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Home My WebLink About2007-07-26 - Agendas - Final Firemen's Pension and Relief Fund Meeting Agenda July 26, 2007 A meeting of the Fayetteville Firemen's Pension and Relief Fund will be held at 11 :00 AM on July 26, 2007 in Room 326 of the City Administration Building 1. Approval of the Minutes: • June 28, 2007 Meeting Minutes 2. Approval of the Pension List: • August, 2007 Pension List — Supplemental amount for 2007 was added. 3. Old Business: • Dennis Mullens retirement classification (Tabled from the April 26, 2007 meeting.) • Pension Protection Act (Tabled from the June 28, 2007 meeting) 4. New Business: • Supplemental Benefits 5. Longer Investments: • Monthly Report • Quarterly Report Board Members Firemen's Pension and Relief Fund Mayor Coody Chairman 0 , Board of Trustees Meeting Minutes Sondra E. Smith Secretary 7ave rc�/711June 28,2007 Marion Doss Position 1/Retired Pagel of 3 Pete Reagan Position 2/Retired aye " V I le Gene Warford Position 3/Retired ARKANSAS Ron Wood Position/Retired Marshall E. Mahan Position 5/Highest Ranking Firemen's Pension and Relief Fund Meeting Minutes June 28, 2007 A meeting of the Fayetteville Firemen's Pension and Relief Fund was #- d at 11 :00 AM on June w, 28, 2007 in Room 326 of the City Administration Building Mayor Coody called the meeting to order. Present: Mayor Coody, Pete Reagan, Gene Warford, Marshall E. NTah = Marion Doss, Deputy City Clerk Amber Wood, Marsha Fa 'zh><ng, T> sh Leach and�rendy Moore, Accounting. a , R /1 Marion Doss arrived at 11:05 AM. Absent: Ronnie Wood and City Clerk d>r Smith R . I�//r/ Approval of the Minutes. � "✓ Approval of the May , 2007 MzetinLY M><nutea Pete Reagan moved ap , 07 Meeting Minutes. Gene Warford ro s > e seconded the %,, tion i y gmyull Gail tl<e rgfion passed 4-0. Marion Doss was absent during thiegy' e: ni e Wo a e nd City C1e k Sondra Smith were absent. w INE gxg Avvrovilothe Pension 1: 11 m ,. Approval of he:.Tuly, 2007 Pension List — Jennie Hope Lane Deceased Fv Mayor Coody Whdi s. Lane leave us? Pete Reagan: The 26TH' I think her funeral is today. Wendy Moore: The funeral services are Saturday. Pete Reagan: Gene did you ever work with him? He was a volunteer. Gene Warford: He was gone before I came on. Mayor Coody: So he has been retired for quite a while. Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes June 28,2007 Page 2 of 3 Pete Reagan moved to approve the June, 2007 Pension List. Marshall E. Mahan seconded the motion. Upon roll call the motion passed 4-0. Marion Doss was absent during the vote. Ronnie Wood and City Clerk Sondra Smith were absent. Old Business: Pension Protection Act (Tabled from the May 24, 2007 meeting.) Mayor Coody: This was tabled from the last meeting and I thi s his been tabled several times. Pete Reagan: Motion to table again until Kit has time to viewhW utes. I talked to Kit earlier and he is doing a brief and he is not able to loin uIN Mayor Coody: Motion and second to table this yet again. Is this the fourth or' "a time to table V G this? IF� �, , Amber Wood: I believe the fourth. r Trish Leach: It has been numerous time °zy "��°�*�„ a. Pete Reagan: There is a state statue that mxrors to �Fe hat ws passed in general assembly. Kit is going to do a comparison. G ' rr Mayor Coody: I w l just a on get this, en care o£ We cant just keep tabling and tabling it indefinite)<y 'A eed to X11 it or table i = nd finitely. We have a motion and a second to table, shall the motion s vf'' Masi mss . Pete Rea anl�mowe 11, o;�table ion Protection Act. Gene Warford seconded the motion. Upon ro - call the motorpasse< . 1. Mayor Coody voting no. Marion Doss was absent durvote. Ronnie i d an Clerk Sondra Smith were absent. Mayor Coo •, rpoes this t %Mafthe majority of the body or a majority of those that attend? Amber Wood k theN rity of those that attend. any: Mayor Coody: Okay _s tabled then. Pete Reagan moved to table Pension Protection Act. Gene Warford seconded the motion. Upon roll call the motion passed 3-1. Mayor Coody voting no. Marion Doss was absent during the vote. Ronnie Wood and City Clerk Sondra Smith were absent. Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes June 28,2007 Page 3 of 3 New Business: Jennie Hope Lane Deceased — June 26, 2007 Amber Wood: I included a copy of her obituary in the packet so you would know that she has passed away. Election Results: Ronnie Wood and Gene Warford have been elected Mayor Coody: Anything we need to do on that? Pete Reagan: No, it just needs to be noted in the minutes. /lora. L_ onLyer Investments: IN , i% j/ t \ ✓ Equity Allocation Overage Report 'Y `'5` ; � �. Mayor Coody: Is Longer Investments going to be here? Amber Wood: They will be here nex �onth They come a � # e beginning of each quarter. They included a copy of the monthly reJo ° with the c,, A* allocation. We have to V , approve the overage. , Pete Reagan moved to pp a the equity o,, 'erage. GeeWarford seconded the motion. Upon roll NI call the moo ion pasMe 45-0. Ronnie Wood and City Clerk Sondra Smith were absent. 160 " 'a Monthly Rep'o'rts A co the Longer In ents m;� Ay report was given to the board. E Longer View i Amber Wood: Th �Lo, der View is included in your packet and it's just informational. It's a pamphlet provided by j ®nger Investments. Mayor Coody: Any other business? Meeting Adjourned at 11:07 AM FIREMEN'S RELIEF AND PENSION August 8 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 Regular Benefit Act 1373 EMP#RETIREMENT NAME Benefit Reg Benefit Fed Tax St Tax Net Future Supplement Q 79 11/99 ARMSTRONG(DILL), PAMELA 1,812.74 14,501.92 500.00 300.00 1,012.74 0.00 R 177 4/04 BACHMAN, EDDIE 2,618.55 20,948.40 479.27 119.82 2,019.46 754.20 S 74 3/86 BAIRD,JULIA 1,802.08 14,416.64 350.00 145.00 1,307.08 754.20 V 63 5/72 BOLAIN,ANN 109.27 874.16 109.27 150.84 R 68 7/99 BONADUCE, MICHAEL 2,988.76 23,910.08 475.38 2,513.38 754.20 S 44 9/86 BOUDREY, BETTY MRS. 2,477.42 19,819.36 300.00 50.00 2,127.42 754.20 R 45 9/86 BOUDREY, HOWARD 2,089.28 16,714.24 2,089.28 754.20 R 49 7/88 BOUDREY,JACK 1,647.63 13,181.04 287.68 50.00 1,309.95 754.20 V 5 5/72 CASELMAN,ARTHUR 131.13 1,049.04 131.13 150.84 R 57 5/90 CATE, ROY 1,788.90 14,311.20 1,788.90 754.20 V 6 4/68 CHRISTIE,ARNOLD 109.27 874.16 109.27 150.84 V 8 10/76 COUNTS,WAYNE 109.27 874.16 109.27 150.84 R 77 11199 DILL,GARY JOHN 1,812.75 14,502.00 100.00 1,712.75 754.20 R 188 12/05 DOSS, MARION H 5,376.91 43,015.28 800.00 320.00 4,256.91 754.20 R 11 2176 FARRAR,ALONZO 998.86 7,990.88 30.00 968.86 754.20 R 192 4/06 FARRAR, DANNY 4,155.36 33,242.88 207.00 207.00 3,741.36 754.20 R 38 5/84 FRALEY, JOSEPH G. 1,768.12 14,144.96 200.00 15.00 1,553.12 754.20 R 170 5103 FREEDLE, LARRY 3,816.75 30,534.00 500.00 100.00 3,216.75 754.20 R 92 03/02 GAGE,TOMMY 2,596.69 20,773.52 226.00 50.00 2,320.69 754.20 V 34 6179 HARRIS,JAMES E. 109.27 874.16 109.27 150.84 V 70 11/99 HARRIS, MARY RUTH 109.27 874.16 109.27 150.84 Q 182 10/04 JENKINS, EILEEN 1,788.75 14,310.00 150.00 75.00 1,563.75 R 93 06/02 JENKINS, JOHN 1,788.76 14,310.08 350.00 100.00 1,338.76 754.20 R 86 07101 JOHNSON,ROBERT 3,073.47 24,587.76 500.00 100.00 2,473.47 754.20 R 64 4/95 JORDAN, CHARLIE 2,274.95 18,199.60 150.00 50.00 2,074.95 754.20 S 76 5/88 JUDY,JAN 1,647.63 13,181.04 200.00 50.00 1,397.63 754.20 R 37 3/84 KING,ARNOLD D. 1,522.37 12,178.96 325.00 75.00 1,122.37 754.20 R 54 5/89 KING,ARVIL 1,711.21 13,689.68 130.00 50.00 1,531.21 754.20 V 12 3/60 LANE, HOPE MRS, Deceased 6/26/07 0.00 655.62 655.62 R 13 10/67 LAYER, MERLIN 456.22 3,649.76 456.22 754.20 R 173 12/03 LEDBETTER, DENNIS 3,775.80 30,206.40 650.00 200.00 2,925.80 754.20 V 181 10/04 LEE,VIOLA LOUISE 109.27 874.16 109.27 150.84 R 51 10/88 LEWIS,CHARLES 1,647.63 13,181.04 75.00 25.00 1,547.63 754.20 R 40 9/85 LOGUE, PAUL D. 2,868.28 22,946.24 325.00 75.00 2,468.28 754.20 R 50 9/88 MASON, LARRY 1,631.25 13,050.00 137.61 25.00 1,468.64 754.20 R 39 4/85 MC ARTHUR, RONALD A. 1,753.74 14,029.92 150.00 50.00 1,553.74 754.20 V 35 2/82 MC CHRISTIAN, DWAYNE 109.27 874.16 109.27 150.84 R 15 4177 MC WHORTER,CHARLES 1,334.51 10,676.08 150.00 1,184.51 754.20 R 29 8/81 MILLER, DONALD 1,304.07 10,432.56 125.00 25.00 1,154.07 754.20 R 73 2/00 MILLER,KENNETH 3,180.02 25,440.16 325.00 75.00 2,780.02 754.20 V 42 2/86 MOORE, JAMES H. 109.27 874.16 109.27 150.84 V 176 4/04 MORRIS, DIXIE E. 125.66 1,005.28 125.66 150.84 R 48 7/88 MULLENS, DENNIS W. 2,191.30 17,530.40 2,191.30 754.20 R 184 3/05 NAPIER, LONNIE 3,518.28 28,146.24 110.00 88.00 3,320.28 754.20 R 196 01/02 ONEAL,TEDDY 4,120.99 32,967.92 400.00 100.00 