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Home My WebLink About2015-01-22 - Agendas - FinalFayetteville Policeman's Pension and Relief Fund Meeting Date %-',� i S Adjourn Time 3,,30 P;v, P C}fpndapa• Subject: �vl84p.b"` Motion To: G Motion By: ra Wn Seconded: f •fan John Brown Vol Ruston Cole Frank Johnson OAA Mayor Jordan t Eldon Roberts w' Sondra Smith ✓ Melvin Stanley9/ Subject: �vl84p.b"` Motion To: G Motion By: ra Wn Seconded: f •fan John Brown Ruston Cole Frank Johnson Mayor Jordan Eldon Roberts w' Sondra Smith ✓ Melvin Stanley Subject: �vl84p.b"` Motion To: v Motion By: Alvin Seconded: F �On John Brown Ruston Cole Frank Johnson Mayor JordanG Eldon Roberts Sondra Smith Melvin Stanley Subject: Motion To: Motion By: Seconded: John Brown Ruston Cole Frank Johnson Mayor Jordan Eldon Roberts Sondra Smith Melvin Stanley Lioneld Jordan Chairman Sondra E. Smith Treasurer Eldon Roberts Secretary Retired Position 1 Ruston Cole John Brown Melvin Stanley Frank Johnson Policemen's Pension and Relief Fund Board of Trustees Meeting Agenda January 22, 2015 Page 1 of 1 Retired Position 2 Retired Position 3 Retired Position 4 Retired Position 5 A meeting of the Fayetteville Policemen's Pension and Relief Fund Board of Trustees will be held on January 22, 2015 at 3:00 p.m. in Room 326 of the City Administration Building located at 113 West Mountain Street, Fayetteville, Arkansas. Roll Call Approval of the Minutes: • Approval of the October 16, 2014 meeting minutes Pension List Changes: • Rosemary Mueller deceased November 16, 2014 • Betty Stout deceased December 30, 2014 Approval of the Pension List: • Re -approval of the December, 2014 and January 2015 pension list • Approval of the February, March and April pension lists Unfinished Business: • None New Business: • Act 979 estimated additional allocation of premium for 2015 • Election of Pension Board for 2015 Garrison Financial: • 4ti Quarter reports Informational: • Longer View January 7, 2015 • 2015 Meeting calendar Lioneld Jordan Chairman Sondra E. Smith Treasurer Eldon Roberts Secretary Retired Position 1 Policemen's Pension & Relief Fund Board of Trustees Meeting Minutes October 16, 2014 Page 1 of 17 Ruston Cole Retired Position 2 John Brown Retired Position 3 Melvin Stanley Retired Position 4 Frank Johnson Retired Position 5 Policemen's Pension and Relief Fund Board of Trustees Meeting Minutes October 16, 2014 A meeting of the Fayetteville Policemen's Pension and Relief Fund Board of Trustees was held on October 16, 2014 at 3:00 p.m. in Room 326 of the City Administration Building located at 113 West Mountain Street, Fayetteville, Arkansas. Mayor Jordan called the meeting to order. PRESENT: Mayor Jordan, Frank Johnson, Ruston Cole, John Brown, Melvin Stanley, Sondra Smith, City Clerk, Dee McCoy, City Clerk office, Kit Williams, City Attorney, Trish Leach, Accounting, Kerry Bradley, James Bell, and Glenn Atkins, Garrison Financial ABSENT: Eldon Roberts Sondra Smith: Mayor, we have a new board member, Ruston Cole. This is his first meeting to attend. Kit Williams: Welcome aboard. Ruston Cole: Thank you. Mayor Jordan: Welcome. Approval of the Minutes: Approval of the April 17, 2014 meeting minutes Approval of the May 29, 2014 special meeting minutes Mayor Jordan: Has everyone had a chance to look those over? Do you want to do them one at a time or both at once? Sondra Smith: You can do them both at once if you'd like. Frank Johnson: I strongly encourage everyone to read April 17a', it was very interesting dialogue. Policemen's Pension & Relief Fund Board of Trustees Meeting Minutes October 16, 2014 Page 2 of 17 John Brown moved to approve the April 17, 2014 and May 29, 2014 meeting minutes. Frank Johnson seconded the motion. The motion passed with a 6-0 vote. Eldon Roberts was absent. Pension List Changes: None Approval of the Pension List: Approval of the November and December 2014 pension lists Approval of the January 2015 pension list Sondra Smith: There are no changes to the pension list. If something changes we will bring them back for re -approval. Frank Johnson moved to approve the November and December 2014, and January 2015 pension lists. Melvin Stanley seconded the motion. The motion passed with a 6-0 vote. Eldon Roberts was absent. Unfinished Business: None New Business: Revenue & Expense Report: 3rd Quarter — September 30, 2014 report Sondra Smith: That is the report accounting does for us. It is a history of the revenue and expenses over the past few months. There's no approval needed. Frank Johnson: It's interesting if you put it in a graph. I would appreciate a digital copy of it so I can play with it. I will share with you guys. The graphic illustrations are sombering but it's a better perspective of where our balances are. 2013 Actuarial Valuation Sondra Smith: The actuarial report is through the end of 2013. One thing that you may want to take note in is your unfunded liability on page ten which currently is $13,381,097. You are only 34% funded. One good about that, is it has only dropped .1% since last year. It's still a large unfunded liability. Trish sends the information down to the actuaries then they do the report. Frank Johnson: Is this report shared with the Council? Mayor Jordan: I don't have an answer for that. I don't believe it is. Policemen's Pension & Relief Fund Board of Trustees Meeting Minutes October 16, 2014 Page 3 of 17 Kit Williams: They pull numbers out of this report and provide it to the Mayor for the annual report to the City Council but this whole report does not go to them. Frank Johnson: So the only insight they have about this comes during your annual report? Sondra Smith: Yes, in January. Kit Williams: Of course we did have that joint meeting at one point with the City Council and the Firefighters and the Fire Pension when Jody Carreiro came here. Sondra Smith: We can send it to them if you so choose. Kit Williams: It's too long to be effective. It would be better to have the Mayor's report which is shorter but has the most important stuff in it. Trish Leach: There is also a summary of some of this information in the Comprehensive Annual Financial Report for the City. Kit Williams: When the Mayor actually gives them a report during a regular City Council meeting, that's when they understand. For years they've understood that your actuarial report says that you're not financially sound at this point in time. Mayor Jordan: They are familiar with that. Frank Johnson: I was just asking as a matter of their awareness. Kit Williams: I don't know how much they are aware. I think that the Mayor gives how much the unfunded liability is. Mayor Jordan: I can tell you in my report in January I told them how serious the situation was. It was not exactly what you would call a stimulating report. Sondra Smith: We always put a copy of that report in the packet. At the January meeting there should be a copy of the report. Mayor Jordan: Is everybody good? If you want to look it over and talk some more about it, I'm fine with that. Frank Johnson: I think it's a matter of due diligence, for the record, that we should have discussion about it. I would say, just looking at the cover letter, that we are all familiar with our response is no on whether or not we meet the necessary reporter contribution. Is the funded percentage at least 97%? I'm not sure what kind of discussion we can have other than just acknowledging the condition. Kit Williams: I'll say it's been a number of years that it has been no under all those questions. It was a long time ago when it was yes. Sondra Smith: You can see on the unfunded liability page that back in 1997 you were 102.9% funded. Where there's a little asterisk beside the year that means a benefit increase or something Policemen's Pension & Relief Fund Board of Trustees Meeting Minutes October 16, 2014 Page 4 of 17 happened to you plan. Most of the time the asterisk means it was a benefit increase. Every time a benefit increase was done the plan continued to drop. You can look at 1997, you are 102.9% funded and then you go to 68%, 71%, 59% and then you just continue to deteriorate. Frank Johnson: I certainly understand that relative to the changes in the benefits and the number of beneficiaries and the addition to the spouse and the survivor's benefits. It was 2008 when we took the big hit in the market. Kit Williams: We've come back from that, the market has any way. Frank Johnson: With that being said, with the exception of Melvin, you're looking at some of the youngest survivors on that plan. As far as I'm concerned if there's just a dollar left in it when whoever takes the last breath that is fine with me. Then there's the matter of j ust keeping it solvent. I don't know that there's any other discussion. What was the percentage increase in 1997? Kit Williams: I think that might have been the cost of living one that you all did where it was 3% for five years. If I'm not mistaken you did a cost of living increase. Melvin Stanley: That didn't start until 2003. Kit Williams: 2003? I don't know what you did in 2007 then. Kit Williams: That might have been one of the assumption changes. They changed the amount of money you were supposed to make on your funds up and then they adjusted it back down. Right before the market failed they said you're going to make a lot more money. Sondra Smith: In 1997 it didn't go into effect until early 1998, your percentage went up. It says "request to increase the benefit amount of present and future retirees to the highest of either 60% of salary or 55% of salary for 20 years of service." That was done, it looks like, in 1998. Before that, you were probably at 50%. That might have been the first benefit increase. In 1999, you requested for current and future retirees to go to 100% of salary but did not want to include the spouses. That was approved but they said you couldn't go to 100% I think PRB approved 90%. Then there was a resolution to merge with LOPFI in 2003, but that never went to the Council. There was another resolution to add the COLA, in 2003. We did the five year, temporary, 3% COLA it looks like. In 2005, you wanted to make that COLA permanent but we couldn't. So, that did not get approved. Then we wanted to go to 95% of base, but that didn't get approved then. In 2006, the survivors' benefits came forward again and that was approved to go from 50% to 90% for survivors. Melvin Stanley: That was when? Sondra Smith: In 2006 according to my spreadsheet if I've got it all tracked properly. . Frank Johnson: Help me understand what the marked decrease in the 5% is contributed too from 1999 when it was at a high and then almost the following year. There's just something in there that I'm not really sure about. From 1999 to 2001, that marked decrease in the funded percent. Sondra Smith: Because that's when you did that benefit increase. Policemen's Pension & Relief Fund Board of Trustees Meeting Minutes October 16, 2014 Page 5 of 17 Frank Johnson: To 90%? Sondra Smith: Effective date was August 1, 1999 request increase current and future retirees the base amount to 100%, but it didn't pass. PRB approved, it looks like, 90%. Frank Johnson: Previous to that it was what? Melvin Stanley: 65%. Sondra Smith: Previous to that it looks like it was maybe 60%. It says PRB approved 55% or 60%. In 1998 I wasn't here and I could not find a resolution the board passed on which percentage they went with. I'm assuming they went with 60%. Amount. That was in 1998 from what I found. In 1999 it looks like there may have been another benefit increase requested. You all wanted 100% but it looks like PRB approved 90%. I'll have to research that some more. The last big increase was in 1999 and that's where you see your plan drop drastically. Frank Johnson: I was just curious about that with the number of beneficiaries and a 25% increase, something just doesn't reconcile there. Trish Leach: You have to remember the way they base this off of this report we do for them every year. Even though people weren't drawing at the time, they would've been listed on the report as potential retirees. To me, that sort of makes sense if you think about it that even though the increase went into effect in August, at the end of the year looking forward they would take everything into consideration that was coming and say everyone is going to be drawing 90%, but not the surviving spouses. Sondra Smith: It looks like the next increase was in 2003 and that was the COLA. Kit Williams: If I remember, that's the last increase that was allowed. Sondra Smith: No, the survivors was the last increase. Kit Williams: That was after the COLA? Sondra Smith: Yes, it was in 2006 from what I've got. Kit Williams: That was a pretty substantial increase too. Frank Johnson: This is an actuarial report, this is not like the finance report that's all the cash flow basis. Sondra Smith: And that's the other thing, at the time that you did some of those benefit increases you would not have qualified for the increases on the actuarial soundness basis. The only way you qualified is because you requested the increase on a cash flow basis. That was my understanding, some of it was done when I wasn't clerk. I have been going back through records and trying to recreate what I found. I can get with Trish and make sure that the dates are pretty much the same. I know those dates are approximate, but they're real close. Policemen's Pension & Relief Fund Board of Trustees Meeting Minutes October 16, 2014 Page 6 of 17 Frank Johnson: On page four, that contribution from employer, is that all from the millage? Trish Leach: And everything else that you collect, everything is reported. The report we send them beaks everything down into all the categories very similar to what we do on the full summary we put together. PRB has their way that we report to them and then they accumulate this. Kit Williams: The millage prior was the vast majority of this almost $800,000. Trish Leach: Yes. Frank Johnson: The necessary employer contributions, what does that number represent? Trish Leach: That's what the actuary calculated that needed to be put in the fund. Kit Williams: It says enough to pay off the unfunded actuarial liability over a five year period. Sondra Smith: So if the City were responsible, they would have to put in $3 million a year for the next five years to get you funded again. Frank Johnson: So when they calculate the unfunded liability, what was it again? Sondra Smith: That was on page ten. At the end of 2013 it was $13,381,097. You are only 34% funded, according to this report. 2014 turn back Sondra Smith: Trish is very good about doing an excel spreadsheet to show you over the past few years what that turn back money has been and what it is at this time. If you'll notice in 2014 for the plan itself we got $152,519 and the future benefit was $44,280 and the police supplement was $24,600. PRB tell us how we have to disperse that. The letter said that we have to give $1,080 per pensioner and that comes to the $44,280. The people drawing with a qualified domestic relation orders do not get that. Then you get that extra $50 a month for the police supplement, too. Currently they do a first round of money which was $120,410. Because of some funds being really low on their funded liability, they go ahead and do a second round. On the second round we received an additional $32,109. The two of those are added together to come up with your $152,519. They just started that second round about three or four years ago. We qualified for it every year since they started it. There's a copy of the checks and the letter and how we have to disperse that attached to the agenda. Instead of doing separate checks, accounting is adding that to the one monthly check now so that we can get it out quicker. Frank Johnson: So this money never really makes it into our investment portfolio. Sondra Smith: What goes into your investment portfolio, and Trish can correct me if I'm incorrect, is the $152,000. That goes back into your plan. The $44,000 is what went out at $1,080 per pensioner. The other goes out at $50 a month. Policemen's Pension & Relief Fund Board of Trustees Meeting Minutes October 16, 2014 Page 7 of 17 Mayor Jordan: So that $152,000 goes toward $3 million? Sondra Smith: Back in the plan. And that's the reason if we get that in July Trish doesn't have to ask for a draw in August because she has that money to go ahead and pay the pension fund. Mayor Jordan: That's split off into monthly checks for everybody? Pension Review Board (PRB) "Evaluating Investments" memo Sondra Smith: That is a letter that we receive every year and they want you to look at your investments to make sure that you are investing properly. I can give Kerry and them a copy of the packet and they can look at that, but usually we are investing according to how PRB thinks we should be investing. There's really no action that we have to do on that except for look at it and make sure you're reading where it says how much liquid, performance, index. Frank Johnson: Kit what is this? Is this a due diligence thing they are doing? Kit Williams: Are you talking about this PRB thing? Frank Johnson: Yes. We are aware of what the statutory restrictions are. Kit Williams: We disagree on that. But yes, they are trying to cover themselves and make sure that every plan that has got some financial problems is aware of it. They figure, by sending this they'll certainly alert them if they aren't alerted by the fact the actuarial report says they are in trouble. Frank Johnson: Is there an expectation for a response, Sondra? Sondra Smith: No. It says "This memo is neither a complete checklist nor a legal opinion. It should be used as a guide to assist local boards with regular review of the investment program." Kit Williams: The fire plan is in such bad shape that they've actually sent a letter that wants a reply. So we have replied a couple of years to them for the fire pension plan. Sondra Smith: We had to send a letter