HomeMy WebLinkAbout2007-06-28 - Agendas - Final Fayetteville Fireman's Pension and Relief Fund
Meeting Date IC4 ng , ��
r djourn Time 1 , d 7 .
Attendees:
C) C& 2
A30
5
Subject: a 7 Subject: e
Motion To: l U Motion To: TALI Q
Motion By: Motion By:
Seconded: Seconded:
Mayor Cood Mayor Cood
Marion Doss Marion Doss
Marshall Mahan Marshall Mahan
Pete Reagan Pete Reagan
ie Warford Gene Warford
Ronnie Wood Ronnie Wood
Sondra Smith Sondra Smith Abc
Subject: ` L. Subject: alio
Motion To: Motion To:
Motion By: Motion By:
a
Seconded: Seconded:
Uf
MayorCoody Mayor Cood
Marion Doss Marion Doss
Marshall Mahan Marshall Mahan
Pete Reagan ✓ Pete Reagan
Gene Warford Gene Warford
Ronnie Wood Ronnie Wood
Sondra Smith Sondra Smith
Firemen's Pension and Relief Fund
Meeting Agenda
June 28, 2007
A meeting of the Fayetteville Firemen's Pension and Relief Fund will be held at 11 :00 AM
on June 28, 2007 in Room 326 of the City Administration Building.
1. Approval of the Minutes:
• May 24, 2007 Meeting Minutes
2. Approval of the Pension List:
• July, 2007 Pension List — Jennie Hope Lane who deceased.
3. Old Business:
• Pension Protection Act (Tabled from the May 24, 2007 meeting.)
4. New Business:
• Jennie Hope Lane deceased — June 26, 2007
• Election Results: Ronnie Wood and Gene Warford have been elected.
5. Longer Investments:
• Equity Allocation Overage Report
• Monthly Report
• Longer View
Firemen's Pension and Relief Fund Board of Trustees
Meeting Minutes
May 24,2007
Page 1 of 5
Firemen's Pension and Relief Fund
Meeting Minutes
May 24, 2007
A meeting of the Fayetteville Firemen's Pension and Relief Fund was held at 11 :00 AM on May
24, 2007 in Room 326 of the City Administration Building
Mayor Coody called the meeting to order.
Present: Mayor Coody, Marion Doss, Pete Reagan, Ronni ood, City Clerk Sondra
Smith, City Attorney Kit Williams, Chief Johnson, Paul Be er; a Amber Wood.
Absent: Gene Warford, Marshall E. Mahan
Approval of the April 26, 2007 Meeting Minutes' rtI Rol
-
�,
Marion Doss moved to approve the April 26, 2007 Mee m Minutes. Pete Reagan seconded
the motion. Upon roll call the motions assed 4-0. Genre arford and Marshall E. Mahan
A ,� z^
were absent. Ronnie Wood was absent urmg the vote
E��rY
/l /
01
Approval of the Pension List: %y
sxv
Approval of the June,,,A/',, 07 P "sign List — No changes
MR
There were no chano he�pensan list
ges
nVs
�"y a INDW a � a \
Pete Reaga �,o��e,� �to app�ropve the June,X2007 Pension List. Marion Doss seconded the
motion. 17pon roll ca mot massed 4-0. Gene Warford and Marshall E. Mahan were
abse onnie Wood bsen g the vote.
r
u
Old Business s'
Dennis Mullens ret en Classification
Mayor Coody: Is this the gentleman that wants to reclassify to disabled?
Sondra Smith: Yes.
Pete Reagan: I will make a motion to table. Dennis was not able to be here and his accountant
is out of town.
Mayor Coody: This will be the third or fourth time to table this?
Firemen's Pension and Relief Fund Board of Trustees
Meeting Minutes
May 24,2007
Page 2 of 5
Marion Doss: We changed the date for the last meeting it's normally the last Thursday of the
month.
Pete Reagan moved to table to the July meeting. Marion Doss seconded the motion. Upon
roll call the motion passed 4-0. Gene Warford and Marshall E. Mahan were absent. Ronnie
Wood was absent during the vote.
Pension Protection Act Tabled from the March 29 2007 meetin .
Mayor Coody: This is that deal where we would have to have re staff to do the work that
needs to be done or else charge the fund. We can't charge th ince it doesn't have the
money in it. How does that work again refresh my memory %y' "`%y;,T
Al
Z �e,
Kit Williams: This would be for individual members,. �e` und would no aE ; aying.
Mayor Coody: If the fund doesn't pay then we ave to re more staff? INO
r
Paul Becker: The fact of the matter is we don't have staf '
ccommodate this.
DFyi`P.L2F
Mayor Coody: If this is the case why dt , eep tabling thi 1 is dust go ahead and vote on
this. n' 0
F •h
Pete Reagan: With all do respect Mr. Ch's rm� ' 4 e o = Yt ow how many folks will take
advantage of this. We are '_"< E �xocess of fin that out. here was a retirees meeting in the
last month and we had very fe ow up dot scheduling conflicts. We are in the process of
trying to find out wlo ' tereste d how many ° ould take this option.
Mayor Coody: ,And woul t � � y o cover the staff time?
Paul Be er: The fac \f,the rr r is that we don't have staff time to do it. I did approach
peop e y .see if they wa E H to WO ional hours and no one was interested in doing that.
We oe staff to accn odate ,' at this point.
Marion Doss. ve we eve got the Act in black and white to read and see what it actually
says?
Sondra Smith: We go. e proposed Act from NCPERS months ago.
