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Home My WebLink About2015-10-15 - Agendas - FinalLioneld Jordan Chairman Sondra E. Smith Treasurer Eldon Roberts Secretary Retired Position I Policemen's Pension and Relief Fund October 15, 2015 Page 1 of 42 Ruston Cole Retired Position 2 John Brown Retired Position 3 Melvin Stanley Retired Position 4 Frank Johnson Retired Position 5 Policemen's Pension and Relief Fund Board of Trustees Meeting Agenda October 15, 2015 A meeting of the Fayetteville Policemen's Pension and Relief Fund Board of Trustees will be held on October 1, 2015 at 3:00 p.m. in Room 326 of the City Administration Building located at 113 West Mountain Street, Fayetteville, Arkansas. Roll Call Garrison Financial: • 3rd Quarter reports Approval of the Minutes: • Approval of the July 16, 2015 meeting minutes Pension List Changes: • Charles Allen deceased 09/25/15 Approval of the Pension List: • Re -approval of the October, 2015 pension list • Approval of the November and December 2015 pension list and the January, 2016 pension list Unfinished Business: • None New Business: • Turnback 2015 Report • Revenue & Expense Report: 3rd Quarter — September 30, 2015 report Informational: 9 2016 Meeting calendar — January 21, 2016 next meeting Policemen's Pension and Relief Fund October 15, 2015 Page 2 of 42 GARRISON F 1 N A N C 1 A L October 6, 2015 Ms. Sondra Smith City of Fayetteville 113 West Mountain Street Fayetteville, Arkansas 72701 Dear Ms. Smith, Policemen's Pension and Relief Fund October 15, 2015 Page 3 of 42 RECEIVED OCT 13 2015 47YOOF FAVETT F VILLE LERK's OFFICE Enclosed are the quarterly reports for both Firemen's Pension & Relief Fund and Police Pension and Relief Fund for the quarter ended September 30, 2015. Uncertainty about Fed policy, woes in China, and sliding commodity prices weighed heavily on the equity markets in the third quarter, bringing about the long awaited correction that had eluded stocks for almost 4 years. Global growth concerns took center stage as China's economy continues to slow. The Chinese government took the markets by surprise in August devaluing the yuan in an effort to prop up the sliding stock market and aid the slumping manufacturing sector. In spite of the currency move, in addition to other measures like outright purchases of securities and halting trading, the Shanghai Composite still lost more than 25% during the quarter. The Fed also added to the uncertainty in the quarter, as the prospect of rising rates weighed on investors' minds. The U.S. economy remains steady, with good data one week and bad the next, but the Fed decided to keep rates unchanged in September. Rather than the equity markets cheering low rates, they sold off sharply after the Fed's decision, shining an even bigger spotlight on China and global growth concerns. Commodities took the worst hit as China has accounted for the much of the demand now for several years. Unsurprisingly, energy and the materials sector were yet again the worst performers in the quarter with energy down -18% and materials off -17%. Healthcare, which has been one of the bright spots in the market the past few years, was also down -11% during the quarter. The only positive sector in the quarter was the interest rate sensitive Utilities which gained +4.4% after retreating earlier in the year. The fixed income market for the quarter (as measured by the Barclays Intermediate Government/Credit Index) was up +.95%, bringing year-to-date performance to +1.77% and trailing twelve month performance to +2.68%. Yields (as measured by the market proxy of the 10 year Treasury Bond) for the quarter were down (prices up) from around 2.35% to 2.04%, having peaked in early July at 2.46% and troughed at an even 2.00% in mid-August. Year-to-date rates are down about .15%. For the year ended September, rates are down .45%. Garrison Financial 605 W. Dickson Street, Suite 201 • Fayetteville, Arkansas 72701 479-587-1045 • 888-442-7637. 479-587-1257 Facsimile • www.GarrisonFinancial.com Policemen's Pension and Relief Fund October 15, 2015 Page 4 of 42 Volatility spiked in the quarter as the markets grappled with global slowing. The equity markets finally registered a 10% correction and earnings are expected to head south due in large part to the turmoil in the commodities complex and the strong dollar. Although we do not believe a global recession is in the offing at thisjuncture, we do believe those headwinds, in addition to other economic concerns around the globe, will keep economic growth muted and interest rates low for the near term. We continue to focus our investments in strong companies we believe will deliver over the long-term and can withstand the ebbs and flows of the economic backdrop around the world. We've included a recent article written by James Bell for the Arkansas Business Journal regarding stock market corrections. We thought it might be of interest given the recent movements in the market. Please call the office if you should have any questions. Cordially, 6"T Kerry Bradley, CFA, MBA Equity Portfolio Manager Garrison Financial 605 W. Dickson Street, Suite 201 • Fayetteville, Arkansas 72701 479-587-1045 • 888-442-7637. 479-587-1257 Facsimile • www.GarrisonFinancial.com Policemen's Pension and Relief Fund October 15, 2015 Page 5 of 42 Are Investors Haunted by Corrections Past? It finally happened. After nearly four years, stocks suffered a correction in late August. Sure, it hurts to lose money, just like it always does. But I'm a numbers guy, so I find it helpful to review the historical I record for the frequency and severity of such events, and more importantly, what to expect on the other side. From its all-time high on May 21 to its recent low on August 25, the S&P 500 declined 12.35% against a backdrop of China's currency devaluation, emerging markets weakness, and the potential for the Federal Reserve to finally raise short term rates from essentially zero. A lot of headlines were written about stocks officially entering correction territory. A correction is generally defined as a selloff of 10% or more, while declines of 20% or greater are termed bear markets. For simplicity, I will refer to any decline of 10% or greater as a correction. A review of market history from Yardeni Research shows 32 prior declines of 10% or more since 1945, ranging from those that barely qualify to the oil shock of the early 1970s (-48%), the tech bubble bursting in 2000 (-49%), and we all remember the financial crisis around 2008 (-56%). Obviously not every correction leads to such ominous outcomes. On average, in the postwar period we have seen a correction just over every two years. There is no discernible pattern to timing or frequency, with eight corrections in the 1970s versus just two in the 1990s. The average percentage decline is -21%, though individual instances are highly variable. From peak to trough, the duration of corrections is also highly variable. Average duration is 231 days, with some instances as quick as a few weeks and others longer than a year including the two -and -a -half year tech correction that ended in October 2002. So given that corrections happen fairly regularly, and are by definition severe, why does the recent selloff feel so jarring? In part, I think investors may have been spoiled by the recent market. As noted, it has been nearly four years since the previous correction, longer than the two year average. Even that correction, beginning around August 2011 with the backdrop of S&P downgrading US Treasury debt from AAA, was mainly contained to a brief two months and quickly put in the rear view mirror. 2014 concluded as the sixth consecutive calendar year of positive returns (including dividends). It's easy to see how the potential for a correction may have been shuttled to the back of the mind. Other investors, with the memories of the severe bear markets of 2000 and 2008 still fresh, are quick to conclude that any selloff may be the harbinger of something far worse. Having invested through those years myself, that concern is understandable. Part of a financial advisor's job is education. Any discussion about the long-term positive average returns of stocks, bonds, real estate, or any asset class, should include the fact that those returns don't arrive smoothly, year in and year out. History demonstrates the certainty of unpredictable periods of decline with indeterminate length and severity. Academic research, and our own experience, have convinced me that there is no reliable way of predicting and avoiding these corrections, at least without substantially altering your risk profile. Note that avoiding corrections requires two accurate calls: identifying the peak to sell, then the bottom to reinvest, plus the drag of friction, transaction costs, and Policemen's Pension and Relief Fund October 15, 2015 Page 6 of 42 taxes. I know there are dozens of ways to make money in the markets, but I would be skeptical of anyone who claims to reliably avoid corrections. What does a stock market correction mean for the broader economy? Since stock prices reflect investors' opinions about earnings and growth, the economy, interest rates, and enthusiasm, declining prices necessarily signal a net decline in at least some of those factors, although it is very difficult to attribute which ones. S&P points out that all 11 postwar recessions were preceded by a correction, anticipated by an average of seven months. Unfortunately, corrections also produced a lot of false positives for recessions, providing an accurate forecast only 35% of the time. A correction is more of a yellow light, encouraging us to pay closer attention to our economic assumptions. Most corrections pass without a sustained contraction in economic growth. Bear markets have been more reliable recession predictors (67%). For an investor, the key is to acknowledge the likelihood of correction periods, then focus on the long term. Corrections come with the territory of equity