Loading...
HomeMy WebLinkAbout2007-07-19 - Agendas - Final Police Pension and Relief Fund Board of Trustees Agenda July 19, 2007 A meeting of the Fayetteville Policemen's Pension and Relief Fund Board will be held on July 19, 2007 at 1 :30 PM in Room 326 of the City Administration Building located at 113 West Mountain Street, Fayetteville, Arkansas. 1. Roll Call 2. Approval of the Minutes • Approval of the April 26, 2007 Meeting Minutes 3. Approval of the Pension List • June, July and August 2007 Pension Lists 4. Old Business • 2007 Election Results — Eldon Roberts, Jerry Friend and Tim Helder re-elected. 5. New Business • Election of Board Secretary • Mailing of Minutes — Jerry Friend • 2007 Legislative Session Summary • Act 611 6. Longer Investments • Monthly Investment Report • Quarterly Report • Longer View • Equity Overage 1 7. Informational • Supplemental Benefit Fayetteville Policeman's Pension and Relief Fund Meeting Date July 19, 2007 Adjourn Time 2:15 PM Attendees: Mayor Coody, Jerry Friend, Tim Helder, Frank Johnson, Eldon Roberts, Sondra Smith City Attorney Kit Williams, Deputy City Clerk Amber Wood, Trish Leach and Wendy Moore from Accounting. Elaine Longer and Kim Cooper from Longer Investments Subject: Roll Subject: Pension List for June, July & Au ust 2007 Motion To: Motion To: Approve Motion By: Motion By: Jerry Friend Seconded: Seconded: Eldon Roberts Mayor Coody Present Mayor Coody Yes Jerry Friend Present Jerry Friend Yes Tim Helder Present Tim Helder Absent during the vote Frank Johnson Present Frank Johnson Absent during the vote Eldon Roberts Present Eldon Roberts Yes Melvin Stanley Absent Melvin Stanley Absent Sondra Smith Present Sondra Smith Yes Subject: Approval of the Minutes Subject: Elect a Secretary for the Board Motion To: Approve Motion To: Elect Eldon Roberts Motion By: Eldon Roberts Motion By: Jerry Friend Seconded: Jerry Friend Seconded: Tim Helder Mayor Coody Yes Mayor Coody Yes Jerry Friend Yes Jerry Friend Yes Tim Helder Absent during the vote Tim Helder Yes Frank Johnson Absent during the vote Frank Johnson Yes Eldon Roberts Yes Eldon Roberts Yes Melvin Stanley Absent Melvin Stanley Absent Sondra Smith Yes Sondra Smith Yes Fayetteville Policeman's Pension and Relief Fund Meeting Date July 19, 2007 Page 2 of 2 Adjourn Time 2:15 PM Attendees: Mayor Coody, Jerry Friend, Tim Helder, Frank Johnson, Eldon Roberts, Sondra Smith City Attorney Kit Williams, Deputy City Clerk Amber Wood, Trish Leach and Wendy Moore from Accounting. Elaine Longer and Kim Cooper from Longer Investments Subject: Mailing of Minutes Subject: Change Page 5 of the Investment Policy - B.3. Equities Continue mailing minutes for 2007. Allow Longer Investments to go plus Add $100 to the policemen's Pension or minus 10016 of the current Equity Motion To: Budget for 2008 fW requested minutes. Motion To: range of 350/6 to 500/6. Add minutes to the,City's web site in 2008. Motion By: Jerry Friend Motion By: Eldon Roberts Seconded: Eldon Roberts Seconded: Jerry Friend Mayor Coody Yes Mayor Coody Yes Jerry Friend Yes Jerry Friend Yes Tim Helder Yes Tim Helder Yes Frank Johnson Yes Frank Johnson Yes Eldon Roberts Yes Eldon Roberts Yes Melvin Stanley Absent Melvin Stanley Absent Sondra Smith Yes Sondra Smith Yes Subject: June, 2007 Equity Overage Subject: Motion To: Approve Motion To: Motion By: Eldon Roberts Motion By: Seconded: Tim Helder Seconded: Mayor Coody Yes Mayor Coody Jerry Friend Yes Jerry Friend Tim Helder Yes Tim Helder Frank Johnson Yes Frank Johnson Eldon Roberts Yes Eldon Roberts Melvin Stanley Absent Melvin Stanley Sondra Smith Yes Sondra Smith Policemen's Pension &Relief Fund Board of Trustees Meeting Minutes April 26, 2007 Page 1 of 10 Policemen's Pension and Relief Fund Board of Trustees Meeting Minutes April 26, 2007 A meeting of the Fayetteville Policemen's Pension and Relief Fund Board was held on April 26, 2007 at 9:00 AM in Room 326 of the City Administration Building located at 113 West Mountain Street, Fayetteville, Arkansas. Mayor Coody called the meeting to order. Present: Mayor Coody, Frank Johnson, Jerry Friend, M vin Sta Tim Helder, Eldon Roberts, Sondra Smith, Kit Williams, Amber Woo," rsb Leac Kim Cooper of Longer Investments. ' P W9S T Approval of the Minutes: IDM Approval of the January 18, 2007 MeetinLy Minutes , Tim Helder moved to approve the min tes '� 'elvin Stanley Vc,,o'nded the motion. Upon roll call the motion carried 7-0. „zI . " Al Nxk Approval of the Pens><oji' List: rK Rev>< 106 \ , , Approval of the ed �ebrua6C2007 Pension art r, 0% Mayor Cood "-.Rt : ` e, e any �apges? , F Sondr� ith: The re N pens' for February 2007 was removing one pensioner that Vol " deceased adding his w' e. There ere no changes in the total but the pension list that you approved in ,U uary had the nsioner on it and we needed to take him off and do the revised list. The dece"N fi ensioner ras Warren Dennis. Mayor Coody: Is y change? Sondra Smith: That's the only change to the revised list. Melvin Stanley moved to approve the Revised Pension List. Jerry Friend seconded the motion. Upon roll call the motion carried 7-0. Policemen's Pension&Relief Fund Board of Trustees Meeting Minutes April 26,2007 Page 2 of 10 Approval of the March, April and May 2007 Pension List Mayor Coody: Any changes? Sondra Smith: No, there are no changes to the March, April and May as of now. We haven't done the May yet so something could happen in between now and May. Mayor Coody: Okay, so we need to approve this as well. Sondra Smith: Yes sir. Eldon Roberts moved to approve the Pension Lists Tung Heder seconded the motion. Upon roll call the motion carried 7-0. > � Old Business: » 3% COLA Discussion — Percent versus equal distrib Sondra Smith: If you remember one o, the pensionereeting and wanted to know the possibility of on your 3% COLA cost ® doing a perce taE�ke and everyone getting a 3% of their gross amount they would take the to al os ount of alhpensioners times 3% and divide that evenly among all the pensions So IN xSd of on ensioner getting $300 and someone else getting $100 everyone would et e same amount. You tabled that at the last �` meeting and wanted to b ' �-_ � ward at this seting because there weren't very many people at the last meeting to c ss tha e. Mayor Coody: Who want o br"'A" up? Eldon Ro ius ory me correc y Kit you were going to check with Little Rock and seethey tho>� t,about 1tNa I right? i Kit Wil >< _ s: Looking at _ last �o ting minutes where my option was that since it says that any benefit 3 ; xsase must be F ne strictly in compliance with the statute. My opinion is still the same that you 't change at was approved without going back and getting another study done with your propal. Even though potentially it won't cost more but we are not actuaries we can't r�'acls it wouldn't cost more because it would be based on different life expectances now with ople receiving this increased benefit. It would probably help the older members more than the younger members like you all. It would probably cost less but I'm not an actuary and I'm not about to say. I'm a lawyer and when the law says that it must be done in strict compliance with this statue than that is what I'm going to tell you. You could ask the actuaries to look at it again from that perspective. I would guess especially after this most recent investment report that they would probably say yes there is money to do that just like there's money to continue your 3% for the next year. You could do that but it would require six out of seven votes to ask for the study and you would have to undo the 3% that you have remaining that is across the board. I think I said at that point in the meeting that we weren't interested in doing Policemen's Pension &Relief Fund Board of Trustees Meeting Minutes April 26,2007 Page 3 of 10 a ton of work unless there was a lot of support on this board. We don't want to just go through