3,620.99 754.20 R 46 5188 OSBURN,TROY 1,899.66 15,197.28 200.00 38.00 1,661.66 754.20 R 81 02/01 PHILLIPS,LARRY 2,765.09 22,120.72 2,765.09 754.20 R 53 2/89 POAGE, LARRY 2,346.70 18,773.60 300.00 100.00 1,946.70 754.20 R 186 06/05 REAGAN, PETE 3,535.71 28,285.68 3,535.71 754.20 V 22 4173 REED,JOE 109.27 874.16 109.27 150.84 S 172 12/03 SCHADER, MADGE 1,386.01 11,088.08 1,386.01 754.20 R 41 9/85 SCHADER,TROY 1,524.99 12,199.92 57.00 25.00 1,442.99 754.20 R 190 04/06 SHACKELFORD, GLEN 3,647.18 29,177.44 400.00 200.00 3,047.18 754.20 S 83 03/01 SKELTON, KIMBERLY 2,434.98 19,479.84 250.00 50.00 2,134.98 754.20 R 36 5/76 SPRINGSTON, CARL 806.19 6,449.52 70.00 17.00 719.19 754.20 S 90 03/02 . STOUT, IMOGENE W. 767.80 6,142.40 767.80 754.20 R 165 12/02 TATE, RALPH 3,668.10 29,344.80 300.00 100.00 3,268.10 754.20 V 65 3/66 TUNE,BILLIE SUE 136.59 1,092.72 136.59 150.84 R 71 1/00 WARFORD,THOMAS 2,502.72 20,021.76 300.00 2,202.72 754.20 R 28 7/68 WATTS, DONALD 437.09 3,496.72 437.09 754.20 R 88 01/02 WOOD,RONNIE D 3,077.15 24,617.20 400.00 100.00 2,577.15 754.20 R 52 9/88 WRIGHT, RANDALL 1,691.34 13,530.72 200.00 2500 _ 1466.34 754.20 113,207.55 906 316.02 11 184.94 3,174.82 99 503.41 37,257.48 99,503.41 DROP DATE DROP EMPLOYEES NEW BENEFITS 03/01/03 MAHAN, MARSHALL 4,077.28 754.20 03/01/03 PIERCE, JOEY 3,647.18 754.20 WE,THE UNDERSIGNED, DO SOLEMNLY SWEAR THAT THE ABOVE OBLIGATIONS ARE JUST AND CORRECT;THAT NO PART THEREOF HAS BEEN PREVIOUSLY PAID;THAT 38765.88 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 7/24/2007 C:\Documents and Settings\ssmith.000\Local Settings\Temp\XPgrpwise\August 2007 WM DATE OF Regular Mo Year To Date Regular Benefit Act 1373 EMP1f RETIREMENT NAME Benefit Reg Benefit Fed Tax St Tax Net Future Supplement 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: YTD 6810-9810-5335-00 0.00 906316.02 -906316.02 6810-9810-5335-06 0.00 11184.94 -11184.94 Drop Payoutlintrest Cheeks to Drop Retirees 0.00 YTD Column 0.00 Difference 0.00 "(should be off Supplemental amount for DROP part) 7/24/2007 CADocuments and Settinas%ssmith.000\1-ocal Settirms\TemDUCPprAwiseWustust 2007 WM 0o O N 00 d' d0' � O d. co O N Lci O 00 r r �} M• r O f�- O LO r O O It .T O N LO d N N N ti O O N m ItT a) CD N N It ti O O = O N O 00 C_O (D co NG) LO t� O N LON rcOd r M r 6ek 6' cc a) V LO _r_ OD CN N N c6 CO O 4 4 4 Oa) O OCA- N N LO M cc J O Q ER Ef} cc _ LL' MrwNN .19 V E r �- tc U � O L � � o a co •(A fl- d1 C •V G CO m m IL a� E c v, a) Y L mO i = V L E '� m ca u' c (D (D a) E = U- � m O a> a? o =p o U. 1- LL U- N co > fn a 13 ARKANSAS FIRE & POLICE PENSION REVIEW BOARD 620 W. 3rd, Suite 200 Little Rock, Arkansas 72201-2212 Telephone: (501) 682-1745 Toll-Free: (866) 859-1745 To: Local FIRE Pension Fund Board of Trustees Fax: (501) 682-1751 email: info@lopfi-prb.com From: Arkansas Fire and Police Pension Review Board (PRB) website: www.lopfi-prb.com Re: 2007 Future Supplement Fund Distribution Date: July 2007 Enclosed is your Future Supplement Fund distribution for your FIRE pension fund mailed from the Department of Finance and Administration. The distribution amount is in accordance with Act 1373 of 2003. The amounts listed below are to be distributed equally to each retiree, beneficiary, and DROP participant as of December 31, 2006. The effective date of the distribution is July 1, 2007. It is important to realize the amount available for distribution in future years may vary. It may increase or decrease; .therefore, for ease of administering.this supplement we are recommending a single one-time payment be made to each eligible participant. Of particular note, this year's amount is greater due to a 2007 legislative change that directed 100% of the balance held in the Future Supplement Fund be distributed. Previously the amount allocated was 90% of Fund's balance, with 10% held in reserve. As a result, the amount available for the 2008 distribution will likely be much less than this year's amount because of the one-time increase realized by the reserve balance being distributed; Please ensure your pension fund members receive this information:' The total amount to be distributed to each � fire retiree is: $ 754.20 The total amount to be distributed to each volunteer retiree is: $ 150.84 In the event one or more of your eligible