early this year because we were an at -risk plan. They will probably send us another letter in January wanting a response. Kit Williams: The fire pension is at -risk. Sondra Smith: They sent one to the police too. Fire is insolvent, we are just at risk. So they will probably send us another letter in January like we had to answer the last time. I'll bring that before the board and this time we will write the letter at the board meeting to make sure we get it correct. Frank Johnson: Feel free to just copy and paste unless Garrison does something in the next three months that's miraculous. Policemen's Pension & Relief Fund Board of Trustees Meeting Minutes October 16, 2014 Page 8 of 17 Sondra Smith: We'll just pull up the one we sent before and then just go through it and make any changes that y'all want to make to it. Frank Johnson: Sounds good to me. Sondra Smith: That will probably be January or April. Discuss rescheduling the January 15, 2015 Policemen's Pension meeting Sondra Smith: The meeting in January is scheduled for January the 150' that is the week of Arkansas Municipal League. I was wondering if we could go ahead and reschedule that meeting. You may not have a quorum. A discussion followed on rescheduling the January, 2015 meeting. Frank Johnson: There may be some outcomes from the Municipal League that would be related to our business. Mayor Jordan: There probably will be, Frank. Sondra Smith: They'll go over law updates, or all of the proposed things that are going to the legislators. Frank Johnson: It would be good if we could include whatever outcomes of that meeting. Sondra Smith: I'll go ahead and book this room for January 22 ml at 3:00. Garrison Financial: Kerry Watkins email regarding transfer complete Kerry Watkins "Cost Basis" letter 01 Quarter reports Kerry Bradley: Thanks for letting us help you with the investments. We are excited to work with you. We brought the whole gang today. In future meetings you might see us interchangeable but we wanted to make sure you could put a face with all of our names. James Bell, Glenn Atkins, and my name is Kerry Bradley. This is the investment team down at Garrison, so you're looking at it. Again, in future meetings we may rotate a little. Sondra include some of the information about when we were transferring it from Northern Trust to Schwab since that's where we custody most of our assets. That went very smoothly. I think it actually hit our system June 30. We got a quarter under our belt and we were able to send you a quarterly report a couple of weeks ago. I read through the minutes of the May meeting the other day and I just wanted to point out that there were some questions about policy statement and fees. I just wanted to clarify that for you guys. We did execute a new policy statement on the account. We didn't really have a problem with Elaine's. I don't know if you guys recall, we spoke about, Policemen's Pension & Relief Fund Board of Trustees Meeting Minutes October 16, 2014 Page 9 of 17 she had a maximum and a minimum range for equity. The way we typically do it, we'll have a stated goal for our equity exposure and then a range around that. For instance, we have a 60% equity policy with a 10% variance around that. Elaine's, for instance, was 50% to 35%. We did execute a new policy statement, it's very similar. Elaine had a category entitled other, which we typically don't do. I think most of her other category was equity but it was kind of income producing equity, utilities and such. We kind of lump all that into equity exposure on our side. Again, it's very similar, it's just worded a little differently. So we did execute that, I think the Mayor signed that. There was a question about the fees, I will say our fee is a 50 basis points across the board. Elaine Longer had a tiered fee structure. For instance, if you'll see in our quarterly report the fee for the quarter was $8,961. That compares to $15,058 for the second quarter. We were able to shave a good bit off of that management fee for you guys. You guys were paying a Northern Trust fee of about $300 a month, that's gone away. That's one of the reasons we use Schwab, it doesn't cost our clients anything. They don't charge you anything to custody the assets there like Northern Trust does. The quarterly report is in your packet there. Again, we started and hit the gate running July 1St. We have done some restricting of the portfolio. We are very close to target. Our reports are a little different then what Elaine would typically send. If you want to see something else that we're not including or that you're used to seeing from Longer, we're happy to produce that for you. Just let us know. Our policy is 60% equity, 40% fixed income. We are right at the 59.6% target at the end of September. It was a little overweight equity when we got it so we reduced some exposure there. We are setting out a little cash. Most of that will go back into fixed income, unless the markets continue to sell off like their doing then we'll probably put a little bit back into the equity market. I did give you an updated portfolio as of the 15th. I don't know how closely you guys watch the market but it's been quite volatile the last three weeks. We've had some pretty interesting days. The portfolio is down just a little since quarter end, but it's nothing that we're massively concerned about. The letter that we send with the quarterly that is kind of a stock letter that we send to all clients. It doesn't necessarily completely apply to your portfolio since we haven't quite got it all restructured from the way Longer had it invested. I will say, just in the market in general, we had gone three years without a 10% correction in the equity market. We got that intraday yesterday. I think we hit that mark and recovered a little bit. For right now I think this is a healthy correction in the equity market. The U.S. is still growing, albeit slowly, and I think we'll see that for several more years. The equity market got spooked because of some concerns in Europe and growth over there slowing. Unless that slows markedly, I'm not of the mind that it's going to suck us into recession in the next few quarters. We are right on target. We still have some restructuring to do in the portfolio out of some funds that Longer had you in into some individual securities. We are getting close to some of those opportunities with some of those stocks we like with the sell-off that's happened. Performance in the portfolio, unfortunately, was actually down for the quarter. We had about 86 basis points. That was from the stock side. Longer had you quite heavy in energy stocks and that's really what took a beating this quarter. We lightened up a little bit back in July, didn't lighten up quite enough, so that's really what's dragging this portfolio down right now. It's nothing long term I'm too concerned about. There were a few drillers, deep sea drillers, in your portfolio. Those have gotten decimated the last few weeks with the price of oil dropping so rapidly. We've had a little Policemen's Pension & Relief Fund Board of Trustees Meeting Minutes October 16, 2014 Page 10 of 17 bounce back in those today. We'll probably be pairing some of that back if we can get a little correction. It's starting to stabilize the last few days, the oil sector. I think we'll get an opportunity to rotate out of those. Hopefully we'll get a little bounce. We still have a lot of work to do on the portfolio. We'll do that over the next three or four months. I expect this to look much more like our typical portfolio towards the end of the year versus right now. Glenn is our fixed income manager so he can speak to the fixed income in your portfolio. And then y' all ask us any questions that you have. Glenn Atkins: Thank you, Kerry. I would just like to echo what Kerry said, thank you for trusting us with your business. We take it very seriously. We're grateful for your trust and confidence and we're happy to be here. We have begun to restructure the fixed income side of the portfolio as well. Basically what that means is selling some of the mutual funds and unit trust and reinvesting the proceeds into individual securities. We sold about half of the position of the iBoxx Corporate Bond Fund that's called the liquid, the LQD. We invested a portion of that in some investment grade fixed income bonds. There are two truths in the bond market. The first one is, as interest rates rise the prices of bonds fall. The second truth is that the longer your bond maturity, the faster the price falls when rates rise. The average maturity on that iBoxx liquid corporate fund is about 7.8 years. Our expectation of rising interest rates over the next 18-36 months, that's too long. That is too long of a maturity to be in, in our opinion. The index that we measure ourselves against on a fixed income side is the Barclays Intermediate Government Credit. The average maturity on that index is about three years. Your.portfolio overall right now has an average maturity of 4.25 years. We're a couple, three, six months longer than the index, which I think is very well positioned. We've got some short term treasuries, some intermediate corporate bonds that we like. We've still got half of the position in the iBoxx Corporate Grade Fund. Eventually we will come out of that fund because of the long maturity and invest it in investment grade corporates that more closely match the maturity of the index. We have begun that process and you will see more of that over time. Not only does it get the portfolio structured like it needs to be, it takes a level of fees out as well because there is a fee charged on the unit trust. What I would like to do now is walk you guys through a scenario in your portfolio that we are likely to do. On the surface of it, it doesn't make any sense. I want to make sure that we talk about it, have a discussion and kind of understand it. What I would like to do is point you to the very first Treasury note that is held in your portfolio and quarterly report. That particular Treasury note is $150,000.00 in par amount, it has a coupon of 5 1/8%, which sounds really good on the surface. It matures May 15, 2016, so roughly eighteen months from now. The 5 1/8% coupon sounds really good but if you look to the far right hand side of that page under the column labeled yield, that bond is only actually yielding .4%. What's going to happen between now and maturity, the market value on that bond at the end of September was $161,384. In the next eighteen months when that matures you're going to lose $11,384 because you're only going to get back $150,000. Even though the coupon is very high, the actual yield or the actual return that you're earning on that investment is only .4%. If you just look at the coupon, it looks really great. But if you look at the underlying yield, it's not so great of an investment. What you're likely to see us do is to sell those types of investments and reinvest them into this corporate bond sector where you look down there and the yields are anywhere from 1.5 to 2.5 depending on the maturity. That is very confusing, so I just want to pause and let's talk about this and take some questions, comments or thoughts. On the surface of it, it doesn't look like it makes any sense to sell an investment with a 5% coupon, but in fact you're only actually earning less than .5% on that because you're going to lose the Policemen's Pension & Relief Fund Board of Trustees Meeting Minutes October 16, 2014 Page 11 of 17 difference between $161,384 and $150,000 when the bond matures. Would you rather have a bond that paid 10% interest or 5% interest? You'd rather have the 10%. If you look at alternatives in the market, you have to pay more in dollars to get that 10% bond. That's what's going on here. And because you paid more, your yield is actually considerably less than the 5 1/8%. Kerry Watkins: You didn't really pay more but the market has moved and your market value has increased. We get this questions a lot, why would you sell this at 5 % coupon and buy me something at a 2% coupon? We don't necessarily focus on the coupon, we focus on the yield that we're going to get when we buy back. John Brown: It's the end result that you're looking at. Kerry Bradley: Right. Glenn Atkins: If we were to buy a current market rate bond just like this, the coupon on it would be .4%. The buyer of the bond has to be indifferent to buying the 10% at a high price, or the 5% at a low price. At the end of the day, like you said, John, it's the yield that matters. It's what you actually get. The bond market prices bonds with different coupons to where the buyer is indifferent. So if this bond were to be issued today, the coupon on it would be .4% instead of 5 1/8% and it would trade at 100% instead of 107.5%. Does that make sense? Frank Johnson: It makes sense. The return investment on these bonds are dictated by the interest rates? Glenn Atkins: Yes. Frank Johnson: I guess I'm thinking about the initial investment versus where we're at right now. Kerry Bradley: A lot of people think well your yield on cost is the 5.125% but it's worth $161,000 now if we sell it. If we hold it until maturity, we're only going to get $150,000. The extra income you're going to get from that 5%, a lot of it's going to be wiped out from the $11,000 you're going to lose on the principle. Its yield to maturity. End of the day, how much is in your pocket. Frank Johnson: Nothing is going to change in the next few months, you think? Kerry Bradley: I think we're going to have low interest rates for an extended period. Bullard came out today, and that's kind of why the market rallied. They've tapered their bond purchases and they were supposed to end at the end of this month. He said if weakness persist in Germany and things are getting worse, we're going to keep up those purchases. He was still indicating a move first quarter. The market and all the future information you look at, people are kind of expecting a move from the Fed in September. I'm not real sure if it'll happen then. Frank Johnson: I understand. Glenn Atkins: It's a very delicate balancing act between investing in longer maturities to get more yield but not so long that you really get price declines if rates were to spike. With your portfolio right now having an average maturity, we call it a duration, of about 4.25 years. I think it's Policemen's Pension & Relief Fund Board of Trustees Meeting Minutes October 16, 2014 Page 12 of 17 positioned very well no matter what happens to rates. What we're going to do over time is reduce that exposure to unit trust because the maturity on that thing is almost eight years, and reinvest it in things that look more like the corporate bond section that are in the 4 to 5 year maturity range to get that 2 or 2.5% yield. Either after or in conjunction with that we will begin to sell these low yielding, high coupon things that we've been talking about and reinvesting them at higher yield to maturities, or end of the day kinds of returns. On the surface of it, if you just look at that, it doesn't make any sense at all. That's why we want to talk about it and walk you through it. Melvin Stanley: The same scenario would fit for the farm credit? Glenn Atkins: Yes sir. The coupon is not what we focus on and what you all should focus on. What we should focus on as a team, you and us, is the yield to maturity, the quality of the portfolio and the average maturity of the portfolio. The average maturity of the portfolio right now is positioned as well as it can be. The changes that you're going to see coming forward is selling out of the long unit trust and investing in more intermediate term securities. That way, if we get an interest rate rise in 18 to 36 months we will suffer some price declines but it won't be that bad and we'll be able to reinvest the cash flows and the bonds as they mature at higher rates. On average, we're ideally positioned but you're going to see some shifting of the underlying deck chairs, if you will, to come out of the longer mutual fund, more intermediate, high quality corporate bonds. Kerry Bradley: To speak to the solvency of it a little bit, the actuarial assumption is 5% return. Certainly interest rates are historical lows, the Equity market with the government debt and all kind of things we have going on economically. Over the next 5 to 10 years, if we can eke out 7% in equities, which historically they've given us 10% on the bonds, they've historically given you 5% but we're in the 2%. I think a 5% rate is fine and acceptable and I think in a balanced account you can expect that over the long term, even where you are now. Those actuarial assumptions can move so much based on that return assumption. It's very interesting to see when those move just a little bit. Through June, $537,000 had been withdrawn from the portfolio. With your e-mail to me the other day for the November withdrawals, $200,000 that we have taken from July until November. I'm not sure what December will look like. Trish Leach: We'll get more property tax, so we'll just have to see. Kerry Bradley: If you didn't pull anything else out, you're looking at about $700,000 on a $7 million portfolio. That's a 10% withdrawal rate. When we're doing this for retired folks we like to not invade principal. Obviously this one is designed invade principal at some point. It's hard to time that last dollar you're going to need. Glenn Atkins: That's all we've got formally prepared to talk about. We would love to hear feedback or ideas or suggestions or criticisms or concerns, anything. We like this to be a dialogue. Frank Johnson: So, we're becoming more aggressive now in this? Kerry Bradley: I wouldn't consider it more aggressive. What Longer had on your policy statement was equity. It was maybe just a little more income producing equity. We will keep some of that in the portfolio. There is a lot of utility exposure. That's worked out pretty well this year because