Pete Reagan: That was what they thought the guide lines from the IRS would say.
Sondra Smith: Right.
Pete Reagan: The actual Act I don't know about.
Mayor Coody: Are we going to get it? Do we have to have it or what?
Firemen's Pension and Relief Fund Board of Trustees
Meeting Minutes
May 24,2007
Page 3 of 5
Paul Becker: I will see if I can obtain a copy.
Mayor Coody: Okay.
Pete Reagan moved to table this item. Marion Doss seconded the motion. Upon roll call the
motion passed 5-0. Gene Warford and Marshall E. Mahan were absent.
New Business:
Summary of the 2007 Legislative Session
f fir,
Sondra Smith: This is a summary of House Bills and Acts t will a the pension plans.
L�
ugh it and come
Mayor Coody: Is there any discussion on that or do :amu W, to just read t= g
back next meeting and discuss anything. Since the ssion is over there's no ch e can do
about it anyway it's just an update.
Sondra Smith: One thing I wanted to bring to everyon ention on the Police Pension they
are allowing widows to vote in the elects® S.
Kit Williams: Which one is that? sy ,
Sondra Smith: Act 611 Allowing survivingg, pos�tuy ate wring the election of local board
members. It also allows t Nis
to fill a vat y for the':Reminder of the term. So we really
need to read through aphis. \ s�for closed pension plans.
��s \ ` E
Marion Doss: It says rt�c yes not cJ ge the closed`dire plans.
Sondra S 't ut they ht be ture.
May foody: It won' ct an e are talking about.
Sondra Sm" Just on the I g;ice Pension.
� 3js
Reschedule June Meet>In
Sondra Smith: That is the meeting when the elevator is going to be down and we were
wondering if the board wanted to reschedule the meeting.
Mayor Coody: The firemen can't use the stairs?
Sondra Smith: Dennis Mullens might come that might be an issue.
Mayor Coody: When is the June date? I will be gone for about half of June.
Firemen's Pension and Relief Fund Board of Trustees
Meeting Minutes
May 24, 2007
Page 4 of 5
Sondra Smith: It is June 28th. I won't be here and you won't be here. Amber can attend the
meeting if they so choose to go ahead and have one.
Kit Williams: The elevator will be out then?
Sondra Smith: Yes and Room 111 is already booked.
Marion Doss: I don't think any of the board members have any problems walking the stairs. If
we had a retiree that wanted to come they might.
Pete Reagan: Chief what about your conference room?
ry z�f
1y"
Chief Johnson: You're welcome to use the conference roo
�r
141,110111111 11 OSI �Vi4' %
Pete Reagan: How many would that fit?
Chief Johnson: I can get 10 in there comfortably>�
Kit Williams: Is that over at the Central Fire Station on floor?
z
Chief Johnson: Yes, 1" floor. I can in vailable.
Om
Mayor Coody: There are nine of us in her sigh >ghtbe kind of tight.
/ yin/r`Zr/s'�s� <
`wyazn`� r��Jy
Chief Johnson: I would o have more"fan ten.
Sondra Smith: Ywelco b use this room, its just if anyone comes that cant do the
ter; ii
stairs.
Y b S2
Kit Willia e can' over going to be on the third floor anyway.
Ronn. , ood: Is it like l ,fiat De «ght come?
Kit Willie can't use i ; stairs?
Pete Reagan: has di T nished lung capacity.
�Zy
Sondra Smith: That r ; e reason I was concerned about him taking three flights of stairs.
Marion Doss: Is there anything else down stairs other than Room 111?
Pete Reagan: What about 219?
Kit Williams: He still has one flight to get up there. Why don't we table his item for two
months so that he is not expected to come in June when we won't have the elevator?
Pete Reagan: So move.
Firemen's Pension and Relief Fund Board of Trustees
Meeting Minutes
May 24,2007
Page 5 of 5
Sondra Smith: Move Dennis to the July agenda.
Mayor Coody: So we will leave the June meeting as it is?
Kit Williams: Yes.
Longer Investments
h
Monthly Report
Pete Reagan: We have to approve the increase.
r
Sondra Smith: Yes, you do.
Pete Reagan moved to approve the equity oveagea on Wo{ d seconded the o ion. Upon
roll call the motion passed 5-0. Gene Warford and a h = E IYIahan weresent.
Informational y
Marion Doss: Kit, have you had a chance to look o e se Acts That Sondra attached.
Kit Williams: No, I hay �t%i 3
i /� „
00
Sondra Smith: I j> s: r'w eived th s,;j so he has not ad a chance to look at them.
Pete Reagan: Kit if your ' g � \ \,yecance to look at them, would you look at Act
218. E%;
` Via/
Kit W, . 'ams: Alright. gomg � o the Municipal League Convention in June and they
are goin � o over all o R a e Act d probably hand them out. I haven't actually got these
Acts yet e ough we app,=: d for the Act service. The most recent ones that I have are the
ones they did i , . 05.
Sondra Smith: I own there too. We won't be able to discuss them in June unless you
are here but we can in
Meeting Adjourned at 11:15 AM
FIREMEN'S RELIEF AND PENSION
July 2007 7
THE FOLLOWING ARE THE OBLIGATIONS OF THE FIREMEN'S RELIEF FUND FOR THE MONTH LISTED ABOVE
YOU ARE HEREBY INSTRUCTED TO ISSUE CHECKS TO THE PAYEES, IN THE AMOUNTS SHOWN ,
AND FOR THE PURPOSE SO STATED.