participants has deceased, place that person(s) distribution amount into the pension fund. This method will ensure each eligible person receives the correct amount. Should you have questions please contact Robert Bartholmey or Denise Reed at one of the phone numbers listed above. Thank you. Agency Name: DFA-DISBURSING OFFICER _ Warrant Numb: 07W-0707774 Address : 1515 W 7TH ST STE 700 _ Warrant Date: 6/27/2007 CIty,St Zip: LITTLE ROCK AR 72201 _ Payment Date: 6/27/2007 I Vendor Number: 03.00003391 Invoice# Document Text Net Amount 1 2007 Fire Future 2007 Fire Future Supplement 38,916.72 i II I i I I I I 1 i1 I L I 1 , TOTALS THIS WARRANT 38,916.72 nunig THiS WARRANT VOED AFTEf�JUNE 301 Z0 0 8 NM OIW 0707774 > r (' �' To tiietatc Trcasurcr,J�tttc nc�c c, Alts kknNsn ' PA}'TU T71P UItDTR'Ul AGENCYMOT`])AY YEAR_ pAY THIS AMOUNT 0620 06- CLTY DF- -.FAYETTE:VILL';E A F kTNF,.SUM HEREIN IS v U h4 BY:TO Er STATE OF ARKANSAS TO 3 �Q ICED H IH AMO;THE STATE TREASURER IS HERE[i.Y AY I UNTO fiE ORDER OF 'THE iAYEE VI OF .A TIO HER N�SPECIFSED DO NOT BEND, FO 0R MUTILATE i L _ I L _ 1 L _ J L - J L _ J L _ J See reverse side for opening instructions. DFA—DISBURSING OFFICER _ 1515 W 7TH. ST STE 700 _ PRESORTED FIRST CLASS LITTLE ROCK AR 72201 _ US POSTAGE PAID W 0 2 0 7 7 LITTLE ROCK AR Au �o PERMIT 2273 I w L N i y � I �kKANSN4 ' , ' i CITY OF FAYETTEVILLE 113 W MOUNTAIN ST FAYETTEVILLE AR 72701 I i I _ ....... Agency Name: DFA-DISBURSING OFFICER _ Warrant Numb: 08W-0013009 Address : 1515 W 7TH ST STE 700 _ Warrant Date: 7/15/2007 City,St Zip: LITTLE ROCK AR 72201 _ Payment Date: 7/15/2007 I Vendor Number: 0100003391 _ I I Invoice# Document Text Net Amount i 2007 OLD PLAN FI 2007 OLD PLAN FIRE 150,066.58 _ I I I I l J I II I I I i I II 1 L_J II TOTALS THIS WARRANT 15.0,066.58 ALiDt�.. THtSlillAI�lAN7 VOIDATERJUNE30, 2 .a9 NN! 084E '001,3Q0�rv ,Il M i f r II tuft of �r�tttts� � � Tx) tSzc �la�c 1'rcasurG;Lzftle Roc , Ark L-J r ,tHKgNgp`' a ;: PAY TU TILTCURT�TR OT PAYTHIS,AMOUN. 06"20 07 15 "20;07 C'I',TY OF .FAN,ET,TEUILLE S* * 15'ODkr Y A THE SUN HEREIN IS VEE SP ENE STATE OF ARNANSAS TV r KEV H IN AND STATE iREASERER IS HEAEeti+ Lb n AY I UM TQ 4NE VpVER of THF pNPEE u(or ' '�� 1TiV NER N�SPECIEIEV DQ NOT BEND, FOLD Off MUTILATE Q 6 [111■ t.0$ 20Q ? , i 8►� a X100 i 30[7�lI►■ r � I 1 L _ J L _ J L _ J L _ J L _ J L _ J See reverse side for opening instructions. r— 'DFA-DISBURSING OFFICER _ 1515 W 7TH ST STE 700 _ PRESORTED FIRST CLASS LITTLE ROCK AR 72201 _ US POSTAGE W02511 PAID LITTLE ROCK AR PERMIT2273 11 �RKANS�' CITY OF FAYETTEVILLE 113 W MOUNTAIN ST FAYETTEVILLE AR 72701 El ED JUL 0 9 2007 LONGER INVESTMENTS INCORPORATED CITY OFFAYETTEVILLE z CITY CLERK'S CFFiCE A Registered Investment Advisor July 7, 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 second-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. A mid-year issue of our newsletter, The Longer View, was mailed in June. The newsletter discussed recent activity in the stock and bond markets, and our outlook for the second half of the year. Year-to-date performance for 2007 is detailed below: Domestic Foreign Total Equities Funds Bonds Account Fayetteville Fire Pension 7.7% 6.2% 1.6% 4.8% In comparison, 2007 returns for market indices for the same time period are listed below: S&P 500 (cash basis) 6.0% S&P 500 (with reinvested dividends) 7.0% Dow Jones Industrial Average (cash basis) 7.6% NASDAQ over-the-counter index 7.8% Salomon Bros. Total Return Treasury Index 1.0% P.O.Box 1269 Fayetteville,Arkansas 72702 Telephone:479-443-5851 Toll free: 800-827-7710 Fax:479-443-7129 Web site:www.longerinvcom Ms. Sondra Smith July 7, 2007 Page Two SEC Regulation S-P requires Longer Investments Inc. to provide a copy of its Privacy Policy to clients on an annual basis. A copy of the policy is included for your review. If you would like a copy of the Longer Investments Inc. Proxy Voting Policy, please contact our office. 