rates have dropped. Utility stocks act like bonds most of the time. In the 2008-2009 debacle, they acted just like an equity. They were decimated as well. We peeled off a little of that Policemen's Pension & Relief Fund Board of Trustees Meeting Minutes October 16, 2014 Page 13 of 17 utility exposure because this time last year I wouldn't have thought the ten year would be at 2.20 but it is. Eventually rates will rise and they will normalize. We may have a couple more years of incredibly low but I wouldn't consider it more aggressive. Glenn Atkins: Certainly coming out of that long bond fund and shortening up that is a less aggressive move. Kerry Bradley: As far as total equity exposure you're going to be about the same. Our style is such that we have a good mix. We like dividends. We think that's a good check on management. We know cash flow is coming through. We like dividend paying stocks and you'll see a number of those in there. We keep a good mix of small, mid, large cap dividend producers and some that don't pay dividend. So, I would not consider it more aggressive. Frank Johnson: I don't have any more questions about the report. Kerry Bradley: As far as the letter goes that you're talking about, we fall within all of these perimeters. Our fee is very clear cut. You can see that on the back page. We will give you performance against some benchmarks that I think the board would feel completely appropriate. Liquidity for the firemen, we usually keep 3-4 months of liquidity in it. You've got a little extra liquidity just because we're restructuring now. We like to keep at least a couple months' worth of cash needs in cash for you guys. Kit Williams: Can I ask you about these graphs you brought? Glenn Atkins: I was just going to show you some pictures. The first one is what the ten year treasury yield has done since the beginning of the year. It's gone down slightly, but very volatile. The second picture is what the yield on the ten year treasury has done for the 3`d quarter. Essentially flat through quarter end, but it's down considerably since then. The takeaway from this is there's a lot of volatility in the bond market right now and we have to be very careful when we put assets to work. The last page is what rates have done since the end of the quarter. They've gone down from 247 to a 217. That is a huge upward move in prices in the bond market. It dovetails tells . exactly what is happening in the stock market. Kit Williams: People transferring from stocks to bonds, that's basically what's happening here? Glenn Atkins: They call it flight to quality. I would agree with Kerry, I did not expect the ten year treasury to be as low as it is now. I do think that the consensus is for the Fed to move in September of next year. I think we are positioned as well as we can be for that now and we will continue to keep that position but we'll just rearrange the internals of it and how it looks and try to get some more yield on that shorter stuff that is really not yielding 5%. Frank Johnson: It doesn't sound like you're going to be going back to treasury hunt with this volatility and the Feds able to throttle back and forth like they're doing. Glenn Atkins: The volatility is not just in the treasury. It's in all of the bond market. We like corporates for two reasons. We are research nerds. That's what I've been doing for 27 years, researching corporate bonds. It fits very nicely with our management style. The second reason we Policemen's Pension & Relief Fund Board of Trustees Meeting Minutes October 16, 2014 Page 14 of 17 like corporate bonds is in almost every market scenario they will outperform the other sectors in the fixed income market. Kerry Bradley: Except perhaps in a 2008-2009 event, when it hits the fan everybody wants a U.S. Treasury. Even though we've heard about the demise of the country and the dollar for years now, when the world gets scared it plugs into U.S. Treasuries. Frank Johnson: Well it's nice that you are willing to share your expertise and your background. I remember hearing you say that before, I don't remember where. Glenn Atkins: It was at a big insurance company. I learned how to do corporate bond research on junk bonds which are not investment grade. These are good, high quality companies. That's where our strength is in almost every market scenario corporates will outperform other sectors of the market. That liquid unit trust, that's a corporate bond unit trust. The problem with that is it has a fee and it's almost eight years in average maturity, which we think is too long especially if rates are going to rise. Sondra Smith: We've the Longer Investment ending reports in the packet. Frank Johnson: I have something I wanted to talk to you guys about. I'm going to assume that the beneficiaries voted us into these positions and there's an expectation with that, that we make thoughtful decisions about everything. I still feel like there's a gap in what we communicate. They're not going to want anything this dense. I just talked to a couple of people and they say we are going a good job. I guess if I have a particular question it should be should we at least have an invitation for a quarterly meeting or anything like that? Do we need to talk to them anymore, do you think? Melvin Stanley: Every pensioner knows that they are welcome in our meetings. Frank Johnson: It seems like the only time they pop in is when there's a discussion about choosing benefits. John Brown: If I could say this, Frank, I do make phone calls after these meetings and talk with some of these people. Mainly it's the spouses more than anyone that I touch base with. I'm not certain they follow any of this without someone calling them. I've even suggested a time or two to copy them on an e-mail and they say no we trust what you're doing and appreciate it. I would like to see something. Obviously they're not going to want all the information we acquire here at these meetings, but some sort of brief synopsis about what was discussed in some sort of newsletter or e-mail or something. Most of them might open their mail but I don't know that they have e-mail accounts or anything like that. If we could get some sort of information to them, I think that we owe it to them in some way to at least let them know that we do have their best interest in mind. I've heard so many times what you're doing affects your money as well. I agree, I think it's nice to communicate some of these things with them. Just to hear that information that Garrison is putting out, you would think that would be helpful to them. Ruston Cole: It would reassure them at the very least. Certainly they know or will find out that we switched our investors. I know some of them have e-mail addresses. If there was just a summary just in plain English. I think we would all need to review it. Nobody should go off on a tangent Policemen's Pension & Relief Fund Board of Trustees Meeting Minutes October 16, 2014 Page 15 of 17 and say this is what we did today. It shouldn't take that long. I meant like today, we could put out that this is what was discussed in the meeting. Frank Johnson: How about we maybe consider this starting the next fiscal year. Between now and the next meeting, if you guys are okay with it, we can communicate back and forth on what a draft would look like. Or I'll do a draft and a mockup of what it would look like, both in a hard copy and something we can post on the City. Ruston Cole: The minutes are posted, right? Sondra Smith: The minutes are not because the board chose at one point in time not to post them. We can post them at any point in time. The video is posted. All they have to do is go online and watch the whole meeting. Ruston Cole: If they had the minutes, I think I would be more inclined to read the minutes than to watch me on television to see what was going on. . John Brown: That's basically what the minutes are. Sondra Smith: We pretty much do real close to verbatim minutes. Not total verbatim Ruston Cole: If they have access to the minutes Sondra Smith: They don't right now because the board chose not to put that out on the website. Mayor Jordan: If somebody FOI the minutes from this meeting, a citizen, we would have to turn them over because it's public. It's that open. Frank Johnson: I like Russ' idea. I know how well you write and if the board is okay with it, you and I can work together on what that executive level type summary would be for the beneficiaries to read from our meeting. It could mirror what the agenda is and this is the outcome and give them a link to the City's website. Or make those minutes available to them when they need them. If you guys are alright with that. John Brown: I'm fine. Sondra Smith: The City is devising a new website. It should be up and running sometime early next year. I think it will be a lot more user friendly and may give us a little bit more opportunity to post things than what we can now. Any time the board wants the minutes posted, we can do that. We just have to have authorization because they were pretty adamant that they did not want them posted on the website. I think it's a good idea. It's open and transparent. We would not post them until after they are approved because we don't want to put minutes out there that haven't been approved. Ruston Cole: What were the objections to it being posted? Sondra Smith: I don't remember, it's been so long ago. At one point in time they didn't even want the meetings filmed. Finally we decided we were going to go ahead and film the meetings Policemen's Pension & Relief Fund Board of Trustees Meeting Minutes October 16, 2014 Page 16 of 17 because your plan was in bad shape that we felt like it was beneficial for the people that are drawing on the plan to have that information available to them. John Brown: What we do affects them. They should have a clear understanding of what's going on. Mayor Jordan: Everything I have I just turn over. If they FOI my stuff, I say there you go. Sondra Smith: If anybody ever asks for it, they get it. All they have to do is ask us for it and they get it. Mayor Jordan: Anything we got they can have. Sondra Smith: Whatever y'all want to do on a summary, if you'll get it to us once you get it ready, we can post it on the website or whatever you want us to do. We are going to go through a transition period at the first of the year sometime to where we may be slow getting things posted until we get our training done and get the website up and running again. Frank Johnson: That will give us plenty of time to work up something. I'm sure it will have to be a collaborative effort. Sondra Smith: If that's something you want to put on the next agenda we can. You can't meet without it being a public meeting. You can't just get together and start meeting. Ruston Cole: So, what would we need to do? Sondra Smith: If you want to schedule a meeting to work on that we could schedule a special meeting. Frank Johnson: Just so there's notification. Sondra Smith: So there's notification. That's the only thing and it probably needs to be done in one of our meeting rooms in City Hall just because of the freedom of information act. Ruston Cole: If Frank and I are doing this would we need a shepherd in the room? Sondra Smith: No, just as long as we announce that you will be meeting. Ruston Cole: Just so it would be open. Frank Johnson: Does there have to be an agenda posted? Sondra Smith: Not necessarily. Just that you're having a meeting. Melvin Stanley: Like Eldon and I had to do when we met with Garrison. Frank Johnson: Let's talk about some dates we can do this. Policemen's Pension & Relief Fund Board of Trustees Meeting Minutes October 16, 2014 Page 17 of 17 Sondra Smith: Get us some dates and we'll find you a meeting room. If it's just going to be two or three people we have several small meeting rooms that we can put you in. The meeting may not be filmed but as long as it's on the calendar as an open meeting, then you've met the burden of the law. Adjournment: 4:15 p.m. Taye ARKANSAS Departmental Correspondence TO: Trish Leach Accounting FROM: Sondra E. Smith, City Clerk/Treasurer DATE: November 26, 2014 RE: Rosemary Mueller Death Benefits Policemen's Pension City Clerk Division City of Fayetteville, Arkansas Sondra E. Smith, City Clerk/Treasurer Lisa Branson, Deputy City Clerk I am forwarding this memo to you so that you may pay death benefits to the above retired police officer's estate. Ms. Mueller was a member of the old pension plan. After speaking with Eldon Roberts, who serves on the Policemen's Pension & Relief Fund Board of Trustees, it has been determined that the following payment should be made: 1. Pay to the estate of Rosemary Mueller a sum of $200.00 for death benefits. Death benefits are only paid to the retired Police Pensioner's estate upon their death. When a widow/widower of a Police Pensioner deceases their estate does not receive death benefits. OFFICE OF THE CITY CLERK TREASURER Sondra E. Smith — City Clerk Treasurer Lisa Branson —Deputy City Clerk December 1, 2014 Family of Rosemary Mueller PO Box 324 Fayetteville, AR 72703-0324 113 W. Mountain Street, Suite 308 Fayetteville, AR 72701 RE: Policemen's Pension & Relief Fund Dear Mueller Family, Phone 479.575.8323 cityderk@fayetteville-ar.gov I am very sorry to hear about the loss of your family member. The pension benefit Ms. Mueller was receiving will no longer be available as of December 1, 2014. We do not prorate benefits during the month the pensioner became deceased. Please send a copy of Ms. Mueller's death certificate to: City of Fayetteville, City Clerk, 113 West Mountain, Fayetteville, AR 72701. If you have any questions you may contact the City Clerk office at (479) 575-8323. I will keep you in my thoughts and prayers during this difficult time. Sincerely, J�yaydc. z 7� Sondra E. Smith City Clerk Treasurer Treasurer Policemen's Pension and Relief Fund Board of Trustees Rosemary Mueller JOHNSON — Rosemary Muel- ler, age 74, of Johnson, Ark., passed away Sunday, Nov. 16, 2014. She was born Oct. 25, 1940, in Fayetteville to R.H. Dick and Mable Catherine Mueller. She was a dispatcher for the Washington County Sheriff's Department. She later joined the Fayetteville Police Department where she retired after 17 years of service. After her retirement ,J Mahe spent her time caring for =dogs -and cats at the Animal "Medical Clinic and All Cats r`Clinic in Fayetteville until she had to leave due to health problems. She was preceded in death by her parents, one :.uncle, Paul John Mueller and. mRe brother, former West Fork 1?olice Chie$ Paul H. Mueller. She is survived by her _r ther, Richard Mueller and hwife Betty of Johnson, rli; one sister-in-law, Mynah Mueller of Farmington; one fece, Paula Mueller and one E,z hew, 3nep, Jw. Mueller both of Farmington; three stepnieces ut1 four stepnephews. visitation will be 4 p.m. - 6 p m Tuesday, Nov 18, 2014, at Moore's Chapel. Funeral service will be 2 p.m Wednes- day at Moore's Chapel with burial to follow at Fairview Memorial Gardens in Fayette- Ville; Memorial contributions may be made to: Circle of Life Hospice, 901 Jones Road, Springdale, AR 72762; Wounded Warrior Project, P.O. Box 758517, Topeka, KS 66675 or any local animal 'shelter. To place an online tribute, visit wwwmoores sfuneralchapel.com OFFICE OF THE CITY CLERK TREASURER Sondra E. Smith — City Clerk Treasurer Lisa Branson — Deputy City Clerk January 5, 2015 Family of Betty Jean Stout 2758 N. Ashbrook Dr. Fayetteville, AR 72703 113 W. Mountain Street, Suite 308 Fayetteville, AR 72701 RE: Policemen's Pension & Relief Fund Dear Stout Family, Phone 479.575.8323 cityclerk@fayetteville-ar.gov I am very sorry to hear about the loss of your mother. The pension benefit Ms. Stout was receiving will no longer be available beginning January, 2015. We do not prorate benefits during the month the pensioner deceased. Please send a copy of Ms. Stout's death certificate to: City of Fayetteville, City Clerk, 113 West Mountain, Fayetteville, AR 72701. If you have any questions you may contact the City Clerk office at 575-8323. I will keep you in my thoughts and prayers during this difficult time. Sincerely, Sondra E. Smith City Clerk Treasurer Treasurer Policemen's Pension and Relief Fund Board of Trustees OFFICE OF THE CITY CLERK TREASURER Sondra E. Smith — City Clerk Treasurer Lisa Branson — Deputy City Clerk 113 W. Mountain Street, Suite 308 Fayetteville, AR 72701 TO: Trish Leach, Accounting Summer Fallen, Accounting FROM: Sondra E. Smith, City Clerk/Treasurer DATE: January 5, 2015 RE: Betty Stout Policemen's Pension Phone 479.575.8323 cityclerk@fayetteville-ar.gov I am forwarding this memo to you due to the death of a Police Pensioner spouse. Please stop the pension benefit for Ms. Betty Stout. She was receiving benefits due to being on the old Police Pension plan. Ms. Stout deceased December 30, 2014 therefore no benefits should be paid beginning January, 2015. Police Pension death benefits are only paid to the retired Police Pensioner's estate upon their death. When a widow or widower of a Police Pensioner deceases their estate does not receive death benefits therefore no death benefit check should be issued to the Stout estate. Attached is a copy of the obituary. When the death certificate is received a copy will be forwarded to Accounting. We POLICE PENSION FUND 12 12 12 12 12-/J�rQ.V (1,r Dec 2014 REVISED 6800-9800 5800-9800 Month 12 Regular Mo 5335-00 5335-05 Check 12 - EMP# NAME Benefit YTD Reg Benefit Suppl. YTD Suppl. Future Supple Fed Tax Sl Tax Net 154 ALLEN, CHARLES $ 2,584.64 $ 31.015.68 $ 50.00 $ 600.00 $ 220.00 $ 66.89 $ 2,347.75 206 BAYLES, BOBBI J $ 1.587.41 $ 19,048.92 $ 50.00 $ 600.00 $ 1.637.41 216 BLACK, MILDRED $ 1,125.64 $ 13,507.68 $ 50.00 $ 600.00 $ 150.00 $ 20.00 $ 1,005.64 147 BRADLEY, GERALD $ 4,820.D9 $ 57,841.08 $ 50.00 $ 600.00 $ 1,200.00 $ 400.00 $ 3,270.09 139 BRADLEY, RANDALL $ 2,860.17 $ 34,322.04 $ 50.00 $ 600.00 $ 432.00 $ 100.00 $ 2,378.17 167 BROWN, JOHN $ 4,362.01 $ 52,344.12 $ 50.00 $ 600.00 $ 60D.00 $ 200.00 $ 3,612.01 157 CARROLL,RONALD L $ 2,106.04 $ 25,272.48 $ 50.00 $ 600.00 $ 250.00 $ 105.00 $ 1,801.04 151 COLE, RUSTON $ 3,065.74 $ 36,788.88 $ 50.00 $ 600.00 $ 600.00 $ 200.00 $ 2,315.74 160 DUGGER,GARY $ 3,163.74 $ 37,964.88 $ 50.00 $ 600.00 $ 300.00 $ 120.00 $ 2,793.74 140 FOSTER, BILLY D. $ 3,207.35 $ 38,488.20 $ 50.00 $ 600.00 $ 300.00 $ 120.00 $ 2,837.35 148 FRIEND, JERRY $ 1,970.42 $ 23,645.04 $ 50.00 $ 600.00 $ 190.00 $ 260.00 $ 1,570.42 161 HANNA. JANICE $ 1,368.59 $ 16,423.08 $ - $ - $ 100.00 $ 25.00 $ 1,243.59 145 HANNA, MARK $ 1,368.59 $ 16,423.08 $ 50.00 $ 600.00 $ 100.00 $ 50.00 $ 1,268.59 169 HELDER,TIM $ 5,838.12 $ 70,057.44 $ 50.00 $ 600.00 $ 750.00 $ 250.00 $ 4,886.12 180 HOYT, RICK $ 7,460.01 $ 89,520.12 $ 50.00 $ 600.00 $ 1.600.00 $ 425.00 $ 5,485.01 180 HOYT, RICK Plus 25 add pay $ 272.01 $ 1,449.45 $ 272.01 146 HUTCHENS, BERNICE $ 1.825.54 $ 21,906.48 $ 50.00 $ 600.00 $ 130.00 $ 1,745.54 194 JOHNSON, FRANK $ 7,974.81 $ 95,697.72 $ 50.00 $ 600.00 $ 1,600.00 $ 500.00 $ 5,924.81 215 JOHNSON, JOYCE $ 2,455.50 $ 29,466.00 $ 50.00 $ 600.00 $ 400.00 $ 42.67 $ 2,062.83 103 JOHNSON, WENDELL $ 783.15 $ 9,397.80 $ 50.00 $ 600.00 $ 833.15 118 JONES, BOB $ 3,300.45 $ 39,605.40 $ 50.00 $ 600.00 $ - $ 3,350.45 211 JONES, MICHELE $ 1,182.26 $ 14,187.12 $ 300.00 $ 10D.00 $ 782.26 144 KILGORE, DONALD $ 2,046.48 $ 24,557.76 $ 50.00 $ 600.00 $ 19.72 $ 2,076.76 218 MARTIN, CONNIE $ 3,692.85 $ 44,314.20 $ 50.00 $ 50.00 $ 640.00 $ - $ 3,102.85 128 MCCAWLEY, LARRY $ 1,694.79 $ 20,337.48 $ 50.00 $ 600.00 $ 195.00 $ 50.00 $ 1,499.79 136 MITCHELL, MICHAEL $ 2,305.29 $ 27,663.48 $ 50.00 $ 600.00 $ 400.00 $ 10.00 $ 1,945.29 141 MUELLER, ROSEMARY Deceased 11/16/14 $ 22,703.23 $ 50.00 $ 600.00 $ 50.00 158 MUNSON,ANGELA $ 4,198.15 $ 50,377.80 $ 50.00 $ 600.00 $ 600.00 $ - $ 3,648.15 112 MURPHY, JAKE $ 405.75 $ 4,859.00 $ 50.00 $ 600.00 $ - $ 455.75 137 PERDUE. LARRY $ 2,322.67 $ 27,872.04 $ 50.00 $ 600.00 $ 300.00 $ 50.00 $ 2,022.67 164 PERSHALL, ROBIN $ 1,525.07 $ 18,300.84 $ - $ - $ 190.00 $ 67.00 $ 1,268.07 132 PHILLIPS, HOMER GENE $ 1,754.44 $ 21,053.28 $ 50.00 $ 600.00 $ 300.00 $ 1,504.44 199 PRESTON, NORMAJ $ 1,601.37 $ 19,216.44 $ 50.00 $ 600.00 $ 200.00 $ 100.00 $ 1.351.37 135 RICKMAN, LOREN $ 2,231.07 $ 26,772.84 $ 50.00 $ 600.00 $ 230.00 $ 65.00 $ 1,986.07 214 RIGGINS, BONNIE $ 1,669.37 $ 20,032.44 $ 50.00 $ 600.00 $ 125.00 $ 25.00 $ 1,569.37 183 ROBERTS. ELDON $ 4,263.24 $ 51,158.88 $ 50.00 $ 600.00 $ 600.00 $ 200.33 $ 3,512.91 183 ROBERTS, ELDON Plus 25 add pay $ 587.09 $ 7,045.08 $ - $ - $ 587.09 212 ROBERTS, CAROLYN K $ 3,216.13 $ 38,593.56 $ - $ 483.00 $ 115.00 $ 2,618.13 212 ROBERTS, CAROLYN K Plus 25 add pay $ 442.89 $ 5,314.68 $ - $ 442.89 159 SCHUSTER,JOHN H. $ 3,117.36 $ 37,408.32 $ 50.00 $ 600.00 $ 450.00 $ 160.00 $ 2,557.36 168 STANLEY, MELVIN $ 4,880.07 $ 58,560.84 $ 50.00 $ 600.00 $ 600.00 $ 300.00 $ 4,030.07 155 STOUT, BETTY $ 866.51 $ 10,398.12 $ 50.00 $ 600.00 $ - $ 916.51 133 SURLES, JERRY $ 2,721.40 $ 32,656.80 $ 50.00 $ 600.00 $ 600.00 $ 200.00 $ 1,971.40 142 TAYLOR, DENNIS $ 2,063.93 $ 24,767.16 $ 50.00 $ 600.00 $ 110.00 $ - $ 2,003.93 163 WATSON, RICHARD $ 6,947.05 $ 83,364.60 $ 50.00 $ 600.00 $ 1,950.00 $ 425.00 $ 4,622.05 163 Watson, Richard Plus 25 Add'I Pay $ 948.76 $ 11,385.12 $ - $ - $ 948.76 149 WILLIAMS, JOYCE $ 2,539.66 $ 30,475.92 $ 50.00 $ 600.00 $ 217.07 $ 2,372.59 195 WITT. BETTY J $ 1,766.83 $ 21,201.96 $ 50.OD $ 600.00 $ 115.00 $ 64.00 $ 1,637.83 213 WOOD, RUTHIE $ 1,580.93 $ 18,971.16 $ 50.00 $ 600.00 $ 1.630.93 $ 126,071.43 $ 1,533,745.72 $2,050.00 $ 24,050.00 $ - $ 17,527.07 $4,835.61 $ 105,758.75 $ 105,758.75 POLICE PENSION FUND 1 1 1 1 1 Jan 2015 REVISED 6800-9800 6600-9800 Month 1 Regular Mo 5335-00 5335-05OpJ-Q� 1 EMP# NAME Benefit YTD Reg Benefit Suppl. YTD Suppl. Future Supple 154 ALLEN, CHARLES $ 2,584.64 $ 2,584.64 $ 50.00 $ 50.00 206 BAYLES, BOBBI J $ 1,587.41 $ 1,587.41 $ 50.00 $ 50.00 216 BLACK, MILDRED $ 1,125.64 $ 1,125.64 $ 50.00 $ 50.00 147 BRADLEY, GERALD $ 4,820.09 $ 4,820.09 $ 50.00 $ 50.00 139 BRADLEY, RANDALL $ 2,860.17 $ 2,860.17 $ 50.00 $ 50.00 167 BROWN, JOHN $ 4,362.01 $ 4,362.01 $ 50.00 $ 50.00 157 CARROLL, RONALD L $ 2,106.04 $ 2,106.04 $ 50.00 $ 50.00 151 COLE, RUSTON $ 3,065.74 $ 3,065.74 $ 50.00 $ 50.00 160 DUGGER,GARY $ 3,163.74 $ 3,163.74 $ 50.00 $ 50.00 140 FOSTER, BILLY D. $ 3,207.35 $ 3,207.35 $ 50.00 $ 50.00 148 FRIEND, JERRY $ 1,970.42 $ 1,970.42 $ 50.00 $ 50.00 161 HANNA, JANICE $ 1,368.59 $ 1,368.59 $ - $ - 145 HANNA, MARK $ 1,368.59 $ 1,368.59 $ 50.00 $ 50.00 169 HELDER, TIM $ 5,838.12 $ 5,838.12 $ 50.00 $ 50.00 180 HOYT, RICK $ 7,460.01 $ 7,460.01 $ 50.00 $ 50.00 180 HOYT, RICK Plus 25 add pay $ 272.01 $ 272.01 146 HUTCHENS, BERNICE $ 1,825.54 $ 1,825.54 $ 50.00 $ 50.00 194 JOHNSON, FRANK $ 7,974.81 $ 7,974.81 $ 50.00 $ 50.00 215 JOHNSON, JOYCE $ 2,455.50 $ 2,455.50 $ 50.00 $ 50.00 103 JOHNSON, WENDELL $ 783.15 $ 783.15 $ 50.00 $ 50.00 118 JONES, BOB $ 3,300.45 $ 3,300.45 $ 50.00 $ 50.00 211 JONES, MICHELE $ 1,182.26 $ 1,182.26 144 KILGORE, DONALD $ 2,046.48 $ 2,046.48 $ 50.00 $ 50.00 218 MARTIN, CONNIE $ 3,692.85 $ 3,692.85 $ 50.00 $ 50.00 128 MCCAWLEY, LARRY $ 1,694.79 $ 1,694.79 $ 50.00 $ 50.00 136 MITCHELL, MICHAEL $ 2,305.29 $ 2,305.29 $ 50.00 $ 50.00 158 MUNSON,ANGELA $ 4,198.15 $ 4,198.15 $ 50.00 $ 50.00 112 MURPHY, JAKE $ 405.75 $ 405.75 $ 50.00 $ 50.00 137 PERDUE, LARRY $ 2,322.67 $ 2,322.67 $ 50.00 $ 50.00 164 PERSHALL, ROBIN $ 1,525.07 $ 1,525.07 $ - $ - 132 PHILLIPS, HOMER GENE $ 1,754.44 $ 1,754.44 $ 50.00 $ 50.00 199 PRESTON, NORMAJ $ 1,601.37 $ 1,601.37 $ 50.00 $ 50.00 135 RICKMAN, LOREN $ 2,231.07 $ 2,231.07 $ 50.00 $ 50.00 214 RIGGINS, BONNIE $ 1,669.37 $ 1,669.37 $ 50.00 $ 50.00 183 ROBERTS, ELDON $ 4,263.24 $ 4,263.24 $ 50.00 $ 50.00 183 ROBERTS, ELDON Plus 25 add pay $ 587.09 $ 587.09 $ - $ - 212 ROBERTS, CAROLYN K $ 3,216.13 $ 3,216.13 $ - 212 ROBERTS, CAROLYN K Plus 25 add pay $ 442.89 $ 442.89 $ - 159 SCHUSTER,JOHN H. $ 3,117.36 $ 3,117.36 $ 50.00 $ 50.00 168 STANLEY, MELVIN $ 4,880.07 $ 4,880.07 $ 50.00 $ 50.00 133 SURLES, JERRY $ 2,721.40 $ 2,721.40 $ 50.00 $ 50.00 142 TAYLOR, DENNIS $ 2,063.93 $ 2,063.93 $ 50.00 $ 50.00 163 WATSON, RICHARD $ 6,947.05 $ 6,947.05 $ 50.00 $ 50.00 163 Watson, Richard Pius 25 Add'I Pay $ 948.76 $ 948.76 $ - $ - 149 WILLIAMS, JOYCE $ 2,539.66 $ 2,539.66 $ 50.00 $ 50.00 195 WITT, BETTY $ 1,766.83 $ 1,766.83 $ 50.00 $ 50.00 213 WOOD, RUTHIE $ 1,580.93 $ 1,580.93 $ 50.00 $ 50.00 $ 125,204.92 $ 125,204.92 $1;950.00 $ 1,950.00 $ - POLICE PENSION FUND 2 2 2 2 2 Feb 2015 68DO-9800 6800-9800 Month 2 Regular Mo 5335-00 5335-05 2 EMP# NAME Benefit YTD Reg Benefit Suppl. YTD Suppl. Future Supple 154 ALLEN, CHARLES $ 2,584.64 $ 5,169.28 $ 50.00 $ 100.00 206 BAYLES, BOBBI J $ 1,587.41 $ 3,174.82 $ 50.00 $ 100.00 216 BLACK, MILDRED $ 1,125.64 $ 2,251.28 $ 50.00 $ 100.00 147 BRADLEY, GERALD $ 4,820.09 $ 9,640.18 $ 50.00 $ 100.00 139 BRADLEY, RANDALL $ 2,860.17 $ 5,720.34 $ 50.00 $ 100.00 167 BROWN, JOHN $ 4,362.01 $ 8,724.02 $ 50.00 $ 100.00 157 CARROLL,RONALD L $ 2,106.04 $ 4,212.08 $ 50.00 $ 100.00 151 COLE, RUSTON $ 3,065.74 $ 6,131.48 $ 50.00 $ 100.00 160 DUGGER,GARY $ 3,163.74 $ 6,327.48 $ 50.00 $ 100.00 140 FOSTER, BILLY D. $ 3,207.35 $ 6,414.70 $ 50.00 $ 100.00 148 FRIEND, JERRY $ 1,970.42 $ 3,940.84 $ 50.00 $ 100.00 161 HANNA, JANICE $ 1,368.59 $ 2,737.18 $ - $ - 145 HANNA, MARK $ 1,368.59 $ 2,737.18 $ 50.00 $ 100.00 169 HELDER, TIM $ 5,838.12 $ 11,676.24 $ 50.00 $ 100.00 180 HOYT, RICK $ 7,460.01 $ 14,920.02 $ 50.00 $ 100.00 180 HOYT, RICK Plus 25 add pay $ 272.01 $ 544.02 146 HUTCHENS, BERNICE $ 1,825.54 $ 3,651.08 $ 50.00 $ 100.00 194 JOHNSON, FRANK $ 7,974.81 $ 15,949.62 $ 50.00 $ 100.00 215 JOHNSON, JOYCE $ 2,455.50 $ 4,911.00 $ 50.00 $ 100.00 103 JOHNSON, WENDELL $ 783.15 $ 1,566.30 $ 50.00 $ 100.00 118 JONES, BOB $ 3,300.45 $ 6,600.90 $ 50.00 $ 100.00 211 JONES, MICHELE $ 1,182.26 $ 2,364.52 144 KILGORE, DONALD $ 2,046.48 $ 4,092.96 $ 50.00 $ 100.00 218 MARTIN, CONNIE $ 3,692.85 $ 7,385.70 $ 50.00 $ 50.00 128 MCCAWLEY, LARRY $ 1,694.79 $ 3,389.58 $ 50.00 $ 100.00 136 MITCHELL, MICHAEL $ 2,305.29 $ 4,610.58 $ 50.00 $ 100.00 158 MUNSON,ANGELA $ 4,198.15 $ 8,396.30 $ 50.00 $ 100.00 112 MURPHY, JAKE $ 405.75 $ 811.50 $ 50.00 $ 100.00 137 PERDUE, LARRY $ 2,322.67 $ 4,645.34 $ 50.00 $ 100.00 164 PERSHALL, ROBIN $ 1,525.07 $ 3,050.14 $ - $ - 132 PHILLIPS, HOMER GENE $ 1,754.44 $ 3,508.88 $ 50.00 $ 100.00 199 PRESTON, NORMAJ $ 1,601.37 $ 3,202.74 $ 50.00 $ 100.00 135 RICKMAN, LOREN $ 2,231.07 $ 4,462.14 $ 50.00 $ 100.00 214 RIGGINS, BONNIE $ 1,669.37 $ 3,338.74 $ 50.00 $ 100.00 183 ROBERTS, ELDON $ 4,263.24 $ 8,526.48 $ 50.00 $ 100.00 183 ROBERTS, ELDON Plus 25 add pay $ 587.09 $ 1,174.18 $ - $ - 212 ROBERTS, CAROLYN K $ 3,216.13 $ 6,432.26 $ - 212 ROBERTS, CAROLYN K Plus 25 add pay $ 442.89 $ 885.78 $ - 159 SCHUSTER,JOHN H. $ 3,117.36 $ 6,234.72 $ 50.00 $ 100.00 168 STANLEY, MELVIN $ 4,880.07 $ 9,760.14 $ 50.00 $ 100.00 133 SURLES, JERRY $ 2,721.40 $ 5,442.80 $ 50.00 $ 100.00 142 TAYLOR, DENNIS $ 2,063.93 $ 4,127.86 $ 50.00 $ 100.00 163 WATSON, RICHARD $ 6,947.05 $ 13,894.10 $ 50.00 $ 100.00 163 Watson, Richard Plus 25 Add'I Pay $ 948.76 $ 1,897.52 $ - $ - 149 WILLIAMS, JOYCE $ 2,539.66 $ 5,079.32 $ 50.00 $ 100.00 195 WITT, BETTY $ 1,766.83 $ 3,533.66 $ 50.00 $ 100.00 213 WOOD, RUTHIE $ 1,580.93 $ 3,161.86 $ 50.00 $ 100.00 $ 125,204.92 $ 250,409.84 $1,950.00 $ 3,850.00 $ - POLICE PENSION FUND March 2015 Month 3 3 EMP# NAME 154 ALLEN, CHARLES 206 BAYLES, BOBBI J 216 BLACK, MILDRED 147 BRADLEY, GERALD 139 BRADLEY, RANDALL 167 BROWN, JOHN 157 CARROLL,RONALD L 151 COLE, RUSTON 160 DUGGER,GARY 140 FOSTER, BILLY D. 148 FRIEND, JERRY 161 HANNA, JANICE 145 HANNA, MARK 169 HELDER, TIM 180 HOYT, RICK 180 HOYT, RICK Plus 25 add pay 146 HUTCHENS, BERNICE 194 JOHNSON, FRANK 215 JOHNSON, JOYCE 103 JOHNSON, WENDELL 118 JONES, BOB 211 JONES, MICHELE 144 KILGORE, DONALD 216 MARTIN, CONNIE 128 MCCAWLEY, LARRY 136 MITCHELL, MICHAEL 158 MUNSON,ANGELA 112 MURPHY, JAKE 137 PERDUE, LARRY 164 PERSHALL, ROBIN 132 PHILLIPS, HOMER GENE 199 PRESTON, NORMA J 135 RICKMAN, LOREN 214 RIGGINS, BONNIE 183 ROBERTS, ELDON 183 ROBERTS, ELDON Plus 25 add pay 212 ROBERTS, CAROLYN K 212 ROBERTS, CAROLYN K Plus 25 add pay 159 SCHUSTER,JOHN H. 168 STANLEY, MELVIN 133 SURLES, JERRY 142 TAYLOR, DENNIS 163 WATSON, RICHARD 163 Watson, Richard Plus 25 Add'I Pay 149 WILLIAMS, JOYCE 195 WITT, BETTY J 213 WOOD, RUTHIE 3 3 6800-9800 Regular Mo 5335-00 Benefit YTD Reg Benefit 3 3 3 6800-9800 5335-05 Suppl. YTD Suppl. Future Supple $ 2,584.64 $ 7,753.92 $ 50.00 $ 150.00 $ 1,587.41 $ 4,762.23 $ 50.00 $ 150.00 $ 1,125.64 $ 3,376.92 $ 50.00 $ 150.00 $ 4,820.09 $ 14,460.27 $ 50.00 $ 150.00 $ 2,860.17 $ 8,580.51 $ 50.00 $ 150.00 $ 4,362.01 $ 13,086.03 $ 50.00 $ 150.00 $ 2,106.04 $ 6,318.12 $ 50.00 $ 150.00 $ 3,065.74 $ 9,197.22 $ 50.00 $ 150.00 $ 3,163.74 $ 9,491.22 $ 50.00 $ 150.00 $ 3,207.35 $ 9,622.05 $ 50.00 $ 150.00 $ 1,970.42 $ 5,911.26 $ 50.00 $ 150.00 $ 1,368.59 $ 4,105.77 $ - $ - $ 1,368.59 $ 4,105.77 $ 50.00 $ 150.00 $ 5,838.12 $ 17,514.36 $ 50.00 $ 150.00 $ 7,460.01 $ 22,380.03 $ 50.00 $ 150.00 $ 272.01 $ 816.03 $ 1,825.54 $ - 5,476.62 $ 50.00 $ 150.00 $ 7,974.81 $ 23,924.43 $ 50.00 $ 150.00 $ 2,455.50 $ 7,366.50 $ 50.00 $ 150.00 $ 783.15 $ 2,349.45 $ 50.00 $ 150.00 $ 3,300.45 $ 9,901.35 $ 50.00 $ 150.00 $ 1,182.26 $ 3,546.78 $ 2,046.48 $ 6,139.44 $ 50.00 $ 150.00 $ 3,692.85 $ 11,078.55 $ 50.00 $ 50.00 $ 1,694.79 $ 5,084.37 $ 50.00 $ 150.00 $ 2,305.29 $ 6,915.87 $ 50.00 $ 150.00 $ 4,198.15 $ 12,594.45 $ 50.00 $ 150.00 $ 405.75 $ 1,217.25 $ 50.00 $ 150.00 $ 2,322.67 $ 6,968.01 $ 50.00 $ 150.00 $ 1,525.07 $ 4,575.21 $ - $ - $ 1,754.44 $ 5,263.32 $ 50.00 $ 150.00 $ 1,601.37 $ 4,804.11 $ 50.00 $ 150.00 $ 2,231.07 $ 6,693.21 $ 50.00 $ 150.00 $ 1,669.37 $ 5,008.11 $ 50.00 $ 150.00 $ 4,263.24 $ 12,789.72 $ 50.00 $ 150.00 $ 587.09 $ 1,761.27 $ - $ - $ 3,216.13 $ 9,648.39 $ - $ 442.89 $ 1,328.67 $ - $ 3,117.36 $ 9,352.08 $ 50.00 $ 150.00 $ 4,880.07 $ 14,640.21 $ 50.00 $ 150.00 $ 2,721.40 $ 8,164.20 $ 50.00 $ 150.00 $ 2,063.93 $ 6,191.79 $ 50.00 $ 150.00 $ 6,947.05 $ 20,841.15 $ 50.00 $ 150.00 $ 948.76 $ 2,846.28 $ - $ - $ 2,539.66 $ 7,618.98 $ 50.00 $ 150.00 $ 1,766.83 $ 5,300.49 $ 50.00 $ 150.00 $ 1,580.93 $ 4,742.79 $ 50.00 $ 150.00 $ 125,204.92 $ 375,614.76 $1,950.00 $ 5,750.00 $ - POLICE PENSION FUND April 2015 Month 4 4 EMP# NAME 154 ALLEN, CHARLES 206 BAYLES, BOBBI J 216 BLACK, MILDRED 147 BRADLEY, GERALD 139 BRADLEY, RANDALL 167 BROWN, JOHN 157 CARROLL,RONALD L 151 COLE, RUSTON 160 DUGGER,GARY 140 FOSTER, BILLY D. 148 FRIEND, JERRY 161 HANNA, JANICE 145 HANNA, MARK 169 HELDER, TIM 180 HOYT, RICK 180 HOYT, RICK Plus 25 add pay 146 HUTCHENS, BERNICE 194 JOHNSON, FRANK 215 JOHNSON, JOYCE 103 JOHNSON, WENDELL 118 JONES, BOB 211 JONES, MICHELE 144 KILGORE, DONALD 218 MARTIN, CONNIE 128 MCCAWLEY, LARRY 136 MITCHELL, MICHAEL 158 MUNSON,ANGELA 112 MURPHY, JAKE 137 PERDUE, LARRY 164 PERSHALL, ROBIN 132 PHILLIPS, HOMER GENE 199 PRESTON, NORMA J 135 RICKMAN, LOREN 214 RIGGINS, BONNIE 183 ROBERTS, ELDON 183 ROBERTS, ELDON Plus 25 add pay 212 ROBERTS, CAROLYN K 212 ROBERTS, CAROLYN K Plus 25 add pay 159 SCHUSTER,JOHN H. 168 STANLEY, MELVIN 133 SURLES, JERRY 142 TAYLOR, DENNIS 163 WATSON, RICHARD 163 Watson, Richard Plus 25 Add'I Pay 149 WILLIAMS, JOYCE 195 WITT, BETTY J 213 WOOD, RUTHIE 4 6800-9800 Regular Mo 5335-00 Benefit YTD Reg Benefit 4 4 4 4 6800-9800 5335-05 Suppl. YTD Suppl. Future Supple $ 2,584.64 $ 10,338.56 $ 50.00 $ 200.00 $ 1,587.41 $ 6,349.64 $ 50.00 $ 200.00 $ 1,125.64 $ 4,502.56 $ 50.00 $ 200.00 $ 4,820.09 $ 19,280.36 $ 50.00 $ 200.00 $ 2,860.17 $ 11,440.68 $ 50.00 $ 200.00 $ 4,362.01 $ 17,448.04 $ 50.00 $ 200.00 $ 2,106.04 $ 8,424.16 $ 50.00 $ 200.00 $ 3,065.74 $ 12,262.96 $ 50.00 $ 200.00 $ 3,163.74 $ 12,654.96 $ 50.00 $ 200.00 $ 3,207.35 $ 12,829.40 $ 50.00 $ 200.00 $ 1,970.42 $ 7,881.68 $ 50.00 $ 200.00 $ 1,368.59 $ 5,474.36 $ - $ - $ 1,368.59 $ 5,474.36 $ 50.00 $ 200.00 $ 5,838.12 $ 23,352.48 $ 50.00 $ 200.00 $ 7,460.01 $ 29,840.04 $ 50.00 $ 200.00 $ 272.01 $ 1,088.04 $ 1,825.54 $ 7,302.16 $ 50.00 $ 200.00 $ 7,974.81 $ 31,899.24 $ 50.00 $ 200.00 $ 2,455.50 $ 9,822.00 $ 50.00 $ 200.00 $ 783.15 $ 3,132.60 $ 50.00 $ 200.00 $ 3,300.45 $ 13,201.80 $ 50.00 $ 200.00 $ 1,182.26 $ 4,729.04 $ 2,046.48 $ 8,185.92 $ 50.00 $ 200.00 $ 3,692.85 $ 14,771.40 $ 50.00 $ 50.00 $ 1,694.79 $ 6,779.16 $ 50.00 $ 200.00 $ 2,305.29 $ 9,221.16 $ 50.00 $ 200.00 $ 4,198.15 $ 16,792.60 $ 50.00 $ 200.00 $ 405.75 $ 1,623.00 $ 50.00 $ 200.00 $ 2,322.67 $ 9,290.68 $ 50.00 $ 200.00 $ 1,525.07 $ 6,100.28 $ - $ - $ 1,754.44 $ 7,017.76 $ 50.00 $ 200.00 $ 1,601.37 $ 6,405.48 $ 50.00 $ 200.00 $ 2,231.07 $ 8,924.28 $ 50.00 $ 200.00 $ 1,669.37 $ 6,677.48 $ 50.00 $ 200.00 $ 4,263.24 $ 17,052.96 $ 50.00 $ 200.00 $ 587.09 $ 2,348.36 $ - $ - $ 3,216.13 $ 12,864.52 $ - $ 442.89 $ 1,771.56 $ - $ 3,117.36 $ 12,469.44 $ 50.00 $ 200.00 $ 4,880.07 $ 19,520.28 $ 50.00 $ 200.00 $ 2,721.40 $ 10,885.60 $ 50.00 $ 200.00 $ 2,063.93 $ 8,255.72 $ 50.00 $ 200.00 $ 6,947.05 $ 27,788.20 $ 50.00 $ 200.00 $ 948.76 $ 3,795.04 $ - $ - $ 2,539.66 $ 10,158.64 $ 50.00 $ 200.00 $ 1,766.83 $ 7,067.32 $ 50.00 $ 200.00 $ 1,580.93 $ 6,323.72 $ 50.00 $ 200.00 $ 125,204.92 $ 500,819.68__$1,950.00 $ 7,650.00 $ - Smith, Sondra From; Leflar, Missy Sent: Monday, November 03, 2014 11:49 AM To: Smith, Sondra; Jordan, Lioneld Cc: Williams, Kit; Becker, Paul; Lee, Pachee; Hertweck, Marsha; Leach, Trish Subject: FW: 2015 Ptax Estimate Letter Attachments: Fayetteville Fire.pdf; Fayetteville Police.pdf Sondra, Mayor, Kit, and Paul, I'm not exactly sure who all needs this information, so I'm forwarding it to all of you. Missy From: Denise Collins [mailto:dcollins@lopfi-prb.comj Sent: Monday, November 03, 2014 10:40 AM To: Leach, Trish Cc: Leflar, Missy; Lee, Pachee; Baker, Jodie Subject: 2015 Ptax Estimate Letter Good morning - The attached letter provides useful information of one of the changes in Act 979 of 2011. This act created a new source of funding for local fire and police pension funds titled Additional Allocation. The letter will inform your Local Pension Fund Board of Trustees of the estimated amount of the Additional Allocation your pension fund could receive. Please provide a copy of the letter to each trustee. You may view Act 979 of 2011 by going to the website at www.lopfi-prb.com. Select the Links tab, General Assembly, and then Acts. Should you have additional questions you may contact our office toll free at 866-859-1745. Sincerely, PRB Staff This message contains confidential information and is intended only for the individual named. If you are not the named addressee you should not disseminate, distribute or copy this e-mail. Please notify the sender immediately by e-mail if you have received this e-mail by mistake and delete this e- mail from your system. E-mail transmission cannot be guaranteed to be secure or error -free as information could be intercepted, corrupted, lost, destroyed, arrive late or incomplete, or contain viruses. The sender therefore does not accept liability for any errors or omissions in the contents of this message, which arise as a result of e-mail transmission. Osborn, Carreiro & Associates, Inc. ACTUARIES • CONSULTANTS,* ANALYSTS October 31, 2014 Mr. David Clark, Executive Director Arkansas Fire and Police Pension Review Board 620 West Third Street, Suite 200 Little Rock, AR 72201 RE: Fayetteville Police Pension Fund Estimated 2015 Premium Tax Allocation Dear Mr. Clark: One Union National Plaza, Suite 1690 124 West Capitol Avenue Little Rock, Arkansas 72201 (501)376-8043 fax (501)376-7847 We have estimated the base benefit calculations needed for the Premium Tax Allocation formula created by Act 979 of 2011 and PRB Board Rule 12. This letter will provide these estimates for the above referenced local fire or police pension fund. Actual Benefits Valued 1/1/2014 $1,537,624 Base Benefits Valued 1/1/2014 $898,433 Actuarial Cost of Base Benefits $401,702 Estimated Premium Tax 2015 (30% ofActuarial Cost) $120,511 Estimated Additional Allocation 2015, if eligible 10% of Actuarial Cost $40,170 2014 Employer Contributions for Additional Allocation 2015 Eligibility (80% of Actuarial Cost) $321,362 Actual 2013 Reported Employer Contribution (other than premium tax) $654,524 Shortfall based on 2013 contributions $0 Expected Eligibility based on 2013 contributions Yes The premium tax formula allocates monies based on an Actuarial Cost derived from a fund's Base Benefits (that is, 50% of Final Salary, minimum $350 per month for paid members, and $100 per month for volunteer members). Each fund receives 30% of this calculated Actuarial Cost as Premium Tax. Each fund is also eligible for an Additional Allocation equal to 10% of this Actuarial Cost, provided that the Employer Contributions other than Premium Tax made by the location are equal to at least 80% of the Actuarial Cost. We have included last year's contributions and the estimated shortfall to become eligible for the Additional Allocation if Employer Contributions were to remain level in 2014. As a reminder, these numbers constitute estimates, and they MAY vary materially from the figures shown here. In particular, an additional employer contribution equal to the shortfall estimate shown will not guarantee Additional Allocation eligibility in 2015. Please note that in 2014 the Additional Allocation was proportionally reduced by 20% due to a shortfall in Premium Tax revenues. Any similar shortfall would also reduce Additional Allocation amounts in 2015. Policemen's Pension and Relief Fund Board of Trustees DESCRIPTION: The Policemen's Pension and Relief Fund Board of Trustees was established pursuant to the A.C.A 24-11-405. 