLEN 3,647.18 14,588.72 400.00 200.00 3,047.18 R 36 5/76 SPRINGSTON, CARL 806.19 3,224.76 70.00 17.00 719.19 5 90 03/02 STOUT, IMOGENE W. 767.80 3,071.20 767.80 R 165 12/02 TATE, RALPH 3,668.10 14,672.40 300.00 100.00 3,268.10 ✓ 65 3/86 TUNE, BILLIE SUE 136.59 546.36 136.59 R 71 1/00 WARFORD,THOMAS 2,502.72 10,010.88 300.00 2,202.72 S 207 7/68 WATTS, MAGGIE 437.09 1,748.36 437.09 R 88 01/02 WOOD,RONNIE D 3,077.15 12,308.60 400.00 100.00 2,577.15 S 208 9/88 WRIGHT, Barbara 1,691.34 6,765.36 200.00 25.00 119,540.61 478,162.44 12,446.94 3,593.82 102,033.51 102,033.51 3/25/2010 C:\DOCUME-1\ssmith\LOCALS-1 \Temp\XPgrpwise\April 2010.xls WM DATE OF EMP# RETIREMENT NAME Regular Mo Year To Date Regular Benefit Act 1373 Benefit Reg Benefit Fed Tax St Tax Net Future Supplement 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 RENDERED OR FURNISHED; AND THAT THE CHARGES MADE THEREFORE DO NOTCASE MAY BE, WERE ACTUALLY EXCEED THE AMOUNT ALLOWED BY LAW OR THE CUSTOMARY CHARGE FOR SIMILAR SERVICES OR SUPPLIES. SECRETARY ACKNOWLEDGEMENT STATE OF ARKANSAS ) COUNTY OF WASHINGTON) SWORN TO AND SUBSCRIBED BEFORE ME THIS CHAIRMAN AND PRESIDENT DAY OF 20 NOTARY PUBLIC MY COMMISSION EXPIRES : 3/25/2010 C:\DO C U ME -1 \ssmith\LOCALS-1 \Tem p1XPg rpwisetApril 2010. xis WM Revenues: Employee Contributions Employer Contributions State Insurance Tax ocal Millage (.4 mills) I terest and Dividends ain (Loss) on Sales uture Supplement isc Revenue Total Revenue Frxpenditures Regular Monthly Benefrts ¶uture Supplement Drop Expense Ihvestment Manager Fees Other Expenses: Audit Fees tprofessional Services egal Fees yank Fees Tublications and Dues Travel and Training Total Expenses Ret Income (Loss) Before Market Adj Market Adjustment Ret Income (Loss) Fire Pension Fund Revenue Expense Summary 2/28/2010 2009 2008 2007 2006 2005 $ - $ $ - $ $ - $ $ 18,549.70' $ $ 27,562.31 $ $ 51,990.09 "$ $ 98,102.10 $ $ 239,081.22 $ $ 13,421.26 $ $ 2,900.00 $ 24.83 $ $ 150.00 $ 255 577 31 #$ $ (157,475.21) $ $ (157,475.21) $ 125,710.67 485,345.06 179,204.26 84,355.52 24,192.00 389.74 899,197.25 1,434,487.32 24,192.00 2,973.17 53,323.12 42.00 . 3,500.00 207.54 1,518,725.15 (619,527.90) 583,853.06 (35,674.84) $ 1,356.43 $ $ 2,712.85 $ $ 146,031.32 $ $ 441,696.50 $ $ 265,704.47 $ $ (728,656.78) '$ $ 31,333.44 $ $ 0.96 $ $ 160,179.19 $ 1,436,063.26 31,333.44 43,816.86 67,758.33 3,500.00 $ 228.60 $ 150.00 $ 2,548.88 $ 1,585,419.37 $ (1,425,240.18) $ (967,119.37) $ (2,392,359.55) 6,987.00 $ 11,863.00 $ 23,439.00 13,973.00 $ 25,852.00 $ 46,878.00 150,067.00 $ 151,560.00 $ 225,492.00 388,877.00 $ 370,649.00 $ 339,416.00 292,444.00 $ 311,217.00 $ 308,578.00 421,630.00 $ 383,393.00 $ 297,771.00 38,917.00 $ 27,060.00 $ 24,480.00 1,044.00 $ 541.00 $ 176.00 1,313,939.00 $ 1,282,135.00 $ 1,266,230.00 $ 1,430,646.00 $ $ 38,766.00 $ $ 125,419.00 $ $ 76,454.00 $ $ 3,500.00 $ $ 205.00 $ $ 150.00 $ 1,281,954.00 26,749.00 238,801.00 78,764.00 3,300.00 2,200.00 1,025.00 202.00 150.00 3,462.00 1,675,140.00 $ 1,636,607.00 (361,201.00) $ (354,472.00) 3,621.71 $ 280,562.00 (357,579.29) $ (73,910.00) $ 1,097,427.00 $ 24,390.00 $ 398,082.00 $ 84,005.00 $ 3,210.00 $ 188.00 $ 100.00 $ 2,389.00 $ 1,609,791.00 $ (343,561.00) $ (378,645.00) $ (722,206.00) Rook Value Total Reserve Assets' fir arket Value Total Reserve Assets * ssets less any liabilities t Market Value calculated at year end 5,284,152.33 $ -5,441,627.54 $ 5,595,404.54 $ 5,759,825.37 $ 3/23/2010 NAMonthly Pension Report\Fire Pension Summary ti 6,061,155.44 $ 7,486,396.00 $ 5,823,183.74 $ 8,215,544.00 $ 7,847,597.00 $ 8,202,070.00 8,573,123.00 $ 8,647,034.00 a�ltve eville THE CITY OF FAYETTEVILLE, ARKANSAS ARKANSAS TDD (Telecommunications Device forthe Deaf) www.accessfayetteviile.org (479) 521-1316 TO: City Official Parking Permit Holder FROM: Sharon Crosson, Parking and Telecom Manager DATE: March 4, 2010 SUBJECT: Clarification of Parking Hang Tag Use for City Committees Currently, each of you has a City Official Parking Permit that is valid through December 31, 2010. This memo is being sent to clarify the allowed use of this hang tag. City Official Hang Tags are issued to City committee members to allow them to park free while attending their scheduled City committee meetings. Due to the limited number of parking spaces in the Downtown Square area, this hang tag is only valid for metered parking, and is only valid for use when you are attending the committee meeting you are assigned to. Every effort is made by our office to keep the 'free parking' available for customers visiting businesses on and around the Square. Part of this effort includes denying hang tag use on the Square. With the numerous and various types of City committee meetings occurring throughout each week, we can only allow you to use your hangtag for attending that specific committee meeting in which your hang tag was granted, and not for any other City business or downtown business venture. We strive to keep available parking to the many visitors of our downtown area. Thank you in advance for your cooperation in this program. We appreciate your dedicated service to the City of Fayetteville. me/slc Longer Investments Inc. PORTFOLIO APPRAISAL Fayetteville Fire Pension and Relief Fund U/A DTD 6-18-86 February28, 2010 Unit Total Market Pct. Unit Annual Cur. Quantity Security Cost Cost Price Value Assets Income Income Yield Common Stock 3,850 AT&T 25.06 96,499.56 24.81 95,518.50 1.7 1.680 6,468.00 6.7 1,650 Abbott Laboratories 46.31 76,404.88 54.28 89,562.00 1.6 1.760 2,904.00 3.8 850 B.P. Amoco PLC A.D.S. 42.14 35,816.06 53.21 45,228.50 0.8 3.360 2,856.00 8.0 2,950 BCE, Inc. 24.40 71,967.32 27.76 81,892.00 1.5 1.650 4,867.50 6.8 1,900 Best Buy Co. Inc. 36.45 69,263.55 36.50 69,350.00 1.2 0.560 1,064.00 1.5 1,400 Chevron Corp. 69.84 97,772.13 72.30 101,220.00 1.8 2.720 3,808.00 3.9 2,635 Cisco Systems, Inc. 18.35 48,357.99 24.33 64,109.55 1.1 0.000 0.00 0.0 1,000 Clorox Corporation 57.69 57,690.00 61.31 61,310.00 1.1 2.000 2,000.00 3.5 3,500 EMC Corporation 12.80 44,805.71 17.49 61,215.00 1.1 0.000 0.00 0.0 1,500 Emerson Electric Co. 38.01 57,018.45 47.34 71,010.00 1.3 1.340 2,010.00 3.5 870 General Dynamics Corp. 63.50 55,245.00 72.55 63,118.50 1.1 1.520 1,322.40 2.4 4,600 General Electric 15.94 73,338.52 16.06 73,876.00 1.3 0.400 1,840.00 2.5 1,750 Genuine Parts Co. 37.11 64,943.25 