investments, and the volatility they represent are part of the price of the higher long-term returns that stocks have historically provided. The discipline to stay invested through the downturns is often the sign of a successful investor. Keep in mind, stocks have recovered and then exceeded every prior correction, and I would not expect the current situation to end any differently. James Bell is a VP and financial advisor at Garrison Financial, a locally owned independent investment advisory firm. He can be reached at ibell(a�Qarrisonfinancial.com. Policemen's Pension and Relief Fund October 15, 2015 Page 7 of 42 00,11" GARRISON F I N A N C I A L City of Fayetteville Police Pension and Relief Fund Charles Schwab #2448-5630 Quarter Ending September 30, 2015 Policemen's Pension and Relief Fund October 15, 2015 Page 8 of 42 PORTFOLIO SUMMARY City of Fayetteville Police Pension and Relief Fund Charles Schwab #2448-5630 September 30, 2015 4.9% ■ Cash & Equivalents 298,453.13 ■ Account Fixed Income 2,279,635.06 ■ Account Equities 3,524,576.12 Policemen's Pension and Relief Fund October 15, 2015 Page 9 of 42 Garrison Financial PORTFOLIO APPRAISAL City of Fayetteville Police Pension and Relief Fund Charles Schwab #2448-5630 September 30, 2015 Adj Unit Total Adjusted Market Pct. Unit Annual Quantity Security Cost Cost Price Value Assets Income Income Yield CASH AND EQUIVALENTS Schwab Advisor Cash Res - 298,453.13 298,453.13 4.9 0.010 29.85 0.0 Premier _ 298,453.13 298,453, 13 4.9 29.85 0.0 TREASURY NOTE 700,000 US Treasury Note 101.33 709,287.07 108.89 762,216.00 12.5 4.000 28,000.00 0,9 4.000% Due 08-15-18 Accrued Interest 3,500.00 0.1 709,287.07 765,716.00 12.5 28,000.00 0.9 AGENCY BONDS 200,000 Federal Farm Credit 100.00 199,998.39 101.45 202,898, 00 3.3 6.125 12,250.00 0.3 Bank 6.125% Due 12-29-15 Accrued Interest 3,096.53 0.1 199,998.39 205,994.53 3.4 12,250.00 0.3 CORPORATE BONDS 125,000 Verizon 99.95 124,939.50 99.86 124,824.87 2.0 1.350 1,687.50 1.4 Communications 1.350% Due 06-09-17 125,000 Lab Corp. of America 100.94 126,171.41 101.11 126,387.87 2.1 2.500 3,125.00 2.1 2.500% Due 11-01-18 125,000 Kroger Company 100.18 125,229.73 100.57 125,714.12 2.1 2.300 2,875.00 2.1 2.300% Due 01-15-19 125,000 Honeywell International 110.45 138,060.80 111.04 138,796.62 2.3 5.000 6,250.00 1.6 5.000% Due 02-15-19 125,000 Union Pacific Corp. 101.41 126,764.76 101.55 126,943.00 2.1 2.250 2,812.50 1.8 2.250% Due 02-15-19 125,000 3 B Hunt Transportation 101.58 126,980.65 100.81 126,016.37 2.1 2.400 3,000.00 2.2 Svcs. 2.400% Due 03-15-19 125,000 Walt Disney Co. 99.91 124,885.09 100.64 125,798.87 2.1 1.850 2,312.50 1.7 1.850% Due 05-30-19 125,000 Berkshire Hathaway 105.44 131,798.95 103.84 129,794.87 2.1 2.900 3,625.00 2.1 Financial 2.900% Due 10-15-20 125,000 AT&T, Inc. 100.45 125,556.36 98.14 122,676.37 2.0 3.000 3,750.00 3.4 3.000% Due 02-13-22 Accrued Interest 6,571.53 0.1 1,150,387.26 1,153,524.53 18.9 29,437.50 2.0 CONVERTIBLE PREFERRED 300 Bunge4.875%Conv. 108.63 32,588.95 98.13 29,439.00 0.5 4.875 1,462.50 5.0 Pfd. 32,588.95 29,439.00 0.5 1,462.50 5.0 COMMON STOCK 300 3M Corp. 164.93 49,479.55 141.77 42,531,00 0.7 4.100 1,230,00 2.9 2,000 AT&T, Inc. 28.24 56,475.88 32.58 65,160,00 1.1 1.880 3,760.00 5.8 905 AbbVie, Inc. 66.58 60,253.90 54.41 49,241.05 0.8 2.040 1,846.20 3,7 1,965 Abbott Laboratories 40.06 78,727.14 40.22 79,032.30 1.3 0.960 1,886.40 2.4 550 Accenture Ple. 90.81 49,943.51 98.26 54,043.00 0.9 2.200 1,210.00 22 440 Airgas, Inc. 112.76 49,614.11 89.33 39,305.20 0.6 2.400 1,056.00 2.7 120 Alliance Data Systems 283.98 34,077.36 258,98 31,077.60 0.5 0.000 0.00 0-0 Policemen's Pension and Relief Fund October 15, 2015 Page 10 of 42 Garrison Financial PORTFOLIO APPRAISAL City of Fayetteville Police Pension and Relief Fund Charles Schwab #2448-5630 September 30, 20/5 Adj Unit Total Adjusted Market Pct. Unit Annual Quantity Security Cost Cost Price Value Assets Income Income Yield 625 Amgen, Inc. 114.33 71,456.06 138.32 86,450.00 1.4 3.160 1,975.00 2.3 825 Anadarko Petroleum 85.82 70,805.10 60.39 49,821.75 0.8 1.080 891.00 1.8 500 Ansys, Inc. 75.67 37,836.95 88.14 44,070.00 0.7 0.000 0,00 0.0 1,680 Apple Computer 72.69 122,121.54 110.30 185,304.00 3.0 2.080 3,494.40 1.9 785 AptarGroup, Inc. 63.47 49,825.05 65.96 51,778.60 0.8 1.120 879.20 1.7 125 AutoZone, Inc. 516.09 64,511.70 723.83 90,478.75 1.5 0,000 0.00 0.0 1,350 BCE, Inc. CI F 24.40 32,934.20 40.96 55,296.00 0.9 2.630 3,550.50 6.4 350 Becton, Dickinson & 113.97 39,889.45 132.66 46,431.00 0.8 2.400 840.00 1.8 Company 1,500 Broadridge Financial 41.33 62,000.35 55.35 83,025.00 1.4 1.200 1,800.00 2.2 Solutions 675 Brown-Forman Corp. 88.81 59,946.93 96.90 65,407-50 1.1 1.260 850.50 1.3 665 CH Robinson 74.84 49,768.25 67.78 45,073.70 0.7 1.520 1,010.80 2.2 Worldwide 3,000 CSX Corporation 28.88 86,627.40 26.90 80,700.00 1.3 0.720 2,160.00 2.7 1,300 Cal -Maine Foods, Inc. 36.68 47,687.88 54.61 70,993.00 1.2 1.010 1,313.00 1.8 585 Check Point Software 85.44 49,979.59 79.33 46,408.05 0.8 0.000 0.00 0.0 400 Chevron Corporation 85.21 34,084.61 78.88 31,552-00 0.5 4.280 1,712.00 5.4 2,800 Cisco Systems, Inc. 19.70 55,168.69 26.25 73,500.00 1.2 0.840 2,352.00 3.2 1,400 Coca-Cola Company 30.98 43,374.60 40.12 56,168.00 0.9 1.320 1,848.00 3.3 680 Compass Minerals Intl 87.89 59,765.06 78.37 53,291.60 0.9 2.640 1,795.20 3.4 1,150 ConocoPhillips 55.58 63,918.42 47.96 55,154.00 0.9 2.960 3,404.00 6.2 565 Deere & Co. 87.76 49,585.72 74.00 41,810.00 0.7 2.400 1,356.00 3.2 500 Disney, Walt Holdings 110.91 55,454.90 102.20 51,10(Wo 0.8 1.320 660.00 1.3 2,000 EMC Corp. 25.64 51,282.21 24.16 48,320.00 0.8 0.460 920.00 1.9 830 Eastman Chemical 86.14 71,495.64 64.72 53,717.60 0.9 1.600 1,328.00 2.5 1,310 Emerson Electric 68.00 89,080.00 44.17 57,862.70 0.9 1.880 2,462.80 4.3 3,825 General Electric Co. 19.53 74,709.32 25.22 96,466.50 1-6 0.920 3,519.00 3.6 1,200 GimoSmithKline Plc. 50.10 60,124.15 38.45 46,140.00 0.8 2.290 2,748.00 6.0 2,250 Intel Corp. 20.53 46,202.71 30.14 67,815.00 1.1 0.960 2,160.00 3.2 800 Johnson & Johnson 64.70 51,756.60 93.35 74,680.00 1.2 3.000 2,400,00 3.2 465 Kimberly Clark Corp. 107.07 49,786.64 109.04 50,703.60 0.8 3.520 1,636.80 3.2 395 Laboratory Corp. 125.86 49,715,75 108.47 42,845.65 0.7 0.000 0.00 0.0 1,000 Lincoln Electric 67.21 67,209.18 52.43 52,430.00 0.9 1.160 1,160.00 2.2 640 Medtronic Pic, 77.60 49,662.77 66.94 42,841.60 0.7 1520 972.80 2.3 1,100 Merck & Co., Inc. 51.39 56,525.78 49.39 54,329.00 0.9 1.800 1,980.00 3.6 800 National Oilwell Varco 85.35 68,280.15 37.65 30,120.00 0 5 L840 1,472.00 4.9 1,000 Patterson Companies 51.07 51,074.75 43.25 43,250.00 0.7 0.880 880.00 2.0 530 Pepsico, Inc. 93.75 49,690.09 94.30 49,979.00 0.8 2.810 1,489.30 3.0 830 Phillips 66 72.18 59,911.86 76.84 63,777.20 1.0 2.240 1,859.20 2.9 1,000 Procter & Gamble Co. 59.42 59,417.61 71.94 71,940.00 1.2 2.650 2,650.00 3.7 1,000 Qualcomm, Inc. 63.62 63,616.39 53.73 53,730.00 0.9 1.920 1,920.00 3.6 2,790 Raven Industries, Inc. 28.37 79,148.48 16.95 47,290.50 0.8 0.520 1,450.80 3.1 700 Sanofi ADR 55.71 38,995.10 47.47 33,229.00 0.5 1.320 924.00 2.8 770 Sensient Technologies 64.55 49,704.67 61.30 47,201-00 0.8 1.080 831.60 1.8 900 St. Jude Medical, Inc 66.56 59,900.53 63.09 56,781.00 0.9 1.160 1,044.00 1, 8 1,055 Syngenta AG ADR 71.44 75,370.40 63.78 67,287.90 1.1 1.970 2,078.35 3.1 850 Texas Instruments 58.53 49,754.69 49.52 42,092.00 0.7 1.520 1,292.00 3.1 465 Valmont Industries 128.60 59,797.26 94.89 44,123.85 0.7 1.500 697.50 1.6 450 Wabtec Corp. 93.64 42,137.64 88.05 39,622.50 0.6 0.320 144.00 0.4 1,150 Wal-Mart Stores, Inc. 62.11 71,423.42 64.84 74,566.00 1.2 1.960 2,254.00 3.0 2,000 Waste Management 42.21 84,414.32 49.81 99,620.00 1.6 1.540 3,080.00 3.1 3,265,502.02 3,276,964.70 53.7 88,234.35 2.7 MUTUALFUNDS 2,248.991 Dodge & Cox Intl Stk 45.41 102,132.74 37.02 83,257.65 1.4 0.970 2,181.52 2.6 Policemen's Pension and Relief Fund October 15, 2015 Page 11 of 42 'on should carefully compare this statement to the statement you receive from your custodian and notify us immediately of any discrepancies. 3 Garrison Financial PORTFOLIO APPRAISAL City of Fayetteville Police Pension and Relief Fund Charles Schwab #2448-5630 September 30, 2015 Adj Unit Total Adjusted Market Pct. Unit Annual Quantity Security Cost Cost Price Value Assets Income Income Vield 2,587-463 Oppenheimer 39.33 101,776.46 29.18 75,502.17 1.2 0.100 258.75 0.3 Developing Mkts A 203,909.20 158,759.82 2.6 2,440.27 1.5 UNIT TRUSTS 2,340 FT Energy Income & 34.20 80,032.95 25.39 59,412.60 1.0 2 220 5,194.80 8.7 Growth 4,000 iShares S&P US Pfd Stk 38.34 153,340.30 38.60 154,400.00 2.5 2.380 9,520.00 6.2 233,373.25 213,812.60 3.5 14,714.80 6.9 TOTAL PORTFOLIO 6,093,499.27 6,102,664.30 100.0 176,569.26 2.3 'on should carefully compare this statement to the statement you receive from your custodian and notify us immediately of any discrepancies. 