the motions and then we come to the board and can't get a second. So you all need to let us know if you want us to prepare a resolution to that and send it down to the state. Mayor Coody: Since I missed that meeting let me ask what are the bottom lines here? What are the differences between the 3% verse the even distribution. Kit Williams: What it would do is persons that retired a long time ago and they were making less money at the time so their benefit is less and they didn't work a any years, 3% to them would be much less than it is to some of our more recent retirees. o eqrecent retirees would lose the older retires would gain under that basically. �1111 ,1� Jerry Friend: Is there a way that it dies and goes anyway wilout biigmg it up for a vote and voting it down. Eldon Roberts: Can you just keep tabling it? y Kit Williams: Was there an actual motion before? `4 l Sondra Smith: No, there has not been a�motlon N Tim Helder: I think all there was wawa rev t for you to to � at that and I think you responded last time and somehow it was tabled at th - teetmg Jerry Friend: I promis d \eve�ralpeople that ought rt s something we should talk about. � a y'�� 3. We have talked aboutyl- he people tlt I have talked to that when it ever came to a ' /I I as open about that. I know there are not vote, if it did, I ma,,P ,� well voteagainst it too , � p ;y Y✓� enough votes on this boar, as Kit Wilhaus:3 e ` could b otlon that e 'ust continue on course without changing. That you continue to do thy;3%g, as h a eady been approved. That would demonstrate the board's \s sR, posit an a` `a \ti Eldon RobeA There is on one more year of that left. ,W 011 Kit Williams: 1=rt Eldon Roberts: The 'e are going to have to revisit it and either can or cannot get a benefit increase to continue. 1t that time we can look at it and maybe consider an across the board raise for everybody which would be the same amount. There is only one more 3%, it's coming up in January of 2008 and that is the last one. We had a five year temporary 3% COLA adjustment. I also agree with Jerry I would like to continue on in the same course. Let this one come and go in January. Benefit increases are going to be hard to come by from here on out. I know with the Fire Department just tried for a 1% I believe. Kit Williams: No, I think they tried for a 3% didn't they? Policemen's Pension&Relief Fund Board of Trustees Meeting Minutes April 26,2007 Page 4 of 10 Sondra Smith: They tried for 3% but the actuary came back and said they didn't even qualify for a 1%. Eldon Roberts: I knew I saw a 1% in some information that I read on that. They may not be as financially sound as we are. We might not even pass a benefit increase for a COLA through Little Rock. I have some concern if we sent this one down there and them coming back and saying you can't even do any benefit increases. I don't know that we could keep the 3% we still have in the bank or not. Kit Williams: I don't think you could ask for that without undoi\\ ;tie other. Eldon Roberts: Then we are out in the open to actually los at 3° o\\ awe do have coming in January if they say you can't do any benefit increases w c , th y, did to € afire Pension. I think at least we have a 3% in the bank so to speak comin m J< uary and tho � w : er members are going to get whatever it does amount to for them. ey could stand to get not w undo the 3% and go back to Little Rock and they say youcan o any benefit increases� T en we have lost that 3% that we have in our hand. 'x, Mayor Coody: It sounds like that is theconsensus of the b , o \ A&, Jerry Friend moved to make no changes LA at this tim -. ldon Roberts seconded the motion. Upon roll call the motion cared ag{! .,:moi fir New Business: oal, Warren Dennis Deceas d r ggg Mayor Coody ,: m a e Denseceas 'e have the obituary in our packet. i M ' Sonmith: I also pu,atopy o e X00 check that was issued as a death benefit so that you wo i d o that that was t care InvestmentPres ion C _ fig Canard 464-8133 (would like to attend a meeting) Sondra Smith: I recd ed an email from a current pensioner and from what I understand from the current pensioner; Dennis Taylor. He would like for this gentleman to come and give a presentation at one of our meetings. He said he is a real good investment person. From the email he said he talked to Tim and that they would like to put this on the agenda to see if willing to have him come and give a presentation. Mayor Coody: He basically wants to compete with Elaine for management. Sondra Smith: Yes. Policemen's Pension&Relief Fund Board of Trustees Meeting Minutes April 26, 2007 Page 5 of 10 Kit Williams: He talked you Tim? Tim Helder: He called me and I said we are satisfied with whom we have but the person to contact would be Sondra. I don't even know what the procedure is on that. Kit Williams: We have to do a RFP for every investment advisor and it is a long interview process. The Firefighters did that because the person they liked changed brokerage firms and they wanted to just stay with him. I told them you can't just stay with him you have to go through the whole process. They did and very wisely chose Elaine have done much better since they chose her than what they had done before with Merrill Ly Mayor Coody: The y sure have. F Eldon Roberts: We have had other people do this tora, asks me and give us a presentation and once you start that it is a never end process. We wou ve to sit through countless hours of those. Jerry Friend: We use to do it and it wasted a lot of tirne`:2 ; Eldon Roberts: Yes. wy GyL C�////, 3t1�� s Mayor Coody: We are wasting time nowTtaxing�about it. �:rgJ �D \q Sondra Smith: He called a couple times. I ve fi of an €, om the Taylor Family so I do need to let him know. H a going to comm, o the mee g and I said no we don't do it that way. r a, Mayor Coody: Do we inry ;;. to deny or jus ell them no. Sondra Sm ;'tetter but no""ts? Mayo oody: Yes. Kit Willia ".0 Our policy i d it's the same to hire any professional if you are going to do it don't bring jsox guy illy go through the whole process. Eldon Roberts: Ad e isefi Jerry Friend: And were not looking for someone else. Do we need to vote or just say no? Mayor Coody: I don't know why we would even need to vote on it because we are not even in the mood to go out for a RFP. Jerry Friend: Can we ask you to write them a letter saying no? Sondra Smith: Yes. Policemen's Pension&Relief Fund Board of Trustees Meeting Minutes April 26,2007 Page 6 of 10 Kit Williams: Just tell them we are not sending out RFP's and we don't need to hear from them. Sondra Smith: Okay. Mayor Coody: Alright thanks. Longer Investments: !,- Monthly Investments Report /i Mayor Coody: Is it good news? � Kim Cooper: It's good news. ' Y Mayor Cooper: Excellent the stock market broke 0 Wha s the outlook? r Kim Cooper: I can start with the outlook since you as 'rst Elaine is not here this morning because we are in the middle of e NOYMI eason. We ha , weral companies that reported > ;. earnings on the open today so she wanl44,101"e�there towatchJli"�t and see what happened with the stock market. So I will be deliveringyourre ;ort today. EIa �assed along some of her words of wisdom. The Mayor asked abou�t��the o with tl stock market going through 13,000 she wanted to let you know that that s ew g * hat but its also being confirmed by new highs in the trap A ,M the utilitiesv e have ado hit a new 6 1/2 year high in the NASDAQ so it's not ' ; t that o = ingle index ht's very broad based. It's a strong advance it's confirmed by the to al in th F charts with t ces but we are also seeing very strong earnings. They are much tier t x ected and the new highs are being confirmed by all of the averages Elaine feels very oabo' 'Lill }s act but we may see the market take a breather now that rr - ,; rtrt7axo gk ;that 1�3 0®0 level t La erybody has been watching. The economy may be slow 4{ `as we go i = e sec , F half and the estimates are about 2% growth going into the secon� f but the e & cture ag »,is still very good. The first r is the port appraisal through the end of March. Page one the domestic equities are 4Sv ;f�your portlio. � ,ms's% Page two your fore"I r°stocks are 6.8% of portfolio and that comes to 13% of your total equity uities� foreign our So exposure. ? ` n plus domestic were 51.8% as of March 3ISt so we need P Y ��q your authorization to be at that level since we are between the 50% to 55%. Mayor Coody: The policy is 50%? Kim Cooper: The policy is 50% with a variance of 5% above or below. Mayor Coody: Okay. Policemen's Pension&Relief Fund Board of Trustees Meeting Minutes April 26,2007 Page 7 of 10 Eldon Roberts moved to approve the equity overage. Tim Helder seconded the motion. Upon roll call the motion passed 7-0. Your corporate, government and government agency bonds are listed after the equities. Your current yield on corporate bonds is 6.3%. The current yield on your treasury bonds is 5.1%. The bottom of page two going through page four are your government agency bonds and those are yielding 5.4%. So as of March 31St your portfolio value was $10,559,000. In your cash and equivalents there is restricted cash of $107,000 listed and that was cashat we were holding for distribution that went out shortly after the first of April. We were hal i g. it so it wouldn't be invested. Since there has been a lot of activity in the market sinc , arch 31st we went ahead and put in an updated report in as of April 20 I won't go through er Y;hZn on the April 20th report . gig P p but on page eight your portfolio value as of April 20th was $T.E0.730 ===on. That includes the $107,000 that went out the first of April. Just for the mo �hthrough April 20th your stocks were Nq . up 5.3%, your foreign stocks were up 3.8% and the toacco�int was up 2. 1a 'ust in those first 20 days of the month. That doesn't include what ,aha e seen this week wh>c q that go up even more. 61 w � � 'isi�I Page nine is a summary of your realized gains and incoKfor the first quarter. Your realized gains have been $70,879 and your net incpme has been $43 46IV/0 s i40 n Page 10 is a summary of your fixed incor4 fl6ld ngs your bonds fur weighted average yield to maturity is 5.4% and your average mat'k ty is 3 e sand hat compares to a five year treasury bond which only yields 4.5%. So you & av to e ity than a five year treasury but you have a higher yield`o th F you would in $e five year Easury. a � maturity. I' ur under one year and our one to three year IN 1211, The lower table shq� s� ributaony ty. o y y y bonds are 40% or your U d portflip. So you stil have 40% of your bonds that mature in less than three years o you s lity if interest rates go up we can use those shorter texaboita'a�racxease eyaeld on tliezp rtfolio. Pa ell �� ` g� � 1 a list of your ,,�tgest stockholdings. All of the holdings are less than the policy require ment\ of 2.5% of to alportfoho Page 12 is yo urx : ustry wei ing. We are over weight in capital goods, consumer non-cyclical, cyclical stocks ars energyVe are still under weight consumer cyclical stocks because of d continued concern = i t e weakness in housing and the slow down in mortgage equity extractions. That's begin what's propping up spending for the consumer so we think that consumer spending will still be a bit weak. We are under weight health care and utilities. The only utility company that we own is AT&T. We are even weighted with the S&P on financial and technology. Page 13 is your year to date distributions. We have received some class action law suit proceeds about $700 this year. Your withdrawals through the end of March were $330,000. Policemen's Pension&Relief Fund Board of Trustees Meeting Minutes April 26, 2007 Page 8 of 10 Page 14 is a summary of your performance since inception. Through the end of the first quarter your stocks were down about 0.5%, your foreign equity mutual funds were up 2.2%, your bonds were up 1.3% and the total account was about 0.4%. That compared to the indices which too were about flat for the first quarter. Year to date the S& P is up about 4.4%, your stocks are up 4.6% for the domestic stocks, 5.3% for foreign stocks and your total account year to date is up 3%. The bottom of the page is a summary of your contributions, distributions and income in the account. The total investment returns since we have been managing the account is $6.350 million. That compares to your withdrawals in the account of $4.4 million. Your investment income has been higher than your withdrawals since inception by 1 Your total annualized return since inception has been 7% and that compares to that 6% n ber at we shoot for that's in your actuary reports. The actuaries use that 6% number and yp = annualized has been 7% so you have been over one percent over that. There are no changes on the investment policy other tne i' atures for the new members. a z� \12�v Mayor Coody: Do we have any questions? Th . ° y muc = ell Elaine you cvery good job. , Kim Cooper: I will pass that along. Thi' you. g"R Quarterly Report ' A copy of the LongerInvestieltQuarterly Repot was give : o the board to review. Informational , ' Eldon Robe`` 110 o s n' do w eelectionscoming up in May? Soth: Yes we E o, e wil` ening letters out probably if not tomorrow Monday for sure. Eldon Robert; ay. Kit Williams: Ho ani"ositions do we have available? Eldon Roberts: Three. Sondra Smith: Two or three. Eldon Roberts: I think Melvin was elected to fulfill Dr. Mashburn's unexpired term which has now expired. He has to run again and then myself and Tim. We serve until the end of May? Sondra Smith: End of May, yes sir. Policemen's Pension &Relief Fund Board of Trustees Meeting Minutes April 26, 2007 Page 9 of 10 Melvin Stanley: Frank is scheduled one more year? Sondra Smith: We voted to go ahead and do that by a sending a letter out and asking them to elect whoever they want to. Kit Williams: So they will vote for three is what they will do? Sondra Smith: Yes, they will choose three off of the list that is eligible. We send them a list of 77" u eligible pensioners. The widows aren't eligible and the ones sitting he board are not. Jerry Friend: Can I bring up a short complaint that some of t < "pe - ers gave me? Kit Williams: If it's short. ,, YQ Jerry Friend: It's short. Could you devise a way t the ba ots are secret by `tnyb putting a return address on the envelope having someone „ballot ®Aut and throw it tohe side? That way you know who voted and then when you count the u4�s tieyhvz v ould all be mixeckup. IaI\,� , Sondra Smith: By not having their name-gon there. la� Jerry Friend: On the ballot. '-y Sondra Smith: We can take off the blank for�thelxrrriame. V Jerry Friend: I knows ou needy 'z ow who se a letter back. Sondra Smith: We just eH.d to ldn s , that one perm is not sending in ten ballots and running a color copy F. `w IN Kit Wil, ms: Sondra; they owhen you vote for people on the Bar Association you sign the eme e. You don'tF the ba 1 yt you sign the outside of the envelope. So you check the envel®ghat way you lin that is somebody's signature. Sondra Smith. ill do it h , a ever you all want us to just let me know. Jerry Friend: I've' u ; o ; e complaints that they would rather have secret ballots. w Mayor Coody: Sure, at is one of the hallmarks of our process is secret ballot. Kit Williams: But we need to know who is voting too to make sure they are qualified to vote. Jerry Friend: I think we would have to mark the return envelope. Let them sign it and assure them that when it's opened you will just pile them all out and count them. Sondra Smith: So just have them sign the envelope. Policemen's Pension&Relief Fund Board of Trustees Meeting Minutes April 26,2007 Page 10 of 10 Mayor Coody: But not the ballot. Sondra Smith: But not the ballot. Mayor Coody: Tell them Sondra can be trusted to take care of it. Jerry Friend: Everybody trusts Sondra. /i/`M. Kit Williams: You might want to have them print and sign so you cart ac = ally figure out who it was in case they sign like me. Jerry Friend: Their return address on the envelope would b rinted. 