DATE OF Regular Mo Year To Date
EMP# RETIREMENT NAME Benefit Reg Benefit
Q 79 11/99 ARMSTRONG (DILL), PAMELA 1,812.74 12,689.18
R 177 4/04 BACHMAN, EDDIE 2,618.55 18,329.85
S 74 3/86 BAIRD, JULIA 1,802.08 12,614.56
V 63 5/72 BOLAIN, ANN 109.27 764.89
R 68 7/99 BONADUCE, MICHAEL 2,988.76 20,921.32
S 44 9/86 BOUDREY, BETTY MRS. 2,477.42 17,341.94
R 45 9/86 BOUDREY, HOWARD 2,089.28 14,624.96
R 49 7/88 BOUDREY, JACK 1,647.63 11,533.41
V 5 5/72 CASELMAN, ARTHUR 131.13 917.91
R 57 5/90 CATE, ROY 1,788.90 12,522.30
V 6 4/68 CHRISTIE, ARNOLD 109.27 764.89
V 8 10/76 COUNTS, WAYNE 109.27 764.89
R 77 11/99 DILL,GARY JOHN 1,812.75 12,689.25
188 12/05 DOSS, MARION H 5,376.91 37,638.37
R 11 2/76 FARRAR,ALONZO 998.86 6,992.02
R 192 4/06 FARRAR, DANNY 4,155.36 29,087.52
R 38 5/84 FRALEY, JOSEPH G. 1,768.12 12,376.84
R 170 5/03 FREEDLE, LARRY 3,816.75 26,717.25
R 92 03/02 GAGE,TOMMY 2,596.69 18,176.83
V 34 6/79 HARRIS, JAMES E. 109.27 764.89
V 70 11/99 HARRIS, MARY RUTH 109.27 764.89
Q 182 10/04 JENKINS, EILEEN 1,788.75 12,521.25
R 93 06/02 JENKINS, JOHN 1,788.76 12,521.32
R 86 07/01 JOHNSON,ROBERT 3,073.47 21,514.29
R 64 4/95 JORDAN, CHARLIE 2,274.95 15,924.65
S 76 5/88 JUDY, JAN 1,647.63 11,533.41
R 37 3/84 KING, ARNOLD D. 1,522.37 10,656.59
R 54 5/89 KING, ARVIL 1,711.21 11,978.47
V 12 3/60 LANE, HOPE MRS, Deceased 6/26/07 0.00 655.62
R 13 10/67 LAYER, MERLIN 456.22 3,193.54
R 173 12/03 LEDBETTER, DENNIS 3,775.80 26,430.60
V 181 10/04 LEE, VIOLA LOUISE 109.27 764.89
R 51 10/88 LEWIS, CHARLES 1,647.63 11,533.41
R 40 9/85 LOGUE, PAUL D. 2,868.28 20,077.96
R 50 9/88 MASON, LARRY 1,631.25 11,418.75
R 39 4/85 MC ARTHUR, RONALD A. 1,753.74 12,276.18
V 35 2/82 MC CHRISTIAN, DWAYNE 109.27 764.89
R 15 4/77 MC WHORTER, CHARLES 1,334.51 9,341.57
R 29 8/81 MILLER, DONALD 1,304.07 9,128.49
R 73 2/00 MILLER,KENNETH 3,180.02 22,260.14
V 42 2/86 MOORE, JAMES H. 109.27 764.89
V 176 4/04 MORRIS, DIXIE E. 125.66 879.62
R 48 7/88 MULLENS, DENNIS W. 2,191.30 15,339.10
R 184 3/05 NAPIER, LONNIE 3,518.28 24,627.96
R 196 01/02 ONEAL, TEDDY 4,120.99 28,846.93
R 46 5/88 OSBURN, TROY 1,899.66 13,297.62
R 81 02/01 PHILLIPS,LARRY 2,765.09 19,355.63
R 53 2/89 POAGE, LARRY 2,346.70 16,426.90
R 186 06/05 REAGAN, PETE 3,535.71 24,749.97
V 22 4/73 REED, JOE 109.27 764.89
S 172 12/03 SCHADER, MADGE 1,386.01 9,702.07
R 41 9/85 SCHADER, TROY 1,524.99 10,674.93
R 190 04/06 SHACKELFORD, GLEN 3,647.18 25,530.26
S 83 03/01 SKELTON, KIMBERLY 2,434.98 17,044.86
R 36 5/76 SPRINGSTON, CARL 806.19 5,643.33
S 90 03/02 STOUT, IMOGENE W. 767.80 5,374.60
R 165 12/02 TATE, RALPH 3,668.10 25,676.70
V 65 3/66 TUNE, BILLIE SUE 136.59 956.13
R 71 1/00 WARFORD,THOMAS 2,502.72 17,519.04
R 28 7/68 WATTS, DONALD 437.09 3,059.63
R 88 01/02 WOOD,RONNIE D 3,077.15 21,540.05
R 52 9/88 WRIGHT, RANDALL _ 1,691.34 11,839.38
113,207.55 793,108.47
DROP DATE DROP EMPLOYEES NEW BENEFITS
03/01/03 MAHAN, MARSHALL 4,077.28
03/01/03 PIERCE, JOEY 3,647.18
WE, THE UNDERSIGNED, DO SOLEMNLY SWEAR THAT THE ABOVE OBLIGATIONS ARE
JUST AND CORRECT; THAT NO PART THEREOF HAS BEEN PREVIOUSLY PAID;THAT
THE PENSION PAYMENTS SO CHARGED ARE IN ACCORDANCE WITH THE ACTIONS OF
THE BOARD OF TRUSTEES OF THE FIREMEN'S RELIEF AND PENSION FUND; THAT
6/28/2007 C:\Documents and Settings\awood.000\Local Settings\Temp\XPgrpwise\July 2007 WM
DATE OF Regular Mo Year To Date
EMP# RETIREMENT NAME Benefit Reg Benefit
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 :
6/28/2007 C:\Documents and Settings\awood.000\Local Settings\Temp\XPgrpwise\July 2007 WM
W,... ood Jennie Ho a Lane Page 1
From: Amber Wood
To: Moore, Wendy
Date: 6/28/2007 9:02 AM
Subject: Jennie Hope Lane
Attachments: 4213_001.pdf
Attached is a copy of the obituary for Jennie Hope Lane. She was a member of the Firemen's Pension. Please stop her check
beginning in July, 2007.
