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Home My WebLink About2007-10-25 - Agendas - Final Firemen's Pension and Relief Fund Meeting Agenda October 25, 2007 A meeting of the Fayetteville Firemen's Pension and Relief Fund will be held at 11:00 AM on October 25, 2007 in Room 326 of the City Administration Building. Approval of the Minutes: • September 25, 2007 Meeting Minutes Approval of the Pension List: • November, 2007 Pension List Old Business: • Dennis Mullens retirement classification (Tabled from the September 25, 2007 meeting.) • Pension Protection Act (Tabled from the September 25, 2007 meeting) New Business: • Kim Skelton Proof of Enrollment • Change Meetings to Quarterly — State Statute 24-11-802 Longer Investments: • Monthly Report • Quarterly Report Board Members Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes Mayor Coody Chairman September 25, Sondra E. Smith Secreta ' Page 1 of of 2 2 �, Marion Doss Position /Retire d Pete Reagan Position 2/Retired Gene Warford Position 3/Retired S ARKANSAS Ron Wood Position 4/Retired Marshall E. Mahan Position 5/1-lighest Ranking Firemen's Pension and Relief Fund Meeting Minutes September 25, 2007 A meeting of the Fayetteville Firemen's Pension and Relief Fund was held at 11:00 AM on September 25, 2007 in Room 326 of the City Administration Building Mayor Coody called the meeting to order. Present: Mayor Coody, Pete Reagan, Marshall E. Mahan, Gene Warford, Ronnie Wood, Trish Leach & Wendy Moore, Accounting, City Clerk Sondra Smith, Assistant City Attorney David Whitaker. Absent: Marion Doss. Approval of the Minutes: Approval of the August 30, 2007 Meeting Minutes Pete Reagan moved to approve the August 30, 2007 Meeting Minutes. Marshall E. Mahan seconded the motion. Upon roll call the motion passed 6-0. Marion Doss was absent. Approval of the Pension List: Approval of the October, 2007 Pension List Mayor Coody: Are there any changes? Sondra Smith: No changes. Gene Warford moved to approve the October, 2007 Pension List. Pete Reagan seconded the motion. Upon roll call the motion passed 6-0. Marion Doss was absent. Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes September 25,2007 Page 2 of 2 Old Business: Dennis Mullens retirement classification (Tabled from the August 30, 2007 meeting.) Gene Warford moved to table Dennis Mullen's Retirement Classification to the October meeting. Pete Reagan seconded the motion. Upon roll call the motion passed 6-0. Marion Doss was absent. Pension Protection Act (Tabled from the August 30, 2007 meeting) Pete Reagan moved to table Pension Protection Act to the September meeting. Gene Warford seconded the motion. Upon roll call the motion passed 6-0. Marion Doss was absent. New Business: NCPERS Dues Pete Reagan move to pay 2008 yearly dues of $150.00. Marshall E. Mahan seconded the motion. Upon roll call the motion passed 6-0. Marion Doss was absent. Longer Investments: Monthly Report A copy of the Longer Investments monthly report was given to the board. Mayor Coody: Is there any news on this? Pete Reagan: It's up a little bit. Longer Investments Informational Letter A copy of the Longer Investments informational letter was given to the Board Meeting Adjourned at 11:06 AM FIREMEN'S RELIEF AND PENSION November 11 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. Added to Aug Check DATE OF Regular Mo Year To Date Act 1373 EMP# RETIREMENT NAME Benefit Reg Benefit lture Supplement O 79 11/99 ARMSTRONG(DILL), PAMELA 1,812.74 19,940.14 0.00 R 177 4/04 BACHMAN, EDDIE 2,618.55 28,804.05 754.20 S 74 3/86 BAIRD, JULIA 1,802.08 19,822.88 754.20 V 63 5/72 BOLAIN, ANN 109.27 1,201.97 150.84 R 68 7/99 BONADUCE, MICHAEL 2,988.76 32,876.36 754.20 S 44 9/86 BOUDREY, BETTY MRS. 2,477.42 27,251.62 754.20 R 45 9/86 BOUDREY, HOWARD 2,089.28 22,982.08 754.20 R 49 7/88 BOUDREY,JACK 1,647.63 18,123.93 754.20 V 5 5/72 CASELMAN,ARTHUR 131.13 1,442.43 150.84 R 57 5/90 CATE, ROY 1,788.90 19,677.90 754.20 V 6 4/68 CHRISTIE,ARNOLD 109.27 1,201.97 150.84 V 8 10176 COUNTS,WAYNE 109.27 1,201.97 150.84 R 77 11/99 DILL,GARY JOHN 1,812.75 19,940.25 754.20 188 12/05 DOSS,MARION H 5,376.91 59,146.01 754,20 R 11 2/76 FARRAR ALONZO 998.86 10,987.46 754.20 R 192 4/06 FARRAR, DANNY 4,155.36 45,708.96 754.20 R 38 5184 FRALEY, JOSEPH G. 1,768,12 19,449.32 754.20 R 170 5/03 FREEDLE, LARRY 3,816.75 41,984.25 754.20 R 92 03/02 GAGE,TOMMY 2,596.69 28,563.59 754.20 V 34 6/79 HARRIS,JAMES E, 109.27 1,201.97 150.84 V 70 11/99 HARRIS, MARY RUTH 109.27 1,201.97 150.84 O 182 10/04 JENKINS, EILEEN 1,788.75 19,676.25 R 93 06/02 JENKINS, JOHN 1,788.76 19,676.36 754.20 R 86 07/01 JOHNSON,ROBERT 3,073.47 33,808.17 754.20 R 64 4/95 JORDAN, CHARLIE 2,274.95 25,024.45 754.20 S 76 5/88 JUDY,JAN 1,647.63 18,123.93 754.20 R 37 3/84 KING,ARNOLD D_ 1,522.37 16,746.07 754.20 R 54 5/89 KING,ARVIL 1,711.21 18,823.31 754.20 V 12 3/60 LANE, HOPE MRS, Deceased 6/26/07 0.00 655.62 R 13 10/67 LAYER, MERLIN 456.22 5,018.442 754.20 R 173 12/03 LEDBETTER, DENNIS 3,775.80 41,533.80 754.20 V 181 10/04 LEE,VIOLA LOUISE 109,27 1,201.97 150.84 R 51 10/88 LEWIS, CHARLES 1,647.63 18,123.93 754.20 R 40 9/85 LOGUE, PAUL D. 2,868.28 31,551.08 754.20 R 50 9/88 MASON, LARRY 1,631.25 17,943.75 754.20 R 39 4/85 MC ARTHUR, RONALD A. 1,753.74 19,291.14 754.20 V 35 2/82 MC CHRISTIAN, DWAYNE 109.27 1,201.97 150.84 R 15 4/77 MC WHORTER, CHARLES 1,334.51 14,679.61 754.20 R 29 8/81 MILLER, DONALD 1,304.07 14,344.77 754.20 R 73 2/00 MILLER,KENNETH 3,180.02 34,980.22 754.20 V 42 2/86 MOORE, JAMES H. 109.27 1,201.97 150.84 V 176 4/04 MORRIS, DIXIE E. 125.66 1,382.26 150.84 R 48 7/88 MULLENS, DENNIS W. 2,191.30 24,104.30 754.20 R 184 3/05 NAPIER, LONNIE 3,518.28 38,701.08 754.20 R 196 01/02 ONEAL,TEDDY 4,120.99 45,330.89 754.20 R 46 5/88 OSBURN,TROY 1,899.66 20,896.26 754.20 R 81 02/01 PHILLIPS,LARRY 2,765.09 30,415.99 754.20 R 53 2/89 POAGE, LARRY 2,346.70 25,813.70 754.20 R 186 06/05 REAGAN, PETE 3,535.71 38,892.81 754.20 V 22 4/73 REED,JOE 109,27 1,201.97 150,84 S 172 12/03 SCHADER, MADGE 1,386.01 15,246.11 754.20 R 41 9/85 SCHADER, TROY 1,524.99 16,774.89 754.20 R 190 04/06 SHACKELFORD, GLEN 3,647.18 40,118.98 754.20 S 83 03/01 SKELTON, KIMBERLY 2,434.98 26,784.78 754.20 R 36 5/76 SPRINGSTON, CARL 806.19 8,868.09 754.20 S 90 