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Home My WebLink About2014-01-23 - Agendas - FinalFayetteville Fireman's Pension and Relief Fund I Meeting Date ®i a3 1q PJA Adjourn Time 3 15 O J2 1yltPCi Subject: Motion By: !� Seconded: Roy Cate ✓ Mayor Jordan YJ Dennis Mullen ✓ Pete Reagan r/ Sondra Smith ✓ Ronnie Wood rM$G►� Subject: /i'/�yy//�} t Motion By: !� Seconded: Roy Cate LIOI Mayor Jordan YJ Dennis Mullen ✓ Pete Reagan r/ Sondra Smith °l Ronnie Wood rM$G►� Subject: *4 Motion B Seconded: Roy Cate Mayor Jordans Dennis Mullens Pete Reagan tr Sondra Smith °l Ronnie Wood" Roy Cate Mayor Jordan Dennis Mullen Pete Reagan Sondra Smith Ronnie Wood A'A Lioneld Jordan Chairman tO Pete Reagan Position 2 Retired Sondra E. Smith Secretary Taye Dennis Mullen Position 3 Retired Roy Cate Position 1 Retired Ron Wood Position 4 Retired S le Firemen's Pension and Relief Fund Board of Trustees Meeting Agenda January 23, 2014 A meeting of the Fayetteville Firemen's Pension and Relief Fund Board of Trustees will be held at 3:00 PM on January 23, 2014 in Room 326 of the City Administration Building. Call to Order Roll Call Garrison Financial: • 4th Quarter reports — December, 2013 Approval of the Minutes: • Approval of the October 31, 2013 meeting minutes Pension List Changes: None Approval of the Pension List: • Approval of the February, March and April 2014 pension lists Unfinished Business: • Actuary report — Breakdown of 2012 contribution from the city New Business: • Revenue & expense report: 41h Quarter— December 31, 2013 report • Pension Review Board Letter - Estimated 2014 Premium Tax Allocation • 2013 Local Pension Fund Report to the Council Informational: 9 2014 meeting schedule SCANNED January 8, 2014 Ms. Sondra Smith City of Fayetteville 113 West Mountain Street Fayetteville, Arkansas 72701 Dear Ms. Smith, ow, GARRISON F I N A N C I A L RECEIVED JAN 0 9 2014 CITY OF FAYETTEVI CITY CLERK'S OfF Enclosed is the quarterly report for the Firemen's Pension & Relief Fund for the quarter ended December 31, 2013. We ended the year on a high note. Equity markets surged in the 4m quarter ending the year at record highs. The equity market charged ahead +10.51% in the last three months of the year leaving year end gains at +32.39% as measured by the S&P 500. Consumer discretionary and healthcare sectors were the top performing areas while energy, utilities and telecoms lagged by a wide margin. The U.S. was once again one of the top performing markets around the globe. European equity markets rebounded with most countries up mid -teens even though the continent continues to struggle with slow economic growth. Japan was the bright spot overseas rising almost +60% to end the year at 16,291.31. Although Japan equities were strong in 2013, the Nikkei is still a far cry from the high of 38,915 set back in 1989. Developed market equities were up +23.57% as measured by the MSCI Index thanks mostly to the Japanese market. Emerging markets were once again a problem area with the Emerging Market Index retreating -2.41% for the year. Commodities were another weak area with the CRB index retreating -5.27%. Gold and silver suffered their biggest declines in over three decades, down -29% and -36%, respectively. The market gains throughout the year exceeded that of corporate earnings growth which has caused equity valuations to expand. The price/earnings ratio of the S&P 500 started the year around 14.5x and now stands at 17.3x which is closer to historic norms given the interest rate environment. While we do not believe equities are considerably overvalued, we will be monitoring corporate earnings growth to asses if these market gains are sustainable. Absent significant future earnings growth, it is unlikely the equity markets will repeat another year like 2013. However if the economy continues to gain strength, more normal gains should be likely. Interest rates also went out on a high note in 2013 with the 10 -yr Treasury (10 Yr) sitting at 3.03%, which is a level not seen since early July, 2011. The 10 Yr began the fourth quarter at 2.62%, was bumpy to a low of 2.50% in late October, and was pretty much straight up (prices down) through year-end. For all of 2013 it was a similar story, but with a wider range and more volatility. The 10 Yr began the year at around 1.78%, fell to the yearly low of 1.63% in early May, peaking first at slightly north of 3.00% in early September, back to the October low, and rising steadily through year-end. Garrison Financia! 605 W. Dickson Street, Suite 201 • Fayetteville, Arkansas 72701 479-587-1045. 888-442-7637. 479-587-1257 Facsimile 9 www.GarrisonFinancial.com For the fourth quarter, the Barclays Intermediate Government/Credit Index was essentially flat at negative -.02%, bringing the YTD return to negative -.86% on the back of continued volatility and a low -to -high rate move of 140 basis points (1.4%) from the May low of 1.63% to 3.03% at year-end: nearly double. Within the major sectors, Intermediate Government/Agencies were among the worst performing at negative -1.25% for the year. Intermediate Corporates returned +.08% for the year, with a wide dispersion between Industrials (negative -.70%) and Financials (+1.36%). In December the Fed finally signaled the economy has improved enough to ease off the gas just a smidge. The long anticipated tapering is set to take place this month with the Fed purchasing only $75 billion of Treasuries and mortgage-backed securities instead of $85 billion. Even though the dreaded taper has begun, Bernanke also indicated rates will remain low for the foreseeable future as the economic recovery remains "far from complete." Rather than throwing a tantrum like in the spring when tapering was hinted by the Fed, equity investors bid prices up to a new record high for the Dow Jones Industrial average the day of the announcement. The bond market also took the news in stride with the 10 yr rising about 19 basis points from the announcement through year-end. What does this mean for the markets going forward? The economy is expected to continue to improve, albeit sluggishly. As the economy improves, interest rates should continue their march upward toward normalcy. Even though this may cause some jitters, it will be healthy for the markets and our country in the long run. As the economy heals and the Fed reduces its intervention in the markets, asset prices will adjust accordingly, corporations will continue to produce products and invest for the future and we will continue to search for solid investments with an acceptable risk/return profile. And as always, we are working to identify companies with valuations we feel are more attractive than the broad market. As the New Year is underway, there is never a better time to think about your current investment policy and to reflect on significant changes in your life that might warrant a policy review. Part of our service to you is to review your investment policy with you when needed. Once again, it is a pleasure serving you and we appreciate your confidence in our firm. If you should have any questions please call the office. We wish you a happy, healthy and prosperous 2014. Cordially, &AT Kerry Bradley, CFA, MBA Equity Portfolio Manager Garrison Financial 605 W. Dickson Street, Suite 201 • Fayetteville, Arkansas 72701 479-587-1045 • 888-442-7637. 479-587-1257 Facsimile 9 www.GarrisonFinancial.com 0011�1, GARRISON F I N A N C I A L City of Fayetteville Firemen's Pension & Relief Fund Charles Schwab #7851-1206 Quarter Ending December 31, 2013 PORTFOLIO SUMMARY City of Fayetteville Firemen's Pension & Relief Fund Charles Schwab #7851-1206 December 31, 2013 ■ Cash & Equivalents 295,725.97 ■ Account Fixed Income 1,298,964.46 <} Account Equities 2,933,760.94 PORTFOLIO APPRAISAL City of Fayetteville Firemen's Pension & Relief Fund Charles Schwab #7851-1206 December 31, 2013 Unit Total Market Pet. Unit Annual Quantity Security Cost Cost Price Value Assets Income Income Yield CASH AND EQUIVALENTS Schwab Advisor Cash Res - 295,725.97 295,725.97 6.5 0.010 29.57 0.0 Premier 1 295,725.97 295,725.97 6.5 29.57 0.0 TREASURY NOTE 400,000 USTreasury Note 102.22 408,875.00 110.87 443,500.00 9.8 4.000 16,000.00 1.6 4.000% Due 08-15-18 Accrued Interest 6,000.00 0.1 408,875.00 449,500.00 9.9 16,000.00 1.6 CORPORATE BONDS 50,000 IBM Corp. 100.01 50,004.00 125.50 62,748.35 1.4 7.000 3,500.00 4.3 7.000% Due 10-30-25 Accrued Interest 583.33 0.0 50,004.00 63,331.68 1.4 3,500.00 4.3 COMMON STOCK 1,710 AT&T, Inc. 24.39 41,702.95 35.16 60,123.60 1.3 1.840 3,146.40 5.2 1,575 AbbVie, hic. 24.41 38,451.37 52.81 83,175.75 1.8 1.600 2,520.00 3.0 1,575 Abbott Laboratories 22.40 35,277.06 38.33 60,369.75 1.3 0.880 1,386.00 2.3 _ 2,000 American Electric 33.69 67,374.79 46.74 93,480.00 2.1 2.000 4,000.00 4.3 Power 2,300 BCE, Inc. CI F 24.40 56,110.11 43.29 99,567.00 2.2 2.330 5,359.00 5.4 700 Chevron Corporation 73.07 51,150.83 124.91 87,437.00 1.9 4.000 2,800.00 3.2 3,000 Cisco Systems, Inc. 17.43 52,302.90 22.43 67,290.00 1.5 0.680 2,040.00 3.0 2,200 Coca-Cola Company 26.40 58,074.28 41.31 90,882.00 2.0 1.120 2,464.00 2.7 1,200 ConowPhillips 44.94 53,930.85 70.65 84,780.00 1.9 2.760 3,312.00 3.9 833 Duke Energy Corp. 57.48 47,880.86 69.01 57,485.30 1.3 3.120 2,598.96 4.5 1,000 Emerson Electric 38.01 38,012.30 70.18 70,180.00 1.5 1.720 1,720.00 2.5 4,000 General Electric Co. 15.96 63,844.01 28.03 112,120.00 2.5 0.880 3,520.00 3.1 900 Genuine Parts Co. 36.65 32,986.53 83.19 74,871.00 1.7 2.150 1,935.00 2.6 2,000 GlasroSmithKline Pic 38.47 76,936.20 53.39 106,780.00 2.4 2.460 4,920.00 4.6 ADR 450 IBM Corporation 122.43 55,091.76 187.57 84,406.50 1.9 3.800 1,710.00 2.0 3,725 Intel Corp. 17.61 65,581.48 25.95 96,682.37 2.1 0.900 3,352.50 3.5 1,115 Johnson & Johnson 60.77 67,758.33 91.59 102,122.85 2.3 2.640 2,943.60 2.9 850 Kimberly Clark Corp. 60.71 51,599.58 104.46 88,791.00 2.0 3.240 2,754.00 3.1 2,700 Microsoft Corp. 26.30 71,001.40 37.41 101,007.00 2.2 1.120 3,024.00 3.0 4,120 Pfizer, Inc. 16.52 68,077.88 30.63 126,195.60 2.8 1.040 4,284.80 3.4 1,000 Procter& Gamble Co. 50.46 50,458.56 81.41 81,410.00 1.8 2.410 2,410.00 3.0 1,400 Wal-Mart Stores, Inc. 50.36 70,497.97 78.69 110,166.00 2.4 1.880 2,632.00 2.4 1,214,102.00 1,939,322.72 42.8 64,832.26 3.3 MUTUALFUNDS 1,296.008 Columbia Acom lnt'I Z 38.58 50,000.00 46.68 60,497.65 1.3 1.180 1,529.29 2.5 3,984.064 Fed Interrn Corp Bond 10.04 40,000.00 9.48 37,768.93 0.8 0.430 1,713.15 4.5 3,600.360 PIMCO Total Return Cl 11.11 40,000.00 10.69 38,487.85 0.8 0.310 1,116.11 2.9 D 4,683.407 SteelPath MLP Income 10.68 50,000.00 11.07 51,845.32 1.1 0.780 3,653.06 7.0 1,833.272 Vanguard Developed 27.27 50,000.00 33.27 60,992.96 1.3 0.900 1,649.94 2.7 Markets 1,443.113 Vanguard Emerging 34.65 50,000.00 32.65 47,117.64 1.0 0.900 1,298.80 2.8 Markets 2,615.123 Vanguard Hi -Div Yld 19.12 50,000.00 24.69 64,567.39 1.4 0.670 1,752.13 2.7 1 TOTAL PORTFOLIO 3,499,597.60 4,528,451.37 100.0 133,389.98 2.7 You should carefully compare this statement to the statement you receive from your custodian and notify us immediately of any discrepancies. 