3 Trade Settle Date Date PURCHASES 03-19-15 03-24-15 03-24-15 03-27-15 03-19-15 03-19-15 03-19-15 03-19-15 03-19-15 03-24-15 03-19-15 03-19-15 03-19-15 03-10-15 03-19-15 03-19-15 06-04-15 03-19-15 03-19-15 03-19-15 03-19-15 03-19-15 03-19-15 03-19-15 03-19-15 03-19-15 03-19-15 03-19-15 03-19-15 03-19-15 05-08-15 03-19-15 03-19-15 03-19-15 03-19-15 03-19-15 03-19-15 03-19-15 01-28-15 03-19-15 03-19-15 03-24-15 03-24-15 03-24-15 03-24-15 03-24-15 03-27-15 03-24-15 03-24-15 03-24-15 03-13-15 03-24-15 03-24-15 06-09-15 03-24-15 03-24-15 03-24-15 03-24-15 03-24-15 03-24-15 03-24-15 03-24-15 03-24-15 03-24-15 03-24-15 03-24-15 03-24-15 05-13-15 03-24-15 03-24-15 03-24-15 03-24-15 03-24-15 03-24-15 03-24-15 02-02-15 03-24-15 03-24-15 Garrison Financial PURCHASE AND SALE City of Fayetteville Police Pension and Relief Fund Charles Schwab #2448-5630 From 01-01-15 To 09-30-15 Quantity Security 300 3M Corp. 125,000 AT&T, Inc. 3.000% Due 02-13-22 550 Accenture Plc. 200 Airgas, Inc. 100 Airgas, Inc. 140 Airgas, Inc. 785 AptarGroup, Inc. 125,000 Berkshire Hathaway Financial 2.900% Due 10-15-20 200 CH Robinson Worldwide 100 CH Robinson Worldwide 365 CH Robinson Worldwide 1,300 Cal -Maine Foods, Inc. 585 Check Point Software 565 Deere & Co. 500 Disney, Walt Holdings 100 FT Energy Income & Growth 100 FT Energy Income & Growth 100 FT Energy Income & Growth 140 FT Energy Income & Growth 60 FT Energy Income & Growth 20 FT Energy Income & Growth 100 FT Energy Income & Growth 900 FT Energy Income & Growth 100 FT Energy Income & Growth 300 FT Energy Income & Growth 300 FT Energy Income & Growth 100 FT Energy Income & Growth 20 FT Energy Income & Growth 125,000 J B Hunt Transportation Svcs. 2.400% Due 03-15-19 100 Kimberly Clark Corp. 100 Kimberly Clark Corp. 65 Kimberly Clark Corp. 100 Kimberly Clark Corp. 100 Kimberly Clark Corp. 395 Laboratory Corp. 640 Medtronic Plc. 1,000 Patterson Companies 530 Pepsico,Inc, 770 Sensient Technologies Policemen's Pension and Relief Fund October 15, 2015 Page 12 of 42 Unit Price Amount 164.93 49,479.55 100.48 125,597.62 90.81 112.76 112.76 112.76 63.47 105.98 74.85 74.83 74.83 36.68 85.44 87.76 110.91 34.18 34.18 34.20 34.20 34.20 34.20 34.20 34.20 34.20 34.20 34.20 34.20 34.20 101.76 107.07 107.07 107.07 107.07 107.07 125.86 77.60 51.07 93.75 64.55 49,943.51 22,551.87 11,275.93 15,786.31 49, 825.05 132,470.38 14,970.69 7,483.35 27,314.21 47,687.88 49,979.59 49,585.72 55,454.90 3,418.38 3,418.38 3,420.38 4,788.54 2,052.23 684.08 3,420.38 30,783.44 3,420.38 10,261.15 10,261.15 3,420.38 684.08 127,201.62 10,706.72 10,706.82 6,959.44 10,706.82 10,706.84 49,715.75 49,662.77 51,074.75 49,690.09 49,704.67 Garrison Financial Policemen's Pension and Relief Fund October 15, 2015 Page 13 of 42 PURCHASE AND SALE City of Fayetteville Police Pension and Relief Fund Charles Schwab #2448-5630 From 01-01-15 To 09-30-15 Trade Settle Date Date Quantity Security 03-19-15 03-24-15 850 Texas Instruments 03-12-15 03-17-15 450 Wabtec Corp. SALES 03-19-15 03-19-15 05-07-15 05-07-15 03-19-15 03-19-15 03-19-15 03-19-15 03-19-15 03-19-15 03-19-15 03-19-15 03-19-15 03-19-15 03-19-15 03-19-15 03-19-15 03-19-15 05-07-15 05-07-15 05-07-15 03-19-15 05-08-15 04-08-15 04-08-15 03-19-15 04-08-15 04-08-15 03-19-15 03-24-15 2,000 Alerian MLP 03-24-15 3,000 Alerian MLP 05-12-15 200 Cisco Systems, Inc. 05-12-15 1,300 Cisco Systems, Inc. 03-24-15 100 Ensco Plc. 03-24-15 250 Ensco Plc. 03-24-15 300 Ensco Plc. 03-24-15 300 Ensco Plc. 03-24-15 800 Ensco Plc. 03-24-15 100 Freeport-McMoRan Copper & Gold, Inc. 03-24-15 200 Freeport-McMoRan Copper & Gold, Inc. 03-24-15 100 Freeport-McMoRan Copper & Gold, Inc. 03-24-15 100 Freeport-McMoRan Copper & Gold, Inc. 03-24-15 100 Freeport-McMoRan Copper & Gold, Inc. 03-24-15 100 Freeport-McMoRan Copper & Gold, Inc. 03-24-15 100 Freeport-McMoRan Copper & Gold, Inc. 03-24-15 100 Freeport-McMoRan Copper & Gold, Inc. 03-24-15 1,100 Freeport-McMoRan Copper & Gold, Inc. 05-12-15 250 Intel Corp. 05-12-15 750 Intel Corp. 05-12-15 450 Johnson & Johnson 03-24-15 5,650 Keycorp 05-13-15 635 McDonald's Corp. 04-13-15 150 Microsoft Corp. 04-13-15 2,675 Microsoft Corp. 03-24-15 1,750 Noble Corp. 04-13-15 50 Pfizer, Inc. 04-13-15 3,600 Pfizer, Inc. 03-24-15 2,000 Sector SPDR Fuel Select Shs 3 Unit Price Amount 58.53 49,754.69 93.64 42,137.64 1,308,168.13 16.34 16.34 28.81 28.81 20.62 20.62 20.62 20.62 20.61 17.20 32,676.02 49,014.03 5,762.90 37,458.85 2,061.55 5,153.88 6,184.66 6,184.66 16,491.60 1,720.02 17.20 3,440.04 17.20 1,720.02 17.20 1,720.02 17.20 1,720.02 17.20 1,720.02 17.20 1,720.02 17.20 1,720.02 17.20 18,915.85 32.32 32.32 99.86 14.41 98.51 41.35 41.35 13.53 34.66 34.66 24.41 8,080.37 24,241.09 44,938.97 81,406.62 62,554.99 6,201.93 110,601.00 23,685.79 1,732.85 124,765.24 48,818.36 Trade Date 03-19-15 03-19-15 03-19-15 03-19-15 03-24-15 03-24-15 03-24-15 05-08-15 Policemen's Pension and Relief Fund October 15, 2015 Page 14 of 42 Garrison Financial 3 PURCHASE AND SALE City of Fayetteville Police Pension and Relief Fund Charles Schwab #2448-5630 From 01-01-15 To 09-30-15 Settle Unit Date Quantity Security Price Amount 03-24-15 1,775 Sector SPDR Fncl Select Shs 24.41 43,324.52 03-24-15 1,700 Sector SPDR Utility Select Sins 44.91 76,343.50 03-24-15 2,300 Sector SPDR Utility Select Shs 44.91 103,288.25 03-24-15 3,000 iShares DJ Select Div 78.45 235,336.72 03-27-15 800 iSharesIBOXX Inv Grade Corp Bond 121.86 97,490.72 03-27-15 46 iSharesIBOXX Inv Grade Corp Bond 121.86 5,605.72 03-27-15 1,204 iSharesIBOXX Inv Grade Corp Bond 121.86 146,723.52 05-13-15 1,250 iSharesIBOXX Inv Grade Corp Bond 119.06 148,825.94 1,589,350.28 3 Policemen's Pension and Relief Fund October 15, 2015 Page 15 of 42 Garrison Financial REALIZED GAINS AND LOSSES City of Fayetteville Police Pension and Relief Fund Charles Schwab #2448-5630 From 01-01-15 Through 09-30-15 Gain Or Loss Open Close Cost Amort. or Date Date Quantity Security Basis Accretion Proceeds Short Term Long Term 04-16-14 03-19-15 100 Ensco Plc. 5,034.33 2,061.55 -2,972.78 04-16-14 03-19-15 250 Ensco Plc. 12,585.82 5,153.88 -7,431.94 04-16-14 03-19-15 300 Ensco Plc. 15,102.98 6,184.66 -8,918.32 04-16-14 03-19-15 300 Ensco Plc. 15,102.98 6,184.66 -8,918.32 04-16-14 03-19-15 800 Ensco Plc. 40,274.61 16,491.60 -23,783.01 06-10-14 03-19-15 1,750 Noble Corp. 48,930.13 23,685.79 -25,244.34 06-26-14 03-19-15 2,000 Alerian MLP 36,190.60 32,676.02 -3.514.58 01-16-13 03-19-15 3,000 Alerian MLP 51,451.61 49,014.03 -2,437.58 12-20-10 03-19-15 1,700 Sector SPDR Utility Select 58,043.02 76,343.50 18,300.48 Shs 12-20-10 03-19-15 2,300 Sector SPDR Utility Select 78,528.80 103,288.25 24,759.45 Shs 05-19-14 03-19-15 5,650 Keycorp 75,839.95 81,406.62 5,566.67 02-10-14 03-19-15 2,000 Sector SPDR Fncl Select Shs 43,639.23 48,818.36 5,179.13 02-10-14 03-19-15 1,775 Sector SPDR Fnc1 Select Shs 38,729.82 43,324.52 4,594.70 05-12-14 03-19-15 100 Freeport-McMoRan Copper 3,487.70 1,720.02 -1,767.68 & Gold, Inc. 05-12-14 03-19-15 200 Freeport-McMoRan Copper 6,975.40 3,440.04 -3,535.36 & Gold, Inc. 05-12-14 03-19-15 100 Freeport-McMoRan Copper 3,487.70 1,720.02 -1,767.68 & Gold, Inc. 05-12-14 03-19-15 100 Freeport-McMoRan Copper 3,487.70 1,720.02 -1,767.68 & Gold, Inc 05-12-14 03-19-15 100 Freeport-McMoRan Copper 3,487.70 1,720.02 -1,767.68 & Gold, Inc. 05-12-14 03-19-15 100 Freeport-McMoRan Copper 3,487.70 1,720.02 -1,767.68 & Gold, Inc. 05-12-14 03-19-15 100 Freeport-McMoRan Copper 3,487.70 1,720.02 -1,767.68 & Gold, Inc. 05-12-14 03-19-15 100 Freeport-McMoRan Copper 3,487.70 1,720.02 -1,767.68 & Gold, Inc. 05-12-14 03-19-15 1,100 Freeport-McMoRan Copper 38,364.70 18,915,85 -19,448.85 & Gold, Inc. 08-08-11 03-19-15 3,000 iShares DJ Select Div 156,695.97 235,336.72 78,640.74 10-06-09 03-24-15 800 iShares IBOXX Inv Grade 87,773.42 97,490.72 9,717.30 Corp Bond 10-06-09 03-24-15 46 iShares IBOXX Inv Grade 5,046.97 5,605.72 558.75 Corp Bond 10-06-09 03-24-15 1,204 iShares IBOXX Inv Grade 132,099.00 146,723.52 14,624.52 Corp Bond 06-26-14 04-08-15 150 Microsoft Corp. 6,271-50 6,201,93 -69.57 11-05-13 04-08-15 2,675 Microsoft Corp. 100,543,80 110,601.00 10,057.20 06-26-14 04-08-15 50 Pfizer, Inc. 10,088.00 1,732.85 -8,355.15 05-07-10 04-08-15 3,600 Pfizer, Inc. 72,44175 124,765.24 52,323.49 06-26-14 05-07-15 250 Intel Corp. 7,037.50 8,080.37 1,042.87 06-22-06 05-07-15 750 Intel Corp. 15,400.90 24,241.09 8,840.18 06-26-14 05-07-15 200 Cisco Systems, Inc. 4,642.00 5,762.90 1,120.90 03-29-I1 05-07-15 1,300 Cisco Systems, Inc. 25,614.04 37,458.85 11,844.81 04-15-11 05-07-15 450 Johnson & Johnson 29,113.09 44,938.97 15,825.88 10-06-09 05-08-15 1,250 iShares IBOXX Inv Grade 137,145.97 148,825.94 11,679.97 Corp Bond Garrison Financial REALIZED GAINS AND LOSSES City of Fayetteville Police Pension and Relief Fund Charles Schwab #2448-5630 From 01-01-15 Through 09-30-15 Open Close Cost Amort. or Date Date Quantity Security Basis Accretion Proceeds 12-31-14 05.08-15 635 McDonald's Corp. 60,065.98 62,554.99 TOTAL GAINS TOTALLOSSES TOTAL REALIZED GAINILOSS 150,162.51 NO CAPITAL GAINS DISTRIBUTIONS 1,439,187.77 0.00 1,589,350.28 2 Policemen's Pension and Relief Fund October 15, 2015 Page 16 of 42 Gain Or Loss Short Term Long Term 2,489.01 10,219.45 -124,565.97 -114,346.52 266,946.61 -2,437.58 264,509.03 Garrison Financial PERFORMANCE SUMMARY GROSS OF FEES City of Fayetteville Police Pension and Relief Fund Charles Schwab #2448-5630 September 30, 2015 PORTFOLIO COMPOSITION Policemen's Pension and Relief Fund October 15, 2015 Page 17 of 42 . l: F11►`fr] no 10 Z1]'.TI M311]BI17 Commodities Unrealized Gains -442,049.03 Income Received 133,630.77 Change in Accrued Interest -2,965.97 Portfolio Value on 09-30-15 6,089,496.25 Accrued Interest 13,168.06 Total 6,102,664.30 100.0 2.3 6,102,664.30 TIME WEIGHTED RETURN Market Pet. Annualized Quarter Value Assets Yield To Date Cash & Equivalents 298,453.13 4.9 0.0 Portfolio Value on 12-31-14 7,023,870.27 Account Fixed 2,279,635.06 37.4 1.8 Accrued Interest 16,134.03 Income Equity Blended Index Account Equities 3,524,576.12 57.8 2.8 Net Additions/Withdrawals -577,065.04 Account 0.00 0.0 2.11 Realized Gains -48,890.72 Commodities Unrealized Gains -442,049.03 Income Received 133,630.77 Change in Accrued Interest -2,965.97 Portfolio Value on 09-30-15 6,089,496.25 Accrued Interest 13,168.06 Total 6,102,664.30 100.0 2.3 6,102,664.30 TIME WEIGHTED RETURN All "Account" returns refer to your portfolio. Benchmark indexes are also listed for reference. All returns are reported as percentages. This report is calculated using industry -standard accounting and performance calculation methodologies and is generated by our Axys portfolio accounting software. Calculations are a time -weighted total return series based on monthly valuations, including all cash and equivalents. All calculations are done based on trade date, employing the accrual method of accounting and include cash, interest, dividends and realized and unrealized gains and losses. Performance is adjusted to accurately reflect portfolio deposits and withdrawals. Results are presented after transaction costs but before management fees. Inception -to -date returns are