03/02 STOUT, IMOGENE W. 767.80 8,445.80 754.20 R 165 12/02 TATE, RALPH 3,668.10 40,349.10 754.20 V 65 3166 TUNE, BILLIE SUE 136.59 1,502.49 150.84 R 71 1/00 WARFORD,THOMAS 2,502.72 27,529.92 754,20 R 28 7/68 WATTS, DONALD 437.09 4,807.99 754.20 R 88 01/02 WOOD,RONNIE D 3,077.15 33,848.65 754.20 R 52 9/88 WRIGHT, RANDALL 1,691.34 18,604.74 754.20 113,207.55 1,245,938.67 37,257.48 10/15/2007 C:IDOCUME-•1lssmithlLOCALS-1\TemplXPgrpwiseWovember 2007.x1s WM DATE OF Regular Mo Year To Date Act 1373 EMP#RETIREMENT NAME Benefit Reg Benefit Aure Supplement 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 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 � . CHAIRMAN AND PRESIDENT ACKNOWLEDGEMENT STATE OF ARKANSAS ) COUNTY OF WASHINGTON) SWORN TO AND SUBSCRIBED BEFORE ME THIS DAY OF 12006. NOTARY PUBLIC MY COMMISSION EXPIRES: 10/15/2007 C:\DOCUME-llssmith\LOCALS-11Temp\XPgrpwiseWovember 2007-As WM -is N/whi 146 Silas H. Hent Hall office of the Registrar Fayetteville, AR 72701 School Code: 001109 (479)575-5451 Kimberly Skelton 2672 N Stagecoach Dr Fayetteville, AR 72703-3742 United States Snrollmeat Verification Kimberly Lynn Skelton Date of Birth: July 18 Term Level BeainD o Date Hours Status Fall 2007 UGRD 08/20/2007 12/12/2007 12 Full-Time Date: Wednesday, September 19, 2007 Seal Office of the Registrar REMTRAR ASSISTANT This certifu:ate is valid only when signed by-an authorized ofeial of the OQSce of the Registrar ' and the certificate is embossed with the seal of the Registrar: End of Report Page 1 of 1 24-11-802. Board of trustees - Proceedings. (a) Meetings of the board of trustees may be called by the chair or by a majority of the members in a manner established by the board. (b) The board shall issue orders signed by the president and secretary to the persons entitled thereto for the amount of money ordered paid to the persons from the fund by the board. The order shall state for what purpose the payment is made. (c) The board shall keep a record of its proceedings. The record shall be a public record. (d)(1) At each meeting, the board shall send to the treasurer of the city or town a written or printed list of all persons entitled to payment from the fund provided for in this subchapter. (2) This list shall state the amount of the payment and for what granted and shall be certified to and signed by the president and secretary of the board and attested under oath. (e)(1) The treasurer of the city or town shall thereupon enter a copy of the list upon the book to be kept for that purpose. The book shall be known as "The Firemen's Relief and Pension Fund Book". (2) The board shall direct payment of the amounts named therein to the persons entitled thereto out of those funds. (f) A majority of all the members of the board shall constitute a quorum and shall have the power to transact business. (g)(1) No money belonging to the fund shall ever be disbursed for any purpose without a vote of a majority of all the members of the board of trustees, which shall be taken by the "yeas" and "nays". (2) The vote of each member so voting shall be entered upon the proceedings of the board. History. Acts 1921, No. 491, § 3; Pope's Dig., § 7739; Acts 1981, No. 57, § 1; A.S.A. 1947, § 19-2203; Acts 1993, No. 201, § 1; 1995, No. 514, §§ 4-6. http://170.94.58.9/NXT/gateway.dll/ARCode/title32190.htm/chapter32855.htm/subehapter... 9/27/2007 RECEIVED n 6; LONGER INVESTMENTS INCORPORATED A Registered Investment Advisor OCT 12 2007 CITY OF FAYMEMLLE CITY CLERK'S OFFICE October 9, 2007 Ms. Sondra Smith City of Fayetteville Fire Pension & Relief Fund 113 W. Mountain Fayetteville, Arkansas 72701 Dear Sondra: Enclosed you will find the 2007 third-quarter reports for the Fayetteville Fire Pension and Relief Fund account. These reports include a portfolio appraisal and a summary of realized gains/losses and income/expenses. Detailed reports of realized gains/losses and income/expenses are included at the back of the report package. As instructed, the account at Northern Trust will be billed for the management fee. Year-to-date performance for 2007 is detailed below. (Performance is quoted net of all expenses.) Domestic Foreign Total Equities Funds Bonds Account Fayetteville Fire Pension 11.5% 6.5% 3.9% 7.6% In comparison, 2007 returns for market indices for the same time period are listed below: S&P 500 7.7% Dow Jones Industrial Average 11.5% NASDAQ over-the-counter index 11.9% Russell 2000 small-capitalization index 2.3% Salomon Bros. Total Return Treasury Index 4.8% P.O.Box 1269 Fayetteville,Arkansas 72702 Telephone:479-443-5851 Toll free: 800-827-7710 Fax:479-443-7129 Web site:www.longerinv.com Ms. Sondra Smith October 9, 2007 Page Two As we predicted in our interim newsletter sent to you on August 16, the Federal Reserve cut interest rates at the September meeting by 50 basis points. This was viewed as good news by equity market participants, and the Dow Jones Industrial Average recovered nicely from the intraday low of 12,500 in August. This is the first interest rate cut since the credit tightening cycle began in 2004. We may see some continued uncertainty in the market during the fourth quarter, as more information about the strength of the economy and earnings outlook becomes available. However, we remain cautiously optimistic about the outlook for equities, given the modest valuation on the stock market and the 4.5% yield on the 10-year U.S. Treasury note. We will mail a fourth-quarter newsletter once third-quarter earnings releases have concluded and employment and other economic indicators for the month of September have been released. Longer Investments appreciates the opportunity to assist with the management of the Fayetteville Fire Pension and Relief Fund's assets. Please do not hesitate to call if you have any questions or comments, or if we can be of further service. Sincerely, Elaine M. Lo ger, FA President EML:cml Enclosures i a i II City of Fayetteville Fire Pension and Relief Fund U/A Dated 06-18-86 THIRD QUARTER REPORTS September 30, 2007 i i i l LONGER INVESTMENTS INCORPORATED A Registered Investment Advisor Longer Investments Inc. PORTFOLIO APPRAISAL Fayetteville Fire Pension and Relief Fund UTA DTD 6-18-86 September 30, 2007 Unit Total Market