2 PORTFOLIO APPRAISAL City of Fayetteville Firemen's Pension & Relief Fund Charles Schwab #7851-1206 December 31, 2013 Unit Total Market Pct. Unit Annual Quantity Security Cost Cost Price Value Assets Income Income Yield 3,412.116 Vanguard Mid -Cap 29.31 100,000.00 38.83 132,492.46 2.9 0.230 784.79 0.6 Growth 3,410.952 Vanguard Mid -Cap 29.32 100,000.00 41.30 140,872.32 3.1 0.630 2,148.90 1.5 Value 3,290.816 Vanguard SmallCap 30.39 100,000.00 42.98 141,439.27 3.1 0.280 921.43 0.7 Growth 3,324.742 Vanguard Small -Cap 30.08 100,000.00 41.82 139,040.71 3.1 0.770 2,560.05 1.8 Value 730,000.00 915,122.49 20.2 19,127.65 2.1 UNIT TRUSTS 2,500 Sector Utility Select Shs 31.96 79,899.25 37.97 94,925.00 2.1 1.470 3,675.00 3.9 1,400 iShares Barclays 7-10 104.43 146,198.70 99.24 138,936.00 3.1 1.760 2,464.00 1.8 yr Treasury 850 iShares DJ Select Div 47.39 40,285.75 71.35 60,647.50 1.3 2.190 1,861.50 3.1 5,000 iShares IBOXX Inv 106.90 534,506.93 114.19 570,940.00 12.6 4.380 21,900.00 3.8 Grade Corp Bond 800,890.63 865,448.50 19.1 29,900.50 3.5 TOTAL PORTFOLIO 3,499,597.60 4,528,451.37 100.0 133,389.98 2.7 You should carefully compare this statement to the statement you receive from your custodian and notify us immediately of any discrepancies. 2 Garrison Financial PURCHASE AND SALE City of Fayetteville Firemen's Pension & Relief Fund Charles Schwab #7851-1206 From 01-01-13 To 12-31-13 Trade Settle Date Date Quantity SALES Unit Price Amount 05-15-13 05-20-13 1,650 Archer Daniels Midland 34.52 56,965.92 05-15-13 05-20-13 100 Chevron Corporation 122.69 12,268.85 05-15-13 05-20-13 45 Chevron Corporation 122.69 5,521.21 05-15-13 05-20-13 80 Chevron Corporation 122.69 9,815.48 01-02-13 01-02-13 351 Gen Elec Cap 6.625% 06-28-32 25.00 8,775.00 O1-02-13 01-02-13 5,000 Gen Electric Cap 6.1% 11-15-32 25.00 125,000.00 05-15-13 05-20-13 300 Kimberly Clark Corp. 104.61 31,384.15 06-13-13 06-18-13 1,675 Oracle Corporation 34.13 57,161.16 05-15-13 05-20-13 300 Procter & Gamble Co. 80.75 24,224.05 05-15-13 05-20-13 100 Procter & Gamble Co. 80.75 8,074.68 06-13-13 06-18-13 1,000 Sector Utility Select Shs 37.72 37,722.39 06-13-13 06-18-13 1,000 iShares DJ Select Div 64.83 64,831.92 441,744.81 Garrison Financial REALIZED GAINS AND LOSSES City of Fayetteville Firemen's Pension & Relief Fund Charles Schwab #7851-1206 From 01-01-13 Through 12-31-13 Open Close Date Date Quantity Security Cost Basis Proceeds Gain Or Loss ShortTerm Long Term 12-31-05 01-02-13 5,000 Gen Electric Cap 6.1% 124,888.90 125,000.00 111.10 11-15-32 12-31-05 01-02-13 351 Gen Flee Cap 6.625% 8,783.51 8,775.00 -8.51 06-28-32 12-31-05 05-15-13 1,650 Archer Daniels Midland 52,809.08 56,965.92 4,156.84 12-31-05 05-15-13 100 Chevron Corporation 7,307.26 12,268.85 4,961.59 12-31-05 05-15-13 45 Chevron Corporation 3,288.27 5,521.21 2,232.94 12-31-05 05-15-13 80 Chevron Corporation 5,845.81 9,815.48 3,969.67 12-31-05 05-15-13 300 Kimberly Clark Corp. 18,211.62 31,384.15 13,172.53 12-31-05 05-15-13 300 Procter & Gamble Co. 15,137.57 24,224.05 9,086.48 12-31-05 05-15-13 100 Procter& Gamble Co. 5,045.86 8,074.68 3,028.82 12-31-05 06-13-13 1,000 iShares DJ Select Div 47,395.00 64,831.92 17,436.92 12-31-05 06-13-13 1,675 Oracle Corporation 26,297.33 57,161.16 30,863.83 12-31-05 06-13-13 1,000 Sector Utility Select Shs 31,959.70 37,722.39 5,762.69 TOTAL GAINS 0.00 94,783.42 TOTAL LOSSES 0.00 -8.51 346,969.90 441,744.81 0.00 94,774.91 TOTAL REALIZED GAIN/LOSS 94,774.91 CAPITAL GAIN DISTRIBUTIONS 12-04-13 Fed Interni Corp Bond 2,146.96 12-11-13 Columbia Acom Intl Z 2,496.29 12-11-13 PIMCO Total Return Cl D 41.26 12-11-13 PIMCO Total Return Cl D 215.88 TOTAL DISTRIBUTIONS 4,900.39 41.26 4,859.13 41.26 99,634.04 TOTAL GAIN/LOSS 99,675.30 Garrison Financial PERFORMANCE SUMMARY GROSS OF FEES City of Fayetteville Firemen's Pension & Relief Fund Charles Schwab #7851-1206 December 31, 2013 PORTFOLIO COMPOSITION CHANGE IN PORTFOLIO TIME WEIGHTED RETURN Market Pct. Annualized Quarter Value Assets Yield To Date Cash & Equivalents 295,725.97 6.5 0.0 Portfolio Value on 12-31-12 4,533,056.42 Account Fixed 1,298,964.46 28.7 2.8 Accrued Interest 6,583.33 Income Equity Blended Index Account Equities 2,933,760.94 64.8 3.0 Net Additions/Withdrawals -622,627.09 Account 0.00 0.0 - Realized Gains 38,981.29 Commodities Account Equities 7.74 25.45 25.45 17.43 S&P 500 10.51 Unrealized Gains 432,935.46 22.28 Income Received 139,521.95 Change in Accrued Interest 0.00 Portfolio Value on 12-31-13 4,521,868.03 Accrued Interest 6,583.33 Total 4,528,451.37 100.0 2.7 4,528,451.37 TIME WEIGHTED RETURN All "Account" returns refer to your portfolio. Benchmark indexes are also listed for reference. All returns are reported as percentages. This report is calculated using industry -standard accounting and performance calculation methodologies and is generated by our Axys portfolio accounting software. Calculations are a time -weighted total return series based on monthly valuations, including all cash and equivalents. All calculations are done based on trade date, employing the accrual method of accounting and include cash, interest, dividends and realized and unrealized gains and losses. Performance is adjusted to accurately reflect portfolio deposits and withdrawals. Results are presented after transaction costs but before management fees. Inception -to -date returns are annualized numbers, except for accounts under management less than one year. Unsupervised assets are excluded in performance calculation. At any given point in time an investment may be worth more or less than the original purchase price. Annualized Quarter Year Last 12 Inception To Date To Date Months To Date Account 4.91 14.32 14.32 10.90 40% Fixed Income/60% 6.21 18.10 18.10 13.45 Equity Blended Index Account Fixed Income 0.08 -2.64 -2.64 1.05 Barclays Capital Intermed -0.02 -0.86 -0.86 1.01 Govt/Credit Account Equities 7.74 25.45 25.45 17.43 S&P 500 10.51 32.39 32.39 22.28 All "Account" returns refer to your portfolio. Benchmark indexes are also listed for reference. All returns are reported as percentages. This report is calculated using industry -standard accounting and performance calculation methodologies and is generated by our Axys portfolio accounting software. Calculations are a time -weighted total return series based on monthly valuations, including all cash and equivalents. All calculations are done based on trade date, employing the accrual method of accounting and include cash, interest, dividends and realized and unrealized gains and losses. Performance is adjusted to accurately reflect portfolio deposits and withdrawals. Results are presented after transaction costs but before management fees. Inception -to -date returns are annualized numbers, except for accounts under management less than one year. Unsupervised assets are excluded in performance calculation. At any given point in time an investment may be worth more or less than the original purchase price. GARRISON F I N A N C I A L January 8, 2014 City of Fayetteville Firemen's Pension & Relief Fund Charles Schwab #7851-1206 113 West Mountain Street Fayetteville, AR 72701-6069 STATEMENT OF MANAGEMENT FEES For The Period October I through Dectember 31, 2013 Portfolio Value as of 09-30-13 4,479,724 Portfolio Value as of 10-31-13 4,525,608 Portfolio Value as of 11-30-13 4,499,977 Portfolio Value as of 12-31-13 4,528,451 Average of 4 Months 4,508,440 4,508,440 @ 0.5000% per annum 5,636 Quarterly Management Fee 5,636 TOTAL DUE AND PAYABLE 5,636> This statement is for informational purposes only. As you requested, the fee will be automatically deducted from your account. Please be advised that it is the responsibility of the client to verify the accuracy of each fee calculation. The custodian will not determine whether the fee is properly calculated. Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes October 31, 2013 Page I of 8 Lioneld Jordan Chairman, Pete Reagan Position 2 Retired Sondra E. Smith Secretary Dennis Mullen5 Position 3 Retired Roy Cate Position 1 Retired1"aye 01 T le Ron Wood Position 4 Retired ARKANSAS Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes October 31, 2013 A meeting of the Fayetteville Firemen's Pension and Relief Fund Board of Trustees was held at 3:00 PM on October 31, 2013 in Room 326 of the City Administration Building. Pete Reagan called the meeting to order. Present: Roy Cate, Pete Reagan, Ronnie Wood, Sondra Smith, City Clerk, Kit Williams, City Attorney, Glenn Atkins and James Bell of Garrison Financial. Absent: Mayor Jordan, Dennis Mullens Garrison Financial: 3rd quarter reports: A copy was given to the board. James Bell, Equity Portfolio Manager for Garrison Financial: Briefly I will go over your 3`d quarter financial reports. At the end of the 3`d quarter the portfolio was at $4.48 million. The policy is 60% equity and 40% fixed income. The actual allocation at the end of the quarter was 61% equities, about 29.2% fixed income. We are slightly overweight equity and slightly underweight fixed income at the end of the quarter, the reason being is we hold plenty of cash in the portfolio in anticipation of future monthly distributions. We have about $400,000 in cash at the end of the quarter. That's also been a function of how well the equity markets have performed this year versus fixed income markets. Equity markets have been strong. We had no sales in the 3`d quarter, there was plenty of cash on hand to fund the distributions as we went through the 3`d quarter. We had some sales early in the year to raise cash to fund distributions, but none in the 31d quarter. For the quarter, the portfolio as a whole was up 2.13%, and year to date, the portfolio is up almost 9%. Glenn Atkins, Fixed Income Manager for Garrison Financial: Thank you all for allowing us to come and visit every quarter. I'll direct you to this piece of information that I passed out a few minutes ago. Let's turn briefly to the second page. In the upper left hand comer, I used a portfolio value of $4.5 million, and that was as of a couple of days ago. So it's slightly different than quarter end. In the middle of the page, in the red box, $677,000 that is the withdrawals over the last twelve months. Then we have modeled in an 8% expected return on stocks, 3% on bonds at an allocation of 60% equities and 40% fixed income. On the third page, this is very similar to the information that we have been providing you guys now for a few quarters. It's an estimate of, given the Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes October 31, 2013 Page 2 of 8 withdrawal rates and the expected returns, how might the portfolio perform over the next ten years. The portfolio is slightly healthier than it was when we were here on July 25l'. Where you see the probabilities on the far right hand corner, the last green number there is the 78%, and that is the portfolio has a 78% chance of not running out of money in the seventh year. If I remember correctly, last time it was the sixth year. We've modeled it with current market value and last twelve month withdrawal to give you this kind of an estimate. We will continue to do that every quarter and provide you with whatever information that we can. At this point, we will open it up for questions, comments, observations, thoughts, ideas. Kit Williams, City Attorney: Are you also taking into consideration here the millage that is paid into the fund every year? There is a .4 mil that goes into the fund. Glenn Atkins: It's in the value of the $4.5 million, it doesn't show in this example as an income fund. Kit Williams: So otherwise the $677,000 would be more? James Bell: Correct. There are months when we don't do a distribution to the account because the money is substantial enough that it doesn't have to come from this portfolio. Pete Reagan: We are running this off of the $677,000 expense? Glenn Atkins: That is the actual withdrawals for the last twelve months. Pete Reagan: Right. Glenn Atkins: When we were here in July and did this, the figure that we used for withdrawals was $720,000. Every quarter we will do the last twelve months, or we can do it however you guys want too. Sondra Smith, City Clerk: The turn back money and any income is included in the $677,000. The millage, turn back money, all that is taken into account when you come up with that number? Glenn Atkins: Yes. Trish Leach: What we do each month, I look at the needs with the cash balances and the bank account that we keep for the Fire Pension. Then I send Garrison an e-mail and say, these are the expenses, this is how much money we need to draw. Deborah keeps me posted on how much money is coming in from the County. We try to take as little money out of Garrison as we can. When we get this income from other sources, it reduces the withdrawal. James Bell: The $677,000 isn't the total that is spent, it's just the total that is pulled from this portfolio. I would almost think of it as a net number, net of the tax receipts. Kit Williams: What is the actual gross that we are spending, do you know that? Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes October 31, 2013 Page 3 of 8 Trish Leach: It's in the pension list. Pete Reagan: It is almost $1.2 million. There's no mortality rate figured in on that either? James Bell: No sir, this is strictly dollars in and dollars out. Pete Reagan: Right, and that's based off of the $677,000. Sondra Smith: We are currently paying out $113,000 per month. Pete Reagan: So it's $1.161 million. Sondra Smith: Some months they may ask for a draw of $100,000 and some months they may not even ask for a draw at all because of other incomes coming in. Glenn Atkins: What we can do, if you want, we can use a two year average withdrawal rate or we can do the last twelve months. However you guys think is the most accurate. Sondra Smith: I think the last twelve months is the most accurate. Glenn Atkins: Implicit in our net withdrawal number of $677,000 or $720,000 last quarter, it is off -set by the millage. But, within that number, it does have some degree of mortality assumption in it because the actuarial reports, and the commitments that the fund has, drive the withdrawals. So, there is some of that imbedded in there. We will just do it on a rolling twelve month basis every quarter and just take a snapshot of it. Pete Reagan: I think that's a good idea. Glenn Atkins: Again, anytime you're looking at something like this, the first year is going to be the twelve months forward. Kit Williams: So, in 2020 there's a reasonable chance that they could be out of the fund money? Glenn Atkins: Yes sir. Based on this statistical model, there is a 49% chance of not running out of money in 2020—What this model does, Mr. Williams, is it models 1,000 possible scenarios in each of the next ten years. Some of them the portfolio grows, some of them the portfolio declines based on market conditions. The far right hand column that we are looking at here, for example, the 78%, the last green number, of those 1,000 portfolio simulations 78% of them survive. What that tells you is that you have a 78% chance of not running out of money in the seventh year. The column immediately to the left of that, which is labeled average residual, the interpretation of that column is of the 78% of the portfolios that survive, the average balance of that is a million and one. In the first green column, the third one from the right, that is just a straight line assumption based on the withdrawal rates and the expected return. As we all know, the markets don't go up 6%,6%,6%, they go up 9% or 10%, down 4% or 5%. Pete Reagan: We don't want to be in the ones that go down. Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes October 31, 2013 Page 4 of 8 Glenn Atkins: No, you don't and we don't either. Fortunately, for the last year or so, the market has done really well. The thing that you want to focus on is the last two columns there because that's a statistical analysis of 1,000 different things that could potentially happen to this and I think it's a more accurate representation than a pure straight line. Roy Cate: So the $677,000 is used through every year, the withdrawal? Will that change? Sondra Smith: We anticipate that probably going down. We hope maybe it doesn't. If it goes down, that means someone has deceased. Roy Cate: In July we were looking at $720,000 and now, when you put this together, you're using the $677,000. Everything can change, but, that's the only way you can do the present withdrawal. James Bell: That's kind of our thought. There is a function of mortality like Pete said, but that number can change again based on the receipts of other revenue as well. That's not really under our control if you will. There's two factors that play there on how hard you pull on the portfolio. Glenn Atkins: I think it would be equally correct to do it on a last twelve month withdrawal or an average of the last twenty-four months. If you are good with the last twelve months, we'll just do it that way. Pete Reagan: Last twelve months is fine. It wouldn't be that hard to go back twenty-four if we had too. Glenn Atkins: No. We can send this stuff to you guys in between quarterly meetings too, and look at it at a two or three year average. Trish Leach: I can think of one person that deceased, that was a significant amount going out of the fund and by looking at the last twelve months, you pick up the decreased withdrawal. When we pull money from Garrison, it's kind of like pulling money from your savings account. Like I said, we try to draw as little as we have too. James Bell: I've got a report here, I didn't include it in your packet, I just happen to have it, it's all of the withdrawals of the last twelve months. There are months when nothing gets pulled from this portfolio because there are funds from elsewhere. Trish Leach: We get tum back money from the state, and money from the county. We try to watch it as closely as possible. Pete Reagan: We get county money in November. Kit Williams: The end date to pay your property tax is October. Trish Leach: The money you will get coming up, there's a good chance we won't have to draw anything. We'll have to wait and see what we get in. Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes October 31, 2013 Page 5 of 8 James Bell: It looks like December and January, nothing was pulled. Trish Leach: There's a delay on getting your money too. Pete Reagan: Do they pay it all at once, or do they pay it quarterly? Kit Williams: I think they pay it as they accumulate it. There are some regular payments, a lot of mortgages have property tax, so it goes in regularly as mortgage gets paid. Trish Leach: They give it to us once they've collected it. Glenn Atkins: How many beneficiaries are there for this portfolio? Sondra Smith: I'll give you a copy of this. Some of them are drawing extra benefits. You can't count each one of them because you have some that are drawing extra benefits, and you have some that drawing because of a qualified domestic relations order. If their ex-spouse deceases, then their portion would stop too. You've got to take all that into consideration Pete Reagan: Then if you would like, we can get you that information. Sondra Smith: I can give it to you in just a second. Trish and I put that on our spreadsheet that we do on the turn back money. Pete Reagan: Does it show those on the spousal benefits? Sondra Smith: Yes, I've got it broken down on the turn back money. You also have to take into consideration that some of them are volunteer firemen and their amount is a lot less than a regular fireman draws. All that makes a huge difference. If a volunteer fireman deceases, it's not going to affect your plan as much as somebody that's making $2,000 to $3,000 a month. There's nine volunteers, which includes the spouses, and forty-six pensioners, widows and other people drawing, no quatros included. Trish Leach: If you look at the list along that left hand side, the S is for spouse, the V is for volunteers, the VS is volunteer spouse. There are reports we have to do that we have to keep track of that. Glenn Atkins: So, roughly fifty-five or so? Sondra Smith: I have a total of fifty-seven, counting the quatro people that are drawing a check. The quatro splits 50/50 between the ex-husband and the ex-wife, right? Kit Williams: It depends on what the judge says, but that's normal. James Bell: It looks like there's fifty-seven here in this actuarial report as well. Glenn Atkins: Ok, I appreciate that. I was curious. Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes October 31, 2013 Page 6 of S Sondra Smith: The nine volunteers are really drawing a very small amount, under $200 a month and closer to $100 a month. Kit Williams: The older members of the regular firemen were also receiving smaller wages when they retired. They aren't going to be drawing as much as our later retirees. Sondra Smith: Then we have three that draw an extra benefit because of years of service. That's on that list too. Glenn Atkins: Do you guys have any questions or comments for us? What can we do to better serve you? Pete Reagan: I think you're doing an excellent job myself. Glenn Atkins: We appreciate that and we are grateful for the business and your relationship. Approval of the Minutes: Approval of the July 25, 2013 meeting minutes Pete Reagan: Any additions or deletions? Ron Cate moved to approve the July 25, 2013 meeting minutes. Ron Wood seconded the motion. Upon roll call the motion passed 4-0. Dennis Mullens and Mayor Jordan were absent. Pension List Changes: Maggie Watts — deceased August 4, 2013 Approval of the Pension List: Re -Approval of the September and October 2013 pension lists (Maggie Watts deceased 08/04/13. Monthly benefit was $437.09) Sondra Smith: Because you approve your pension list in advance, in July you approved the August, September and October pension lists. She deceased in August, so that one is correct. But, we've have revised the September and October pension list. We'll need to approve those revised ones, and we have the November, December and January list that we need to approve also. Roy Cate moved to re -approve the September and October 2013 pension lists. Ron Wood seconded the motion. Upon roll call the motion passed 4-0. Dennis Mullens and Mayor Jordan were absent. Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes October 31, 2013 Page 7 of 8 Approval of the November and December 2013 and January 2014 pension lists Roy Cate moved to approve the November and December 2013 and January 2014 pension lists. Ron Wood seconded the motion. Upon roll call the motion passed 4-0. Dennis Mullens and Mayor Jordan were absent. New Business: Revenue & expense report: 3`d Quarter — September 30, 2013 report Pete Reagan: This is one that Trish does for us. Trish Leach: Toni actually does it. I'll give her credit because she does all the work. 2012 Annual Actuarial Valuation Sondra Smith: This is the actuarial valuation we receive every year. The page that is a concern is where you have the unfunded liability. I'm looking on page ten, it shows that at the end of 12/31/2012 your unfunded liability is $15,159,613. According to the actuarial report, you are only 22.9% funded. In 12/31/2011 you had an unfunded liability of $14,915,285 and you were 26% funded. Pete Reagan: Trish, on page four, down at the bottom in bold, it said the actual 2012 contribution was $741,091 from the employer. Trish Leach: They get that from the report we prepare for them and that's based on the different revenues. It's not something the city contributes, it is the different sales tax revenues we take in. Pete Reagan: I'm going to say that's millage and insurance turn back. Kit Williams: Basically, everything they get through us, not including any special general fund money. It is the millage and other money we get. January 30, 2014 meeting is during the Arkansas Municipal League Conference. The Mayor and Sondra will be attending the conference. Do we want to reschedule the January 30, 2014 meeting? Pete Reagan: We've temporarily rescheduled that for January 23 at 3:00 p.m. here in this room if it is open. Sondra Smith: I've already booked it in this room as tentative. I will send you all an e-mail as a reminder. Did everyone receive the e-mail about the meeting and the minutes? We have a new e- mail system. Firemen's Pension and Relief Fund Board of Trustees Meeting Minutes October 31, 2013 Page 8 of 8 Roy Cate, Ron Wood and Pete Reagan stated they received their emails. NCPERS Invoice Sondra Smith: There is an invoice from NCPERS. It's really early to pay that, but they always send it to us early. It has gone up a lot, it is $250 now. Pete Reagan: It used to be $125. Sondra Smith: That's all the e-mails you receive from us. We get at least one if not two every day from NCPERS. Kit Williams: Did they say why they've gone up? Did they explain the increase? Sondra Smith: No. Pete Reagan: They have a board that governs them, so I'm sure it's a board decision Sondra Smith: If we want to pay that, then the board has to approve that payment. I wanted to make everyone aware that it has gone up tremendously. Pete Reagan: I think it's the same as it was last year. I think it went up last year. Sondra Smith: It's gone up some the past two or three years. Last year it was $225. Pete Reagan: I do read those and keep up with what's going on around the county with pensions. This is a very good source and a good advocate for us on Capitol Hill for public employees. They don't just do fire, they do municipal and state employees. Roy Cate moved to approve NCPERS payment in December. Ron Wood seconded the motion. Upon roll call the motion passed 4-0. Dennis Mullens and Mayor Jordan were absent. Informational: 2014 meeting schedule Adjourn Time: 4:01 p.m. FIREMEMS RELIEF AND PENSION February 2 2 2014 2 2 2 2' THE FOLLOWING ARE THE OBLIGATIONS OF THE FIREMENSS 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. Regular Mo Year To Date Bene01 Reg Benefit 2,618.55 5,237.10 1,802.08 3,604.16 109.27 DATE OF 2,988.76 EMP# RETIREMENT NAME 177 4104 BACHMAN, EDDIE 74 3186 BAIRD, JULIA 63 5172 BOLAIN, ANN 68 7/99 SONADUCE, MICHAEL 44 9186 BOUDREY, BETTY MRS, 45 9186 SOUDREY, HOWARD 49 7188 BOUDREY, JACK 57 5/90 CATE, ROY 6 41fi8 CHRISTIE, AR14OLD 188 12MS DOSS, MARION H 188 12105 DOSS, MARION H pure 25 eaa0ioMl pay 11 2178 FARRAR,ALONZO 192 4/06 FARRAR, DANNY 38 5184 FRALEY. JOSEPH G. 170 sm FREEDLE, LARRY 170 5/03 FREEDLE, LARRY pWs 25 additional pay 92 03102 GAGE,TOMMY 34 6179 HARRIS, JAMES E. 70 11M HARRIS, MARY RUTH 182 10104 JENKINS, EILEEN 93 06102 JENKINS, JOHN 86 07101 JOHNSON,ROBERT 64 4195 JORDAN, CHARLIE 76 5168 JUDY, JAN 37 3184 KING, ARNOLD O. 64 5189 KING, ARVIL 173 12103 LEDBETTER,DENNIS 51 10088 LEWIS, CHARLES 40 9185 LOGUE, PAUL D. 202 02108 MAHAN, MARSHALL 50 9186 MASON, LARRY 39 4185 MC ARTHUR, RONALD A. 35 2/62 MC CHRISTIAN, DWAYNE 15 4177 MC WHORTER, CHARLES 209 8/81 MILLER, ALICE GAYLE 73 2100 MILLER,KENNETH 73 2/00 MILLERKENNETH plus 25 additional pay 217 2086 MOORE, BETTY L 176 4104 MORRIS, DIXIE E. 48 7/88 MULLENS, DENNIS W. 184 3/05 NAPIER, LONNIE 198 01102 ONEAL, TEDDY 46 5188 OSBURN, TROY 81 02101 PHILLIPS,LARRY 203 02108 PIERCE, JOEY 63 2189 POAGE, LARRY 166 06105 REAGAN, PETE 201 ^02008 REED, JUNE 41 9185 SCHADER, TROY 190 04106 SHACKELFORD, GLEN 35 5176 SPRINGSTON, CARL 90 03102 STOUT, IMOGENE W. 165 12102 TATE, RALPH 65 3/66 TUNE, BILUE SUE 71 1/00 WARFORD,THOMAS 88 01102 WOOD,RONNIED 208 9188 WRIGHT, Barbara Regular Mo Year To Date Bene01 Reg Benefit 2,618.55 5,237.10 1,802.08 3,604.16 109.27 218.57 2,988.76 5,977.52 2,477.42 4,954.84 2,089.28 4,178.56 1,647.63 3,295.26 1,788.90 3,577.80 109.27 218.54 5,376.91 10,763.82 731.61 1,463.22 998.86 1,997.72 4,155.36 8,310.72 1,766.12 3,538.24 3,816.75 7,633.60 141.37 282.74 2,598.69 5,19358 109.27 218.54 109.27 218.54 1,786.75 3,577.50 1,788.76 3,577.52 3,073.47 6,146.94 2,274.95 4,549.90 1,647.63 3,295.28 1,522.37 3,044.74 1,711.21 3,422.42 3,775.80 7,551.60 1,647.63 3,295.26 2,886.28 5,736.56 4,077.28 8,15456 1,631.25 3,262.50 1,753.74 3,507.48 109.27 218.54 1,334.51 2,659.02 1,304.07 2,608.14 3,100.02 6,360.04 170.60 341.20 109.27 218.54 125.66 251.32 2,191.30 4,382.60 3,518.28 7,036.56 4,120.99 6,241.98 1,899.66 3,799.32 2,765.09 5,530.18 3,647.18 7,294.36 2,346.70 4,693.40 3,W&71 7,071.42 109.27 218.64 1,624.99 3,049.98 3,647.18 7,294.36 806.19 1,61258 767.80 1,635.60 3,668.10 7,336.20 136.59 273.18 2,502.72 5,005.44 3,077.15 6,154.30 1,691.34 3,382.68 113,286.13 226,57226 1/142014 K1Fire PensionlPenew UsOPenston List 2014TP 020114 WM DATE OF EMPBRETIREMENT NAME Regular Mo Year To Date BeneM Reg Benefit WE, THE UNDERSIGNED, DO SOLEMNLY SWEAR THAT THE ABOVE OBLIGATIONS ARE JUST AND CORRECT; THAT NO PART THEREOF HAS BEEN PREVIOUSLY PAID; THAT THE PENSION PAYMENTS SO CHARGED ARE IN ACCORDANCE WITH THE ACTIONS OF THE BOARD OF TRUSTEES OF THE FIREMEN'S RELIEF AND PENSION FUND; THAT THE SERVICES OR SUPPLIES FURNISHED, AS THE CASE MAY BE, WERE ACTUALLY RENDERED OR FURNISHED; AND THAT THE CHARGES MADE THEREFORE DO NOT EXCEED THE AMOUNT ALLOWED BY LAW OR THE CUSTOMARY CHARGE FOR SIMILAR SERVICES OR SUPPLIES SECRETARY CHAIRMAN AND PRESIDENT ACKNOWLEDGEMENT STATE OF ARKANSAS ) COUNTY OF WASHINGTON) SWORN TO AND SUBSCRIBED BEFORE ME THIS DAY OF MY NOTARY PUBLIC 1/74/2014 K:Wire PensimV>ension UsWension Ust 20147P 020114 WM FIREMEN'S RELIEF AND PENSION Marob 3 3 2014 3 3 3 3 THE FOLLOWING ARE THE OBLIGATIONS OF THE FIREMEN'S RELIEF FUND FOR THE MONTH LISTED ABOVE YOU ARE HEREBY INSTRUCTED TO ISSUE CHECKS TO THE PAYEES, IN THE AMOUNTS SHOWN. AND FOR THE PURPOSE SO STATED. DATE OF EMP# RETIREMENT NAME 177 4104 BACHMAN, EDDIE 74 3186 BAIRD, JULIA 63 5172 BOLAIN, ANN 68 7199 BONADUCE, MICHAEL 44 9188 BOUDREY, BETTY MRS. 45 9/86 BOUDREY, HOWARD 49 7188 BOUDREY, JACK 57 5/90 CATS, ROY 6 4168 CHRISTIE, ARNOLD 188 12/05 DOSS, MARION H 188 12105 DOSS, MARION H Pius 25 addmonal pay 11 2116 FARRARALONZO 192 4106 FARRAR, DANNY 38 5184 FRALEY, JOSEPH G. 170 5213 FREEDLE, LARRY 170 5103 FREEDLE, LARRY Plan 25 sadtilwal pay 92 03102 GAGE,TOMMY 34 6179 HARRIS, JAMES E. 70 11199 HARRIS, MARY RUTH 182 10104 JENKINS, EILEEN 93 06102 JENKINS, JOHN 86 07101 JOHNSON,ROBERT 64 4/95 JORDAN, CHARLIE 76 5188 JUDY, JAN 37 3184 KING, ARNOLD D. 54 5189 KING, ARVIL 173 12103 LEDBETTER, DENNIS 51 10/88 LEWIS, CHARLES 40 9185 LOGUE, PAUL D. 202 02/08 MAHAN, MARSHALL 50 9188 MASON, LARRY 39 4M5 MC ARTHUR, RONALD A. 35 2182 MC CHRISTIAN, DWAYNE 15 4/77 MC WHORTER, CHARLES 209 8181 MILLER, ALICE GAYLE 73 2100 MILLER,KENNETH 73 2100 MILLER,KENNETH plus 26 additional pay 217 2186 MOORE, BETTY L 176 4104 MORRIS, DIXIE E. 48 7/88 MULLENS, DENNIS W. 184 SKIS NAPIER, LONNIE 196 01/02 ONEAL, TEDDY 46 5188 OSBURN, TROY 81 02401 PHILLIPS,LARRY 203 02/08 PIERCE, JOEY - 53 2189 POAGE, LARRY 186 06105 REAGAN, PETE 201 ^07/08 REED, JUNE 41 9185 SCHADER, TROY 190 04!06 SHACKELFORD, GLEN 36 5/76 SPRINGSTON, CARL 90 03102 STOUT, IMOGENE W. 185 12102 TATE,RALPH 65 3/88 TUNE, BILLIE SUE 71 1/00 WARFORD,THOMAS 88 01102 WOOD,RONNIE D 208 9188 MIGHT, Barbra Regular Mo Year To Dale Benefit Reg Bene& 2,618.55 7,855.65 1,802.08 5,406.24 109.27 327.81 2,088.76 8,968.28 2,477.42 7,432.25 2,089.28 6,287.84 1,647.63 4,942.89 1.788.90 5,366.70 10927 327.81 5,376.91 16,130.73 731.61 2,194.83 998.86 2,996.58 4,165.36 12,466.08 1,768.12 5,304.36 3,816.75 11,450.25 141.37 424.11 2,596.69 7,790.07 109.27 327.81 109.27 327.81 1,788.75 5,366.25 1,788.76 5,366.28 3,073.47 9,220.41 2,274.95 6,824.85 1,647.63 4,942.89 1,522.37 4,567.11 1,711.21 5,133.63 3,775.80 11,327.40 1,647.63 4,942.89 2,868.28 8,604.84 4,077.28 12,231.84 1,631.25 4,893.75 1,753.74 5,281.22 109.27 327.81 1,334.51 4,OD3.63 1,304.07 3,912.21 3,180.02 9,540.06 170.60 511.80 109.27 327.81 125.86 376.98 2,191.30 6,573.90 3,518.28 10,554.84 4,120.99 12,362.97 1,899.66 5,698.98 2,765.09 8,295.27 3,647.18 10,941.54 2,346.70 7J140.10 3,535.71 10,607.13 10927 327.81 1,524.99 4,574.97 3,647.18 10,941.54 808.19 2,418.57 767.80 2,303.40 3,668.10 11,004.30 136.59 409.77 2,502.72 7,506.18 3,077.15 9,231.45 1,691.34 5,074.02 113,288.13 339,85839 1/14/2014 K:1Fire Penalon)Pemft UstlPrWw List 20147P 030114 WM DATE OF Regular Mo Year To Date EMPO RETIREMENT NAME SeneM Reg Benefit 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 FIREMEMS RELIEF AND PENSION FUND; THAT THE SERVICES OR SUPPLIES FURNISHED, AS THE CASE MAY BE, WERE ACTUALLY RENDERED OR FURNISHED; AND THAT THE CHARGES MADE THEREFORE DO NOT EXCEED THE AMOUNT ALLOWED BY LAW OR THE CUSTOMARY CHARGE FOR SIMILAR SERVICES OR SUPPLIES SECRETARY CHAIRMAN AND PRESIDENT STATE OF ARKANSAS ) COUNTY OF WASHINGTON) SWORN TO AND SUBSCRIBED BEFORE ME THIS DAY OF , NOTARY PUBLIC MY COMMISSION EXPIRES: 1/14/2014 K:1Pim PenslmNension LWLDensim LW 2014TP 030114 WM FIREMEN'S RELIEF AND PENSION April 4 4 2014 4 4 4 4 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. Regular Mo YwTo Date Benefit Reg Benefit 1114r.014 K:Uim Pen9imVenelen LW PenWn List 2014T -P 040114 WM 2.618.65 10,474.20 1,802.08 7,208.32 109.27 437.08 2,988.76 11,955.04 2,477.42 9,909.68 2,08926 8,357.12 1,647.63 6,590.52 1,788.90 7,155.60 109.27 437.08 5,376.91 21,507.64 731.61 2,926.44 998.86 3,995.44 4,155.36 16,621.44 1,768.12 7,072.48 3,816.75 15,267.00 141.37 565.48 2,596.60 10,386.76 109.27 437.06 109.27 437.08 1,788.75 7,155.00 1,786.76 7,155.04 3,073.47 12,293.88 2,274.95 9,099.80 1,647.63 6,590.52 1,522.37 6,089,48 1,711.21 6,844.84 3,775.80 15,103.20 1,647.63 6,590.52 2,868.28 11,473.12 4,077.28 16,309.12 1,631.25 6,525.00 1,753.74 7,014.96 109.77 437.08 1,334.51 5,338.04 1,304.07 5,21628 3,180.02 12,720.06 170.00 682.40 109.27 437.08 125.66 602.64 2,191.30 8,765.20 3,518.28 14,073.12 4,120.99 16,483.96 1,899.66 7,598.64 2,765.09 11,060.36 3,647.18 14,688.72 2,346.70 9,388.80 3,535.71 14,142.84 109.27 437.06 1,524.99 6,099.96 3,647.18 14,688.72 806.19 3,224.76 767.80 3,071.20 31688.10 14,672.40 138.59 546.36 2,502,72 10,010.86 3,077.15 12,308.60 1,691.34 8,765.36 113286.13 453.144.52 DATE OF EMP# RETIREMENT NAME 177 4104 BACHMAN, EDDIE 74 3/86 BAIRD, JULIA 63 5172 BOLAIN, ANN 68 7199 BONADUCE, MICHAEL 44 9/86 BOUDREY, BETTY MRS. 45 9185 BOUDREY, HOWARD 49 766 BOUDREY, JACK 57 5190 CATS, ROY 6 4186 CHRISTIE, ARNOLD 188 12105 DOSS, MARION H 188 12105 DOSS, MARION H plus 25 add'nional pay 11 2f76 FARRARALONZO 192 4106 FARRAR, DANNY 38 6184 FRALEY. JOSEPH G. 170 5103 FREEDLE, LARRY 170 5103 FREEDLE, LARRY plus 25 additional pay 92 03/02 GAGE,TOMMY 34 