40.36 70,630.00 1.3 1.640 2,870.00 4.4 1,760 Home Depot, Inc. 26.92 47,375.68 31.20 54,912.00 1.0 0.950 1,672.00 3.5 2,340 Intel Corp. 15.86 37,109.78 20.53 48,040.20 0.9 0.630 1,474.20 4.0 560 International Business 122.28 68,477.02 127.16 71,209.60 1.3 2.200 1,232.00 1.8 Machines Corp. 1,150 Johnson & Johnson 59.03 67,880.59 63.00 72,450.00 1.3 1.960 2,254.00 3.3 1,000 Kimberly-Clark 60.18 60,180.70 60.74 60,740.00 1.1 2.640 2,640.00 4.4 Corporation 2,150 Kraft Foods Inc. 28.63 61,553.00 28.43 61,124.50 1.1 1.160 2,494.00 4.1 3,260 Market Vectors Gold 42.55 138,710.07 43.89 143,081.40 2.6 0.111 361.86 0.3 Miners 1,000 McDonald's Corp 56.48 56,477.70 63.85 63,850.00 1.1 2.200 2,200.00 3.9 1,500 Merck & Co. Inc. 25.27 37,897.65 36.88 55,320.00 1.0 1.520 2,280.00 6.0 2,870 Microsoft Corp. 29,27 84,002.46 28.67 82,282.90 1.5 0.520 1,492.40 1.8 5,500 Mitsubishi UFJ 5.45 29,975.00 5.12 28,160.00 0.5 0.000 0.00 0.0 Financial Group, Inc. 1,500 National Oilwell Varco, 42.67 64,009.35 43.47 65,205.00 1.2 0.000 0.00 0.0 Inc. 1,575 Noble Corp. 39.96 62,931.96 42.26 66,559.50 1.2 0.380 598.50 1.0 1,575 Northern Trust Corp. 50.82 80,044.10 53.29 83,931.75 1.5 1.120 1,764.00 2.2 4,000 Oracle Corp. 18.46 73,820.88 24.65 98,600.00 1.8 0.200 800.00 1.1 3,500 Pfizer Inc. 13.85 48,473.77 17.55 61,425.00 1.1 0.720 2,520.00 5.2 1,285 Procter & Gamble Co. 49.36 63,426.67 63.28 81,314.80 1.5 1.760 2,261.60 3.6 3,500 Sturm, Roger & Co. Inc. 10.34 36,182.65 11.76 41,160.00 0.7 0.240 840.00 2.3 3,535 Symantec Corporation 16.45 58,135.27 16.55 58,504.25 1.0 0.000 0.00 0.0 2,000 Wal-Mart Stores Inc. 50.10 100,205.86 54.07 108,140.00 1.9 1.090 2,180.00 2.2 2,125,992.58 2,354,050.95 42.1 61,074.46 2.9 Preferred Debt Securities 5,000 AT&T Preferred 24.99 124,939.00 26.37 131,850.00 2.4 1.594 7,968.75 6.4 6.375% A2/A (C 2-12-12) 1,500 G.E. Preferred 6.10% 24.76 37,139.10 24.64 36,960.00 0.7 1.525 2,287.50 6.2 AAA/AAA (C 11-15-07) 1,500 G.E. Preferred 6.625% 25.06 37,588.50 25.34 38,010.00 0.7 1.656 2,484.37 6.6 AAA/AAA (C 6-28-07) 199,666.60 206,820.00 3.7 12,740.62 6.4 Mutual Funds -Equity 5,765.0000 Japan Smaller 7.62 43,930.96 8.13 46,869.45 0.8 0.053 306.70 0.7 Capitalization Fund Inc. 675.0000 Thai Fund Inc. 9.63 6,503.29 8.73 5,892.75 0.1 0.372 250.83 3.9 Longer Investments Inc. PORTFOLIO APPRAISAL Fayetteville Fire Pension and Relief Fund U/A DTD 6-18-86 February 28, 2010 Unit Total Market Pct. Unit Annual Cur - Quantity Security Cost Cost Price Value Assets Income Income Yield 925.0000 iShares MSCI Hong 16.09 14,883.76 15.43 14,272.75 0.3 0.383 353.96 2.4 Kong Index Fund 11,700.0000 iShares MSCI Japan 9.89 115,710.60 9.94 116,298.00 2.1 0.176 2,058.73 1.8 Index Fund 1,275.0000 iShares MSCI 11.70 14,913.71 11.01 14,037.75 0.3 0.514 655.41 4.4 Singapore Index Fund 830.0000 iShares MSCI Taiwan 8.47 7,028.09 11.77 9,769.10 0.2 0.416 345.43 4.9 Index Fund 5,755.0000 iShares S&P Europe 35.62 204,977.29 36.02 207,295.10 3.7 0.996 5,733.72 2.8 350 Index Mutual Funds -Fixed 3,750.0000 iShares iBoxx Investment Grade Corp Bond 407,947.71 414,434.90 7.4 9,704.78 2.4 105.11 394,158.93 105.53 395,737.50 7.1 5.648 21,181.87 5.4 394,158.93 395,737.50 7.1 