Pct. Unit Annual Cur. Quantity Security Cost Cost Price Value Assets Income Income Yield Common Stock 2,175 AT&T 26.02 56,589.50 42.31 92,024.25 1.0 1.420 3,088.50 5.5 1,250 Allergan Inc. 61.01 76,260.50 64.47 80,587.50 0.9 0.200 250.00 0.3 1,735 Amphenol Corp. 37.18 64,507.86 39.76 68,983.60 0.8 0.060 104.10 0.2 4,750 Applied Materials Inc. 16.08 76,402.33 20.70 98,325.00 1.1 0.240 1,140.00 1.5 2,250 Archer-Daniels-Midland 32.80 73,800.48 33.08 74,430.00 0.8 0.460 1,035.00 1.4 Co. 500 B.P. Amoco PLC A.D.S. 39.59 19,795.00 69.35 34,675.00 0.4 2.600 1,300.00 6.6 1,810 Barclays PLC 40.93 74,082.83 48.62 88,002.20 1.0 2.980 5,393.80 7.3 1,775 Barrick Gold Corp. 30.09 53,409.75 40.28 71,497.00 0.8 0.300 532.50 1.0 1,750 Chevron Corp. 36.34 63,596.05 93.58 163,765.00 1.8 2.320 4,060.00 6.4 2,400 Citigroup 38.13 91,500.09 46.67 112,008.00 1.3 2.160 5,184.00 5.7 2,200 Coca-Cola 41.77 91,894.00 57.47 126,434.00 1.4 1.360 2,992.00 3.3 1,000 Devon Energy Corp. 66.34 66,338.30 83.20 83,200.00 0.9 0.560 560.00 0.8 2,500 Disney Company 24.37 60,912.78 34.39 85,975.00 1.0 0.310 775.00 1.3 5,175 EMC Corporation 16.07 83,178.00 20.80 107,640.00 1.2 0.000 0.00 0.0 1,545 Eli Lilly & Co. 55.65 85,972.92 56.93 87,956.85 1.0 1.700 2,626.50 3.1 1,725 Emerson Electric 23.99 41,374.13 53.22 91,804.50 1.0 1.050 1,811.25 4.4 1,475 ExxonMobil 34.89 51,457.58 92.56 136,526.00 1.5 1.400 2,065.00 4.0 3,000 First Trust Dow Jones 24.76 74,280.00 26.05 78,150.00 0.9 0.000 0.00 0.0 Internet Index 4,750 Flextronics International 11.81 56,103.93 11.18 53,105.00 0.6 0.000 0.00 0.0 j Ltd. 5,500 General Electric 26.59 146,257.35 41.40 227,700.00 2.6 1.120 6,160.00 4.2 220 Google 505.87 111,291.15 567.27 124,799.40 1.4 0.000 0.00 0.0 5,025 Intel Corp. 18.36 92,242.67 25.86 129,946.50 1.5 0.450 2,261.25 2.5 1,000 International Business 104.04 104,039.27 117.80 117,800.00 1.3 1.600 1,600.00 1.5 Machines Corp. 3,100 J.B. Hunt Transport 23.62 73,231.57 26.30 81,530.00 0.9 0.360 1,116.00 1.5 Services Inc. 2,075 Johnson &Johnson 60.28 125,074.43 65.70 136,327.50 1.5 1.660 3,444.50 2.8 3,185 Kraft Foods Inc. 33.23 105,832.65 34.51 109,914.35 1.2 1.080 3,439.80 33 1,500 Northern Trust Corp. 56.85 85,272.15 66.27 99,405.00 1.1 1.000 1,500.00 1.8 3,650 Oracle Corp. 17.02 62,132.13 21.65 79,022.50 0.9 0.000 0.00 0.0 700 Parker Hannifin Corp. 81.99 57,394.96 111.83 78,281.00 0.9 1.260 882.00 1.5 3,000 Patterson-UTI Energy 22.26 66,792.90 22.57 67,710.00 0.8 0.480 1,440.00 2.2 Inc. 4,500 Powershares Dynamic 18.82 84,667.50 19.96 89,819.55 1.0 0.000 0.00 0.0 Networking 6,300 Powershares Water 17.96 113,150.25 21.35 134,505.00 1.5 0.053 334.66 0.3 Resource 1,600 Procter&Gamble 64.22 102,754.74 70.34 112,544.00 1.3 1.400 2,240.00 2.2 2,940 Seagate Technology 25.51 74,996.15 25.58 75,205.20 0.8 0.400 1,176.00 1.6 2,000 St. Jude Medical Inc. 37.54 75,079.60 44.07 88,140.00 1.0 0.000 0.00 0.0 4,000 Symantec Corp. 19.39 77,550.20 19.38 77,520.00 0.9 0.000 0.00 0.0 2,750 Teva Pharmaceuticals 38.62 106,218.70 44.47 122,292.50 1.4 0.340 935.00 0.9 2,375 Texas Instruments 29.83 70,846.83 36.59 86,901.25 1.0 0.400 950.00 1.3 1,625 The Technology Select 25.07 40,742.50 26.97 43,826.25 0.5 0.210 341.58 0.8 i Sec SPDR Fund 1,000 Transocean Inc. 96.73 96,734.80 113.05 113,050.00 1.3 0.000 0.00 0.0 2,000 Verizon 40.60 81,200.00 44.28 88,560.00 1.0 1.720 3,440.00 4.2 Communications 2,500 eBay Inc. 35.46 88,651.42 39.02 97,550.00 1.1 0.000 0.00 0.0 i, 1,335 iShares NASDAQ 82.18 109,713.64 83.00 110,805.00 1.2 0.000 0.00 0.0 Biotechnology 3,413,323.58 41228,243.90 47.5 64,178.43 2.1 1 LONGER INVESTMENTS INCORPORATED A Registered Inveshnent Advisor Longer Investments Inc. PORTFOLIO APPRAISAL Fayetteville Fire Pension and Relief Fund U/A DTD 6-18-86 September 30, 2007 Unit Total Market Pct. Unit Annual Cur. Quantity Security Cost Cost Price Value Assets Income Income Yield Preferred Debt Securities 4,575 G.E. Preferred 6.625% 25.41 116,233.24 24.90 113,917.50 1.3 1.656 7,577.34 6.5 AAA/AAA(C 6-28-07) 116,233.24 113,917.50 1.3 7,577.34 6.5 Mutual Funds-Equity 1,250.0000 Japan Smaller 11.62 14,526.13 10.38 12,975.00 0.1 1.660 2,075.00 14.3 Capitalization Fund Inc. 20,000.0000 iShares MSCI Japan 10.69 213,850.00 14.34 286,800.00 3.2 0.099 1,989.18 0.9 Index Fund 1,500.0000 iShares MSCI Taiwan 12.54 18,803.55 16.80 25,200.00 0.3 0.302 452.45 2.4 Index Fund 3,000.0000 iShares S&P Europe 82.03 246,094.10 119.20 357,600.00 4.0 2.083 6,248.48 2.5 350 Index 493,273.78 682,575.00 7.7 10,765.11 2.1 Corporate Bonds 50,000 NationsBank Corp. 99.79 49,894.00 100.33 50,165.55 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 66,687.00 101.09 65,706.88 0.7 6.700 4,355.00 6.5 Bank AAI/AA- (NC) 6.700% Due 08-15-08 50,000 Bankers Trust NY Corp 99.26 49,630.00 100.71 50,356.90 0.6 6.000 3,000.00 6.0 Subordinated Notes A2/A+ (NC) 6.000% Due 10-15-08 25,000 First Union Corp. 93.78 23,446.00 101.05 25,262.05 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 24,373.00 100.82 25,205.73 0.3 5.700 1,425.00 5.8 Medium Term Note AA2/A+ (NC) 5.700% Due 11-01-08 50,000 Hershey Foods Corp. 97.63 48,816.00 106.24 53,120.15 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 48,014.00 110.01 55,006.00 0.6 6.950 3,475.00 7.2 Branch Subordinated Notes AA2/AA(NC) 6.950%Due 07-22-13 50,000 IBM Corp. Debentures 100.01 50,004.00 110.23 55,116.20 0.6 7.000 3,500.00 7.0 Al/A+(Subject to make whole call) 7.000%Due 10-30-25 Accrued Interest 6,081.70 0.1 360,864.00 386,021.15 4.3 23,917.50 6.6 Government Agency j 100,000 Federal Home Loan 100.00 100,000.00 100.03 100,031.25 1.1 5.200 5,200.00 5.2 Bank(NC) 5.200% Due 02-14-08 2 LONGER INVESTMENTS INCORPORATED A Registued Investment Advisor Longer Investments Inc. PORTFOLIO APPRAISAL Fayetteville Fire Pension and Relief Fund U/A DTD 6-18-86 September 30, 2007 Unit Total Market Pct. Unit Annual Cur. Quantity Security Cost Cost Price Value Assets Income Income Yield 100,000 Fed Nat'l Mortgage 100.00 100,000.00 100.00 100,000.00 1.1 5.125 5,125.00 5.1 Assoc (Callable 10-3-07 @ 100, 1X) 5.125% Due 10-03-08 100,000 Federal Home Loan 100.00 100,000.00 100.13 100,125.00 1.1 5.100 5,100.00 5.1 Bank (Callable 12-26-07 @ 100, 1X) 5.100% Due 12-26-08 200,000 Federal Home Loan 100.00 200,000.00 100.31 200,625.00 