6/79 HARRIS, JAMES E. 70 11/99 HARRIS, MARY RUTH 182 10/04 JENKINS, EILEEN 93 06!02 JENKINS, JOHN Be 07/01 JOHNSON,ROBERT 64 4195 JORDAN, CHARLIE 76 5188 JUDY, JAN 37 3164 KING, ARNOLD D. 54 569 KING, ARVIL 173 12(03 LEDBETTER, DENNIS 51 10/88 LEWIS, CHARLES 40 9185 LOGUE, PAUL D. 202 02818 MAHAK MARSHALL 60 9188 MASON, LARRY 39 4/85 MC ARTHUR, RONALD A. 35 2182 MC CHRISTIAN, DWAYNE 15 4177 MC WHORTER, CHARLES 209 Sal MILLER, ALICE GAYLE 73 2100 MILLERXENNETH 73 2100 MILLERKENNETH plus 25 addifional pay 217 2186 MOORE, BETTY 176 4/04 MORRIS, DI10E E. 48 7188 MULLENS, DENNIS W. 184 3105 NAPIER, LONNIE 196 01/02 ONEAL, TEDDY 46 5893 OSSURN, TROY 81 02101 PHILUPS,LARRY 203 02108 PIERCE, JOEY 63 2/89 POAGE, LARRY 186 08/05 REAGAN, PETE 201 NO2/08 REED, JUNE 41 9185 SCHADER TROY 190 04/06 SHACKELFORD, GLEN 36 5(76 SPRINGSTON, CARL 90 03102 STOUT, IMOGENE W. 165 12/02 TATE, RALPH 65 3168 TUNE, BILLIE SUE 71 1/00 WARFORD,THOMAS Be 01102 WOOD,RONNIE D 208 9188 WRIGHT, Ber0ara Regular Mo YwTo Date Benefit Reg Benefit 1114r.014 K:Uim Pen9imVenelen LW PenWn List 2014T -P 040114 WM 2.618.65 10,474.20 1,802.08 7,208.32 109.27 437.08 2,988.76 11,955.04 2,477.42 9,909.68 2,08926 8,357.12 1,647.63 6,590.52 1,788.90 7,155.60 109.27 437.08 5,376.91 21,507.64 731.61 2,926.44 998.86 3,995.44 4,155.36 16,621.44 1,768.12 7,072.48 3,816.75 15,267.00 141.37 565.48 2,596.60 10,386.76 109.27 437.06 109.27 437.08 1,788.75 7,155.00 1,786.76 7,155.04 3,073.47 12,293.88 2,274.95 9,099.80 1,647.63 6,590.52 1,522.37 6,089,48 1,711.21 6,844.84 3,775.80 15,103.20 1,647.63 6,590.52 2,868.28 11,473.12 4,077.28 16,309.12 1,631.25 6,525.00 1,753.74 7,014.96 109.77 437.08 1,334.51 5,338.04 1,304.07 5,21628 3,180.02 12,720.06 170.00 682.40 109.27 437.08 125.66 602.64 2,191.30 8,765.20 3,518.28 14,073.12 4,120.99 16,483.96 1,899.66 7,598.64 2,765.09 11,060.36 3,647.18 14,688.72 2,346.70 9,388.80 3,535.71 14,142.84 109.27 437.06 1,524.99 6,099.96 3,647.18 14,688.72 806.19 3,224.76 767.80 3,071.20 31688.10 14,672.40 138.59 546.36 2,502,72 10,010.86 3,077.15 12,308.60 1,691.34 8,765.36 113286.13 453.144.52 DATE OF Regular Mo Year To Date EMP# RETIREMENT NAME Benefit Reg Benefit 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 PIREMENS RELIEF AND PENSION FUND; THAT THE SERVICES OR SUPPLIES FURNISHED, AS THE CASE MAY BE, WERE ACTUALLY RENDERED OR FURNISHED; AND THAT THE CHARGES MADE THEREFORE DO NOT EXCEED THE AMOUNT ALLOWED BY LAW OR THE CUSTOMARY CHARGE FOR SIMILAR SERVICES OR SUPPLIES SECRETARY CHAIRMAN AND PRESIDENT STATE OF ARKANSAS ) COUNTY Of WASHINGTON) SWORN TO AND SUBSCRIBED BEFORE ME THIS DAY OF NOTARY PUBLIC MY COMMISSION EXPIRES: 1/14/2014 KAFire PMei0InPenslon ListWenaiM List 20141FP 040114 WM FIREMEN'S RELIEF AND PENSION January ice`- 2014 1 1 THE FOLLOWING ARE THE OBLIGATIONS OF THE FIREMEN'S RELIEF FUND FOR THE MONTH LISTED ABOVE YOU ARE HEREBY INSTRUCTED TO ISSUE CHECKS TO THE PAYEES. IN THE AMOUNTS SHOWN, AND FOR THE PURPOSE SO STATED, DATE OF Regular Mo Year To Date EMP# RETIREMENT NAME Benefit Reg Benefit 177 4104 BACHMAN, EDDIE 74 3/86 BAIRD, JULIA 63 5/72 BOLAIN, ANN 68 7/99 BONADUCE, MICHAEL 44 9186 BOUDREY, BETTY MRS. 45 9/86 BOUDREY, HOWARD 49 7/88 BOUDREY, JACK 57 5/90 CATE, ROY ' 6 4/68 CHRISTIE, ARNOLD 188 12/05 DOSS, MARION H - 188 12/05 DOSS, MARION H plus 25 additional pay 11 2(76 FARRAR,ALONZO 192 4/06 FARRAR,DANNY 38 5/84 FRALEY, JOSEPH G. 170 5/03 FREEDLE, LARRY 170 5/03 FREEDLE, LARRY plus 25 additional pay 92 03/02 GAGE,TOMMY 34 6/79 HARRIS, JAMES E. 70 11/99 HARRIS, MARY RUTH 182 10/04 JENKINS, EILEEN 93 06102 JENKINS, JOHN 86 07/01 JOHNSON,ROSERT 64 4/95 JORDAN, CHARLIE 76 5/88 JUDY, JAN 37 3/84 KING. ARNOLD D. 54 5/89 KING, ARVIL 173 12/03 LEDBETTER, DENNIS 51 10/88 LEWIS. CHARLES 40 9/85 LOGUE, PAUL D. 202 02/08 MAHAN, MARSHALL 50 9188 MASON, LARRY 39 4/85 MC ARTHUR, RONALD A. 35 2/82 MC CHRISTIAN, DWAYNE 15 4/77 MC WHORTER, CHARLES 209 8/81 MILLER, ALICE GAYLE 73 2100 MILLER,KENNETH 73 2/00 MILLER,KENNETH plus 25 additional pay 217 2/86 MOORE. BETTY L 176 4/04 MORRIS, DIXIE E. 48 7/88 MULLENS, DENNIS W. 184 3/05 NAPIER, LONNIE 196 01/02 ONEAL, TEDDY 46 5/88 OSBURN, TROY 81 02/01 PHILUPS,LARRY 203 02108 PIERCE, JOEY 53 2/89 POAGE, LARRY 186 06/05 REAGAN, PETE 201 -02108 REED, JUNE 41 9185 SCHADER, TROY 190 04/06 SHACKELFORD, GLEN 36 5176 SPRINGSTON, CARL 90 03/02 STOUT, IMOGENE W. 165 12/02 TATE, RALPH 65 3/66 TUNE, BILLIE SUE 71 1/00 WARFORO,THOMAS 88 01/02 WOOD,RONNIE D 208 9/88 WRIGHT, Barbara 8 /3 012 01 3 K:1Fire PensionWension ListXPension List 2014WP 010114 WM 2,618.55 2,618.55 1,802.08 1,802.08 109.27 109.27 2,988.76 2,988.76 2,477.42 2,477.42 2.089.28 2,089.28 1,647.63 1,647.63 1,788.90 1,788.90 109.27 109.27 5,376.91 5,376.91 731.61 731.61 998.86 998.86 4,155.36 4,155.36 1,768.12 1,768.12 3,816.75 3.816.75 141.37 141.37 2,596.69 2,596.69 109.27 109.27 109.27 109.27 1,788.75 1.788.75 1,788.76 1,788.76 3,073.47 3,073.47 2,274.95 2,274.95 1,647.63 1.647.63 1,522.37 1,522.37 1,711.21 1,711.21 3,775.80 3,775.80 1,647.63 1,647.63 2,868.28 2,868.28 4,077.28 4,077.28 1,631.25 1,631.25 1,753.74 1,753.74 109.27 109.27 034.51 1,334.51 1,304.07 1,304.07 3,180.02 3,180.02 170.60 170.60 109.27 109.27 125.66 125.66 2,191.30 2,191.30 3,518.28 3,518.28 4,120.99 4,120.99 1,899.66 1,899.66 2,765.09 2,765.09 3,647.18 3,647.18 2,346.70 2,346.70 3,535.71 3,535.71 109.27 109.27 1,524.99 1,524.99 3,647.18 3,647.18 806.19 806.19 767.80 767.80 3,668.10 3,668.10 136.59 136.59 2.502.72 2,502.72 3,077.15 3,077.15 1,691.34 1,691.34 113,286.13 113,286.13 DATE OF Regular Mo Year To Date EMP# R€,TjiREME!fT NAME Benefit Reg Benefit E. THE UNDERSIGNED, DO SOLEMNLY SWEAR THAT THE ABOVE OBLIGATIONS ARE IST AND CORRECT; THAT NO PART THEREOF HAS BEEN PREVIOUSLY PAID; THAT I HE 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 THE--cA-G AA AT EXCEED THE AMOUNT ALLOWED BY LAW OR THE CUSTOMARY C SERVICES OR SUPPLIES � V " SECRETARY ACKNOWLEDGEMENT STATE OF ARKANSAS ) COUNTY OF WASHINGTON) ' I ,� y� 20� SWORN TO AND SUBSCRIBED BEFORE ME THIS I U DAY OFdkQVq )Y1 by 4VJN NOTARY PUBLIC MY COMMISSION EXPIRES: V 04D /I/j aOTARy PUGL%G 8/30/2013 K:TIre PensioMPension Lisl%Pension List 2014TP 010114 WM FIREMEN'S RELIEF AND PENSION Februsty 2 2 '2014 2 2 2 2 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. Regular Mb Year To Date Bemfit Reg Bene81 2,618.55 5,237.10 1,802.08 3,604.16 109.27 DATE OF 2,988.76 EMPD RETIREMENT NAME 177 4/04 BACHMAN, EDDIE 74 3186 BAIRD, JULIA 63 5172 BOLAIN, ANN 68 7/99 BONADUCE. MICHAEL 44 9/86 BOUDREY, BETTY MRS. 45 996 BOUDREY, HOWARD 49 7188 BOUDREY, JACK 57 5190 CATE. ROY 6 4/68 CHRISTIE. ARNOLD 188 12/05 DOSS. MARION H 188 12M5 DOSS, MARION H plus 25 atlANonal pay 11 2176 FARRARALONZO 192 4108 FARRAR, DANNY 38 5184 FRALEY, JOSEPH G. 170 SN3 FREEDLE. LARRY 170 5103 FREEDLE, LARRY plus 25 a04itk al pay 92 03002 GAGE,TOMMY 34 679 HARRIS, JAMES E. 70 11199 HARRIS, MARY RUTH 182 10)06 JENKINS, EILEEN 93 06102 JENKINS, JOHN 86 07101 JOHNSON,ROBERT 64 4195 JORDAN, CHARLIE 76 SIBS JUDY, JAN 37 3/84 KING, ARNOLD D. 54 599 KING, ARVIL 173 12/03 LEDBETTER. DENNIS 51 10188 LEWIS, CHARLES 40 9185 LOGUE. PAUL D. 202 02108 MAHAN, MARSHALL 50 9188 MASON, LARRY 39 4/85 MC ARTHUR, RONALD A. 35 2/02 MC CHRISTIAN. DWAYNE 15 4177 MC WHORTER, CHARLES 209 8/81 MILLER, ALICE GAYLE 73 2100 MILLERKENNETH 73 2/00 MILLERKENNETH plus 25 additional pay 217 2186 MOORE, BERYL 176 4104 MORRIS, DIXIE E. 48 7188 MULLENS, DENNIS W. 184 3105 NAPIER, LONNIE 196 01102 ONEAL, TEDDY 46 5188 OSBURN, TROY 81 02101 PHILLIPS,LARRY 203 021108 PIERCE, JOEY 53 2189 POAGE, LARRY 186 0&05 REAGAN, PETE 201 AOZ= REED, JUNE 41 9/85 SCRADER, TROY 190 04816 SHACKELFORD, GLEN 36 5176 SPRINGSTON, CARL 90 03/02 STOUT. IMOGENE W. 165 12102 TATE,RALPH 65 3/66 TUNE, BILLIE SUE 71 1100 WARFORD,THOMAS 88 01102 WOOD,RONNIE D 208 9/68 WRIGHT. Barbara Regular Mb Year To Date Bemfit Reg Bene81 2,618.55 5,237.10 1,802.08 3,604.16 109.27 218.54 2,988.76 5,977.52 2,477.42 4,954.84 2,089.28 4,178.58 1,647.63 3,295.26 1,788.90 3,577.80 109.27 218.54 5,376.91 10,753.82 731.61 1,463.22 998.88 1.997.72 4,155.36 8,310.72 1,768.12 3,536.24 3,816.75 7,633.50 141.37 282.74 2,596.69 5.193.38 109.27 218.54 109.27 218.54 1,788.75 3,577.60 1,788.76 3,577.52 3,073.47 6,146.94 2,274.95 4,549.90 1,647.63 3,28526 1,522.37 3,044.74 1,711.21 3,422.42 3,775.80 7,551.60 1,647.63 3,295.26 2.868.28 5,736.56 4,077.28 8.154.56 1,831.25 3,262.50 1,753.74 3,507.48 109.27 218.54 1,334.51 2,669.02 1,304.07 2,608.14 3,180.02 6,360.04 170.60 341.20 109.27 218.54 125.66 251.32 2,191.30 4,382.60 3,518.28 7,036.56 4,120.99 8,241.98 1,899.66 3,799.32 2,765.09 5,530.18 3,647.18 7,294.36 2,346.70 4,693.40 3,535.71 7,071.42 109.27 218.54 1,624.99 3,049.98 3,647.18 7,294.36 806.19 1,612.38 787.80 1,535.60 3,666.10 7,336.20 136.59 273.18 2,502.72 5,005.44 3,077.15 6,154.30 1,691.34 3,382.68 113.206.13 228,572.26 1/142014 K--TIm PensionVIerolon UstlPemlon List 20141FP 020114 WM DATE OF EAPO RETIREMENT NAME Regular Mo Year To Date Benefit Reg Be ffi E. THE UNDERSIGNED, DO SOLEMNLY SWEAR THAT THE ABOVE OBLIGATIONS ARE .JST 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 THE--"'-'- "-- EXCEED THE AMOUNT ALLOWED BY LAW OR THE CUSTOMARY C SERVICES OR SUPPLIES STATE OF ARKANSAS ) COUNTY OF WASHINGTON) ////�13 SWORN TO AND SUBSCRIBED BEFORE ME THISQV DAY OF rI e)ADId Ai'mov Y--� NOTAR PUBLIC MY COMMISSION EXPIRES: U—al I. l 14/2014 K1Fire PemimWensioe Ua„Penafon Ust 2014%FP 020114 WM NOTAgy 4*01 PUDUG F04EME" RELIEF AND PENSION Merob 1 3 3 "2014 3 3 3 3 THE FOLLOWING ARE THE OBLIGATIONS OF THE FIREMEMS RELIEF FUND FOR THE MONTH LISTED ABOVE YOU ARE HEREBY INSTRUCTED TO ISSUE CHECKS TO THE PAYEES, IN THE AMOUNT'S SHOWN, AND FOR THE PURPOSE SO STATED. DATE OF EMP#RETIREMENT NAME 177 4/04 BACHMAN. EDDIE 74 3186 BAIRD. JULIA 83 5172 BOLAIN, ANN 68 7199 BONADUCE, MICHAEL 44 9186 BOUDREY, BETTY MRS. 45 9136 SOUDREY, HOWARD 49 7168 BOUOREY, JACK 57 5190 CATS, ROY 6 4168 CHRISTIE, ARNOLD 188 12105 DOSS, MARION H /8a 12/05 DOSS, MARION H plus 25 additional pay 11 2176 FARRAR,ALONZO 192 4/0111 FARRAR, DANNY 38 5184 FRALEY, JOSEPH G. 170 5103 FREEDLE, LARRY 170 5/03 FREEDLE, LARRY plus 25 additional pay 92 03102 GAGE,TOMMY 34 wn HARRIS, JAMES E. 70 11199 HARRIS, MARY RUTH 182 10104 JENKINS, EILEEN 93 0602 JENKINS, JOHN Be 07101 JOHNSON,ROBERT 64 4185 JORDAN. CHARLIE 76 588 JUDY, JAN 37 3184 KING, ARNOLD D. 54 SM9 KING, ARVIL 173 12/03 LEDBETTER, DENNIS 51 10/88 LEWIS. CHARLES 40 9/85 LOGUE. PAUL D. 202 02/08 MAHAN. MARSHALL 50 9188 MASON, LARRY 39 4185 MC ARTHUR, RONALD A. 35 2182 MC CHRISTIAN, DWAYNE 15 477 MC WHORTER. CHARLES 209 8181 MILLER, ALICE GAYLE 73 2/00 MILLER,KENNETH 73 2100 MILLER,KENNETH ptus 25 additional pay 217 2/86 MOORE, BETTY 176 4109 MORRIS, OWE E. 48 7188 MULLENS, DENNIS W. 184 305 NAPIER, LONNIE 196 01102 ONEAL, TEDDY 46 5188 OSSURN, TROY 81 02101 PHILUPS,LARRY 203 02118 PIERCE, JOEY 63 2189 POAGE, LARRY 186 06105 REAGAN,PETE 201 "02108 REED, JUNE 41 9185 SCHADER, TROY 190 09108 SHACKELFORD, GLEN 36 5f76 SPRINGSTON, CARL 90 0102 STOUT, IMOGENE W. 165 12/02 TATE,RALPH 65 166 TUNE, BILLIE SUE 71 1100 WARFORD,THOMAS ' Be 01102 WOOD,RONNIE D 208 am WRIGHT, Berbera Regular Mo Year To Date Benefit Reg Benefit 2,618.56 7,855.65 1,802.08 5,406.24 109.27 327.81 2,988.76 8,966.28 2,477.42 7.432.26 2,089.28 6,267.84 1,647.63 4,942.89 1,788.90 5,366.70 10927 327.81 5,376.91 16,130.73 731.61 2,194.83 998.86 2.996.58 4,155.36 