21,181.87 5.4 Corporate Bonds 50,000 Hershey Foods Corp. 97.63 48,816.00 111.94 55,970.60 1.0 6.950 3,475.00 7.1 Notes A2/A (NC) 6.950% Due 08-15-12 50,000 IBM Corp. Debentures 100.01 50,004,00 121.03 60,515.20 1.1 7.000 3,500.00 7.0 Al/A+ (Subject to make whole call) 7.000% Due 10-30-25 Accrued Interest 1,272.71 0.0 98,820.00 117,758.51 2.1 6,975.00 7.1 Government Bonds 1,000,000 U. S. Treasury Note 102.65 1,026,531.25 104.53 1,045,312.18 18.7 4.000 40,000.00 3.9 4.000% Due 08-15-18 Accrued Interest 1,436.46 0.0 1,026,531.25 1,046,748.64 18.7 40,000.00 3.9 Government Agency 50,000 Tennessee Valley 98.95 49,474.00 104.67 52,332.85 0.9 5.625 2,812.50 5.7 Authority (NC) 5.625% Due 01-18-11 250,000 Federal Home Loan 100.00 250,000.00 102.62 256,562.50 4.6 5.000 12,500,00 5.0 Bank (Call 10-1-10 @ 100,1X) 5.000%Due 10-01-12 200,000 Federal Home Loan 100.00 200,000.00 108.37 216,750.00 3.9 6.000 12,000.00 6.0 Bank (Call 1-3-12 @ 100, IX) 6.000% Due 07-03-17 Accrued Interest 7,250.00 0.1 Cash and Equivalents Dividends Accrued Money Market Restricted Cash 499,474.00 532,895.35 9.5 27,312.50 5.5 6,034.56 405,124.09 115,000.00 6,034.56 405,124.09 115,000.00 0.1 7.2 2.1 0.000 0.010 0.010 0.00 41.08 11.66 0.0 0.0 0.0 526,158.65 526,158.65 9.4 52.74 0.0 2 Longer Investments Inc. PORTFOLIO APPRAISAL Fayetteville Fire Pension and Relief Fund U/A DTD 6-18-86 February28, 2010 Unit Total Quantity Security Cost Cost Price Market Pct. Unit Annual Cur. Value Assets Income Income Yield TOTAL PORTFOLIO 5,278,749.72 5,594,604.50 100.0 179,041.98 3.4 3 Longer Investments Inc. CASH CONTRIBUTIONS/WITHDRAWALS Fayetteville Fire Pension and Relief Fund U/A DTD 6-18-86 From 08-15-02 To 02-28-10 CONTRIBUTIONS 2002 Total Additional transfers from Merrill Lynch 09-10-03 Money Market 08-04-04 Money Market 09-01-05 Money Market 08-17-06 Money Market (Bristol-Myers Squibb litigation settlement) 07-26-07 Money Market 07-31-08 Money Market 12-08-08 Money Market 02-24-09 Money Market (Bristol-Myers Squibb litigation settlement) 06-18-09 Money Market (American International Group Inc. litigation settlement) 07-16-09 Money Market $38,000.00 11-25-09 Money Market $55,000.00 12-22-09 Money Market $15.82 (Stock Exchange Options Trading Antitrust class action) $147,498.38 $350,000.00 $127,000.00 $145,000.00 $408.95 $55,000.00 $40,000.00 $37,000.00 $106.58 $89.78 WITHDRAWALS 2002 Total 2003 Total 2004 Total 2005 Total 2006 Total 2007 Total 2008 Total 2009 Total 2010 01-01-10 02-01-10 Money Market Money Market Money Market Money Market Money Market Money Market Money Market Money Market Money Market Money Market 4 $995,119.51 $199,000.00 $751,000.00 $935,000.00 $1,106,000.00 $1,536,000.00 $926,000.00 $1,480,000.00 $928,500.00 $111,000.00 $88,000.00 $8,060,500.00 2010 Meeting Calendar Firemen's Pension and Relief Fund Board of Trustees Last Thursday of the Month 3:00 PM - City Administration Room 326 January 28, 2010 Canceled due to weather February 25, 2010 March 25, 2010 April 29, 2010 May 27, 2010 June 24, 2010 July 29, 2010 August 26, 2010 September 30, 2010 October 28, 2010 November 18, 2010 (This date was changed due to the Thanksgiving Holiday) December 30, 2010