2.3 5.100 10,200.00 5.1 Bank (Callable 5-20-08 @ 100, IX) 5.100% Due 11-20-09 335,000 Federal Home Loan 100.00 335,000.00 100.00 335,000.00 3.8 5.125 17,168.75 5.1 Bank (Callable 4-9-08 @ 100, quarterly) 5.125% Due 04-09-10 75,000 Federal Home Loan 100.00 75,000.00 100.00 75,000.00 0.8 5.050 3,787.50 5.1 Bank (Callable 9-10-08 @ 100, 1X) 5.050%Due 09-10-10 50,000 Tennessee Valley 98.95 49,474.00 103.16 51,579.05 0.6 5.625 2,812.50 5.7 Authority (NC) 5.625% Due 01-18-11 350,000 Federal Home Loan 100.00 350,000.00 100.94 353,281.25 4.0 5.250 18,375.00 5.3 Bank (Callable 2-9-09 @ 100, IX) 5.250%Due 02-09-11 i 65,000 Federal Home Loan 100.00 65,000.00 100.72 65,467.19 0.7 5.020 3,263.00 5.0 Bank (Callable 4-13-09 @ 100, 1X) 5.020% Due 04-13-11 125,000 Federal Home Loan 100.00 125,000.00 101.31 126,640.63 1.4 5.500 6,875.00 5.5 Bank (Callable 2-18-09 @ 100, IX) 5.500% Due 08-18-11 "j 200,000 Fed Nat'l Mortgage 100.00 200,000.00 100.78 201,562.50 2.3 5.400 10,800.00 5.4 Assoc(Callable 9-15-08 @ 100, 1X) 5.400%Due 09-15-11 70,000 Federal Home Loan 100.00 70,000.00 100.16 70,109.38 0.8 5.300 3,710.00 5.3 Bank (Callable 12-28-07 @ 100, quarterly) 5.300% Due 12-28-11 100,000 Federal Home Loan 100.00 100,000.00 100.22 100,218.75 1.1 5.020 5,020.00 5.0 Bank (Callable 12-12-08 @ 100, 1X) 5.020% Due 06-12-12 250,000 Federal Home Loan 100.00 250,000.00 100.00 250,000.00 2.8 5.000 12,500.00 5.0 Bank (Callable 10-1-10 @ 100, 1X) 5.000%Due 10-01-12 55,556 Federal Home Loan 100.00 55,555.56 99.78 55,434.03 0.6 5.080 2,822.22 5.1 Bank (Callable since 10-3-03 @ 100, CC) 5.080%Due 10-03-12 i 3 LONGER INVESTMENTS INCORPORATED A Registered Investment Advisor Longer Investments Inc. PORTFOLIO APPRAISAL Fayetteville Fire Pension and Relief Fund U/A DTD 6-18-86 September 30, 2007 Unit Total Market Pct. Unit Annual Cur. Quantity Security Cost Cost Price Value Assets Income Income Yield 250,000 Federal Home Loan 100.00 250,000.00 99.66 249,140.63 2.8 5.000 12,500.00 5.0 Bank (Callable since 10-5-07 @ 100, CC) 5.000%Due 10-05-12 100,000 Federal Home Loan 100.00 100,000.00 100.63 100,625.00 1.1 5.250 5,250.00 5.3 Bank (Callable 11-14-08 @ 100, 1X) 5.250%Due 11-14-12 75,000 Federal Home Loan 100.00 75,000.00 99.84 74,882.81 0.8 5.375 4,031.25 5.4 Bank (Callable since 11-7-05 @ 100, CC) 5.375% Due 11-07-13 125,000 Federal Farm Credit 100.00 125,000.00 99.19 123,984.38 1.4 5.300 6,625.00 5.3 Bank (Callable since 6-22-07 @ 100, CC) 5.300%Due 06-22-15 100,000 Federal Home Loan 100.00 100,000.00 101.54 101,543.50 1.1 6.000 6,000.00 6.0 Mortgage Corp. (Callable 4-28-09 @ I 100, quarterly) 6.000% Due 04-28-16 210,000 Fed Nat'l Mortgage 100.00 210,000.00 100.84 211,771.88 2.4 6.000 12,600.00 6.0 Assoc (Callable { 10-24-08 @ 100, quarterly) 6.000%Due 10-24-16 200,000 Federal Home Loan 100.00 200,000.00 103.63 207,250.00 2.3 6.000 12,000.00 6.0 Bank (Callable 1-3-12 @ 100, IX) 6.000%Due 07-03-17 i Accrued Interest 40,540.56 0.5 3,235,029.56 3,294,812.77 37.0 171,765.22 5.3 Cash and Equivalents Dividends Accrued 3,629.12 3,629.12 0.0 0.000 0.00 0.0 Money Market 187,821.22 187,821.22 2.1 4.545 8,536.47 4.5 191,450.34 191,450.34 2.2 8,536.47 4.5 TOTAL PORTFOLIO 7,810,174.50 8,897,020.66 100.0 286,740.08 3.6 i 4 LONGER INVESTMENTS INCORPORATED A Registered Investment Advisor Longer Investments Inc. REALIZED GAINS AND LOSSES WITH INCOME AND EXPENSES SUMMARY Fayetteville Fire Pension and Relief Fund U/A DTD 6-I8-86 From 01-01-07 Through 09-30-07 Realized Gains and Losses Short-Term 99,126.89 Long-Term 208,609.48 TOTAL REALIZED GAINS AND LOSSES 307,736.37 Income and Expenses Income: Common Stock 54,944.75 Preferred Debt Securities 6,345.48 Corporate Bonds 30,055.65 Government Bonds 4,704.02 Government Agency 116,033.93 Treasury Bills 2,008.12 Cash and Equivalents 6,854.82 Certificate of Deposit 988.05 Expenses: Automated Cash Mgmt. 217.70 Foreign Tax on Dividends 119.07 Northern Trust Fee 4,475.00 Management Fee 52,759.64 NET INCOME 1649363.41 i LONGER INVESTMENTS INCORPORATED A Registered Investment Advisor Longer Investments Inc. CONTRIBUTIONS/WITHDRAWALS Fayetteville Fire Pension and Relief Fund U/A DTD 6-18-86 From 01-01-07 To 09-30-07 Tran Trade Settle Broker Code Date Date Security Amount Quantity Code Commission CONTRIBUTIONS c+ dp 07-26-07 07-26-07 Money Market 55,000.00 55,000.00 WITHDRAWALS wd 01-04-07 01-11-07 Money Market 117,000.00 wd 02-01-07 02-01-07 Money Market 80,000.00 wd 03-05-07 03-08-07 Money Market 108,000.00 wd 04-01-07 04-01-07 Money Market 95,000.00 wd 05-01-07 05-01-07 Money Market 100,000.00 wd 06-01-07 06-01-07 Money Market 20,000.00 wd 07-02-07 07-02-07 Money Market 83,000.00 wd 09-01-07 09-01-07 Money Market 110,000.00 713,000.00 EXPENSE ACCOUNTS dp 01-31-07 01-31-07 Automated Cash Mgmt. 26.39 dp 02-28-07 02-28-07 Automated Cash Mgmt. 17.15 1 dp 03-31-07 03-31-07 Automated Cash Mgmt. 32.13 dp 04-30-07 04-30-07 Automated Cash Mgmt. 12.34 dp 05-31-07 05-31-07 Automated Cash Mgmt. 9.98 dp 06-30-07 06-30-07 Automated Cash Mgmt. 16.29 dp 07-31-07 07-31-07 Automated Cash Mgmt. 13.89 dp 08-31-07 08-31-07 Automated Cash Mgmt. 55.60 dp 09-30-07 09-30-07 Automated Cash Mgmt. 33.93 dp 04-13-07 04-13-07 Foreign Tax on Dividends 13.19 dp 06-05-07 06-05-07 Foreign Tax on Dividends 39.66 i dp 07-13-07 07-13-07 Foreign Tax on Dividends 12.32 dp 07-27-07 07-27-07 Foreign Tax on Dividends 5.96 dp 08-24-07 08-24-07 Foreign Tax on Dividends 5.96 dp 09-06-07 09-06-07 Foreign Tax on Dividends 41.98 dp 01-31-07 01-31-07 Northern Trust Fee 498.52 dp 02-28-07 02-28-07 Northern Trust Fee 484.22 dp 03-30-07 03-30-07 Northern Trust Fee 504.19 dp 04-30-07 04-30-07 Northern Trust Fee 486.36 dp 05-31-07 05-31-07 Northern Trust Fee 509.18 dp 06-29-07 06-29-07 Northern Trust Fee 509.40 dp 07-31-07 07-31-07 Northern Trust Fee 507.75 dp 08-31-07 08-31-07 Northern Trust Fee 490.66 dp 09-28-07 09-28-07 Northern Trust Fee 484.72 4,811.77 I AFTER FEE PERFORMANCE EXPENSE ACCOUNTS dp 01-08-07 01-08-07 Management Fee 17,793.35 dp 04-09-07 04-09-07 Management Fee 17,361.81 dp 07-09-07 07-09-07 Management Fee 17,604.48 52,759.64 PORTFOLIO NET TOTAL -715,571.41 i E I 1 LONGER INVESTMENTS INCORPORATED A Registered bivestment Advisor Longer Investments Inc. CONTRIBUTIONS/WITHDRAWALS Fayetteville Fire