Thanks,
Amber Wood, CMC
Deputy City Clerk
City of Fayetteville
City Clerk Division
Phone: (479) 575-8323
Fax: (479) 718-7695
awood@ci.favetteville.ar.us
Hope ,
i�fr-s Hope La'�n+�,� 88 o°f
Fayetteville passed away�Tues V
dAir,,jurie 2G, 2007;ata spring,
dale She .was born7an 19.;,
1919, in Hartshoxre,f 40k1a , to<.
Charles and Maude Campbell
, S�e was,a hoin'emakex��. az
d�h
S�ineinber of Truiityl�thodist
s
r` ` She was preceded in '
death by �er..hnband,: Hal.'
Lane rr F,
She is suridiedbyrorie
Mike Larie andife Clarrce
of,Katy, Texas, one daizghtea-
Leslie Ann Pope and husband
Dan, and�one,gr��d�ughter,
Lgrie Galasso` and huspand
''�i'� omas� of Rosenbe`r�; ;
� .Giaveside se�rv`zces� w,,i11
be at 11 a m� Saturday;
��Tuie 30 at Fairview Memori�l�
Gardens in Fayetteville wt�i
Abe rev Dori Gedxge offi�iat�'
y Y V
` '�1Gleinorials,�,may,;be mad
�,to Fayetteville Firefighters„
F s�✓dation Scholarship Fund�<
���0, Box 638, Fayetteville-,
ka � n� mexitts
Fayetteville �5;
Firemen's Pension And Relief Fund Board Of Trustees
Chairman Position 3/Retired
Mayor Dan Coody Gene Warford
113 W. Mountain 4169 E. Oakmont Dr.
Fayetteville, AR 72701 Fayetteville, AR 72701-7772
575-8330 — Work 442-7080 — Home
Replaced Fred Hanna 957-3400 — Cell
01/01/01-Indef. Replaced Dennis Ledbetter
dcoody@ci.fayetteville.ar.us 1/16/07-05/31/07 Unexpired Term
06/01/07-05/31/09 1St Term
Secretary tot@warford.com
City Clerk Sondra Smith
113 W. Mountain Position 4/Retired
Fayetteville, AR 72701 Ron Wood
442-7838 — Home 17315 Lake Sequoyah Road
575-8323 — Work Fayetteville, AR 72701
Replaced Heather Woodruff 442-5925 — Home
02/03/03-Indef. 444-1699 — Work
ssmith@ci.fayetteville.ar.us 466-2817 — Cell
444-2700 — Pager
Position 1/Retired Replaced Danny Farrar
Marion Doss 05/01/93-05/31/07 Terms 1-7
1125 Cato Springs Road 06/01/07-05/31/09 8th Term
Fayetteville, AR 72701 rwood@co.washington.ar.us
521-8988 — Home
Replaced Mickey Jackson Position 5/Hi2hest Ranking Member
05/30/91-12/31/05 (Highest Ranking Member) Marshall E. Mahan
Replaced Danny Farrarr 122 Holland Drive
01/01/06-05/31/06 Unexp. Term (Retired) Farmington, AR 72730
06/01/06-05/31/08 1" Term 267-2509 — Home
Mhdoss42@aol.com 718-7622 — Work
601-3700 — Cell
Position 2/Retired Replaced Ted O'Neal
Pete Reagan 12/14/06-Indef. (Highest Ranking Member)
P. O. Box 1922 mmahan@ci.fayetteville.ar.us
Fayetteville, AR 72702
521-7542 — Home
841-0320 — Cell
Replaced Jack Boudrey
06/01/84-05/31/06 Terms 1-11
06/01/06-05/31/08 12th Term
apfffay@aol.com
26
RECEIVED
City of Fayetteville JUN 27 2007
CITY OF FAYETTEVILLE
Fire Pension and Relief Fund U/A Dated 6/18/86 CITY CLERK`S OFFICE
May 31, 2007 Equity Allocation: 57%
Equity Range Per Policy: 25% to 50% (+/-5% with monthly approval)
Longer Investments Inc. requests authorization for the variance, as required in the
investment policy dated February 24, 2005.
LONGER INVESTMENTS INCORPORATED
R Registered Investment Advisor
Longer Investments Inc.
PORTFOLIO APPRAISAL
Fayetteville Fire Pension and Relief Fund U/A DTD 6-18-86
May 31, 2007
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 41.34 144,690.00 1.6 1.420 4,970.00 5.4
1,875 American Express Co. 58.46 109,617.94 64.98 121,837.50 1.4 0.600 1,125.00 1.0
1,600 American International 67.73 108,374.15 72.34 115,744.00 1.3 0.800 1,280.00 1.2
Group Inc.