11 Sondra Smith: A lot of them don't put their return a e ess ori the envelope''' ` S Mayor Coody: Just make sure it is printed cle e envC. K `` elo Sondra Smith: Just do an envelope with their return adds Xi it. %% �N Jerry Friend: Stick in with the ballot an „e,, they mail it would read their name and check them off. Sondra Smith: Okay, we can do that. Jerry Friend: That t be the, i rnplest way Kit Williams. I would sLil dike forwthem to signing 'o ewhere to. i'��a�ly�jG/ice Sondra S it z:�r I c ' _ the reud"rnaddress i - labels we have labels printed. Eldo erts: If those uo ut Mondytley would back by two weeks? z+f 3/Y Sondra Smit Yes, I usual, give two weeks. If I give them longer than that they wait until the deadline to t back in f. " Kit Williams: The enough otherwise they lose them. Sondra Smith: Yo are right, Eldon's term ends May 31, 2007, Jerry's ends May 31, 2008, Tim's ends May 31, 2007, Melvin Stanley's ends May 31, 2007 and Frank is May 31, 2008. So we will have three. Meeting Adjourned at 9:35 AM POLICE PENSION FUND June 2007 6800-9800 6800-9800 Month 6 Regular Mo 5335-00 5335-05 Check EMP# NAME Benefit YTD Reg Benefit Suppl. YTD Suppl. Fed Tax St Tax Net 154 ALLEN, CHARLES 2509.36 15,056.16 50.00 300.00 220.00 66.89 2,272.47 130 BAYLES, DON 1541.17 9,247.02 50.00 300.00 1,591.17 107 BLACK, JOE P 1092.85 6,557.10 50.00 300.00 100.00 20.00 1,022.85 147 BRADLEY, GERALD 4679.70 28,078.20 50.00 300.00 975.00 300.00 3,454.70 139 BRADLEY, RANDALL 2776.86 16,661.16 50.00 300.00 382.00 100.00 2,344.86 167 BROWN, JOHN 4234.96 25,409.76 50.00 300.00 600.00 200.00 3,484.96 157 CARROLL,RONALD L 2044.70 12,268.20 50.00 300.00 250.00 105.00 1,739.70 151 COLE, RUSTON 2976.45 17,858.70 50.00 300.00 600.00 200.00 2,226.45 109 COOPER, ADRIAN 619.83 3,718.98 50.00 300.00 669.83 198 DENNIS, ANNA MARY 1336.78 6,683.90 50.00 250.00 1,386.78 108 DENNIS, WARREN, Deceased 1/19/07 0.00 1,336.78 0.00 50.00 0.00 0.00 160 DUGGER,GARY 3071.59 18,429.54 50.00 300.00 300.00 120.00 2,701.59 140 FOSTER, BILLIE D. 3113.93 18,683.58 50.00 300.00 300.00 120.00 2,743.93 148 FRIEND, JERRY 3060.85 18,365.10 50.00 300.00 725.00 150.00 2,235.85 161 HANNA, JANICE 1328.73 7,972.38 0.00 0.00 100.00 25.00 1,203.73 145 HANNA, MARK 1328.73 7,972.38 50.00 300.00 100.00 50.00 1,228.73 162 HASKINS, IRENE 759.42 4,556.52 50.00 300.00 809.42 169 HELDER, TIM 5668.08 34,008.48 50.00 300.00 750.00 250.00 4,718.08 180 HOYT, RICK 7242.73 43,456.38 50.00 300.00 1,600.00 425.00 5,267.73 146 HUTCHENS, BERNICE 1772.37 10,634.22 50.00 300.00 130.00 1,692.37 143 JOHNSON, CHARLES 2383.98 14,303.88 50.00 300.00 42.67 2,391.31 194 JOHNSON, FRANK 7742.53 46,455.18 50.00 300.00 1,600.00 500.00 5,692.53 103 JOHNSON, WENDELL 760.34 4,562.04 50.00 300.00 810.34 118 JONES, BOB 3204.32 19,225.92 50.00 300.00 0.00 3,254.32 144 KILGORE, DONALD 1986.87 11,921.22 50.00 300.00 19.72 2,017.15 129 LAWSON, FORREST 1522.23 9,133.38 50.00 300.00 350.00 1,222.23 150 LITTLE, PATSY R 709.08 4,254.48 50.00 300.00 759.08 153 LORCH, DONNA G 709.08 4,254.48 50.00 300.00 759.08 156 MARTIN, KENNETH 3585.29 21,511.74 50.00 300.00 500.00 140.00 2,995.29 128 MCCAWLEY, LARRY 1645.43 9,872.58 50.00 300.00 195.00 50.00 1,450.43 116 MCCHRISTIAN, MARIE 709.08 4,254.48 50.00 300.00 759.08 126 MCWHORTER, KAREN 982.62 5,895.72 50.00 300.00 1,032.62 136 MITCHELL, MICHAEL 2238.15 13,428.90 50.00 300.00 150.00 2,138.15 141 MUELLER, ROSEMARY 2003.82 12,022.92 50.00 300.00 2,053.82 158 MUNSON,ANGELA 4075.87 24,455.22 50.00 300.00 500.00 0.00 3,625.87 112 MURPHY, JAKE 393.93 2,363.58 50.00 300.00 0.00 443.93 137 PERDUE, LARRY 2255.02 13,530.12 50.00 300.00 300.00 50.00 1,955.02 164 PERSHALL, ROBIN 1480.65 8,883.90 0.00 0.00 190.00 67.00 1,223.65 132 PHILLIPS, HOMER GENE 1703.34 10,220.04 50.00 300.00 300.00 1,453.34 105 PRESTON, GEORGE DAVID 1554.73 9,328.38 50.00 300.00 100.00 100.00 1,404.73 135 RICKMAN, LOREN 2166.09 12,996.54 50.00 300.00 230.00 65.00 1,921.09 104 RIGGINS, RAYMOND C 1620.75 9,724.50 50.00 300.00 125.00 25.00 1,520.75 183 ROBERTS, ELDON 7261.52 43,569.12 50.00 300.00 1,244.00 400.00 5,667.52 159 SCHUSTER,JOHN H. 3026.56 18,159.36 50.00 300.00 340.00 110.00 2,626.56 168 STANLEY, MELVIN 4737.93 28,427.58 50.00 300.00 1,100.00 300.00 3,387.93 155 STOUT, BETTY 841.27 5,047.62 50.00 300.00 0.00 891.27 133 SURLES, JERRY 2642.14 15,852.84 50.00 300.00 600.00 200.00 1,892.14 142 TAYLOR, DENNIS 2003.82 12,022.92 50.00 300.00 110.00 0.00 1,943.82 106 UPTON, FRANKLIN 1026.29 6,157.74 50.00 300.00 10.00 1,066.29 163 WATSON, RICHARD 6744.71 40,468.26 50.00 300.00 1,950.00 425.00 4,419.71 163 Watson, Richard Plus 25 Add'] Pay 921.13 5,526.78 0.00 0.00 921.13 149 WILLIAMS, JOYCE 2465.69 14,794.14 50.00 300.00 217.07 2,298.62 195 WITT, BETTY J 1715.37 10,292.22 50.00 300.00 115.00 64.00 1,586.37 127 WOOD, PAUL J 1534.88 9,209.28 50.00 300.00 0.00 1,584.88 131513.60 789,081.60 2,500.00 15,000.00 17,358.07 4,690.28 111,965.25 111,965.25 6800-9800 6800-9800 6800-9800 5335-00 5335-05 5335-06 Total Year to Date 789,281.60 15,000.00 0.00 804,281.60 Anna Mary Dennis benefit start 2/07 5 Warren Dennis deceased 1/19/07 POLICE PENSION FUND July 2007 6800-9800 6800-9800 Month 7 Regular Mo 5335-00 5335-05 Check EMP# NAME Benefit YTD Reg Benefit Suppl. YTD Suppl. Fed Tax St Tax Net 154 ALLEN, CHARLES 2509.36 17,565.52 0.00 350.00 220.00 66.89 2,222.47 130 BAYLES, DON 1541.17 10,788.19 0.00 350.00 1,541.17 107 BLACK,JOE P 1092.85 7,649.95 0.00 350.00 100.00 20.00 972.85 147 BRADLEY, GERALD 4679.70 32,757.90 0.00 350.00 975.00 300.00 3,404.70 139 BRADLEY, RANDALL 2776.86 19,438.02 0.00 350.00 382.00 100.00 2,294.86 167 BROWN, JOHN 4234.96 29,644.72 0.00 350.00 600.00 200.00 3,434.96 157 CARROLL,RONALD L 2044.70 14,312.90 0.00 350.00 250.00 105.00 1,689.70 151 COLE, RUSTON 2976.45 20,835.15 0.00 350.00 600.00 200.00 2,176.45 109 COOPER,ADRIAN 619.83 4,338.81 0.00 350.00 619.83 198 DENNIS,ANNA MARY 1336.78 8,020.68 0.00 300.00 1,336.78 108 DENNIS, WARREN, Deceased 1/19/07 0.00 1,336.78 0.00 50.00 0.00 0.00 160 DUGGER,GARY 3071.59 21,501.13 0.00 350.00 300.00 120.00 2,651.59 140 FOSTER, BILLIE D. 3113.93 21,797.51 0.00 350.00 300.00 120.00 2,693.93 148 FRIEND, JERRY 3060.85 21,425.95 0.00 350.00 725.00 150.00 2,185.85 161 HANNA, JANICE 1328.73 9,301.11 0.00 350.00 100.00 25.00 1,203.73 145 HANNA, MARK 1328.73 9,301.11 0.00 350.00 100.00 50.00 1,178.73 162 HASKINS, IRENE 759.42 5,315.94 0.00 350.00 759.42 169 HELDER, TIM 5668.08 39,676.56 0.00 350.00 750.00 250.00 4,668.08 180 HOYT, RICK 7242.73 50,699.11 0.00 350.00 1,600.00 425.00 5,217.73 146 HUTCHENS, BERNICE 1772.37 12,406.59 0.00 350.00 130.00 1,642.37 143 JOHNSON, CHARLES 2383.98 16,687.86 0.00 350.00 42.67 2,341.31 194 JOHNSON, FRANK 7742.53 54,197.71 0.00 350.00 1,600.00 500.00 5,642.53 103 JOHNSON,WENDELL 760.34 5,322.38 0.00 350.00 760.34 118 JONES, BOB 3204.32 22,430.24 0.00 350.00 0.00 3,204.32 144 KILGORE, DONALD 1986.87 13,908.09 0.00 350.00 19.72 1,967.15 129 LAWSON, FORREST 1522.23 10,655.61 0.00 350.00 350.00 1,172.23 150 LITTLE, PATSY R 709.08 4,963.56 0.00 350.00 709.08 153 LORCH, DONNA G 709.08 4,963.56 0.00 350.00 709.08 156 MARTIN, KENNETH 3585.29 25,097.03 0.00 350.00 500.00 140.00 2,945.29 128 MCCAWLEY, LARRY 1645.43 11,518.01 0.00 350.00 195.00 50.00 1,400.43 116 MCCHRISTIAN, MARIE 709.08 4,963.56 0.00 350.00 709.08 126 MCWHORTER, KAREN 982.62 6,878.34 0.00 350.00 982.62 136 MITCHELL, MICHAEL 2238.15 15,667.05 0.00 350.00 150.00 2,088.15 141 MUELLER, ROSEMARY 2003.82 14,026.74 0.00 350.00 2,003.82 158 MUNSON,ANGELA 4075.87 28,531.09 0.00 350.00 500.00 0.00 3,575.87 112 MURPHY, JAKE 393.93 2,757.51 0.00 350.00 0.00 393.93 137 PERDUE, LARRY 2255.02 15,785.14 0.00 350.00 