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Home My WebLink About2023-04-20 - Agendas - FinalLioneld Jordan Chairman Kara Paxton Treasurer Eldon Roberts Secretary Retired Position 1 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 Agenda April 20, 2023 A meeting of the Fayetteville Policemen's Pension and Relief Fund Board of Trustees will be held on April 20, 2023 at 3:00 p.m. in Room 326 of the City Administration Building located at 113 West Mountain Street, Fayetteville, Arkansas. Roll Call Garrison Financial: • Quarterly reports ending December 31, 2022 & March 31, 2023 Minutes: • Approval of the October 20, 2022 meeting minutes Pension List Changes: • None Approval of the Pension List: • Approval of the May - October 2023 Pension Lists Unfinished Business: None New Business: • None Informational: • Revenue Expense Summary Reports for December 31, 2022 & March 31, 2023 • Analysis of Fayetteville's Premium Tax 2023 Meeting Calendar • Next Meeting — October 19th, 2023 Note: All meetings are tentative and subject to change. The City meetings calendar is located at www.fayetteville-ar.gov owi, GARRISON ASSET MANAGEMENT April 7, 2023 Ms. Kara Paxton City of Fayetteville 113 West Mountain Street Fayetteville, Arkansas 72701-6069 Dear Kara, Enclosed are your quarterly report for the quarter ended March 31, 2023. Despite challenging geopolitical and banking events, both stocks and bonds advanced in the first quarter of 2023. 2022 was a rough year for investors, but both markets began to recover in the fourth quarter and that trend has continued in the new year. For the first quarter, the S&P 500 total return was +7.50% while the Barclays Intermediate Government/Credit bond index was +2.33%. Equity sectors had a 2021 feel with Information Technology +21.5%, Communications Services +20.2%, and Consumer Discretionary +15.8%. Laggards were Financials -6.1%, Energy -5.6%, and Health Care -4.7%. Growth stocks significantly outperformed value with the Russell Large Cap Growth Index +14.1% versus +0.4% for Russell Large Cap Value. Market breadth was extremely narrow, with a handful of large cap names responsible for nearly all of the index movement. The entirety of the S&P 500's return can be attributed to just the ten largest contributors. This is due in part to the market cap weighted construction of the index and in part to the narrowness of what performed well. Broader participation would be a sign of a healthy economy and an aspect that we will be monitoring closely this year. Internationally, developed markets were strong with the MSCI EAFE +7.6% and the emerging markets MSCI EMI +3.5%. Perhaps the defining event in a quarter full of news was the failure of some high -profile banks. Any investor who lived through 2008 is well aware of the importance of confidence in our credit system. While these banks had positioned themselves as not systemically important, that became debatable as both the 'system' and its regulators took extraordinary steps to assure that both insured and uninsured depositors remained whole. Much of the issue was specific to certain banks who had a concentration of big, largely uninsured depositors with herd- like tendencies while their asset profile was weighted toward longer duration bonds in a spiking interest rate environment as opposed to a more traditional loan portfolio. At the same time, there was no appetite from regulators to see these failed banks assumed by a 'too big to fail' entity, and those mega -banks had little desire on their end, having been burned in their perspective following forced mergers back in 2008. While the measures taken seem to have reassured depositors and calmed contagion concerns, these events serve as reminder that there is a constant tension in the banking system between prudent management and risk taking. After all, banks are conceptually in the business of accepting overnight demand deposits as liabilities and loaning those funds as five-year commercial loans or thirty-year mortgages. Our economy is better off when this works smoothly. Capital requirements, regulations and audits, and sound management practices give confidence but at the margins it seems periodically there are banks that ignore these principles or just bet the wrong way and we continue to refine the process of ensuring those are both rare and contained. In the fixed income markets the yield curve remains significantly inverted, as short-term yields continue to be greater than those in the long term. As I write, the six-month Treasury bill yields 4.95% while the ten-year Treasury note yields 3.40%, a difference of-1.55%, or 155 basis points. You receive 1.55% more yield in six-month bills than you do in ten-year notes ("bills" mature in less than one year when they are issued, "notes" have maturities between 1 and 10 years at the time of issuance. Treasury "bonds" have maturities greater than ten years at issuance). The question investors must ask themselves is, why would I invest in ten-year notes when I can get much greater yield in a 6-month bill? The calculus to answer this question is complicated of course, but the simple answer is you would need to assume that interest rates will be significantly lower on shorter -term treasuries in the not -too -distant future than they are now to invest in 10-year notes. That may turn out to be true, but you forgo a lot of present yield and there are maturity risks involved. Remember that longer maturity bonds react more in terms of price as rates change than do shorter maturity bonds. There are a lot of moving parts in that investment choice. The implications of an inverted yield curve are many; 1) they tend to be somewhat predictive of recessions, 2) they make the cost of money for borrowers and credit cards higher, 3) mortgage rates are higher, and on down the line. Higher rates decrease economic activity and lessen inflationary pressures. More importantly, higher rates and inflation hurt lower income households disproportionally. Little benefit comes from inverted yield curves over the short to intermediate term. Yes, short term yields are higher, but then investors tend to hold cash or cash equivalents and thus those funds are not invested in long term economic projects that propel economic growth. Two things can happen to correct an inverted yield curve; 1) short term rates can fall significantly, or 2) long term rates can rise significantly. I'd be in favor of short-term rates falling, at least to the point where the curve is no longer inverted. Regardless of the shape of the future yield curve, the Fed will lower rates if/when economic activity slows, and/or inflation lessens. Lower rates stimulate the economy, higher rates do not. While bond returns were positive in the first quarter, it was a tough slog getting there. Ten-year Treasury rates were as low as 3.37% (January 18) and as high as 4.06% (March 2). The ten-year ended the quarter yielding 3.47%. That's a lot of volatility to manage through. As always, we appreciate your trust and confidence in our firm, and look forward to serving you in the years to come. If you have any questions or would like to schedule a review, please call our office. Sincerely, James B. Bell, CFA Equity Portfolio Manager Garrison Asset Management 605 W. Dickson Street, Suite 201 • Fayetteville, Arkansas 72701 479-587-1045 • 888-442-7637. 479-587-1257 Facsimile • www.GarrisonFinancial.com o0w,, GARRISON ASSET MANAGEMENT January 11, 2023 Ms. Kara Paxton City of Fayetteville 113 West Mountain Street Fayetteville, Arkansas 72701-6069 Dear Ms. Paxton, Enclosed is your quarterly report for the quarter ended December 31, 2022. Looking back on 2022, the financial markets were faced with an economic backdrop they have not had to deal with in 40 years. The uncertainty surrounding how "sticky" inflation is, how aggressive the Fed would be, and how long the Ukraine conflict would last all underpinned increased volatility throughout the year. This led to an unusual year with both stocks and bonds moving in tandem and posting significant losses. Equity markets peaked at the end of 2021 and headed south most of the year with a few rallies interspersed. The year lows occurred in October for the S&P 500 when the selloff hit -24.5% before a decent rally in the 4t" quarter which left the index-18.11% for the year. The tech heavy Nasdaq continued its slide through the end of the year leaving it in the red-32.15%. Equity sector returns were interesting to say the least. Energy was the standout gaining +59.04%, with the next best sectors Utilities and Consumer Staples down -1.44% and -3.17% respectively. The worst performing sectors of the year were Communication Services, Consumer Discretionary and Information Technology which were down-40.42%,-37.58%,-28.91% respectively. I cannot recall a time in my career when sector returns had such a disparity. The fixed income markets were also difficult. Total returns as measured by Barclay's Intermediate Government/Credit Index, although positive for the fourth quarter at +1.54%, were down -8.23% for the year. If not for the fourth quarter bounce, the fixed