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. The Board shall have the power to make all rules and regulations needful of its guidance to implement the provisions regarding Board composition. TERMS: Two-year terms, ending May 31. MEMBERS: The Board shall be composed of seven members as follows: The chief executive, who shall serve as chairman of the board The city treasurer, who shall be the treasurer of the fund; Five active or retired members of the pension fund; APPOINTMENT: If there are no active members of the pension fund, all five members shall be elected from and by the retired membership of the pension fund. 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. CONTACT: Sondra Smith, City Clerk, 575-8323. PUBLIC NOTIFICATION: A weekly meetings list is prepared by the City Clerk office which is distributed to the press and posted on the City's web site: www.fayetteville-ar.gov MEETING TIMES: Regular meetings are held the third Thursday of each quarter in January, April, July and October at 3:00 p.m. in Room 326 at the City Administration Building. Due to elections not being held until May of each year, the term end date was changed to May 31 at the Police Pension meeting on October 21, 2004 37 Policemen's Pension and Relief Fund Board of Trustees Chairman Retired Position 3 Mayor Lioneld Jordan John Brown 113 W. Mountain 11701 Illinois Chapel Road Fayetteville, AR 72701 Prairie Grove, AR 72753 575-8330 — Business 846-6414 — Home 01/01/09-Indef. 225-3540 — Cell 601-6469 — Cell Replaced Tim Helder Treasurer 06/01/13-05/31/15 1st Term Sondra Smith Frank Johnson 113 W. Mountain Retired Position 4 Fayetteville, AR 72701 Melvin W. Stanley 442-7838 — Home PO Box 289 575-8323 — Business Greenland, AR 72737 02/03/03-Indef. 839-3106 — Home Retired Position 2 601-1224 — Cell Secretary Replaced Dr. James Mashburn Retired Position 1 11/15/06-05/31/07 Unexpired Term Eldon Roberts 06/01/07-05/31/09 1st Term 4199 E. Huntsville Rd. 06/01/09-05/31/11 2nd Term Fayetteville, AR 72701 06/01/11-05/31/13 3`d Term 521-0183 —Home 06/01/13-05/31/15 4d' Term 601-6469 — Cell Replaced Randy Bradley Retired Position 5 06/01/05-05/31/07 1st Term Frank Johnson 06/01/07-05/31/09 2nd Term 3328 Jasper Lane 06/01/09-05/31/113 d Term Fayetteville, AR 72704 06/01/11-05/31/13 4d Term 204-2588 —Business 06/01/13-05/31/15 5d' Term Replaced Jerry Surles 06/01/06-05/31/08 1st Term Retired Position 2 06/01/08-05/31/10 2nd Term Ruston Cole 06/01/10-05/31/12 3rd Term 4201 East Canvas Road 06/01/12-05/31/14 4d' Term Fayetteville, AR 72701 06/01/14-05/31/16 5d' Term 841-2356 — Cell Replaced Jerry Friend 06/01/14-05/31/16 1st Term In 2005 Act 386 changed the composition of the board eliminating the physician position and adding one active member. The active position is now a retired position due to the fact that there are no current active members on the pension plan. The physician position was also replaced by a retired member. 38 OurLOOKS FPCIVI L:JNGF-? irvVrSTMf7NI'S iVCJRPORATI:D In the second halfof2014, volatility picked up in all world markets — stocks., bonds, currencies, and commodities. The S&P 500 declined 9.8% from its September high by October l S. Then, in short order, the market advanced 14.2% to a new high on December S. dipped briefly by 5%, and hit another new high before year end. (See Chart A on insert.) Bond interest rates were lower at year-end 2014 than bond yields were at the end of 2013, All of this turmoil caused a "flight to safety" into U.S. Treasury debt. (See Table 1.) Table I U.S. Treasury Yields Maturity 12/31/13 12/31/14 Five -Year 1.75% 1,65% 10 -Year 3.03% 2.17% 30 -Year 3.96% 2.75% In 2013, rates rose sharply, causing bond prices to decline enough to more than offset their coupon returns. The 2013 bond market return was the worst since 1994. In 2014, rates declined, resulting in rising bond prices. These higher bond prices, with coupon interest added; delivered a total return greater than the bond coupon return. The Federal Reserve (the Fed) under Chair Janet Yell ten remained accommodative. It kept short-term interest rates at zero even while gradually ending Quantitative Easing (QE, the program in which the Fed buys Treasury debt by expanding its balance sheet). The Fed is expected to begin raising rates in 2015. Speculation revolves around whether the increase will take place in the spring or summer. The Fed wanted to delay the increase until inflation rose above 2% (it is currently 1.3%) or until the unemployment rate dropped below 6% (it is currently 5.8%). Inflation did January 7, 2015 not force the move, so the Fed has been able to forestall increasing rates even as employment strengthened. Unemployment is now below the 6% target. But the Fed is still cautious about tightening because of economic concerns in both the Eurozone and Asia. We have seen considerable volatility in long-term interest rates this ,year. The 10 -year yield started the year at 3%, fell below 2% briefly in October, then rose to close the year at 2.17%. Although U.S. growth recovered (real GDP growth was 5% in the third quarter and 2.4% for the year), economic growth abroad is still weak. our strategy in the fixed-income markets has been to bold only the highest -quality U.S. Treasury; corporate, and municipal bonds of short or moderate maturities. We have been able to boost fixed-income returns this year by tactically trading the long end ofthe bond market. In 2011, we amended our investment pol ivies to allow our portfolios to hold high - dividend stocks and utility funds, preferred stocks, and energy master limited partnerships as income investments. These investments make up a class called "income assets," outside the "equity assets" class. We did this because of our concerns that bond values would decline if interest rates rose. This income assets class delivered double-digit rates ofreturn in 2013, even as bonds posted negative returns. Income assets continued to perform well in 2014, delivering returns of about 10%, depending on individual allocations. We believe that this class of assets is an. excellent way to achieve portfolio income needs withoutthe duration risk to bond prices if interest rates rise. The Stock Market In 2014, stock market performance again outpaced earnings growth, though less dramatically than in recent years. The S&P 500 was the strongest -performing market, with the Dow Jones Industrial Average (DJIA) and the Russell 2000 small -cap stock index delivering lower returns. International returns, as measured by the MSCI Europe, Australasia, Far East Index, were down 7.4%. although there were some strong performers, such as China. (See Table 2.) Table 2 2014 Stock Market Returns S&P 500 (cash basis) 11.4% S&P 500 (w/div, rein.) 13.70K (cash basis) 7.5%DJ IA (w( div. rein) 10.00/0 2000 3.5%EAFE(MSCI Europe, Australasia, Far East Index) -7.4°l0 Barclay Aggregate Bond Composite Index 6.0°l0 --Citigroup-GovtJCorp. - Bond Index (3-7 years) 3.4°l0 There are several seasons that stock market volatility greatly increased in the fourth quarter. • European troubles resurfaced; economic growth in the Eurozone slowed to less than 1%. The head of the European Central Bank (ECB), Mario Draghi, has promised to "do more" to expand the monetary accommodation in the first quarter of 2015. The world hopes he will, but we may find that there are no more rabbits in the ECB hat. The markets are anticipating an ECB QE. But what if the ECB doesn't have a mechanism to achieve the kind of quantitative easing enacted by the U.S. Fed? Interest rates are already negative out to the two-year maturity in seven of the Eurozone countries, and out to the five- year maturity in Germany. In most European countries, the l0 -year government bond rates are already below the U.S. 10 -year rates (2.17%). Many are below I% (Switzerland 0.29°1x, Germany 0.5%, France U.$%, Sweden 0.9%, Spain 1.6%, Italy 1.8%). Without structural reforms, lower interest rates are probably not going to salve the growth problem. We also face Greek elections in the first quarter. The results could reopen negotiations about the Greek debt bailout terms. As the European economic growth slowed (especially rotative to U.S. growth in the second half of the year), the euro currency declined in value by about 150/c relative to the U.S. dollar since June. This is a dramatic decline in a major world currency in a short period of time and indicates the concerns investors feel about the monetary and fiscal polices in the Eurozone. Japanese growth has not improved in spite of aggressive monetization of debt by the Bank of Japan (BOJ). The yen declined 160/6 relative to the U.S. dollar in 2014, as the 13(?J orchestrated a monetary policy designed to weaken the yen. The intention was to stimulate export competitiveness and hence growth. Thejury is still out on the success of this plan. We will know more as 2015 unfolds. Japan entered recession in the second quarter and remains in a no -growth state. • China's growth has stowed. Recent economic numbers suggest that China's target of 7% growth in 2015 may be too optimistic. • Crude. oil prices have plunged over 50% since June. (See Chart B.) This should benefit consumers. Ry some accounts, the decline we've seen is equivalent to a S.i00billion toS400billion tax cut. Consumer stacks had a goad move in December; preliminary results indicate a strangholiday season for both. traditional and online retailers. Domestic energy exploration and production have been strong employment growth. engines since the 2008-2009 recession. (See Chart C:) The concern now is whether the positive effect of lower oil prices an consumption. will offset the negative economic effect of reduced energy exploration and development. The Amex Oil Index has declined by 27% from its 2014 high. Drillers were hit even harder: We will have to monitor the positive and negative repercussions of the decline in crude oil prices as the impact ripples through the economy. Russia has very serious economic exposure to energy swings, because so much of its economy depends upon oil exports. By year-end, the Russian stock market had declined by 45% from its 2014 high. The ruble collapsed in value, and the economy sank into a high -inflation recession. It's hard to predict the risk of such dramatic declines in energy prices, the Russian currency, stock market values, and economic growth. Might Russia default" At this point, it seems unlikely. But credit default swap spreads are widening, which indicates that the market is considering this risk. In 2014, the United States was the bright spot in world economic growth, price stability, and currency strength, Earnings growth for 2014 should come in at about 9%. Growth estimates for 2015 range from 5% to 8%. Much will depend upon world economic growth. In today's interconnected world, no country is an island. A worldwide slowdown would certainly affect flee U.S. earnings outlook. We expect some of the uncertainties enumerated above to become clearer by the end of the first quarter. In the meantime, the stock market appreciated at a rate in excess of earnings growth in 2014. The valuation (or price/. earnings ratio) of the market is at 18 times earnings --- somewhat above the long-term average of 16.2. (See Chart D.) Although valuation can still go higher, as it did in 1999, we are not pinning our hopes of higher returns on rising valuation. Our forecast calls for equity returns to tnirror earnings growth in 2015. Whether that will be 5% to 8% or some other amount is hard to determine until more of these variables precipitate into hard facts. We do believe that equity assets represent a better The information provided herein is illustrative only. it should not be construed as a formai recommendation by Longer Investments Inc value than do bonds with yields at 2.1% (10 - year) and 1.65% (five-year). Our equity stratelry continues to be one of emphasizing large blue-chip companiesthat pay good dividends and exhibit strong balance sheets and cash flow. The dividend yield on our establ ished equity portfolios is 3.5% to 4.0%. Although the U.S. stock market delivered impressive returns in 2014, we maintain a cautious posture. We want to participate in growth, but in a conservative way. Volatility increased as we closed the year, and the risk of a disruptive event—geopolitical or economic — is significant enough for us to believe that caution is warranted. This is a very special new year. As we move into 2015, Longer Investments celebrates 30 years of money management. We thank all ofyou for giving us this trusted position. We would not be celebrating our 30 -year anniversary without you. Over the years, Longer Investments has grown though the generous referrals our clients (and their accountants and attorneys) have made to people they know who might benefit from our services. We thank you for the growth we have enjoyed over the years. (See Chart E on page 4.) it has been a magical journey for me since I left First National Bank in Fayetteville in 1985 to set up this business with a $15,000 family investment. 1 cherish all the people who helped me and who believed in me before I believed in myself The guidance, mentoring, support, and sponsorship into the business community I received from bank executives, board members, and others still amazes ane. Longer Investments has been blessed by incredible talent in employees and interns over the years. Kim Cooper joined me as executive administrator in 1987. As we all know, she is a significant part of the success of the firm. Her administrative and executive excellence allowed me to focus on the investment side. I0NGEP I IN V r M E N T a VNC: C';!'O C: In 2014, Tina iamb celebrated 15 years as our skilled client services manager. Many others have contributed significantly to the infrastructure of the firm in one way or another. In a business like this, our most valuable corporate assets walk out the door each evening. lam so thankful that they return each new day eager to work together to deliver our services to you. And so we ' close by saying thank you. Thank you for an trusting us, for making the journey with us, and for helping us grow. We appreciate all of you. We wish you and your loved ones a very healthy, joyful, jand_ successful new year. 10 Chart E Longer Investments Inc. Growth of Assets Under Management hssotcUnovMar+s9enwm(mvdlre ) szn f,a s+� su+ 3tN Silx Some Lessons Learned from Managing Money for 30+ Years • Expect the unexpected. There will always he uncertainty — that's certain! • Embrace change, and watch for patterns in shifting dynamics. • Remember that the market knows more than any individual. It is areal -time, live voting machine where ballots are cast with capital placed atrisk. • Go longterm with winners, but never with losers. • Know that no matter how much research and work goes into valuing an investment, there will always be negative surprises. Control the risk of the unknown through judicious asset allocation and strategic downside risk limits. • Appreciate the markets as a metaphor of life. There are celebrations, exuberance, and thrills. There are disasters, fears, mid crashes. Leave emotion out trade decisions — stay clinical and surgical. • Realize that things are seldom as good oras bad as they seem. Digdeep to find the answers, and then utilize a good dose of skepticism. • Be open to learning every day. The markets and all the dynamics that play out on the screens each day are always changing. A' s LONGER INVESTMENTS INCORPORATED ru+s.+1M1'¢srvkti l s-t.t;txte,� inrcctrrrrnts tart:: l',n� r . _€r'Sur t.�€i € i a.ru•tt;-•Rik 1. ` ,� �r �� nr€ set Pr zrrn-,vi of a rin ¢, :X e, anj r r,+ sr 1 +,.r1.:.+rix t:.. }.m,;(a€ ?€ r an"Slote fa €v a A''!n !mit • f`lrr+x€ I;vnia" r&gvvlt•tV'Pa€pa 4t. n++€r..&:.it,r vary; Endowvr 'i..n N,ra«,€ 10%and ..rt..€r€+uwniliatoz fq;d-bx he !4m! AM A t,nldyvs,141 w (1+rn '€.'+-3'3 •?ttI?.lit ,, x3�r. ft 'tit, -a 4, Sa,L:_tYka �r(:��r..,ra-a:atu+a 11 it'r �iir '.r"t!i+rfwnei:Q:ai ChartA S&P 500 Volatility 2014 S&I' 500 - 2014 Fed changes >150 -.. 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GDP L"5 Gxtl i Report I on investor oxpecons Isio 5tmng Militants 1x+xP+ove on W'i'i falls 1 R \ Q G P seize kegi S ey belox S data disappmnr, ricitiesSw rre /bal 1 5tcan ental tmapz enter S Malaysiaxa Cmpi}vlationday sales datm Crimea 10 -yr readies AirfFigh} after stacks rally 2% 17;50. 