300.00 50.00 1,905.02 164 PERSHALL, ROBIN 1480.65 10,364.55 0.00 0.00 190.00 67.00 1,223.65 132 PHILLIPS, HOMER GENE 1703.34 11,923.38 0.00 350.00 300.00 1,403.34 105 PRESTON, GEORGE DAVID 1554.73 10,883.11 0.00 350.00 100.00 100.00 1,354.73 135 RICKMAN, LOREN 2166.09 15,162.63 0.00 350.00 230.00 65.00 1,871.09 104 RIGGINS, RAYMOND C 1620.75 11,345.25 0.00 350.00 125.00 25.00 1,470.75 183 ROBERTS, ELDON 7261.52 50,830.64 0.00 350.00 1,244.00 400.00 5,617.52 159 SCHUSTER,JOHN H. 3026.56 21,185.92 0.00 350.00 340.00 110.00 2,576.56 168 STANLEY, MELVIN 4737.93 33,165.51 0.00 350.00 1,100.00 300.00 3,337.93 155 STOUT, BETTY 841.27 5,888.89 0.00 350.00 0.00 841.27 133 SURLES, JERRY 2642.14 18,494.98 0.00 350.00 600.00 200.00 1,842.14 142 TAYLOR, DENNIS 2003.82 14,026.74 0.00 350.00 110.00 0.00 1,893.82 106 UPTON, FRANKLIN 1026.29 7,184.03 0.00 350.00 10.00 1,016.29 163 WATSON, RICHARD 6744.71 47,212.97 0.00 350.00 1,950.00 425.00 4,369.71 163 Watson, Richard Plus 25 Add'] Pay 921.13 6,447.91 0.00 0.00 921.13 149 WILLIAMS, JOYCE 2465.69 17,259.83 0.00 350.00 217.07 2,248.62 195 WITT, BETTY J 1715.37 12,007.59 0.00 350.00 115.00 64.00 1,536.37 127 WOOD, PAUL J 1534.88 10,744.16 0.00 350.00 0.00 1,534.88 131513.60 920 595.20 0.00 17,850.00 17,358.07 4,690 28 109 465.25 109,465.25 POLICE PENSION FUND August 2007 6800-9800 6800-9800 Month 8 Regular Mo 5335-00 5335-05 Check EMP# NAME Benefit YTD Reg Benefit Suppl. YTD Suppl. Fed Tax St Tax Net 154 ALLEN, CHARLES 2509.36 20,074.88 0.00 350.00 220.00 66.89 2,222.47 130 BAYLES, DON 1541.17 12,329.36 0.00 350.00 1,541.17 107 BLACK, JOE P 1092.85 8,742.80 0.00 350.00 100.00 20.00 972.85 147 BRADLEY, GERALD 4679.70 37,437.60 0.00 350.00 975.00 300.00 3,404.70 139 BRADLEY, RANDALL 2776.86 22,214.88 0.00 350.00 382.00 100.00 2,294.86 167 BROWN, JOHN 4234.96 33,879.68 0.00 350.00 600.00 200.00 3,434.96 157 CARROLL,RONALD L 2044.70 16,357.60 0.00 350.00 250.00 105.00 1,689.70 151 COLE, RUSTON 2976.45 23,811.60 0.00 350.00 600.00 200.00 2,176.45 109 COOPER,ADRIAN 619.83 4,958.64 0.00 350.00 619.83 198 DENNIS, ANNA MARY 1336.78 9,357.46 0.00 300.00 1,336.78 108 DENNIS, WARREN, Deceased 1/19/07 0.00 1,336.78 0.00 50.00 0.00 0.00 160 DUGGER,GARY 3071.59 24,572.72 0.00 350.00 300.00 120.00 2,651.59 140 FOSTER, BILLIE D. 3113.93 24,911.44 0.00 350.00 300.00 120.00 2,693.93 148 FRIEND, JERRY 3060.85 24,486.80 0.00 350.00 725.00 150.00 2,185.85 161 HANNA, JANICE 1328.73 10,629.84 0.00 350.00 100.00 25.00 1,203.73 145 HANNA, MARK 1328.73 10,629.84 0.00 350.00 100.00 50.00 1,178.73 162 HASKINS, IRENE 759.42 6,075.36 0.00 350.00 759.42 169 HELDER,TIM 5668.08 45,344.64 0.00 350.00 750.00 250.00 4,668.08 180 HOYT, RICK 7242.73 57,941.84 0.00 350.00 1,600.00 425.00 5,217.73 146 HUTCHENS, BERNICE 1772.37 14,178.96 0.00 350.00 130.00 1,642.37 143 JOHNSON, CHARLES 2383.98 19,071.84 0.00 350.00 42.67 2,341.31 194 JOHNSON, FRANK 7742.53 61,940.24 0.00 350.00 1,600.00 500.00 5,642.53 103 JOHNSON,WENDELL 760.34 6,082.72 0.00 350.00 760.34 118 JONES, BOB 3204.32 25,634.56 0.00 350.00 0.00 3,204.32 144 KILGORE, DONALD 1986.87 15,894.96 0.00 350.00 19.72 1,967.15 129 LAWSON, FORREST 1522.23 12,177.84 0.00 350.00 350.00 1,172.23 150 LITTLE, PATSY R 709.08 5,672.64 0.00 350.00 709.08 153 LORCH, DONNA G 709.08 5,672.64 0.00 350.00 709.08 156 MARTIN, KENNETH 3585.29 28,682.32 0.00 350.00 500.00 140.00 2,945.29 128 MCCAWLEY, LARRY 1645.43 13,163.44 0.00 350.00 195.00 50.00 1,400.43 116 MCCHRISTIAN, MARIE 709.08 5,672.64 0.00 350.00 709.08 126 MCWHORTER, KAREN 982.62 7,860.96 0.00 350.00 982.62 136 MITCHELL, MICHAEL 2238.15 17,905.20 0.00 350.00 150.00 2,088.15 141 MUELLER, ROSEMARY 2003.82 16,030.56 0.00 350.00 2,003.82 158 MUNSON,ANGELA 4075.87 32,606.96 0.00 350.00 500.00 0.00 3,575.87 112 MURPHY, JAKE 393.93 3,151.44 0.00 350.00 0.00 393.93 137 PERDUE, LARRY 2255.02 18,040.16 0.00 350.00 300.00 50.00 1,905.02 164 PERSHALL, ROBIN 1480.65 11,845.20 0.00 0.00 190.00 67.00 1,223.65 132 PHILLIPS, HOMER GENE 1703.34 13,626.72 0.00 350.00 300.00 1,403.34 105 PRESTON, GEORGE DAVID 1554.73 12,437.84 0.00 350.00 100.00 100.00 1,354.73 135 RICKMAN, LOREN 2166.09 17,328.72 0.00 350.00 230.00 65.00 1,871.09 104 RIGGINS, RAYMOND C 1620.75 12,966.00 0.00 350.00 125.00 25.00 1,470.75 183 ROBERTS, ELDON 7261.52 58,092.16 0.00 350.00 1,244.00 400.00 5,617.52 159 SCHUSTER,JOHN H. 3026.56 24,212.48 0.00 350.00 340.00 110.00 2,576.56 168 STANLEY, MELVIN 4737.93 37,903.44 0.00 350.00 1,100.00 300.00 3,337.93 155 STOUT, BETTY 841.27 6,730.16 0.00 350.00 0.00 841.27 133 SURLES, JERRY 2642.14 21,137.12 0.00 350.00 600.00 200.00 1,842.14 142 TAYLOR, DENNIS 2003.82 16,030.56 0.00 350.00 110.00 0.00 1,893.82 106 UPTON, FRANKLIN 1026.29 8,210.32 0.00 350.00 10.00 1,016.29 163 WATSON, RICHARD 6744.71 53,957.68 0.00 350.00 1,950.00 425.00 4,369.71 163 Watson, Richard Plus 25 Add'I Pay 921.13 7,369.04 0.00 0.00 921.13 149 WILLIAMS, JOYCE 2465.69 19,725.52 0.00 350.00 217.07 2,248.62 195 WITT, BETTY J 1715.37 13,722.96 0.00 350.00 115.00 64.00 1,536.37 127 WOOD, PAUL J 1534.88 12,279.04 0.00 350.00 0.00 1,534.88 131513.60 1,052,108.80 0.00 17 850.00 17 358.07 4,690.28 109 465.25 109,465.25 Policemen's Pension And Relief Fund Board Of Trustees Chairman Retired Position 3 Mayor Dan Coody Tim Helder 1418 E. Rodgers Drive 188 Tower Street Fayetteville, AR 72701 West Fork, AR 72774 443-6758 — Home 839-8104 — Home 575-8330 — Work 530-0142 — Cell 01/01/01-Indef. Replaced Eldon Roberts 05/01/03-05/31/05 lst Term Treasurer 06/01/05-05/31/07 2nd Term Sondra Smith 06/01/07-05/31/09 3rd Term 113 W. Mountain Fayetteville, AR 72701 Retired Position 4 442-7838 — Home Melvin W. Stanley 575-8323 — Work PO Box 289 02/03/03-Indef. Greenland, AR 72737 839-3106 — Home Secretary 601-1224 — Cell Retired Position 1 Replaced Dr. James Mashburn Eldon Roberts 11/15/06-05/31/07 Unexpired Term 1197 S. Roberts Road 06/01/07-05/31/09 1st Term Fayetteville, AR 72701 521-0183 — Home Retired Position 5 601-6469 — Cell Frank Johnson Replaced Randy Bradley 3328 Jasper Lane 06/01/05-05/31/07 1" Term Springdale, AR 72764 06/01/07-05/31/09 2nd Term 521-0774 — Home 409-6122 — Cell Retired Position 2 Replaced Jerry Surles Jerry Friend 06/01/06-05/31/08 1st Term 1640 Stewart Fayetteville, AR 72703 In 2005 Act 386 changed the composition 443-9337 — Home of the board eliminating the physician 444-1747 — Work position and adding one active member. 05/01/96-04/30/98 1st Term The active position is now a retired 05/01/98-04/30/00 2nd Term position due to the fact that there are no 05/01/00-04/30/02 3rd Term current active members on the pension 05/01/02-04/30/04 4th Term plan. The physician position was also 05/01/04-05/31/06 5th Term replaced by a retired member. 06/01/06-05/31/08 6th Term 43 Page 1 of 2 24-11-405. Board of trustees. (a) The board of trustees of the policemen's pension and relief fund shall consist of seven (7) members as follows: (1) The chief executive officer of the city, who shall be chair of the board; (2) The city treasurer, who shall be treasurer of the fund; (3)(A)(i) Five (5) active or retired members of the pension fund. (ii)(a) The active pension fund members shall elect the active members by secret written ballot in May of each year, with the .member or members to be chosen in alternating years. (b) The retired member or members shall be chosen in May of each year by a method to be determined by the board, with the member or members to be chosen in alternating years. (c) All member trustees shall serve two-year terms. (iii) If there are no active members of the pension fund, all five (5) employee members shall be elected from and by the retired membership of the pension fund. (B) The board shall select one (1) of the police,members as secretary of the board to serve for+a period of two (2) years or until his or her successor is elected and qualified. (C) However, if no retirant is available to serve on the board, all five (5) employee