income markets could have been down -11% or so for the year. Ten-year Treasury rates have risen from a low of 1.7% in mid -January 2022, peaked in late October at 4.25%, and ended 2022 at 3.57%. The yield curve continues to be "inverted", meaning that short-term rates are higher than long-term rates, a condition that is commonly known to potentially precede recessions. As I write, the yield on 2-year Treasury notes is 4.19%, while the yield on 10-year Treasury bonds is 3.51%, an inversion of 68 basis points, or .68%. The Federal Reserve raised interest rates a total of seven times during the year, beginning at their March 2022 meeting. The Fed Funds target rate went from essentially 0% to 4.50% in nine months. This is the highest Fed Funds rate in 17 years and the rate of increase was the fastest pace since the early 1980s. Although the incremental increases in inflation have tended to slow recently, inflation rates are the highest in years and are continuing to negatively affect consumers. Overall inflation was reported at +7.1% year -over -year November. A few examples, through November; 1) gasoline +12.4%, 2) poultry +13.1%, 3) eggs +49.1% (not a typo), 4) bread and crackers +19.9%, 5) coffee +14.6%, 6) fruits and vegetables +9.7%, 7) pasta +16.8%, 8) paper products +14.1%, 9) electricity +13.7%, 10) restaurants +8.5%. This is just what the Bureau of Labor Statistics (BLS) is telling us inflation is. It seems much higher. What should we expect in 2023? We do expect inflation to moderate in 2023 from current levels but could stay above the Fed target of 2% for longer than expected as the Ukraine conflict continues, and the world becomes less global while supply chains shift from global to more regional. The era of free money is in the rearview mirror and consumers and businesses should get used to paying more "normal" rates for loans, cars, homes, etc. On the flipside, this also allows investors to earn a decent return on their savings. Will we dip into recession? The likelihood is great given the Fed's track record of unsuccessfully engineering soft economic landings. Tighter financial conditions are leading to decelerating economic growth in the U.S. which will put increased pressure on earnings in 2023. Europe is likely already in recession and the World Bank recently slashed their 2023 global growth forecast almost in half, down to 1.7% from 3% in June. Recessions are inevitable but they do not last forever. They are normal, expected and healthy. When things get uncomfortable, it's always constructive to look at history. Based on the last 11 economic cycles since 1950, recessions have ranged from two to 18 months, with the average lasting about 10 months. Equity markets always peak and start declining prior to a recession and start to recover prior to the ending of recession. On average the peak is seven months before the recession begins and the recovery starts six months before it ends. Furthermore, the strongest gains often occur immediately after the bottom, which is why trying to time the moves is a very risky proposition. We wish you a happy, healthy and prosperous 2023. As always, we appreciate your trust and confidence in our firm, and we look forward to serving you in the years to come. If you have any questions or would like to schedule a review, please call our office. Sincerely, Kerry Bradley, CFA, MBA Equity Portfolio Manger 0001, GARRISON ASSET MANAGEMENT City of Fayetteville Police Pension and Relief Fund Charles Schwab #2448-5630 Quarter Ending December 31, 2022 PORTFOLIO SUMMARY City of Fayetteville Police Pension and Relief Fund Charles Schwab #2448-5630 December 31, 2022 0.1% 5.7% 26.7% ■ Cash & Equivalents 7,240.94 Money Market 307,838.69 67.5 % Account Fixed Income 1,455,434.50 Account Equities 3,676,875.85 Damson Asset Management PORTFOLIO APPRAISAL City of Fayetteville Police Pension and Relief Fund Charles Schwab #2448-5630 December 31, 2022 Adj Unit Total Adjusted Market Pet. Unit Annual Quantity Security Cost Cost Price Value Assets Income Income Yield CASH AND EQUIVALENTS Schwab Bank Sweep 7,240.94 TRADED - MONEY MARKET 307,839 Schwab Govt Money Fund Investor Shares TREASURY NOTE 100,000 US Treasury Note 0.125% Due 07-15-23 150,000 US Treasury Note 2.500% Due 01-31-24 Accrued Interest CORPORATE BONDS 110,000 Nike, Inc. 2.250% Due 05-01-23 125,000 Apple Inc. 2.400% Due 05-03-23 125,000 Procter & Gamble Company 3.100% Due 08-15-23 110,000 JB Hunt Transport Services, Inc. 3.875% Due 03-01-26 100,000 Adobe, Inc. 2.150% Due 02-01-27 110,000 Kroger Company 3.700% Due 08-01-27 60,000 Laboratory Corporation of America Holdings 3.600% Due 09-01-27 110,000 General Dynamics Corporation 2.625%Due 11-15-27 100,000 Tyson Foods, Inc. 4.350% Due 03-01-29 100,000 PepsiCo, Inc. 2.625% Due 07-29-29 110,000 FedEx Corporation 3.100% Due 08-05-29 Accrued Interest COMMON STOCK 1,680 AT&T, Inc. 525 AbbVie, Inc. 710 Abbott Laboratories 300 Accenture Plc. 600 Akamai Technologies, Inc. 435 American Electric Power 7,240.94 1.00 307,838.69 1.00 97.69 97,693.61 97.56 97.85 146,767.51 97.62 244,461.12 100.13 110,146.90 99.09 100.12 125,146.17 99.14 100.71 125,892.77 99.09 103.68 114,045.52 96.87 104.98 104,980.38 91.12 103.43 113,775.33 94.52 103.93 62,360.09 94.26 102.16 112,381.26 90.93 116.49 116,487.05 95.71 103.54 103,538.18 88.36 100.11 110,116.89 88.22 1,198,870.55 21.31 35,806.37 18.41 66.58 34,953.92 161.61 39.36 27,945.60 109.79 90.81 27,241.91 266.84 55.76 33,454.45 84.30 78.40 34,102.70 94.95 v 7,240.94 0.1 0.450 7,240.94 0.1 307,838.69 5.7 3.990 307.838.69 5.7 97,562.50 1.8 0.125 146,437.50 2.7 2.500 1,616.51 0.0 245,616.51 4.5 108,999.33 2.0 2.250 123,926.37 2.3 2.400 123,862.75 2.3 3.100 106,559.09 2.0 3.875 91,120.80 1.7 2.150 103,970.68 1.9 3.700 56,558.10 1.0 3.600 100,019.92 1.8 2.625 95,713.80 1.8 4.350 88,361.80 1.6 2.625 97,047.39 1.8 3.100 11,402.46 0.2 1,107,542.49 20.3 30,928.80 0.6 1.110 84,845.25 1.6 5.920 77,950.90 1.4 2.040 80,052.00 1.5 4.480 50,580.00 0.9 0.000 41,303.25 0.8 3.320 32.58 0.4 32.58 0.4 12,282.76 4.0 12,282.76 4.0 125.00 4.8 3,750.00 4.8 3,875.00 4.8 2,475.00 5.0 3,000.00 5.0 3,875.00 4.6 4,262.50 5.0 2,150.00 4.6 4,070.00 5.1 2,160.00 5.1 2,887.50 4.8 4,350.00 5.2 2,625.00 4.8 3,410.00 5.3 35,265.00 4.9 1,864.80 6.0 3,108.00 3.7 1,448.40 1.9 1,344.00 1.7 0.00 0.0 1,444.20 3.5 Damson Asset Management PORTFOLIO APPRAISAL City of Fayetteville Police Pension and Relief Fund Charles Schwab #2448-5630 December 31, 2022 Adj Unit Total Adjusted Market Pet. Unit Annual Quantity Security Cost Cost Price Value Assets Income Income Yield 295 Amgen, Inc. 114.33 33,727.26 262.64 77,478.80 1.4 8.520 2,513.40 3.2 250 Ansys, Inc. 75.67 18,918.47 241.59 60,397.50 1.1 0.000 0.00 0.0 560 Apple, Inc. 17.86 10,002.18 129.93 72,760.80 1.3 0.920 515.20 0.7 685 AptarGroup, Inc. 63.47 43,477.91 109.98 75,336.30 1.4 1.520 1,041.20 1.4 580 Arista Networks, Inc. 52.16 30,250.97 121.35 70,383.00 1.3 0.000 0.00 0.0 56 Aspen Technology 166.30 9,312.80 205.40 11,502.40 0.2 0.000 0.00 0.0 43 AutoZone, Inc. 516.09 22,192.02 2,466.18 106,045.74 1.9 0.000 0.00 0.0 1,350 BCE, Inc. 24.40 32,934.20 43.95 59,332.50 1.1 2.800 3,780.00 6.4 200 Becton, Dickinson & 111.11 22,222.05 254.30 50,860.00 0.9 3.640 728.00 1.4 Company 150 Broadcom, Inc. 239.03 35,853.78 559.13 83,869.50 1.5 18.400 2,760.00 3.3 225 Broadridge Financial 41.33 9,298.79 134.13 30,179.25 0.6 2.900 652.50 2.2 Solutions, Inc. 1,368 Brown -Forman Corp. 35.52 48,596.98 65.68 89,850.24 1.6 0.820 1,121.76 1.2 Cl B 385 Bunge Ltd. 84.56 32,556.82 99.77 38,411.45 0.7 2.500 962.50 2.5 1,445 Cisco Systems, Inc. 19.70 28,470.99 47.64 68,839.80 1.3 1.520 2,196.40 3.2 1,400 Coca-Cola Company 30.98 43,374.60 63.61 89,054.00 1.6 1.760 2,464.00 2.8 965 ConocoPhillips 55.58 53,635.89 118.00 113,870.00 2.1 0.700 675.50 0.6 250 Deere & Co. 87.76 21,940.58 428.76 107,190.00 2.0 4.800 1,200.00 1.1 500 Disney, Walt Company 110.91 55,454.90 86.88 43,440.00 0.8 0.000 0.00 0.0 550 Eastman Chemical 85.25 46,885.10 81.44 44,792.00 0.8 3.160 1,738.00 3.9 Company 700 Embecta Corporation 28.85 20,198.03 25.29 17,703.00 0.3 0.600 420.00 2.4 1,145 Freeport-McMoRan, 31.22 35,741.98 38.00 43,510.00 0.8 0.600 687.00 1.6 Inc. Cl B 3,865 Huntington Bancshares, 13.05 50,444.36 14.10 54,496.50 1.0 0.620 2,396.30 4.4 Inc. 1,205 Intel Corporation 20.53 24,744.12 26.43 31,848.15 0.6 1.460 1,759.30 5.5 560 Johnson & Johnson 64.70 36,229.62 176.65 98,924.00 1.8 4.520 2,531.20 2.6 365 Kimberly-Clark 107.07 39,079.82 135.75 49,548.75 0.9 4.640 1,693.60 3.4 Corporation 335 Laboratory Corp. 125.86 42,163.99 235.48 78,885.80 1.4 2.880 964.80 1.2 America Holdings 675 Lincoln Electric 67.20 45,360.12 144.49 97,530.75 1.8 2.560 1,728.00 1.8 Holdings, Inc. 680 Masco Corp. 54.13 36,805.20 46.67 31,735.60 0.6 1.120 761.60 2.4 120 Mastercard, Inc. 295.65 35,477.92 347.73 41,727.60 0.8 2.280 273.60 0.7 640 Medtronic Plc. 77.60 49,662.77 77.72 49,740.80 0.9 2.720 1,740.80 3.5 1,100 Merck & Co., Inc. 49.00 53,898.79 110.95 122,045.00 2.2 2.920 3,212.00 2.6 210 Palo Alto Networks 126.26 26,514.23 139.54 29,303.40 0.5 0.000 0.00 0.0 530 Pepsico, Inc. 93.75 49,690.09 180.66 95,749.80 