3.egM EOb1C Chair 10 -month loan shot donm nvddap afterfalliris l wilen slips in Home Yes conference aver Ukraine 3% from open Teatimonv _ ........._�_.,_.�..t 1300 a......__.....,.t r... ------- ..._.._... ..:...___ c Jot baU 4iar Ayr MaSr jam fttl Aug Sep Ckt Noe Dec, 140 ISO 120 110 100 So so 70 60 50 fan -13 scv Strategas Chart B Brent Crude Prices (in dollars per barrel) MOP13 Sep -13 jam -14 mav�14 Sep -14 --Seen} 140 330 120 110 100 90 so 70 60 so tan -15 So ,Eve lsl Chart C Energy Has Helped with Job Growth U.S. Payroll Growth Since Jan 'Q8 FrnVIoymentPeak 70% (efo Change) GO% 50% #04 zaa 10% 0% -10% _an% 30% —suppottactiivities For Oil & Gas Opcnations Oil &Gas Extraction ^^^^*(,)!t &GLS Pipelme cbmicactim -- Petroleum Refineries Iotal Nonfarm ex. Oil erQ Activities Chart D S&P 600 Trailing 12 -Month Price/Earnings Ratio sass: seetesas sarce: sumipas ow GARRISON F l N A N C l A L January 7, 2015 City of Fayetteville Police Pension and Relief Fund Charles Schwab #2448-5630 113 West Mountain Fayetteville, AR 72701 STATEMENT OF MANAGEMENT FEES For The Period October 1 through December 31, 2014 Portfolio Value as of 09-30-14 7,113,290 Portfolio Value as of 10-31-14 7,088,665 Portfolio Value as of 11-30-14 7,103,194 Portfolio Value as of 12-31-14 7,040,004 Average of 4 Months 7,086,288 7,086,288 @ 0.5000% per annum 8,858 Quarterly Management Fee 8,858 TOTAL DUE AND PAYABLE 8,858 This statement is for informational purposes only. As you requested, the fee will be automatically deducted from your account. Please be advised that it is the responsibility of the client to verify the accuracy of each fee calculation. The custodian will not determine whether the fee is properly calculated. RECFI\/FD $CAN1cD JAN 0 9 2015 C'TY 0"r `- _I I ;iLE CITY QEFY'S JF�IC_ 101110$ GARRISON F I N A N C I A L City of Fayetteville Police Pension and Relief Fund Charles Schwab #2448-5630 Quarter Ending December 31, 2014 Garrison Financial PORTFOLIO SUMMARY City of Fayetteville Police Pension and Relief Fund Charles Schwab #2448-5630 December 31, 2014 ■ Cash & Equivalents 460,705.25 ■ Account Fixed Income 2,312,003.00 ■ Account Equities 4,267,296.05 Garrison Financial PORTFOLIO APPRAISAL City of Fayetteville Police Pension and Relief Fund Charles Schwab #2448-5630 December 31, 2014 Adj Unit Total Adjusted Market Pct. Unit Annual Quantity Security Cost Cost Price Value Assets Income Income Yield CASH AND EQUIVALENTS Schwab Advisor Cash Res - 460,705 25 460,705.25 6.5 0.010 46.07 00 Premier 460,705.25 460,705.25 65 46.07 0.0 TREASURY NOTE 700,000 US TreasuryNote 101.65 711,555.51 109.62 767,375.00 10.9 4 000 28,000.00 13 4.000% Due 08-15-18 Accrued Interest 10,50000 0.1 _ 711,555.51 777,875.00 11.0 28,00000 1,3 AGENCY BONDS 200,000 Federal Farts Credit 100.00 199,993.59 105.80 211,604.60 3.0 6.125 12 25000 0.3 Bank 6.125%Due 12-29-15 Accrued interest 68.06 0_0 _ 199,993.59 211,672.66 3.0 12,250.00 0.3 CORPORATEBONDS 125,000 Verizon 99.93 124,913.17 99.54 124,421.62 1.8 1.350 1,687.50 1.5 Communications 1350% Due 06-09-17 125,000 Lab Corp. of America 10115 126,443.54 99.65 124,563.00 1.8 2.500 3,125,00 2.6 2.500% Due 11-01-18 125,000 Kroger Company 10022 125,279.60 99.98 124,970.50 1.8 2.300 2,875.00 2.3 2.300% Due 01-15-19 125,000 Honeywell International 112.68 140,847.36 112.09 140,11450 2.0 5,000 6,250,00 1.9 5.000% Due 02-15-19 125,000 Union Pacific Corp. 101,71 127,141.13 101.27 126,591.50 1.8 2.250 2,812.50 L9 2.250% Due 02-15-19 125,000 Walt Disney Co. 99.89 124,862.58 99.53 124,415.25 1.8 1,850 2,312.50 20 1.850% Due 05-30-19 Accrued Interest 5,565.97 01 769,487 39 770,642.35 109 19,062.50 2.1 CONVERTIBLE PREFERRED 300 Bunge4,875%Conv. 108.63 32,588.95 112,50 33,750.00 0.5 4.875 1,462.50 4.3 Pfd. 32,588.95 33,750.00 0-5 1,462.50 4.3 COMMON STOCK 2,000 AT&T, Inc. 2824 56,475.88 33.59 67,180.00 1.0 1.880 3,760.00 5.6 905 AbbVie, Inc- 66.58 60,253.90 65,44 59,223.20 0.8 1 960 1,773.80 3.0 1,965 Abbott Laboratories 40,06 78,727-14 45.02 88,464.30 1.3 0.960 1,886.40 2.1 120 Alliance Data Systems 283,98 34,077.36 286.05 34,326.00 0-5 0.000 0.00 0.0 625 Amgen, Inc 114.33 71,456,06 159.29 99,556.25 1.4 3.160 1,975.00 20 825 Anadarko Petroleum 85.82 70,805.10 82.50 68,062.50 1.0 1.080 89L00 1.3 500 Ansys, Inc. 75.67 37,836.95 8200. 41,000.00 0.6 0-000 0.00 0-0 1,680 Apple Computer 72,69 122,121.54 11038 185,43840 2.6 1.880 3,158.40 1.7 125 AutoZone, Inc. 516,09 64,511.70 619.11 77,388.75 1.1 0.000 000 0,0 1,350 BCE, Inc. Cl F 24.40 32,934.20 45.86 61,911.00 0.9 2 520 3,402.00 5.5 350 Becton, Dickinson& 113.97 39,889,45 139.16 48,706,00 0.7 2.400 840.00 1,7 Company 1,500 Broadridge Financial 41.33 62,000.35 46.18 69,270.00 1.0 1.080 1,62000 2.3 Solutions 675 Brown-Forman Corp. 88.81 59,946.93 87,84 59,292.00 0.8 1260 850.50 1.4 Garrison Financial PORTFOLIO APPRAISAL City of Fayetteville Police Pension and Relief Fund Charles Schwab #2448-5630 December 31, 2014 Adj Unit Total Adjusted Market Quantity Security Cost Cost Price Value 3,000 CSX Corporation 400 Chevron Corporation 4,300 Cisco Systems, Inc 1,400 Coca-Cola Company 680 Compass Minerals Int'I 1,150 ConocoPhillips 2,000 EMC Corp. 830 Eastman Chemical 1,310 Emerson Electric 1,750 Ensco Plc. 2,000 Freeport-McMoRan 69.06 Copper & Gold, Inc. 3,825 General Electric Co, 1,200 GlaxoSmithKlinePic - 3,250 Intel Corp. 1,250 Johnson & Johnson 5,650 Keycorp 1,000 Lincoln Electric 635 McDonald's Corp - 1,100 Merck & Co., Inc. 2,825 Microsoft Corp. 800 National Oilwell Varco 1,750 Noble Corp. 3,650 Pfizer, Inc. 830 Phillips 66 1,000 Procter & Gamble Co. 1,000 Qualcomm, Inc. 2,790 Raven Industries, Inc. 700 Sanofi ADR 900 St. Jude Medical, Inc. 1,055 Syngenta AG ADR 465 Valmont Industries 1,150 Wal-Mart Stores, Inc. 2,000 Waste Management MUTUAL FUNDS 2,248,991 Dodge & Cox Intl Stk 2,587.463 Oppenheimer Developing Mkts A UNIT TRUSTS 86,627.40 5,000 Alerian MLP 3,775 Sector SPDR Fuel 112,18 Select Sits 4,000 Sector SPUR Utility 2781 Select Shs 3,000 iShares DJ Select Div 3,300 iShares IBOXX Inv 87-89 Grade Corp Bond 4,000 iShares S&P US Pfd Stk TOTAL PORTFOLIO 28-88 86,627.40 36.23 108,69000 85.21 34,084.61 112,18 44,872.00 1987. 85,424.73 2781 119,60450 30.98 43,374.60 42.22 59,108.00 87-89 59,765.06 86.83 59,044.40 5558 63,918.42 69.06 79,419.00 25-64 51,282.21 29.74 59,480.00 86.14 71,495.64 75.86 62,963.80 68.00 89,080.00 61.73 80,866.30 50.34 88,100.71 29.95 52,412.50 34.88 69,754,00 2336 46,720.00 Pct. Unit Assets Income 1.5 0.640 0.6 4.280 1.7 0.760 0,8 1.220 0.8 2 400 1.1 2.920 0.8 0.460 0.9 1.600 1 1 1.880 0.7 3.000 0.7 1.250 Annual Income 1,920.00 1,712.00 3,268.00 1,708.00 1,632.00 3,358.00 920.00 1,32800 2,462.80 5,250.00 2,500.00 Yield 1,8 3.8 2.7 2, 9 2.8 4.2 1.5 2.1 3.0 10.0 5, 4 1953 74,709.32 25.27 96,657.75 1.4 0.920 3,519.00 3.6 50.10 60,124.15 42.74 51,288.00 0.7 2.650 3,180,00 6.2 21.12 68,641.12 36.29 117,94250 1,7 0,960 3,120.00 2.6 64.70 80,869,69 104.57 130,71250 1.9 2.800 3,500.00 2.7 1342 75,839,95 13.90 78,53500 1.1 0260 1,469.00 19 67.21 67,209.18 69,09 69,09000 10 1.160 1,160.00 1.7 94-59 60,065.98 93.70 59,499.50 0.8 3,400 2,159.00 3.6 51.39 56,525.78 56,79 62,469.00 0.9 1.800 1,980.00 3.2 37.81 106,815.30 46.45 131,221.25 1.9 1.240 3,503.00 2.7 8535 68,280.15 65.53 52,424.00 0.7 1.840 1,472.00 2.8 27.96 48,930.13 16.57 28,997.50 04 1.500 2,625.00 9.1 22.61 82,529.75 31.15 113,697.50 1.6 1.120 4,088.00 36 7218 59,911.86 71.70 59,511.00 0.8 2.000 1,660.00 2.8 59.42 59,417-61 91.09 91,09000 1.3 2.570 2,570.00 2.8 63-62 63,616-39 74.33 74,330-00 LI 1.680 1,680.00 2.3 28.37 79,148.48 25.00 69,750.00 L0 0520 1,450-80 2-1 55.71 38,995.10 45.61 31,927.00 0.5 1.600 1,120.00 3.5 66-56 59,900.53 65.03 58,527.00 0.8 1080 972.00 1.7 71.44 75,370.40 6424 67,773.20 1.0 1 910 2,015.05 3.0 12860 59,797 26 12700 59,055 00 0.8 1 500 697.50 12 62.11 71,423 42 85 88 98,762.00 1.4 1.920 2,208.00 2.2 42.21 84,414.32 51.32 102,640 00 1.5 1500 3,000.00 2.9 3,036,479.81 3,438,898.60 48.8 95,364.25 29 45.41 102,132.74 4211 94,705.01 1.3 0.970 2,181.52 2.3 39-33 101,776 46 35 52 91,906.69 13 0.100 258.75 0.3 203,90920 186,611-70 27 2,440.27 1.3 17.53 87,64221 17.52 87,600.00 1.2 1.130 5,650.00 6.4 21,82 82,369.05 2473 93,35575 1.3 0.400 1,510.00 1.6 34.14 136,57182 4722 188,880.00 2.7 1-510 6,040.00 3.2 52.23 156,695-97 79.40 238,200.00 3.4 2-410 7,230.00 3.0 109.72 362,065.36 11941 394,053.00 5.6 4.050 13,365.00 3.4 38.34 153,340.30 39.44 157,760.00 22 2.490 9,960.00 6-3 978,684.72 1,159,848.75 16.5 43,755.00 3.8 6,393,404.42 7,040,004.30 100.0 202,380.59 2.4 Garrison Financial PURCHASE AND SALE City of Fayetteville Police Pension and Relief Fund Charles Schwab #2448-5630 From 01-01-14 To 12-31-14 Trade Settle Unit Date Date Quantity Security Price Amount PURCHASES 12-31-14 01-06-15 905 AbbVie,Inc. 66.58 60,253.90 11-06-14 11-12-14 120 Alliance Data Systems 283.98 34,077.36 10-14-14 10-17-14 700 Anadarko Petroleum 86.53 60,570.15 12-31-14 01-06-15 125 Anadarko Petroleum 81.88 10,234.95 09-25-14 09-30-14 500 Ansys,Inc. 75.67 37,836.95 07-24-14 07-29-14 125 AutoZone, Inc. 516.09 64,511.70 09-25-14 09-30-14 100 Becton, Dickinson & Company 113.97 11,397.46 09-25-14 09-30-14 100 Becton, Dickinson & Company 113.97 11,397.46 09-25-14 09-30-14 100 Becton, Dickinson & Company 113.96 11,396.36 09-25-14 09-30-14 50 Becton, Dickinson & Company 113.96 5,698.17 07-24-14 07-29-14 100 Broadridge, Financial Solutions 41.33 4,133.50 07-24-14 07-29-14 100 Broadridge Financial Solutions 41.33 4,133.49 07-24-14 07-29-14 300 Broadridge Financial Solutions 41.33 12,400.49 07-24-14 07-29-14 700 Broadridge Financial Solutions 41.33 28,934.48 07-24-14 07-29-14 300 Broadridge Financial Solutions 41.33 12,398.39 12-31-14 01-06-15 675 Brown-Forman Corp. 88.81 59,946.93 09-25-14 09-30-14 200 Bunge 4.875% Conv.Pfd. 108.63 21,725.97 09-25-14 09-30-14 100 Bunge 4.875% Conv.Pfd. 108.63 10,862.98 12-31-14 01-06-15 300 Compass Minerals Int'] 87.89 26,367.65 12-31-14 01-06-15 318 Compass Minerals Int'] 87.89 27,949.71 12-31-14 01-06-15 62 Compass Minerals Intl 87.87 5,447.70 09-25-14 09-26-14 2,198.702 Dodge & Cox Intl Stk 45.48 100,000.00 07-24-14 07-29-14 700 Eastman Chemical 87.89 61,526.35 12-31-14 01-06-15 130 Eastman Chemical 76.69 9,969.29 07-24-14 07-29-14 1,200 GlaxoSmithKline Plc. 50.10 60,124.15 12-31-14 01-06-15 125,000 Honeywell International 112.69 140,857.50 5.000% Due 02-15-19 09-22-14 09-25-14 125,000 Kroger Company 100.24 125,297.84 2.300% Due 01-15-19 09-23-14 09-26-14 125,000 Lab Corp. of America 101.23 126,542.12 2.500% Due 11-01-18 07-24-14 07-29-14 100 Lincoln Electric 67.20 6,719.80 07-24-14 07-29-14 100 Lincoln Electric 67.20 6,719.80 07-24-14 07-29-14 6 Lincoln Electric 67.20 403.18 07-24-14 07-29-14 100 Lincoln Electric 67.20 6,719.80 07-24-14 07-29-14 98 Lincoln Electric 67.20 6,585.40 07-24-14 07-29-14 200 Lincoln Electric 67.20 13,439.59 07-24-14 07-29-14 100 Lincoln Electric 67.22 6,721.90 07-24-14 07-29-14 100 Lincoln Electric 67.22 6,721.90 07-24-14 07-29-14 100 Lincoln Electric 67.23 6,722.90 07-24-14 07-29-14 96 Lincoln Electric 67.24 6,454.91 12-31-14 01-06-15 635 McDonald's Corp. 94.59 60,065.98 Garrison Financial PURCHASE AND SALE City of Fayetteville Police Pension and Relief Fund Charles Schwab #2448-5630 From 01-01-14 To 12-31-14 Trade Settle Unit Date Date Quantity Security Price Amount 07-24-14 07-29-14 800 National Oilwell Vance 85.35 68,280.15 09-25-14 09-26-14 2,539.360 Oppenheimer Developing Mkts A 39.38 100,000.00 12-31-14 01-06-15 70 Phillips 66 72.18 5,052.30 12-31-14 01-06-15 34 Phillips 66 72.18 2,453.98 12-31-14 01-06-15 200 Phillips 66 72.18 14,435.16 12-31-14 01-06-15 100 Phillips 66 72.18 7,217.58 12-31-14 01-06-15 100 Phillips 66 72.19 7,218.98 12-31-14 01-06-15 326 Phillips 66 72.19 23,533.86 07-24-14 07-29-14 200 Raven Industries, Inc. 29.53 5,906.90 07-24-14 07-29-14 140 Raven Industries, Inc. 29.55 4,137.63 07-24-14 07-29-14 760 Raven Industries, Inc. 29.58 22,483.44 07-24-14 07-29-14 900 Raven Industries, Inc. 29.56 26,604.42 12-31-14 01-06-15 50 Raven Industries, Inc. 25.28 1,264.07 12-31-14 01-06-15 25 Raven Industries, Inc. 25.28 632.03 12-31-14 01-06-15 100 Raven Industries, Inc. 25.29 2,529.13 12-31-14 01-06-15 100 Raven Industries, Inc. 25.29 2,529.13 12-31-14 01-06-15 100 Raven Industries, Inc. 25.30 2,530.13 12-31-14 01-06-15 415 Raven Industries, Inc. 25.38 10,531.60 09-25-14 09-30-14 700 Sanofi ADR 55.71 38,995.10 12-31-14 01-06-15 900 St. Jude Medical, Inc. 66.56 59,900.53 07-24-14 07-29-14 100 Syngenta AG ADR 72.60 7,259.99 07-24-14 07-29-14 100 Syngenta AG ADR 72.60 7,259.59 07-24-14 07-29-14 67 Syngenta AG ADR 72.60 4,863.93 07-24-14 07-29-14 100 Syngenta AG ADR 72.60 7,259.59 07-24-14 07-29-14 100 Syngenta AG ADR 72.60 7,259.59 07-24-14 07-29-14 100 Syngenta AG ADR 72.60 7,259.59 07-24-14 07-29-14 100 Syngenta AG ADR 72.60 7,259.62 07-24-14 07-29-14 100 Syngenta AG ADR 72.61 7,260.99 07-24-14 07-29-14 33 Syngenta AG ADR 72.62 2,396.46 07-24-14 07-29-14 100 Syngenta AG ADR 72.61 7,261.19 12-31-14 01-06-15 155 Syngenta AG ADR 64.71 10,029.86 12-31-14 01-06-15 125,000 Union Pacific Corp. 101.71 127,142.50 2.250% Due 02-15-19 12-31-14 01-06-15 465 Valmont Industries 128.60 59,797.26 09-22-14 09-25-14 125,000 Verizon Communications 99.92 124,903.50 1.350% Due 06-09-17 12-31-14 01-06-15 125,000 Walt Disney Co. 99.89 124,862.50 1.850% Due 05-30-19 2,191,580.44 REINVESTED DIVIDENDS 12-19-14 12-19-14 50.289 Dodge & Cox Intl Stk 42.41 2,132.74 12-05-14 12-05-14 41.095 Oppenheimer Developing Mkts A 36.93 1,517.65 2 Garrison Financial PURCHASE AND SALE City of Fayetteville Police Pension and Relief Fund Charles Schwab #2448-5630 From 01-01-14 To 12-31-14 Trade Settle Unit Date Date Quantity Security Price Amount 12-05-14 12-05-14 7.008 Oppenheimer Developing Mkts A 36.93 258.81 3,909.20 SALES 07-24-14 07-29-14 1,000 BCE, Inc. Cl F 46.20 46,201.03 07-28-14 07-31-14 10,000 BlackRock Build America Bond Trust 21.87 218,716.22 09-25-14 09-30-14 400 Chevron Corporation 120.88 48,350.78 07-24-14 07-29-14 750 Coca-Cola Company 41.06 30,797.59 07-24-14 07-29-14 600 Coca-Cola Company 41.06 24,638.08 07-2444 07-29-14 500 ConoccPhillips 86.41 43,205.59 07-24-14 07-29-14 100 EMC Corp. 28.92 2,891.54 07-24-14 07-29-14 100 EMC Corp. 28.92 2,891.54 07-2444 07-29-14 100 EMC Corp. 28.92 2,891.54 07-24-14 07-29-14 100 EMC Corp. 28.92 2,891.54 07-24-14 07-29-14 300 EMC Corp. 28.92 8,674.66 07-24-14 07-29-14 100 EMC Corp. 28.92 2,891.54 07-24-14 07-29-14 100 EMC Corp. 28.91 2,891.44 07-24-14 07-29-14 100 EMC Corp. 28.91 2,891.44 09-25-14 09-30-14 100 General Electric Co. 25.55 2,555.14 09-25-14 09-30-14 375 General Electric Co. 25.55 9,581.80 09-25-14 09-30-14 125 General Electric Co. 25.55 3,193.93 09-25-14 09-30-14 100 General Electric Co. 25.55 2,555.14 09-25-14 09-30-14 100 General Electric Co. 25.55 2,555.14 09-25-14 09-30-14 200 General Electric Co. 25.55 5,110.29 09-25-14 09-30-14 2,000 General Electric Co. 25.56 51,110.91 12-31-14 01-06-15 1,953 Guggenheim Multi -Asset Income 22.44 43,826.30 12-31-14 01-06-15 1,000 Guggenheim Multi -Asset Income 22.44 22,440.50 12-31-14 01-06-15 1,000 Guggenheim Multi -Asset Income 22.44 22,440.50 12-31-14 01-06-15 1,900 Guggenheim Multi -Asset Income 22.44 42,636.96 12-31-14 01-06-15 1,900 Guggenheim Multi -Asset Income 22.44 42,636.96 12-31-14 01-06-15 1,997 Guggenheim Multi -Asset Income 22.44 44,813.69 12-31-14 01-06-15 100 IBM Corporation 161.16 16,116.46 12-31-14 01-06-15 100 IBM Corporation 161.16 16,116.47 07-24-14 07-29-14 100 Merck & Co., Inc. 58.14 5,814.47 07-24-14 07-29-14 900 Merck & Co., Inc. 58.14 52,326.69 09-25-14 09-30-14 355 Occidental Petroleum 96.92 34,405.17 09-25-14 09-30-14 145 Occidental Petroleum 96.92 14,052.81 10-14-14 10-17-14 630 Occidental Petroleum 87.53 55,145.07 08-05-14 08-08-14 0 Paragon Offshore PLC 12.62 3.47 09-25-14 09-30-14 583 Paragon Offshore PLC 6.44 3,751.90 07-24-14 07-29-14 600 Procter & Gamble Co. 80.21 48,124.39 07-24-14 07-29-14 300 SPDR S&P Homebuilders 31.03 9,308.20 07-24-14 07-29-14 200 SPDR S&P Homebuilders 31.03 6,205.26 Garrison Financial PURCHASE AND SALE City of Fayetteville Police Pension and Relief Fund Charles Schwab #2448-5630 From 01-01-14 To 12-31-14 Trade Settle Unit Date Date Quantity Security Price_ _ Amount 07-24-14 07-29-14 300 SPDR S&P Homebuilders 31.03 9,307.90 07-24-14 07-29-14 650 SPDR S&P Homebuilders 31.03 20,167.11 07-24-14 07-29-14 700 SPDR S&P Homebuilders 31.03 21,718.44 07-24-14 07-29-14 100 SPDR S&P Homebuilders 31.03 3,102.63 12-31-14 01-06-15 3,950 Sector SPDR Fncl Select Shs 25.01 98,788.15 12-31-14 01-06-15 7,375 Sector SPDR Fncl Select Shs 25.01 184,446.22 09-25-14 09-30-14 100 Sector SPDR Utility Select Shs 41.78 4,178.15 09-25-14 09-30-14 3,400 Sector SPDR Utility Select Shs 41.78 142,043.57 12-31-14 01-02-15 150,000 US Treasury Note 106.36 159,535.50 5.125% Due 05-15-16 07-24-14 07-29-14 100 iShares DJ Select Div 75.88 7,587.73 07-24-14 07-29-14 100 iShares DJ Select Div 75.88 7,587.73 07-24-14 07-29-14 500 iShares DJ Select Div 75.88 37,938.67 07-24-14 07-29-14 200 iShares DJ Select Div 75.88 15,175.26 07-24-14 07-29-14 100 iShares DJ Select Div 75.88 7,587.63 07-24-14 07-29-14 100 iShares DJ Select Div 75.88 7,587.63 07-24-14 07-29-14 100 iShares DJ Select Div 75.88 7,587.73 07-24-14 07-29-14 1,800 iShares DJ Select Div 75.88 136,579.22 07-28-14 07-31-14 5,000 iShares IBOXX Inv Grade Corp Bond 119.28 596,385.87 12-31-14 01-06-15 100 iShares IBOXX Inv Grade Corp Bond 119.52 11,952.41 12-31-14 01-06-15 1,100 iShares IBOXX Inv Grade Corp Bond 119.52 131,475.40 12-31-14 01-06-15 500 iShares IBOXX Inv Grade Corp Bond 119.52 59,761.55 2,668,146.65 4 Garrison Financial REALIZED GAINS AND LOSSES City of Fayetteville Police Pension and Relief Fund Charles Schwab #2448-5630 From 01-01-14 Through 12-31-14 Gain Or Loss Open Close Cost Amort. or Date Date Quantity Security Basis Accretion Proceeds Short Term Long Term 06-09-14 07-24-14 300 SPDR S&P Homebuilders 9,886.68 9,308.20 -578.48 06-09-14 07-24-14 200 