12,466.08 1,768.12 5,304,36 3.816.75 11,450.25 141.37 424.11 2,596.69 7,790.07 109.27 327.81 109.27 327.81 1,788.75 5,366.25 1,788.76 5,366.28 3,073.47 9,220.41 2,274.95 6,824.85 1,647.63 4,942.89 1,522.37 4,567.11 1,711.21 5,133.63 3,775.80 11,327.40 1,647.63 4,942.89 2,868.28 8,604.64 4,077.28 12,231.64 1,631.25 4,893.75 1,753.74 5,261.22 109.27 327.81 1,334.51 4,003.53 ' 1,304.07 3,912.21 3,180.02 9,540.06 170.60 511.80 109.27 327.81 125.68 376.98 2,191.30 6,573.90 3,518.28 10,554.84 4,120.99 12.362.97 1,899.66 5,698.98 2,765.09 8,265.27 3,647.18 10,941.54 2,346.70 7,040.10 3,535.71 10,607.13 10927 327.81 1,524.99 4,574.97 3,647.18 10,941.54 808.19 2,418.57 767.80 2,303.40 3,668.10 11,004.30 136.59 409.77 2,502.72 7,508.16 3,077.15 9,231.45 1,691.34 5,074.02 113288.13 339,858.39 1/142014 KAFha PenSIon%Pensbn USIWenslan List 2014TP 030114 WM DATE OF EMPS RETIREMENT NAME Regular We Year To Dale Benefit Reg Benefit _, THE UNDERSIGNED, DO SOLEMNLY SWEAR THAT THE ABOVE OBLIGATIONS ARE __STAND 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 CW SERVICES OR SUPPLIES SECRETARY`�'^ C. ACKNOWLEDGEMENT STATE OF ARKANSAS ) COUNTY OF WASHINGTON) �//j,// SWORN TO AND SUBSCRIBED BEFORE ME TNISh �OAY OF NOTARY PUBLIC MY COMMISSION EXPIRES: NOrggy A Gnoo 1114r2014 KAFire PenslonlPension UshPerelon Ust 2014TP 030114 WM .: DATE OF Regular Mo Year To Date 94PB RIETREMEt4T NAME Benefit Reg Benefit E, 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 FIREMENS 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 THI EXCEED THE AMOUNT ALLOWED BY LAW OR THE CUSTOMARY I SERVICES OR SUPPLIES SEC ETA ACKNOWLEDGEMENT STATE OF ARKANSAS ) COUNTY OF WASHINGTON) //")17 Iff�� r' I •^J, j� SWORN TO AND SUBSCRIBED BEFORE ME THIS O DAY OF �.� (/ _u 4 MV COMMISSION EXPIRES I 111P�1' I� ```,,`•1�550M �•�i `,t/ {'i C Z;F ,� NOTAgY Z:. ,r J'U�C 1/142014 K:1Fi1e PetrelonlPension Ust%Pension Ust 20141FP 040114 WM Firemen's Pension 2012 contributions from employer on the actuary report 4100.00 Property Taxes 4100.01 Delinquent Property Taxes 4301.00 State Insurance Turnback 465,198.12 46,763.10 229,129.75 741,090.97 "Assets less any liabilities "" Market Value calculated at year end 1 /1 512 01 4 K:\Fire Pension\Revenue & Expense Summary12013 Revenue & Expenses Report\Fire Pension Summary 123113 Fire Pension Fund Revenue Expense Summary 12131/2013 2012 2011 2010 2009 2008 2007 2006 2005 Revenues: Employee Contributions $ - $ - $ - 3 - $ - $ 1,356.43 $ 6,987.00 $ 11,863.00 $ 23,439.00 Employer Contributions $ - $ - $ - $ - $ - $ 2,712.85 $ 13,973.00 $ 25,852.00 $ 46,878.00 State Insurance Tax $ 220,080.96 $ 229,129.75 $ 131,537.45 $ 122,964.58 $ 125,710.67 $ 146,031.32 $ 150,067.00 $ 151,560.00 $ 225,492.00 Local Millage (A mills) $ 494,749.58 $ 511,961.22 $ 498,380.57 $ 508,192.06 $ 485,345.06 $ 441,696.50 $ 388,877.00 $ 370,649.00 $ 339,416.00 Interest and Dividends $ 138,740.86 $ 162,108.46 $ 171,812.69 $ 177,926.35 $ 179,204.26 $ 265,704.47 $ 292,444.00 $ 311,217.00 $ 308,578.00 Gain (Loss) on Sales $ 93,762.08 $ 109,847.78 $ 144,723.49 $ 327,952.15 $ 84,355.52 $ (728,656.78) $ 421,630.00 $ 383,393.00 $ 297,771.00 Future Supplement $ 44,215.00 $ 36,105.00 $ 29,618.00 $ 20,664.00 $ 24,192.00 $ 31,333.44 $ 38,917.00 $ 27,060.00 $ 24,480.00 Misc Revenue $ 10.70 $ 6.00 $ 33.64 $ 972.73 $ 389.74 $ 0.96 $ 1,044.00 $ 541.00 $ 176.00 Total Revenue $ 991,559.18 $ 1,049,158.21 $ 976,105.84 $ 1,158,671.89 $ 899,197.25 $ 160,179.19 $ 1,313,939.00 $ 1,282,135.00 $ 1,266,230.00 Expenditures Regular Monthly Benefits $ 1,388,308.71 $ 1,420,658.61 $ 1,432,673.42 $ 1,434,268.78 $ 1,434,487.32 $ 1,436,083.26 $ 1,430,646.00 $ 1,281,954.00 $ 1,097,427.00 Future Supplement $ 44,215.00 $ 35,960.00 $ 29,618.00 $ 20,664.00 $ 24,192.00 $ 31,333.44 $ 38,766.00 $ 26,749.00 $ 24,390.00 Drop Expense $ - $ - $ 2,973.17 $ 43,816.86 $ 125,419.00 $ 238,801.00 $ 398,082.00 Investment Manager Fees $ 22,846.00 $ 14,968.53 $ 61,654.29 $ 52,757.01 $ 53,323.12 $ 67,758.33 $ 76,454.00 $ 78,764.00 $ 84,005.00 Other Expenses: $ - $ 48.00 $ 42.00 Audit Fees $ 3,400.00 $ 3,600.00 $ 3,500.00 $ 3,500.00 $ 3,500.00 $ 3,500.00 $ 3,500.00 $ 3,300.00 $ 3,210.00 Professional Services $ - $ - $ 2,900.00 $ 2,200.00 Legal Fees $ - $ 1,025.00 Bank Fees $ 53.55 $ 16.69 $ 131.87 $ 110.90 $ 207.54 $ 228.60 $ 205.00 $ 202.00 $ 188.00 Publications and Dues $ 250.00 $ 225.00 $ 225.00 $ 300.00 $ 150.00 $ 150.00 $ 150.00 $ 100.00 Travel and Training $ - $ 2,548.88 $ 3,462.00 $ 2,389.00 Total Expenses $ 1,459,073.26 $ 1,475,428.83 $ 1,527,802.58 $ 1,514,548.69 $ 1,518,725.15 $ 1,585,419.37 $ 1,675,140.00 $ 1,636,607.00 $ 1,609,791.00 Net Income (Loss) Before Market Adj $ (467,514.08) $ (426,270.62) $ (551,696.74) $ (355,876.80) $ (619,527.90) $ (1,425,240.18) $ (361,201.00) $ (354,472.00) $ (343,561.00) Markel Adjustment $ 575,241.65 $ 481,460.38 $ 488,158.52 $ 583,853.06 $ (967,119.37) S 3,621.71 $ 280,562.00 $ (378,645.00) Net Income (Loss) $ (467,514.06) $ 148,971.03 $ (70,236.36) $ 132,281.72 $ (35,674.84) $ (2,392,359.55) If (357,579.29) $ (73,910.00) $ (722,206.00) Book Value Total Reserve Assets " $ 3,668,717.01 $ 4,107,688.38 $ 4,534,054.00 $ 5,085,750.74 $ 5,441,627.54 $ 6,061,155.44 $ 7,486,396.00 $ 7,847,597.00 $ 8,202,070.00 Market Value Total Reserve Assets $ 4,534,331.93 $ 4,541,004.55 $ 4,877,238.82 $ 5,554,763.56 $ 5,759,825.37 $ 5,823,183.74 $ 8,215,544.00 $ 8,573,123.00 $ 8,647,034.00 "Assets less any liabilities "" Market Value calculated at year end 1 /1 512 01 4 K:\Fire Pension\Revenue & Expense Summary12013 Revenue & Expenses Report\Fire Pension Summary 123113 ri re Pte.. ron Smith, Sondra From: Leach, Trish Sent: Friday, October 25, 2013 11:31 AM To: Smith, Sondra; Becker, Paul; Hertweck, Marsha Subject: FW: 2014 Ptax Estimate Letter -Fayetteville Attachments: Fayetteville Fire.pdf; Fayetteville Police.pdf Categories: Urgent From Denise Reed [mailto:sdreed @lopfi-prb.comj Sent: Friday, October 25, 2013 11:30 AM To: Leach, Trish Cc: Missy Leflar Subject: 2014 Ptax Estimate Letter -Fayetteville Good morning - The attached letter provides useful information of one of the changes in Act 979 of 2011. This act created a new source of funding for local fire and police pension funds titled Additional Allocation. The letter will inform your Local Pension Fund Board of Trustees of the estimated amount of the Additional Allocation your pension fund could receive. Please provide a copy of the letter to each trustee. You may view Act 979 of 2011 by going to the website at www.lopfi-prb.com. Select the Links tab, General Assembly, and then Acts. _ Should you have additional questions you may contact our office toll free at 866-859-1745. Sincerely, PRB Staff Osborn, Carreiro & Associates, Inc. ACTUARIES • CONSULTANTS • ANALYSTS October 25, 2013 Mr. David Clark, Executive Director Arkansas Fire and Police Pension Review Board 620 West Third Street, Suite 200 Little Rock, AR 72201 RE: Fayetteville Fire Pension Fund Estimated 2014 Premium Tax Allocation Dear Mr. Clark: One Union National Plaza, Suite 1690 124 West Capitol Avenue Little Rock, Arkansas 72201 (501)376-8043 fax (501)376-7847 We have estimated the base benefit calculations needed for the Premium Tax Allocation formula created by Act 979 of 2011 and PRB Board Rule 12. This letter will provide these estimates for the above referenced local fire or police pension fund. Actual Benefits Valued 1/1/2013 $1,408,185 Base Benefits Valued 1/1/2013 $804,148 Actuarial Cost of Base Benefits $608,633 Estimated Premium Tax 2014 30% of Actuarial Cost $182,590 Estimated Additional Allocation 2014, if eligible 10% of Actuarial Cost $60,863 2013 Employer Contributions for Additional Allocation 2014 Eligibility 80% of Actuarial Cost $486,906 Actual 2012 Reported Employer Contribution other than premium tax $511,961 Shortfall based on 2012 contributions $0 Expected Eligibility based on 2012 contributions Yes The premium tax formula allocates monies based on an Actuarial Cost derived from a fund's Base Benefits (that is, 50% of Final Salary, minimum $350 per month for paid members, and $100 per month for volunteer members). Each fund receives 30% of this calculated Actuarial Cost as Premium Tax. Each fund is also eligible for an Additional Allocation equal to 10% of this Actuarial Cost, provided that the Employer Contributions other than Premium Tax made by the location are equal to at least 80% of the Actuarial Cost. We have included last year's contributions and the estimated shortfall to become eligible for the Additional Allocation if Employer Contributions were to remain level in 2013. As a reminder, these numbers constitute estimates, and they MAY vary materially from the figures shown here. In particular, an additional employer contribution equal to the shortfall estimate shown will not guarantee Additional Allocation eligibility in 2014. Please note that in 2013 the Additional Allocation was proportionally reduced by approximately 37% due to a shortfall in Premium Tax revenues. Any similar shortfall would also reduce Additional Allocation amounts in 2014. Page 1 of 2 LOCAL PENSION FUND REPORT 2013 In keeping with statutory requirements, I am presenting this report for 2013 on the local Police and Fire Retirement and Relief Funds for the City of Fayetteville. Both of these plans were closed, by law, in 1983 and there are no longer any active working members remaining. There are currently 45 police and 54 fire retirees and beneficiaries in the system. At December 2013 projected expenses from the fire pension fund were approximately $1.4 million as compared to fund revenues of $950,000. Projected police pension fund expenses were approximately $1.6 million as compared to fund revenues in excess of $1.1 million. This is before adjusting investments to market value. However, on a cash flow basis, contributions are not covering expenses. Actuarial evaluations are the responsibility of the State of Arkansas Fire and Police Pension Review Board. The last evaluations completed were as of July, 2013 for the year ending December 31, 2012. Based on those evaluations the unfunded pension obligations of the Police and Fire Funds were $8.1 million and $10.5 million respectively and have grown considerably from prior years. The unfunded actuarially accrued liabilities for these funds were approximately $12.9 million for police and $15 million for fire. In the annual reports issued by the Arkansas Pension Review Board neither the fire nor police pension fund were found to be actuarially sound pursuant to established financial tests. Again, this actuarial valuation is for the 2012 fiscal year not 2013. On October 18, 2010 representatives of the Pension Review Board came to Fayetteville to present a special report on the Fire Pension Fund. Both Fire Pension Board members and City Council members attended the meeting when this report was presented .During that presentation, the PRB Board Actuary indicated that the fund ran a 90% risk of ruin within the next 5 to 10 years and conditions have not improved since then. The Fire Pension Board has again received correspondence in 2013 advising the Board of the funds risky financial condition. Page 2 of 2 In 2012 operating conditions of the Fire Pension Fund have been relatively the same so no improvement has been made. However the asset value of the fund has fallen to under $5,000,000 which makes it subject to further investment