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, A President EML:cml Enclosures City of Fayetteville Fire Pension and Relief Fund U/A Dated 06-18-86 SECOND QUARTER REPORTS June 30, 2007 LONGER INVESTMENTS INCORPORATED A Registered Investment Advisor Longer Investments Inc. PORTFOLIO APPRAISAL Fayetteville Fire Pension and Relief Fund U/A DTD 6-18-86 June 30, 2007 Unit Total Market Pct. Unit Annual Cur. Quantity Security Cost Cost Price Value Assets Income Income Yield Common Stock 3,250 AT&T 26.12 84,905.00 41.50 134,875.00 1.5 1.420 4,615.00 5.4 1,675 American Express Co. 58.46 97,925.36 61.18 102,476.50 1.2 0.600 1,005.00 1.0 1,600 American International 67.73 108,374.15 70.03 112,048.00 1.3 0.800 1,280.00 1.2 Group Inc. 4,750 Applied Materials hic. 16.08 76,402.33 19.87 94,382.50 1.1 0.240 1,140.00 1.5 2,300 Avon Products hic. 35.54 81,740.00 36.75 84,525.00 1.0 0.740 1,702.00 2.1 500 B.P. Amoco PLC A.D.S. 39.59 19,795.00 72.14 36,070.00 0.4 2.480 1,240.00 6.3 2,300 Bank of America Corp. 46.98 108,058.14 48.89 112,447.00 1.3 2.240 5,152.00 4.8 2,400 Barclays PLC 39.80 95,531.28 55.79 133,896.00 1.5 2.810 6,744.00 7.1 1,725 Cameco Corp. 39.35 67,873.40 50.74 87,526.50 1.0 0.170 293.25 0.4 1,750 Chevron Corp. 36.34 63,596.05 84.24 147,420.00 1.7 2.320 4,060.00 6.4 2,400 Citigroup 38.13 91,500.09 51.29 123,096.00 1.4 2.160 5,184.00 5.7 2,200 Coca-Cola 41.77 91,894.00 52.31 115,082.00 1.3 1.360 2,992.00 3.3 1,220 Devon Energy Corp. 66.34 80,932.73 78.29 95,513.80 1.1 0.560 683.20 0.8 2,500 Disney Company 24.37 60,912.78 34.14 85,350.00 1.0 0.310 775.00 1.3 5,175 EMC Corporation 16.07 83,178.00 18.10 93,667.50 1.1 0.000 0.00 0.0 2,025 Emerson Electric 23.98 48,569.62 46.80 94,770.00 1.1 1.050 2,126.25 4.4 1,475 ExxonMobil 34.89 51,457.58 83.88 123,723.00 1.4 1.400 2,065.00 4.0 5,500 General Electric 26.59 146,257.35 38.28 210,540.00 2.4 1.120 6,160.00 4.2 2,000 Health Care Select 32.98 65,962.13 35.31 70,620.00 0.8 0.497 994.96 1.5 Sector SPDR Fund 1,700 Ingersoll-Rand 41.13 69,923.38 54.82 93,194.00 1.1 0.720 1,224.00 1.8 830 Intl Business Machines 102.56 85,122.97 105.25 87,357.50 1.0 1.600 1,328.00 1.6 5,025 Intel Corp. 18.36 92,242.67 23.74 119,293.00 1.4 0.450 2,261.25 2.5 2,350 J.B. Hunt 22.17 52,092.22 29.32 68,902.00 0.8 0.360 846.00 1.6 i 1,350 Johnson&Johnson 59.12 79,818.08 61.62 83,187.00 0.9 1.660 2,241.00 2.8 2,400 Kraft Foods Inc. 32.85 78,847.80 35.25 84,600.00 1.0 1.000 2,400.00 3.0 1,750 Norfolk Southern 53.04 92,819.00 52.57 91,997.50 1.0 0.880 1,540.00 1.7 1,700 Northern Trust Corp. 57.07 97,017.70 64.24 109,208.00 1.2 1.000 1,700.00 1.8 3,650 Oracle Corp. 17.02 62,132.13 19.71 71,941.50 0.8 0.000 0.00 0.0 3,675 Parametric Technology 19.90 73,136.25 21.61 79,416.75 0.9 0.000 0.00 0.0 Corp. 1,050 Parker Hannifin Corp. 82.56 86,683.87 97.91 102,805.50 1.2 0.920 966.00 1.1 3,275 Patterson-UTI Energy 23.97 78,510.75 26.21 85,837.75 1.0 0.480 1,572.00 2.0 Inc. •' 3,400 Powershares Dynamic 18.96 64,457.88 19.44 66,096.00 0.8 0.000 0.00 0.0 Semiconductors 6,300 Powershares Water 17.96 113,150.25 20.92 131,796.00 1.5 0.094 594.22 0.5 Resource 2,250 St. Jude Medical 37.98 85,444.20 41.49 93,352.50 1.1 0.000 0.00 0.0 3,935 Symantec Corp. 19.83 78,015.55 20.20 79,487.00 0.9 0.000 0.00 0.0 2,750 Teva Pharmaceuticals 38.62 106,218.70 41.25 113,437.50 1.3 0.390 1,072.50 1.0 3,140 Texas Instruments 29.88 93,819.40 37.63 118,158.20 1.3 0.320 1,004.80 1.1 1,000 The Technology Select 24.68 24,680.00 25.60 25,600.00 0.3 0.174 174.12 0.7 Sec SPDR Fund 4,600 Time-Wamer, hic. 17.73 81,565.42 21.04 96,784.00 1.1 0.220 1,012.00 1.2 1,200 United Parcel Service 73.99 88,790.04 73.00 87,600.00 1.0 1.680 2,016.00 2.3 Inc. 2,000 Verizon 40.60 81,200.00 41.17 82,340.00 0.9 1.620 3,240.00 4.0 Communications 1,500 Walmart Stores 45.66 68,487.75 48.11 72,165.00 0.8 0.880 1,320.00 1.9 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 June 30, 2007 Unit Total Market Pct. Unit Annual Cur. Quantity Security Cost Cost Price Value Assets Income Income Yield 1,250 Western Digital Corp. 19.14 23,925.00 19.35 24,187.50 0.3 0.000 0.00 0.0 3,382,965.99 4,126,773.00 46.9 74,723.55 2.4 Preferred Debt Securities 4,575 G.E. Preferred 6.625% 25.41 116,233.24 24.97 114,237.75 1.3 1.656 7,577.34 6.5 AAA/AAA(C 6-28-07) 116,233.24 114,237.75 1.3 7,577.34 6.5 Mutual Funds-Equity 20,000.0000 iShares MSCI Japan 10.69 213,850.00 14.51 290,200.00 3.3 0.099 1,989.18 0.9 Index Fund 1,500.0000 iShares MSCI Taiwan 12.54 18,803.55 16.00 24,000.00 0.3 0.302 452.45 2.4 Index Fund i 3,000.0000 iShares S&P Europe 82.03 246,094.10 116.93 350,790.00 4.0 2.083 6,248.48 2.5 350 Index 478,747.65 664,990.00 7.6 8,690.11 1.8 