SPDR S&P Homebuilders 6,591.12 6,20526 -385.86 08-08-11 07-24-14 100 iShares DJ Select Div 5,223.20 7,587.73 2,364.53 08-08-11 07-24-14 100 iShares DJ Select Div 5,223.20 7,587.73 2,36453 08 -08 -II 07-24-14 500 iShares DJ Select Div 26,116.00 37,938.67 11,822.67 08-08-I1 07-24-14 200 iShares DJ Select Div 10,446.40 15,175.26 4,72886 06-09-14 07-24-14 300 SPDR S&P Homebuilders 9,886.68 9,307.90 -578.78 06-09-14 07-24-14 650 SPDR S&P Homebuilders 21,421.14 20,16711 -1,254.03 06-09-14 07-24-14 700 SPDR S&P Homebuilders 23,068.92 21,718.44 -1,350.48 06-09-14 07-24-14 100 SPDR S&P Homebuilders 3,295.56 3,102.63 -192.93 08 -08 -II 07-24-14 100 iShares DJ Select Div 5,223.20 7,587.63 2,364.43 08-08-11 07-24-14 100 iShares DJ Select Div 5,223.20 7,587.63 2,364,43 08-08-11 07-24-14 100 iShares DJ Select Div 5,223.20 7,587.73 2,364.53 08-08-I1 07-24-14 1,800 iShares DJ Select Div 94,017.58 136,57922 42,561.63 05-20-10 07-24-14 500 ConocoPhillips 27,790.62 43,20559 15,414.97 01-13-14 07-24-14 100 Merck &Co, Inc 5,138.71 5,814.47 675.76 01-13-14 07-24-14 900 Merck & Co., Inc 46,248 36 52,326.69 6,078.33 02-12-14 07-24-14 100 EMC Corp. 2,564.11 2,891.54 327,43 02-12-14 07-24-14 100 EMC Corp 2,564.11 2,89154 327.43 02-12-14 07-24-14 100 EMC Corp. 2,564.11 2,891.54 327,43 03-19-09 07-24-14 600 Procter & Gamble Co. 35,650.56 48,124.39 12,473.83 02-12-14 07-24-14 100 EMC Corp. 2,564 11 2,891.54 327.43 02-12-14 07-24-14 300 EMC Corp 7,692.33 8,674.66 982.33 02-12-14 07-24-14 100 EMC Corp. 2,564.11 2,891.54 327.43 02-12-14 07-24-14 100 EMC Corp 2,564.11 2,891.44 32733 02-12-14 07-24-14 100 EMC Corp. 2,564.11 2,891.44 327.33 08-21-09 07-24-14 1,000 BCE, Inc. Cl F 24,395-70 46,201-03 21,805.33 06-26-14 07-24-14 750 Coca-Cola Company 28,956.39 30,797.59 1,841.20 05-19-10 07-24-14 600 Coca-Cola Company 18,589.11 24,638.08 6,048.97 10-06-09 07-28-14 5,000 iShares IBOXX Inv Grade 548,583.88 596,385-87 47,801 99 Corp Bond 08-23-13 07-28-14 10,000 BlackRock Build America 189,745.61 218,71622 28,970.61 Bond Trust 06-10-14 08-05-14 0 Paragon Offshore PLC 3.34 3.47 013 12-20-10 09-25-14 100 Sector SPDR Utility Select 3,414.30 4,178.15 763.85 Shs 12-20-10 09-25-14 3,400 Sector SPDR Utility Select 116,086.05 142,043.57 25,957 52 Sits 06-05-09 09-25-14 400 Chevron Corporation 34,084.61 48,350,78 14,26616 06-10-14 09-25-14 583 Paragon Offshore PLC 7,07251 3,751.90 -3,320.61 06-26-14 09-25-14 100 General Electric Co. 2,67000 2,555.14 -11486 06-26-14 09-25-14 375 General Electric Co. 10,01250 9,581.80 -430.70 12-09-09 09-25-14 125 General Electric Co. 2,441.48 3,193-93 752.45 12-09-09 09-25-14 100 General Electric Co. 1,953-18 2,555.14 60196 12-09-09 09-25-14 100 General Electric Co 1,953.18 2,555.14 601.96 06-26-14 09-25-14 355 Occidental Petroleum 34,23776 34,405.17 167.41 03-27-14 09-25-14 145 Occidental Petroleum 13,57963 14,05281 473.18 12-09-09 09-25-14 200 General Electric Co_ 3,906.37 5,110.29 1,203.92 12-09-09 09-25-14 2,000 General Electric Co. 39,063-70 51,110-91 12,047.21 03-27-14 10-14-14 630 Occidental Petroleum 59,001.14 55,145 07 -3,856.07 07-18-06 12-31-14 150,000 US Treasury Note 150,000.00 000 159,535.50 9,535.50 5.125%Due 05-15-16 10-06-09 12-31-14 100 iShares IBOXX Inv Grade 10,971 68 11,952 41 98073 Corp Bond Garrison Financial REALIZED GAINS AND LOSSES City of Fayetteville Police Pension and Relief Fund Charles Schwab #2448-5630 From 01-01-14 Through 12-31-14 Open Close Loss Proceeds Cost Amort. or Date Date Quantity Security Basis Accretion - 10 -06-09 12-31-14 1,100 iShares IBOXX Inv Grade 120,688.45 22,440.50 518.30 Corp Bond 10-06-09 12-3144 500 Shares IBOXX Inv Grade 54,858.39 984.77 44,813, 69 Corp Bond 1,03505 01-13-11 12-31-14 1,953 Guggenheim Multi -Asset 42,814.06 -1,122.38 98,788.15 10,710 43 Income 184,446.22 01-13-11 12-31-14 1,000 Guggenheim Multi -Asset 21,922.20 -12,062.81 -2,244.77 Income 63,654.93 01-13-11 12-31-14 1,000 Guggenheim Multi -Asset 21,922.20 Income 01-13-11 12-31-14 1,900 Guggenheim Multi -Asset 41,652.19 Income 01-13-11 12-31-14 1,900 Guggenheim Multi -Asset 41,652.19 Income 01-13-11 12-31-14 1,997 Guggenheim Multi -Asset 43,778.64 Income 02-12-10 12-31-14 100 IBM Corporation 17,238.85 02-12-10 12-31-14 100 IBM Corporation 17,238 85 06-26-14 12-31-14 3,950 Sector SPUR Foci Select Shs 88,077.72 02-10-14 12-31-14 7,375 Sector SPDR Pact Select Shs 160,919.68 TOTAL GAINS TOTAL LOSSES 2,344,800.99 0.00 TOTAL REALIZED GAIN/LOSS 323,345.66 CAPITAL GAIN DISTRIBUTIONS 12-05-14 Oppenheimer Developing Mkts A TOTAL DISTRIBUTIONS 1,517.65 TOTAL GAIN/LOSS 324,863.31 Q 1,517.65 0.00 1,517.65 63,654.93 261,208.38 Gain Or Loss Proceeds Short Term Long Term 131,475 40 10,786.95 59,761.55 4,903.16 43,826.30 1,012.24 22,440.50 518.30 22,440.50 518.30 42,636,96 98477 42,636.96 984.77 44,813, 69 1,03505 16,116.46 -1,122.39 16,116.47 -1,122.38 98,788.15 10,710 43 184,446.22 _ _ 23,526.54 75,717.73 261,935.50 -12,062.81 -2,244.77 2,668,146.65 63,654.93 259,690.73 1,517.65 0.00 1,517.65 63,654.93 261,208.38 Garrison Financial PERFORMANCE SUMMARY GROSS OF FEES City of Fayetteville Police Pension and Relief Fund Charles Schwab #2448-5630 December 31, 2014 PORTFOLIO COMPOSITION CHANGE IN PORTFOLIO Account 40% Fixed Income/60% Equity Blended Index Account Fixed Income Barclays Capital Intermed Govt/Credit Account Equities S&P 500 TIME WEIGHTED RETURN Market Pct. Last 12 Inception To Date Months To Date 1.53 Value Assets Yield 1.02 - 1.08 Cash & Equivalents 460,705.25 6.5 0.0 Portfolio Value on 06-30-14 7,162,197.81 Account Fixed 2,312,003.00 32.8 2.2 Accrued Interest 11,436.95 Income Account Equities 4,267,296.05 60.6 2.8 Net Additions/Withdrawals -178,046.55 Account 0.00 0.0 - Realized Gains -49,492.31 Commodities Unrealized Gains -16,481.62 Income Received 106,352.76 Change in Accrued Interest 4,697.07 Portfolio Value on 12-31-14 7,023,870.27 Accrued Interest 16,134.03 Total 7,040,004.30 100.0 2.4 7,040,004.30 Account 40% Fixed Income/60% Equity Blended Index Account Fixed Income Barclays Capital Intermed Govt/Credit Account Equities S&P 500 TIME WEIGHTED RETURN All "Account' returns refer to your portfolio. Benchmark indexes are also listed for reference. All returns are reported as percentages. This report is calculated using industry -standard accounting and performance calculation methodologies and is generated by our Axys portfolio accounting software. Calculations are a time -weighted total return series based on monthly valuations, including all cash and equivalents. All calculations are done based on trade date, employing the accrual method of accounting and include cash, interest, dividends and realized and unrealized gains and losses. Performance is adjusted to accurately reflect portfolio deposits and withdrawals. Results are presented after transaction costs but before management fees. Inception -to -date returns are annualized numbers, except for accounts under management less than one year. Unsupervised assets are excluded in performance calculation. At any given point in time an investment may be worth more or less than the original purchase price. Annualized Quarter Last 12 Inception To Date Months To Date 1.53 - 0.65 3.31 - 4.01 1.02 - 1.08 0.89 - 0.86 1.95 0.42 4.93 6.12 All "Account' returns refer to your portfolio. Benchmark indexes are also listed for reference. All returns are reported as percentages. This report is calculated using industry -standard accounting and performance calculation methodologies and is generated by our Axys portfolio accounting software. Calculations are a time -weighted total return series based on monthly valuations, including all cash and equivalents. All calculations are done based on trade date, employing the accrual method of accounting and include cash, interest, dividends and realized and unrealized gains and losses. Performance is adjusted to accurately reflect portfolio deposits and withdrawals. Results are presented after transaction costs but before management fees. Inception -to -date returns are annualized numbers, except for accounts under management less than one year. Unsupervised assets are excluded in performance calculation. At any given point in time an investment may be worth more or less than the original purchase price. RECFn/FD 5CAN6'E� JAN 0 9 2015 CITY 11,111)l GARRISON F I N A N C I A L City of Fayetteville Police Pension and Relief Fund Charles Schwab #2448-5630 Quarter Ending December 31, 2014 Garrison Financial PORTFOLIO SUMMARY City of Fayetteville Police Pension and Relief Fund Charles Schwab #2448-5630 December 31, 2014 ■ Cash & Equivalents 460,705.25 ■ Account Fixed Income 2,312,003.00 ■ Account Equities 4,267,296.05 CORPORATE BONDS 125,000 Garrison Financial 9993 124,913.17 99.54 124,421.62 PORTFOLIO APPRAISAL 1.350 1,68750 15 Communications City of Fayetteville Police Pension and Relief Fund Charles Schwab #2448-5630 1.350% Due 06-09-17 December 31, 2014 Adj Unit Total Adjusted Market Pct. Unit Annual Lab Corp, of America Quantity Security Cost Cost Price Value Assets Income _Income Yield CASH AND EQUIVALENTS 3,125.00 26 2.500% Due 11-01-18 Schwab Advisor Cash Res - 460,705.25 460,705 25 6.5 0.010 4607 0.0 Premier 125,000 Kroger Company J 125,279.60 99.98 460,705.25 460,705.25 6.5 1.8 4607 0.0 TREASURY NOTE 2.300% Due 01-15-19 700,000 US Treasury Note 101.65 711,555.51 109.62 767,375 00 109 4 000 28,000.00 1.3 4.000% Due 08-15-18 Honeywell International 112.68 140,847.36 112.09 Accrued Interest 10,500.00 0-1 6,250.00 1.9 _ 5.000% Due 02-15-19 711,555.51 777,875.00 11.0 28,000-00 1.3 AGENCY BONDS 125,000 Union Pacific Corp. 200,000 Federal Farm Credit 100.00 199,993.59 105.80 211,604.60 3-0 6.125 12,250 00 0.3 Bank 2,812.50 1.9 2.250% Due 02-15-19 6,125% Due 12-29-15 Accrued Interest _ 68,06 0.0 Walt Disney Co 99.89 124,86258 99.53 199,99359 211,672.66 3.0 1.8 12,250.00 0.3 CORPORATE BONDS 125,000 Verizon 9993 124,913.17 99.54 124,421.62 18 1.350 1,68750 15 Communications 1.350% Due 06-09-17 125,000 Lab Corp, of America 101 15 126,443.54 99.65 124,563 00 1.8 2.500 3,125.00 26 2.500% Due 11-01-18 125,000 Kroger Company 10022 125,279.60 99.98 124,970.50 1.8 2.300 2,875.00 2.3 2.300% Due 01-15-19 125,000 Honeywell International 112.68 140,847.36 112.09 140,11450 2.0 5.000 6,250.00 1.9 5.000% Due 02-15-19 125,000 Union Pacific Corp. 101.71 127,141.13 101.27 126,591.50 1.8 2.250 2,812.50 1.9 2.250% Due 02-15-19 125,000 Walt Disney Co 99.89 124,86258 99.53 124,415.25 1.8 1.850 2,31250 20 1.850%Due 05-30-19 Accrued Interest _ 5,565.97 _ 0.1 769,487.39 770,642.35 10.9 19,062.50 2.1 CONVERTIBLE PREFERRED 300 Bunge 4-875%Count. 10863 32,588.95 112.50 33,750.00 05 4.875 1,462.50 4.3 Pfd. _ 32,588.95 33,750.00 0.5 1,462.50 4,3 COMMON STOCK 2,000 AT&T, Inc. 2824 56,475-88 33.59 67,180.00 1,0 1.880 3,760.00 5.6 905 AbbVie, Inc 66.58 60,253.90 65.44 59,223.20 0,8 1960. 1,773.80 3.0 1,965 Abbott Laboratories 40.06 78,727,14 45,02 88,46430 1.3 0960 1,886.40 2.1 120 Alliance Data Systems 283-98 34,077.36 286.05 34,326.00 0.5 0.000 0.00 0.0 625 Amgen, Inc. 114.33 71,456.06 159,29 99,556,25 1.4 3.160 1,975.00 2.0 825 Anadarko Petroleum 85-82 70,805.10 82.50 68,062.50 1.0 1.080 891.00 13 500 Ansys, Inc. 75.67 37,836.95 82.00 41,000.00 0.6 0.000 0.00 0.0 1,680 Apple Computer 72.69 122,12154 110.38 185,438,40 2.6 1880 3,158.40 1.7 125 AutoZone, Inc. 51609 64,511.70 619.11 77,388.75 1.1 0.000 0,00 0.0 1,350 BCE, Inc. Cl F 2440 32,934.20 45.86 61,911.00 0.9 2.520 3,402.00 5.5 350 Becton, Dickinson & 113.97 39,889.45 139.16 48,706,00 0.7 2.400 840.00 1.7 Company 1,500 Broadridge Financial 41.33 62,000.35 46-I8 69,270.00 10 1.080 1,620.00 2.3 Solutions 675 Brown-Forman Corp. 88-81 59,946.93 87.84 59,292.00 0-8 1-260 85050 1.4 2 Garrison Financial PORTFOLIO APPRAISAL City of Fayetteville Police Pension and Relief Fund Charles Schwab #2448-5630 December 31, 2014 Adj Unit Total Adjusted Market Pct. Unit Annual Quantity Security Cost Cost Price Value Assets Income Income Vield 3,000 CSX Corporation 28.88 86,62740 3623 108,690-00 1.5 0.640 1,920.00 1.8 400 Chevron Corporation 8521 34,084 61 112.18 44,872.00 0.6 4 280 1,71200 3 8 4,300 Cisco Systems, Inc. 19.87 85,424.73 27.81 119,604.50 1.7 0 760 3,268.00 2.7 1,400 Coca-Cola Company 30-98 43,374.60 4222 59,108.00 0.8 1.220 1,708.00 2.9 680 Compass Minerals Intl 8789 59,765.06 86.83 59,044.40 0.8 2 400 1,632.00 2.8 1,150 ConocoPhillips 55.58 63,918.42 6906 79,419.00 11 2.920 3,35800 42 2,000 EMC Corp. 25.64 51,28221 2974 59,480.00 08 0.460 920-00 l.5 830 Eastman Chemical 86.14 71,495,64 75.86 62,963.80 0.9 1.600 1,328,00 2.1 1,310 Emerson Electric 68.00 89,080.00 61.73 80,866.30 1.1 1.880 2,46280 3.0 1,750 Ensco Plc. 50.34 88,100,71 29.95 52,412.50 0.7 3.000 5,250.00 10.0 2,000 Freeport-McMoRan 34.88 69,754,00 23.36 46,720.00 0.7 1.250 2,500.00 54 Copper & Gold, Inc. 3,825 General Electric Co. 19.53 74,709.32 25.27 96,657 75 1.4 0.920 3,519.00 36 1,200 GlaxoSmithKline Plc. 50.10 60,124.15 42.74 51,288.00 0.7 2.650 3,180.00 6.2 3,250 Intel Corp, 21 12 68,641 12 36.29 117,942.50 1.7 0 960 3,120.00 2.6 1,250 Johnson & Johnson 64.70 80,869.69 104.57 130,712.50 1 9 2.800 3,500.00 2.7 5,650 Keycorp 13.42 75,839-95 13.90 78,535.00 11 0.260 1,469.00 1.9 1,000 Lincoln Electric 6721 67,209.18 69.09 69,090.00 1.0 1.160 1,160.00 1.7 635 McDonald's Corp. 94.59 60,065.98 9370 59,499.50 0,8 3.400 2,159.00 3.6 1,100 Merck & Co., Inc 5139 56,525.78 5679 62,469.00 0,9 1.800 1,980.00 3.2 2,825 Microsoft Corp. 37.81 106,815.30 46.45 131221.25 1.9 1.240 3,503.00 2.7 800 National Oilwell Varco 85.35 68,280.15 65.53 52,424.00 0.7 1.840 1,472,00 2.8 1,750 Noble Corp 27.96 48,930.13 16.57 28,997.50 04 1.500 2,625.00 9.1 3,650 Pfizer, Inc 22,61 82,529.75 31.15 113,697.50 1.6 1,120 4,088.00 3-6 830 Phillips 66 72.18 59,911,86 71,70 59,511.00 0.8 2.000 1,660.00 2.8 1,000 Procter & Gamble Co. 5942 59,417.61 91.09 91,090.00 1.3 2.570 2,570.00 2.8 1,000 Qualcomm, Inc 6362 63,616 39 74.33 74,330,00 1 1 1.680 1,680.00 23 2,790 Raven Industries, Inc. 2837 79,148 48 25.00 69,750.00 1.0 0.520 1,450.80 2.1 700 Sanofi ADR 55.71 38,995 10 45.61 31,927.00 0.5 1-600 1,120.00 3,5 900 St. Jude Medical, Inc 66.56 59,900.53 65 03 58,527,00 0.8 1.080 972.00 1.7 1,055 Syngenta AG ADR 71.44 75,370 40 6424 67,773.20 1.0 1.910 2,015.05 3.0 465 Valmont Industries 128.60 59,79726 12700 59,055.00 0.8 1.500 697.50 1.2 1,150 Wal-Mart Stores, Inc. 62.11 71,423.42 85 88 98,762.00 1.4 1.920 2,208.00 22 2,000 Waste Management 4221 84,414.32 5132 102,640 00 1.5 1 500 3,000 00 29 3,036,479.81 3,438,898.60 48.8 95,364 25 2.8 MUTUAL FUNDS 2,248.991 Dodge & Cox Intl Stk 45.41 102,132.74 42.11 94,705.01 1 3 0.970 2,181.52 2.3 2,587.463 Oppenheimer 39.33 101,776.46 35.52 91,906-69 1.3 0.100 258.75 03 Developing Mkts A 203,909 20 186,611.70 2.7 2,44027 1.3 UNIT TRUSTS 5,000 Alerian MLP 1753 87,642 21 17.52 87,600.00 12 1 130 5,650-00 6.4 3,775 Sector SPDR Frei 21.82 82,369.05 24.73 93,355.75 13 0.400 1,510.00 1.6 Select Shs 4,000 Sector SPDR Utility 34.14 136,571 82 4722 188,880.00 27 1 510 6,040.00 3.2 Select Shs 3,000 iShares DJ Select Div 52.23 156,695.97 79.40 238,200.00 3.4 2.410 7230 00 3.0 3,300 iShares IBOXX Inv 109.72 362,065.36 119.41 394,053.00 5.6 4 050 13,365 00 34 Grade Corp Bond 4,000 iShares S&P US Pfd Stk 38.34 153,340.30 39.44 157,760.00 2.2 2.490 9,960-00 6-3 978,684.72 1,159,848.75 16.5 43,755-00 3.8 TOTAL PORTFOLIO 6,393,404.42 7,040,004.30 100.0 202,380.59 2.4 2 Garrison Financial PURCHASE AND SALE City of Fayetteville Police Pension and Relief Fund Charles Schwab #2448-5630 From 01-01-14 To 12-31-14 Trade Settle Unit Date Date Quantity Security Price Amount PURCHASES 12-31-14 01-06-15 905 AbbVie,Inc. 66.58 60,253.90 I1-06-14 11-12-14 120 Alliance Data Systems 283.98 34,077.36 10-14-14 10-17-14 700 Anadarko Petroleum 86.53 60,570.15 12-31-14 01-06-15 125 Anadarko Petroleum 81.88 10,234.95 09-25-14 09-30-14 500 Ansys,Inc. 75.67 37,836.95 07-24-14 07-29-14 125 AutoZone, Inc. 516.09 64,511.70 09-25-14 09-30-14 100 Becton, Dickinson & Company 113.97 11,397.46 09-25-14 09-30-14 100 Becton, Dickinson & Company 113.97 11,397.46 09-25-14 09-30-14 100 Becton, Dickinson & Company 113.96 11,396.36 09-25-14 09-30-14 50 Becton, Dickinson & Company 113.96 5,698.17 07-24-14 07-29-14 100 Broadridge Financial Solutions 41.33 4,133.50 07-24-14 07-29-14 100 Broadridge Financial Solutions 41.33 4,133.49 07-24-14 07-29-14 300 Broadridge Financial Solutions 41.33 12,400.49 07-24-14 07-2944 700 Broadridge Financial Solutions 41.33 28,934.48 07-24-14 07-29-14 300 Broadridge Financial Solutions 41.33 12,398.39 12-31-14 01-06-15 675 Brown-Forman Corp. 88.81 59,946.93 09-25-14 09-30-14 200 Bunge 4.875% Conv.Pfd. 108.63 21,725.97 09-25-14 09-30-14 100 Bunge 4.875% Conv.Pfd. 108.63 10,862.98 12-31-14 01-06-15 300 Compass Minerals Int'I 87.89 26,367.65 12-31-14 01-06-15 318 Compass Minerals Int'l 87.89 27,949.71 12-31-14 01-06-15 62 Compass Minerals Int'l 87.87 5,447.70 09-25-14 09-26-14 2,198.702 Dodge & Cox Intl Stk 45.48 100,000.00 07-24-14 07-29-14 700 Eastman Chemical 87.89 61,526.35 12-31-14 01-06-15 130 Eastman Chemical 76.69 9,969.29 07-24-14 07-29-14 1,200 GlaxoSmithKline Plc. 50.10 60,124.15 12-31-14 01-06-15 125,000 Honeywell International 112.69 140,857.50 5.000% Due 02-15-19 09-22-14 09-25-14 125,000 Kroger Company 100.24 125,297.84 2.300% Due 01-15-19 09-23-14 09-26-14 125,000 Lab Corp. of America 101.23 126,542.12 2.500% Due 11-01-18 07-24-14 07-29-14 100 Lincoln Electric 67.20 6,719.80 07-24-14 07-29-14 100 Lincoln Electric 67.20 6,719.80 07-24-14 07-29-14 6 Lincoln Electric 67.20 403.18 07-24-14 07-29-14 100 Lincoln Electric 67.20 6,719.80 07-24-14 07-29-14 98 Lincoln Electric 67.20 6,585.40 07-24-14 07-29-14 200 Lincoln Electric 67.20 13,439.59 07-24-14 07-29-14 100 Lincoln Electric 67.22 6,721.90 07-24-14 07-29-14 100 Lincoln Electric 67.22 6,721.90 07-24-14 07-29-14 100 Lincoln Electric 67.23 6,722.90 07-24-14 07-29-14 96 Lincoln Electric 67.24 6,454.91 12-31-14 01-06-15 635 McDonald's Corp. 94.59 60,065.98 Garrison Financial PURCHASE AND SALE City of Fayetteville Police Pension and Relief