restrictions. These restrictions no longer allow investments in individual securities. Investments will be limited to cash, cash equivalents, government bonds and no load mutual funds. This means overall returns in the future are likely to be less than previously experienced which could bring about depletion of the fund even earlier unless the Pension Board does something. The Fire Pension Board has been aware of the unstable condition of the fund and has been discussing the situation and possible options since 2009 but has not decided on a plan of action supported by the majority of the Board. The primary option which has been discussed is the possible reduction of current benefits. The City Clerk and I have each introduced motions and had numerous votes to reduce benefits but all votes to do so up to this point in time have failed. The Pension Board has also been advised that there is no specific enabling legislation to reduce benefits and legal issues might prevent that option. All other options presented would require substantial financial contributions by the City. However, the City Attorney has advised the Pension Board that the City has no direct obligation to fund the pension plan; other than a .4 mill dedicated levy for each, plus state insurance turn back. The PRB has continued to classify the Fire Pension Fund as "projected insolvent". The Police Pension Fund is also considered actuarially unsound but not in immediate danger of becoming insolvent. The Police Pension Board is also aware of the Police Pension Fund status and has been considering options that would guarantee long term solvency. I will continue to monitor these pension funds in the future and keep you apprised of any new developments. City of Fayetteville Firemen's Pension and Relief Fund Board of Trustees 2014 Meeting Calendar Quarterly Meetings Last Thursday of the First Month of Each Quarter Meetings will be in January, April, July, and October 3:00 PM - City Administration Room 326 At the November 18, 2010 Firemen's Pension Meeting the Board voted to change their meetings to quarterly effective immediately. January 23, 2014 April 24, 2014 July 31, 2014 October 30, 2014 0011 GARRISON F I N A N C I A L City of Fayetteville Firemen's Pension & Relief Fund Charles Schwab #7851-1206 Quarter Ending December 31, 2013 PORTFOLIO SUMMARY City of Fayetteville Firemen's Pension & Relief Fund Charles Schwab #7851-1206 December 31, 2013 ■ Cash & Equivalents 295,725.97 ■ Account Fixed Income 1,298,964.46 Account Equities 2,933,760.94 PORTFOLIO APPRAISAL 1 City of Fayetteville Firemen's Pension & Relief Fund Charles Schwab #7851-1206 December 31, 2013 Unit Total Market Pct. Unit Annual Quantity Security Cost Cost Price Value Assets Income Income Yield CASH AND EQUIVALENTS Schwab Advisor Cash Res - 295,725.97 295,725.97 6.5 0.010 29.57 0.0 Premier 295,725.97 295,725.97 6.5 29.57 0.0 TREASURY NOTE 400,000 USTreasuryNote 102.22 408,875.00 110.87 443,500.00 9.8 4.000 16,000.00 1.6 4.000% Due 08-15-18 Accrued Interest 6,000.00 0.1 408,875.00 449,500.00 9.9 16,000.00 1.6 CORPORATEBONDS 50,000 IBM Corp. 100.01 50,004.00 125.50 62,748.35 1.4 7.000 3,500.00 4.3 7.000% Due 10-30-25 Accrued Interest 583.33 0.0 50,004.00 63,331.68 1.4 3,500.00 4.3 COMMON STOCK 1,710 AT&T, Inc. 24.39 41,702.95 35.16 60,123.60 1.3 1.840 3,146.40 5.2 1,575 AbbVic, Inc. 24.41 38,451.37 52.81 83,175.75 1.8 1.600 2,520.00 3.0 1,575 Abbott Laboratories 22.40 35,277.06 38.33 60,369.75 1.3 0.880 1,386.00 2.3 2,000 American Electric 33.69 67,374.79 46.74 93,480.00 2.1 2.000 4,000.00 4.3 Power 2,300 BCE, Inc. CI F 24.40 56,110.11 43.29 99,567.00 2.2 2.330 5,359.00 5.4 700 Chevron Corporation 73.07 51,150.83 124.91 87,437.00 1.9 4.000 2,800.00 3.2 3,000 Cisco Systems, Inc. 17.43 52,302.90 22.43 67,290.00 1.5 0.680 2,040.00 3.0 2,200 Coca-Cola Company 26.40 58,074.28 41.31 90,882.00 2.0 1.120 2,464.00 2.7 1,200 ConocoPhillips 44.94 53,930.85 70.65 84,780.00 1.9 2.760 3,312.00 3.9 833 Duke Energy Corp. 57.48 47,880.86 69.01 57,485.30 1.3 3.120 2,598.96 4.5 1,000 Emerson Electric 38.01 38,012.30 70.18 70,180.00 1.5 1.720 1,720.00 2.5 4,000 General Electric Co. 15.96 63,844.01 28.03 112,120.00 2.5 0.880 3,520.00 3.1 900 Genuine Parts Co. 36.65 32,986.53 83.19 74,871.00 1.7 2.150 1,935.00 2.6 2,000 GlaxoSmithKline PIc 38.47 76,936.20 53.39 106,780.00 2.4 2.460 4,920.00 4.6 ADR 450 IBM Corporation 122.43 55,091.76 187.57 84,406.50 1.9 3.800 1,710.00 2.0 3,725 Intel Corp. 17.61 65,581.48 25.95 96,682.37 2.1 0.900 3,352.50 3.5 1,115 Johnson & Johnson 60.77 67,758.33 91.59 102,122.85 2.3 2.640 2,943.60 2.9 850 Kimberly Clark Corp. 60.71 51,599.58 104.46 88,791.00 2.0 3.240 2,754.00 3.1 2,700 Microsoft Corp. 26.30 71,001.40 37.41 101,007.00 2.2 1.120 3,024.00 3.0 4,120 Pfizer, Inc. 16.52 68,077.88 30.63 126,195.60 2.8 1.040 4,284.80 3.4 1,000 Procter & Gamble Co. 50.46 50,458.56 81.41 81,410.00 1.8 2.410 2,410.00 3.0 1,400 Wal-Mart Stores, Inc. 50.36 70,497.97 78.69 110,166.00 2.4 1.880 2,632.00 2.4 1,214,102.00 1,939,322.72 42.8 64,832.26 3.3 MUTUALFUNDS 1,296.008 Columbia Acorn InPI Z 38.58 50,000.00 46.68 60,497.65 1.3 1.180 1,529.29 2.5 3,984.064 Fed Interco Corp Bond 10.04 40,000.00 9.48 37,768.93 0.8 0.430 1,713.15 4.5 3,600.360 PIMCO Total Retum CI 11.11 40,000.00 10.69 38,487.85 0.8 0.310 1,116.11 2.9 D 4,683.407 SteelPath MLP Income 10.68 50,000.00 11.07 51,845.32 1.1 0.780 3,653.06 7.0 1,833.272 Vanguard Developed 27.27 50,000.00 33.27 60,992.96 1.3 0.900 1,649.94 2.7 Markets 1,443.113 Vanguard Emerging 34.65 50,000.00 32.65 47,117.64 1.0 0.900 1,298.80 2.8 Markets 2,615.123 Vanguard Hi -Div Yld 19.12 50,000.00 24.69 64,567.39 1.4 0.670 1,752.13 2.7 1 PORTFOLIO APPRAISAL City of Fayetteville Firemen's Pension & Relief Fund Charles Schwab #7851-1206 December 31, 2013 You should carefully compare this statement to the statement you receive from your custodian and notify us immediately of any discrepancies. 2 Unit Total Market Pct. Unit Annual Quantity Security Cost Cost Price Value Assets Income Income Yield 3,412.116 Vanguard Mid -Cap 29.31 100,000.00 38.83 132,492.46 2.9 0.230 784.79 0.6 Growth 3,410.952 Vanguard Mid -Cap 29.32 100,000.00 41.30 140,872.32 3.1 0.630 2,148.90 1.5 Value 3,290.816 Vanguard Small -Cap 30.39 100,000.00 42.98 141,439.27 3.1 0.280 921.43 0.7 Growth 3,324.742 Vanguard Small -Cap 30.08 100,000.00 41.82 139,040.71 3.1 0.770 2,560.05 1.8 Value 730,000.00 915,122.49 20.2 19,127.65 2.1 UNIT TRUSTS 2,500 Sector Utility Select Shs 31.96 79,899.25 37.97 94,925.00 2.1 1.470 3,675.00 3.9 1,400 iShares Barclays 7-10 104.43 146,198.70 99.24 138,936.00 3.1 1.760 2,464.00 1.8 yr Treasury 850 iShares D] Select Div 47.39 40,285.75 71.35 60,647.50 1.3 2.190 1,861.50 3.1 5,000 iShares IBOXX Inv 106.90 534,506.93 114.19 570,940.00 12.6 4.380 21,900.00 3.8 Grade Corp Bond 800,890.63 865,448.50 19.1 29,900.50 3.5 TOTAL PORTFOLIO 3,499,597.60 4,528,451.37 100.0 133,389.98 2.7 You should carefully compare this statement to the statement you receive from your custodian and notify us immediately of any discrepancies. 2 Garrison Financial PURCHASE AND SALE City of Fayetteville Firemen's Pension & Relief Fund Charles Schwab #7851-1206 From 01-01-13 To 12-31-13 Trade Settle Unit Date Date Quantity Security Price Amount SALES 05-15-13 05-20-13 1,650 Archer Daniels Midland 34.52 56,965.92 05-15-13 05-20-13 100 Chevron Corporation 122.69 12,268.85 05-15-13 05-20-13 45 Chevron Corporation 122.69 5,521.21 05-15-13 05-20-13 80 Chevron Corporation 122.69 9,815.48 01-02-13 01-02-13 351 Gen Elec Cap 6.625% 06-28-32 25.00 8,775.00 01-02-13 01-02-13 5,000 Gen Electric Cap 6.1% 11-15-32 25.00 125,000.00 05-15-13 05-20-13 300 Kimberly Clark Corp. 104.61 31,384.15 06-13-13 06-18-13 1,675 Oracle Corporation 34.13 57,161.16 05-15-13 05-20-13 300 Procter & Gamble Co. 80.75 24,224.05 05-15-13 05-20-13 100 Procter & Gamble Co. 80.75 8,074.68 06-13-13 06-18-13 1,000 Sector Utility Select Shs 37.72 37,722.39 06-13-13 06-18-13 1,000 iShares DJ Select Div 64.83 64,831.92 441,744.81 Garrison Financial REALIZED GAINS AND LOSSES City of Fayetteville Firemen's Pension & Relief Fund Charles Schwab 97851-1206 From 01-01-13 Through 12-3143 Open Date Close Date Quantity Security Cost Basis Proceeds Gain Or Loss Short Term Long Term 12-31-05 01-02-13 5,000 Gen Electric Cap 6.1% 124,888.90 125,000.00 111.10 11-15-32 12-31-05 01-02-13 351 Gen Elec Cap 6.625% 8,783.51 8,775.00 -8.51 06-28-32 12-31-05 05-1S-13 1,650 Archer Daniels Midland 52,809.08 56,965.92 4,156.84 12-31-05 05-15-13 100 Chevron Corporation 7,307.26 12,268.85 4,961.59 12-31-05 05-15-13 45 Chevron Corporation 3,288.27 5,521.21 2,232.94 12-31-05 05-15-13 80 Chevron Corporation 5,845.81 9,815.48 3,969.67 12-31-05 05-15-13 300 Kimberly Clark Corp. 18,211.62 31,384.15 13,172.53 12-31-05 05-15-13 300 Procter & Gamble Co. 15,137.57 24,224.05 9,086.48 12-31-05 05-15-13 100 Procter & Gamble Co. 5,045.86 8,074.68 3,028.82 12-31-05 06-13-13 1,000 iShares DJ Select Div 47,395.00 64,831.92 17,436.92 12-31-05 06-13-13 1,675 Oracle Corporation 26,297.33 57,161.16 30,863.83 12-31-05 06-13-13 1,000 Sector Utility Select Shs 31,959.70 37,722.39 5,762.69 TOTAL GAINS 0.00 94,783.42 TOTAL LOSSES 0.00 -8.51 346,969.90 441,744.81 0.00 94,774.91 TOTAL REALIZED GAIN/LOSS 94,774.91 CAPITAL GAIN DISTRIBUTIONS 12-04-13 Fed Interm Corp Bond 2,146.96 12-11-13 Columbia Acorn Intl Z 2,496.29 12-11-13 PIMCO Total Return Cl D 41.26 12-11-13 PIMCO Total Return Cl D 215.88 TOTAL DISTRIBUTIONS 4,900.39 41.26 4,859.13 41.26 99,634.04 TOTAL GAIN/LOSS 99,675.30 Garrison Financial PERFORMANCE SUMMARY GROSS OF FEES City of Fayetteville Firemen's Pension & Relief Fund Charles Schwab #7851-1206 December 31, 2013 PORTFOLIO COMPOSITION Market Pct. Value Assets Yield Cash & Equivalents 295,725.97 6.5 Account Fixed 1,298,964.46 28.7 Income Account Equities 2,933,760.94 64.8 Account 0.00 0.0 Commodities Total 4,528,451.37 100.0 Account 40% Fixed Income/60% Equity Blended Index Account Fixed Income Barclays Capital Intermed Govt/Credit Account Equities S&P 500 CHANGE IN PORTFOLIO 0.0 Portfolio Value on 12-31-12 4,533,056.42 2.8 Accrued Interest 6,583.33 3.0 Net Additions/Withdrawals -622,627.09 - Realized Gains 38,981.29 4.91 Unrealized Gains 432,935.46 10.90 Income Received 139,521.95 18.10 Change in Accrued Interest 0.00 -2.64 Portfolio Value on 12-31-13 4,521,868.03 -0.02 Accrued Interest 6,583.33 2.7 7.74 4,528,451.37 TIME WEIGHTED RETURN All "Account" returns refer to your portfolio. Benchmark indexes are also listed for reference. All returns are reported as percentages. This report is calculated using industry -standard accounting and performance calculation methodologies and is generated by our Axys portfolio accounting software. Calculations are a time -weighted total return series based on monthly valuations, including all cash and equivalents. All calculations are done based on trade date, employing the accrual method of accounting and include cash, interest, dividends and realized and unrealized gains and losses. Performance is adjusted to accurately reflect portfolio deposits and withdrawals. Results are presented after transaction costs but before management fees. Inception -to -date returns are annualized numbers, except for accounts under management less than one year. Unsupervised assets are excluded in performance calculation. At any given point in time an investment may be worth more or less