Loading...
HomeMy WebLinkAboutAgenda Police Pension 012710Agenda City of Palm Beach Gardens Police Officers' Pension Fund MEETING OF JANUARY 27, 2010 LOCATION: City Council Chambers' 10500 North Military Trail Palm Beach Gardens, FL 33410 TIME: 9AM 1. Call Meeting To Order 2. Roll Call: • Lt. Jay Spencer, Chairman • David Pierson, Secretary • Jules Barone, Trustee • Brad Seidensticker, Trustee • Wayne Sidey, Trustee 3. Investment Manager Report - ICC Capital (Steve Stack) 4. Investment Consultant Report - Thistle Asset Consulting (John McCann) 5. Administrator Report - Resource Centers (Audrey Ross) 6. Attorney Report - Law Offices of Perry & Jensen (Bonni Jensen) • IRS Mileage Rate for 2010 - Memo • Revised DROP Distribution Policy 7. Approval of Minutes • October 29, 2009 Regular Meeting 8. Disbursements 9. Benefit Approvals 10. Old Business 11. Other Business • Actuarial Impact Statement Regarding Ordinance Changes 12. September 30, 2009 Audited Financial Statement Presentation - Cherry, Bekaert & Holland (Jim Burdick & Rowana Flitan) 13. Adjourn Next Meetinci Date: Previously scheduled for Thursday April 29, 2010 @ 9AM PLEASE NOTE: Should any interested party seek to appeal any decision of this Board with respect to any matter considered at such meeting or hearing, s /he will need a record of the proceedings and for such purpose may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based. In accordance with the Americans With Disabilities Act of 1990, persons needing a special accommodation to participate in this meeting should contact the The Pension Resource Center, LLC no later than four days prior to the meeting. City of Palm Beach Gardens Police Officers' Pension Fund Minutes of the Meeting Held OCTOBER 29, 2009 The regular meeting of the Board of Trustees of the City of Palm Beach Gardens Police Officers' Pension Fund was called to order at 9:17 AM by Jay Spencer in the Council Chambers at the Palm Beach Gardens City Hall at 10500 North Military Trail, Palm Beach Gardens, Florida. TRUSTEES PRESENT Jay Spencer, Chairman David Pierson, Secretary Brad Seidensticker, Trustee (departed 3:51) Jules Barone, Trustee Wayne Sidey, Trustee OTHERS PRESENT Audrey Ross (Resource Centers) Bonni Jensen (Law Offices of Perry & Jensen) Steve Stack (ICC Capital Management) Donna Cannon (PBG Clerk's Office) Brendon Vavrica (Thistle Asset Consulting) INVESTMENT MANAGER REPORT ICC Capital — Presented by Steve Stack Mr. Stack commented that it has been the same theme for the past three quarters. The fixed income has done great, and he stated that the changes in management that occurred on the fixed income side had a positive effect on the portfolio. Mr. Stack reviewed the sector attributions on the growth side and stated that they hold a neutral weighting in all the sectors; although they are a little underweighted in consumer staples because there has not been much growth there. Also, the lower quality bonds do better coming out of a recession in which there is a hard and fast recovery taking place in the markets. Mr. Stack reviewed the fixed income portfolio and reported that they started the quarter with $11,785,265 and they ended with $12,695,048, which was a total gain of $374,184 for the quarter. There is 86.9% in fixed income and $13.1% in cash, which gives the total fund a return of 3.14% versus the index at 3.74 %. The total bonds for the quarter were slightly ahead at 3.75% versus 3.74 %. Mr. Stack stated that they have gone longer in the Government debt and shorted on the correlated debit. Also there is more deflation then inflation so that makes them go light on duration because they are a yield manager. As far as the growth portfolio, they begun the quarter with $4,165,952 and ended with $4,954,316, which was a gain of $788,877. They currently hold 94.2% in equities and $5.8% in cash. The total fund outperformed for the quarter at 18.94% versus 13.98 %, and the total equities also outperformed at 19.81% versus 13.98 %. Mr. Stack explained that they will probably not take a lot of risk on the fixed income side because we will probably be seeing inflation start happening within the next 2 to 3 years. Also, the dollar has started to rally which will hurt the equity side. Mr. Stack commented that the portfolios in both funds are in a good position. The Board discussed the oil prices and shares. Mr. Seidensticker shared his thoughts on oil and the global economics as well. Minutes 10 -29 -09 - Palm Beach Gardens