4,750 Applied Materials Inc. 16.08 76,402.33 19.10 90,725.00 1.0 0.240 1,140.00 1.5
2,300 Avon Products Inc. 35.54 81,740.00 38.39 88,297.00 1.0 0.740 1,702.00 2.1
1,000 B.P. Amoco PLC A.D.S. 39.62 39,625.00 67.01 67,010.00 0.8 2.480 2,480.00 6.3
2,570 Bank of America Corp. 46.98 120,743.23 50.71 130,324.70 1.5 2.240 5,756.80 4.8
2,700 Barclays PLC 39.80 107,472.69 57.23 154,521.00 1.8 2.810 7,587.00 7.1
1,725 Cameco Corp. 39.35 67,873.40 51.97 89,648.25 1.0 0.170 293.25 0.4
1,750 Chevron Corp. 36.34 63,596.05 81.49 142,607.50 1.6 2.320 4,060.00 6.4
2,750 Citigroup 39.33 108,149.59 54.49 149,847.50 1.7 2.160 5,940.00 5.5
2,950 Coca-Cola 41.85 123,445.69 52.99 156,320.50 1.8 1.360 4,012.00 3.3
2,000 Computer Sciences 53.36 106,717.00 55.40 110,800.00 1.3 0.000 0.00 0.0
Corp.
1,335 Devon Energy Corp. 66.34 88,561.63 76.78 102,501.30 1.2 0.560 747.60 0.8
3,260 Disney Company 25.57 83,349.00 35.44 115,534.40 1.3 0.310 1,010.60 1.2
5,175 EMC Corporation 16.07 83,178.00 16.89 87,405.75 1.0 0.000 0.00 0.0
2,680 Emerson Electric 23.98 64,279.80 48.45 129,846.00 1.5 1.050 2,814.00 4.4
1,475 ExxonMobil 34.89 51,457.58 83.17 122,675.75 1.4 1.400 2,065.00 4.0
5,500 General Electric 26.59 146,257.35 37.58 206,690.00 2.3 1.120 6,160.00 4.2
1,500 Hain Celestial Group, 19.49 29,231.55 28.60 42,900.00 0.5 0.000 0.00 0.0
Ino.
2,000 Health Care Select 32.98 65,962.13 36.73 73,460.00 0.8 0.497 994.96 1.5
Sector SPDR Fund
1,900 Ingersoll-Rand 41.13 78,149.66 51.33 97,527.00 1.1 0.720 1,368.00 1.8
5,025 Intel Corp. 18.36 92,242.67 22.18 111,454.00 1.3 0.450 2,261.25 2.5
2,350 J.B. Hunt 22.17 52,092.22 29.14 68,479.00 0.8 0.360 846.00 1.6
1,350 Johnson&Johnson 59.12 79,818.08 63.27 85,414.50 1.0 1.660 2,241.00 2.8
2,585 Kraft Foods Inc. 32.96 85,197.00 33.84 87,476.40 1.0 1.000 2,585.00 3.0
1,250 Norfolk Southern 52.18 65,219.00 57.88 72,350.00 0.8 0.880 1,100.00 1.7
1,885 Northern Trust Corp. 57.34 108,090.96 65.08 122,675.80 1.4 1.000 1,885.00 1.7
4,650 Oracle Corp. 17.06 79,307.23 19.38 90,117.00 1.0 0.000 0.00 0.0
1,050 Parker Hannifin Corp. 82.56 86,683.87 101.36 106,428.00 1.2 0.920 966.00 1.1
2,750 Patterson-UTI Energy 23.37 64,267.50 26.42 72,655.00 0.8 0.480 1,320.00 2.1
Inc.