Corporate Bonds 50,000 NationsBank Corp. 99.79 49,894.00 100.53 50,267.10 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 66,687.00 100.97 65,627.38 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 49,630.00 100.59 50,293.10 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 23,446.00 100.77 25,191.72 0.3 6.000 1,500.00 6.4 1 Subordinated Debentures Al/A+ (NC) 6.000% Due 10-30-08 25,000 Pepsico Incorporated 97.49 24,373.00 100.62 25,154.87 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 48,816.00 105.80 52,898.10 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 48,014.00 107.52 53,758.90 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 74,442.00 104.38 78,285.52 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 48,326.00 106.63 53,313.70 0.6 6.875 3,437.50 7.1 Sub. Notes A2/A- (NC) 6.875% Due 05-15-19 2 ff LONGER INVESTMENTS INCORPORATED NA LIMAML A Registered Investment Advisor Longer Investments Inc. PORTFOLIO APPRAISAL Fayetteville Fire Pension and Relief Fund U/A DTD 6-18-86 June 30, 2007 Unit Total Market Pct. Unit Annual Cur. Quantity Security Cost Cost Price Value Assets Income Income Yield 50,000 IBM Corp. Debentures 100.01 50,004.00 110.54 55,269.40 0.6 7.000 3,500.00 7.0 Al/A+ (Subject to make whole call) 7.000% Due 10-30-25 50,000 Dell Computer Corp. 95.46 47,731.00 105.25 52,623.20 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 10,752.22 0.1 531,363.00 573,435.23 6.5 35,780.00 6.7 Government Bonds 50,000 U. S. Treasury Bond 100.01 50,004.00 103.75 51,875.00 0.6 5.500 2,750.00 5.5 5.500% Due 08-15-28 50,000 U. S. Treasury Bond 98.95 49,474.00 100.69 50,343.75 0.6 5.250 2,625.00 5.3 5.250% Due 11-15-28 Accrued Interest 1,353.68 0.0 99,478.00 103,572.43 1.2 5,375.00 5.4 Government Agency 110,000 Federal Home Loan 100.00 110,000.00 99.94 109,931.25 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 99.78 99,781.25 1.1 5.125 5,125.00 5.1 1 Assoc (C 10-3-07 @ 100, IX) 5.125% Due 10-03-08 100,000 Federal Home Loan 100.00 100,000.00 99.69 99,687.50 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 99.53 199,062.50 2.3 5.100 10,200.00 5.1 Bank(C 5-20-08 @ 100, 1X) 5.100% Due 11-20-09 525,000 Federal Home Loan 100.00 525,000.00 99.97 524,835.94 6.0 5.520 28,980.00 5.5 Bank (C 8-24-07 @ 100, 1X) 5.520% Due 02-24-10 50,000 Tennessee Valley 98.95 49,474.00 101.38 50,688.45 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 99.53 348,359.37 4.0 5.250 18,375.00 5.2 Bank(C 2-9-09 @ 100, IX) 5.250% Due 02-09-11 65,000 Federal Home Loan 100.00 65,000.00 98.87 64,268.75 0.7 5.020 3,263.00 5.0 Bank (C 4-13-09 @ 100, IX) 5.020% Due 04-13-11 3 LONGER INVESTMENTS INCORPORATED A Registered Investment Advisor Longer Investments Inc. PORTFOLIO APPRAISAL Fayetteville Fire Pension and Relief Fund U/A DTD 6-18-86 June 30, 2007 Unit Total Market Pct. Unit Annual Cur. Quantity Security Cost Cost Price Value Assets Income Income Yield 125,000 Federal Home Loan 100.00 125,000.00 99.87 124,843.75 1.4 5.500 6,875.00 5.5 Bank(C 2-18-09 @ 100, ix) 5.500% Due 08-18-11 200,000 Fed Nat'l Mortgage 100.00 200,000.00 99.53 199,062.50 2.3 5.400 10,800.00 5.4 Assoc (C 9-15-08 @ 100, IX) 5.400% Due 09-15-11 70,000 Federal Home Loan 100.00 70,000.00 99.00 69,300.00 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 98.34 98,343.75 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 98.00 54,444.45 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 97.75 244,375.00 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 98.94 98,937.50 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 98.22 73,664.06 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 97.22 121,523.44 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 99.44 99,444.50 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 99.31 208,556.25 2.4 6.000 12,600.00 6.0 Assoc (C 10-24-08 @ 100, quarterly) 6.000% Due 10-24-16 200,000 Federal Home Loan 100.00 200,000.00 100.00 200,000.00 2.3 6.000 12,000.00 6.0 Bank(C 1-3-12 @ 100, IX) 6.000% Due 07-03-17 4 LONGER INVESTMENTS INCORPORATED A Registered Investment Advisor Longer Investments Inc. PORTFOLIO APPRAISAL Fayetteville Fire Pension and Relief Fund U/A DTD 6-18-86 June 30, 2007 Unit Total Market Pct. Unit Annual Cur. Quantity Security Cost Cost Price Value Assets Income Income Yield