annualized numbers, except for accounts under management less than one year. Unsupervised assets are excluded in performance calculation. At any given point in time an investment may be worth more or less than the original purchase price. Annualized Quarter Year Last 12 Inception To Date To Date Months To Date Account -4.98 -5.56 -4.11 -3.97 40% Fixed Income/60% -3.49 -2.38 0.85 1.22 Equity Blended Index Account Fixed Income 0.69 1.84 2.88 2.34 Barclays Capital Intermed 0.95 1.77 2.68 2.11 Govt/Credit Account Equities -8.68 -10.20 -8.45 -7.93 S&P 500 -6.44 -5.29 -0.61 0.40 All "Account" returns refer to your portfolio. Benchmark indexes are also listed for reference. All returns are reported as percentages. This report is calculated using industry -standard accounting and performance calculation methodologies and is generated by our Axys portfolio accounting software. Calculations are a time -weighted total return series based on monthly valuations, including all cash and equivalents. All calculations are done based on trade date, employing the accrual method of accounting and include cash, interest, dividends and realized and unrealized gains and losses. Performance is adjusted to accurately reflect portfolio deposits and withdrawals. Results are presented after transaction costs but before management fees. Inception -to -date returns are annualized numbers, except for accounts under management less than one year. Unsupervised assets are excluded in performance calculation. At any given point in time an investment may be worth more or less than the original purchase price. Owl GARRISON F I N A N C I A L October 7, 2015 City of Fayetteville Police Pension and Relief Fund Charles Schwab #2448-5630 113 West Mountain Fayetteville, AR 72701 STATEMENT OF MANAGEMENT FEES Policemen's Pension and Relief Fund October 15, 2015 Page 18 of 42 For The Period July 1 through September 30, 2015 Portfolio Value as of 06-30-15 6,519,258 Portfolio Value as of 07-31-15 6,462,506 Portfolio Value as of 08-31-15 6,203,646 Portfolio Value as of 09-30-15 6,102,664 Average of 4 Months 6,322,018 6,322,018 @ 0.5000% per annum 7,903 Quarterly Management Fee 7,903 TOTAL DUE AND PAYABLE 7,903 This statement is for informational purposes only. As you requested, the fee will be automatically deducted from your account. Please be advised that it is the responsibility of the client to verify the accuracy of each fee calculation. The custodian will not determine whether the fee is properly calculated. Lioneld Jordan Chairman Sondra E. Smith Treasurer Eldon Roberts Secretary Retired Position 1 Policemen's Pension and Relief Fund October 15, 2015 Policemen's Pension & Relief Ff? ge 19 of 42 Board of Trustees Meeting Minutes July 16, 2015 Page 1 of 9 Ruston Cole Retired Position 2 John Brown Retired Position 3 Melvin Stanley Retired Position 4 Frank Johnson Retired Position 5 Policemen's Pension and Relief Fund Board of Trustees Meeting Agenda July 16, 2015 A meeting of the Fayetteville Policemen's Pension and Relief Fund Board of Trustees was held on July 16, 2015 at 3:00 p.m. in Room 326 of the City Administration Building located at 113 West Mountain Street, Fayetteville, Arkansas. Mayor Jordan called the meeting to order. PRESENT: Mayor Jordan, John Brown, Frank Johnson, Melvin Stanley, Eldon Roberts, Ruston Cole, Lisa Branson, Dee McCoy, City Clerk Office, Glenn Atkins, James Bell, Garrison Financial, Trish Leach, Accounting, Kit Williams, City Attorney ABSENT: Sondra Smith Garrison Financial: 2nd Quarter reports James Bell: We ended the quarter on June 30 at just over $6.5 million in the entire portfolio. Starting first with asset allocation, we are right on target. The policy is 60% equity and 40% fixed income. We are at 59.6% equity, 35% fixed income and about 5% cash. We tend to hold a pretty healthy cash cushion to fund the distributions that come monthly from the city. On the equity side, over the second quarter we made a few trades on the portfolio. We sold McDonalds in the quarter. It's a well-run company but one that we think is kind of topped out valuation wise and execution wise. We bought Disney in the quarter. That's a company I think has a lot of potential, a great, bright future in front of them. We did sell a few other partial positions and that was strictly to fund some of the cash withdrawals and keep the policy in line. Looking at performance, the equities for the quarter were up 10 basis points. Stocks were up ten basis points versus 28 basis points for the S&P500. We had a drag this quarter from our holdings in energy and industrials. Those two sectors underperformed a little bit. They weren't the weakest performer in the markets; that was actually utilities. I'm happy to say that we rolled out of all of Policemen's Pension and Relief Fund October 15, 2015 Policemen's Pension & Relief Ff?i ge 20 of 42 Board of Trustees Meeting Minutes July 16, 2015 Page 2 of 9 your utility holdings in the first quarter. We avoided some of that weakness in the utilities. On the positive side healthcare was very strong in your portfolio and in the market. We also own a company called Syngenta which received a takeover bid from Monsantos, so we saw some positive performance there. Going forward, in the equity markets we continue to think that stocks are fairly valued at this point. It feels to us like the biggest risks to the companies in the market are coming from outside the companies themselves. They continue to execute well, and grow their earnings. What we see are things like interest rate risk, what's going on in Greece or there's something geo- political maybe in the Middle East. Those feel like the bigger risks in the market than something valuation wise or company specific. That's what we continue to monitor on the equity side. Glenn Atkins: Performance on the fixed income still continues to be good relative to the market. Year-to-date the fixed income portion is up 1.14% versus 0.82% on the market. Twelve months it's up almost 2.25% versus 1.69% on the index. We took a couple of actions in the quarter that really served us well. We sold the remaining portion of the iBoxx investment grade bond fund, what we call the LQD. We did that for a couple of reasons. One, because the duration was 7.40 years or 7.5 years. Part of the proceeds we reinvested in an individual bond Berkshire Hathaway, which as you know is Warren Buffett's company. We used some of the proceeds to purchase JB Hunt Transport, which you all should be familiar with. The Berkshire purchase was late in the first quarter. The remaining cash from the sale of the LQD was just put in the portfolio's cash and taken out as distributions and things like that. What we have remaining to do on the fixed income side would be at some point to sell the remaining Treasury Bond and the remaining agency securities and we'll put those in corporate bonds. The reason selling the LQD's helped us a lot was because the fixed income market was down for the quarter. As we shortened our maturities we weren't down as much as the market was. Last quarter, the duration on the portfolio was 3.60 years, right now its right at 3 years. That's about where I want it now, but between now and a year from now you'll probably see purchases that are longer than that to keep that duration right in that 3 to 4.5 years range. In terms of market expectations, the volatility continues to be a problem. We try not to step into the market when rates are really low and two weeks later there becomes a buying opportunity. Clearly there's an upper bias in interest rates. Last quarter I would've told you that I would think the Fed would raise interest rates in September, now I'm not so sure about that. They could do it in September to make a point, I think the consensus would be at the December meeting. There are some folks that are saying that an interest rate rise is not going to occur until 2016. A lot of that has to do with, as James mentioned, factors that are really exterior to the United States, the Greece issue, the China issue and the fact that our rates are already higher than most of them around the world. The situation in Greece seems to be playing out in a non -worst case scenario. I guess the worst case would have been that the banks would have run out of money the day before yesterday, or yesterday. That seems likely to happen, but I think it was Eldon mentioning that it's just kicking the can down the road. The flip side of that is that Greece is only 1.5% roughly of the Euros on the economy. I think that if there were to become a worst-case situation over there that it would only have a temporary effect on us and what the Fed intends to do with interest rates. China is a different ball of wax, they are very significant to the world economy. Hopefully that situation will stabilize over there. That is all we have formally prepared. We are happy to talk about anything you want too, entertain questions, comments, ideas, criticisms, whatever you like. In addition, I included pictures like I do every quarter just because I think its fun. The first one is the quarter, the second Policemen's Pension and Relief Fund October 15, 2015 Policemen's Pension & Relief Fri ge 21 of 42 Board of Trustees Meeting Minutes July 16, 2015 Page 3 of 9 one is year-to-date, and the third one is for the last year on the ten year treasury yield that we sort of use as our market benchmark. Approval of the Minutes: Approval of the April 16, 2015 meeting minutes Ruston Cole moved to approve the April 16, 2015 meeting minutes. Eldon Roberts seconded the motion. The motion passed with a 6-0 vote. Sondra Smith was absent. Pension List Changes: None Approval of the Pension List: Approval of the August, September and October, 2015 pension lists Ruston Cole moved to approve the August, September and October, 2015 pension lists. Frank Johnson seconded the motion. The motion passed with a 6-0 vote. Sondra Smith was absent. Unfinished Business: None New Business: Revenue & Expense Report: 1st Quarter -March 31, 2015 and 2nd Quarter -June 30, 2015 report Kit Williams: This is just an informational item. Trish Leach: Eldon and I visited Monday or Tuesday because we always get the checks from the State that funds the future supplement, which if you received your check or your direct deposit form hopefully by now you'll notice you had a little extra money this month, $1,110. We were late in mailing in them because we kept waiting for the State to send us the money and they had a problem with one of our checks. They don't send any of our checks until they get it all fixed. I finally called them and got all the details because we wanted to put it on the agenda. This is just a breakdown we always give of how much money we got for the plan, the future supplement, that additional allocation that they run back through and do and it also includes the Fire information. We actually got the checks yesterday at 2:00 and it wasn't time to get it in your packet. Policemen's Pension and Relief Fund October 15, 2015 Policemen's Pension & Relief Fri ge 22 of 42 Board of Trustees Meeting Minutes July 16, 2015 Page 4 of 9 2014 Annual Actuarial Valuation Lisa Branson: I believe that was e-mailed. Frank Johnson: It was. Haven't we responded to this before? Mayor Jordan: We sent out a letter sometime in May. Kit Williams: I think we have. This is not news. Mayor Jordan: I gave a report to the Council in January, I think, where everything was and what was happening. Frank Johnson: Where's our response? I've never quite understood what's behind this, what triggers this. We review things consistently as part of our meeting agendas. Eldon, do you know why they're doing this? Eldon Roberts: It's customary standard procedure for all of the funds. It's in the at -risk column. It's just a bookkeeping deal. We can change the dates on that letter we sent them last time. Mayor Jordan: It's a repetitious thing. The report that I gave in January is that the Fire and Police pension both are not in good shape. Kit Williams: You're not nearly as bad as the Fire plan. Mayor Jordan: But it's not great. Kit Williams: No. Frank Johnson: There's not a great pension plan in all of the United States. Kit Williams: There's lots of problems. Mayor Jordan: I was at the U.S. Conference of Mayors not quite two weeks ago and they are having trouble with pension funds all across the United States. This is not anything abnormal. It's not a unique problem. A lot of the Mayors are changing the retirements and there's just all kinds of things going on. I think we are seeing some of that down in Fort Smith right now, they are all over the place. I think they changed their pension fund. Kit Williams: I think they did. You can't really tell from the news stories exactly what they did. Mayor Jordan: I have not had the chance to talk to the Mayor of Fort Smith on that. Trish Leach: They went to LOPFI I to lower their cost. They consolidated their old plans years ago and so that throws off their LOPFI percentage. Policemen's Pension and Relief Fund October 15, 2015 Policemen's Pension & Relief Fri ge 23 of 42 Board of Trustees Meeting Minutes July 16, 2015 Page 5 of 9 Frank Johnson: They are receiving some discussion in Fort Smith about going to the voters, wasn't there? Mayor Jordan: There was something I read last week on Fort Smith that the retirement that they are putting in their non-uniform people too, they are looking at that. Kit Williams: They have their non-uniform in retirement? Mayor Jordan: It's kind of like their retirement plan. They are looking to take that to the voters or something. Kit Williams: Some other cities actually do have APERS or their employees on the state plan. Mayor Jordan: It's certainly an issue across the state and across the nation. Frank Johnson: You're on the board so that's good that you're considering those things. I hope the Council is considering it too. Mayor Jordan: We are. We are trying to figure out what we're going to do here, Frank. I've seen this thing coming for a while. I've been talking about it since I've been in office about these pension plans and what we're going to do with it. Frank Johnson: A discussion seems to always default to a reduction in benefits. There's a lot of other options other than that one. Mayor Jordan: Sure there is. You can consolidate and send it to LOPFI. There's any number of things. I know my finance director a few years ago said that it would cost us about a million dollars to take those pension plans and send them down. I think the numbers have changed now. Kit Williams: It would be significantly more than a million dollars, unless he was talking about annually. I think it wouldn't be that much unless you're talking about both plans annually. That's a pretty good chunk of money. Mayor Jordan: It's back and we're visiting with folks right now. I've been talking to the legislator about it. Frank Johnson: That's good. It's just something that we talk about, Eldon and I. I'm going to draw you into this Eldon, we retired a bunch of has been cops and we made a promise years ago. Had that promise not been made, we would have pursued other alternatives for our retirement. We are where we're at right now. Mayor Jordan: That's going to have to be addressed because it's not going to get any better, I don't think. Eldon Roberts: I know the report is back from the Fire department and they're additional or extra actuarial evaluation, have you all had time to review that? Can anybody comment on that? They have a meeting coming up, when? Policemen's Pension and Relief Fund October 15, 2015 Policemen's Pension & Relief Fri ge 24 of 42 Board of Trustees Meeting Minutes July 16, 2015 Page 6 of 9 Kit Williams: They are trying to have a meeting with the state people. Mayor Jordan: September 29th. All this happened yesterday afternoon. Kit Williams: The e-mail I saw, I didn't even know what time. Lisa Branson: 5:30 p.m. Melvin Stanley: What's that meeting for? Eldon Roberts: That's when Jody Carreiro and Steve Osborn, the actuarial evaluation people in Little Rock, come up here and want to meet with the Mayor and the Council members and go over that special actuarial elevation that the Fire department had done, and explain how they see it. Mayor Jordan: They've changed the numbers. Kit Williams: What the cost would be. Mayor Jordan: Yes. There was something to do with the rate of return was set at 5%. You all hadn't hit 5%. There's a certain year maturity and I can't remember what that is. Eldon Roberts: Amortization period had been moved out a lot further. Mayor Jordan: They're going to string it out. Kit Williams: They are also saying the rate of return is going to be better. Mayor Jordan: 8% I think. Eldon Roberts: It might be better compared to what we're doing here, because if that ever materializes they're going to take that money and put it into LOPFI's money. They're running around $500 million or maybe close to a billion. They're getting a better rate of return. Mayor Jordan: It's kind of like an insurance policy, the more people you have paying in the better it is. They move everything together. I'm getting into some waters here I'm not really great at, but that's what I know so far. Kit Williams: It's hard to beat the overall market average though. If the overall market isn't getting 8% then it's going to be pretty hard to beat. Mayor Jordan: I think the argument is going to be made that they say that they are. That's the overall. They would be able to explain, I certainly would encourage you to attend that meeting. Policemen's Pension and Relief Fund October 15, 2015 Policemen's Pension & Relief Ff?i ge 25 of 42 Board of Trustees Meeting Minutes July 16, 2015 Page 7 of 9 2015 Evaluating Local Plan Investments Memo Lisa Branson: That's on page 67. Eldon Roberts: I'm not sure this is that letter that we're supposed to respond too that they send us every year about what are we doing in this area and what are we doing in that area and what are we doing to better ourselves. That's the one we send back and tell them we are doing all we can do. This appears to be something different. Frank Johnson: It kind of spelled out all the areas. It didn't seem like the previous one. Mayor Jordan: Sondra drew up a letter, and we sent some sort of response but it's been a while. Right now, the plan is to be looking at how to incorporate everything in LOPFI, if we were trying to work on a plan. That's going to be for that PRB board to come up and tell us what it's going to take. Then we're going to have to make some decisions because at the rate it's going, eventually it's done. It's gone. Eldon Roberts: The Fire department cancelled their regular scheduled meeting? They always follow us. Mayor Jordan: I got a letter yesterday asking me to postpone that meeting so we've decided to just put it all on September 29tH Lisa Branson: They're wanting to reschedule in August. Mayor Jordan: Oh, they are? Okay. Kit Williams: This would be just them. Eldon Roberts: Right, just be the local board meeting just like we do. Mayor Jordan: So we'll do one in August and one in September. That'll be fine. Eldon Roberts: I've always said the state could sure help in this matter. Here's what's happening, I think, as time goes along, more and more people are merging with LOPFI. That is slowing down the problem. It's getting smaller. There's not that many people out there to confront the state representatives and senators and say we need some help, this is a big problem for the whole State of Arkansas. I think that problem is dwindling to some degree because more and more people are seeing fit to join their Fire and Police with LOPFI. That takes care of the problem for that part. I don't know how prone the state is going to be to try to give us some help now because of the fact that more and more people are joining LOPFI. Mayor Jordan: When I talked to the Mayor of Little Rock, it's not been a month ago talking about this very situation, when I