1.8 4.600 2,438.00 2.5 500 PerkinElmer, Inc. 97.03 48,515.80 140.22 70,110.00 1.3 0.280 140.00 0.2 630 Phillips 66 72.18 45,473.90 104.08 65,570.40 1.2 3.880 2,444.40 3.7 630 Procter & Gamble 59.42 37,433.09 151.56 95,482.80 1.8 3.650 2,299.50 2.4 Company 825 Roche Holding, Ltd. 43.72 36,069.41 39.15 32,298.75 0.6 0.770 635.25 2.0 ADR 330 Rockwell Automation, 165.23 54,524.36 257.57 84,998.10 1.6 4.720 1,557.60 1.8 Inc. 250 Skyworks Solutions 126.14 31,535.10 91.13 22,782.50 0.4 2.480 620.00 2.7 470 Texas Instruments, Inc. 58.53 27,511.42 165.22 77,653.40 1.4 4.960 2,331.20 3.0 120 VMWare, Inc 124.21 14,905.40 122.76 14,731.20 0.3 0.000 0.00 0.0 710 Ventas, Inc. 73.52 52,195.91 45.05 31,985.50 0.6 1.800 1,278.00 4.0 355 Verisk Analytics, Inc. 81.80 29,039.45 176.42 62,629.10 1.1 1.240 440.20 0.7 500 Vertiv Holdings 19.01 9,504.95 13.66 6,830.00 0.1 0.010 5.00 0.1 Company 2 Damson Asset Management PORTFOLIO APPRAISAL City of Fayetteville Police Pension and Relief Fund Charles Schwab #2448-5630 December 31, 2022 Adj Unit Total Adjusted Market Pet. Unit Annual Quantity Security Cost Cost Price Value Assets Income Income Yield 655 Wa1Mart, Inc. 62.11 40,680.30 141.79 92,872.45 1.7 2.240 1,467.20 1.6 406 Warner Brothers 28.62 11,621.33 9.48 3,848.88 0.1 0.000 0.00 0.0 Discovery, Inc. 510 Waste Management, Inc. 42.21 21,525.65 156.88 80,008.80 1.5 2.600 1,326.00 1.7 500 Xylem, Inc. 64.30 32,148.42 110.57 55,285.00 1.0 1.200 600.00 1.1 252 Zscaler, Inc. 243.08 61,256.26 111.90 28,198.80 0.5 0.000 0.00 0.0 1,892,563.05 3,327,288.31 61.1 67,308.41 2.0 MUTUAL FUNDS 4,005.429 Dodge & Cox Intl Stk 45.09 180,607.39 43.11 172,674.04 3.2 1.180 4,726.41 2.7 4,037.901 Oppenheimer 41.28 166,670.17 35.59 143,708.90 2.6 0.050 201.90 0.1 Developing Mkts A 347,277.56 316,382.94 5.8 4,928.30 1.6 UNIT TRUSTS 2,340 FT Energy Income & 34.20 80,032.95 14.19 33,204.60 0.6 1.200 2,808.00 8.5 Growth 3,350 iShares S&P US Pfd Stk 38.34 128,422.50 30.53 102,275.50 1.9 1.640 5,494.00 5.4 208,455.45 135,480.10 2.5 8,302.00 6.1 TOTAL PORTFOLIO 4,206,707.36 5,447,389.98 100.0 131,994.06 2.9 You should carefully compare this statement to the statement you receive from your custodian and notify us immediately of any discrepancies. 3 Trade Settle Date Date PURCHASES 04-29-22 05-03-22 08-26-22 08-29-22 12-30-22 01-03-23 12-19-22 12-20-22 12-19-22 12-20-22 Garrison Asset Management PURCHASE AND SALE City of Fayetteville Police Pension and Relief Fund Charles Schwab #2448-5630 From 01-01-22 To 12-31-22 Quantity REINVESTED DIVIDENDS Security 660 Embecta Corporation 275,000 Schwab Govt Money Fund Investor Shares 30,000 Schwab Govt Money Fund Investor Shares 150,000 US Treasury Note 2.500% Due 01-31-24 100,000 US Treasury Note 0.125% Due 07-15-23 Unit Price Amount 29.74 19,626.82 1.00 275,000.00 1.00 30,000.00 97.78 146,663.78 97.54 97,541.81 568,832.41 12-19-22 12-19-22 88.375 Dodge & Cox Intl Stk 42.55 3,760.37 12-14-22 12-14-22 22.295 Oppenheimer Developing Mkts A 36.49 813.56 09-15-22 09-15-22 261 Schwab Govt Money Fund Investor 1.00 261.10 Shares 10-17-22 10-17-22 603 Schwab Govt Money Fund Investor 1.00 603.18 Shares 11-15-22 11-15-22 656 Schwab Govt Money Fund Investor 1.00 655.81 Shares 12-30-22 12-30-22 1,318 Schwab Govt Money Fund Investor 1.00 1,318.23 Shares 12-30-22 12-30-22 0 Schwab Govt Money Fund Investor 1.00 0.37 Shares 7,412.62 SALES 03-17-22 03-21-22 300 3M Company 147.10 44,129.50 05-16-22 05-18-22 130 AbbVie, Inc. 155.69 20,239.84 05-16-22 05-18-22 7 Apple, Inc. 145.42 1,017.96 05-16-22 05-18-22 95 Apple, Inc. 145.42 13,814.98 05-16-22 05-18-22 33 Apple, Inc. 145.42 4,798.89 05-17-22 05-17-22 135 Aspen Technology 87.69 11,838.15 05-17-22 05-17-22 1 Aspen Technology 177.23 124.06 04-29-22 05-03-22 10 AutoZone, Inc. 1,959.33 19,593.30 05-16-22 05-18-22 10 AutoZone, Inc. 2,018.34 20,183.44 04-29-22 05-03-22 20 Broadcom, Inc. 560.13 11,202.54 05-16-22 05-18-22 30 Broadcom, Inc. 582.71 17,481.31 03-24-22 03-24-22 0 Bunge Ltd. 113.50 43.13 05-16-22 05-18-22 185 ConocoPhillips 105.79 19,570.70 02-22-22 02-24-22 305 IPG Photonics Corporation 135.72 41,395.67 1 Damson Asset Management PURCHASE AND SALE City of Fayetteville Police Pension and Relief Fund Charles Schwab #2448-5630 From 01-01-22 To 12-31-22 Trade Date Settle Date Quantity Security 12-15-22 12-15-22 125,000 Intel Corporation 2.700% Due 12-15-22 10-15-22 10-17-22 125,000 Oracle Corporation 2.500% Due 10-15-22 04-29-22 05-03-22 110 Organon & Company 06-12-22 06-13-22 125,000 Sysco Corporation 2.600% Due 06-12-22 04-08-22 04-13-22 0 Warner Brothers Discovery, Inc. 05-16-22 05-18-22 125 Waste Management, Inc. 2 Unit Price Amount 100.00 125,000.00 100.00 125,000.00 32.90 3,618.98 100.00 125,000.00 27.11 11.40 157.65 19,706.71 623,770.56 Garrison russet Management REALIZED GAINS AND LOSSES City of Fayetteville Police Pension and Relief Fund Charles Schwab #2448-5630 From 01-01-22 Through 12-31-22 Open Date Close Date Quantity Security Cost Basis Amort. or Accretion Proceeds Gain Or Loss Short Term Long Term 03-24-17 02-22-22 305 IPG Photonics Corporation 36,654.02 41,395.67 4,741.65 03-19-15 03-17-22 300 3M Company 49,479.55 44,129.50 -5,350.05 09-25-14 03-24-22 0 Bunge Ltd. 32.13 43.13 11.00 10-24-08 04-08-22 0 Warner Brothers Discovery, 12.04 11.40 -0.64 Inc. 01-13-14 04-29-22 110 Organon & Company 2,626.99 3,618.98 991.99 06-27-17 04-29-22 20 Broadcom, Inc. 4,780.50 11,202.54 6,422.04 07-24-14 04-29-22 10 AutoZone, Inc. 5,160.94 19,593.30 14,432.36 04-02-14 05-16-22 125 Waste Management, Inc. 5,275.89 19,706.71 14,430.81 05-20-10 05-16-22 185 ConocoPhillips 10,282.53 19,570.70 9,288.17 07-24-14 05-16-22 10 AutoZone, Inc. 5,160.94 20,183.44 15,022.50 06-27-17 05-16-22 30 Broadcom, Inc. 7,170.76 17,481.31 10,310.55 10-02-13 05-16-22 7 Apple, Inc. 125.03 1,017.96 892.93 12-31-14 05-16-22 130 AbbVie, Inc. 8,655.26 20,239.84 11,584.58 10-02-13 05-16-22 95 Apple, Inc. 1,696.80 13,814.98 12,118.18 10-02-13 05-16-22 33 Apple, Inc. 589.41 4,798.89 4,209.48 12-23-20 05-17-22 135 Aspen Technology 8,423.84 11,838.15 3,414.31 12-23-20 05-17-22 1 Aspen Technology 116.41 124.06 7.65 07-15-16 06-12-22 125,000 Sysco Corporation 127,495.00 -2,495.00 125,000.00 0.00 2.600% Due 06-12-22 03-29-16 10-15-22 125,000 Oracle Corporation 126,902.50 -1,902.50 125,000.00 0.00 2.500% Due 10-15-22 03-29-16 12-15-22 125,000 Intel Corporation 128,337.50 -3,337.50 125,000.00 0.00 2.700% Due 12-15-22 TOTAL GAINS 0.00 107,878.21 TOTAL LOSSES 0.00 -5,350.69 528,978.04 -7,735.00 623,770.56 0.00 102,527.52 TOTAL REALIZED GAIN/LOSS 102,527.52 CAPITAL GAIN DISTRIBUTIONS 12-30-22 Schwab Govt Money Fund 0.37* Investor Shares TOTAL DISTRIBUTIONS 0.37 0.37 0.00 0.37 102,527.52 TOTAL GAIN/LOSS 102,527.89 An'*' denotes an average cost transaction. Damson Asset Management PERFORMANCE SUMMARY GROSS OF FEES City of Fayetteville Police Pension and Relief Fund Charles Schwab #2448-5630 December 31, 2022 PORTFOLIO COMPOSITION CHANGE IN PORTFOLIO Market Pet. Value Assets Yield Cash & Equivalents 7,240.94 0.1 0.4 Portfolio Value on 12-31-21 6,368,590.86 Money Market 307,838.69 5.7 4.0 Accrued Interest 12,383.71 Account Fixed 1,455,434.50 26.7 5.0 Net Additions/Withdrawals -378,800.70 Income Account Equities 3,676,875.85 67.5 2.0 Realized Gains -28,232.97 Account 0.00 0.0 - Unrealized Gains -656,013.45 Commodities Income Received 128,827.27 Change in Accrued Interest 635.26 Portfolio Value on 12-31-22 5,434,371.02 Accrued Interest 13,018.97 Total 5,447,389.98 100.0 2.9 5,447,389.98 Account 40% Fixed Income/60% Equity Blended Index Account Fixed Income Barclays Capital Intermed Govt/Credit Account Equities S&P 500 TIME WEIGHTED RETURN Annualized Quarter Last 12 Inception To Date Months To Date 8.07 -8.80 5.41 5.25 -13.90 6.85 1.64 -6.51 1.55 1.54 -8.23 1.15 11.70 -10.04 7.98 7.56 -18.11 10.30 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. 