Police.doc Page 1 of 5 Mr. Seidensticker had some comments in regards to what he sees as "upcoming risks ". The first risk he is worried about is when inflation gets heated up. Also the defecate spending by the Government, China, and India are growing and he thinks we should put more money into International to maintain more value. The Board discussed different options of how to preserve and protect the fund for any other upcoming "bust" that may happen again. Mr. Pierson explained that there is really nothing that you can do except to move your money into cash, and if you did that then you would be missing out on the returns. Mr. Spencer commented that they are adding a VEBA fund within the City and they had GRS do a study. He explained that the stipulation of having an investment assumption of 2 -4% is more reasonable now days because of the markets and the environment. He wanted the Boards thoughts on reducing the assumption rate for this pension plan. Ms. Jensen explained that if you lower your assumption rate it will help in the long run, but you do not want to lower it during a low year because it will tremendously increase the City's contribution rates. The Board had a lengthy discussion on the different rates and options. Mr. Vavrica agreed that the Board could increase their International exposure. He stated that currently there is 7% in International and the max they can go to right now is 10% until the pending Ordinance change takes place, then they will be able to invest up to 25 %. MOTION: Mr. Sidey made a motion to increase the International exposure to 9.5% (with the funds to be taken from the fixed income account and to split equally between all 3 International accounts held with Vanguard). SECOND: Mr. Pierson seconded the motion. CARRIED: The motion carried unanimously 5 -0. Lastly, Mr. Pierson asked if ICC was able to buy ETF's. Mr. Stack explained that he can expand the large cap growth side to be able to. He reviewed the process in doing that and also explained specifically what they can buy into. He commented that if they did buy into ETF's then it would be considered unclassified by ICC. Mr. Pierson commented that he thinks this is something that they should look into and have it added into their IPG. Ms. Jensen commented that commodity ETF's would not fall under a manager, it would be up to the Board. INVESTMENT CONSULTANT REPORT Thistle Asset Consulting — Presented by Brendon Vavrica Mr. Vavrica reviewed the revisions that were made to the IPG. He increased the International allocation to 25% and added the necessary language in regarding the scrutinized companies. He commented that this fund does not have any investments with any of the companies on the scrutinized list, but this language is required by law to be added in. Mr. Vavrica explained that these changes will not become effective until the amended Ordinance is adopted. MOTION: Mr. Barone made a motion accept the amended Investment Policy Guidelines as presented by the Consultant. SECOND: Mr. Pierson seconded the motion. CARRIED: The motion carried unanimously 5 -0. Mr. Vavrica reviewed the funds performance for the quarter ending September 30, 2009. He commented that this fund had a wonderful quarter seeing that all trailing indices are still negative. He reviewed the compliance checklist and stated that they are inline with their policy, except they are trailing their 3 year return for the total Minutes 10 -29 -09 - Palm Beach Gardens Police.do, Page 2 of 5 fund. At the end of the quarter they had 60% in equities, 34% in fixed income and 6% in cash. The total fund was behind the index for the quarter at 11.76% versus 12.31 %, the total equities were ahead at 18.26% versus 17.10% and the total fixed income was also slightly ahead at 3.75% versus 3.74 %. Mr. Vavrica briefly reviewed each manager's return for the quarter and commented that the fixed income side is doing very well and that most of Rhumblines portfolios were beating the indexes. Overall Mr. Vavrica stated that this fund is doing very well and they will be able to do a lot more in regards to investing in International once they expand the IPG. Mr. Spencer wanted to also recognize the strategies that they have done in the past that has brought them to the point, even when going through such down markets. Mr. Vavrica concluded by stating he has no other recommendations at this time. ADMINISTRATOR REPORT Resource Centers — Presented by Audrey Ross Ms. Ross explained