Fund Charles Schwab #2448-5630 From 01-01-14 To 12-31-14 Trade Settle Unit Date Date Quantity Security Price Amount 07-24-14 07-29-14 800 National Oilwell Varco 85.35 68,280.15 09-25-14 09-26-14 2,539.360 Oppenheimer Developing Mkts A 39.38 100,000.00 12-31-14 01-06-15 70 Phillips 66 72.18 5,052.30 12-31-14 01-06-15 34 Phillips 66 72.18 2,453.98 12-31-14 01-06-15 200 Phillips 66 72.18 14,435.16 12-31-14 01-06-15 100 Phillips 66 72.18 7,217.58 12-31-14 01-06-15 100 Phillips 66 72.19 7,218.98 12-31-14 01-06-15 326 Phillips 66 72.19 23,533.86 07-24-14 07-29-14 200 Raven Industries, Inc. 29.53 5,906.90 07-24-14 07-29-14 140 Raven Industries, Inc. 29.55 4,137.63 07-24-14 07-29-14 760 Raven Industries, Inc. 29.58 22,483.44 07-24-14 07-29-14 900 Raven Industries, Inc. 29.56 26,604.42 12-31-14 01-06-15 50 Raven Industries, Inc. 25.28 1,264.07 12-31-14 01-06-15 25 Raven Industries, Inc. 25.28 632.03 12-31-14 01-06-15 100 Raven Industries, Inc. 25.29 2,529.13 12-31-14 01-06-15 100 Raven Industries, Inc. 25.29 2,529.13 12-31-14 01-06-15 100 Raven Industries, Inc. 25.30 2,530.13 12-31-14 01-06-15 415 Raven Industries, Inc. 25.38 10,531.60 09-25-14 09-30-14 700 Sanofi ADR 55.71 38,995.10 12-31-14 01-06-15 900 St. Jude Medical, Inc. 66.56 59,900.53 07-24-14 07-29-14 100 Syngenta AG ADR 72.60 7,259.99 07-24-14 07-29-14 100 Syngenta AG ADR 72.60 7,259.59 07-24-14 07-29-14 67 Syngenta AG ADR 72.60 4,863.93 07-24-14 07-29-14 100 Syngenta AG ADR 72.60 7,259.59 07-24-14 07-2944 100 Syngenta AG ADR 72.60 7,259.59 07-24-14 07-29-14 100 Syngenta AG ADR 72.60 7,259.59 07-24-14 07-29-14 100 Syngenta AG ADR 72.60 7,259.62 07-24-14 07-29-14 100 Syngenta AG ADR 72.61 7,260.99 07-24-14 07-29-14 33 Syngenta AG ADR 72.62 2,396.46 07-24-14 07-29-14 100 Syngenta AG ADR 72.61 7,261.19 12-31-14 01-06-15 155 Syngenta AG ADR 64.71 10,029.86 12-31-14 01-06-15 125,000 Union Pacific Corp. 101.71 127,142.50 2.250% Due 02-15-19 12-31-14 01-06-15 465 Valmont Industries 128.60 59,797.26 09-22-14 09-25-14 125,000 Verizon Communications 99.92 124,903.50 1.350% Due 06-09-17 12-31-14 01-06-15 125,000 Walt Disney Co. 99.89 124,862.50 1.850% Due 05-30-19 2,191,580.44 REINVESTED DIVIDENDS 12-19-14 12-19-14 50.289 Dodge & Cox Intl Stk 42.41 2,132.74 12-05-14 12-05-14 41.095 Oppenheimer Developing Mkts A 36.93 1,517.65 Garrison Financial PURCHASE AND SALE City of Fayetteville Police Pension and Relief Fund Charles Schwab #2448-5630 From 01-01-14 To 12-31-14 Trade Settle Unit Date Date Quantity Security Price Amount 12-05-14 12-05-14 7.008 Oppenheimer Developing Mkts A 36.93 258.81 3,909.20 SALES 07-24-14 07-29-14 1,000 BCE, Inc. Cl F 46.20 46,201.03 07-28-14 07-31-14 10,000 BlackRock Build America Bond Trust 21.87 218,716.22 09-25-14 09-30-14 400 Chevron Corporation 120.88 48,350.78 07-24-14 07-29-14 750 Coca-Cola Company 41.06 30,797.59 07-24-14 07-29-14 600 Coca-Cola Company 41.06 24,638.08 07-24-14 07-29-14 500 ConocoPhillips 86.41 43,205.59 07-24-14 07-29-14 100 EMC Corp. 28.92 2,891.54 07-24-14 07-29-14 100 EMC Corp. 28.92 2,891.54 07-24-14 07-29-14 100 EMC Corp. 28.92 2,891.54 07-24-14 07-29-14 100 EMC Corp. 28.92 2,891.54 07-24-14 07-29-14 300 EMC Corp. 28.92 8,674.66 07-24-14 07-29-14 100 EMC Corp. 28.92 2,891.54 07-24-14 07-29-14 100 EMC Corp. 28.91 2,891.44 07-24-14 07-29-14 100 EMC Corp. 28.91 2,891.44 09-25-14 09-30-14 100 General Electric Co. 25.55 2,555.14 09-25-14 09-30-14 375 General Electric Co. 25.55 9,581.80 09-25-14 09-30-14 125 General Electric Co. 25.55 3,193.93 09-25-14 09-30-14 100 General Electric Co. 25.55 2,555.14 09-25-14 09-30-14 100 General Electric Co. 25.55 2,555.14 09-25-14 09-30-14 200 General Electric Co. 25.55 5,110.29 09-25-14 09-30-14 2,000 General Electric Co. 25.56 51,110.91 12-31-14 01-06-15 1,953 Guggenheim Multi -Asset Income 22.44 43,826.30 12-31-14 01-06-15 1,000 Guggenheim Multi -Asset Income 22.44 22,440.50 12-31-14 01-06-15 1,000 Guggenheim Multi -Asset Income 22.44 22,440.50 12-31-14 01-06-15 1,900 Guggenheim Multi -Asset Income 22.44 42,636.96 12-31-14 01-06-15 1,900 Guggenheim Multi -Asset Income 22.44 42,636.96 12-31-14 01-06-15 1,997 Guggenheim Multi -Asset Income 22.44 44,813.69 12-31-14 01-06-15 100 BM Corporation 161.16 16,116.46 12-31-14 01-06-15 100 IBM Corporation 161.16 16,116.47 07-24-14 07-29-14 100 Merck & Co., Inc. 58.14 5,814.47 07-24-14 07-29-14 900 Merck & Co., Inc. 58.14 52,326.69 09-25-14 09-30-14 355 Occidental Petroleum 96.92 34,405.17 09-25-14 09-30-14 145 Occidental Petroleum 96.92 14,052.81 10-14-14 10-17-14 630 Occidental Petroleum 87.53 55,145.07 08-05-14 08-08-14 0 Paragon Offshore PLC 12.62 3.47 09-25-14 09-30-14 583 Paragon Offshore PLC 6.44 3,751.90 07-24-14 07-29-14 600 Procter & Gamble Co. 80.21 48,124.39 07-24-14 07-29-14 300 SPDR S&P Homebuilders 31.03 9,308.20 07-24-14 07-29-14 200 SPDR S&P Homebuilders 31.03 6,205.26 Trade Date 07-24-14 07-24-14 07-24-14 07-24-14 12-31-14 12-31-14 09-25-14 09-25-14 12-31-14 Garrison Financial PURCHASE AND SALE City of Fayetteville Police Pension and Relief Fund Charles Schwab #2448-5630 From 01-01-14 To 12-31-14 Settle Unit Date Quantity Security Price 07-29-14 07-29-14 07-29-14 07-29-14 01-06-15 01-06-15 09-30-14 09-30-14 01-02-15 300 650 700 100 3,950 7,375 100 3,400 150,000 07-24-14 07-29-14 100 07-24-14 07-29-14 100 07-24-14 07-29-14 500 07-24-14 07-29-14 200 07-24-14 07-29-14 100 07-24-14 07-29-14 100 07-24-14 07-29-14 100 07-24-14 07-29-14 1,800 07-28-14 07-31-14 5,000 12-31-14 01-06-15 100 12-31-14 01-06-15 1,100 12-31-14 01-06-15 500 SPDR S&P Homebuilders SPDR S&P Homebuilders SPDR S&P Homebuilders SPDR S&P Homebuilders Sector SPDR Fncl Select Shs Sector SPDR Fuel Select Shs Sector SPDR Utility Select Shs Sector SPDR Utility Select Shs US Treasury Note 5.125% Due 05-15-16 iShares DJ Select Div iShares DJ Select Div iShares DJ Select Div iShares DJ Select Div iShares DJ Select Div iShares DJ Select Div iShares DJ Select Div iShares DJ Select Div iShares IBOXX Inv Grade Corp Bond iShares IBOXX Inv Grade Corp Bond iShares IBOXX Inv Grade Corp Bond iShares IBOXX Inv Grade Corp Bond 31.03 31.03 31.03 31.03 25.01 25.01 41.78 41.78 106.36 75.88 75.88 75.88 75.88 75.88 75.88 75.88 75.88 119.28 119.52 119.52 119.52 Amount 9,307.90 20,167.11 21,718.44 3,102.63 98,788.15 184,446.22 4,178.15 142,043.57 159,535.50 7,587.73 7,587.73 37,938.67 15,175.26 7,587.63 7,587.63 7,587.73 136,579.22 596,385.87 11,952.41 131,475.40 59,761.55 2,668,146.65 Garrison Financial REALIZED GAINS AND LOSSES City of Fayetteville Police Pension and Relief Fund Charles Schwab #2448-5630 From 01-01-14 Through 12-31-14 Gain Or Loss _ Open Close Cost Amort. or Date Date Quantity Security Basis Accretion Proceeds Short Term Long Term 06-09-14 07-24-14 300 SPDR S&P Homebuilders 9,886.68 9,30820 -578.48 06-09-14 07-24-14 200 SPDR S&P Homebuilders 6,591.12 6,20526 -385.86 08-08-11 07-24-14 100 iShares DJ Select Div 5,22320 7,587.73 2,364.53 08-08-11 07-24-14 100 iShares DI Select Div 5,223.20 7,587.73 2,36453 08-08-11 07-24-14 500 iShares DJ Select Div 26,11600 37,938.67 11,822.67 08-08-11 07-24-14 200 iShares Dl Select Div 10,446.40 15,175.26 4,728 86 06-09-14 07-24-14 300 SPDR S&P Homebuilders 9,886.68 9,307-90 -578.78 06-09-14 07-24-14 650 SPDR S&P Homebuilders 21,421.14 20,167.11 -1,254-03 06-09-14 07-24-14 700 SPDR S&P Homebuilders 23,068 92 21,718 44 -1,35048 06-09-14 07-24-14 100 SPDR S&P Homebuilders 3,295.56 3,102.63 -19293 08-08-11 07-24-14 100 iShares DJ Select Div 5,223.20 7,587.63 2,364.43 08-08-11 07-24-14 100 iShares DJ Select Div 5,223.20 7,587.63 2,364.43 08-08-11 07-24-14 100 iShares DJ Select Div 5,223.20 7,587.73 2,364.53 08-08-I1 07-24-14 1,800 iShares DJ Select Div 94,017.58 136,579.22 42,561-63 05-20-10 07-24-14 500 ConocoPhillips 27,790.62 43,20559 15,414.97 01-13-14 07-24-14 100 Merck & Co., Inc 5,13871 5,81447 67576 01-13-14 07-24-14 900 Merck & Co_, Inc. 46,248 36 52,326.69 6,078.33 02-12-14 07-24-14 100 EMC Corp. 2,564.11 2,891-54 327.43 02-12-14 07-24-14 100 EMC Corp. 2,56411 2,891-54 327.43 02-12-14 07-24-14 100 EMC Corp. 2,564.11 2,891.54 327.43 03-19-09 07-24-14 600 Procter & Gamble Co. 35,65056 48,124.39 12,47383 02-12-14 07-24-14 100 EMC Corp. 2,564.11 2,891.54 327.43 02-12-14 07-24-14 300 EMC Corp. 7,69233 8,674.66 98233 02-12-14 07-24-14 100 EMC Corp. 2,564.11 2,89154 327.43 02-12-14 07-24-14 100 EMC Corp. 2,564.11 2,89144 327.33 02-12-14 07-24-14 100 EMC Corp. 2,564,11 2,891.44 327.33 08-21-09 07-24-14 1,000 BCE, Inc. CI F 24,395.70 46,201.03 21,805 33 06-26-14 07-24-14 750 Coca-Cola Company 28,956,39 30,797.59 1,841.20 05-19-10 07-24-14 600 Coca-Cola Company 18,589,11 24,638.08 6,048-97 10-06-09 07-28-14 5,000 iShares IBOXX Inv Grade 548,583.88 596,385,87 47,801.99 Corp Bond 08-23-13 07-28-14 10,000 BlackRock Build America 189,745.61 218,716.22 28,970.61 Bond Trust 06-10-14 08-05-14 0 Paragon Offshore PLC 3.34 347 0.13 12-20-10 09-25-14 100 Sector SPDR Utility Select 3,414,30 4,178.15 763,85 Sha 12-20-10 09-25-14 3,400 Sector SPDR Utility Select 116,086.05 142,043.57 25,957 52 Shs 06-05-09 09-25-14 400 Chevron Corporation 34,084.61 48,350.78 14,266.16 06-10-14 09-25-14 583 Paragon Offshore PLC 7,072.51 3,751.90 -3,320.61 06-26-14 09-25-14 100 General Electric Co. 2,67000 2,555.14 -114.86 06-26-14 09-25-14 375 General Electric Co. 10,012 50 9,581.80 -430.70 12-09-09 09-25-14 125 General Electric Co. 2,441.48 3,193.93 752.45 12-09-09 09-25-14 100 General Electric Cc 1,953.18 2,555 14 601-96 12-09-09 09-25-14 100 General Electric Co. 1,953 18 2,555.14 601.96 06-26-14 09-25-14 355 Occidental Petroleum 34,237-76 34,405.17 16741 03-27-14 09-25-14 145 Occidental Petroleum 13,579.63 14,052.81 473-18 12-09-09 09-25-14 200 General Electric Co 3,90637 5,11029 1,203,92 12-09-09 09-25-14 2,000 General Electric Co- 39,063 70 51,110,91 12,047 21 03-27-14 10-14-14 630 Occidental Petroleum 59,001.14 55,145,07 -3,856.07 07-18-06 12-31-14 150,000 US Treasury Note 150,000.00 coo 159,535.50 9,53550 5.125% Due 05-15-16 10-06-09 12-31-14 100 iShares IBOXX Inv Grade 10,971.68 11,952 41 980.73 Corp Bond Garrison Financial REALIZED GAINS AND LOSSES City of Fayetteville Police Pension and Relief Fund Charles Schwab #2448-5630 From 01-01-14 Through 12-31-14 Open Close CAPITAL GAIN DISTRIBUTIONS Loss _ Date Date Quantity Security 10-06-09 12-31-14 1,100 iShares IBOXX Inv Grade 120,688.45 131,475 40 Corp Bond 10-06-09 12-31-14 500 iShares IBOXX Inv Grade 42,814.06 43,82630 Corp Bond 01-13-I1 12-31-14 1,953 Guggenheim Multi -Asset 21,922.20 22,440.50 Income 01-13-I1 12-31-14 1,000 Guggenheim Multi -Asset 41,652.19 42,636.96 Income 01-13-11 12-31-14 1,000 Guggenheim Multi -Asset 17,238-85 16,116.46 Income 01-13-11 12-31-14 1,900 Guggenheim Multi -Asset 88,077.72 98,788.15 10,710.43 Income 01-13-11 12-31-14 1,900 Guggenheim Multi -Asset 75,71773 Income 01-13-11 12-31-14 1,997 Guggenheim Multi -Asset 2,344,800.99 0.00 2,668,146.65 63,654.93 Income 02-12-10 12-31-14 100 IBM Corporation 02-12-10 12-31-14 100 IBM Corporation 06-26-14 12-31-14 3,950 Sector SPDR Fncl Select Shs 02-10-14 12-31-14 7,375 Sector SPDR Fncl Select Shs TOTAL GAMS TOTAL LOSSES TOTAL REALIZED GAIN/LOSS 323,345.66 CAPITAL GAIN DISTRIBUTIONS Loss _ 12-05-14 Oppenheimer Developing Mkts A TOTAL DISTRIBUTIONS 1,517.65 TOTAL GAIN/LOSS 324,863 31 2 1,51765 0.00 1,517.65 63,654.93 261,208.38 Gain Or Loss _ Cost Amort. or Basis Accretion Proceeds Short Term Long Term 120,688.45 131,475 40 10,786 95 54,858 39 59,761.55 4,903 16 42,814.06 43,82630 1,012.24 21,922 20 22,440.50 51830 21,922.20 22,440.50 51830 41,652.19 42,636.96 984.77 41,652.19 42,636.96 984.77 43,778.64 44,813,69 1035.05 17,238-85 16,116.46 -1,122.39 t7,238.85 16,11647 -1,12238 88,077.72 98,788.15 10,710.43 160,919.68 184,446.22 23,526.54 _ 75,71773 261,935.50 -12,062.81 _ -2,244.77 2,344,800.99 0.00 2,668,146.65 63,654.93 259,690-73 2 1,51765 0.00 1,517.65 63,654.93 261,208.38 Garrison Financial PERFORMANCE SUMMARY GROSS OF FEES City of Fayetteville Police Pension and Relief Fund Charles Schwab #2448-5630 December 31, 2014 PORTFOLIO COMPOSITION CHANGE IN PORTFOLIO TIME WEIGHTED RETURN Annualized Quarter Last 12 Inception To Date Months To Date Account 1.53 0.65 40% Fixed Income/60% 3.31 4.01 Equity Blended Index Account Fixed Income 1.02 - 1.08 Barclays Capital Intermed 0.89 0.86 Govt/Credit Account Equities 1.95 - 0.42 S&P 500 4.93 6.12 All "Account' returns refer to your portfolio. Benchmark indexes are also listed for reference. All returns are reported as percentages. This report is calculated using industry -standard accounting and performance calculation methodologies and is generated by our Axys portfolio accounting software. Calculations are a time -weighted total return series based on monthly valuations, including all cash and equivalents. All calculations are done based on trade date, employing the accrual method of accounting and include cash, interest, dividends and realized and unrealized gains and losses. Performance is adjusted to accurately reflect portfolio deposits and withdrawals. Results are presented after transaction costs but before management fees. Inception -to -date returns are annualized numbers, except for accounts under management less than one year. Unsupervised assets are excluded in performance calculation. At any given point in time an investment may be worth more or less than the original purchase price. Market Pct. Value Assets Yield Cash & Equivalents 460,705.25 6.5 0.0 Portfolio Value on 06-30-14 7,162,197.81 Account Fixed 2,312,003.00 32.8 2.2 Accrued Interest 11,436.95 Income Account Equities 4,267,296.05 60.6 2.8 Net Additions/Withdrawals -178,046.55 Account 0.00 0.0 Realized Gains -49,492.31 Commodities Unrealized Gains -16,481.62 Income Received 106,352.76 Change in Accrued Interest 4,697.07 Portfolio Value on 12-31-14 7,023,870.27 Accrued Interest 16,134.03 Total 7,040,004.30 100.0 2.4 7,040,004.30 TIME WEIGHTED RETURN Annualized Quarter Last 12 Inception To Date Months To Date Account 1.53 0.65 40% Fixed Income/60% 3.31 4.01 Equity Blended Index Account Fixed Income 1.02 - 1.08 Barclays Capital Intermed 0.89 0.86 Govt/Credit Account Equities 1.95 - 0.42 S&P 500 4.93 6.12 All "Account' returns refer to your portfolio. Benchmark indexes are also listed for reference. All returns are reported as percentages. This report is calculated using industry -standard accounting and performance calculation methodologies and is generated by our Axys portfolio accounting software. Calculations are a time -weighted total return series based on monthly valuations, including all cash and equivalents. All calculations are done based on trade date, employing the accrual method of accounting and include cash, interest, dividends and realized and unrealized gains and losses. Performance is adjusted to accurately reflect portfolio deposits and withdrawals. Results are presented after transaction costs but before management fees. Inception -to -date returns are annualized numbers, except for accounts under management less than one year. Unsupervised assets are excluded in performance calculation. At any given point in time an investment may be worth more or less than the original purchase price. 0001, GARRISON F I N A N C I A L January 7, 2015 City of Fayetteville Police Pension and Relief Fund Charles Schwab #2448-5630 113 West Mountain Fayetteville, AR 72701 STATEMENT OF MANAGEMENT FEES For The Period October 1 through December 31, 2014 Portfolio Value as of 09-30-14 7,113,290 Portfolio Value as of 10-31-14 7,088,665 Portfolio Value as of 11-30-14 7,103,194 Portfolio Value as of 12-31-14 7,040,004 Average of 4 Months 7,086,288 7,086,288 @ 0.5000% per annum 8,858 Quarterly Management Fee 8,858 TOTAL DUE AND PAYABLE 8,858 This statement is for informational purposes only. As you requested, the fee will be automatically deducted from your account. Please be advised that it is the responsibility of the client to verify the accuracy of each fee calculation. The custodian will not determine whether the fee is properly calculated. CL1145.99 -1.79 .--. At 14:06 d Vol j37099 0 ■Lest Price 45.9^ T High on 06/20/14 IOJ.36 �Avereee 90.39 1 Low on 01/13/15 45.89 .1 S.,),) /,.16. uo 1. X] 9 Prev 47.78 47,35 Hi 49.!)9 Lo 45.617 ODenInt T> 4.1 Cowpare Mov. 110 I. F70 i , 50 ryY� . _ \.. • ly I y ,. III lil _ v1+1lVll� 0! it _ t .i��,,? �[!? �Ni µ . T Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan 2014 2015 Australia 61 2 9777 8600 Brazil 5511 2395 9000 Europe 44 20 7330 7500 Germany 49 69 9204 1210 Hong Kong 052 2977 6000 Japan 81 3 3201 0900 Singapore 65 6212 1000 U.S. 1 212 318 2000 copyright 2015 Bloomberg Finance L.P. SH 546930 EST GMT -S,00 H433-3334-3 22 -Jan -2015 14:16,23 hit pac- fo_ a'I, I' r! ':e , ren.E,ns. -- ]n Rt 1-1kC-cl Rf_}tuin-: Index Index: SPXL1 A11 rGrG oup Performances 1 10 Groups _;tar: Date Enc Date 12,1' 3 1/ 13 12/31/14 1848.36 - 2058.90 Return: .- 11.39$_ _ -1.91 L1. -9.99 1 G ro u PEP PAGE i' Base Currency USD INDEX �) S&P SOC HEALTH, CrRE IDX S&P 500 INFO TECH INDEX 4 S&P 500 FINANCIALS INDEX S&P 5CO CONS STuPLES IDX Q S&P 5C0 CONS DISCU T IDX n S&P SCO INDUSTR:,ALS IDX S&P 5O0 P-IATERIAI-S INDEX; S&P 5CO TELECOM SERV IDX 10 S&P 500 ENERGY INDEX 24.29 23.30 1 1sT 13.10 12.87 1 8.05 7.52 C 4.68 Australia 61 2 9777 8600 Brazil 5511 2395 9000 Europe 44 20 7330 7500 Germany 49 69 9204 1210 Hong Kong 652 2977 6000 Japan 81 3 3201 8900 Singapore 65 6212 1000 U.S. 1 212 318 2000 Copyright 2015 Bloomberg Finance L.P. SN 546930 EST BMT -5-00 H433-3334-3 22 -Jon -2015 14-17.25 T 2 a 11/15/24 1103-04 08 I.tl, u:;1/1(1t 0,1 1.'ml-/L.<<'s'1 --x - I;:1.` 1'1-11 BGN_ Compare Mov. ■Mld P,i[o 1.900 T High on 01/22/11 3..66 tA....e 2A 75 - 1low on o1/Is/1s 1a16 2.800 2.400 IIr U I 11l F2.200 ...1.800 1 )an Feb Mar Apr May Jun Jul Aug Sep Octl Nov Dec ]an 2014 2014 1 2015 Austro Ila 61 2 9777 8600 Brosll 5511 2396 9000 Eurams 44 20 7330 7500 Bermon9 49 69 9204 1210 Hone Kone 952 2977 6000 dapan 81 3 3201 8900 9lnoopore 55 6212 1000 11,3. 1 212 310 2000 Copurleht ZO15 Bloomberg Finance L.P. SN 546930 EST OHT-5,00 H4$3-3334-3 22-7an-2015 14,16,04