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Home My WebLink About2006-09-28 - Agendas - Final Firemen's Pension and Relief Fund Meeting Agenda September 28, 2006 A meeting of the Fayetteville Firemen's Pension and Relief Fund will be held at 11 :00 AM on September 28, 2006 in Room 326 of the City Administration Building 1. Approval of the Minutes: • August 31, 2006 Meeting Minutes 2. Approval of the Pension List: • Revised September, 2006 Pension List • October, 2006 Pension List 3. New Business: • Mark Martin and Darrin Williams Update • Merrill Lynch Letter • Discussion on approving Pension List after checks are issued instead of before. • Kim Skelton Proof of registration • NCPERS Membership Dues 4. Old Business: • Extension of temporary COLA • COLA Resolution 5. Longer Investments: • Monthly Report Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes August 31,2006 Page 1 of 7 Firemen's Pension and Relief Fund Meeting Minutes August 31, 2006 A meeting of the Fayetteville Firemen's Pension and Relief Fund was held at 11 :00 AM on August 31, 2006 in Room 326 of the City Administration Building Mayor Coody called the meeting to order Present: Mayor Coody, Marion Doss, Dennis Ledbetter, Ronnie Wood, City Clerk Sondra Smith, City Attorney Kit Williams, Trish Leach, Accounting, and Nancy Allen. Dennis Ledbetter was absent until 11:15 AM. Absent: Pete Reagan and Ted O'Neal Approval of the July 20, 2006 Meeting Minutes: Mayor Coody: Are there any corrections that need to be made on the minutes? Sondra Smith: They probably haven't read them because I didn't get them finished until last night. They may need to look at them real quick. Marion Doss moved to approve the July 20, 2006 Meeting Minutes. Ronnie Wood seconded the motion. Upon roll call the motion passed 4-0. Dennis Ledbetter, Ted O'Neal and Pete Reagan were absent. Approval of the Pension Lists: Approval of the Revised March, 2006 Pension List: Sondra Smith: Because we approve the Pension List actually before the checks go out sometimes there will be changes. I asked Accounting to give us a new revised list when changes are made. In March I noticed they went back and voided Dwayne McChristian's check because he had not turned in his affidavit so that is the reason you have a new March list to approve. Approval of the September, 2006 Pension List: Sondra Smith: On the September Pension List, Mildred Tune and Paul Blackard deceased. It also reflects the Future Supplement amount that we finally received. That list will be totally different because those two pensioners' amounts have been removed from the September list and Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes August 31,2006 Page 2 of 7 your Future Supplement has been added. The October list will change again because the Future Supplement amount will not be paid again. That is a one time lump sum distribution. Trish Leach: Yes. Looking at that list when we get that money one of the first things we do is we go through and make sure that we received the correct amount of money, because last year they tried to short us a little bit. I have $103.68 next to Mildred Tune's name and of course she won't receive that. That was an error on my part so we will get that fixed. I was breaking it out to make sure we received all the money we should. They would give us money for her; it just wouldn't go to her that extra money will just sit in the fund. They don't want it returned or any thing. That is an error that jumps out and I should have caught that. I apologize. Marion Doss moved to approve the Pension List as corrected. Ronnie Wood seconded the motion. Upon roll call the motion passed 4-0. Dennis Ledbetter, Ted O'Neal and Pete Reagan were absent. New Business: Mildred Tune Deceased — August 14, 2006 A Copy of the obituary was given to the Board. Paul Blackard Deceased — July 17, 2006 A Copy of the obituary was given to the Board. Supplemental Amount Received A copy of the Supplemental Amount that was received was given to the Board. Extension of Temporary COLA: Kit Williams: This is where my memo comes into affect. I was not here at the last meeting but I have been provided a copy of the Actuarial Report and of course I wanted to advise you on several of the statutes involved. The initial legislative intent is that no benefit enhancement shall be implemented if it would cause the publicly supported retirement systems unfunded actuarial accrued liabilities to exceed a 30 year amortization. As the Board of Trustees you have a fiduciary duty to all pensioners, all beneficiaries including yourselves to manage the funds so that any proposed increase in the pension relief fund will not result in the deterioration of actuarial soundness. Mayor Coody: This is the same for the Police. Kit Williams: Not exactly but it is close. The State Pension and Relief Board requires this actuarial report every two years. In this report they ask, is there enough income to fully fund a Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes August 31,2006 Page 3 of 7 pension fund and they say "No" they don't have enough current assets. Is the fund considered actuarially sound under state law, "No"? If you look at the next page in Exhibit 2 of that the amount of the assets you have is about $10 million and the total liability is $20 million so the unfunded amount is almost $10 million. If you look at Exhibit 4 of the next page you can see how the funded percent has dived. It has taken a terrible sinking, if you look back at 1999 it was at 95%, then in 2001 when benefits were enhanced it went down to 75%, again in 2003 benefits were enhanced and it went to 60% and in 2005 again with