14111)1 GARRISON ASSET MANAGEMENT January 9, 2023 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, 2022 Portfolio Value as of 09-30-22 5,110,155 Portfolio Value as of 10-31-22 5,375,888 Portfolio Value as of 11-30-22 5,613,706 Portfolio Value as of 12-31-22 5,447,390 Average of 4 Months 5,386,785 5,386,785 @ 0.5000% per annum 6,733 Quarterly Management Fee 6,733 TOTAL DUE AND PAYABLE 6,733 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. GARRISON ASSET MANAGEMENT City of Fayetteville Police Pension and Relief Fund Charles Schwab #2448-5630 Quarter Ending March 31, 2023 PORTFOLIO SUMMARY City of Fayetteville Police Pension and Relief Fund Charles Schwab #2448-5630 March 31, 2023 1.4% 4.5% 67.5% ■ Cash & Equivalents 80,106.57 — Money Market 250,258.90 Account Fixed Income 1,470,752.22 Account Equities 3,738,877.73 Garrison Asset Management PORTFOLIO APPRAISAL City of Fayetteville Police Pension and Relief Fund Charles Schwab #2448-5630 March 31, 2023 Adj Unit Total Adjusted Market Pet. Unit Annual Quantity Security Cost Cost Price Value Assets Income Income Yield CASH AND EQUIVALENTS Schwab Bank Sweep 80,106.57 TRADED - MONEY MARKET 250,259 Schwab Govt Money Fund Investor Shares TREASURY NOTE 100,000 US Treasury Note 0.125% Due 07-15-23 150,000 US Treasury Note 2.500% Due 01-31-24 Accrued Interest CORPORATE BONDS 110,000 Nike, Inc. 2.250% Due 05-01-23 125,000 Apple Inc. 2.400% Due 05-03-23 125,000 Procter & Gamble Company 3.100% Due 08-15-23 110,000 JB Hunt Transport Services, Inc. 3.875% Due 03-01-26 100,000 Adobe, Inc. 2.150% Due 02-01-27 110,000 Kroger Company 3.700% Due 08-01-27 60,000 Laboratory Corporation of America Holdings 3.600% Due 09-01-27 110,000 General Dynamics Corporation 2.625%Due 11-15-27 100,000 Tyson Foods, Inc. 4.350% Due 03-01-29 100,000 PepsiCo, Inc. 2.625% Due 07-29-29 110,000 FedEx Corporation 3.100% Due 08-05-29 Accrued Interest COMMON STOCK 1,680 AT&T, Inc. 525 AbbVie, Inc. 710 Abbott Laboratories 300 Accenture Plc. 600 Akamai Technologies, Inc. 435 American Electric Power 80,106.57 1.00 250,258.90 1.00 250,258.90 98.75 98,751.22 98.67 98.33 147,490.20 98.16 246,241.42 100.03 110,036.81 99.72 100.03 125,038.44 99.66 100.43 125,538.52 99.60 103.40 113,742.28 98.23 104.69 104,685.14 92.94 103.26 113,584.64 96.13 103.74 62,242.68 94.75 102.06 112,266.67 92.23 115.86 115,857.32 96.65 103.41 103,413.93 91.53 100.10 110,112.93 91.70 1,196,519.37 21.31 35,806.37 19.25 66.58 34,953.92 159.37 39.36 27,945.60 101.26 90.81 27,241.91 285.81 55.76 33,454.45 78.30 78.40 34,102.70 90.99 v 80,106.57 1.4 0.450 80,106.57 1.4 250,258.90 4.5 4.470 250.258.90 4.5 98,671.87 1.8 0.125 147,234.37 2.7 2.500 637.09 0.0 246,543.33 4.5 109,693.65 2.0 2.250 124,570.00 2.2 2.400 124,501.12 2.2 3.100 108,053.33 2.0 3.875 92,937.70 1.7 2.150 105,745.53 1.9 3.700 56,847.54 1.0 3.600 101,450.36 1.8 2.625 96,654.80 1.7 4.350 91,529.30 1.7 2.625 100,871.10 1.8 3.100 6,767.46 0.1 1,119,621.89 20.2 32,340.00 0.6 1.110 83,669.25 1.5 5.920 71,894.60 1.3 2.040 85,743.00 1.5 4.480 46,980.00 0.8 0.000 39,580.65 0.7 3.320 360.48 0.4 360.48 0.4 11,186.57 4.5 11,186.57 4.5 125.00 4.8 3,750.00 4.8 3,875.00 4.8 2,475.00 5.4 3,000.00 6.1 3,875.00 4.2 4,262.50 4.6 2,150.00 4.2 4,070.00 4.7 2,160.00 5.0 2,887.50 4.6 4,350.00 5.1 2,625.00 4.2 3,410.00 4.7 35,265.00 4.8 1,864.80 5.8 3,108.00 3.7 1,448.40 2.0 1,344.00 1.6 0.00 0.0 1,444.20 3.6 Garrison Asset Management PORTFOLIO APPRAISAL City of Fayetteville Police Pension and Relief Fund Charles Schwab #2448-5630 March 31, 2023 Adj Unit Total Adjusted Market Pet. Unit Annual Quantity Security Cost Cost Price Value Assets Income Income Yield 295 Amgen, Inc. 114.33 33,727.26 241.75 71,316.25 1.3 8.520 2,513.40 3.5 250 Ansys, Inc. 75.67 18,918.47 332.80 83,200.00 1.5 0.000 0.00 0.0 560 Apple, Inc. 17.86 10,002.18 164.90 92,344.00 1.7 0.920 515.20 0.6 685 AptarGroup, Inc. 63.47 43,477.91 118.19 80,960.15 1.5 1.520 1,041.20 1.3 580 Arista Networks, Inc. 52.16 30,250.97 167.86 97,358.80 1.8 0.000 0.00 0.0 56 Aspen Technology 166.30 9,312.80 228.87 12,816.72 0.2 0.000 0.00 0.0 43 AutoZone, Inc. 516.09 22,192.02 2,458.15 105,700.45 1.9 0.000 0.00 0.0 1,350 BCE, Inc. 24.40 32,934.20 44.79 60,466.50 1.1 2.800 3,780.00 6.3 200 Becton, Dickinson & 111.11 22,222.05 247.54 49,508.00 0.9 3.640 728.00 1.5 Company 150 Broadcom, Inc. 239.03 35,853.78 641.54 96,231.00 1.7 18.400 2,760.00 2.9 225 Broadridge Financial 41.33 9,298.79 146.57 32,978.25 0.6 2.900 652.50 2.0 Solutions, Inc. 1,368 Brown -Forman Corp. 35.52 48,596.98 64.27 87,921.36 1.6 0.820 1,121.76 1.3 Cl B 385 Bunge Ltd. 84.56 32,556.82 95.52 36,775.20 0.7 2.500 962.50 2.6 1,445 Cisco Systems, Inc. 19.70 28,470.99 52.27 75,537.37 1.4 1.560 2,254.20 3.0 1,400 Coca-Cola Company 30.98 43,374.60 62.03 86,842.00 1.6 1.840 2,576.00 3.0 965 ConocoPhillips 55.58 53,635.89 99.21 95,737.65 1.7 5.340 5,153.10 5.4 250 Deere & Co. 87.76 21,940.58 412.88 103,220.00 1.9 5.000 1,250.00 1.2 500 Disney, Walt Company 110.91 55,454.90 100.13 50,065.00 0.9 0.000 0.00 0.0 550 Eastman Chemical 85.25 46,885.10 84.34 46,387.00 0.8 3.160 1,738.00 3.7 Company 700 Embecta Corporation 28.85 20,198.03 28.12 19,684.00 0.4 0.600 420.00 2.1 1,145 Freeport-McMoRan, 31.22 35,741.98 40.91 46,841.95 0.8 0.600 687.00 1.5 Inc. Cl B 1,205 Intel Corporation 20.53 24,744.12 32.67 39,367.35 0.7 0.500 602.50 1.5 560 Johnson & Johnson 64.70 36,229.62 155.00 86,800.00 1.6 4.520 2,531.20 2.9 365 Kimberly-Clark 107.07 39,079.82 134.22 48,990.30 0.9 4.720 1,722.80 3.5 Corporation 335 Laboratory Corp. 125.86 42,163.99 229.42 76,855.70 1.4 2.880 964.80 1.3 America Holdings 675 Lincoln Electric 67.20 45,360.12 169.10 114,142.50 2.1 2.560 1,728.00 1.5 Holdings, Inc. 120 Mastercard, Inc. 295.65 35,477.92 363.41 43,609.20 0.8 2.280 273.60 0.6 640 Medtronic Plc. 77.60 49,662.77 80.62 51,596.80 0.9 2.720 1,740.80 3.4 1,100 Merck & Co., Inc. 49.00 53,898.79 106.39 117,029.00 2.1 2.920 3,212.00 2.7 210 Palo Alto Networks 126.26 26,514.23 199.74 41,945.40 0.8 0.000 0.00 0.0 530 Pepsico, Inc. 93.75 49,690.09 182.30 96,619.00 1.7 4.600 2,438.00 2.5 500 PerkinElmer, Inc. 97.03 48,515.80 133.26 66,630.00 1.2 0.280 140.00 0.2 630 Phillips 66 72.18 45,473.90 101.38 63,869.40 1.2 4.200 2,646.00 4.1 630 Procter & Gamble 59.42 37,433.09 148.69 93,674.70 1.7 3.650 2,299.50 2.5 Company 825 Roche Holding, Ltd. 43.72 36,069.41 35.86 29,584.50 0.5 0.800 660.00 2.2 ADR 330 Rockwell Automation, 165.23 54,524.36 293.45 96,838.50 1.7 4.720 1,557.60 1.6 Inc. 250 Skyworks Solutions 126.14 31,535.10 117.98 29,495.00 0.5 2.480 620.00 2.1 470 Texas Instruments, Inc. 58.53 27,511.42 186.01 87,424.70 1.6 4.960 2,331.20 2.7 120 VMWare, Inc 124.21 14,905.40 124.85 14,982.00 0.3 0.000 0.00 0.0 710 Ventas, Inc. 73.52 52,195.91 43.35 30,778.50 0.6 1.800 1,278.00 4.2 355 Verisk Analytics, Inc. 81.80 29,039.45 191.86 68,110.30 1.2 1.360 482.80 0.7 500 Vertiv Holdings 19.01 9,504.95 14.31 7,155.00 0.1 0.010 5.00 0.1 Company 655 WalMart, Inc. 62.11 40,680.30 147.45 96,579.75 1.7 2.280 1,493.40 1.5 406 Warner Brothers 28.62 11,621.33 15.10 6,130.60 0.1 0.000 0.00 0.0 Discovery, Inc. 2 Garrison Asset Management PORTFOLIO APPRAISAL City of Fayetteville Police Pension and Relief Fund Charles Schwab #2448-5630 March 31, 2023 Adj Unit Total Adjusted Market Pet. Unit Annual Quantity Security Cost Cost Price Value Assets Income Income Yield 510 Waste Management, Inc. 42.21 21,525.65 163.17 83,216.70 1.5 2.800 1,428.00 1.7 500 Xylem, Inc. 64.30 32,148.42 104.70 52,350.00 0.9 1.320 660.00 1.3 252 Zscaler, Inc. 243.08 61,256.26 116.83 29,441.16 0.5 0.000 0.00 0.0 1,805,313.49 3,365,315.21 60.7 68,177.46 2.0 MUTUAL FUNDS 4,005.429 Dodge & Cox Intl Stk 45.09 180,607.39 45.76 183,288.43 3.3 1.180 4,726.41 2.6 4,037.901 Oppenheimer 41.28 166,670.17 39.60 159,900.88 2.9 0.050 201.90 0.1 Developing Mkts A 347,277.56 343,189.31 6.2 4,928.30 1.4 UNIT TRUSTS 2,340 FT Energy Income & 34.20 80,032.95 12.98 30,373.20 0.5 1.200 2,808.00 9.2 Growth 3,350 iShares S&P US Pfd Stk 38.34 128,422.50 31.22 104,587.00 1.9 1.640 5,494.00 5.3 208,455.45 134,960.20 2.4 8,302.00 6.2 TOTAL PORTFOLIO 4,134,172.76 5,539,995.42 100.0 132,094.81 2.9 You should carefully compare this statement to the statement you receive from your custodian and notify us immediately of any discrepancies. 3 Damson Asset Management PURCHASE AND SALE City of Fayetteville Police Pension and Relief Fund Charles Schwab #2448-5630 From 01-01-23 To 03-31-23 Trade Date Settle Date Quantity Security Unit Price Amount REINVESTED DIVIDENDS 01-17-23 01-17-23 496 Schwab Govt Money Fund Investor 1.00 496.08 Shares 02-15-23 02-15-23 991 Schwab Govt Money Fund Investor 1.00 990.71 Shares 03-15-23 03-15-23 933 Schwab Govt Money Fund Investor 1.00 933.42 Shares SALES 03-17-23 03-21-23 3,865 Huntington Bancshares, Inc. 10.35 40,003.80 03-10-23 03-14-23 680 Masco Corp. 49.94 33,956.18 03-06-23 03-07-23 60,000 Schwab Govt Money Fund Investor 1.00 60,000.00 Shares Garrison russet Management REALIZED GAINS AND LOSSES City of Fayetteville Police Pension and Relief Fund Charles Schwab #2448-5630 From 01-01-23 Through 03-31-23 Open Close Date Date Quantity Security 03-06-23 60,000 Schwab Govt Money Fund Investor Shares 02-18-21 03-10-23 680 Masco Corp. 03-23-17 03-17-23 3,865 Huntington Bancshares, Inc. TOTAL GAINS TOTAL LOSSES TOTAL REALIZED GAIN/LOSS-13,289.58 NO CAPITAL GAINS DISTRIBUTIONS An'*' denotes an average cost transaction. Cost Amort. or Basis Accretion Proceeds 60,000.00 60,000.00 36,805.20 33,956.18 50,444.36 40,003.80 147,249.56 0.00 133,959.98 Gain Or Loss Short Term Long Term 0.00* -2,849.02 -10,440.56 0.00 0.00 0.00-13,289.58 0.00-13,289.58 Garrison Asset Management PERFORMANCE SUMMARY GROSS OF FEES City of Fayetteville Police Pension and Relief Fund Charles Schwab #2448-5630 March 31, 2023 PORTFOLIO COMPOSITION CHANGE IN PORTFOLIO Market Pet. Value Assets Yield Cash & Equivalents 80,106.57 1.4 0.4 Portfolio Value on 12-31-22 5,434,371.02 Money Market 250,258.90 4.5 4.5 Accrued Interest 13,018.97 Account Fixed 1,470,752.22 26.5 4.8 Net Additions/Withdrawals -97,383.52 Income Account Equities 3,738,877.73 67.5 2.0 Realized Gains -12,272.12 Account 0.00 0.0 - Unrealized Gains 169,166.12 Commodities Income Received 38,709.38 Change in Accrued Interest -5,614.42 Portfolio Value on 03-31-23 5,532,590.88 Accrued Interest 7,404.54 Total 5,539,995.42 100.0 2.9 5,539,995.42 Account 40% Fixed Income/60% Equity Blended Index Account Fixed Income Barclays