that she wanted the Board to consider expanding their DROP distribution open enrollment periods. Currently members are allowed to take distributions from their DROP account twice a year; April and October. Ms. Ross would like the Board to also consider allowing members to take a distribution from their account 30 days from when they exit the DROP as well. The Board discussed the different open enrollment periods and thought about expanding them. MOTION: Mr. Sidey made a motion to approve DROP distributions to occur quarterly on the 15th of the month (April 15, July 15, October 15 and January 15), and also 30 days from when a member exits the DROP. SECOND: Mr. Pierson seconded the motion. CARRIED: The motion carried unanimously 4 -0. Ms. Ross presented the Board with the Audit Engagement Letter from the plans auditor, Cherry, Bekaert & Holland for the preparation of the 9/30/09 financial statements. Ms. Jensen stated that she reviewed the document and has approved. MOTION: Mr. Sidey made a motion to accept and approve the audit engagement letter from Cherry, Bekaert & Holland in regards to the 9/30/09 audited financial statements. SECOND: Mr. Pierson seconded the motion. CARRIED: The motion carried unanimously 4 -0. Ms. Ross stated that it was that time of year again to renew the funds Fiduciary Liability Insurance. She commented that we have stayed with the same company and that the renewal rate for this year is $6,384.97, which is $42.23 higher then the previous year. MOTION: Mr. Sidey made a motion to accept and approve the Fiduciary Liability Insurance for the 2009 -2010 plan year at $6,384.97. SECOND: Mr. Pierson seconded the motion. CARRIED: The motion carried unanimously 4 -0. Minutes 10 -29 -09 - Palm Beach Gardens Police.doc Page 3 of 5 ATTORNEY REPORT Law Offices of Perry & Jensen - Presented by Bonni Jensen Ms. Jensen briefly reviewed the State Law Update Memo. The changes to this law will include the repeal of the requirement to report annually to the Governor, the President of the Senate and the Speaker of the White House whether a pension board has provided social security numbers to any commercial entity during the year. She commented that all the forms will be updated to exclude social security numbers. Ms. Jensen went through and reviewed all the revisions that are taking place to the Ordinance: • added the language in regarding members who leave for service will be credited with time for up to 5 years • updated the definition of a firefighter and salary • increased the Trustees terms to 4 years • added the language in to be able to invest in anything written in the IPG • removed the language that was specific about investments • added language in about the scrutinized companies • added language in regarding the termination of the plan (incorporation from the Town of Lake Park) • added language to allow a member to change their beneficiary up to two times after retirement • added the new HEART provisions • added the new clause in that will allow a member to elect contingent beneficiaries up to two times • added language in regarding cases were benefits can be paid to anyone else but the retiree • added language regarding buybacks and that they do no count towards vesting • cleaned up the language regarding the DROP plan. MOTION: Mr. Barone made a motion to approve the Ordinance amendments as presented and to authorize Ms. Bonni Jensen to present the amendments to the City Council. SECOND: Mr. Pierson seconded the motion. CARRIED: The motion carried unanimously 4 -0. Ms. Jensen wanted to notify the Board that she received a call from Mitch Bears who is the attorney for George Mamick. He notified her that Mr. Mamick has not been paying him the money that was agreed upon. Ms. Jensen briefly reviewed the case and explained that Mr. Mamick is on a disability and he agreed to pay Mr. Bears a portion of his pension to him on a monthly basis as Mr. Bears was the attorney who represented him in his disability case. Mr. Mamick will be going to a hearing regarding this situation and Ms. Jensen just wanted the Board to be aware of what was going on even though they can not take any action. Ms. Jensen explained that the IRS has issued a new tax notice. This notice will apply to members who take distributions from their DROP account or a refund if contributions. This notice is required to use by the end of 2009. Minutes 10 -29 -09 - Palm Beach Gardens Police.doc Page 4 of 5 MINUTES MOTION: Mr. Sidey