additional benefits enhanced it went down to about 50%. I am very concerned. You realize that the statues say that if at any time there should not be sufficient money in the fund to pay each person the full amount in which he or she is entitled the beneficiary shall be paid by prorating the fund available among them. It won't be too long if there is only half enough money to pay that the fund is going to run out. Mayor Coody: Or the benefits get cut in half. Kit Williams: Well they have to get it cut in half right now. The fund will simply run out and then the only thing I think that will be coming in to finance this is the millage of four tenths of one mil divided among all the beneficiaries prorated. You would not have the previous savings and investments. It's not a very good result. I certainly think that any attempt at enhancements at this point and time are... Mayor Coody: Irresponsible? Kit Williams: I don't know how you could justify them. I think that even spending money, even though it's not much money, to have a cash flow method checked is not wise. I have prepared a resolution to that affect because I was instructed that was what this Board wanted to do. I have a resolution to authorize the expenditure of Fayetteville Firefighters Pension Relief Fund monies to pay for a cash flow projection evaluation study by the Arkansas Fire and Police Pension Board. That's not a giant expenditure but I just don't understand how if we only have 50% of the money needed to fund your pension how you all could be considering a benefit enhancement. Marion Doss: I think there are some guarantees associated with LOPFI for these old funds that have problems but I'm not exactly sure about those. I think in light of what you said we should table this until the next meeting when the full Board is here. I would rather everybody hear what you have to say about it rather than me or Ronnie trying to explain it to everybody. Kit Williams: Sure. I'll give Sondra the resolution so she can put it in the next agenda. Can you give the other members who weren't here a copy of this? Sondra Smith: Yes, we couldn't vote on it today anyway because it takes six out of seven to pass the increase. Mayor Coody: I see the benefits increased. Were those cash flow verses.. . Kit Williams: Do you remember weren't they all cash flow? Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes August 31,2006 Page 4 of 7 Marion Doss: They were all cash flow. Yes. Mayor Coody: They show a different result than this chart shows. Why would they think it was actuarial sound? Was it because of a cash flow study? Kit Williams: No. They don't think it was actuarially sound because that is a different study. It met the cash flow test it never met the actuarially soundness test. The cash flow test only looks over 20 years or something. Marion Doss: I don't know. I do know that the first benefit increase or the one we gave three years ago we used the cash flow method because it seemed like it was more favorable than the other method. Kit Williams: The other method would not allow it. It has not been actuarially sound for quite a while. Marion Doss: Yes. Sondra Smith: Also in your minutes when you have a chance to totally read them Elaine Longer said at your last meeting that from inception to date there's been $622,000 that came into the fund and $4,017,000 that has gone out so that shows that the fund is dwindling slowly over a number of years. Kit Williams: Well it's not slowly. There is only $10,000,000 left. How long does it take before you get to zero? Sondra Smith: Right. Kit Williams: And of course as the fund goes down you have fewer earnings. Sondra Smith: Well some of these are due to lump sum distribution amounts because of people being on the DROP list. Kit Williams: Do we have any more DROP people left? Sondra Smith: Yes. Marion Doss: I believe there are two more. Sondra Smith: There are three more Marshall Mahan, Joey Pierce, and Ted O'Neal. Mayor Coody: So if this is sent to LOPFI the City..... Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes August 31, 2006 Page 5 of 7 Kit Williams: If you send it to LOPFI the City would have to pay and if you don't send it to LOPFI then the benefits are reduced. Mayor Coody: You were saying that the State could take it over but that means city tax payers are still liable? Marion Doss: I'm not exactly sure how all that works. Mayor Coody: That's the way I understand it. Kit Williams: The City Council would have to agree to do that and the current unfunded actuarial liability at this point is $9.8 million. I don't see the City Council deciding to do that. Mayor Coody: No. $9.8 million that would take 1 mil per year for 10 years just to come up with $10,000,000. Kit Williams: The Police fund is not in as bad of shape as your fund but it still would cost money also if that was sent to the State, to LOPFI. Sondra Smith: Another thing that we probably need to talk about and see if there is a way we can do is anybody that's on the fund currently we need to know about marriages, divorces anything like that because that affects the report that Accounting has to send to have this study done and if they don't have the correct information to send to them then they are not completing this study correctly. Marion Doss: Well actually under this old plan if I understand it right if someone for instance marries after they are retired I don't think that the spouse is covered. Kit Williams: That would be another benefit enhancement that I think you would have to do. I think they've allowed that now but they didn't use to allow it. Again, I think a benefit enhancement is not something that you should be looking at right now. Marion Doss: I didn't know if that was ever passed or not. Kit Williams: You had to be married at the time of retirement. Marion Doss: Yes. Kit Williams: There is and I don't know maybe it's just for Police or Fire or maybe both but there is a provision now that would allow a board with a benefit enhancement provision to actually provide that benefit. Marion Doss: I don't think this board ever did that. Kit Williams: So far none of that has been done by either you or the police. Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes August 31,2006 Page 6 of 7 Mayor Coody: Any other questions on this? Do you want to table this until the next meeting? Marion Doss: Yes I think that would be a good idea. Mayor Coody: Thanks Kit. Kim Skelton Letter Requesting Cony of College Enrollment Sondra Smith: This is just something that I do every semester when college starts to make sure that we get proof of enrollment that she is attending school. A lot of times they can't get that until the second or third week of school so I should have it by the next meeting. Kit Williams: How old is she now? Sondra Smith: She's not 23 yet, I think she's 21. I have her date of birth. Old Business: There was no old business. Longer Investments: Approval of Equity Overage — Equities area at 52.5% Sondra Smith: We have to approve any Equity Overage. Mayor Coody: 50 % is what we.. . Kit Williams: That's the policy. Sondra Smith: Our policy is 25-50% and we said they could go plus or minus 5% with approval. Marion Doss: With approval. Sondra Smith: It is at 52.5%. Mayor Coody: Do you have any argument with that? Marion Doss moved to approve the Equity Overage. Ronnie Wood seconded the motion. Upon roll call the motion passed 5-0. Ted O'Neal and Pete Reagan were absent. Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes August 31, 2006 Page 7 of 7 Monthly Report: Mayor Coody: Monthly report, anything new on that? Kit Williams: Did they submit one? Sondra Smith: Yes. Kit Williams: We just need to tell her we need $20 million in there. Mayor Coody: Any other questions on this. Marion Doss: I guess all we can do on her report is acknowledge it. Sondra Smith: You don't have to vote on anything. Kit Williams: She comes every quarter is that right? Marion Doss: Yes. Sondra Smith: Yes. Is there anything else that the board has that maybe I might have missed? It's been a hectic month for my office. Meeting Adjourned at 11:25 AM FIREMEN'S RELIEF AND PENSION Sept 2006 9 5 Revised THE FOLLOWING ARE THE OBLIGATIONS OF THE FIREMEN'S RELIEF FUND FOR THE MONTH OF SEPTEMBER YOU ARE HEREBY INSTRUCTED TO ISSUE CHECKS TO THE PAYEES, IN THE AMOUNTS SHOWN , AND FOR THE PURPOSE SO STATED. Added to Sept Checks Act 1373 DATE OF Regular Mo Year To Date Regular Benefit Future EMP#RETIREMENT NAME Benefit Reg Benefit Fed Tax St Tax Net Supplement Q 79 11/99 ARMSTRONG (DILL), PAMELA 1,812.74 16,314.66 300.00 100.00 1,412.74 0.00 R 177 4/04 BACHMAN, EDDIE 2,618.55 23,566.95 479.27 119.82 2,019.46 518.40 S 74 3/86 BAIRD, JULIA 1,802.08 16,218.72 350.00 145.00 1,307.08 518.40 V 2 3/75 BLACKARD, PAUL, Deceased in 7/31/06 0.00 764.89 0.00 0.00 V 63 5/72 BOLAIN, ANN 109.27 983.43 109.27 103.68 R 68 7/99 BONADUCE, MICHAEL 2,988.76 26,898.84 475.38 2,513.38 518.40 S 44 9/86 BOUDREY, BETTY MRS. 2,477.42 22,296.78 300.00 50.00 2,127.42 518.40 R 45 9/86 BOUDREY, HOWARD 2,089.28 18,803.52 2,089.28 518.40 R 49 7/88 BOUDREY, JACK 1,647.63 14,828.67 287.68 50.00 1,309.95 518.40 V 5 5/72 CASELMAN, ARTHUR 131.13 1,180.17 131.13 103.68 R 57 5/90 CATE, ROY 1,788.90 16,100.10 1,788.90 518.40 V 6 4/68 CHRISTIE, ARNOLD 109.27 983.43 109.27 103.68 V 8 10/76 COUNTS, WAYNE 109.27 983.43 109.27 103.68 R 77 11/99 DILL,GARY JOHN 1,812.75 16,314.75 100.00 1,712.75 518.40 188 12/05 DOSS, MARION H 5,376.91 48,392.19 800.00 320.00 4,256.91 518.40 R 11 2/76 FARRAR,ALONZO 998.86 8,989.74 998.86 518.40 R 192 4/06 FARRAR, DANNY 4,155.36 20,776.80 207.00 207.00 3,741.36 518.40 R 38 5/84 FRALEY, JOSEPH G. 1,768.12 15,913.08 200.00 15.00 1,553.12 518.40 R 170 5/03 FREEDLE, LARRY 3,816.75 34,350.75 500.00 100.00 3,216.75 518.40 R 92 03/02 GAGE,TOMMY 2,596.69 23,370.21 226.00 50.00 2,320.69 518.40 V 34 6/79 HARRIS, JAMES E. 109.27 983.43 109.27 103.68 V 70 11/99 HARRIS, MARY RUTH 109.27 983.43 109.27 103.68 Q 182 10/04 JENKINS, EILEEN 1,788.75 16,098.75 150.00 75.00 1,563.75 0.00 R 93 06/02 JENKINS, JOHN 1,788.76 16,098.84 350.00 100.00 1,338.76 518.40 R 86 07/01 JOHNSON,ROBERT 3,073.47 27,661.23 500.00 100.00 2,473.47 518.40 R 64 4/95 JORDAN, CHARLIE 2,274.95 20,474.55 150.00 50.00 2,074.95 518.40 S 76 5/88 JUDY, JAN 1,647.63 14,828.67 200.00 50.00 1,397.63 518.40 R 37 3/84 KING, ARNOLD D. 1,522.37 13,701.33 325.00 75.00 1,122.37 518.40 R 54 5/89 KING, ARVIL 1,711.21 15,400.89 130.00 50.00 1,531.21 518.40 V 12 3/60 LANE, HOPE MRS 109.27 983.43 109.27 103.68 R 13 10/67 LAYER, MERLIN 456.22 4,105.98 456.22 518.40 R 173 12/03 LEDBETTER, DENNIS 3,775.80 33,982.20 650.00 200.00 2,925.80 518.40 V 181 10/04 LEE, VIOLA LOUISE 109.27 983.43 109.27 103.68 R 51 10/88 LEWIS, CHARLES 1,647.63 14,828.67 75.00 25.00 1,547.63 518.40 R 40 9/85 LOGUE, PAUL D. 2,868.28 25,814.52 325.00 75.00 2,468.28 518.40 R 50 9/88 MASON, LARRY 1,631.25 14,681.25 137.61 25.00 1,468.64 518.40 R 39 4/85 MC ARTHUR, RONALD A. 1,753.74 15,783.66 150.00 50.00 1,553.74 518.40 V 35 2/82 MC CHRISTIAN, DWAYNE 109.27 983.43 109.27 103.68 R 15 4/77 MC WHORTER, CHARLES 1,334.51 12,010.59 150.00 1,184.51 518.40 R 29 8/81 MILLER, DONALD 1,304.07 11,736.63 125.00 25.00 1,154.07 518.40 R 73 2/00 MILLER,KENNETH 3,180.02 28,620.18 325.00 75.00 2,780.02 518.40 V 42 2/86 MOORE, JAMES H. 109.27 