Capital Intermed Govt/Credit Account Equities S&P 500 TIME WEIGHTED RETURN Annualized Quarter Last 12 Inception To Date Months To Date 3.50 -2.32 5.67 5.43 -4.95 7.29 .20 -0.78 1.76 2.33 -1.65 1.39 4.32 -2.81 8.27 7.50 -7.73 10.91 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. r^ GARRISON ASSET MANAGEMENT April 7, 2023 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 January 1 through March 31, 2023 Portfolio Value as of 12-31-22 5,447,390 Portfolio Value as of 01-31-23 5,607,130 Portfolio Value as of 02-28-23 5,505,615 Portfolio Value as of 03-31-23 5,539,995 Average of 4 Months 5,525,033 5,525,033 @ 0.5000% per annum 6,906 Quarterly Management Fee 6,906 TOTAL DUE AND PAYABLE 6,906 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. Lioneld Jordan Chairman Kara Paxton Treasurer Eldon Roberts Secretary Retired Position 1 Policemen's Pension and Relief Fund Board of Trustees Minutes October 20, 2022 Page 1 of 5 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 20, 2022 A meeting of the Fayetteville Policemen's Pension and Relief Fund Board of Trustees was held on October 20, 2022 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. Board Members Present: John Brown, Frank Johnson, Melvin Stanley, Eldon Roberts Mayor Lioneld Jordan, and City Clerk Treasurer Kara Paxton Staff and Others Present: Kit Williams, City Attorney and Paul Becker, Chief Financial Officer. In addition, Glenn Atkins and James Bell with Garrison Financial were also present. Absent: Ruston Cole Garrison Financial: Quarterly Reports ending June 30, 2022 and September 30, 2022 James Bell, Garrison Financial, spoke and explained the financial information covering the last quarterly report. At the end of the quarter the account balance was just over $5.1 million dollars. James gave a breakdown of all the investments. He explained that the portfolio was made up of 64% equities, the rest was in fixed income and cash. The performance showed that the account was down 3.5%, down 4% at the index, stocks were down 4.6%, and bonds down 1.86%. James summarized and said the total account was down 15.6% and down 18% on the index. He finalized his comments by explaining the account had grown by 2% since the last quarter ended on September 30, 2022. Glenn Atkins, Garrison Financial, identified that inflation was a major problem in today's market. He opinioned that the Federal Reserve was behind the curve in raising rates and felt that the rates would raise again by 75 basis points in November, peak in the second quarter of 2023 and then slowly decline. He explained that this could always be seen in looking at ten year Treasury Bonds since when the rates go up the bond prices go down. Policemen's Pension and Relief Fund Board of Trustees Minutes October 20, 2022 Page 2 of 5 James Bell, spoke again and compared the current Police Pension portfolio to the Fire Pension portfolio. He went on to explain that since the portfolio for the Police Pension was about to drop below $5 Million changes in investments would have to be made due to state statute. Eldon Roberts, Board Member, asked if the economy heals, would that allow Garrison Financial to go back to the normal way of managing the Police Pension portfolio. Glenn Atkins explained that he has not found anything in state statute that would prevent the company from doing that. Paul Becker, Chief Financial Officer agreed with Glenn Atkins that the company could go back to normal trading if the Police Pension's account stayed above the $5 million mark. He went on to say that the Fire Pensioner's account was setting at about $1.5 million. There was a brief discussion that happened between several board members and staff about what they experienced in the 1970's and 80's when it came to interest rates when buying a home. Paul Becker spoke and explained that the pensioners would have to hang on in order to see a benefit in the long haul. Glenn Atkins agreed with Paul. There was a brief question and answer session between Paul Becker and the representatives from Garrison Financial. Paul had arrived at the meeting late and wanted to verify what was said before he arrived. Kara Paxton, City Clerk Treasurer verified that the portfolio was down a total of 15.6% YTD and the market was down 18.2%. She also asked how long Garrison Financial expected it to be until the portfolio dropped below $5 million. Glenn Atkins explained that no one knew and that it could happen in one day since the account was sitting at $5.1 million. James Bell also spoke up and explained the account could drop below $5 million due to many different reasons. He listed the reasons as market fluctuation or payment of pensions. Melvin Stanley brought up political issues and changes in individuals who hold offices. He wanted to know if that could possibly affect the market. James Bell explained that they have received this question a lot. If a divided government happens then nothing will be accomplished. Glenn Atkins explained that typically during mid-term elections the parry that is over the house will lose and the house will turn. Any change like this will not affect the investment strategy. Frank Johnson asked for a clarification on if the state statute refers to the portfolio balance or the solvency of the account. Policemen's Pension and Relief Fund Board of Trustees Minutes October 20, 2022 Page 3 of 5 Glenn Atkins explained state statute listed the range of more than $100,000 and less than $5 million can only invest in stock or bond mutual funds, state bonds for federal securities and mainly treasury in this case. Minutes Approval of the April 21, 2022 meeting minutes John Brown moved to approve the April 21, 2022 meeting minutes. Melvin Stanley seconded the motion. The motion passed 6-0. Ruston Cole, Melvin Stanley, Eldon Roberts, City Clerk Kara Paxton and Mayor Jordan voted yes. Ruston Cole was absent. Pension List Changes: Bobby Jones — Passed Away — September 12, 2022 Norma Jones — Surviving Spouse of Bobby Jones Kara Paxton, City Clerk Treasurer explained that Norma Jones was eligible for benefits and had been added to the pension list. Approval of the Pension List: Re -approval of the October 2022 Pension List Approval of the May 2022 — October 2022 Pension Lists Kara Paxton, City Clerk Treasurer requested to have two separate votes on the pension lists. One to re -approve the October 2022 pension list since Bobby had passed away. Then the second one would cover the next 6 months' worth of pension lists since the board would not meet again until April of 2023. Frank Johnson moved to re -approve the October 2022 Pension List. Melvin Stanley seconded the motion. The motion passed 6-0. Ruston Cole, Melvin Stanley, Eldon Roberts, City Clerk Kara Paxton and Mayor Jordan voted yes. Ruston Cole was absent. John Brown moved to approve the November - December 2022 and January — April 2023 Pension Lists. Frank Johnson seconded the motion. The motion passed 6-0. Ruston Cole, Melvin Stanley, Eldon Roberts, City Clerk Kara Paxton and Mayor Jordan voted yes. Ruston Cole was absent. New Business: Revenue Expense Summary 12/31/2021 and 03/31/2022 Kara Paxton, City Clerk Treasurer explained that these reports were generated by the Accounting Department for the pension board by utilizing the information from the quarterly report. Policemen's Pension and Relief Fund Board of Trustees Minutes October 20, 2022 Page 4 of 5 Frank Johnson, Board Member asked why these reports are on the agenda as an action item instead of just informational Paul Becker, CFO explained that these reports have been generated and added due to a past request of the board. Eldon Roberts, Board Member said he liked having the reports as an action item because it provided a chance for the board members to ask questions. He wanted to obtain more information about the turn back monies. He questioned why the estimated premium tax was $91,000. Paul Becker provided an explanation about the calculation and how it includes individuals in the distribution. Eldon Roberts wanted to know if Mr. Becker had seen that the pension would be losing almost $100,000. Paul Becker explained that he would contact Mr. Jody Carreiro, with Osborn, Carreiro & Associates, Inc., and get back to the pensioners regarding Eldon's question. Kara Paxton explained that she understood why Board Member Roberts had asked questions regarding the funds and the request to know the breakdown of how the monies are distributed. She went on to say that the pensioners had not paid FICA taxes and were not eligible for benefits through Social Security. She expressed her concern for the balance of the account and said she would help in any way she could to facilitate information between the City, PRB, and the pensioners. Paul Becker spoke and explained that he believed there was a calculation used in order to determine where the money went on a yearly basis. He believed it first went to underfunded plans. Eldon Roberts spoke and explained he questioned how the calculation was done. Especially since the pension plan would be losing $100,000. Frank Johnson spoke and said he would like to know more