asked him what they did, he said we took care of that and merged with LOPFI. Frank Johnson: How was it so easy for them to do that? Policemen's Pension and Relief Fund October 15, 2015 Policemen's Pension & Relief Fri ge 26 of 42 Board of Trustees Meeting Minutes July 16, 2015 Page 8 of 9 Mayor Jordan: I don't know. Kit Williams: I think they actually had an election, I think it was part of a sales tax. Eldon Roberts: It was spelled out up front on how much of it was to go towards this problem. It passed, people voted it in. It kind of fixed that problem. That's just the Police I think, I don't know about Little Rock Fire. I think Fire is still out on their own. Frank Johnson: I'm just curious, and maybe this is a conversation to be having another time, but it just seems like they were able to accomplish that with a sales tax no less, are these discussion as options occurring at the Council level? I don't have a sense other than your annual report that they know they have something they're going to have to deal with and they have options. Mayor Jordan: Frank, I made it real clear to that Council on several occasions that we have a situation here that's going to have to be addressed. Kit Williams: Little Rock is a different situation. We've maxed out our sales tax for something that could be used like this. Little Rock had not because they had been unable to pass a sales tax for a long time. Then they worked together on this, had many different little parts of it and put it together and it actually passed. We, on the other hand, already have our operational penny committed, we have the bond penny committed. Those are our two pennies. There are some additional sales taxes you can use for specialized things but nothing that would qualify for pension. That part of it doesn't appear to be possible. It is still possible for millage though. Millage would still be available to you. Mayor Jordan: There was some bill that they had, and I don't know if that passed or not, where we could go up to 2 mill each. Kit Williams: You could certainly go up to 1 mill, which is more than double of what you're getting. Mayor Jordan: You sure can by a vote of the people. Frank Johnson: That's the discussion. If I were an elected official, I would be apprehensive about going to my constituents about increasing their property taxes. I would certainly start the conversation about that being a viable option early where it's not anything that just comes up and they say oh we're not going to do it. In the end, they're one vote but the people that vote for them may have a different perception about law enforcement and retired officers and public servants. Mayor Jordan: The very first day, one of the very first things I said when I came into this office was that we've got a problem with the pension. We brought those people up here in 2010, the same people that's coming back in September. Eldon you were in that meeting. They told us how it was and what we needed to do and what it would take. We took it to the Council and the Council at that point in time did not wish to do anything. We brought things back periodically to the boards on what direction they would like to take, you all have been a little more active. The Firemen's Pension Board didn't want to do anything. Then we started about a year ago talking about merging Policemen's Pension and Relief Fund October 15, 2015 Policemen's Pension & Relief Fri ge 27 of 42 Board of Trustees Meeting Minutes July 16, 2015 Page 9 of 9 with LOPFI. That's a possibility, but I haven't run the numbers. Eldon, you go to those meetings. Paul goes to those meetings. Eldon Roberts: It's a problem. It's not really a real problem right now, but we're headed in that direction. Everybody has a tendency to put off and put off until all of a sudden we're here. Well, yeah we saw this coming 10 to 15 years ago. If we would have started then it wouldn't be near as serious as it is now. That may be some of the problem, it's not needed right now. It'd be easy to put it on the back burner, so to speak. Maybe when we have the meeting September 29 with State Representative, Senators and all of the Council members, and all of you all, us and the Fire, maybe we can get some concrete options laid out and maybe even begin to pursue some of them. What this new study that has been completed on the Fire department, what it spells out and whenever they break it down to where we can all understand it a little better then we're going to begin to see what options are out there. Mayor Jordan: There's going to be some kind of decision made by both boards before the end of October. That's just me. Eldon Roberts: I think it takes a mutual agreement between Council and the local boards to go ahead and do it, does it not? Kit Williams: Yes, it would. Election Results -Eldon Roberts, Melvin Stanley and John Brown Lisa Branson: The 2015 elections were complete. Eldon Roberts, Melvin Stanley and John Brown were re-elected. Informational: Longer View July 10, 2015 Kit Williams: Do we still get something from them? Eldon Roberts: We still get that newsletter she puts out every quarter. It's pretty interesting, I like to read it. 2015 Meeting calendar -October 15, 2015 next meeting Adjourn: 3:35 p.m. Policemen's Pension and Relief Fund October 15, 2015 Page 28 of 42 Policemen's Pension and Relief Fund October 15, 2015 Page 29 of 42 BELLA VISTA — Charles "Charlie" DeVian Allen, age MEE74, of Bella Vis- ta passed away in his home on Sept. 25, 2015. He was born Nov 25,1940, in Milo, Okla. He was preceded in death' by his mother, Gladys Mae Stone McKenzie Allen, and his father (Fred) Lyle Allen. He is survived by four sons, Sean Allen, Gabe Al- len of Denver, Colo.; Jaymes Allen of Bentonville; Phillip Allen of Bella Vista as well as two brothers, Lynn McKenzie of Bella Vista and Allen McK e_nzie of Healing Springs. i '. Charles was a graduate from University High in Fay- etteville. He was also a past participant in the Veterans Upward Bound Program at the University of Arkansas. Charlie was a veteran of the Fayetteville Police Depart - went where he worked for 20 plus years. While there he received several commenda- ' ns and recognitions and re- tued from public service in 1997. He was best known for Always having a cup of coffee irt his hand. Charles was also a 22 year 'reteran of the armed forces raving served three years ac- fiive duty in the Navy to go on , 6 serve several years in the Naval Reserve, several years in the National Guard, ending with most of his years of ser- viee with the Army Reserve attached to the 362nd PsyOps =Unit in Fayetteville. Most of lus fondest memories were om times he spent serving s country and on drill week- eids. Charlie wanted best to be remembered as one de - v ted to his country and his c mmunity.. Graveside Memorial Ser- e being planned for Saturday Oct. 3, 2015, at Farm- ugton Cemetery at 10 am. In lieu of flowers please send do- nk s to the o dedWAr- f1bir fund. Online donations 6dri be made at: wwwwound- edwarriororg. Arrangements by Epting Funeral Home Fay - Condolences: www. Fayetteville, Arkansas POLICEMEN'S PENSION & RELIEF FUND AFFIDAVIT �JJ Calendar Year: 2015 STATEOF(A/L�sa✓JS�s COUNTY OF fs✓2'r )aa: Policemen's Pension and Relief Fund October 15, 2015 Page 30 of 42 RECEIVED JAN 2 0 2015 CPU CLEARKSOFFMCE I, f •�/�/Z. /E'G LJl "1�02t% �<.F'x1 , do solemnly swear that I presently receive pension benefits from the Policemen's Pension and Relief Fund and I am eligible to continue receiving pension benefits as governed under state law. Ey', am a former police officFr for the Fayetteville Police Department. ❑ I am the spouse/former spousWw1dow of a former police officer of the Fayetteville Police Department, and that I have not remarried since becoming eligible for benefits. ❑ I am an eligible dependent of a former police officer for the Fayetteville Police Department and have attached an affidavit verifying my school attendance. Gc4 Address:./!a7- &a• g2 Y`i'f Telephone: (0r!tjjjjvBirth Social Security No.: date: State Iaw governs who can receive Your pension benefits upon your death. Please provide the following information concerning Your spouse and children 23 years of age or younger. NAME Sonar. SEcug= No. DATED this ,C day of BitTl4DATE . RELATIONSHIP AFFIANT (signature) SUBSCRIBED AND SWORN to before me, a Notary Public, this /. day of QllttQy ZG / J Notary My Commission Expires: Z 1G ZG/7 (This affidavit is required annually by the Policemen's Pension and Relief Fund Board of Trustees and must be properly completed and returned to the Fayetteville City Cleric, 113 West Mountain, Fayetteville, Arkansas, 72701 by January 31st each year.) t r,4 /`A* /1X /VX— /✓`A AFFIANT (signature) SUBSCRIBED AND SWORN to before me, a Notary Public, this /. day of QllttQy ZG / J Notary My Commission Expires: Z 1G ZG/7 (This affidavit is required annually by the Policemen's Pension and Relief Fund Board of Trustees and must be properly completed and returned to the Fayetteville City Cleric, 113 West Mountain, Fayetteville, Arkansas, 72701 by January 31st each year.) OFFICE OF THE CITY CLERK TREASURER Sondra E. Smith — City Clerk Treasurer Lisa Branson — Deputy City Clerk 113 W. Mountain Street, Suite 308 Fayetteville, AR 72701 TO: Trish Leach Accounting FROM: Sondra E. Smith, City Clerk Treasurer Jeo DATE: September 29, 2015 RE: Estate of Charles Devon Allen Death Benefits Policemen's Pension Policemen's Pension and Relief Fund October 15, 2015 Page 31 of 42 Phone 479.575.8323 cityderk@fayetteviUe-ar.gov I am forwarding this memo to you so that you may pay death benefits to the above retired police officer's estate. Mr. Allen was a member of the old pension plan. After speaking with Eldon Roberts, who serves on the Policemen's Pension & Relief Fund Board of Trustees, it has been determined that the following payment should be made: Pay to the Estate of Charles Devon Allen a sum of $200.00 for death benefits. Death benefits are only paid to the