983.43 109.27 103.68 V 176 4/04 MORRIS, DIXIE E. 125.66 1,130.94 125.66 103.68 V 62 10/68 MORRISON, ELIENE, Deceased 7/10/06 0.00 956.13 0.00 0.00 R 48 7/88 MULLENS, DENNIS W. 2,191.30 19,721.70 2,191.30 518.40 R 184 3/05 NAPIER, LONNIE 3,518.28 31,664.52 110.00 88.00 3,320.28 518.40 R 46 5/88 OSBURN, TROY 1,899.66 17,096.94 200.00 38.00 1,661.66 518.40 R 81 02101 PHILLIPS,LARRY 2,765.09 24,885.81 2,765.09 518.40 R 53 2/89 POAGE, LARRY 2,346.70 21,120.30 300.00 100.00 1,946.70 518.40 R 186 06/05 REAGAN, PETE 3,535.71 31,821.39 3,535.71 518.40 V 22 4/73 REED, JOE 109.27 983.43 109.27 103.68 S 172 12/03 SCHADER, MADGE 1,386.01 12,474.09 1,386.01 518.40 R 41 9/85 SCHADER, TROY 1,524.99 13,724.91 57.00 25.00 1,442.99 518.40 R 190 04/06 SHACKELFORD, GLEN 3,647.18 18,235.90 400.00 200.00 3,047.18 518.40 S 83 03/01 SKELTON, KIMBERLY 2,434.98 21,914.82 250.00 50.00 2,134.98 518.40 S 66 8/98 SKELTON, PAULINE, Deceased 12/30/05 0.00 0.00 0.00 0.00 R 36 5/76 SPRINGSTON, CARL 806.19 7,255.71 70.00 17.00 719.19 518.40 S 90 03/02 STOUT, IMOGENE W. 767.80 6,910.20 767.80 518.40 R 165 12/02 TATE, RALPH 3,668.10 33,012.90 300.00 100.00 3,268.10 518.40 V 65 3/66 TUNE, BILLIE SUE 136.59 1,229.31 136.59 103.68 V 27 3/71 TUNE, MILDRED MRS., Deceased 8/14/06 0.00 1,092.72 0.00 0.00 R 71 1/00 WARFORD,THOMAS 2,502.72 22,524.48 300.00 2,202.72 518.40 R 28 7/68 WATTS, DONALD 437.09 3,933.81 437.09 518.40 R 88 01/02 WOOD,RONNIE D 3,077.15 27,694.35 800.00 200.00 2,077.15 518.40 R 52 9/88 WRIGHT, RANDALL 1,691.34 15,222.06 200.00 25.00 1,466.34 518.40 109,195.83 954,366.05 10,954.94 2,974.82 95,266.07 25,194.24 95,266.07 DROP DATE DROP EMPLOYEES NEW BENEFITS 03/01/03 MAHAN, MARSHALL 4,077.28 518.40 03/01/03 PIERCE, JOEY 3,647.18 518.40 9/27/2006 C:\DOCUME-1\ssmith.000\LOCALS-1\Temp\MXLibDir\September 2006 WM DATE OF Regular Mo Year To Date Regular Benefit Future EMP#RETIREMENT NAME Benefit Reg Benefit Fed Tax St Tax Net Supplement 04/01/03 O'NEAL, TEDDY 4,120.99 518.40 WE, THE UNDERSIGNED, DO SOLEMNLY SWEAR THAT THE ABOVE OBLIGATIONS( RE 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 : 9/27/2006 C:\DOCUME-1\ssmith.000\LOCALS-1\Temp\MXLibDir\September 2006 WM FIREMEN'S RELIEF AND PENSION Oct 2006 10 6 THE FOLLOWING ARE THE OBLIGATIONS OF THE FIREMEN'S RELIEF FUND FOR THE MONTH OF OCTOBER YOU ARE HEREBY INSTRUCTED TO ISSUE CHECKS TO THE PAYEES, IN THE AMOUNTS SHOWN , AND FOR THE PURPOSE SO STATED. Added to Sept Checks Act 1373 DATE OF Regular Mo Year To Date Regular Benefit Future EMP# RETIREMENT NAME Benefit Reg Benefit Fed Tax St Tax Net Supplement Q 79 11/99 ARMSTRONG (DILL), PAMELA 1,812.74 18,127.40 300.00 100.00 1,412.74 0.00 R 177 4/04 BACHMAN, EDDIE 2,618.55 26,185.50 479.27 119.82 2,019.46 518.40 S 74 3/86 BAIRD, JULIA 1,802.08 18,020.80 350.00 145.00 1,307.08 518.40 V 2 3175 BLACKARD, PAUL, Deceased 7/31/06 0.00 764.89 0.00 0.00 V 63 5/72 BOLAIN,ANN 109.27 1,092.70 109.27 103.68 R 68 7/99 BONADUCE, MICHAEL 2,988.76 29,887.60 475.38 2,513.38 518.40 S 44 9/86 BOUDREY, BETTY MRS. 2,477.42 24,774.20 300.00 50.00 2,127.42 518.40 R 45 9/86 BOUDREY, HOWARD 2,089.28 20,892.80 2,089.28 518.40 R 49 7/88 BOUDREY, JACK 1,647.63 16,476.30 287.68 50.00 1,309.95 518.40 V 5 5/72 CASELMAN,ARTHUR 131.13 1,311.30 131.13 103.68 R 57 5/90 CATE, ROY 1,788.90 17,889.00 1,788.90 518.40 V 6 4/68 CHRISTIE,ARNOLD 109.27 1,092.70 109.27 103.68 V 8 10176 COUNTS, WAYNE 109.27 1,092.70 109.27 103.68 R 77 11/99 DILL,GARY JOHN 1,812.75 18,127.50 100.00 1,712.75 518.40 188 12/05 DOSS, MARION H 5,376.91 53,769.10 800.00 320.00 4,256.91 518.40 R 11 2/76 FARRAR,ALONZO 998.86 9,988.60 998.86 518.40 R 192 4/06 FARRAR, DANNY 4,155.36 24,932.16 207.00 207.00 3,741.36 518.40 R 38 5/84 FRALEY, JOSEPH G. 1,768.12 17,681.20 200.00 15.00 1,553.12 518.40 R 170 5/03 FREEDLE, LARRY 3,816.75 38,167.50 500.00 100.00 3,216.75 518.40 R 92 03/02 GAGE,TOMMY 2,596.69 25,966.90 226.00 50.00 2,320.69 518.40 V 34 6179 HARRIS, JAMES E. 109.27 1,092.70 109.27 103.68 V 70 11199 HARRIS, MARY RUTH 109.27 1,092.70 109.27 103.68 Q 182 10104 JENKINS, EILEEN 1,788.75 17,887.50 150.00 75.00 1,563.75 0.00 R 93 06/02 JENKINS, JOHN 1,788.76 17,887.60 350.00 100.00 1,338.76 518.40 R 86 07/01 JOHNSON,ROBERT 3,073.47 30,734.70 500.00 100.00 2,473.47 518.40 R 64 4/95 JORDAN, CHARLIE 2,274.95 22,749.50 150.00 50.00 2,074.95 518.40 S 76 5188 JUDY,JAN 1,647.63 16,476.30 200.00 50.00 1,397.63 518.40 R 37 3/84 KING,ARNOLD D. 1,522.37 15,223.70 325.00 75.00 1,122.37 518.40 R 54 5/89 KING,ARVIL 1,711.21 17,112.10 130.00 50.00 1,531.21 518.40 V 12 3/60 LANE, HOPE MRS 109.27 1,092.70 109.27 103.68 R 13 10/67 LAYER, MERLIN 456.22 4,562.20 456.22 518.40 R 173 12/03 LEDBETTER, DENNIS 3,775.80 37,758.00 650.00 200.00 2,925.80 518.40 V 181 10/04 LEE,VIOLA LOUISE 109.27 1,092.70 109.27 103.68 R 51 10/88 LEWIS, CHARLES 1,647.63 16,476.30 75.00 25.00 1,547.63 518.40 R 40 9/85 LOGUE, PAUL D. 2,868.28 28,682.80 325.00 75.00 2,468.28 518.40 R 50 9/88 MASON, LARRY 1,631.25 16,312.50 137.61 25.00 1,468.64 518.40 R 39 4/85 MC ARTHUR, RONALD A. 1,753.74 17,537.40 150.00 50.00 1,553.74 518.40 V 35 2/82 MC CHRISTIAN, DWAYNE 109.27 1,092.70 109.27 103.68 R 15 4177 MC WHORTER,CHARLES 1,334.51 13,345.10 150.00 1,184.51 518.40 R 29 8/81 MILLER, DONALD 1,304.07 13,040.70 125.00 25.00 1,154.07 518.40 R 73 2100 MILLER,KENNETH 3,180.02 31,800.20 325.00 75.00 2,780.02 518.40 V 42 2/86 MOORE, JAMES H. 109.27 1,092.70 109.27 103.68 V 176 4/04 MORRIS, DIXIE E. 125.66 1,256.60 125.66 103.68 V 62 10/68 MORRISON, ELIENE, Deceased 7/10/06 0.00 956.13 0.00 0.00 R 48 7188 MULLENS, DENNIS W. 2,191.30 21,913.00 2,191.30 518.40 R 184 3/05 NAPIER, LONNIE 3,518.28 35,182.80 110.00 88.00 3,320.28 518.40 R 46 5/88 