Pension and Relief Fund U/A DTD 6-18-86 From 01-01-07 To 09-30-07 Tran Trade Settle Broker Code Date Date Security Amount Quantity Code Commission EXPENSE ACCOUNTS PAID BY CLIENT 0.00 AFTER FEE PERFORMANCE EXPENSE ACCOUNTS PAID BY CLIENT 0.00 GRAND TOTAL -715,571.41 I i I i i z LONGER INVESTMENTS INCORPORATED b A Registered Investment Advisor September 30, 2007 Fayetteville Fire Pension and Relief Fund U/A DTD 6-18-86 113 West Mountain Fayetteville, Arkansas 72701 Longer Investments Inc. STATEMENT OF MANAGEMENT FEES For The Period Ending September 30, 2007 Portfolio Valuation as of 09-30-07 $ 8,850,398.40 3,000,000 @1.000% per annum 7,500.00 3,000,000 @0.750% per annum 5,625.00 2,850,398 @ 0.650% per annum 4,631.90 Quarterly Management Fee $ 17,756.90 1 TOTAL DUE AND PAYABLE $ 17,756.90 Pursuant to Section 204-3 of the Investment Advisors Act of 1940, Part II of Form ADV is available to all clients of Longer Investments hic. This statement may be obtained by submitting a written request to the company. As instructed, the management fee has been billed to the account. It is the responsibility of the client to verify the accuracy of the fee calculation. The custodian will not determine if the fee is properly calculated. LONGER INVESTMENTS INCORPORATED A Registered Investment Advisor I Longer Investments Inc. REALIZED GAINS AND LOSSES Fayetteville Fire Pension and Relief Fund U/A DTD 6-18-86 From 01-01-07 Through 09-30-07 Gain Or Loss Open Close Cost Date Date Quantity Security Basis Proceeds Short Term Long Term 11-22-06 01-03-07 -27 Dell January 25 Calls 2,511.00 7,464.76 4,953.76 10-13-06 01-03-07 750 Schlumberger, LTD 44,377.50 45,844.89 1,467.39 12-29-06 01-04-07 2,130 Chico's FAS Inc. 44,666.53 44,329.04 -337.49 12-28-06 01-04-07 2,350 ProShares Ultrashort Dow 30 134,573.22 134,509.63 -63.59 11-24-06 01-05-07 1,000 streetTRACKS Gold Shares 63,560.00 59,885.25 -3,674.75 03-10-06 01-05-07 2,000 Powershares Dynamic 33,940.00 35,668.90 1,728.90 Networking 06-22-06 01-05-07 1,000 Powershares Dynamic 15,170.00 17,834.45 2,664.45 Networking 11-24-06 01-09-07 1,550 streetTRACKS Gold Shares 98,518.00 93,237.23 -5,280.77 11-17-06 01-19-07 -10 B.P. Amoco PLC January 60 4,671.80 7,016.70 2,344.90 Calls 11-17-06 01-22-07 -3 B.P. Amoco PLC January 60 2,105.01 2,105.01 0.00 Calls 12-19-02 01-22-07 300 B.P. Amoco PLC A.D.S. 11,898.00 20,074.45 8,176.45 11-22-06 01-22-07 300 Caterpillar Inc. 18,803.49 17,519.67 -1,283.82 05-02-05 01-22-07 1,500 Caterpillar Inc. 65,915.02 87,598.35 21,683.32 11-24-06 01-22-07 300 streetTRACKS Gold Shares 19,068.00 18,941.69 -126.31 11-28-06 01-22-07 1,150 streetTRACKS Gold Shares 72,972.79 72,609.80 -362.99 09-19-06 01-22-07 1,175 Time-Wamer, hie. 20,497.52 26,413.19 5,915.67 09-18-06 01-22-07 325 Time-Wamer, hie. 5,590.00 7,305.77 1,715.77 01-04-07 01-25-07 250 American International 17,925.00 17,204.35 -720.65 Group hie. 12-07-06 01-25-07 275 American International 19,401.00 18,924.78 -476.22 Group hie. j 10-18-06 01-25-07 1,350 American hiternational 91,147.68 92,903.46 1,755.78 i Group Inc. 10-13-06 01-25-07 775 Schlumberger, LTD 45,856.75 49,160.06 3,303.31 12-11-06 01-26-07 1,750 BB &T Corp. 76,986.00 73,418.99 -3,567.01 10-26-06 01-30-07 1,650 Gannett Co., hie. 95,998.16 94,966.79 -1,031.37 02-23-06 02-01-07 1,500 Health Care Select Sector 49,095.00 52,004.15 2,909.15 SPDR Fund 04-20-06 02-01-07 350 Health Care Select Sector 10,947.96 12,134.30 1,186.34 SPDR Fund 01-03-07 02-02-07 425 Dell Computer Corporation 11,056.38 10,115.07 -941.31 09-05-06 02-02-07 2,700 Dell Computer Corporation 61,530.57 64,260.44 2,729.87 02-01-07 02-06-07 460 Avon Products hie. 15,985.00 17,486.64 1,501.64 02-21-06 02-06-07 350,000 Federal Home Loan Bank(C 350,000.00 349,303.50 -696.50 9-14-06 @ 100, 1X) 5.020% Due 09-14-07 02-06-07 02-08-07 850 HSBC Holdings PLC ADS 78,557.00 76,081.33 -2,475.67 02-01-07 02-16-07 1,150 Amgen hie. 79,895.56 76,683.44 -3,212.12 02-11-02 02-20-07 40,000 Capital One Bank FSB Falls 40,000.00 40,000.00 0.00 Church, VA BAAl/NR(NC) FDIC-Insured 4.900% Due 02-20-07 10-09-06 02-22-07 525 International Business 43,763.47 51,378.86 7,615.38 Machines Corp. 01-22-07 02-22-07 2,500 Sara Lee Corp. 43,275.00 42,923.68 -351.32 i1 LONGER INVESTMENTS INCORPORATED A Registered Investment Advisor Longer Investments Inc. REALIZED GAINS AND LOSSES Fayetteville Fire Pension and Relief Fund U/A DTD 6-I8-86 From 01-01-07 Through 09-30-07 i Gain Or Loss Open Close Cost Date Date Quantity Security Basis Proceeds Short Term Long Term 02-01-07 02-22-07 600 Sara Lee Corp. 10,385.10 10,301.68 -83.42 01-24-07 02-22-07 1,335 Sara Lee Corp. 22,935.30 22,921.24 -14.06 10-09-06 02-23-07 825 International Business 68,771.17 80,586.82 11,815.64 Machines Corp. 01-29-07 02-23-07 750 J.B. Hunt Transport Services 17,893.73 20,828.28 2,934.55 Inc. 01-04-07 02-23-07 315 J.B. Hunt Transport Services 7,334.85 8,747.88 1,413.03 Inc. 12-11-06 02-23-07 75 J.B. Hunt Transport Services 1,662.52 2,082.83 420.31 Inc. 12-14-06 03-01-07 2,750 Par Pharmaceutical 58,763.10 66,443.45 7,680.35 12-07-06 03-01-07 1,550 Barr Pharmaceuticals Inc. 79,283.74 78,551.58 -732.16 02-22-07 03-01-07 410 Electronic Arts Inc. 21,765.13 20,427.37 -1,337.76 02-20-07 03-01-07 1,290 Electronic Arts Inc. 67,307.56 64,271.50 -3,036.06 02-08-07 03-02-07 1,075 Gap, hic. 21,591.05 19,563.21 -2,027.84 02-01-07 03-02-07 2,250 Gap, Inc. 43,965.00 40,946.26 -3,018.74 02-01-07 03-07-07 325 Ceradyne Inc. 17,856.25 17,478.19 -378.06 01-31-07 03-07-07 1,500 Ceradyne hic. 81,282.60 80,668.57 -614.03 03-05-07 03-08-07 560 Diamonds Trust Series I 68,022.14 68,757.70 735.56 02-13-07 03-08-07 200.0000 iShares FTSE China Index 21,003.68 19,756.39 -1,247.29 Fund 03-05-07 03-09-07 700 Diamonds Trust Series I 85,027.67 85,920.82 893.15 02-27-06 03-14-07 200,000 Federal Home Loan 200,000.00 200,000.00 0.00 Mortgage Corp. (C 3-14-07 @ 100, 1 X) 5.100% Due 03-14-08 02-14-07 03-15-07 835 Anadarko Petroleum Corp. 35,161.85 33,184.30 -1,977.55 08-05-04 03-15-07 1,000 Anadarko Petroleum Corp. 29,024.15 39,741.67 10,717.52 12-11-06 03-23-07 1,150 J.B. Hunt Transport Services 25,491.94 31,832.09 6,340.15 Inc. 03-21-07 03-26-07 170 Google 76,302.20 78,723.22 2,421.02 01-24-07 03-28-07 2,020 Powershares Dynamic 