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.
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Al Nxk
Approval of the Pens><oji' List: rK
Rev>< 106
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Approval of the ed �ebrua6C2007 Pension art
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Mayor Cood "-.Rt : ` e, e any �apges?
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Sondr� ith: The re N pens' for February 2007 was removing one pensioner that
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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
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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
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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
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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
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posit an a`
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Eldon RobeA There is on one more year of that left.
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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
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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
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Mayor Coody ,: m
a e Denseceas 'e have the obituary in our packet.
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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.
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Mayor Coody: We are wasting time nowTtaxing�about it.
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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.
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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. '
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Mayor Cooper: Excellent the stock market broke 0 Wha s the outlook?
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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
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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
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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
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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
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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.
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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
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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
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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. ,,
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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.
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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.
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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.
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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.
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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.
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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''' `
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Mayor Coody: Just make sure it is printed cle e envC. K ``
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Sondra Smith: Just do an envelope with their return adds Xi it.
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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?
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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;
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(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.
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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