OSBURN,TROY 1,899.66 18,996.60 200.00 38.00 1,661.66 518.40 R 81 02/01 PHILLIPS,LARRY 2,765.09 27,650.90 2,765.09 518.40 R 53 2/89 POAGE, LARRY 2,346.70 23,467.00 300.00 100.00 1,946.70 518.40 R 186 06/05 REAGAN, PETE 3,535.71 35,357.10 3,535.71 518.40 V 22 4/73 REED, JOE 109.27 1,092.70 109.27 103.68 S 172 12/03 SCHADER, MADGE 1,386.01 13,860.10 1,386.01 518.40 R 41 9185 SCHADER,TROY 1,524.99 15,249.90 57.00 25.00 1,442.99 518.40 R 190 04/06 SHACKELFORD, GLEN 3,647.18 21,883.08 400.00 200.00 3,047.18 518.40 S 83 03/01 SKELTON, KIMBERLY 2,434.98 24,349.80 250.00 50.00 2,134.98 518.40 S 66 8/98 SKELTON, PAULINE, Deceased 12/30/05 0.00 0.00 0.00 0.00 R 36 5/76 SPRINGSTON, CARL 806.19 8,061.90 70.00 17.00 719.19 518.40 S 90 03/02 STOUT, IMOGENE W. 767.80 7,678.00 767.80 518.40 R 165 12102 TATE, RALPH 3,668.10 36,681.00 300.00 100.00 3,268.10 518.40 V 65 3166 TUNE, BILLIE SUE 136.59 1,365.90 136.59 103.68 V 27 3/71 TUNE, MILDRED MRS., Deceased 8/14/06 0.00 1,092.72 0.00 0.00 R 71 1/00 WARFORD,THOMAS 2,502.72 25,027.20 300.00 2,202.72 518.40 R 28 7/68 WATTS, DONALD 437.09 4,370.90 437.09 518.40 R 88 01/02 WOOD,RONNIE D 3,077.15 30,771.50 800.00 200.00 2,077.15 518.40 R 52 9/88 WRIGHT, RANDALL 1,691.34 16,913.40 200.00 25.00 1,466.34 518.40 109,195.83 1,063,561.88 10,954.94 2,974.82 95,266.07 25194.24 95,266.07 DROP DATE DROP EMPLOYEES NEW BENEFITS 03/01/03 MAHAN, MARSHALL 4,077.28 518.40 03/01/03-PIERCE, JOEY 3,647.18 518.40 04/01/03 O'NEAL, TEDDY 4,120.99 518.40 9/27/2006 C:\DOCUME-1\ssmith.000\LOCALS-1\Temp\MXLibDir\October 2006 WM DATE OF Regular Mo Year To Date Regular Benefit Future EMP#RETIREMENT NAME Benefit Reg Benefit Fed Tax St Tax Net 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 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 12006. NOTARY PUBLIC MY COMMISSION EXPIRES : 9/27/2006 C:\DOCUME-1\ssmith.000\LOCALS-1\TempXMXLibDirlOctober 2006 WM (9/25/2006) Sondra Smith - Fire Fighters Pension Board Meeting 9/28/06 Page 1 From: "Mark L. Martin" <Mark@MKLawFirm.Com> To: <ssmith@ci.fayetteville.ar.us> Date: 9/25/2006 4:19 PM Subject: Fire Fighters Pension Board Meeting 9/28/06 Ms. Sondra Smith Fayetteville City Clerk Dear Sondra, I understand that the Fayetteville Fire Fighters Pension Board will be meeting this coming Thursday, September 28, 2006 beginning at 11:00 am. Darrin Williams, with the law firm of Cauley Bowman Carney & Williams, PLLC and I would both like to make a presentation to the Board regarding continuing services provided pursuant to our monitoring agreement. We would also like to bring the Board up to date on a new development involving past losses discovered through the monitoring agreement. Please let me know if both Darrin Williams and I can be put on the agenda, for the meeting scheduled for this Thursday. Sincerely, Mark L. Martin Martin & Kieklak Law Firm P.O. Box 3597 Fayetteville, AR 72703 479-442-2244 mark@mklawfirm.com Sondra Smith, Fayetteville City Clerk, to be put on the agenda. Pertinent information is as follows: ssmith@ci.fayefteville.ar.us 479-575-8323 e a e PV e ARKANSAS 113 West Mountain Fayetteville, AR 72701 Telephone: (479) .575-8323 Fax: (479) 718-7695 city_clerk@ci.fayetteville.ar.us City Clerk/Treasurer Division September 12, 2006 G. Pierson Callahan Merrill Lynch Financial Advisor 2200 North Rodney Parham Road Suite 300 Little Rock, AR 72212 RE: Firemen's Pension and Relief Fund Board of Trustees Dear Mr. Callahan: Thank you for your interest in attending the Firemen's Pension and Relief Fund Board of Trustees meeting and the information you sent for the Board to review. The Board is currently pleased with our investment advisor and is not interested in making a change with their investment advisor at this time. Again, thank you for your interest. Sincerely, Sondra Smith Secretary Fayetteville Fireman's Pension and Relief Fund Board of Trustees MIMMMOM .. .....MMMEM . WMWNAWMNNVAW Office of the Registrar 146 Silas H. Hunt Hall School Code: 001108 Fayetteville, AR 72701 (479) 575-5451 Enrollment Verification Kimberly Lynn Skelton Date of Birth: July 18 Term Level Begin Date End Date Hours Status Fall 2006 UGRD 08/21/2006 12/13/2006 12 Full-Time Date: Tuesday,; August 29, 2006 i � ��f �n Seal ` office of the Registrar REGISTRAR ASSISTANT This certificate is valid only when signed by an authorized official ofthe Office of the Registrar and the certificate is embossed with the seal of the Registrar. RECENEU SEP 126 CITY OF FAYETTEVILLE- CITY CLERK'S OFFICE SCANNED End of Report RECEIVED The Voice for Public Pensions CITY OF FAY*[TEVILLE CITY CLERICS OFFICE National Conference on Public Employee Retirement Systems Membership Renewal 202-624-1456 1-877-202-5706 Invoice Message: FAX 202-624-1439 info@NCPERS.org FIRST NOTICE www.NCPERS.org Please verify your contact information, note any updates in the space provided: 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: Logon to www.NCPERS.org and then click ❑ 1 - 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 # 2007 Annual Membership $150 Fayetteville Fire Fighters Pension & Relief 23510 01/01/2007 310729205 Dues i 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 : CC Verification Code: Card Holder's Name: Billing Address: Signature: o -------------------------------------------------------------------------------------------------------- KEEP THIS PORTION FOR YOUR RECORDS: Membership Renewal Receipt ORGANIZATION NAME MEMBER DUE DATE NCPERS NUMBER Tax ID # 2007 Annual Membership $150 Fayetteville Fire Fighters Pension & Relief 23510 01/01/2007 310729205 Dues National Conference on Public:Employee Retirement Systems 444 N. Capitol St. NW Suite 221, Washington, DC 