36,501.40 36,483.27 -18.13 Networking 01-24-07 03-29-07 1,480 Powershares Dynamic 26,743.60 26,632.49 -111.11 Networking 01-31-07 04-12-07 1,750 Bed Bath &Beyond 73,120.60 69,811.85 -3,308.75 03-13-06 04-13-07 285 Newell Rubbermaid Inc. 7,324.50 8,677.12 1,352.62 09-30-05 04-13-07 1,250 Hain Celestial Group, Inc. 24,359.63 37,752.05 13,392.42 04-15-05 04-16-07 250 Chevron Corp. 13,242.25 19,259.71 6,017.46 10-15-02 04-16-07 250 Chevron Corp. 9,245.71 19,259.70 10,013.99 04-12-07 04-16-07 215 Powershares Dynamic Oil & 4,717.00 4,815.93 98.93 Gas Services 03-13-07 04-16-07 735 Powershares Dynamic Oil & 14,810.69 16,463.74 1,653.05 Gas Services 03-21-07 04-16-07 265 Peabody Energy Corp 10,320.69 12,665.98 2,345.29 03-29-07 04-17-07 -10 B.P. Amoco PLC April 60 9,651.85 5,916.90 -3,734.95 Calls 10-17-06 04-18-07 300 Johnson &Johnson 19,812.00 19,298.70 -513.30 06-07-06 04-18-07 175 Johnson &Johnson 10,752.58 11,257.58 505.00 2 LONGER INVESTMENTS INCORPORATED A Registered Investment Advisor Longer Investments Inc. REALIZED GAINS AND LOSSES Fayetteville Fire Pension and Relief Fund U/A DTD 6-18-86 From 01-01-07 Through 09-30-07 Gain Or Loss Open Close Cost Date Date Quantity Security Basis Proceeds Short Term Long Term 05-12-06 04-18-07 225 Johnson &Johnson 13,303.01 14,474.03 1,171.02 02-23-07 04-18-07 800 Newmont Mining Corporation 37,863.92 35,584.73 -2,279.19 03-13-06 04-18-07 565 Newell Rubbermaid Inc. 14,520.50 17,283.31 2,762.81 04-03-06 04-18-07 400 Newell Rubbermaid Inc. 10,120.00 12,235.97 2,115.97 03-09-06 04-18-07 385 Newell Rubbermaid Inc. 9,649.72 11,777.12 2,127.40 09-18-06 04-18-07 710 AT& T 22,436.00 27,608.42 5,172.42 03-13-07 04-19-07 3,000 Powershares Dynamic Oil & 60,451.80 65,563.99 5,112.19 Gas Services 03-21-07 04-20-07 235 Peabody Energy Corp 9,152.31 10,845.11 1,692.80 03-21-07 04-26-07 1,350 Peabody Energy Corp 52,577.10 66,528.47 13,951.37 04-18-07 04-26-07 785 Danaher Corp. 56,567.10 55,176.80 -1,390.30 02-23-07 04-26-07 2,000 Newmont Mining Corporation 94,659.80 85,031.49 -9,628.31 12-05-06 04-30-07 750 US Bancorp 25,455.00 25,875.43 420.43 03-09-06 05-07-07 2,365 Newell Rubbermaid Inc. 59,276.83 72,717.90 13,441.07 04-19-06 05-07-07 285 Newell Rubbermaid hic. 7,132.25 8,763.05 1,630.80 04-17-07 05-09-07 -10 B.P. Amoco PLC May 60 9,547.30 9,547.30 0.00 Calls 03-22-07 05-09-07 275 Cameco Corp. 10,820.40 13,914.78 3,094.38 05-09-07 05-09-07 1,000 B.P. Amoco PLC A.D.S. 67,720.00 69,476.38 1,756.38 01-29-07 05-11-07 750 Bristol Myers Squibb 20,857.50 22,462.15 1,604.65 01-08-07 05-11-07 2,500 Bristol Myers Squibb 65,011.25 74,873.85 9,862.60 04-03-07 05-11-07 625 Whole Foods Market, Inc. 28,634.25 25,649.41 -2,984.84 04-03-07 05-14-07 1,250 Whole Foods Market, Inc. 57,268.50 49,729.98 -7,538.52 05-17-07 05-30-07 1,850 Yahoo! Inc. 53,381.75 51,688.20 -1,693.55 12-07-06 06-01-07 425 Computer Sciences Corp. 22,691.94 23,845.36 1,153.42 01-04-07 06-01-07 260 Disney Company 8,983.05 9,154.69 171.64 12-06-05 06-01-07 500 Disney Company 12,639.55 17,605.17 4,965.62 12-05-06 06-01-07 500 US Bancorp 16,970.00 17,282.23 312.23 04-26-07 06-01-07 1,500 The Technology Select Sec 37,020.00 38,384.41 1,364.41 SPDR Fund 05-14-07 06-07-07 1,200.0000 iShares MSCI Hong Kong 20,652.00 19,559.69 -1,092.31 Index Fund 12-14-05 06-07-07 270 Bank of America Corp. 12,685.09 13,486.29 801.20 04-18-07 06-12-07 200 American Express Co. 11,692.58 12,473.80 781.22 07-11-05 06-12-07 300 Barclays PLC 11,941.41 17,315.73 5,374.32 12-19-02 06-12-07 500 B.P. Amoco PLC A.D.S. 19,830.00 33,559.48 13,729.48 06-18-04 06-12-07 350 Citigroup 16,649.50 18,483.21 1,833.71 08-20-02 06-12-07 330 Emerson Electric 7,915.05 15,621.96 7,706.91 - 05-05-06 06-12-07 200 Coca-Cola 8,532.29 10,217.84 1,685.55 04-19-06 06-12-07 150 Coca-Cola 6,279.27 7,663.38 1,384.11 10-18-06 06-12-07 185 Northern Trust Corp. 11,073.26 11,719.42 646.16 03-13-07 06-12-07 500 Oracle Corp. 8,609.70 9,430.35 820.65 03-09-07 06-12-07 275 Time-Wamer, Inc. 5,457.02 5,590.66 133.64 02-01-07 06-12-07 410 Texas Instruments 12,831.35 14,403.07 1,571.72 02-16-07 06-12-07 115 Texas Instruments 3,544.30 4,039.89 495.59 07-11-06 06-12-07 2,750 US Bancorp 85,815.68 93,526.06 7,710.38 ,., 12-07-06 06-13-07 1,325 Computer Sciences Corp. 70,745.46 72,118.64 1,373.18 02-01-07 06-13-07 250 Computer Sciences Corp. 13,279.60 13,607.29 327.69 04-19-06 06-15-07 350 Coca-Cola 14,651.63 18,105.29 3,453.66 I 3 i LONGER INVESTMENTS INCORPORATED vi A Registered Investment Advisor Longer Investments Inc. REALIZED GAINS AND LOSSES Fayetteville Fire Pension and Relief Fund U/A DTD 6-18-86 From 01-01-07 Through 09-30-07 Gain Or Loss Open Close Cost Date Date Quantity Security Basis Proceeds Short Term Long Term 04-06-06 06-15-07 50 Coca-Cola 2,088.50 2,586.47 497.97 02-16-07 06-15-07 750 Walmart Stores 36,621.15 37,121.58 500.43 09-30-05 06-18-07 500 Hain Celestial Group, Inc. 9,743.85 14,585.57 4,841.72 12-06-05 06-19-07 1 Citadel Broadcasting 4.30 5.92 1.62 12-06-05 06-20-07 76 Citadel Broadcasting 328.90 484.20 155.30 12-27-05 06-20-07 115 Citadel Broadcasting 480.41 735.80 255.39 06-15-07 06-20-07 1,500 Best Buy 72,409.05 67,993.95 -4,415.10 06-01-07 06-20-07 1,065 Western Digital Corp. 20,384.10 20,345.12 -38.98 09-30-05 06-25-07 1,000 Hain Celestial Group, Inc. 19,487.70 28,349.26 8,861.56 02-23-07 06-26-07 115 Devon Energy Corp. 7,628.90 8,846.81 1,217.91 01-29-07 06-26-07 200 Ingersoll-Rand 8,226.28 10,844.65 2,618.37 03-13-07 06-26-07 275 Oracle Corp. 4,735.34 5,307.42 572.08 03-01-07 06-26-07 225 Oracle Corp. 3,830.06 4,342.43 512.37 08-20-02 06-27-07 325 Emerson Electric 7,795.12 15,339.76 7,544.63 05-31-07 06-27-07 185 Kraft Foods Inc. 6,349.20 6,632.14 282.94 03-07-06 06-27-07 250 AT& T 6,585.00 9,979.84 3,394.84 10-02-02 06-27-07 800 G.E. Preferred 6.625% 21,352.00 19,791.69 -1,560.31 AAA/AAA(C 6-28-07) 02-23-07 07-02-07 220 Devon Energy Corp. 14,594.43 17,307.26 2,712.83 06-07-07 07-02-07 500 Norfolk Southern 27,600.00 26,800.54 -799.46 04-12-07 07-02-07 1,250 Norfolk Southern 65,219.00 67,001.35 1,782.35 j 03-07-06 07-02-07 750 AT&T 19,755.00 31,103.45 11,348.45 06-01-07 07-02-07 1,250 Western Digital Corp. 23,925.00 24,499.62 574.62 06-26-07 07-06-07 1,425 Parametric Technology Corp. 30,138.75 24,712.83 -5,425.92 06-01-07 07-06-07 2,250 Parametric Technology Corp. 42,997.50 39,020.25 -3,977.25 j 06-01-07 07-09-07 2,250 Symantec Corp. 45,032.85 44,054.32 -978.53 06-14-07 07-09-07 1,685 Symantec Corp. 32,982.70 32,991.79 9.09 06-18-07 07-13-07 525 Patterson-UTI Energy Inc. 14,243.25 13,141.97 -1,101.28 03-26-07 07-13-07 2,750 Patterson-UTI Energy Inc. 64,267.50 68,838.86 4,571.36 07-09-07 07-13-07 500 International Rectifier Corp. 19,316.80 19,465.50 148.70 07-06-07 07-13-07 1,750 International Rectifier Corp. 66,412.50 68,129.25 1,716.75 03-22-07 07-17-07 725 Cameco Corp. 28,526.50 34,020.02 5,493.52 04-19-07 07-23-07 900 Powershares Dynamic 17,062.38 18,188.72 1,126.34 Semiconductors 07-23-07 07-24-07 340 Wyeth 19,291.09 17,186.87 -2,104.22 04-03-07 07-25-07 1,100 American International 74,624.00 74,424.53 -199.47 Group hic. 04-16-07 07-25-07 500 American International 33,750.15 33,829.33 79.18 Group Inc. 12-14-05 07-25-07 2,300 Bank of America Corp. 108,058.14 109,409.78 1,351.64 03-22-07 07-25-07 1,000 Cameco Corp. 39,346.90 41,992.95 2,646.05 03-07-06 07-25-07 325 AT&T 8,560.50 13,076.95 4,516.45 03-09-07 07-25-07 825 Time-Wamer, Inc. 16,371.05 16,665.32 294.27 02-16-07 07-25-07 35 Texas Instruments 1,078.70 1,290.78 212.08 12-18-06 07-25-07 730 Texas Instruments 21,893.87 26,921.98 5,028.11 07-23-07 07-26-07 1,200 Wyeth 68,086.20 59,757.52 -8,328.68 03-09-07 07-27-07 100 Time-Warner, Inc. 1,984.37 1,949.97 -34.40 09-18-06 07-27-07 3,675 Time-Wamer, Inc. 63,210.00 71,661.40 8,451.40 04-18-07 07-30-07 1,675 American Express Co. 97,925.36 98,682.11 756.75 j i 4 LONGER INVESTMENTS INCORPORATED A Registered Investment Advisor Longer Investments Inc. REALIZED GAINS AND LOSSES Fayetteville Fire Pension and Relief Fund U/A DTD 6-I8-86 From 01-01-07 Through 09-30-07 Gain Or Loss Open Close Cost Date Date Quantity Security Basis Proceeds Short Term Long Term { 07-26-07 07-30-07 475 Goldman Sachs Group Inc. 90,978.89 92,208.86 1,229.97 01-29-07 07-30-07 1,700 higersoll-Rand 69,923.38 85,294.66 15,371.28 04-19-07 07-30-07 2,500 Powershares Dynamic 47,395.50 47,530.52 135.02 Semiconductors 07-13-07 07-31-07 1,250 Amgen Inc. 71,650.00 67,770.84 -3,879.16 07-24-07 07-31-07 300 Amgen Inc. 17,173.50 16,265.00 -908.50 05-17-07 07-31-07 550 Avon Products Inc. 20,927.50 19,851.28 -1,076.22 02-01-07 07-31-07 1,750 Avon Products Inc. 60,812.50 63,163.18 2,350.68 07-13-07 08-01-07 1,750 Amphenol Corp. 65,088.28 62,076.27 -3,012.01 07-18-07 08-01-07 500 Amphenol Corp. 18,589.60 17,736.08 -853.52 07-11-05 08-02-07 840 Barclays PLC 33,435.95 46,675.22 13,239.27 08-06-07 08-07-07 500 Goldman Sachs Group Inc. 89,008.90 94,962.29 5,953.39 08-06-07 08-07-07 1,665 Petsmart Inc. 53,455.99 51,511.81 -1,944.18 08-06-07 08-07-07 500 Standard &Poors Depository 72,061.65 73,604.02 1,542.37 Receipts 10-18-06 08-09-07 125 Northern Trust Corp. 7,481.94 8,061.10 579.16 07-24-06 08-09-07 75 Northern Trust Corp. 4,263.61 4,836.66 573.05 08-06-07 08-09-07 250 Standard &Poors Depository 36,030.82 36,541.94 511.11 Receipts 08-06-07 08-10-07 1,250 Standard &Poors Depository 180,154.12 181,156.85 1,002.72 Receipts 08-09-07 08-10-07 2,615 Financial Select Sector SPDR 88,916.02 86,764.37 -2,151.65 Fund 10-02-98 08-13-07 75,000 Merrill Lynch& Co. hic. 74,442.00 76,087.50 1,645.50 Global Bonds AA3/AA- (NC) 6.500% Due 07-15-18 01-08-01 08-13-07 50,000 National City Corp. Sub. 48,326.00 51,800.00 3,474.00 Notes A2/A- (NC) 6.875% Due 05-15-19 02-01-07 08-13-07 250 Parker Hannifin Corp. 21,089.63 24,611.95 3,522.32 01-29-07 08-13-07 100 Parker Hannifin Corp. 8,199.28 9,844.78 1,645.50 08-09-07 08-13-07 2,610 Financial Select Sector SPDR 88,746.00 87,834.55 -911.45 Fund 09-07-99 08-13-07 50,000 Dell Computer Corp. 47,731.00 51,150.00 3,419.00 Debentures A2/A- (Subject to make whole call) 7.100% Due 04-15-28 12-13-00 08-13-07 50,000 U. S. Treasury Bond 50,004.00 52,476.56 2,472.56 5.500% Due 08-15-28 01-02-01 08-13-07 25,000 U. S. Treasury Bond 24,817.00 25,468.75 651.75 5.250% Due 11-15-28 02-23-99 08-13-07 25,000 U. S. Treasury Bond 24,657.00 25,468.75 811.75 5.250% Due 11-15-28 08-09-07 08-14-07 2,250 Cameco Corp. 88,057.13 88,511.17 454.04 07-06-07 08-15-07 2,650 Goldcorp Inc. 66,998.63 62,437.28 -4,561.35 08-20-02 08-16-07 300 Emerson Electric 7,195.50 13,162.20 5,966.70 02-09-06 08-16-07 1,500 Walmart Stores 68,487.75 64,962.65 -3,525.10 08-14-07 08-17-07 1,000 Standard &Poors Depository 143,904.30 145,497.77 1,593.47 Receipts i 5 LONGER INVESTMENTS INCORPORATED A Registered Investment Advisor i Longer Investments Inc. REALIZED GAINS AND LOSSES Fayetteville Fire Pension and Relief Fund U/A DTD 6-18-86 From 01-01-07 Through 09-30-07 Gain Or Loss Open Close Cost Date Date Quantity Security Basis Proceeds Short Term Long Term 08-14-07 08-20-07 1,000 Standard &Poors Depository 143,904.30 144,653.78 749.48 Receipts 08-16-07 08-23-07 330 Diamonds Trust Series I 42,255.87 43,533.16 1,277.29 08-22-06 08-24-07 525,000 Federal Home Loan Bank(C 525,000.00 525,000.00 0.00 8-24-07 @ 100, 1X) 5.520% Due 02-24-10 08-16-07 08-27-07 1,000 Diamonds Trust Series I 128,048.10 133,516.25 5,468.15 06-20-07 09-07-07 1,200 United Parcel Service Inc. 88,790.04 88,738.64 -51.40 04-16-07 09-10-07 775 Health Care Select Sector 27,644.25 26,616.97 -1,027.28 SPDR Fund 07-25-07 09-10-07 475 Health Care Select Sector 16,705.75 16,313.62 -392.13 SPDR Fund 07-09-07 09-11-07 1,500 Varian Medical Systems Inc. 66,749.55 59,995.48 -6,754.07 07-25-07 09-12-07 1,525 Health Care Select Sector 53,634.25 53,061.56 -572.69 SPDR Fund 04-20-06 09-12-07 1,225 Health Care Select Sector 38,317.88 42,623.22 4,305.34 SPDR Fund 08-01-07 09-12-07 750 The Technology Select Sec 19,275.00 19,503.45 228.45 SPDR Fund 07-27-07 09-13-07 300 St. Jude Medical hie. 12,983.16 13,792.14 808.98 01-29-07 09-13-07 250 St. Jude Medical hie. 10,364.60 11,493.45 1,128.85 j 07-05-07 09-17-07 450 Barrick Gold Corp. 13,540.50 16,866.19 3,325.69 08-01-07 09-18-07 2,625 The Technology Select Sec 67,462.50 67,872.26 409.76 SPDR Fund 09-12-06 09-19-07 110,000 Federal Home Loan Bank 110,000.00 110,000.00 0.00 (Callable 9-19-07 @ 100, 1X) 5.280% Due 09-19-08 09-04-07 09-24-07 3,650 Parametric Technology Corp. 65,597.80 59,589.71 -6,008.09 08-08-07 09-25-07 2,750 Lowe's Companies hie. 78,631.30 79,277.98 646.68 08-09-07 09-25-07 415 Lowe's Companies Inc. 11,547.96 11,963.77 415.81 09-04-07 09-28-07 500 First Trust Dow Jones 12,380.00 12,969.80 589.80 Internet Index TOTAL GAINS 233,996.00 213,694.89 TOTAL LOSSES -134,869.11 -5,085.41 8,955,728.22 9,263,464.59 99,126.89 208,609.48 TOTAL REALIZED GAIN/LOSS 307,736.37 NO CAPITAL GAINS DISTRIBUTIONS This realized gain/loss report has been prepared using cost basis and acquisition date information provided by third parties. While every effort has been made to verify the accuracy of this information, it is not possible to unconditionally confirm that it is correct. Longer Investments Inc. can only attest to the accuracy of transactions that were executed under its direction. 