made a motion to approve the minutes from the September 3, 2009 regular meeting. SECOND: Mr. Pierson seconded the motion. CARRIED: The motion carried unanimously 4 -0. DISBURSEMENTS APPROVALS MOTION: Mr. Barone made a motion to approve the disbursements. SECOND: Mr. Sidey seconded the motion. CARRIED: The motion carried unanimously 4 -0 BENEFIT APPROVALS MOTION: Mr. Sidey made a motion to approve the benefit approvals for Shirley Feltz who is the widow of Sam Nasca. SECOND: Mr. Barone seconded the motion. CARRIED: The motion carried unanimously 4 -0 OLD BUSINESS NA OTHER BUSINESS Ms. Spencer commented that he received a letter from GRS regarding the calculations of any changed beneficiaries. Ms. Jensen explained that once the amended Ordinance is passed, then members will be allowed to change their beneficiaries and the member will have to pay for the recalculation of their benefit. Lastly the Board reviewed the 2010 meeting dates. Ms. Ross commented that the Commissions Chambers would not be available on Thursday January 28. 2010 at 9AM, so the Board moved the January meeting date up one to Wednesday January 27, 2010 at 9AM. AJOURN There being no further business, and the future meetings are scheduled for the last Thursday of the first month of the quarter. The next regular meeting was rescheduled for Wednesday January 27, 2010 at 9AM; the Trustees officially adjourned the meeting at 11:28AM. Respectfully submitted, DAVID PIERSON, Secretary Minutes 10 -29 -09 - Palm Beach Gardens Police.doc Page 5 of 5 THE L.Aw OFFICES OF FERRY &JENSEN,, LL4 ANN H. PERRY aperry@perryjensenlaw.com MEMORANDUM TO: Palm Beach Gardens Police Pension Fund Board of Trustees FROM: Bonni S. Jensen Al Fund Legal Counsel DATE: December, 2009 SUBJECT: IRS Mileage Rate for 2010 BONN[ SPATARA JENSEN bsjensen @perryjensenlaw.com This is to inform you that the Internal Revenue Service ( "IRS ") released its updated Standard Mileage Rate for 2010. The new rate is 50 -cents per mile as of January 1, 2010. As you know, from previous years, the mileage rate can fluctuate within the same year. We will do our best to keep you and the administrator informed. You can find the current rate at online at: http: / /www.irs.gov /formspubs /article. If you have any questions, please do not hesitate to contact us. BSJ /adt Enclosure Copy: Administrator H:\AII Miscellaneous\ALL BOARDS\201 0\201 0 - IRS Mileage Rate Memo.wpd 400 EXECUTIVE CENTER DRIVE, SUITE 207•:• WEST PALM BEACH, FLORIDA 33401 -2922 PH: 561.686.6550 •: Fx: 561.686.2802 13 IRS Announces 2010 Standard Mileage Rates IR- 2009 -111, Dec. 3, 2009 WASHINGTON —The Internal Revenue Service today issued the 2010 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning on Jan. 1, 2010, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: 0 50 cents per mile for business miles driven • 16.5 cents per mile driven for medical or moving purposes • 14 cents per mile driven in service of charitable organizations The new rates for business, medical and moving purposes are slightly lower than last year's. The mileage rates for 2010 reflect generally lower transportation costs compared to a year ago. The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs as determined by the same study. Independent contractor Runzheimer International conducted the study. A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for any vehicle used for hire or for more than four vehicles used simultaneously. Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates. Revenue Procedure 2009 -54 contains additional details regarding the standard mileage rates. Subscribe to IRS Newswire Page Last Reviewed or Updated: December 03, 2009 Gabriel Roeder Smith & Company One East Broward Blvd. 954.527.1616 phone GRS (onsuIrants S Actuaries Suite 505 954.525.0083 fax Ft. Lauderdale, FL 33301 -1827 www.gabrielroeder.com RPTFIVED November 16, 2009 N" 18 2009 Ms. Audrey Ross $Y: Resource Centers, LLC 4360 Northlake Blvd., Suite 206 Palm Beach Gardens, FL 33410 Re: City of Palm Beach Gardens Police Officers' Retirement Trust Fund Dear Audrey: We have reviewed the proposed ordinance amending the City of Palm Beach Gardens Police Officers' Retirement System drafted by Bonni Jensen dated October 30, 2009. This ordinance would amend the Plan as follows: • Allows members to receive credited service for an approved leave of absence as a result of occupational injury or disease and for time served in the military. • Adds a reference to USERRA