20001 L FAYETTEVILLE THE CITY OF PAYETTEVUE, ARKANSAS KU WILLIAMS,CITY ATTORNEY DAVID WHITAKER,ASST.CITY ATTORNEY DEPARTMENTAL CORRESPONDENCE LEGAL DEPARTMENT TO: Firefighters Pension and Relief Board FROM: Kit Williams, City Attorney DATE: . August 31, 2006 RE: A Resolution To Authorize The Expenditure Of The Fayetteville Firefighters Pension And Relief Fund Moneys To Pay For A Cash Flow Projection Evaluation Study By The Arkansas Fire & Police Pension Board As members of the Board of Trustees of the Firefighters Pension and Relief Board, you owe a fiduciary duty to all pensioners to manage the Pension Fund so that any "proposed increase in pension and relief fund benefits will not result in the deterioration of actuarial soundness . . .." A.C.A. §24-11-101 Legislative intent "No benefit enhancement . . . shall be implemented if it would cause the publicly supported retirement system's unfunded actuarial accrued liabilities to exceed a thirty-year amortization." A.C.A. 24-10-106 Limitation on benefit increase This Board of Trustees is required to report to the City Council every year in January concerning the soundness of its fund. "The board of trustees shall report to the council or city commission the.condition of the pension fund on the first regular meeting in January of each year." A.C.A. §24-11-412 Report required If this .Board increases benefits to such an extent that the assets of the fund become exhausted, the remaining beneficiaries shall have their benefits reduced pro rata. "If at any time there should not be sufficient money in the fund to pay each person the full amount to which he or she may, be entitled, the beneficiaries shall be paid by prorating the und available among them." A.C.A. §24-11-416 Pro rata share Since the actuary has already determined the fund is not actuarially sound, his prediction is that the fund will be exhausted during the lifetimes of you or your beneficiary members. Any enhancement of benefits will hasten the day every member of this Pension Fund will have his or her benefits dramatically and permanently reduced. Acting as fiduciaries for every beneficiary, your duty should be to try to avoid that benefit reduction day and to try to preserve this pension fund and not allow its "deterioration of actuarial soundness." Attached please find three pages of 2005 Actuarial Valuation dated July 3, 2006. . .. .. .. .. ... . .. . . .... ...... ARKANSAS FIRE & POLICE PENSION REVIEW BOARD 620 W. 3rd, Suite 200 Little-Rock, Arkansas 72201-2212 Telephone: (501) 682-1745 To: Board of Trustees Toll-Free: (866) 859-1745 FAYETTEVII:,LE Fire Pension and Relief Fund � (moi) 682-i75i emaih into@topti-prb.com From: David B. Clark website: www.lopti-prb.com Executive Director Re: 2005 Actuarial Valuation Date: July 3, 2006 In accordance with State law the actuary under contract to this office periodically tests all local fire and police pension funds for actuarial soundness. The 2005 actuarial study for your fund is enclosed. The financial tests for the fund are designed to answer the following questions: YES NO e 1. Is there enough income to the pension fund to fully fund it (see page 4)? 2. . Are current assets sufficient to cover 97% of all accrued actuarial liabilities (see page 10), t OR are there enough assets to cover all active member contributions, all payments to current beneficiaries and 100•/9 of fiture payments _ earned by active members(see page 11)? 3. Is the pension fluid considered actuarial sound under State law? SCANNED i i - — Err 2 COSTS AND LIABILITIES December 31, 2005 A Normal Cost Dollar Percent (Cost to fund concent active members) Amount of pay 1 Regular Retirement Benefits $ 0 N/A 2 Voluntary Termination Benefits 0 N/A 3 Survivors'Benefits 0 N/A 4 Disability Benefits 0 N!A TOTAL 0 N/A B Actuarial Accrued Liability 1 Active Lives Regular Retirement Benefits $ 0 Voluntary Termination Benefits 0 Survivors'Benefits 0 Disability Benefits 0 TOTAL ACTIVE LIVES $ 0 2 Deferred Retirement Option is DROP Accounts $ 98900 Future DROP Payments &Pensions 4,362,179 TOTALDROP $ 5,351,179 4.1 3 :Inactive Lives Retirees $ 12,8251,128 Disability Retirees 519,450 Widows & Children 124235,840 TOTAL INACTIVE LIVES $ 143,768,418 4 Total Liability $ 20,119,597 C Assets $ 10,243,228 -D Unfunded Actuarial Accrued Liability $ 9,876,369 5 --------------- EXHIBU 4 COMPARISON WITH PRIOR YEARS This exhibit compares.current valuation results with those of prior years. Hill Paid Actuarial Computed Active MembersEmployer Contnbution Total Place. Unfunded Normal Valuation Annual Percent Dollar Actuarial Cost Funded Date Not Payroll of Pay Amount Assets Liability Percent Percent 12/31/1984 45 807,438 27.7% 223,455 3,078,619- 1,193,660 22.1% 72.1% 12/31/1986 37 723,894 29.6% 213,935 4,006,484 1,379,340 21.8% 74.4% 12/31/1987 * 38 788,348 31.3% 246,479 4,460,948 1,455,161 23.4% 75.4% 12/31/1989 - 27 639,962 36.0% 230,328 5,189,846 1;976,463 26.60/a 72.4% 12/31/1991 23 585,898 33.3% 195,273 5,999,964 1,427,422 25.5% 80.8% 12/31/1993 22 620,116 25.2% 156,484 7,271,255 544,779 25.41% 93.0% 12/31/1995 * 21 676,847 25.6% - 173,401 8,897,591 148,392 29.8% 98.4% 12/31/1997 * 17 608,602 55.9% 339,974 10,797,686 1,295,764 38.0% 89.3% 12/31/1999 10 3673,188 53.7% 197,315 12,352,474 588,369 37.7% 958% 12/31/2001 * 6 234,765 405.5% 952,076 12,920,017 4,319,925 55.4% 74.9% 12/31/2003 * 1 52,016 3270.0% 1,700,905 11,936,657 7,897,191 54.6% 60.2% 12/31/2005 * 0 0 0.0% 2,095,694 10,243,228 9,876,369 0.0% 50.9% *Benefits or assumptions changed Note Normal cost prior to 12/31/89 is net of 6%employee contributions. Part Paid/ Actuarial Volunteer Computed Valuation Active Employer Date Members Contribution r. 12/31/1984 1 274 12131/1986 0 0 _ 12/31/1987. * 0 0 12/31/1989 0 0 12/31/1991 0 .0 12/31/1993 0 0 12/31/1995 *. 