6 LONGER INVESTMENTS INCORPORATED A Registered Investment Advisor Longer Investments Inc. INCOME AND EXPENSES Fayetteville Fire Pension and Relief Fund U/A DTD 6-18-86 From 01-01-07 Through 09-30-07 Security Ex-Date Pay-Date Amount i Common Stock AT & T 01-08-07 02-01-07 1,494.55 04-05-07 05-01-07 1,494.55 07-06-07 08-01-07 887.50 3,876.60 American Express Co. 07-03-07 08-10-07 251.25 American International Group Inc. 05-30-07 06-15-07 264.00 Amphenol Corp. 09-10-07 10-03-07 20.78 Anadarko Petroleum Corp. 03-12-07 03-28-07 165.15 Applied Materials Inc. 02-13-07 03-08-07 237.50 05-15-07 06-07-07 285.00 08-14-07 09-06-07 285.00 807.50 Avon Products Inc. 02-13-07 03-01-07 323.75 05-16-07 06-01-07 323.75 647.50 B.P. Amoco PLC A.D.S. 02-21-07 03-12-07 619.50 08-08-07 09-04-07 324.75 944.25 BB & T Corp. 01-10-07 02-01-07 735.00 Bank of America Corp. 02-28-07 03-23-07 1,439.20 1 LONGER INVESTMENTS INCORPORATED A Registered Investment Advisor Longer Investments Inc. INCOME AND EXPENSES Fayetteville Fire Pension and Relief Fund U/A DTD 6-18-86 From 01-01-07 Through 09-30-07 Security Ex-Date Pay-Date Amount 05-30-07 06-22-07 1,439.20 2,878.40 Barclays PLC 04-27-07 04-27-07 4,426.89 Bristol Myers Squibb 04-03-07 05-01-07 910.00 Cameco Corp. 03-28-07 04-13-07 87.94 06-27-07 07-13-07 82.14 170.08 1 Caterpillar Inc. 01-18-07 02-20-07 540.00 Chevron Corp. 02-14-07 03-12-07 11170.00 05-16-07 06-11-07 1,015.00 08-15-07 09-10-07 1,015.00 3,200.00 Citigroup 02-01-07 02-23-07 1,485.00 05-03-07 05-25-07 1,485.00 08-02-07 08-24-07 1,296.00 4,266.00 Coca-Cola 03-13-07 04-01-07 1,003.00 06-13-07 07-01-07 884.00 09-12-07 10-01-07 748.00 2,635.00 i Devon Energy Corp. 03-13-07 03-30-07 186.90 06-13-07 06-29-07 186.90 09-12-07 09-28-07 140.00 513.80 I 2 LONGER INVESTMENTS INCORPORATED A Registered Investment Advisor Longer Investments Inc. INCOME AND EXPENSES Fayetteville Fire Pension and Relief Fund U/A DTD 6-18-86 From 01-01-07 Through 09-30-07 I Security Ex-Date Pay-Date Amount Diamonds Trust Series I 08-17-07 09-17-07 379.25 Emerson Electric 02-14-07 03-09-07 703.50 05-09-07 06-11-07 703.50 08-15-07 09-10-07 531.56 1,938.56 ExxonMobil 02-07-07 03-09-07 400.00 05-10-07 06-11-07 516.25 08-09-07 09-10-07 516.25 1,432.50 General Electric 02-22-07 04-25-07 1,540.00 06-21-07 07-25-07 1,540.00 09-20-07 10-25-07 1,540.00 4,620.00 Goldcorp Inc. 07-18-07 07-27-07 39.75 08-15-07 08-24-07 39.75 I 79.50 Goldman Sachs Group Inc. 07-27-07 08-30-07 166.25 Health Care Select Sector SPDR Fund 03-16-07 03-28-07 152.35 06-15-07 06-27-07 386.60 538.95 Ingersoll-Rand 02-14-07 03-01-07 342.00 05-11-07 06-01-07 342.00 684.00 !i 3 LONGER INVESTMENTS INCORPORATED A Registered Investment Advisor Longer Investments Inc. INCOME AND EXPENSES Fayetteville Fire Pension and Relief Fund U/A DTD 6-18-86 From 01-01-07 Through 09-30-07 � Security Ex-Date Pay-Date Amount Intel Corp. 02-05-07 03-01-07 565.31 05-03-07 06-01-07 565.31 08-03-07 09-01-07 565.31 1,695.93 International Business Machines Corp. 02-07-07 03-10-07 405.00 08-08-07 09-10-07 372.00 777.00 J.B. Hunt Transport Services Inc. 02-05-07 02-21-07 417.60 05-09-07 05-29-07 211.50 07-31-07 08-17-07 279.00 908.10 Johnson & Johnson 02-23-07 03-13-07 768.75 05-24-07 06-12-07 560.25 08-24-07 09-11-07 664.00 1,993.00 Kraft Foods Inc. 06-26-07 07-06-07 646.25 09-06-07 10-05-07 859.95 1,506.20 Newell Rubbermaid Inc. 02-26-07 03-15-07 899.85 Newmont Mining Corporation 03-05-07 03-29-07 280.00 Norfolk Southern 05-02-07 06-11-07 275.00 Northern Trust Corp. 03-07-07 04-02-07 471.25 06-06-07 07-02-07 471.25 i 4 LONGER INVESTMENTS INCORPORATED A Registered Investment Advisor Longer Investments Inc. INCOME AND EXPENSES Fayetteville Fire Pension and Relief Fund U/A DTD 6-18-86 From 01-01-07 Through 09-30-07 Security Ex-Date Pay-Date Amount 09-06-07 10-01-07 375.00 1,317.50 Parker Hannifin Corp. 02-13-07 03-02-07 273.00 05-15-07 06-01-07 273.00 08-23-07 09-07-07 220.50 766.50 Patterson-UTI Energy Inc. 06-12-07 06-29-07 330.00 09-10-07 09-28-07 360.00 690.00 Peabody Energy Corp 04-25-07 05-18-07 81.00 Powershares Water Resource 03-16-07 03-30-07 124.97 06-15-07 06-29-07 192.28 09-21-07 09-28-07 83.66 400.91 Teva Pharmaceuticals 06-05-07 06-05-07 247.90 09-06-07 09-06-07 262.39 510.29 Texas Instruments 01-29-07 02-12-07 124.20 04-26-07 05-21-07 293.20 07-27-07 08-20-07 190.00 607.40 The Technology Select Sec SPDR Fund 06-15-07 06-27-07 17.71 09-21-07 10-03-07 85.39 103.10 Time-Warner, Inc. 5 LONGER INVESTMENTS INCORPORATED A Registered Investment Advisor Longer Investments Inc. INCOME AND EXPENSES Fayetteville Fire Pension and Relief Fund U/A DTD 6-18-86 From 01-01-07 Through 09-30-07 Security Ex-Date Pay-Date Amount 02-26-07 03-15-07 202.13 05-29-07 06-15-07 268.13 470.26 US Bancorp 03-28-07 04-16-07 1,600.00 United Parcel Service Inc. 09-06-07 09-17-07 504.00 Verizon Communications 07-06-07 08-01-07 810.00 Walmart Stores f 03-14-07 04-02-07 495.00 05-16-07 06-04-07 495.00 08-15-07 09-04-07 330.00 1,320.00 Whole Foods Market, Inc. 04-11-07 04-24-07 337.50 Common Stock Total 54,944.75 j Preferred Debt Securities G.E. Preferred 6.625% AAA/AAA (C 6-28-07) 03-23-07 03-28-07 2,225.57 06-25-07 06-28-07 2,225.57 09-25-07 09-28-07 1,894.34 6,345.48 Corporate Bonds Bankers Trust NY Corp 6.000% Due 10-15-08 Subordinated Notes A2/A+ (NC) 04-15-07 04-15-07 1,500.00 Dell Computer Corp. Debentures 7.100% Due 04-15-28 A2/A- (Subject to make whole call) i 6 LONGER INVESTMENTS INCORPORATED A Registered Investment Advisor