positions shall be held by active members of the pension fund and shall be elected by secret ballot by the active members of the pension fund for two-year terms as provided in subdivision (a)(3)(A) of this section. (D) The board shall have the power to make all rules and regulations needful for its guidance to implement the provisions regarding board composition; and (4) The number of active members or retired members to serve on the board shall be determined by the proportionate number of active members to retired members as follows: (A) When the number of active members equals seventy-five percent (75%) of the total of retired members and active members, the board shall be composed of four (4) active members and one (1) retired member; (B) When the number of active members equals fifty percent (50%) of the total of retired members and active members, the board shall be composed of three (3) active members and two (2) retired members; and (C) When the number of retired members equals seventy-five percent (75%) of the total of retired members and active members, the board shall be composed of one (1) active member and four (4) retired members. (b) The police officer members and the physician representative of the board shall serve for a period of two (2) years or until their successors are elected and qualified. (c) The board shall have the absolute control and management of the funds provided for in this subchapter and of all moneys donated, paid, or assessed for the relief or pension of disabled, superannuated, and retired members of the police department, their surviving spouses and minor children, or dependent parents solely dependent upon members for their support. (d)(1) The board shall make all necessary rules and regulations for its government and the discharge of its duties and shall hear and decide all applications for relief or pension under this subchapter. (2) All decisions upon applications shall be final and conclusive and not subject to review or reversal except by the board. (3) The board shall cause to be kept a record of all its meetings and proceedings. (e)(1) Each member of the board of trustees of the policemen's pension and relief fund who receives gifts or other compensation, including, but not limited to, trips and meals, from current or potential investment advisors or managers of the policemen's pension and relief fund shall prepare an annual statement listing: (A) Each item received; http://170.94.5 8.9/NXT/gateway.dll/ARCode/title32147.htm/chapter32812.htm/subehapter3... 6/7/2007 Page 2 of 2 (B) The estimated value of each item; and (C) From whom each item was received. (2)(A) Each member of the board of trustees of the policemen's pension and relief fund shall attest by written affidavit that the member's annual statement is true and current to the best of his or her knowledge. (B)(i) An annual statement and affidavit from each member of the board of trustees of the policemen's pension and relief fund shall be collected by the board of trustees of the policemen's pension and relief fund or the municipal treasurer. (ii) One (1) copy of the statement and affidavit shall be filed with the Secretary of State. (iii) A second copy of each statement and affidavit shall be retained on file by the board of trustees of the policemen's pension and relief fund or the municipal treasurer and shall be available for review by any plan participant. (C)(i) As part of the annual report to the Arkansas Fire and Police Pension Review Board, the chair of each board of trustees of the policemen's pension and relief fund for each plan shall certify that the statements and affidavits as described in this subsection have been completed and appropriately filed. (ii) Each plan's annual report shall not be considered complete without this certification. History. Acts 1937, No. 250, §§ 3, 4; Pope's Dig., §§ 9858, 9859; Acts 1985, No. 390, § 1; A.S.A. 1947, §§ 19-1803, 19- 1804; Acts 1987, No. 405, § 2; 1991, No. 365, § 1; 2003, No. 778, § 1; 2005, No. 386, § 1; 2005, No. 2094, § 3. http://170.94.5 8.9/NXT/gateway.dll/ARCode/title32147.htm/chapter3 2812.htm/subchapter3... 6/7/2007 RE 74)a CEIVED 11AY 2 , 2001 P R R CITY OF FAYETTEVILLE ARKANSAS FIRE & POLIC B( AMERKSOFFICE MAY 2 2007 620 W. 3rd, Suite 200 To: Local Pension Fund Board of Trustees CITY OF FAYET44fLLjoCk, Arkansas-722,01-2212 MAYORS OFFICE Telephone: (501) 682-1745 From: Arkansas Fire and Police Pension Review Board (PRB) Toll-Free: (866) 859-1745 Fax: (501) 682-1751 Re: Summary of the 2007 Legislative Session email: info @ lopfi-prb.com website: www.lopfi-prb.com Date: May 18, 2007 Following is a brief summary of the Acts from the 2007 Legislative Session that apply to the Local (Closed) Fire and Police Pension Funds. Unless a specific date is included at the end of a summary, the effective date for the Act will be July 31, 2007. If you would like to read the full text of a particular Act, you may access this information via the General Assembly's web site at hqp://www.arkleg.state.ar.us/ Act 608 (House Bill 1095, Harris) Continued Millage for Consolidated Plans Act 608 amends the language of current law to clarify that a dedicated millage passed by a municipality can be used for fire and police pension contributions after consolidation of the Closed Plan with LOPFI. That is, it allows the use of dedicated millage to pay the consolidated. LOPFI employer contribution rate. Act 609 (House Bill 1097, Harris) Premium Tax Allocation Changes Under previous law, a significant portion of the funding of the Closed Fire and Police Plans and of LOPFI comes from insurance premium tax. Act 609 made several changes to the premium tax allocation formula. These changes are: 1. There will be a mandatory employ contribution for volunteers in LOPFI. Currently some employers pay nothing (since their entire cost is covered by the premium tax allocation). Act 609 requires a basic payment from each volunteer employer (beginning at $3 per volunteer member, per month). 2. The LOPFI employer volunteer cost, in excess of the mandatory employer contribution will be 100% covered by premium tax allocation. 3. For the paid groups in LOPFI, there will be a mandatory employer contribution. This amount will begin at 1% of pay in 2008, go to 2010 in 2009, and 3% thereafter. 4. The cost of any benefit enhancements, whether legislated or the result of local option, will NOT be funded via premium tax monies. 5. Deleted a provision in law that, in very limited circumstances, would have permitted the use of premium tax for purposes other than funding retirement costs. 6. This Act was effective March 28, 2007. Local Pension Fund Board of Trustees May 18, 2007 Page 2 of 3 Act 1056 (House Bill 1099, Harris) Consolidate Smallest Plans Act 1056 requires Closed Fire and Police Plans with less.than five members (active or retired) declared inactive by the employer group and consolidate administration with LOPFI. The number of members does not include surviving spouses. In addition, actuarially sound Closed Plans will have a cost of living adjustment built into their benefit formula upon consolidation. Act 611.(House.Bill 1172,.Greenberi!) Police ODRO change Board vote Act 611 makes the following changes to the Closed Police Plans (it does not change the Closed Fire Plans): 1. Allows surviving spouses to vote during the election of local board members. It also allows the Board to fill a vacancy for the remainder of a term. 2. Clarifies how distributions will occur when there is a surviving spouse and a QDRO recipient of a deceased police officer. 