0 0 12/31/1997 * 0 0 12/31/1999 0 0 12/3I12001 * 0 3;123 12/31/2003 * 0 14,8.07 12/31/2005 * 0 18,412 10 RESOLUTION NO. A RESOLUTION TO AUTHORIZE THE EXPENDITURE OF THE FAYETTEVILLE FIREFIGHTERS PENSION AND RELIEF FUND MONEYS TO PAY FOR A CASH FLOW PROJECTION EVALUATION STUDY BY THE ARKANSAS FIRE & POLICE PENSION BOARD BE IT RESOLVED BY THE FAYETTEVILLE FIREFIGHTERS PENSION AND RELIEF BOARD OF TRUSTEES: Section 1: That the Fayetteville Firefighters Pension and Relief Board hereby approves the payment necessary for a cash flow projection evaluation to be conducted on the Fayetteville Firefighters Pension and Relief Fund. Section 2: That the Fayetteville Firefighters Pension and Relief Board hereby requests that the study will be to increase all current and future retirees' benefits by a 3% three year temporary COLA, and a study to increase all current and future retirees' benefits by a permanent 3% COLA. WE SIGN and APPROVE this 31St day of August, 2006. MARION DOSS PETE REAGAN DENNIS LEDBETTER RON WOOD TED O'NEAL DAN COODY, Mayor SONDRA SMITH City Clerk/Treasurer z City of Fayetteville Fire Pension and Relief Fund U/A Dated 6/18/86 August 31, 2006 Equity Allocation: 55% 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 Longer Investments Inc. PORTFOLIO APPRAISAL Fayetteville Fire Pension and Relief Fund U/A DTD 6-18-86 August 31, 2006 Unit Total Market Pct. Unit Annual Cur. Quantity Security Cost Cost Price Value Assets Income Income Yield Common Stock 3,500 AT&T 26.14 91,490.00 31.13 108,955.00 1.2 1.330 4,655.00 5.1 1,615 Amgen Inc. 68.53 110,668.86 68.03 109,868.45 1.2 0.000 0.00 0.0 2,000 Anadarko Petroleum 29.53 59,054.15 46.91 93,820.00 1.1 0.360 720.00 1.2 Corp. 4,750 Applied Materials Inc. 16.08 76,402.33 16.90 80,275.00 0.9 0.200 950.00 1.2 1,300 B.P. Amoco PLC A.D.S. 39.63 51,523.00 68.05 88,465.00 1.0 2.360 3,068.00 6.0 2,570 Bank of America Corp. 46.98 120,743.23 51.47 132,277.90 1.5 2.240 5,756.80 4.8 2,700 Barclays PLC 39.80 107,472.69 50.60 136,620.00 1.5 2.040 5,508.00 5.1 2,000 Barr Pharmaceuticals 49.28 98,557.60 56.50 113,000.00 1.3 0.000 0.00 0.0 Inc. 1,875 Caterpillar Inc. 48.25 90,460.44 66.35 124,406.25 1.4 1.200 2,250.00 2.5 2,250 Chevron Corp. 38.26 86,084.01 64.40 144,900.00 1.6 2.080 4,680.00 5.4 2,750 Citigroup 39.33 108,149.59 49.35 135,712.50 1.5 1.960 5,390.00 5.0 2,950 Coca-Cola 41.85 123,445.69 44.81 132,189.50 1.5 1.240 3,658.00 3.0 2,370 Diamonds Trust Series I 110.40 261,652.12 113.81 269,729.70 3.1 0.825 1,956.39 0.7 3,750 Disney Company 24.89 93,325.27 29.65 111,187.50 1.3 0.270 1,012.50 1.1 1,500 Emerson Electric 47.97 71,955.00 82.15 123,225.00 1.4 1.780 2,670.00 3.7 1,500 ExxonMobil 27.65 41,475.76 67.67 101,505.00 1.1 1.280 1,920.00 4.6 4,250 General Electric 24.09 102,370.35 34.06 144,755.00 1.6 1.000 4,250.00 4.2 250 Google 378.19 94,547.40 378.53 94,632.50 1.1 0.000 0.00 0.0 3,825 Hain Celestial Group, 19.61 74,993.48 23.55 90,078.75 1.0 0.000 0.00 0.0 Inc. 4,075 Health Care Select 32.17 131,090.84 32.80 133,660.00 1.5 0.443 1,805.55 1.4 Sector SPDR Fund 5,025 Intel Corp. 18.36 92,242.67 19.57 98,339.25 1.1 0.400 2,010.00 2.2 1,750 Johnson &Johnson 59.36 103,873.67 64.66 113,155.00 1.3 1.500 2,625.00 2.5 5,000 NASDAQ 100 Index 35.95 179,756.50 38.87 194,350.00 2.2 0.103 514.00 0.3 4,285 Newell Rubbermaid Inc. 25.21 108,023.80 26.99 115,652.15 1.3 0.840 3,599.40 3.3 1,975 Norfolk Southern 44.67 88,215.55 42.73 84,391.75 1.0 0.720 1,422.00 1.6 1,575 Northern Trust Corp. 56.85 89,535.76 55.99 88,184.25 1.0 0.920 1,449.00 1.6 3,315 Pfizer 24.20 80,223.00 27.56 91,361.40 1.0 0.960 3,182.40 4.0 3,000 Powershares Dynamic 16.37 49,110.00 15.23 45,683.40 0.5 0.000 0.00 0.0 Networking 6,500 Powershares Dynamic 15.76 102,421.80 16.98 110,370.00 1.3 0.095 614.90 0.6 Pharmaceuticals 5,200 Powershares Dynamic 16.87 87,750.00 16.90 87,880.00 1.0 0.000 0.00 0.0 Semiconductors 5,585 Powershares Lux 17.59 98,214.22 17.43 97,346.55 1.1 0.000 0.00 0.0 Nanotech 5,300 Powershares Water 17.56 93,060.25 16.96 89,888.00 1.0 0.149 792.24 0.9 Resource 2,075 SPDR Homebuilders 31.49 65,351.92 31.40 65,155.00 0.7 0.139 287.77 0.4 2,000 Southwestern Energy 27.52 55,035.80 34.35 68,700.00 0.8 0.000 0.00 0.0 8,000 The Technology Select 21.36 170,907.73 21.19 169,520.00 1.9 0.000 0.00 0.0 Sec SPDR Fund 2,750 US Bancorp 31.21 85,815.68 32.07 88,192.50 1.0 1.320 3,630.00 4.2 1,715 Walmart Stores 45.66 78,304.33 44.72 76,694.80 0.9 0.670 1,149.05 1.5 2,350 iShares Dow Jones 52.91 124,348.14 56.43 132,610.50 1.5 1.067 2,507.45 2.0 Consumer Goods Index 3,747,652.64 4,286,737.60 48.6 74,033.45 2.2 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 August 31, 2006 Unit Total Market Pct. Unit Annual Cur. Quantity Security Cost Cost Price Value Assets Income Income Yield Preferred Debt Securities 5,375 G.E. Preferred 6.625% 25.60 137,585.24 25.53 137,223.75 1.6 1.656 8,902.34 6.5 AAA/AAA(C 6-28-07) 137,585.24 137,223.75 1.6 8,902.34 6.5 Mutual Funds-Equity 200.0000 iShares MSCI Emerging 98.05 19,610.00 97.62 19,524.00 0.2 0.988 197.51 1.0 Markets Index Fund 20,000.0000 iShares MSCI Japan 10.69 213,850.00 13.71 274,200.00 3.1 0.058 1,157.64 0.5 Index Fund 1,500.0000 iShares MSCI Taiwan 12.54 18,803.55 12.50 18,750.00 0.2 0.136 203.26 1.1 Index Fund 3,000.0000 iShares S&P Europe 82.03 246,094.10 95.95 287,850.00 3.3 1.879 5,635.90 2.3 350 Index 498,357.65 600,324.00 6.8 7,194.31 1.4 Corporate Bonds 50,000 NationsBank Corp. 99.79 49,894.00 101.43 50,715.35 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 66,687.00 102.73 66,777.10 