than the original purchase price. Annualized Quarter Year Last 12 Inception To Date To Date Months To Date 4.91 14.32 14.32 10.90 6.21 18.10 18.10 13.45 0.08 -2.64 -2.64 1.05 -0.02 -0.86 -0.86 1.01 7.74 25.45 25.45 17.43 10.51 32.39 32.39 22.28 All "Account" returns refer to your portfolio. Benchmark indexes are also listed for reference. All returns are reported as percentages. This report is calculated using industry -standard accounting and performance calculation methodologies and is generated by our Axys portfolio accounting software. Calculations are a time -weighted total return series based on monthly valuations, including all cash and equivalents. All calculations are done based on trade date, employing the accrual method of accounting and include cash, interest, dividends and realized and unrealized gains and losses. Performance is adjusted to accurately reflect portfolio deposits and withdrawals. Results are presented after transaction costs but before management fees. Inception -to -date returns are annualized numbers, except for accounts under management less than one year. Unsupervised assets are excluded in performance calculation. At any given point in time an investment may be worth more or less than the original purchase price. GARRISON F I N A N C I A L January 8, 2014 City of Fayetteville Firemen's Pension & Relief Fund Charles Schwab #7851-1206 113 West Mountain Street Fayetteville, AR 72701-6069 STATEMENT OF MANAGEMENT FEES For The Period October 1 through Dectember 31, 2013 Portfolio Value as of 09-30-13 Portfolio Value as of 10-31-13 Portfolio Value as of 11-30-13 Portfolio Value as of 12-31-13 Average of 4 Months 4,508,440 @ 0.5000% per annum Quarterly Management Fee TOTAL DUE AND PAYABLE 4,479,724 4,525,608 4,499,977 4,528,451 4,508,440 5,636 5,636 5,636 This statement is for informational purposes only. As you requested, the fee will be automatically deducted from your account. Please be advised that it is the responsibility of the client to verify the accuracy of each fee calculation. The custodian will not determine whether the fee is properly calculated. T 2 4 11/15/23 199-17+ + 17 99-17/99-17+ 2.805 /2.803 At 10:16 0P 98-31 Fri 99-19+ Lo 98-31 Prey 99-00+ BGN Hid Yield Maturity 2.798 T......... ....... . 1 ,...... ......... ........ ... .... T High on 12/2/ 31/13 3.029029 Average 2.394 1 Low on 05/02/13 1.626 ............................. .............. ...... ..;. ..........................A-- .... I ........................... .-- ---I.................... - -F2.600 - -F2.400 EiARZtIf - .F 1.800 :777777777: —1.600 2014 Australia 61 2 9777 8600 Brazil 5511 3048 4500 Europe 44 20 7330 7500 Germany 49 69 9204 1210 Hong Kong 852 2977 6000 Japan 81 3 3201 8900 Singapore 65 6212 1000 U.S. 1 212 318 2000 Copyright 2014 Bloomberg Finance L.P. SN 546930 EST GMT -5:00 G447-2187-3 23 -Jan -2014 10=16:50 GARRISON ASSET MANAGEMENT Scanado Name Firemen's Pension & Relief Fund Base Case 605 W. Dickson St. Suite 201 Fayetteville, AR 72701 479-587-1045 Telephone 479-587-1257 Facsimile 888-442-7637 Toll Free www GarrisonFlnancial.com Printed: Thursday, January 23, 2014 at 9:07:14 AM -File Nam XIclientsTayeftetilive Firm Pension F d11F' Retirement Mtl 11-23-2014x1 1D' I re Pension & Relief Fund Base Case e 1 - Years 12 1 4,440,757.85 1.00 4,440,757.85 1.0000 4,440,757.85 Iterations 1000 2 - - - 1.0000 - $ Hurdle - 3 - - - 1.0000 - Cost Inflation - 4 - - - 1.0000 - Wage Inflation - 5 - - - 1.0000 - Current Age 1 6 - - - 1.0000 - .f "Eiitl�Yiti 7 - - - 1.0000 - 100 a - - - 1.0000 - 100 e 1 - 1 100 e2 - 1 100 e 3 - 1 100 e4 - 1 100 e 5 - 1 100 e 6 1 100 IG"UN'alur t� :. gStii'dUn("�? Bogle"Yr"P. 0.3000 - .f "Eiitl�Yiti Savings - 1 100 Savings - 1 100 Savings - 1 100 Savings - 1 100 Savings - 1 100 Bonds 0.0300 0.0380 0.4000 <--Enter additional asset <... Enter additional asset Withdrawals -Calendar 2013 601,000 1 100 0.3000 420,700 Expense 2 - 1 100 0.3000 - Expense 3 - 1 100 0.3000 - Expense 4 - 1 100 0.3000 - Expense 5 - 1 100 0.3000 - Ex erase 6 1 100 0.3000 Bonds 0.0300 0.0380 0.4000 <--Enter additional asset <... Enter additional asset R I 8 I C I D I E F 6 I H I J I K L I M , Garrison Asset Management, LLC 2 Firemen's Pension & Relief Fund 3 Portfolio Estimates Output 4 01/23/14 5 e 7 B B 10 Year# Year Age Income Expenses Bog. Port. Earnings Deposits Withdrawals WD Pct. End Port. Avg. Res. Success % ,I 1 2014 1 - 601,000.00 4,440,757.85 230,385.47 - 601,000.00 0.1353 4,070,143.32 4,091,313.00 1.0000 12 2 2015 2 - 601,000.00 4,070,143.32 208,148.60 - 601,000.00 0.1477 3,677,291.92 3,696,607.39 1.0000 2 3 2016 3 - 601,000.00 3,677,291.92 184,577.52 - 601,000.00 0.1634 3,260,869.44 3,281,054.51 1.0000 14 4 2017 4 - 601,000.00 3,260,869.44 159,592.17 - 601,000.00 0.1843 2,819,461.60 2,836,272.83 1.0000 ,s 5 2018 5 - 601,000.00 2,819,461.60 133,107.70 - 601,000.00 0.2132 2,351,569.30 2,366,222.33 1.0000 ,0 6 2019 6 - 601,000.00 2,351,569.30 105,034.16 - 601,000.00 0.2556 1,855,603.46 1,883,431.30 0.9910 ,7 7 2020 7 - 601,000.00 1,855,603.46 75,276.21 - 601,000.00 0.3239 1,329,879.66 1,477,070.50 0.9240 Is 8 2021 8 - 601,000.00 1,329,879.66 43,732.78 - 601,000.00 0.4519 772,612.44 1,191,888.32 0.7600 10 9 2022 9 - 601,000.00 772,612.44 10,296.75 - 601,000.00 0.7779 181,909.19 1,065,307.98 0.5170 20 10 2023 10 - 601,000.00 181,909.19 (25,145.45) - 601,000.00 3.3038 (444,236.26) 1,049,222.77 0.3120 11 11 2024 11 - 601,000.00 (444,236.26) (62,714.18) - 601,000.00 (1.3529) (1,107,950.43) 1,042,490.64 0.1810 22 12 2025 12 601,000.00 1,107,950.43 102,537.03 - 601,000.00 0.5424 1,811,487.46) 1,050,677.34 0.1040 23 Total 7,212,000.00 959,754.69 7,212,000.00 5,000,000.00 4,000,000.00 3,000,000.00 2,000,000.00 d 1,000,000.00 (1,000,000.00) (2,000,000.00) (3,000,000.00) Monte Carlo Output 2014 2015 2016 2017 2015 2019 2020 2021 2022 2023 2024 2025 Year End Port. iAvg. Res. —dr—Success 1.2000 I 1.0000 1 ffliffIT11110 0.4000 0.2000 4.0000 3.0000 2.0000 Y 1.0000 d a (1.0000) (2.0000) Withdrawal Percent Year —Withdrawal Percent information explains certain cells on the "Investment Estimates" Page. The "Years" cell tells the program how many years to run the scenario. The "Iterations" cell tells the model how many random scenarios to run in each of the future years. The "$ Hurdle" cell is the minimum value below which each random scenario is deemed "not successful." In the case of a zero amount, each scenario would not be successful if you ran out of money and the ending portfolio was zero or below. The "Cost Inflation" cell is the amount by which your annual cost of living is expected to increase in each future year, expressed as a decimal. Le., .03 = 3%. The "Wage Inflation" cell is the annual amount by which your wages and income (Social Security, for example) is expected to increase in each future year, expressed as a decimal. Le., .03 = 3%. The check box in Column K determines if your expected cash flows (income, contributions, & withdrawals) occur at the beginning or end of each future year. Generally is it more conservative to assume cash flows occur at the beginning of each year, particularly in the case of withdrawals. The check boxes of Normal, Log Normal, and Exponential, allow us to change the statistcal distribution from which future expected returns are sampled from. There is a debate within the academic community as to whether or not market returns are distributed normally, log -normally, or exponentially. The expected outcomes do not change much under any type of distribution in most cases. If you're interested in exploring this topic in more detail, please contact us. It's pretty heady stuff, but we'll be glad to walk you through it. The following information explains certain information on the "Portfolio Estimates Output" Page. The "Income" column shows an estimate of future income, other than from the portfolio, inflated at the Wage Inflation rate. The "Expenses" column shows an estimate of future expenses, offset by Income, that will be withdrawn from the portfolio (not other sources), inflated at the Cost Inflation rate. The "Beginning Port." columns shows an estimate of the beginning portfolio value for each year. The "Earnings" column shows an estimate of portfolio earnings using the Weighted Average Return (Column H, Line 37) from the Investment Estimates page. The "Deposits" column shows an estimate of future deposits into the portfolio in real dollars (not inflated). The "Withdrawals" column shows an estimate of future withdrawals from the portfolio, inflated at the Cost Inflation rate, including any one-time portfolio withdrawals which are shown in the "Deposits" as a negative amount. The "WD Pct." column shows an estimate of the percentage of the beginning portfolio value that is withdrawn each year expressed as a decimal, i.e., .03 = 3%. The "End Port." column shows an estimate of the ending portfolio value, taking into account all model assumptions, using the Weighted Average Return (Column H, Line 37) from the Investment Estimates page. It is a straight-line return at the weighted average rate and does not include any type of Monte Carlo sampling or inputs. The "Avg. Res." column is a Monte Carlo estimate of the Average Residual value of the simulated portfolios that exceed the "$ Hurdle" explained above. In other words, of the portfolios that are successful (greater than the $ Hurdle), what is their average ending balance in each year. The "Success %" column is an estimate of the probability of sucess (the percentage of ending portfolios that are greater than the $ Hurdle) in each future year. It is calculated by dividing the number of successful portfolios (the number of portfolios with ending values greater than the $ Hurdle) in each year by the total number of portfolios (Iterations) in each year. This value is stated as a decimal, i.e., .95 = 95% probablity. So for example, for each year this column estimates the probability of the ending value of your portfolio being greater than the $ Hurdle. In the case of a $ Hurdle of $0, this column estimates the probability of not running out of money, or completely depleting your portfolio. The spreadsheets and data contained in the attached presentation are designed to be used as a tool to assist you in your retirement plannin< decisions. These spreadsheets and data may not provide all the information you need to make a fully informed retirement decision and may not make all of the complex calculations required to reach a correct retirement decision as it relates to your particular situation. Market behavior and performance is highly unpredictable and can vary significantly over time, from time to time, and within and among asset classes. The performance you receive and the success of and variability over your own planning horizon is likely to be different from the information shown in this presentation and these differences could be substantial. Material differences are likely to occur due to such factors as variability in investment performance, your savings and spending patterns, the impact of inflation and other factors known and unknown which are beyond our control. If you received this spreadsheet in electronic form it may have been password -protected to ensure the integrity of the data and calculations. No warranties, either expressed or implied, are made as to the accuracy of the information and projections provided in this presentation.