3,400 Powershares Dynamic 18.96 64,457.88 19.25 65,449.32 0.7 0.000 0.00 0.0
Semiconductors
5,300 Powershares Water 17.56 93,060.25 20.49 108,597.00 1.2 0.094 499.90 0.5
Resource
2,250 St. Jude Medical 37.98 85,444.20 42.69 96,052.50 1.1 0.000 0.00 0.0
2,750 Teva Pharmaceuticals 38.62 106,218.70 39.20 107,800.00 1.2 0.390 1,072.50 1.0
3,665 Texas Instruments 30.07 110,195.05 35.36 129,594.40 1.5 0.320 1,172.80 1.1
2,500 The Technology Select 24.68 61,700.00 25.65 64,125.00 0.7 0.174 435.30 0.7
Sec SPDR Fund
4,875 Time-Warner, Inc. 17.85 87,022.44 21.37 104,178.75 1.2 0.220 1,072.50 1.2
3,250 US Bancorp 31.63 102,785.68 34.58 112,385.00 1.3 1.600 5,200.00 5.1
2,000 Verizon 40.60 81,200.00 43.53 87,060.00 1.0 1.620 3,240.00 4.0
Communications
2,250 Walmart Stores 46.72 105,108.90 47.60 107,100.00 1.2 0.880 1,980.00 1.9
3,505,785.40 4,340,304.82 49.2 83,383.46 2.6
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
May 31, 2007
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 25.31 136,041.25 1.5 1.656 8,902.34 6.5
AAA/AAA (C 6-28-07)
137,585.24 136,041.25 1.5 8,902.34 6.5
Mutual Funds-Equity
1,200.0000 iShares MSCI Hong 17.21 20,652.00 16.83 20,196.00 0.2 0.311 373.05 1.8
Kong Index Fund
20,000.0000 iShares MSCI Japan 10.69 213,850.00 14.60 292,000.00 3.3 0.099 1,989.18 0.9
Index Fund
1,500.0000 iShares MSCI Taiwan 12.54 18,803.55 14.60 21,900.00 0.2 0.302 452.45 2.4
Index Fund
3,000.0000 iShares S&P Europe 82.03 246,094.10 117.40 352,200.00 4.0 2.083 6,248.48 2.5
350 Index
499,399.65 686,296.00 7.8 9,063.15 1.8
Corporate Bonds
50,000 NationsBank Corp. 99.79 49,894.00 100.60 50,300.70 0.6 6.375 3,187.50 6.4
Subordinated Notes
AA2/AA- (NC)
6.375% Due 02-15-08
65,000 J.P. Morgan Chase 102.60 66,687.00 100.90 65,582.07 0.7 6.700 4,355.00 6.5
Bank AAl/AA- (NC)
6.700% Due 08-15-08
50,000 Bankers Trust NY Corp 99.26 49,630.00 100.66 50,328.75 0.6 6.000 3,000.00 6.0
Subordinated Notes
A2/A(NC)
6.000% Due 10-15-08
25,000 First Union Corp. 93.78 23,446.00 100.80 25,199.85 0.3 6.000 1,500.00 6.4
Subordinated
Debentures Al/A+ (NC)
6.000% Due 10-30-08
25,000 Pepsico Incorporated 97.49 24,373.00 100.57 25,143.65 0.3 5.700 1,425.00 5.8
Medium Term Note
AA2/A+ (NC)
5.700% Due I1-01-08
50,000 Hershey Foods Corp. 97.63 48,816.00 106.43 53,213.55 0.6 6.950 3,475.00 7.1
Notes Al/A+ (NC)
6.950% Due 08-15-12
50,000 Paribas New York 96.03 48,014.00 107.87 53,932.85 0.6 6.950 3,475.00 7.2
Branch Subordinated
Notes AA2/AA- (NC)
6.950% Due 07-22-13
75,000 Merrill Lynch &Co. 99.26 74,442.00 105.70 79,274.17 0.9 6.500 4,875.00 6.5
Inc. Global Bonds
AA3/AA- (NC)
6.500% Due 07-15-18
50,000 National City Corp. 96.65 48,326.00 107.85 53,925.50 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 50,004.00 112.36 56,181.10 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 6-18-86
May 31, 2007
Unit Total Market Pct. Unit Annual Cur.
Quantity Security Cost Cost Price Value Assets Income Income Yield
50,000 Dell Computer Corp. 95.46 47,731.00 105.73 52,863.15 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 7,856.06 0.1
531,363.00 573,801.41 6.5 35,780.00 6.8
Government Bonds
50,000 U. S. Treasury Bond 100.01 50,004.00 105.25 52,625.00 0.6 5.500 2,750.00 5.5
5.500% Due 08-15-28
50,000 U. S. Treasury Bond 98.95 49,474.00 102.12 51,062.50 0.6 5.250 2,625.00 5.3
5.250% Due 11-15-28
Accrued Interest 911.78 0.0
99,478.00 104,599.28 1.2 5,375.00 5.4
Government Agency
110,000 Federal Home Loan 100.00 110,000.00 99.91 109,896.87 1.2 5.280 5,808.00 5.3
Bank(C 9-19-07 @
100, ix)
5.280% Due 09-19-08
100,000 Fed Nat'l Mortgage 100.00 100,000.00 99.69 99,687.50 1.1 5.125 5,125.00 5.1
Assoc (C 10-3-07 @
100, IX)
5.125% Due 10-03-08
100,000 Federal Home Loan 100.00 100,000.00 99.66 99,656.25 1.1 5.100 5,100.00 5.1
Bank (C 12-26-07 @
100, 1X)
5.100% Due 12-26-08
200,000 Federal Home Loan 100.00 200,000.00 99.59 199,187.50 2.3 5.100 10,200.00 5.1
Bank (C 5-20-08 @
100, IX)
5.100% Due 11-20-09
525,000 Federal Home Loan 100.00 525,000.00 100.03 525,164.06 6.0 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 49,474.00 101.57 50,783.50 0.6 5.625 2,812.50 5.7
Authority(NC)
5.625% Due 01-18-11
350,000 Federal Home Loan 100.00 350,000.00 99.59 348,578.12 4.0 5.250 18,375.00 5.2
Bank (C 2-9-09 @ 100,
1X)
5.250% Due 02-09-11
65,000 Federal Home Loan 100.00 65,000.00 99.00 64,350.00 0.7 5.020 3,263.00 5.0
Bank (C 4-13-09 @
100, IX)
5.020% Due 04-13-11
125,000 Federal Home Loan 100.00 125,000.00 100.03 125,039.06 1.4 5.500 6,875.00 5.5
Bank(C 2-18-09 @
100, IX)
5.500% Due 08-18-11
3
LONGER INVESTMENTS INCORPORATED
lh A Registered Inveshnerit Advisor
Longer Investments Inc.
PORTFOLIO APPRAISAL
Fayetteville Fire Pension and Relief Fund U/A DTD 6-18-86
May 31, 2007
Unit Total Market Pct. Unit Annual Cur.