Accrued Interest 37,692.18 0.4 3,110,029.56 3,126,802.39 35.5 167,896.97 5.4 - Cash and Equivalents Dividends Accrued 3,619.31 3,619.31 0.0 0.000 0.00 0.0 Money Market 9,968.56 9,968.56 0.1 4.575 456.06 4.6 Restricted Cash 83,000.00 83,000.00 0.9 4.575 3,797.25 4.6 96,587.87 96,587.87 1.1 4,253.31 4.4 TOTAL PORTFOLIO 7,815,405.31 8,806,398.66 100.0 304,296.28 3.8 j i 5 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 6-18-86 From 01-01-07 Through 06-30-07 Realized Gains and Losses Short-Term 69,636.41 Long-Term 158,359.12 TOTAL REALIZED GAINS AND LOSSES 227,995.53 Income and Expenses Income: Common Stock 40,798.13 Preferred Debt Securities 4,451.14 Corporate Bonds 17,890.00 Government Bonds 2,687.50 Government Agency 79,208.68 Cash and Equivalents 3,625.72 Certificate of Deposit 988.05 Expenses: Automated Cash Mgmt. 114.28 Foreign Tax on Dividends 52.85 Northern Trust Fee 2,991.87 Management Fee 35,155.16 NET INCOME 1119335.06 LONGER INVESTMENTS INCORPORATED A Registucd Investment Advisor Longer Investments Inc. CONTRIBUTIONS/WITHDRAWALS Fayetteville Fire Pension and Relief Fund U/A DTD 6-18-86 From 01-01-07 To 06-30-07 Tran Trade Settle Broker Code Date Date Security Amount Quantity Code Commission CONTRIBUTIONS 0.00 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. 20,000.00 520,000.00 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 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 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 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 3,159.00 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 35,155.16 PORTFOLIO NET TOTAL -558,314.16 EXPENSE ACCOUNTS PAID BY CLIENT 0.00 AFTER FEE PERFORMANCE EXPENSE ACCOUNTS PAID BY CLIENT 0.00 GRAND TOTAL -558,314.16 LONGER INVESTMENTS INCORPORATED A Registered Investment Advisor June 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 June 30, 2007 Portfolio Valuation as of 06-30-07 $ 8,756,600.58 3,000,000 @ 1.000% per annum 7,500.00 3,000,000 @ 0.750% per annum 5,625.00 2,756,601 @ 0.650% per annum 4,479.48 Quarterly Management Fee $ 175604.48 i TOTAL DUE AND PAYABLE $ 17,604.48 Pursuant to Section 204-3 of the Investment Advisors Act of 1940, Part H of Form ADV is available to all clients of Longer Investments Inc. 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 Longer Investments Inc. REALIZED GAINS AND LOSSES Fayetteville Fire Pension and Relief Fund U/A DTD 6-18-86 From 01-01-07 Through 06-30-07 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, Inc. 20,497.52 26,413.19 5,915.67 09-18-06 01-22-07 325 Time-Warner, Inc. 5,590.00 7,305.77 1,715.77 j 01-04-07 01-25-07 250 American International 17,925.00 17,204.35 -720.65 Group Inc. 12-07-06 01-25-07 275 American International 19,401.00 18,924.78 -476.22 Group hie. 10-18-06 01-25-07 1,350 American International 91,147.68 92,903.46 1,755.78 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., Inc. 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 ` 1 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 Inc. 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 BAAI/NR(NC) FDIC-Insured 4.900% Due 02-20-07 10-09-06 02-22-07 525 Intl Business Machines 43,763.47 51,378.86 7,615.38 01-22-07 02-22-07 2,500 Sara Lee Corp. 43,275.00 42,923.68 -351.32 02-01-07 02-22-07 600 Sara Lee Corp. 10,385.10 10,301.68 -83.42 1 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 06-30-07 Gain Or Loss Open Close Cost Date Date Quantity Security Basis Proceeds Short Term Long Term 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 InVI Business Machines 68,771.17 80,586.82 11,815.64 01-29-07 02-23-07 750 J.B. Hunt 17,893.73 20,828.28 2,934.55 01-04-07 02-23-07 315 J.B. Hunt 7,334.85 8,747.88 1,413.03 12-11-06 02-23-07 75 J.B. Hunt 1,662.52 2,082.83 420.31 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, Inc. 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 Inc. 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, 1X) 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 25,491.94 31,832.09 6,340.15 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 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 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 06-30-07 Gain Or Loss Open Close Cost Date Date Quantity Security Basis Proceeds Short Term Long Term 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 Inc. 