3. Allows payment of a death benefit (formerly funeral expense) to a police officer's estate if there is no surviving spouse. (Also, see Act 1571). Act 614 (House Bill 1277, Harris) Retroactive Benefit Increase allowed for Widows Under previous law, a Closed Fire Plan may increase benefits, provided they are actuarial sound. A Closed Fire Plan may restore the benefit of a surviving spouse who remarried, in the case of a firefighter who died in the line of duty. Act 614 allows such a restoration to include any benefit increases given between the time the spouse's benefits were stopped and the time they were restored. Actuarial soundness was not part of this Act, so a local board may implement this provision even if the fund has moved to an actuarial unsound position. This Act was effective March 28, 2007. Act 218 (House Bill 14K Maloch) State Taxes on Pension Benefits Act 218 allows the State of Arkansas to have the same provision found under the Pension Protection Act at the federal level. Arkansas will allow eligible retired public safety officers the option of having qualified health insurance premiums (up to $3,000 per year) deducted from their retirement benefit on a pre-tax basis. Act 1571 (Senate Bill 144, T. Smith) Police Death Benefit Under previous law, local Police Plans may pay a death benefit of at least $100, but not more than $4,000. Act 1571 allows a death benefit to be increased uniformly to no more than $6,500 at the discretion of the local board of trustees. (Also, see Act 611). Local Pension Fund Board of Trustees May 18, 2007 Page 3 of 3 Act 1572 (Senate Bill 155, T. Smith) Police Reemployment after DROP Allows Iocal police plan members who have retired after participating in the Deferred Retirement Option Plan ("DROP") to return to law enforcement. The retired member can return to work with a different employer group from the one retired from as long as there was a break in service of at least thirty (30) days. The retired member would continue receipt of his/her retirement benefit from the local police pension fund. Act 849 (Senate Bill,156, T. Smith) Increase Future Supplement Previous law created a "Future Supplement Fund" for Closed Fire and Police Plans to provide a form of cost-of-living-adjustment: In 2006, the Future Supplement Fund paid $1,201.20 to each retired police participant, $518.40 to each retired full-paid fire participant, and $103.68 to each retired volunteer fire participant. Each year 90% of the monies in the Future Supplement Fund were distributed to the eligible participants. The remaining 10% was accumulating with the goal of developing a permanent cost-of-living fund. Act 849 will distribute 100% of the Fund each year, which includes the amounts currently held for future use. This Act was effective April 3, 2007. Act 851 (Senate Bill 158, T. Jeffress) Minimum Investment Standards Act 851 makes the following changes to the authority of the Arkansas Fire and Police Pension Review Board (PRB): 1. Set a minimum asset management standard so that if a Closed Fire or Police Fund (a) is meeting regularly; (b) is actuarially sound; and (c) is earning interest at least as great as a one year Treasury note, then they meet the standard. 2. If the Closed Fire or Police Fund does not meet the minimum asset management standard, they would be required to develop a written investment policy and hire professional investment management. 3. If a Closed Fire or Police Fund does not meet the additional requirements in item 2, then they must develop a plan of action in conjunction with the PRB to find ways to meet these standards. 4. Give the PRB rule making authority to implement this minimum asset management standard. Should you have questions about a .particular Act, please feel free to contact either Denise Reed or David Clark. Thank you. RECEIVED LONGER INVESTMENTS INCORPORATED JUL 0 9 2007 1h CITY OF FAYETTEVILLE a CITY CLERIC'S OFFiCE A Registered Investment Advisor July 7, 2007 Ms. Sondra Smith City of Fayetteville Police Pension Fund 113 W. Mountain St. Fayetteville, Arkansas 72701 Dear Sondra: Enclosed you will find the 2007 second-quarter reports for the City of Fayetteville Police Pension Fund. These reports include a portfolio appraisal and a summary of realized gains/losses and income/expenses. Detailed reports of realized gains/losses and income/expenses are included at the back of the report package. As instructed, the account at Northern Trust will be billed for the management fee. A mid-year issue of our newsletter, The Longer View, was mailed in June. The newsletter discussed recent activity in the stock and bond markets, and our outlook for the second half of the year. Year-to-date performance for 2007 is detailed below: Domestic Foreign Total Equities Funds Bonds Account Fayetteville Police Pension 7.8% 6.7% 1.6% 4.8% In comparison, 2007 returns for market indices for the same time period are listed below: S&P 500 (cash basis) 6.0% S&P 500 (with reinvested dividends) 7.0% Dow Jones Industrial Average (cash basis) 7.6% NASDAQ over-the-counter index 7.8% Salomon Bros. Total Return Treasury Index 1.0% P.O.Box 1269 Fayetteville,Arkansas 72702 Telephone:479-443-5851 Toll free: 800-827-7710 Fax:479-443-7129 Web site:www.longerinvcom Ms. Sondra Smith July 7, 2007 Page Two SEC Regulation S-P requires Longer Investments Inc. to provide a copy of its Privacy Policy to clients on an annual basis. A copy of the policy is included for your review. If you would like a copy of the Longer Investments Inc. Proxy Voting Policy, please contact our office. Longer Investments appreciates the opportunity to assist with the management of the City of Fayetteville Police Pension Fund's assets. Please do not hesitate to call if you have any questions or comments, or if we can be of further service. Sincerely, Elaine M. Lon er, President EML:cml Enclosures City of Fayetteville Police Pension Fund 1 SECOND QUARTER REPORTS June 30, 2007 LONGER INVESTMENTS INCORPORATED A Registered Investment Advisor Longer Investments Inc. PORTFOLIO APPRAISAL City of Fayetteville Police Pension Fund June 30, 2007 Unit Total Market Pct. Unit Annual Cur. Quantity Security Cost Cost Price Value Assets Income Income Yield Common Stock 4,100 AT&T 27.29 111,899.06 41.50 170,150.00 1.6 1.420 5,822.00 5.2 2,225 American Express Co. 58.46 130,079.95 61.18 136,125.50 1.3 0.600 1,335.00 1.0 1,980 American International 67.60 133,848.67 70.03 138,659.40 1.3 0.800 1,584.00 1.2 Group Inc. 5,650 Applied Materials Inc. 16.08 90,878.56 19.87 112,265.50 1.0 0.240 1,356.00 1.5 2,815 Avon Products Inc. 35.71 100,510.75 36.75 103,451.25 1.0 0.740 2,083.10 2.1 1,000 B.P. Amoco PLC A.D.S. 55.58 55,576.67 72.14 72,140.00 0.7 2.480 2,480.00 4.5 2,500 Bank of America Corp. 46.98 117,454.50 48.89 122,225.00 1.1 2.240 5,600.00 4.8 3,115 Barclays PLC 41.06 127,905.34 55.79 173,785.85 1.6 2.810 8,753.15 6.8 2,100 Cameco Corp. 39.35 82,628.49 50.74 106,554.00 1.0 0.170 357.00 0.4 2,000 Chevron Corp. 44.40 88,805.53 84.24 168,480.00 1.6 2.320 4,640.00 5.2 3,500 Citigroup 44.91 157,176.70 51.29 179,515.00 1.7 2.160 7,560.00 4.8 2,500 Coca-Cola 41.90 104,754.84 52.31 130,775.00 1.2 1.360 3,400.00 3.2 1,425 Devon Energy Corp. 66.34 94,532.08 78.29 111,563.25 1.0 0.560 798.00 0.8 3,000 Disney Company 25.72 77,164.87 34.14 102,420.00 1.0 0.310 930.00 1.2 6,315 EMC Corporation 16.07 101,497.50 18.10 114,301.50 1.1 0.000 0.00 0.0 2,900 Emerson Electric 26.98 78,235.90 46.80 135,720.00 1.3 1.050 3,045.00 3.9 1,800 ExxonMobil 55.07 99,134.83 83.88 150,984.00 1.4 1.400 2,520.00 2.5 6,350 General Electric 31.80 201,916.26 38.28 243,078.00 2.3 1.120 7,112.00 3.5 3,750 Health Care Select 33.02 123,820.02 35.31 132,412.50 1.2 0.497 1,865.55 1.5 Sector SPDR Fund 2,300 Ingersoll-Rand 41.13 94,602.22 54.82 126,086.00 1.2 0.720 1,656.00 1.8 1,000 Intl Business Machines 102.56 102,557.80 105.25 105,250.00 1.0 1.600 1,600.00 1.6 6,000 Intel Corp. 18.33 109,997.24 23.74 142,439.40 1.3 0.450 2,700.00 2.5 2,850 J.B. Hunt 22.51 64,161.46 29.32 83,562.00 0.8 0.360 1,026.00 1.6 1,650 Johnson &Johnson 60.88 100,456.37 61.62 101,673.00 0.9 1.660 2,739.00 2.7 3,150 Kraft Foods Inc. 32.92 103,707.75 35.25 111,037.50 1.0 1.000 3,150.00 3.0 _i 2,150 Norfolk Southern 