for qualified military service. • Modifies the definition of police officer to comply with Florida Statutes. • Modifies the definition of salary to include amounts paid by the City as differential wages to members who are absent from employment for time served in the military. • Extends the maximum term for trustees from two to four years. • Requires identification and divestiture of scrutinized companies. • Increases the maximum allocation of the fund's assets in foreign securities from 10% to 25 %. • Allows members to become 100% vested upon termination of the Plan. • Permits retirees to change beneficiary up to two times without providing proof of good health or proving that beneficiary being removed is still alive; the cost for such a change shall be borne by the retiree. • Adds sections relating to domestic relation orders and retiree directed payments. • Modifies the prior service buyback provisions to exclude prior service purchased for vesting purposes. In our opinion, this amendment will have no actuarial impact on the Plan. Under USERRA, an employee who returns to service with the City after serving in the United States Armed Forces would have certain rights regarding the reinstatement of prior service with the City. Additionally, in the event a member dies while performing USERRA qualified military service the beneficiaries are entitled to any benefits as if the member had resumed employment and then died while employed. However, the probability that this provision will be utilized is low. Also, the changes related to procedures under a plan termination would not have an effect since it is assumed that the Plan will be ongoing when funding requirements are determined. Given the nature of these changes, we do not feel that an estimate for advanced funding is necessary. Ms. Audrey Ross November 16, 2009 Page 2 of 2 Although there is no actuarial impact, this letter should be sent to the Division of Retirement before the final public hearing on the ordinance. We welcome your questions and comments. Sincerely yours, J. Stephen Palmquist, ASA Senior Consultant and Actuary JSP /ma cc: Bonni Jensen Gabriel Roeder Smith & Company Gabriel Rocdcr Smith & ('nn)pan% One East Broward Bled. 954.527.1616 phone GRS ni,ulr.ru. .1.iu. r;c, Suite 505 954.525.0083 fax Ft. Lauderdale, Ft. 33301 -1827 www.gabrielroeder.com RECEIVED January 21, 2010 JAN 2 2 7ntn Ms. Audrey Ross Resource Centers, LLC 4360 Northlake Blvd., Suite 206 Palm Beach Gardens, FL 33410 Re: City of Palm Beach Gardens Police Officers' Retirement Trust Fund Dear Audrey: As requested, we have reviewed the language amending the Plan's definition of Police Officer to include supervisors. Please note that we have been including supervisors in determining the annual Plan costs in our previous valuations. Therefore, this change would have no financial impact. We welcome your questions and comments. Sincerely yours, L J. Stephen Palmquist, ASA Senior Consultant and Actuary JSP /ma cc: Bonni Jensen PALM BEACH GARDENS POLICE OFFICERS' PENSION FUND A Pension Trust Fund of the City of Palm Beach Gardens, Florida Financial Statements and Accompanying_;Irformation For Years Ended September 30, PALM BEACH GARDENS POLICE OFFICERS' PENSION FUND Contents Page Report of Independent Auditors ........ ............................... .......................... .............. 2-3 Management's Discussion and Analysis ....................: .......... ......................... ;:.......... 4 -9 BASIC FINANCIAL STATEMENTS Statements of Plan Net Assets ''' .......... ............................... 10 Statements of Changes in Plan Net Assets ............ 11 Notes to Financial Statements REQUIRED SUPPLEMENTARY. INFORMATION ,(UNAUDlTED) Schedule of Funding ,Progress and Schedule of Employer Contributions ....................... 18 Note to Schedule of Funding Progress and Schedule of Contributions from the Employer and Other Contributing Entities .................................................... ............................... 19-20 OTHER SUPPLEMENTARY INFORMATION Schedule of Administrative and Investment Expenses ...................... ............................... 21 OTHER REPORTS: Report on Internal Control Over Financial Reporting and on Compliance And Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ...... ............................... 