about the calculation that was used in order to determine where funds are distributed to. He went on to thank Eldon Roberts for bringing up the issue. Paul Becker explained that he would investigate why the distribution had been calculated the way it had by contacting Mr. Carreiro. Approval for the City Clerk Treasurer to complete the National Survey on behalf of the Police Pension. Eldon Roberts moved to approve for the City Clerk Treasurer to complete the National Survey on behalf of the Police Pension. Frank Johnson seconded the motion. The motion passed 6-0. Ruston Cole, Melvin Stanley, Eldon Roberts, City Clerk Kara Paxton and Mayor Jordan voted yes. Ruston Cole was absent. Policemen's Pension and Relief Fund Board of Trustees Minutes October 20, 2022 Page 5 of 5 Informational: 2022 Election — Results Mayor Lioneld Jordan spoke and read the results of the 2022 Policemen's Pension and Relief Board Member Election. Frank Johnson and Ruston Cole's term is recorded as June 1, 2022 — May 31, 2022. Next Meeting — April 20, 2023 Note: All meetings are tentative and subject to change. The City meetings calendar is located on www.fayetteville-ar.gov Frank Johnson moved to adjourn. Melvin Stanley seconded the motion. The motion passed 6-0. Ruston Cole, Melvin Stanley, Eldon Roberts, City Clerk Kara Paxton and Mayor Jordan voted yes. Ruston Cole was absent. Adjourn: 3:45 p.m. POLICE PENSION FUND May 6800-9800 6800-9800 Month 5 Regular Mo 5335-00 5335-05 5 NAME Benefit YTD Reg Benefit Suppl. YTD Suppl. Future Hours Code Supplement for Fut Supp BAYLES, BOBBI J $ 1,587.41 $ 7,937.05 $ 50.00 $ 250.00 99820 BLACK, MILDRED $ 1,125.64 $ 5,628.20 $ 50.00 $ 250.00 99820 BRADLEY, GERALD $ 4,820.09 $ 24,100.45 $ 50.00 $ 250.00 99820 BRADLEY, RANDALL $ 2,860.17 $ 14,300.85 $ 50.00 $ 250.00 99820 BROWN, JOHN $ 4,362.01 $ 21,810.05 $ 50.00 $ 250.00 99820 CARROLL,RONALD L $ 2,106.04 $ 10,530.20 $ 50.00 $ 250.00 99820 COLE, RUSTON $ 3,065.74 $ 15,328.70 $ 50.00 $ 250.00 99820 DUGGER,GARY $ 3,163.74 $ 15,818.70 $ 50.00 $ 250.00 99820 FOSTER, MARTHA $ 3,207.35 $ 16,036.75 $ 50.00 $ 250.00 99820 FRIEND, JERRY $ 1,970.42 $ 9,852.10 $ 50.00 $ 250.00 99820 HANNA, JANICE $ 1,368.59 $ 6,842.95 $ - $ - HANNA, MARK $ 1,368.59 $ 6,842.95 $ 50.00 $ 250.00 99820 HELDER, TIM $ 5,838.12 $ 29,190.60 $ 50.00 $ 250.00 99820 HOYT, RICK $ 7,460.01 $ 37,300.05 $ 50.00 $ 250.00 99820 HOYT, RICK Plus 25 add pay $ 272.01 $ 1,360.05 JOHNSON, FRANK $ 7,974.81 $ 39,874.05 $ 50.00 $ 250.00 99820 JOHNSON, JOYCE $ 2,455.50 $ 12,277.50 $ 50.00 $ 250.00 99820 NORMA K. JONES $ 3,300.45 $ 16,502.25 $ 50.00 $ 250.00 99820 JONES, MICHELE $ 1,182.26 $ 5,911.30 KILGORE, DONALD $ 2,046.48 $ 10,232.40 $ 50.00 $ 250.00 99820 MARTIN, CONNIE $ 3,692.85 $ 18,464.25 $ 50.00 $ 250.00 99820 MCCAWLEY, LARRY $ 1,694.79 $ 8,473.95 $ 50.00 $ 250.00 99820 MITCHELL, MICHAEL $ 2,305.29 $ 11,526.45 $ 50.00 $ 250.00 99820 MUNSON,ANGELA $ 4,198.15 $ 20,990.75 $ 50.00 $ 250.00 99820 MURPHY, MARGARET $ 405.75 $ 2,028.75 $ 50.00 $ 250.00 99820 PERDUE, LARRY $ 2,322.67 $ 11,613.35 $ 50.00 $ 250.00 99820 PERSHALL, ROBIN $ 1,525.07 $ 7,625.35 $ - $ - PHILLIPS, LINDA SUE $ 1,754.44 $ 8,772.20 $ 50.00 $ 250.00 99820 PRESTON, NORMA J $ 1,601.37 $ 8,006.85 $ 50.00 $ 250.00 99820 RICKMAN, LOREN $ 2,231.07 $ 11,155.35 $ 50.00 $ 250.00 99820 RIGGINS, BONNIE $ 1,669.37 $ 8,346.85 $ 50.00 $ 250.00 99820 ROBERTS, ELDON $ 4,263.24 $ 21,316.20 $ 50.00 $ 250.00 99820 ROBERTS, ELDON Plus 25 add pay $ 587.09 $ 2,935.45 $ - $ - ROBERTS, CAROLYN K $ 3,216.13 $ 16,080.65 $ ROBERTS, CAROLYN K Plus 25 add pay $ 442.89 $ 2,214.45 $ SCHUSTER,JOHN H. $ 1,558.68 $ 7,793.40 $ 50.00 $ 250.00 99820 SCHUSTER, NANCY R. $ 1,558.68 $ 7,793.40 $ - $ STANLEY, MELVIN $ 4,880.07 $ 24,400.35 $ 50.00 $ 250.00 99820 SURLES, VELMA $ 2,721.40 $ 13,607.00 $ 50.00 $ 250.00 TAYLOR, DENNIS $ 2,063.93 $ 10,319.65 $ 50.00 $ 250.00 99820 BLOSS-WATSON, VICKY $ 6,947.05 $ 34,735.25 $ 50.00 $ 250.00 99820 $ 113,175.41 $ 565,877.05 $ 1,650.00 $ 8,250.00 $ POLICE PENSION FUND Jun 6800-9800 6800-9800 Month 6 Regular Mo 5335-00 5335-05 6 NAME Benefit YTD Reg Benefit Suppl. YTD Suppl. Future Hours Code Supplement for Fut Supp BAYLES, BOBBI J $ 1,587.41 $ 9,524.46 $ 50.00 $ 300.00 99820 BLACK, MILDRED $ 1,125.64 $ 6,753.84 $ 50.00 $ 300.00 99820 BRADLEY, GERALD $ 4,820.09 $ 28,920.54 $ 50.00 $ 300.00 99820 BRADLEY, RANDALL $ 2,860.17 $ 17,161.02 $ 50.00 $ 300.00 99820 BROWN, JOHN $ 4,362.01 $ 26,172.06 $ 50.00 $ 300.00 99820 CARROLL,RONALD L $ 2,106.04 $ 12,636.24 $ 50.00 $ 300.00 99820 COLE, RUSTON $ 3,065.74 $ 18,394.44 $ 50.00 $ 300.00 99820 DUGGER,GARY $ 3,163.74 $ 18,982.44 $ 50.00 $ 300.00 99820 FOSTER, MARTHA $ 3,207.35 $ 19,244.10 $ 50.00 $ 300.00 99820 FRIEND, JERRY $ 1,970.42 $ 11,822.52 $ 50.00 $ 300.00 99820 HANNA, JANICE $ 1,368.59 $ 8,211.54 $ - $ - HANNA, MARK $ 1,368.59 $ 8,211.54 $ 50.00 $ 300.00 99820 HELDER, TIM $ 5,838.12 $ 35,028.72 $ 50.00 $ 300.00 99820 HOYT, RICK $ 7,460.01 $ 44,760.06 $ 50.00 $ 300.00 99820 HOYT, RICK Plus 25 add pay $ 272.01 $ 1,632.06 JOHNSON, FRANK $ 7,974.81 $ 47,848.86 $ 50.00 $ 300.00 99820 JOHNSON, JOYCE $ 2,455.50 $ 14,733.00 $ 50.00 $ 300.00 99820 NORMA K. JONES $ 3,300.45 $ 19,802.70 $ 50.00 $ 300.00 99820 JONES, MICHELE $ 1,182.26 $ 7,093.56 KILGORE, DONALD $ 2,046.48 $ 12,278.88 $ 50.00 $ 300.00 99820 MARTIN, CONNIE $ 3,692.85 $ 22,157.10 $ 50.00 $ 300.00 99820 MCCAWLEY, LARRY $ 1,694.79 $ 10,168.74 $ 50.00 $ 300.00 99820 MITCHELL, MICHAEL $ 2,305.29 $ 13,831.74 $ 50.00 $ 300.00 99820 MUNSON,ANGELA $ 4,198.15 $ 25,188.90 $ 50.00 $ 300.00 99820 MURPHY, MARGARET $ 405.75 $ 2,434.50 $ 50.00 $ 300.00 99820 PERDUE, LARRY $ 2,322.67 $ 13,936.02 $ 50.00 $ 300.00 99820 PERSHALL, ROBIN $ 1,525.07 $ 9,150.42 $ - $ - PHILLIPS, LINDA SUE $ 1,754.44 $ 10,526.64 $ 50.00 $ 300.00 99820 PRESTON, NORMA J $ 1,601.37 $ 9,608.22 $ 50.00 $ 300.00 99820 RICKMAN, LOREN $ 2,231.07 $ 13,386.42 $ 50.00 $ 300.00 99820 RIGGINS, BONNIE $ 1,669.37 $ 10,016.22 $ 50.00 $ 300.00 99820 ROBERTS, ELDON $ 4,263.24 $ 25,579.44 $ 50.00 $ 300.00 99820 ROBERTS, ELDON Plus 25 add pay $ 587.09 $ 3,522.54 $ - $ - ROBERTS, CAROLYN K $ 3,216.13 $ 19,296.78 $ ROBERTS, CAROLYN K Plus 25 add pay $ 442.89 $ 2,657.34 $ SCHUSTER,JOHN H. $ 1,558.68 $ 9,352.08 $ 50.00 $ 300.00 99820 SCHUSTER, NANCY R. $ 1,558.68 $ 9,352.08 $ - $ STANLEY, MELVIN $ 4,880.07 $ 29,280.42 $ 50.00 $ 300.00 99820 SURLES, VELMA $ 2,721.40 $ 16,328.40 $ 50.00 $ 300.00 TAYLOR, DENNIS $ 2,063.93 $ 12,383.58 $ 50.00 $ 300.00 99820 BLOSS-WATSON, VICKY $ 6,947.05 $ 41,682.30 $ 50.00 $ 300.00 99820 $ 113,175.41 $ 679,052.46 $ 1,650.00 $ 9,900.00 $ POLICE PENSION FUND Jul 6800-9800 6800-9800 Month 7 Regular Mo 5335-00 5335-05 7 NAME Benefit YTD Reg Benefit Suppl. YTD Suppl. Future Hours Code Supplement for Fut Supp BAYLES, BOBBI J $ 1,587.41 $ 11,111.87 $ 50.00 $ 350.00 99820 BLACK, MILDRED $ 1,125.64 $ 7,879.48 $ 50.00 $ 350.00 99820 BRADLEY, GERALD $ 4,820.09 $ 33,740.63 $ 50.00 $ 350.00 99820 BRADLEY, RANDALL $ 2,860.17 $ 20,021.19 $ 50.00 $ 350.00 99820 BROWN, JOHN $ 4,362.01 $ 30,534.07 $ 50.00 $ 350.00 99820 CARROLL,RONALD L $ 2,106.04 $ 14,742.28 $ 50.00 $ 350.00 99820 COLE, RUSTON $ 3,065.74 $ 21,460.18 $ 50.00 $ 350.00 99820 DUGGER,GARY $ 3,163.74 $ 22,146.18 $ 50.00 $ 350.00 99820 FOSTER, MARTHA $ 3,207.35 $ 22,451.45 $ 50.00 $ 350.00 99820 FRIEND, JERRY $ 1,970.42 $ 13,792.94 $ 50.00 $ 350.00 99820 HANNA, JANICE $ 1,368.59 $ 9,580.13 $ - $ - HANNA, MARK $ 1,368.59 $ 9,580.13 $ 50.00 $ 350.00 99820 HELDER, TIM $ 5,838.12 $ 40,866.84 $ 50.00 $ 350.00 99820 HOYT, RICK $ 7,460.01 $ 52,220.07 $ 50.00 $ 350.00 99820 HOYT, RICK Plus 25 add pay $ 272.01 $ 1,904.07 JOHNSON, FRANK $ 7,974.81 $ 55,823.67 $ 50.00 $ 350.00 99820 JOHNSON, JOYCE $ 2,455.50 $ 17,188.50 $ 50.00 $ 350.00 99820 NORMA K. JONES $ 3,300.45 $ 23,103.15 $ 50.00 $ 350.00 99820 JONES, MICHELE $ 1,182.26 $ 8,275.82 KILGORE, DONALD $ 2,046.48 $ 14,325.36 $ 50.00 $ 350.00 99820 MARTIN, CONNIE $ 3,692.85 $ 25,849.95 $ 50.00 $ 350.00 99820 MCCAWLEY, LARRY $ 1,694.79 $ 11,863.53 $ 50.00 $ 350.00 99820 MITCHELL, MICHAEL $ 2,305.29 $ 16,137.03 $ 50.00 $ 350.00 99820 MUNSON,ANGELA $ 4,198.15 $ 29,387.05 $ 50.00 $ 350.00 99820 MURPHY, MARGARET $ 405.75 $ 2,840.25 $ 50.00 $ 350.00 99820 PERDUE, LARRY $ 2,322.67 $ 16,258.69 $ 50.00 $ 350.00 99820 PERSHALL, ROBIN $ 1,525.07 $ 10,675.49 $ - $ - PHILLIPS, LINDA SUE $ 1,754.44 $ 12,281.08 $ 50.00 $ 350.00 99820 PRESTON, NORMA J $ 1,601.37 $ 11,209.59 $ 50.00 $ 350.00 99820 RICKMAN, LOREN $ 2,231.07 $ 15,617.49 $ 50.00 $ 350.00 99820 RIGGINS, BONNIE $ 1,669.37 $ 11,685.59 $ 50.00 $ 350.00 99820 ROBERTS, ELDON $ 4,263.24 $ 29,842.68 $ 50.00 $ 350.00 99820 ROBERTS, ELDON Plus 25 add pay $ 587.09 $ 4,109.63 $ - $ - ROBERTS, CAROLYN K $ 3,216.13 $ 22,512.91 $ ROBERTS, CAROLYN K Plus 25 add pay $ 442.89 $ 3,100.23 $ SCHUSTER,JOHN H. $ 1,558.68 $ 10,910.76 $ 50.00 $ 350.00 99820 SCHUSTER, NANCY R. $ 1,558.68 $ 10,910.76 $ - $ STANLEY, MELVIN $ 4,880.07 $ 34,160.49 $ 50.00 $ 350.00 99820 SURLES, VELMA $ 2,721.40 $ 19,049.80 $ 50.00 $ 350.00 TAYLOR, DENNIS $ 2,063.93 $ 14,447.51 $ 50.00 $ 350.00 99820 BLOSS-WATSON, VICKY $ 6,947.05 $ 48,629.35 $ 50.00 $ 350.00 99820 $ 113,175.41 $ 792,227.87 $ 1,650.00 $ 11,550.00 $ POLICE PENSION FUND Aug 6800-9800 6800-9800 Month 8 Regular Mo 5335-00 5335-05 8 NAME Benefit YTD Reg Benefit Suppl. YTD Suppl. Future Hours Code Supplement for Fut Supp BAYLES, BOBBI J $ 1,587.41 $ 12,699.28 $ 50.00 $ 400.00 99820 BLACK, MILDRED $ 1,125.64 $ 9,005.12 $ 50.00 $ 400.00 99820 BRADLEY, GERALD $ 4,820.09 $ 38,560.72 $ 50.00 $ 400.00 99820 BRADLEY, RANDALL $ 2,860.17 $ 22,881.36 $ 50.00 $ 400.00 99820 BROWN, JOHN $ 4,362.01 $ 34,896.08 $ 50.00 $ 400.00 99820 CARROLL,RONALD L $ 2,106.04 $ 16,848.32 $ 50.00 $ 400.00 99820 COLE, RUSTON $ 3,065.74 $ 24,525.92 $ 50.00 $ 400.00 99820 DUGGER,GARY $ 3,163.74 $ 25,309.92 $ 50.00 $ 400.00 99820 FOSTER, MARTHA $ 3,207.35 $ 25,658.80 $ 50.00 $ 400.00 99820 FRIEND, JERRY $ 1,970.42 $ 15,763.36 $ 50.00 $ 400.00 99820 HANNA, JANICE $ 1,368.59 $ 10,948.72 $ - $ - HANNA, MARK $ 1,368.59 $ 10,948.72 $ 50.00 $ 400.00 99820 HELDER, TIM $ 5,838.12 $ 46,704.96 $ 50.00 $ 400.00 99820 HOYT, RICK $ 7,460.01 $ 59,680.08 $ 50.00 $ 400.00 99820 HOYT, RICK Plus 25 add pay $ 272.01 $ 2,176.08 JOHNSON, FRANK $ 7,974.81 $ 63,798.48 $ 50.00 $ 400.00 99820 JOHNSON, JOYCE $ 2,455.50 $ 19,644.00 $ 50.00 $ 400.00 99820 NORMA K. JONES $ 3,300.45 $ 26,403.60 $ 50.00 $ 400.00 99820 JONES, MICHELE $ 1,182.26 $ 9,458.08 KILGORE, DONALD $ 2,046.48 $ 16,371.84 $ 50.00 $ 400.00 99820 MARTIN, CONNIE $ 3,692.85 $ 29,542.80 $ 50.00 $ 400.00 99820 MCCAWLEY, LARRY $ 1,694.79 $ 13,558.32 $ 50.00 $ 400.00 99820 MITCHELL, MICHAEL $ 2,305.29 $ 18,442.32 $ 50.00 $ 400.00 99820 MUNSON,ANGELA $ 4,198.15 $ 33,585.20 $ 50.00 $ 400.00 99820 MURPHY, MARGARET $ 405.75 $ 3,246.00 $ 50.00 $ 400.00 99820 PERDUE, LARRY $ 2,322.67 $ 18,581.36 $ 50.00 $ 400.00 99820 PERSHALL, ROBIN $ 1,525.07 $ 12,200.56 $ - $ - PHILLIPS, LINDA SUE $ 1,754.44 $ 14,035.52 $ 50.00 $ 400.00 99820 PRESTON, NORMA J $ 1,601.37 $ 12,810.96 $ 50.00 $ 400.00 99820 RICKMAN, LOREN $ 2,231.07 $ 17,848.56 $ 50.00 $ 400.00 99820 RIGGINS, BONNIE $ 1,669.37 $ 13,354.96 $ 50.00 $ 400.00 99820 ROBERTS, ELDON $ 4,263.24 $ 34,105.92 $ 50.00 $ 400.00 99820 ROBERTS, ELDON Plus 25 add pay $ 587.09 $ 4,696.72 $ - $ - ROBERTS, CAROLYN K $ 3,216.13 $ 25,729.04 $ ROBERTS, CAROLYN K Plus 25 add pay $ 442.89 $ 3,543.12 $ SCHUSTER,JOHN H. $ 1,558.68 $ 12,469.44 $ 50.00 $ 400.00 99820 SCHUSTER, NANCY R. $ 1,558.68 $ 12,469.44 $ - $ STANLEY, MELVIN $ 4,880.07 $ 39,040.56 $ 50.00 $ 400.00 99820 SURLES, VELMA $ 2,721.40 $ 21,771.20 $ 50.00 $ 400.00 TAYLOR, DENNIS $ 2,063.93 $ 16,511.44 $ 50.00 $ 400.00 99820 BLOSS-WATSON, VICKY $ 6,947.05 $ 55,576.40 $ 50.00 $ 400.00 99820 $ 113,175.41 $ 905,403.28 $ 1,650.00 $ 13,200.00 $ POLICE PENSION FUND Sep 6800-9800 6800-9800 Month 9 Regular Mo 5335-00 5335-05 9 NAME Benefit YTD Reg Benefit Suppl. YTD Suppl. Future Hours Code Supplement for Fut Supp BAYLES, BOBBI J $ 1,587.41 $ 14,286.69 $ 50.00 $ 450.00 99820 BLACK, MILDRED $ 1,125.64 $ 10,130.76 $ 50.00 $ 450.00 99820 BRADLEY, GERALD $ 4,820.09 $ 43,380.81 $ 50.00 $ 450.00 99820 BRADLEY, RANDALL $ 2,860.17 $ 25,741.53 $ 50.00 $ 450.00 99820 BROWN, JOHN $ 4,362.01 $ 39,258.09 $ 50.00 $ 450.00 99820 CARROLL,RONALD L $ 2,106.04 $ 18,954.36 $ 50.00 $ 450.00 99820 COLE, RUSTON $ 3,065.74 $ 27,591.66 $ 50.00 $ 450.00 99820 DUGGER,GARY $ 3,163.74 $ 28,473.66 $ 50.00 $ 450.00 99820 FOSTER, MARTHA $ 3,207.35 $ 28,866.15 $ 50.00 $ 450.00 99820 FRIEND, JERRY $ 1,970.42 $ 17,733.78 $ 50.00 $ 450.00 99820 HANNA, JANICE $ 1,368.59 $ 12,317.31 $ - $ - HANNA, MARK $ 1,368.59 $ 12,317.31 $ 50.00 $ 450.00 99820 HELDER, TIM $ 5,838.12 $ 52,543.08 $ 50.00 $ 450.00 99820 HOYT, RICK $ 7,460.01 $ 67,140.09 $ 50.00 $ 450.00 99820 HOYT, RICK Plus 25 add pay $ 272.01 $ 2,448.09 JOHNSON, FRANK $ 7,974.81 $ 71,773.29 $ 50.00 $ 450.00 99820 JOHNSON, JOYCE $ 2,455.50 $ 22,099.50 $ 50.00 $ 450.00 99820 NORMA K. JONES $ 3,300.45 $ 29,704.05 $ 50.00 $ 450.00 99820 JONES, MICHELE $ 1,182.26 $ 10,640.34 KILGORE, DONALD $ 2,046.48 $ 18,418.32 $ 50.00 $ 450.00 99820 MARTIN, CONNIE $ 3,692.85 $ 33,235.65 $ 50.00 $ 450.00 99820 MCCAWLEY, LARRY $ 1,694.79 $ 15,253.11 $ 50.00 $ 450.00 99820 MITCHELL, MICHAEL $ 2,305.29 $ 20,747.61 $ 50.00 $ 450.00 99820 MUNSON,ANGELA $ 4,198.15 $ 37,783.35 $ 50.00 $ 450.00 99820 MURPHY, MARGARET $ 405.75 $ 3,651.75 $ 50.00 $ 450.00 99820 PERDUE, LARRY $ 2,322.67 $ 20,904.03 $ 50.00 $ 450.00 99820 PERSHALL, ROBIN $ 1,525.07 $ 13,725.63 $ - $ - PHILLIPS, LINDA SUE $ 1,754.44 $ 15,789.96 $ 50.00 $ 450.00 99820 PRESTON, NORMA J $ 1,601.37 $ 14,412.33 $ 50.00 $ 450.00 99820 RICKMAN, LOREN $ 2,231.07 $ 20,079.63 $ 50.00 $ 450.00 99820 RIGGINS, BONNIE $ 1,669.37 $ 15,024.33 $ 50.00 $ 450.00 99820 ROBERTS, ELDON $ 4,263.24 $ 38,369.16 $ 50.00 $ 450.00 99820 ROBERTS, ELDON Plus 25 add pay $ 587.09 $ 5,283.81 $ - $ - ROBERTS, CAROLYN K $ 3,216.13 $ 28,945.17 $ ROBERTS, CAROLYN K Plus 25 add pay $ 442.89 $ 3,986.01 $ SCHUSTER,JOHN H. $ 1,558.68 $ 14,028.12 $ 50.00 $ 450.00 99820 SCHUSTER, NANCY R. $ 1,558.68 $ 14,028.12 $ - $ STANLEY, MELVIN $ 4,880.07 $ 43,920.63 $ 50.00 $ 450.00 99820 SURLES, VELMA $ 2,721.40 $ 24,492.60 $ 50.00 $ 450.00 TAYLOR, DENNIS $ 2,063.93 $ 18,575.37 $ 50.00 $ 450.00 99820 BLOSS-WATSON, VICKY $ 6,947.05 $ 62,523.45 $ 50.00 $ 450.00 99820 $ 113,175.41 $ 1,018,578.69 $ 1,650.00 $ 14,850.00 $ POLICE PENSION FUND Oct 6800-9800 6800-9800 Month 10 Regular Mo 5335-00 5335-05 10 NAME Benefit YTD Reg Benefit Suppl. YTD Suppl. Future Hours Code Supplement for Fut Supp BAYLES, BOBBI J $ 1,587.41 $ 15,874.10 $ 50.00 $ 500.00 99820 BLACK, MILDRED $ 1,125.64 $ 11,256.40 $ 50.00 $ 500.00 99820 BRADLEY, GERALD $ 4,820.09 $ 48,200.90 $ 50.00 $ 500.00 99820 BRADLEY, RANDALL $ 2,860.17 $ 28,601.70 $ 50.00 $ 500.00 99820 BROWN, JOHN $ 4,362.01 $ 43,620.10 $ 50.00 $ 500.00 99820 CARROLL,RONALD L $ 2,106.04 $ 21,060.40 $ 50.00 $ 500.00 99820 COLE, RUSTON $ 3,065.74 $ 30,657.40 $ 50.00 $ 500.00 99820 DUGGER,GARY $ 3,163.74 $ 31,637.40 $ 50.00 $ 500.00 99820 FOSTER, MARTHA $ 3,207.35 $ 32,073.50 $ 50.00 $ 500.00 99820 FRIEND, JERRY $ 1,970.42 $ 19,704.20 $ 50.00 $ 500.00 99820 HANNA, JANICE $ 1,368.59 $ 13,685.90 $ - $ - HANNA, MARK $ 1,368.59 $ 13,685.90 $ 50.00 $ 500.00 99820 HELDER, TIM $ 5,838.12 $ 58,381.20 $ 50.00 $ 500.00 99820 HOYT, RICK $ 7,460.01 $ 74,600.10 $ 50.00 $ 500.00 99820 HOYT, RICK Plus 25 add pay $ 272.01 $ 2,720.10 JOHNSON, FRANK $ 7,974.81 $ 79,748.10 $ 50.00 $ 500.00 99820 JOHNSON, JOYCE $ 2,455.50 $ 24,555.00 $ 50.00 $ 500.00 99820 NORMA K. JONES $ 3,300.45 $ 33,004.50 $ 50.00 $ 500.00 99820 JONES, MICHELE $ 1,182.26 $ 11,822.60 KILGORE, DONALD $ 2,046.48 $ 20,464.80 $ 50.00 $ 500.00 99820 MARTIN, CONNIE $ 3,692.85 $ 36,928.50 $ 50.00 $ 500.00 99820 MCCAWLEY, LARRY $ 1,694.79 $ 16,947.90 $ 50.00 $ 500.00 99820 MITCHELL, MICHAEL $ 2,305.29 $ 23,052.90 $ 50.00 $ 500.00 99820 MUNSON,ANGELA $ 4,198.15 $ 41,981.50 $ 50.00 $ 500.00 99820 MURPHY, MARGARET $ 405.75 $ 4,057.50 $ 50.00 $ 500.00 99820 PERDUE, LARRY $ 2,322.67 $ 23,226.70 $ 50.00 $ 500.00 99820 PERSHALL, ROBIN $ 1,525.07 $ 15,250.70 $ - $ - PHILLIPS, LINDA SUE $ 1,754.44 $ 17,544.40 $ 50.00 $ 500.00 99820 PRESTON, NORMA J $ 1,601.37 $ 16,013.70 $ 50.00 $ 500.00 99820 RICKMAN, LOREN $ 2,231.07 $ 22,310.70 $ 50.00 $ 500.00 99820 RIGGINS, BONNIE $ 1,669.37 $ 16,693.70 $ 50.00 $ 500.00 99820 ROBERTS, ELDON $ 4,263.24 $ 42,632.40 $ 50.00 $ 500.00 99820 ROBERTS, ELDON Plus 25 add pay $ 587.09 $ 5,870.90 $ - $ - ROBERTS, CAROLYN K $ 3,216.13 $ 32,161.30 $ ROBERTS, CAROLYN K Plus 25 add pay $ 442.89 $ 4,428.90 $ SCHUSTER,JOHN H. $ 1,558.68 $ 15,586.80 $ 50.00 $ 500.00 99820 SCHUSTER, NANCY R. $ 1,558.68 $ 15,586.80 $ - $ STANLEY, MELVIN $ 4,880.07 $ 48,800.70 $ 50.00 $ 500.00 99820 SURLES, VELMA $ 2,721.40 $ 27,214.00 $ 50.00 $ 500.00 TAYLOR, DENNIS $ 2,063.93 $ 20,639.30 $ 50.00 $ 500.00 99820 BLOSS-WATSON, VICKY $ 6,947.05 $ 69,470.50 $ 50.00 $ 500.00 99820 $ 113,175.41 $ 1,131,754.10 $ 1,650.00 $ 16,500.00 $ Police Pension Fund Revenue Expense Summary 12/31/2022 2021 2020 2019 2018 2017 2016 2015 2014 Revenues: Employee Contributions $ $ $ $ $ $ $ $ $ $ Employer Contributions $ $ $ $ $ $ $ $ $ $ State Insurance Tax $ 155,047.43 $ 197,968.02 $ 196,514.94 $ 183,385.77 $ 186,152.09 $ 184,445.89 $ 163,140.57 $ 160,680.88 $ 152,519.00 $ Local Millage (A mills) $ 751,097.07 $ 685,875.24 $ 643,110.44 $ 624,223.49 $ 587,536.68 $ 566,513.87 $ 551,507.74 $ 539,827.30 $ 525,620.07 $ 10% City Fines and Forfeitures $ 107,376.50 $ 92,641.86 $ 100,394.32 $ 146,297.69 $ 145,562.44 $ 164,626.55 $ 141,769.98 $ 124,486.54 $ 101,595.92 $ Sale of Confiscated Goods $ 14,980.96 $ 7,921.85 $ 1,235.52 $ 5,288.85 $ 4,003.00 $ - $ 3,733.56 $ 4,068.81 $ 5,367.25 $ Interest and Dividends $ 128,457.59 $ 139,645.15 $ 125,523.20 $ 136,459.26 $ 132,685.16 $ 131,204.03 $ 149,556.88 $ 175,768.80 $ 250,152.16 $ Gain (Loss) on Sales $ 87,676.05 $ 222,745.73 $ 127,123.94 $ (83,178.67) $ 217,689.67 $ 200,446.71 $ (18,559.71) $ 122,582.56 $ 513,762.17 $ Police Supplement $ 30,700.00 $ 30,700.00 $ 31,600.00 $ 31,500.00 $ 32,400.00 $ 33,300.00 $ 34,800.00 $ 35,100.00 $ 37,200.00 $ Future Supplement $ 79,603.92 $ 77,662.20 $ 80,360.00 $ 78,400.00 $ 80,640.00 $ 72,520.00 $ 58,520.00 $ 