Quantity Security Cost Cost Price Value Assets Income Income Yield
200,000 Fed Nat'l Mortgage 100.00 200,000.00 99.66 199,312.50 2.3 5.400 10,800.00 5.4
Assoc (C 9-15-08 @
100, 1X)
5.400% Due 09-15-11
70,000 Federal Home Loan 100.00 70,000.00 99.16 69,409.37 0.8 5.300 3,710.00 5.3
Bank (C 12-28-07 @
100, quarterly)
5.300% Due 12-28-11
100,000 Federal Home Loan 100.00 100,000.00 98.53 98,531.25 1.1 5.020 5,020.00 5.0
Bank(C 12-12-08 @
100, ix)
5.020% Due 06-12-12
55,556 Federal Home Loan 100.00 55,555.56 98.22 54,565.98 0.6 5.080 2,822.22 5.1
Bank(C 7-30-07,
continuously thereafter)
5.080% Due 10-03-12
250,000 Federal Home Loan 100.00 250,000.00 98.00 245,000.00 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 99.16 99,156.25 1.1 5.250 5,250.00 5.2
Bank(C 11-14-08 @
100, IX)
5.250% Due 11-14-12
75,000 Federal Home Loan 100.00 75,000.00 98.62 73,968.75 0.8 5.375 4,031.25 5.4
Bank(C 7-30-07,
continuously thereafter)
5.375% Due 11-07-13
125,000 Federal Farm Credit 100.00 125,000.00 97.94 122,421.87 1.4 5.300 6,625.00 5.3
Bank(C 7-30-07 @
100, continuously
thereafter)
5.300% Due 06-22-15
100,000 Federal Home Loan 100.00 100,000.00 100.01 100,005.90 1.1 6.000 6,000.00 6.0
Mortgage Corp. (C
4-28-09 @ 100,
quarterly)
6.000% Due 04-28-16
210,000 Fed Nat'l Mortgage 100.00 210,000.00 99.91 209,803.12 2.4 6.000 12,600.00 6.0
Assoc (C 10-24-08 @
100, quarterly)
6.000% Due 10-24-16
Accrued Interest 35,361.31 0.4
2,910,029.56 2,929,879.19 33.2 155,896.97 5.4
Cash and Equivalents
Dividends Accrued 7,325.39 7,325.39 0.1 0.000 0.00 0.0
Money Market 25,111.26 25,111.26 0.3 4.575 1,148.84 4.6
Restricted Cash 20,000.00 20,000.00 0.2 4.575 915.00 4.6
52,436.65 52,436.65 0.6 2,063.84 3.9
TOTAL PORTFOLIO 7,736,077.50 8,823,358.59 100.0 300,464.77 3.8
4
LONGER INVESTMENTS INCORPORATED
lh A Registered Investment Advisor
Longer Investments Inc.
CASH CONTRIBUTIONS/WITHDRAWALS
City of Fayetteville Fire Pension and Relief Fund
08-15-02 to 05-31-07
CONTRIBUTIONS
2002 Total Additional transfers from Merrill Lynch $147,498.38
09-10-03 Money Market $350,000.00
08-04-04 Money Market $127,000.00
09-01-05 Money Market $1453000.00
08-17-06 Money Market $408.95
(Bristol-Myers Squibb litigation settlement)
$769,907.33
WITHDRAWALS
2002 Total Money Market $199,000.00
2003 Total Money Market $751,000.00
2004 Total Money Market $935,000.00
2005 Total Money Market $1,106,000.00
2006 Total Money Market $1,536,000.00
2007
1-04-07 Money Market $117,000.00
2-01-07 Money Market $80,000.00
3-05-07 Money Market $108,000.00
4-01-07 Money Market $95,000.00
5-01-07 Money Market $100,000.00
$570273000.00
5
LONGER INVESTMENTS INCORPORATED
A Registered Investment Advisor
MR PW pa rw
PYL 0WWJUN 2007
CITY OF FAYETTEVILLE
CITE'CLERK'S OFFICE
COMMENTS AND OUTLOOKS FROM LONGER INVESTMENTS INCORPORATED
June 18, 2007
This newsletter will review the financial market U.S. rates. Market forces, as opposed to Fed
activity in the first half of 2007 and look forward to officials, dictate the interest rates that must be paid
the factors that should affect markets in the second on U.S. Treasury notes and bonds in the two-year to
half. 30-year maturities. As yields rise overseas, foreign
investors demand higher interest for holding U.S.
The Bond Market Treasury debt. As a result, rates on the bellwether
10-year Treasury note rose from 4.65%to 5.25% so
The Federal Reserve (the Fed) continued to far this year.
stand pat on interest rates this year (holding Fed
Funds at 5.25%) as economic growth(real GDP) This increase in yield on the 10-year note has
slowed to an anemic rate of 0.6% in the first quarter. significant implications for the nascent housing
Core inflation remained tame even while energy recovery, the viability of subprime lenders, the
prices fluctuated between$55 and$69 per barrel. continuation of the liquidity surge that has funded
Unemployment was steady at 4.5%; however,job merger and acquisition activity this year, and
creation growth has slowed. Housing remained in a consumer credit growth, among other factors.
slump, with more foreclosures and unsold homes. Treasury yields at 5.25% and above can be expected
Corporate America continued to show impressive to exert a drag on economic growth in the second
profit growth even as domestic growth waned. half of the year. Although market expectations for a
S&P 500 companies reported earnings growth of Fed rate cut have receded of late, we still expect at
8.3% in the first quarter. least one cut before the end of the calendar year.