retired Police Pensioner's estate upon their death. When a widow or widower of a Police Pensioner deceases their estate does not receive death benefits. a e evi le Y Aft KANSAS www.accessfayetteville.org TO: Trish Leach, Accounting Summer Fallen, Accounting FROM: Sondra E. Smith, City Clerk Treasurer d DATE: September 29, 2015 RE: Charles Devon Allen Policemen's Pension Policemen's Pension and Relief Fund October 15, 2015 Page 32 of 42 Office of the City Clerk Treasurer 113 West Mountain Fayetteville, AR 72701 Phone: (479) 575-8323 Fax: (479) 718-7695 city_�derk@ci.fayetteville.ar.us 1 am forwarding this memo to you due to the death of a Police Pensioner. Please stop the pension benefit for Mr. Charles Devon Allen. Mr. Allen was receiving benefits due to being on the old Police Pension plan. He deceased September 25, 2015, therefore no pension benefits should be paid beginning October, 2015. Attached is a copy of the obituary. When the death certificate is received a copy will be forwarded to Accounting. Telecommunications Device for the Deaf TDDf M (479) 521-1316 Policemen's Pension and Relief Fund POLICE PENSION FUND 10 10 10 10 OcAer 15, 2015 REVISED October 2015 6606-9800 6800-0800 Page 33 of 42 Month 10 Regular Mo 5335M 5335-05 10 EMP# NAME Benefit YTD Reg Benefit Suppl. YTD Suppl. Future Supple 154 ALLEN, CHARLES deceased 9/25/2015 $ - $ 23,261.76 $ - $ 450.00 206 BAYLES, BOBBI J $ 1,587.41 $ 15,874.10 $ 50.00 $ 500.00 216 BLACK, MILDRED $ 1,125.64 $ 11,256.40 $ 50.00 $ 500.00 147 BRADLEY, GERALD $ 4,820.09 $ 48,200.90 $ 50.00 $ 500.00 139 BRADLEY, RANDALL $ 2,860.17 $ 28,601.70 $ 60.00 $ 500.00 167 BROWN, JOHN $ 4,362.01 $ 43,620.10 $ 50.00 $ 500.00 157 CARROLL,RONALD L $ 2,106.04 $ 21,060.40 $ 50.00 $ 500.00 151 COLE, RUSTON $ 3,065.74 $ 30,657.40 $ 50.00 $ 500.00 160 DUGGER,GARY $ 3,163.74 $ 31,637.40 $ 50.00 $ 500.00 140 FOSTER, BILLY D. $ 3,207.35 $ 32,073.50 $ 50.00 $ 500.00 148 FRIEND, JERRY $ 1,970.42 $ 19,704.20 $ 50.00 $ 500.00 161 HANNA, JANICE $ 1,368.59 $ 13,685.90 $ - $ - 145 HANNA, MARK $ 1,368.59 $ 13,685.90 $ %00 $ 500.00 169 HELDER, TIM $ 5,838.12 $ 58,381.20 $ 50.00 $ 500.00 180 HOYT, RICK $ 7,460.01 $ 74,600.10 $ 50.00 $ 500.00 180 HOYT, RICK Plus 25 add pay $ 272.01 $ 2,720.10 146 HUTCHENS, BERNICE $ 1,825.54 $ 18,255.40 $ 50.00 $ 500.00 194 JOHNSON, FRANK $ 7,974.81 $ 79,748.10 $ 50.00 $ 500.00 215 JOHNSON, JOYCE $ 2,455.50 $ 24,555.00 $ 50.00 $ 500.00 103 JOHNSON, WENDELL $ 783.15 $ 7,831.50 $ 50.00 $ 500.00 118 JONES, BOB $ 3,300.45 $ 33,004.50 $ 50.00 $ 500.00 211 JONES, MICHELE $ 1,182.26 $ 11,822.60 144 KILGORE, DONALD $ 2,046.48 $ 20,464.80 $ 50.00 $ 500.00 218 MARTIN, CONNIE $ 3,692.85 $ 36,928.50 $ 50.00 $ 500.00 128 MCCAWLEY, LARRY $ 1,694.79 $ 16,947.90 $ 50.00 $ 500.00 136 MITCHELL, MICHAEL $ 2,305.29 $ 23,052.90 $ 50.00 $ 500.00 158 MUNSON,ANGELA $ 4,198.15 $ 41,981.50 $ 50.00 $ 500.00 112 MURPHY, JAKE $ 405.75 $ 4,057.50 $ 60.00 $ 500.00 137 PERDUE, LARRY $ 2,322.67 $ 23,226.70 $ 50.00 $ 500.00 164 PERSHALL, ROBIN $ 1,525.07 $ 15,250.70 $ - $ - 132 PHILLIPS, HOMER GENE $ 1,754.44 $ 17,544.40 $ 50.00 $ 500.00 199 PRESTON, NORMA J $ 1,601.37 $ 16,013.70 $ 50.00 $ 500.00 135 RICKMAN, LOREN $ 2,231.07 $ 22,310.70 $ 50.00 $ 500.00 214 RIGGINS, BONNIE $ 1,669.37 $ 16,693.70 $ 50.00 $ 500.00 183 ROBERTS, ELDON $ 4,263.24 $ 42,632.40 $ 50.00 $ 500.00 183 ROBERTS, ELDON Plus 25 add pay $ 567.09 $ 5,870.90 $ - $ - 212 ROBERTS, CAROLYN K $ 3,216.13 $ 32,161.30 $ - 212 ROBERTS, CAROLYN K Plus 25 add pay $ 442.89 $ 4,428.90 $ - 159 SCHUSTER,JOHN H. $ 3,117.36 $ 31,173.60 $ 50.00 $ 500.00 168 STANLEY, MELVIN $ 4,880.07 $ 48,800.70 $ 50.00 $ 500.00 133 SURLES, JERRY $ 2,721.40 $ 27,214.00 $ 50.00 $ 500.00 142 TAYLOR, DENNIS $ 2,063.93 $ 20,639.30 $ 50.00 $ 500.00 163 WATSON, RICHARD $ 6,947.05 $ 69,470.50 $ 50.00 $ 500.00 163 Watson, Richard Plus 25 Add'1 Pay $ 948.76 $ 9,487.60 $ - $ - 149 WILLIAMS, JOYCE $ 2,539.66 $ 25,396.60 $ 50.00 $ 500.00 195 WITT, BETTY J $ 1,766.83 $ 17,668.30 $ 50.00 $ 500.00 213 WOOD, RUTHIE $ 1,580.93 $ 15,809.30 $ 50.00 $ 500.00 $ 122620.28 $ 1,249,464.56 $1,900.00 $ 19,450.00 $ Policemen's Pension and Relief Fund POLICE PENSION FUND 11 11 11 11 Octdder 15, 2015 November 2015 8500-9880 680x9800 Page 34 of 42 Month 11 Regular Mo s3a15-00 533x05 11 EMP# NAME Benefit YTD Reg Benefit Suppl. YTD Suppl. Future Supple 154 ALLEN, CHARLES deceased 9/25/2015 $ - $ 23,261.76 $ - $ 450.00 206 BAYLES, BOBBI J $ 1,587.41 $ 17,461.51 $ 50.00 $ 550.00 216 BLACK, MILDRED $ 1,125.64 $ 12,382.04 $ 50.00 $ 550.00 147 BRADLEY, GERALD $ 4,820.09 $ 53,020.99 $ 50.00 $ 550.00 139 BRADLEY, RANDALL $ 2,860.17 $ 31,461.87 $ 50.00 $ 550.00 167 BROWN, JOHN $ 4,362.01 $ 47,982.11 $ 50.00 $ 550.00 157 CARROLL,RONALD L $ 2,106.04 $ 23,166.44 $ 50.00 $ 550.00 151 COLE, RUSTON $ 3,065.74 $ 33,723.14 $ 50.00 $ 550.00 160 DUGGER,GARY $ 3,163.74 $ 34,801.14 $ 50.00 $ 550.00 140 FOSTER, BILLY D. $ 3,207.35 $ 35,280.85 $ 50.00 $ 550.00 148 FRIEND, JERRY $ 1,970.42 $ 21,674.62 $ 50.00 $ 550.00 161 HANNA, JANICE $ 1,368.59 $ 15,054.49 $ - $ - 145 HANNA, MARK $ 1,368.59 $ 15,064.49 $ 50.00 $ 550.00 169 HELDER, TIM $ 5,838.12 $ 64,219.32 $ %00 $ 550.00 180 HOYT, RICK $ 7,460.01 $ 82,060.11 $ 50.00 $ 550.00 180 HOYT, RICK Plus 25 add pay $ 272.01 $ 2,992.11 146 HUTCHENS, BERNICE $ 1,825.54 $ 20,080.94 $ 50.00 $ 550.00 194 JOHNSON, FRANK $ 7,974.81 $ 87,722.91 $ 50.00 $ 550.00 215 JOHNSON, JOYCE $ 2,455.50 $ 27,010.50 $ 50.00 $ 550.00 103 JOHNSON, WENDELL $ 783.15 $ 8,614.65 $ 50.00 $ 650.00 118 JONES, BOB $ 3,300.45 $ 36,304.95 $ 50.00 $ 550.00 211 JONES, MICHELE $ 1,182.26 $ 13,004.86 144 KILGORE, DONALD $ 2,046.48 $ 22,511.28 $ 50.00 $ 550.00 218 MARTIN, CONNIE $ 3,692.85 $ 40,621.35 $ 50.00 $ 550.00 128 MCCAWLEY, LARRY $ 1,694.79 $ 18,642.69 $ 50.00 $ 550.00 136 MITCHELL, MICHAEL $ 2,305.29 $ 25,358.19 $ 50.00 $ 550.00 168 MUNSON,ANGELA $ 4,198.15 $ 46,179.65 $ 50.00 $ 550.00 112 MURPHY, JAKE $ 405.75 $ 4,463.25 $ 50.00 $ 550.00 137 PERDUE, LARRY $ 2,322.67 $ 25,549.37 $ 50.00 $ 550.00 164 PERSHALL, ROBIN $ 1,525.07 $ 16,775.77 $ - $ - 132 PHILLIPS, HOMER GENE $ 1,754.44 $ 19,298.84 $ 50.00 $ 550.00 199 PRESTON, NORMA J $ 1,601.37 $ 17,615.07 $ 50.00 $ 550.00 135 RICKMAN, LOREN $ 2,231.07 $ 24,541.77 $ 50.00 $ 550.00 214 RIGGINS, BONNIE $ 1,669.37 $ 18,363.07 $ 50.00 $ 550.00 183 ROBERTS, ELDON $ 4,263.24 $ 46,895.64 $ 50.00 $ 550.00 183 ROBERTS, ELDON Plus 25 add pay $ 587.09 $ 6,457.99 $ - $ - 212 ROBERTS, CAROLYN K $ 3,216.13 $ 35,377.43 $ - 212 ROBERTS, CAROLYN K Plus 25 add pay $ 442.89 $ 4,871.79 $ - 159 SCHUSTER,JOHN H. $ 3,117.36 $ 34,290.96 $ 50.00 $ 550.00 168 STANLEY, MELVIN $ 4,880.07 $ 53,680.77 $ 50.00 $ 550.00 133 SURLES, JERRY $ 2,721.40 $ 29,935.40 $ 50.00 $ 550.00 142 TAYLOR, DENNIS $ 2,063.93 $ 22,703.23 $ 50.00 $ 550.00 163 WATSON, RICHARD $ 6,947.05 $ 76,417.55 $ 50.00 $ 550.00 163 Watson, Richard Plus 25 Add'I Pay $ 948.76 $ 10,436.36 $ - $ - 149 WILLIAMS, JOYCE $ 2,539.66 $ 27,936.26 $ 50.00 $ 550.00 195 WITT, BETTY J - $ 1,766.83 $ 19,435.13 $ 50.00 $ 550.00 213 WOOD, RUTHIE $ 1,580.93 $ 17,390.23 $ 50.00 $ 550.00 $ 122,620.28 $ 1,372,084.84 $1,900.00 $ 21,350.00 $ Policemen's Pension and Relief Fund POLICE PENSION FUND 12 12 12 12 OctQer 15, 2015 December 2015 6800-9800 68009800 Page 35 of 42 Month 12 Regular Mo 5335-00 5335-05 12 EMP# NAME Benefit YTD Reg Benefit Suppl. YTD Suppl. Future Supple 154 ALLEN, CHARLES deceased 9/25/2015 $ - $ 23,261.76 $ - $ 450.00 206 BAYLES, BOBBI J $ 1,587.41 $ 19,048.92 $ 50.00 $ 600.00 216 BLACK, MILDRED $ 1,125.64 $ 13,507.68 $ 50.00 $ 600.00 147 BRADLEY, GERALD $ 4,820.09 $ 57,841.08 $ 50.00 $ 600.00 139 BRADLEY, RANDALL $ 2,860.17 $ 34,322.04 $ 50.00 $ 600.00 167 BROWN, JOHN $ 4,362.01 $ 52,344.12 $ 50.00 $ 600.00 157 CARROLL,RONALD L $ 2,106.04 $ 25,272.48 $ 50.00 $ 600.00 151 COLE, RUSTON $ 3,065.74 $ 36,788.88 $ 50.00 $ 600.00 160 DUGGER,GARY $ 3,163.74 $ 37,964.88 $ 50.00 $ 600.00 140 FOSTER, BILLY D. $ 3,207.35 $ 38,488.20 $ 50.00 $ 600.00 148 FRIEND, JERRY $ 1,970.42 $ 23,645.04 $ 50.00 $ 600.00 161 HANNA, JANICE $ 1,368.59 $ 16,423.08 $ - $ - 145 HANNA, MARK $ 1,368.59 $ 16,423.08 $ 60.00 $ 600.00 169 HELDER, TIM $ 5,838.12 $ 70,057.44 $ 50.00 $ 600.00 180 HOYT, RICK $ 7,460.01 $ 89,520.12 $ 50.00 $ 600.00 180 HOYT, RICK Plus 25 add pay $ 272.01 $ 3,264.12 146 HUTCHENS, BERNICE $ 1,825.54 $ 21,906.48 $ 50.00 $ 600.00 194 JOHNSON, FRANK $ 7,974.81 $ 95,697.72 $ 50.00 $ 600.00 215 JOHNSON, JOYCE $ 2,455.50 $ 29,466.00 $ 50.00 $ 600.00 103 JOHNSON, WENDELL $ 783.15 $ 9,397.80 $ 50.00 $ 600.00 118 JONES, BOB $ 3,300.45 $ 39,605.40 $ 50.00 $ 600.00 211 JONES, MICHELE $ 1,182.26 $ 14,187.12 144 KILGORE, DONALD $ 2,046.48 $ 24,557.76 $ 50.00 $ 600.00 218 MARTIN, CONNIE $ 3,692.85 $ 44,314.20 $ 50.00 $ 600.00 128 MCCAWLEY, LARRY $ 1,694.79 $ 20,337.48 $ 50.00 $ 600.00 136 MITCHELL, MICHAEL $ 2,305.29 $ 27,663.48 $ 50.00 $ 600.00 158 MUNSON,ANGELA $ 4,198.15 $ 50,377.80 $ 50.00 $ 600.00 112 MURPHY, JAKE $ 405.75 $ 4,869.00 $ 50.00 $ 600.00 137 PERDUE, LARRY $ 2,322.67 $ 27,872.04 $ 50.00 $ 600.00 164 PERSHALL, ROBIN $ 1,525.07 $ 18,300.84 $ - $ - 132 PHILLIPS, HOMER GENE $ 1,754.44 $ 21,053.28 $ 50.00 $ 600.00 199 PRESTON, NORMA J $ 1,601.37 $ 19,216.44 $ 50.00 $ 600.00 135 RICKMAN, LOREN $ 2,231.07 $ 26,772.84 $ 50.00 $ 600.00 214 RIGGINS, BONNIE $ 1,669.37 $ 20,032.44 $ 50.00 $ 600.00 183 ROBERTS, ELDON $ 4,263.24 $ 51,156.88 $ 50.00 $ 600.00 183 ROBERTS, ELDON Pius 25 add pay $ 587.09 $ 7,045.08 $ - $ - 212 ROBERTS, CAROLYN K $ 3,216.13 $ 38,593.56 $ - 212 ROBERTS, CAROLYN K Plus 25 add pay $ 442.89 $ 5,314.68 $ - 159 SCHUSTER,JOHN H. $ 3,117.36 $ 37,408.32 $ 50.00 $ 600.00 168 STANLEY, MEL%AN $ 4,880.07 $ 58,560.84 $ 50.00 $ 600.00 133 SURLES, JERRY $ 2,721.40 $ 32,656.80 $ 50.00 $ 600.00 142 TAYLOR, DENNIS $ 2,063.93 $ 24,767.16 $ 50.00 $ 600.00 163 WATSON, RICHARD $ 6,947.05 $ 83,364.60 $ 50.00 $ 600.00 163 Watson, Richard Plus 25 Add? Pay $ 948.76 $ 11,385.12 $ - $ - 149 WILLIAMS, JOYCE $ 2,539.66 $ 30,475.92 $ 50.00 $ 600.00 195 WITT, BETTY $ 1,766.83 $ 