43,290.00 $ 44,280.00 $ Misc Revenue $ - $ - $ 310.29 $ - $ 3,432.14 $ 3,862.29 $ - $ 2.00 $ - $ Total Revenue Expenditures Regular Monthly Benefits Police Supplement Future Supplement Investment Manager Fees Other Expenses: Office Supplies/printing Audit Fees Professional Services Legal Fees Bank Fees Total Expenses Net Income (Loss) Before Market Adj * * * Market Adjustment** Net Income (Loss) 2013 142,151.31 494,749.58 112,992.59 1,898.28 263,480.49 160,066.59 37,800.00 46,620.00 195.77 $ 1,354,939.52 $ 1,455,160.05 $ 1,306,172.65 $ 1,122,376.39 $ 1,390,101.18 $ 1,356,919.34 $ 1,084,469.02 $ 1,205,806.89 $ 1,630,496.57 $ 1,259,954.61 $ 1,358,304.92 $ 1,358,104.92 $ 1,395,168.88 $ 1,420,374.92 $ 1,443,274.40 $ 1,462,045.56 $ 1,471,260.21 $ 1,494,905.12 $ 1,533,945.72 $ 1,535,372.30 $ 19,800.00 $ 19,800.00 $ 20,700.00 $ 20,900.00 $ 21,600.00 $ 22,200.00 $ 22,750.00 $ 23,250.00 $ 24,550.00 $ 24,650.00 $ 79,603.92 $ 77,662.20 $ 78,064.00 $ 78,400.00 $ 80,640.00 $ 72,520.00 $ 58,520.00 $ 43,290.00 $ 44,280.00 $ 45,510.00 $ 29,156.00 $ 29,856.00 $ 28,119.00 $ 28,924.00 $ 30,335.00 $ 29,859.75 $ 30,378.01 $ 33,743.02 $ 56,395.86 $ 66,240.45 $ - $ - $ - $ - $ - $ - $ - $ - $ 51.52 $ 56.81 $ 3,500.00 $ 3,500.00 $ 3,500.00 $ 3,500.00 $ 3,500.00 $ 3,500.00 $ 3,500.00 $ 3,500.00 $ 3,500.00 $ 3,400.00 $ - $ - $ - $ - $ - $ - $ 1,160.00 $ - $ 103.75 $ - $ 288.94 $ 404.50 $ 316.37 $ 232.09 $ 36.80 $ 25.29 $ 24.99 $ 43.39 $ 77.18 $ 99.10 $ 1,490,653.78 $ 1,489,327.62 $ 1,525,868.25 $ 1,552,331.01 $ 1,579,386.20 $ 1,590,150.60 $ 1,587,593.21 $ 1,598,731.53 $ 1,662,904.03 $ 1,675,328.66 $ (135,714.26) $ (34,167.57) $ (219,695.60) $ (429,954.62) $ (189,285.02) $ (233,231.26) $ (503,124.19) $ (392,924.64) $ (32,407.46) $ (415,374.05) $ (771,933.87) $ 379,075.96 $ 241,234.00 $ 934,853.76 $ (490,293.41) $ 512,708.24 $ 339,636.99 $ (491,233.44) $ (355,917.05) $ 95,442.84 $ (907,648.13) $ 344,908.39 $ 21,538.40 $ 504,899.14 $ (679,578.43) $ 279,476.98 $ (163,487.20) $ (884,158.08) $ (388,324.51) $ (319,931.21) Book Value Total Reserve Assets * $ 4,503,800.67 $ 4,621,087.61 $ 4,663,684.22 $ 4,894,011.05 $ 5,317,033.82 $ 5,517,318.84 $ 5,740,891.38 $ 6,249,168.46 $ 6,653,793.10 $ 6,682,459.70 Market Value Total Reserve Assets * $ 5,434,371.02 $ 6,368,590.87 $ 6,003,980.03 $ 6,046,385.90 $ 5,588,421.78 $ 6,337,638.32 $ 5,928,508.61 $ 6,134,675.67 $ 7,030,014.20 $ 7,443,057.63 *Assets less any liabilities ** Market Value calculated at year end 4/14/2023 K:\Police Pension\Revenue & Expense Summary\2022 PP Revenue Expense Summary\Police Pension Summary 12.31.22 Police Pension Fund Revenue Expense Summary 3/31/2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Revenues: Employee Contributions $ - $ $ $ $ $ $ $ $ $ Employer Contributions $ - $ $ $ $ $ $ $ $ - $ State Insurance Tax $ 10,900.00 $ 155,047.43 $ 197,968.02 $ 196,514.94 $ 183,385.77 $ 186,152.09 $ 184,445.89 $ 163,140.57 $ 160,680.88 $ 152,519.00 Local Millage (A mills) $ 47,938.55 $ 751,097.07 $ 685,875.24 $ 643,110.44 $ 624,223.49 $ 587,536.68 $ 566,513.87 $ 551,507.74 $ 539,827.30 $ 525,620.07 10% City Fines and Forfeitures $ 27,397.01 $ 107,376.50 $ 92,641.86 $ 100,394.32 $ 146,297.69 $ 145,562.44 $ 164,626.55 $ 141,769.98 $ 124,486.54 $ 101,595.92 Sale of Confiscated Goods $ 686.13 $ 14,980.96 $ 7,921.85 $ 1,235.52 $ 5,288.85 $ 4,003.00 $ - $ 3,733.56 $ 4,068.81 $ 5,367.25 Interest and Dividends $ 32,291.34 $ 128,457.59 $ 139,645.15 $ 125,523.20 $ 136,459.26 $ 132,685.16 $ 131,204.03 $ 149,556.88 $ 175,768.80 $ 250,152.16 Gain (Loss) on Sales $ (13,289.56) $ 87,676.05 $ 222,745.73 $ 127,123.94 $ (83,178.67) $ 217,689.67 $ 200,446.71 $ (18,559.71) $ 122,582.56 $ 513,762.17 Police Supplement $ $ 30,700.00 $ 30,700.00 $ 31,600.00 $ 31,500.00 $ 32,400.00 $ 33,300.00 $ 34,800.00 $ 35,100.00 $ 37,200.00 Future Supplement $ $ 79,603.92 $ 77,662.20 $ 80,360.00 $ 78,400.00 $ 80,640.00 $ 72,520.00 $ 58,520.00 $ 43,290.00 $ 44,280.00 Misc Revenue $ $ - $ - $ 310.29 $ - $ 3,432.14 $ 3,862.29 $ - $ 2.00 $ Total Revenue $ 105,923.47 $ 1,354,939.52 $ 1,455,160.05 $ 1,306,172.65 $ 1,122,376.39 $ 1,390,101.18 $ 1,356,919.34 $ 1,084,469.02 $ 1,205,806.89 $ 1,630,496.57 Expenditures Regular Monthly Benefits $ 339,526.23 $ 1,358,304.92 $ 1,358,104.92 $ 1,395,168.88 $ 1,420,374.92 $ 1,443,274.40 $ 1,462,045.56 $ 1,471,260.21 $ 1,494,905.12 $ 1,533,945.72 Police Supplement $ 4,950.00 $ 19,800.00 $ 19,800.00 $ 20,700.00 $ 20,900.00 $ 21,600.00 $ 22,200.00 $ 22,750.00 $ 23,250.00 $ 24,550.00 Future Supplement $ - $ 79,603.92 $ 77,662.20 $ 78,064.00 $ 78,400.00 $ 80,640.00 $ 72,520.00 $ 58,520.00 $ 43,290.00 $ 44,280.00 Investment Manager Fees $ 6,733.00 $ 29,156.00 $ 29,856.00 $ 28,119.00 $ 28,924.00 $ 30,335.00 $ 29,859.75 $ 30,378.01 $ 33,743.02 $ 56,395.86 Other Expenses: $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Office Supplies/printing $ $ $ - $ - $ - $ - $ - $ - $ - $ 51.52 Audit Fees $ $ 3,500.00 $ 3,500.00 $ 3,500.00 $ 3,500.00 $ 3,500.00 $ 3,500.00 $ 3,500.00 $ 3,500.00 $ 3,500.00 Professional Services $ $ - $ - $ - $ - $ - $ - $ 1,160.00 $ - $ 103.75 Legal Fees $ $ - $ - $ - $ - $ - $ - $ - $ - Bank Fees $ 19.58 $ 288.94 $ 404.50 $ 316.37 $ 232.09 $ 36.80 $ 25.29 $ 24.99 $ 43.39 $ 77.18 Total Expenses $ 351,228.81 $ 1,490,653.78 $ 1,489,327.62 $ 1,525,868.25 $ 1,552,331.01 $ 1,579,386.20 $ 1,590,150.60 $ 1,587,593.21 $ 1,598,731.53 $ 1,662,904.03 Net Income (Loss) Before Market Adj *** $ (245,305.34) $ (135,714.26) $ (34,167.57) $ (219,695.60) $ (429,954.62) $ (189,285.02) $ (233,231.26) $ (503,124.19) $ (392,924.64) $ (32,407.46) Market Adjustment** $ - $ (771,933.87) $ 379,075.96 $ 241,234.00 $ 934,853.76 $ (490,293.41) $ 512,708.24 $ 339,636.99 $ (491,233.44) $ (355,917.05) Net Income (Loss) $ (245,305.34) $ (907,648.13) $ 344,908.39 $ 21,538.40 $ 504,899.14 $ (679,578.43) $ 279,476.98 $ (163,487.20) $ (884,158.08) $ (388,324.51) Book Value Total Reserve Assets * $ 4,250,402.31 $ 4,503,800.67 $ 4,621,087.61 $ 4,663,684.22 $ 4,894,011.05 $ 5,317,033.82 $ 5,517,318.84 $ 5,740,891.38 $ 6,249,168.46 $ 6,653,793.10 Market Value Total Reserve Assets * $ 5,532,590.89 $ 5,434,371.02 $ 6,368,590.87 $ 6,003,980.03 $ 6,046,385.90 $ 5,588,421.78 $ 6,337,638.32 $ 5,928,508.61 $ 6,134,675.67 $ 7,030,014.20 *Assets less any liabilities ** Market Value calculated at year end Osborn, Carreiro & Associates, Inc. ACTUARIES • CONSULTANTS • ANALYSTS September 19, 2022 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 2023 Premium Tax Allocation 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 Plan. Actual Benefits Valued l/l/2022 $1,358,105 Base Benefits Valued l/l/2022 $796,919 Actuarial Cost of Base Benefits $304,724 Estimated Premium Tax 2023 30% of Actuarial Cost $91,417 Estimated Additional Allocation 2023, if eligible 15% of Actuarial Cost $45,709 2022 Employer Contributions for Additional Allocation 2022 Eligibility 80% of Actuarial Cost $243,779 Actual 2021 Reported Employer Contribution $816,480 Shortfall based on 2021 contributions $0 Expected Eligibility based on 2021 contributions Yes The premium tax formula allocates monies based on an Actuarial Cost derived from a Local Plan's Base Benefits (that is, 50% of Final Salary, minimum $350 per month for paid members, and $100 per month for volunteer members). Each Local Plan receives 30% of this calculated Actuarial Cost as Premium Tax. A Local Plan is also eligible for an Additional Allocation equal to 15% 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. The contributions made during calendar year 2022 will determine eligibility for Additional Allocation for 2023. 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 2022. As a reminder, these numbers constitute estimates and may vary materially from the actual premium tax allocation. In particular, an additional employer contribution equal to the shortfall estimate shown will not guarantee Additional Allocation eligibility in 2023. Please note that the Additional Allocation may be proportionally reduced due to a shortfall in Premium Tax revenues. Such a reduction last occurred in 2018, but has not occurred in recent years. Analysis of Fayetteville Premium Tax Distributed Based on Valuation A Valuation Benefits Valued B Base Benefits Valued C Valuation Accrued Liability D Base Benefit Accrued Liability E Market Value of Assets F Unfunded Base Benefit AL (D - E) G Amortization Factor H Base Benefit Actuarial Cost (F/G) I Premium Tax Amount (30% of H) J Additional Allocation (15% of H) Fire Fire Fire Police Police Police 2021 2022 Proj 2023 2021 2022 Proj 2023 1/1/2020 1/1/2021 1/1/2022 1/1/2020 1/1/2021 1/1/2022 1,257,843 1,257,843 1,214,210 1,410,487 1,358,105 1,358,105 704,380 704,380 679,663 824,489 796,919 796,919 14,474,931 14,068,129 14,068,129 16,059, 261 15, 204,980 15, 204,080 8,304,040 7,874,125 7,753,151 9,624,153 8,921,800 8,970,820 2,731,253 2,148,179 1,930,020 6,144,284 6,196,387 6,560,436 5,572,787 5,725,946 5,823,131 3,479,869 2,725,413 2,410,384 7.910065 7.910065 7.910065 7.910065 7.910065 7.910065 704,518 723,881 736,167 439,929 344,550 304,724 211,356 217,164 220,850 131,979 103,365 91,417 105,678 108,582 110,425 65,989 51,683 45,709