During the first quarter of 2007, yields across Chart 1
the maturity spectrum were almost unchanged from
2006 year-end levels. However, as inflation pres- Historic Rates for the
sures overseas increased and foreign central banks 10-Year U.S. Treasury Note
raised their rates, U.S. interest rates in the two-year
to 30-year maturities also increased. A positive 10%
upward-sloping yield curve has replaced the
inverted yield curve we saw from June of last year 9
through May of this year. (See Table A below.)
8
TableA
7
U.S. Treasury Yield Curve 6
Maturi 12/31/06 03/31/07 06/12/07 5
Fed Funds 5.25% 5.25% 5.25%
Two-Year 4.76% 4.74% 5.07% 4
Five-Year 4.64% 4.70% 5.15%
10-Year 4.65% 4.75% 5.25% 3
30-Year 4.74% 4.92% 5.36% 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07
Source: Thomson Datastream
U.S. economic growth has tapered off from last At this point, we are watching and waiting for
year's 3.3%real GDP growth rate, and cote inflation an opportunity to extend maturities in our bond
remains moderate. But rising economic growth and portfolios. In 2006, interest rates peaked mid-year at
interest rates in Europe and Asia, and in developing levels close to where we are now. At that time, we
economies elsewhere have put upward pressure on reinvested and rolled short-maturity bonds into
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LONGER INVESTMENTS INCORPORATED
date, and earnings growth of 8.3% in the first quarter without a merger or buyout announcement. This
has again outpaced price appreciation. So, stock liquidity was an important factor in the stock market
valuation is still relatively appealing compared to movement we've seen.
bond yields.
Table C
U.S. corporations are in excellent financial
shape. Cash flow return on investment (CFROI) has Global Broad Money Supply Growth
hit a 50-year high(see Chart 2 on page 2). American
businesses have used outsourcing, technology, and Year-Over-Year
capital investment to create impressive gains in % Chanae
productivity. Balance sheets are strong and debt Russia 57.6%
levels are low. This high CFROI has enabled Argentina 29.5%
corporations to pay down debt, to increase divi- Philippines 26.3%
dends, to repurchase stock, and to use merger and Singapore 23.0%
acquisition (M&A) activity to boost sales and India 19.7%
consolidate operations. In fact, through May, Brazil 18.2%
American companies have announced plans for Poland 17.8%
$137 billion of share repurchases, 34%more than in China 17.1%
the same period last year. Global M&A activity, led Indonesia 15.2%
by deals in Europe and the United States, now Norway 14.2%
exceeds$2 trillion, up more than 60% since last year. Australia 13.7%
U.K. 13.3%
The alternatives to owning stocks are not very Hong Kong 13.0%
compelling. Stock returns—both long-term capital New Zealand 12.8%
gains and income—are taxed at a federal tax rate of Czech Republic 11 .3%
15%. With a 10-year taxable Treasury bond yield of South Korea 10.8%
4.5%, or even the current 5.25%, the aftertax returns Eurozone 10.4%
of bonds are not attractive enough to draw funds U.S. 8.1%
away from stocks. The Fed model, which looks at
the earnings of the S&P 500 with the 10-year Source: ISI Portfolio Strategy
Treasury bond yield shows the S&P 500 underval-
ued by about 20%. The calculation is based on 2007 As the first quarter draws to a close, we believe
S&P 500 operating earnings estimates of$94.00 and that stocks are reasonably valued. We think they
10-year bond yields of 5.25%. offer the potential for greater returns through year-
end than do bonds. We remain overweight in
Private equity transactions, mergers and industrials, energy, and technology, and under-
acquisitions, and leveraged buyouts (LBOs) have weight in the consumer stocks, especially consumer
also provided support. There is a lot of liquidity in durables and retailing. We continue to favor the
the international markets, because the worldwide large-capitalization multinational firms that are well-
money supply has grown (see Table C) and credit is positioned internationally and therefore have greater
more readily available. Hardly a day goes by growth opporturnities than companies that operate
only in the sluggish U.S. market.
For additional information, visit our Web site:
www.longerinv.com
LONGER INVESTMENTS INCORPORATED
There are risks to our optimistic scenario. As It is always a challenge to write this newsletter.
always, we monitor them vigilantly. They include: The views expressed are based on information we
have available in a sliver of time. In today's markets,
• Geopolitical risk—heightened war tensions variables and inputs can change quickly and
or terrorist attacks sometimes dramatically. We try to communicate in a
• Sharply higher interest rates, that would timely manner what we see at the moment we write
increase the cost of capital, impede the housing and to explain how our interpretation of the eco-
recovery, and provide an attractive alternative nomic variables affects the portfolio structure of our
to stocks bond and stock accounts. In today's world, where
• A disorderly decline in the dollar in world information travels at Internet speed, and markets
respond in seconds, we always run the risk that the
currency markets newsletter will be outdated before it comes back
• Sharply higher energy prices that would from the printer. We strive to communicate what we
increase inflationary pressures see and feel —what we'd say to you if you were
• . A congressional agenda that raises taxes on sitting in our office today. Please feel free to call if
investment returns (dividends or capital gains), you want more information.
embarks on protectionism in trade, or greatly
increases regulation and the cost of doing
business in the United States
• A dropoff in economic activity that would
reduce earnings expectations for U.S.
corporations
The information provided herein is illustrative only.
It should not be construed as a formal recommendation by Longer Investments Inc.
® LONGER INVESTMENTS INCORPORATED
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