53.09 114,142.80 52.57 113,025.50 1.1 0.880 1,892.00 1.7 2,220 Northern Trust Corp. 57.45 127,529.15 64.24 142,612.80 1.3 1.000 2,220.00 1.7 5,550 Oracle Corp. 17.04 94,591.77 19.71 109,390.50 1.0 0.000 0.00 0.0 4,350 Parametric Technology 19.98 86,902.50 21.61 94,003.50 0.9 0.000 0.00 0.0 Corp. 1,275 Parker Hannifin Corp. 82.50 105,188.39 97.91 124,835.25 1.2 0.920 1,173.00 1.1 4,000 Patterson-UTI Energy 23.91 95,642.00 26.21 104,840.00 1.0 0.480 1,920.00 2.0 Inc. 5,100 Powershares Dynamic 18.96 96,686.82 19.44 99,144.00 0.9 0.000 0.00 0.0 Semiconductors 7,915 Powershares Water 18.31 144,928.30 20.92 165,581.80 1.5 0.094 746.54 0.5 Resource 2,620 St. Jude Medical 38.04 99,664.21 41.49 108,703.80 1.0 0.000 0.00 0.0 4,800 Symantec Corp. 19.83 95,167.47 20.20 96,960.00 0.9 0.000 0.00 0.0 3,350 Teva Pharmaceuticals 38.62 129,384.85 41.25 138,187.50 1.3 0.390 1,306.50 1.0 4,430 Texas Instruments 30.09 133,286.13 37.63 166,700.90 1.6 0.320 1,417.60 1.1 650 The Technology Select 24.68 16,042.00 25.60 16,640.00 0.2 0.174 113.18 0.7 Sec SPDR Fund 5,935 Time-Warner, Inc. 17.95 106,534.01 21.04 124,872.40 1.2 0.220 1,305.70 1.2 1,475 United Parcel Service 73.99 109,137.76 73.00 107,675.00 1.0 1.680 2,478.00 2.3 Inc. 2,500 Verizon 40.60 101,500.00 41.17 102,925.00 1.0 1.620 4,050.00 4.0 Communications 1,875 Walmart Stores 47.08 88,266.39 48.11 90,206.25 0.8 0.880 1,650.00 1.9 1 LONGER INVESTMENTS INCORPORATED A Registered Investment Advisor Longer Investments Inc. PORTFOLIO APPRAISAL City of Fayetteville Police Pension Fund June 30, 2007 Unit Total Market Pct. Unit Annual Cur. Quantity Security Cost Cost Price Value Assets Income Income Yield 2,300 Western Digital Corp. 19.14 44,022.00 19.35 44,505.00 0.4 0.000 0.00 0.0 4,441,919.90 5,225,462.85 48.6 94,384.32 2.2 Preferred Debt Securities 1,000 G.E. Preferred 6.10% 25.07 25,070.00 24.17 24,170.00 0.2 1.525 1,525.00 6.1 AAA/AAA(C 11-15-07) 1,000 G.E. Preferred 6.625% 23.84 23,840.00 24.97 24,970.00 0.2 1.656 1,656.25 6.9 AAA/AAA (C 6-28-07) 48,910.00 49,140.00 0.5 3,181.25 6.5 Mutual Funds-Equity 20,000.0000 iShares MSCI Japan 10.80 216,006.25 14.51 290,200.00 2.7 0.099 1,989.18 0.9 Index Fund 1,820.0000 iShares MSCI Taiwan 12.54 22,814.97 16.00 29,120.00 0.3 0.302 548.97 2.4 Index Fund 3,750.0000 iShares S&P Europe 82.54 309,531.29 116.93 438,487.50 4.1 2.083 7,810.60 2.5 3501ndex 548,352.51 757,807.50 7.1 10,348.75 1.9 I Corporate Bonds 50,000 Cleve Electric/Toledo 99.09 49,543.00 100.00 50,000.00 0.5 7.130 3,565.00 7.2 Ed. Aaa/AAA(NC) AMBAC YTM 7.30% 7.130% Due 07-01-07 160,000 Wells Fargo &Co. 100.65 161,033.25 100.42 160,667.20 1.5 6.250 10,000.00 6.2 AA2/AA (NC) 6.250% Due 04-15-08 100,000 McDonald's Corp A2/A 98.45 98,450.00 101.49 101,492.50 0.9 6.000 6,000.00 6.1 (NC)YTM 6.21% 6.000% Due 04-15-11 Accrued Interest 5,105.93 0.0 309,026.25 317,265.63 3.0 19,565.00 6.3 Government Bonds 150,000 U. S. Treasury Note 100.00 150,000.00 100.56 150,843.75 1.4 5.125 7,687.50 5.1 5.125% Due 05-15-16 Accrued Interest 960.94 0.0 150,000.00 151,804.69 1.4 7,687.50 5.1 Government Agency 250,000 Federal Home Loan 100.00 250,000.00 99.91 249,765.62 2.3 5.020 12,550.00 5.0 Bank (C 9-14-06 @ 100, 1X) 5.020% Due 09-14-07 100,000 Fed Nat'l Mortgage 100.00 100,000.00 99.78 99,781.25 0.9 5.125 5,125.00 5.1 Assoc (C 10-3-07 @ 100, IX) 5.125% Due 10-03-08 150,000 Federal Home Loan 100.00 150,000.00 99.94 149,906.25 1.4 5.250 7,875.00 5.2 Bank (NC) 5.250% Due 11-14-08 2 ILLONGER INVESTMENTS INCORPORATED I, A Regista-ed Investment Advisor Longer Investments Inc. PORTFOLIO APPRAISAL City of Fayetteville Police Pension Fund June 30, 2007 Unit Total Market Pct. Unit Annual Cur. Quantity Security Cost Cost Price Value Assets Income Income Yield 75,000 Federal Farm Credit 100.00 75,000.00 99.97 74,976.56 0.7 5.200 3,900.00 5.2 r Bureau (NC) 5.200% Due 12-10-08 350,000 Federal Home Loan 100.00 350,000.00 99.69 348,906.25 3.2 5.100 17,850.00 5.1 Bank(C 12-26-07 @ 100, IX) 5.100% Due 12-26-08 100,000 Federal Farm Credit 100.50 100,500.00 100.31 100,312.50 0.9 5.400 5,400.00 5.4 Bank(NC) 5.31% YTM 5.400% Due 02-11-09 50,000 Federal Home Loan 99.87 49,937.50 100.03 50,015.62 0.5 5.250 2,625.00 5.3 Bank(NC) 5.250% Due 02-13-09 100,000 Federal Farm Credit 100.00 100,000.00 102.97 102,968.75 1.0 6.750 6,750.00 6.7 Bank(NC) 6.750% Due 07-07-09 250,000 Federal Home Loan 100.00 250,000.00 99.53 248,828.12 2.3 5.100 12,750.00 5.1 Bank(C 5-20-08 @ 100, IX) 5.100% Due 11-20-09 225,000 Federal Home Loan 100.00 225,000.00 99.97 224,929.69 2.1 5.520 12,420.00 5.5 Bank(C 8-24-07 @ 100, ix) 5.520% Due 02-24-10 320,000 Federal Home Loan 100.00 320,000.00 99.53 318,500.00 3.0 5.250 16,800.00 5.2 Bank(C 2-9-09 @ 100, IX) 5.250% Due 02-09-11 65,000 Federal Home Loan 100.00 65,000.00 98.87 64,268.75 0.6 5.020 3,263.00 5.0 Bank(C 4-13-09 @ 100, ix) 5.020% Due 04-13-11 50,000 Federal Home Loan 100.00 50,000.00 102.81 51,406.25 0.5 6.000 3,000.00 6.0 Bank (NC) 6.000% Due 05-13-11 100,000 Federal Home Loan 100.00 100,000.00 98.53 98,531.25 0.9 5.000 5,000.00 5.0 Bank(C 7-30-07, continuously thereafter) 5.000% Due 05-25-11 100,000 Fed Nat'l Mortgage 100.00 100,000.00 99.53 99,531.25 0.9 5.400 5,400.00 5.4 Assoc (C 9-15-08 @ 100, ix) 5.400% Due 09-15-11 100,000 Federal Farm Credit 100.00 100,000.00 98.78 98,781.25 0.9 5.080 5,080.00 5.1 Bank(C 10-13-09 @ 100, continuously thereafter) 5.080% Due 10-13-11 250,000 Federal Home Loan 100.00 250,000.00 98.34 245,859.37 2.3 5.020 12,550.00 5.0 Bank (C 12-12-08 @ 100, IX) 5.020% Due 06-12-12 3 LONGER INVESTMENTS INCORPORATED A Registered Investment Advisor Longer Investments Inc. PORTFOLIO APPRAISAL City of Fayetteville Police Pension Fund June 30, 2007 Unit Total Market Pct. Unit Annual Cur. Quantity Security Cost Cost Price Value Assets Income Income Yield - 41,667 Federal Home Loan 100.00 41,666.67 98.00 40,833.34 0.4 5.080 2,116.67 5.1 Bank (C 7-30-07, continuously thereafter) 5.080% Due 10-03-12 250,000 Federal Home Loan 100.00 250,000.00 97.75 244,375.00 2.3 5.000 12,500.00 5.0 Bank (C 10-5-07 @ 100, continuously thereafter) 5.000% Due 10-05-12 250,000 Federal Home Loan 100.00 250,000.00 98.94 247,343.75 2.3 5.250 13,125.00 5.2 Bank (C 11-14-08 @ 100, IX) 5.250% Due 11-14-12 50,000 Federal Home Loan 100.00 50,000.00 97.62 48,812.50 0.5 5.050 2,525.00 5.0 Bank(C 7-30-07, continuously thereafter) 5.050% Due 02-20-13 50,000 Federal Farm Credit 100.00 50,000.00 97.66 48,828.12 0.5 5.200 2,600.00 5.2 Bank(C 7-30-07, continuously thereafter) 5.200% Due 11-06-13 135,000 Federal Home Loan 100.00 135,000.00 98.22 132,595.31 1.2 5.375 7,256.25 5.4 Bank(C 7-30-07, I continuously thereafter) 5.375% Due 11-07-13 125,000 Federal Farm Credit 100.00 125,000.00 97.22 121,523.44 1.1 5.300 6,625.00 5.3 Bank (C 7-30-07 @ 100, continuously thereafter) 5.300% Due 06-22-15 200,000 Federal Farm Credit 99.97 199,938.00 104.69 209,375.00 1.9 6.125 12,250.00 6.1 Bank (NC) 6.127 YTM 6.125% Due 12-29-15 300,000 Federal Home Loan 100.00 300,000.00 99.44 298,333.50 2.8 6.000 18,000.00 6.0 Mortgage Corp. (C 4-28-09 @ 100, quarterly) 6.000% Due 04-28-16 100,000 Fed Nat'l Mortgage 100.00 100,000.00 99.31 99,312.50 0.9 6.000 6,000.00 6.0 Assoc (C 10-24-08 @ 100, quarterly) 6.000% Due 10-24-16 Accrued Interest 41,729.41 0.4 4,137,042.17 4,160,330.62 38.7 221,335.92 5.4 Cash and Equivalents Dividends Accrued 4,388.22 4,388.22 0.0 0.000 0.00 0.0 Money Market 28,872.38 28,872.38 0.3 4.575 1,320.91 4.6 Restricted Cash 53,000.00 53,000.00 0.5 4.575 2,424.75 4.6 86,260.60 86,260.60 0.8 3,745.66 4.3 4 LONGER INVESTMENTS INCORPORATED A Registered Investment Advisor Longer Investments Inc. PORTFOLIO APPRAISAL City of Fayetteville Police Pension Fund June 30, 2007 Unit Total Market Pct. Unit Annual Cur. Quantity Security Cost Cost Price Value Assets Income Income Yield TOTAL PORTFOLIO 9,721,511.44 10,748,071.89 100.0 360,248.40 3.6 5 LONGER INVESTMENTS INCORPORATED A Registered Investment Advisor