21,201.96 $ 50.00 $ 600.00 213 WOOD, RUTHIE $ 1,580.93 $ 18,971.16 $ 50.00 $ 600.00 $ 122,620.28 $ 1,494,705.12 $1,900.00 $ 23,250.00 $ Policemen's Pension and Relief Fund POLICE PENSION FUND October 15, 2015 January2016 6800-9800 68005800 Page 36 of 42 Month 1 Regular Mo 533500 5335-05 1 EMP# NAME Benefit YTD Reg Benefit Suppl. YTD Suppl. Future Supple 206 BAYLES, BOBBI J $ 1,587.41 $ 1,587.41 $ 50.00 $ 50.00 216 BLACK, MILDRED $ 1,125.64 $ 1,125.64 $ 50.00 $ 50.00 147 BRADLEY, GERALD $ 4,820.09 $ 4,820.09 $ 50.00 $ 50.00 139 BRADLEY, RANDALL $ 2,860.17 $ 2,860.17 $ 50.00 $ 50.00 167 BROWN, JOHN $ 4,362.01 $ 4,362.01 $ 50.00 $ 50.00 157 CARROLL,RONALD L $ 2,106.04 $ 2,106.04 $ 50.00 $ 50.00 151 COLE, RUSTON $ 3,065.74 $ 3,065.74 $ 50.00 $ 50.00 160 DUGGER,GARY $ 3,163.74 $ 3,163.74 $ 50.00 $ 50.00 140 FOSTER, BILLY D. $ 3,207.35 $ 3,207.35 $ 50.00 $ 50.00 148 FRIEND, JERRY $ 1,970.42 $ 1,970.42 $ 50.00 $ 50.00 161 HANNA, JANICE $ 1,368.59 $ 1,368.59 $ - $ - 145 HANNA, MARK $ 1,368.59 $ 1,368.59 $ 50.00 $ 50.00 169 HELDER, TIM $ 5,838.12 $ 5,838.12 $ 50.00 $ 50.00 180 HOYT, RICK $ 7,460.01 $ 7,460.01 $ 50.00 $ 50.00 180 HOYT, RICK Plus 25 add pay $ 272.01 $ 272.01 146 HUTCHENS, BERNICE $ 1,825.54 $ 1,825.54 $ 50.00 $ 50.00 194 JOHNSON, FRANK $ 7,974.81 $ 7,974.81 $ 50.00 $ 50.00 215 JOHNSON, JOYCE $ 2,455.50 $ 2,455.50 $ 50.00 $ 50.00 103 JOHNSON, WENDELL $ 783.15 $ 783.15 $ 50.00 $ 50.00 118 JONES, BOB $ 3,300.45 $ 3,300.45 $ 50.00 $ 50.00 211 JONES, MICHELE $ 1,182.26 $ 1,182.26 144 KILGORE, DONALD $ 2,046.48 $ 2,046.48 $ 50.00 $ 50.00 218 MARTIN, CONNIE $ 3,692.85 $ 3,692.85 $ 50.00 $ 50.00 128 MCCAWLEY, LARRY $ 1,694.79 $ 1,694.79 $ 50.00 $ 50.00 136 MITCHELL, MICHAEL $ 2,305.29 $ 2,305.29 $ 50.00 $ 50.00 158 MUNSON,ANGELA $ 4,198.15 $ 4,198.15 $ 50.00 $ 50.00 112 MURPHY, JAKE $ 405.75 $ 405.75 $ 50.00 $ 50.00 137 PERDUE, LARRY $ 2,322.67 $ 2,322.67 $ 50.00 $ 50.00 164 PERSHALL, ROBIN $ 1,525.07 $ 1,525.07 $ - $ - 132 PHILLIPS, HOMER GENE $ 1,754.44 $ 1,754.44 $ 50.00 $ 50.00 199 PRESTON, NORMAJ $ 1,601.37 $ 1,601.37 $ 50.00 $ 50.00 135 RICKMAN, LOREN $ 2,231.07 $ 2,231.07 $ 50.00 $ 50.00 214 RIGGINS, BONNIE $ 1,669.37 $ 1,669.37 $ 50.00 $ 50.00 183 ROBERTS, ELDON $ 4,263.24 $ 4,263.24 $ 50.00 $ 50.00 183 ROBERTS, ELDON Plus 25 add pay $ 587.09 $ 587.09 $ - $ - 212 ROBERTS, CAROLYN K $ 3,216.13 $ 3,216.13 $ - 212 ROBERTS, CAROLYN K Plus 25 add pay $ 442.89 $ 442.89 $ - 159 SCHUSTER,JOHN H. $ 3,117.36 $ 3,117.36 $ 50.00 $ 50.00 168 STANLEY, MELVIN $ 4,880.07 $ 4,880.07 $ 50.00 $ 50.00 133 SURLES, JERRY $ 2,721.40 $ 2,721.40 $ 50.00 $ 50.00 142 TAYLOR, DENNIS $ 2,063.93 $ 2,063.93 $ 50.00 $ 50.00 163 WATSON, RICHARD $ 6,947.05 $ 6,947.05 $ 50.00 $ 50.00 163 Watson, Richard Plus 25 Add1 Pay $ 948.76 $ 948.76 $ - $ - 149 WILLIAMS, JOYCE $ 2,539.66 $ 2,539.66 $ 50.00 $ 50.00 195 WITT, BETTY J $ 1,766.83 $ 1,766.83 $ 50.00 $ 50.00 213 WOOD, RUTHIE $ 1,580.93 $ 1,580.93 $ 50.00 $ 50.00 Turnback 2015 Per the General Ledger these are the amounts we received from LOPFI for insurance turnback-- We received the following insurance turnback funds for the old police and fire pension funds: For 2015 Fire and Police both received two checks. The "first round" allocation and the additional allocation are listed above 2015 Distribution 2014 2013 2012 2011 Police $120,510.66 $ 120,410.00 $142,151.31 $138,410.77 $ 205,694.53 $ Police additional allocation $ 40,170.22 $ 32,109.00 10 $11,100.00 Spouse Regular Police Future Supplement $ 43,290.00 $ 44,280.00 $ 46,620.00. $ 55,575.00 $ 36,450.00 $ Police Supplement $ 23,400.00 $ 24,600.00 $ 25,200.00 $ 27,000.00 $ 27,000.00 $ For 2015 Fire and Police both received two checks. The "first round" allocation and the additional allocation are listed above S Betty Jean Stout Deceased 12/30/14 D Rosemary Muller Deceased 11/16/14 Policemen's Pension and Relief Fund October 15, 2015 Page 37 of 42 2010 2009 2008 213,357.83 $ 214,429.30 $ 186,429.42 26,061.50 $ 38,350.00 $ 41,370.00 28,200.00 $ 30,000.00 $ 30,000.00 K:\Police Pension\Turnback & Suplemental Benefits\2015 Police Pension Supplement\Turnback Funds from State 2015 7/31/2015 tl Amount per Distribution Number of Amount Pensioner Pensioners Regular Retirees $1,110.00 Lump Sum 19 $21,090.00 Disabled Retirees $1,110.00 Lump Sum 10 $11,100.00 Spouse Regular $1,110.00 Lump Sum 10 $11,100.00 QDRO $0.00 4 $0.00 43 $43,290.00 Police Supplement Regular $50.00 Monthly 29 $17,400.00 Spouse Regular $50.00 Monthly 10 $6,000.00 QDRO $0.00 Monthly 4 $0.00 43 $23,400.00 S Betty Jean Stout Deceased 12/30/14 D Rosemary Muller Deceased 11/16/14 Policemen's Pension and Relief Fund October 15, 2015 Page 37 of 42 2010 2009 2008 213,357.83 $ 214,429.30 $ 186,429.42 26,061.50 $ 38,350.00 $ 41,370.00 28,200.00 $ 30,000.00 $ 30,000.00 K:\Police Pension\Turnback & Suplemental Benefits\2015 Police Pension Supplement\Turnback Funds from State 2015 7/31/2015 tl Policemen's Pension and Relief Fund October 15, 2015 Page 38 of 42 Book Value Total Reserve Assets * $ 6,295,521.31 $ 6,653,793.10 $ 6,682,459.70 $ 7,081,891.04 $ 7,468,021.86 $ 7,785,041.00 $ 7,950,215.00 $ 8,398,199.00 $ 9,880,601.00 $ 10,104,083.00 Market Value Total Reserve Assets * $ 6,089,762.77 $ 7,030,014.20 $ 7,443,057.63 $ 7,689,491.43 $ 8,158,105.82 $ 8,555,897.00 $ 8,360,804.00 $ 8,046,356.00 $ 10,819,789.00 $ 10,891,530.00 "Assets less any liabilities Market Value calculated at year end 10/14/2015 K:\Police Pension\Revenue 8 Expense Summary\2015 PP Revenue Expense Summary\Revenue and Expense Report 093015 Police Pension Fund Revenue Expense Summary Policemen's Pension and Relief Fund October 15, 2015 9/30/2015 2014 2013 2012 2011 2010 2009 2008 2007 Page 3908G42 Revenues: Employee Contributions $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 4,139.00 Employer Contributions $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 8,278.00 Stale Insurance Tax $ 160,680.88 $ 152,519.00 $ 142,151.31 $ 138,410.77 $ 205,694.53 $ 213,357.83 $ 214,429.30 $ 186,429.42 $ 190,192.00 $ 226,826.00 Local Millage (A mills) $ 275,222.68 $ 525,620.07 $ 494,749.58 $ 511,961.22 $ 498,380.57 $ 508,192.07 $ 485,345.06 $ 441,696.50 $ 388,877.00 $ 370,649.00 10% City Fines and Forfeitures $ 100,184.55 $ 101,595.92 $ 112,992.59 $ 125,274.87 $ 126,045.40 $ 130,723.07 $ 123,653.64 $ 131,583.83 $ 106,385.00 $ 119,147.00 Sale of Confiscated Goods $ 4,068.81 $ 5,367.25 $ 1,898.28 $ 3,491.81 $ 5,026.40 $ 5,487.59 $ 9,732.16 $ 7,715.61 $ 10,806.00 $ 6,343.00 Interest and Dividends $ 129,406.80 $ 250,152.16 $ 263,480.49 $ 285,514.18 $ 263,520.02 $ 267,714.80 $ 256,907.42 $ 359,998.26 $ 356,699.00 $ 373,776.00 Gain (Loss) on Sales $ 122,520.56 $ 513,762.17 $ 160,066.59 $ 168,288.38 $ 209,001.15 $ 362,318.64 $ 153,193.23 $ (885,460.76) $ 395,378.00 $ 420,298.00 Police Supplement $ 35,100.00 $ 37,200.00 $ 37,800.00 $ 39,900.00 $ 40,500.00 $ 42,000.00 $ 31,200.00 $ 30,000.00 $ 30,000.00 $ 30,300.00 Future Supplement $ 43,290.00 $ 44,280.00 $ 46,620.00 $ 55,575.00 $ 36,450.00 $ 26,061.50 $ 38,350.00 $ 41,370.00 $ 86,040.00 $ 60,060.00 Misc Revenue $ 2.00 $ - $ 195.77 $ 53.39 $ 104.60 $ 1,561.27 $ 5,757.99 $ 161.46 $ 907.00 $ 1,126.00 Total Revenue $ 870,476.28 $ 1,630,496.57 $ 1,259,954.61 $ 1,328,469.62 $ 1,384,722.67 $ 1,557,416.77 $ 1,318,568.80 $ 313,494.32 $ 1,565,284.00 $ 1,620,942.00 Expenditures Regular Monthly Benefits $ 1,126,844.28 $ 1,533,945.72 $ 1,535,372.30 $ 1,551,087.50 $ 1,564,986.62 $ 1,582,900.00 $ 1,628,521.36 $ 1,638,067.76 $ 1,581,319.00 $ 1,456,466.00 Police Supplement $ 17,550.00 $ 24,550.00 $ 24,650.00 $ 25,500.00 $ 26,400.00 $ 27,250.00 $ 29,300.00 $ 30,000.00 $ 30,000.00 $ 29,600.00 Future Supplement $ 43,290.00 $ 44,280.00 $ 45,510.00 $ 51,870.00 $ 35,640.00 $ 24,952.50 $ 36,816.00 $ 41,370.00 $ 86,040.00 $ 60,060.00 Investment Manager Fees $ 25,834.02 $ 56,395.86 $ 66,240.45 $ 69,500.53 $ 71,050.23 $ 70,369.02 $ 68,150.57 $ 82,754.75 $ 87,712.00 $ 86,243.00 Other Expenses: $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Office Supplies/printing $ - $ 51.52 $ 56.81 $ 46.20 $ - $ - $ 84.00 $ - $ - $ - Audit Fees $ 3,500.00 $ 3,500.00 $ 3,400.00 $ 3,600.00 $ 3,500.00 $ 3,500.00 $ 3,500.00 $ 3,500.00 $ 3,500.00 $ 3,300.00 Professional Services $ - $ 103.75 $ - $ - $ - $ - $ - $ - $ - $ - Legal Fees $ - $ - $ - $ - $ - $ - $ - $ - $ 1,025.00 Bank Fees $ 29.77 $ 77.18 $ 99.10 $ 89.83 $ 164.48 $ 119.34 $ 181.69 $ 203.21 $ 195.00 $ 156.00 Total Expenses $ 1,217,048.07 $ 1,662,904.03 $ 1,675,328.66 $ 1,701,694.06 $ 1,701,741.33 $ 1,709,090.86 $ 1,766,553.62 $ 1,795,895.72 $ 1,788,766.00 $ 1,636,850.00 Net Income (Loss) Before Market Adj *** $ (346,571.79) $ (32,407.46) $ (415,374.05) $ (373,224.44) $ (317,018.66) $ (151,674.09) $ (447,984.82) $ (1,482,401.40) $ (223,482.00) $ (15,908.00) Market Adjustment $ - $ (355,917.05) $ 95,442.84 $ (13,498.87) $ (687.82) $ 360,267.86 $ 762,432.96 $ (1,291,031.77) $ 151,740.00 $ 344,973.00 Net Income (Loss) $ (346,571.79) $ (388,324.51) $ (319,931.21) $ (386,723.31) $ (317,706.48) $ 208,593.77 $ 314,448.14 $ (2,773,433.17) $ (71,742.00) $ 329,065.00 Book Value Total Reserve Assets * $ 6,295,521.31 $ 6,653,793.10 $ 6,682,459.70 $ 7,081,891.04 $ 7,468,021.86 $ 7,785,041.00 $ 7,950,215.00 $ 8,398,199.00 $ 9,880,601.00 $ 10,104,083.00 Market Value Total Reserve Assets * $ 6,089,762.77 $ 7,030,014.20 $ 7,443,057.63 $ 7,689,491.43 $ 8,158,105.82 $ 8,555,897.00 $ 8,360,804.00 $ 8,046,356.00 $ 10,819,789.00 $ 10,891,530.00 "Assets less any liabilities Market Value calculated at year end 10/14/2015 K:\Police Pension\Revenue 8 Expense Summary\2015 PP Revenue Expense Summary\Revenue and Expense Report 093015 Policemen's Pension and Relief Fund October 15, 2015 Page 40 of 42 Policemen's Pension and Relief Fund October 15, 2015 Page 41 of 42 Policemen's Pension and Relief Board of Trustees Third Thursday of the First Month of each Quarter 3:00 p.m. City Administration Room 326 January 21, 2016 April 21, 2016 July 21, 2016 October 20, 2016 Policemen's Pension and Relief Fund October 15, 2015 Page 42 of 42