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, hic. 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 -'i 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-Warner, 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 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, hic. 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 3 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 06-30-07 Gain Or Loss Open Close Cost Date Date Quantity Security Basis Proceeds Short Term Long Term 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) TOTAL GAINS 147,452.61 159,919.43 TOTAL LOSSES -77,816.20 -1,560.31 4,566,637.55 4,794,633.08 69,636.41 158,359.12 TOTAL REALIZED GAIN/LOSS 227,995.53 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. 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 06-30-07 Security Ex-Date Pay-Date Amount Common Stock AT & T 01-08-07 02-01-07 1,494.55 04-05-07 05-01-07 1,494.55 2,989.10 American International Group Inc. 05-30-07 06-15-07 264.00 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 06-07-07 285.00 522.50 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 BB & T Corp. 01-10-07 02-01-07 735.00 Bank of America Corp. 02-28-07 03-23-07 1,439.20 05-30-07 06-22-07 15439.20 2,878.40 Barclays PLC 04-27-07 04-27-07 43426.89 Bristol Myers Squibb 04-03-07 05-01-07 910.00 Cameco Corp. 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 06-30-07 Security Ex-Date Pay-Date Amount 03-28-07 04-13-07 87.94 06-27-07 07-13-07 77.81 165.75 Caterpillar Inc. 01-18-07 02-20-07 540.00 Chevron Corp. 02-14-07 03-12-07 1,170.00 05-16-07 06-11-07 1,015.00 2,185.00 Citigroup 02-01-07 02-23-07 1,485.00 05-03-07 05-25-07 1,485.00 2,970.00 f Coca-Cola 03-13-07 04-01-07 1,003.00 06-13-07 07-01-07 884.00 1,887.00 Devon Energy Corp. 03-13-07 03-30-07 186.90 06-13-07 06-29-07 186.90 373.80 Emerson Electric 02-14-07 03-09-07 703.50 05-09-07 06-11-07 703.50 1,407.00 ExxonMobil 02-07-07 03-09-07 400.00 05-10-07 06-11-07 516.25 916.25 General Electric 02-22-07 04-25-07 1,540.00 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 06-30-07 Security Ea-Date Pay-Date Amount 06-21-07 07-25-07 1,540.00 3,080.00 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 Infl Business Machines 02-07-07 03-10-07 405.00 Intel Corp. 02-05-07 03-01-07 565.31 05-03-07 06-01-07 565.31 1,130.62 J.B. Hunt 02-05-07 02-21-07 417.60 05-09-07 05-29-07 211.50 629.10 Johnson & Johnson 02-23-07 03-13-07 768.75 05-24-07 06-12-07 560.25 1,329.00 Kraft Foods Inc. 06-26-07 07-06-07 646.25 Newell Rubbermaid Inc. 02-26-07 03-15-07 899.85 Newmont Mining Corporation 03-05-07 03-29-07 280.00 I 1 3 LONGER INVESTMENTS INCORPORATED A Registered Investment Advisor Longer Investments Inc. INCOME AND EXPENSES Fayetteville Fire Pension and Relief Fund U/A DTD 6-I8-86 From 01-01-07 Through 06-30-07 Security Ex-Date Pay-Date Amount Norfolk Southern 05-02-07 06-11-07 275.00 Northern Trust Corp. 03-07-07 04-02-07 471.25 06-06-07 07-02-07 471.25 942.50 Parker Hannifin Corp. 02-13-07 03-02-07 273.00 05-15-07 06-01-07 273.00 546.00 Patterson-UTI Energy Inc. 06-12-07 06-29-07 330.00 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 06-29-07 192.28 317.25 Teva Pharmaceuticals 06-05-07 06-05-07 247.90 Texas Instruments 01-29-07 02-12-07 124.20 04-26-07 05-21-07 293.20 417.40 The Technology Select Sec SPDR Fund 06-15-07 06-27-07 17.71 Time-Warner, Inc. 02-26-07 03-15-07 202.13 05-29-07 06-15-07 268.13 470.26 US Bancorp 4 4 L 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 06-30-07 Security Ex-Date Pay-Date Amount 03-28-07 04-16-07 1,600.00 Walmart Stores 03-14-07 04-02-07 495.00 05-16-07 06-04-07 495.00 990.00 Whole Foods Market, Inc. 04-11-07 04-24-07 337.50 Common Stock Total 40,798.13 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 4,451.14 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) 04-15-07 04-15-07 1,775.00 First Union Corp. Subordinated 6.000% Due 10-30-08 Debentures Al/A+ (NC) 04-30-07 04-30-07 750.00 Hershey Foods Corp. Notes Al/A+ 6.950% Due 08-15-12 (NC) 02-15-07 02-15-07 1,737.50 IBM Corp. Debentures Al/A+ 7.000% Due 10-30-25 (Subject to make whole call) 04-30-07 04-30-07 1,750.00 5 LONGER INVESTMENTS INCORPORATED A Registered Investment Advisor