0.8 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 49,630.00 101.55 50,775.90 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) 6.000% Due 10-30-08 25,000 Pepsico Incorporated 97.49 24,373.00 100.91 25,227.85 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 48,816.00 108.31 54,156.05 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 48,014.00 108.90 54,448.10 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 74,442.00 107.23 80,424.75 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 48,326.00 109.87 54,935.40 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 50,004.00 113.01 56,503.40 0.6 7.000 3,500.00 7.0 Al/A+ (Subject to make whole call) 7.000% Due 10-30-25 2 LONGER INVESTMENTS INCORPORATED A Registered Inveshnent Advisor Longer Investments Inc. PORTFOLIO APPRAISAL Fayetteville Fire Pension and Relief Fund U/A DTD 6-I8-86 August 31, 2006 Unit Total Market Pct. Unit Annual Cur. Quantity Security Cost Cost Price Value Assets Income Income Yield 50,000 Dell Computer Corp. 95.46 47,731.00 112.56 56,279.45 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 7,117.31 0.1 531,363.00 582,780.83 6.6 35,780.00 6.8 Government Bonds 150,000 U. S. Treasury Note 100.00 150,000.00 102.84 154,265.62 1.7 5.125 7,687.50 5.1 5.125% Due 05-15-16 50,000 U. S. Treasury Bond 100.01 50,004.00 107.47 53,734.37 0.6 5.500 2,750.00 5.5 5.500% Due 08-15-28 50,000 U. S. Treasury Bond 98.95 49,474.00 104.25 52,125.00 0.6 5.250 2,625.00 5.3 5.250% Due 11-15-28 Accrued Interest 3,146.06 0.0 249,478.00 263,271.06 3.0 13,062.50 5.2 Government Agency 100,000 Federal Home Loan 100.00 100,000.00 99.81 99,812.50 1.1 4.550 4,550.00 4.5 Bank (C 05-29-06 @ 100, ix) 4.550% Due 11-22-06 75,000 Federal Home Loan 100.00 75,000.00 98.81 74,109.37 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 99.75 448,875.00 5.1 5.020 22,590.00 5.0 Bank(C 9-14-06 @ 100, IX) 5.020% Due 09-14-07 185,000 Federal Home Loan 100.00 185,000.00 98.72 182,629.69 2.1 4.000 7,400.00 4.0 Bank (C 6-28-06 @ 100, ix) 4.000% Due 09-28-07 200,000 Federal Home Loan 100.00 200,000.00 99.78 199,558.81 2.3 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 99.66 99,656.25 1.1 5.000 5,000.00 5.0 Bank (C 12-22-06 @ 100, IX) 5.000% Due 12-22-08 100,000 Federal Farm Credit 100.00 100,000.00 99.75 99,750.00 1.1 5.020 5,020.00 5.0 Bank(C 11-22-06 @ 100, ix) 5.020% Due 05-22-09 525,000 Federal Home Loan 100.00 525,000.00 100.00 525,000.00 5.9 5.520 28,980.00 5.5 Bank (C 8-24-07 @ 100, IX) 5.520% Due 02-24-10 50,000 Tennessee Valley 98.95 49,474.00 102.09 51,045.95 0.6 5.625 2,812.50 5.7 Authority(NC) 5.625% Due 01-18-11 3 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, 2006 Unit Total Market Pct. Unit Annual Cur. Quantity Security Cost Cost Price Value Assets Income Income Yield 125,000 Federal Home Loan 100.00 125,000.00 100.00 125,000.00 1.4 5.500 6,875.00 5.5 Bank(C 2-18-09 @ 100, IX) 5.500% Due 08-18-11 200,000 Fed Nat'l Mortgage 100.00 200,000.00 100.00 200,000.00 2.3 5.400 10,800.00 5.4 Assoc (C 9-15-08 @ 100, IX) 5.400% Due 09-15-11 70,000 Federal Home Loan 100.00 70,000.00 99.09 69,365.62 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 98.12 54,513.89 0.6 5.080 2,822.22 5.1 Bank(C 10-30-06, continuously thereafter) 5.080% Due 10-03-12 250,000 Federal Home Loan 100.00 250,000.00 97.44 243,593.75 2.8 5.000 12,500.00 5.0 Bank(C 10-5-07 @ 100, continuously thereafter) 5.000% Due 10-05-12 100,000 Federal Home Loan 100.00 100,000.00 99.37 99,375.00 1.1 5.250 5,250.00 5.2 Bank (C 11-14-08 @ 100, 1X) 5.250% Due 11-14-12 75,000 Federal Home Loan 100.00 75,000.00 98.53 73,898.44 0.8 5.375 4,031.25 5.4 Bank(C 10-30-06, continuously thereafter) 5.375% Due 11-07-13 125,000 Federal Farm Credit 100.00 125,000.00 96.50 120,625.00 1.4 5.300 6,625.00 5.3 Bank(C 6-22-07 @ 100, continuously thereafter) 5.300% Due 06-22-15 100,000 Federal Home Loan 100.00 100,000.00 100.94 100,939.61 1.1 6.000 6,000.00 6.0 Mortgage Corp. (C 4-28-09 @ 100, quarterly) 6.000% Due 04-28-16 Accrued Interest 35,089.77 0.4 2,885,029.56 2,902,838.65 32.9 148,173.47 5.1 Cash and Equivalents Dividends Accrued 9,171.73 9,171.73 0.1 0.000 0.00 0.0 Money Market 5,137.46 5,137.46 0.1 4.440 228.10 4.4 14,309.19 14,309.19 0.2 228.10 1.6 Certificate of Deposit 40,000 Capital One Bank FSB 100.00 40,000.00 99.76 39,903.24 0.5 4.900 1,960.00 4.9 Falls Church,VA BAAI/NR(NC) FDIC-Insured 4.900% Due 02-20-07 Accrued Interest 59.89 0.0 40,000.00 39,963.13 0.5 1,960.00 4.9 4 LONGER INVESTMENTS INCORPORATED A Registered bivesiment Advisor Longer Investments Inc. PORTFOLIO APPRAISAL Fayetteville Fire Pension and Relief Fund U/A DTD 6-I8-86 August 31, 2006 Unit Total Market Pct. Unit Annual Cur. Quantity Security Cost Cost Price Value Assets Income Income Yield TOTAL PORTFOLIO 8,103,775.28 8,827,448.21 100.0 289,334.18 3.6 5 LONGER INVESTMENTS INCORPORATED A Registered biveshnent Advisor Longer Investments Inc. CASH CONTRIBUTIONS/WITHDRAWALS City of Fayetteville Fire Pension and Relief Fund 08-15-02 to 8-31-06 CONTRIBUTIONS 09-10-03 Money Market $350,000.00 08-04-04 Money Market $12700.00 09-01-05 Money Market $145,000.00 08-17-06 Money Market $408.95 (Bristol-Myers Squibb litigation settlement) $622,408.95 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 01-03-06 Money Market $394,000.00 02-01-06 Money Market $10000.00 03-01-06 Money Market $9000.00 04-01-06 Money Market $82,000.00 04-27-06 Money Market $145,000.00 05-01-06 Money Market $10,000.00 05-05-06 Money Market $100,000.00 06-01-06 Money Market $105,000.00 07-01-06 Money Market $95,000.00 08-01-06 Money Market $95,000.00 $4,207,000.00 6 LONGER INVESTMENTS INCORPORATED A Registered hivestment Advisor