22-23 Report of Independent Auditors Board of Trustees Palm Beach Gardens Police Officers' Pension Fund Palm Beach Gardens, Florida We have audited the accompanying statements of plan net:assets of the Palm Beach Gardens Police Officers' Pension Fund (the "Fund ") as of September 30, 2009 and 2008;. and the related statements of changes in plan net assets for the years then ended. These financial statements are the responsibility of the Fund's Board of Trustees and Officers. Our responsibility is to express an opinion on these financial statements based on our.audits. We conducted our audits in accordance with auditing 6t n lards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of he United States. Those standards require that we plan and perform th`eaudit,to obtain``'reasonable assurance about whether the financial statements are free;. of mate`rEal ;;;misstatement. An audit includes examining, on a test basis, ,evidence supporting. -,the amounts and disclosures in the financial statements. An audit also ,includes assessing=-the accounting principles used and significant estimates made by .;,management; as well as evaluating the overall financial statement presentation. We believe°that our audits provide a`reasonable basis for our opinion_ As discussed in Note 9, tl` . "finan cial-- taternertts.::present only the Fund and do not purport to, and do not, present fairly the financial position of the City of Palm Beach Gardens, Florida as of September 30, 2009 `'and., 2008, and the changes in its financial position for the years then ended m` conformity with accounting standards generally accepted in the United States of America'-:1.. In our opinion; the financial statements referred to above present fairly, in all material respects, information regarding the Palm Beach Gardens Police Officers' Pension Fund's plan net assets as of September'30;: 2009: and 2008, and the changes therein for the years then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated XXXX, 2090 on our consideration of the Fund's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. Management's discussion and analysis, and the required supplementary information listed on the table of contents, are not required parts of the basic financial statements but are supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures which consisted principally of inquiries of management regarding the methods of measurement and presentation of the supplementary information. However, we did not audit the information and express no opinion on it. Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The other supplementary information listed on the accompanying table of contents is presented for the purposes of additional analysis and is not a required part of the basic financial statements. The other supplementary information has been subjected to the auditing procedures applied in the audit of the basic financial: statements and, in our opinion, is fairly stated in relation to the basic financial statements taken as a whole. West Palm Beach, Florida XXXX, 2010 Management's Discussion and Analysis As management of the Palm Beach Gardens Police Officers' Pension Fund (Fund), we offer readers of the Fund's financial statements this narrative overview of the financial activities of the Fund for the years ended September 30, 2009 and 2008. This narrative is intended to supplement the Fund's financial statements, and we encourage readers to consider the information presented here in conjunction with these statements, which begin on page 10. Overview of the financial statements The following discussion and analysis are intended to serve as an introduction to the Fund's financial statements. The financial statements are: • Statements of Plan Net Assets • Statements of Changes in Plan Net Assets • Notes to the Financial Statements This report also contains the following Required Supplementary Information Loathe financial statements: • Schedule of Funding Progress • Schedule of Employer Contributions;:;;:;,;;: • Notes to the Required Supplementary46rrnation The financial statements contained in the re The Statements::: Of `Plan; Net Assets is, a point -in -time snapshot of account balances at fiscal. yea r -end rAt reports the' 1'sassets available for future payments to retirees and any current ]'abilities that are owed as of the statement date. The resulting Net Assets`.- valuer (Assets — Liabilities = Net Assets) represents the value of _assets held in'trustfor pension; benefits. The Statements�.bf:,Changes in Net Assets displays the effect of pension fund transactions that occurred dur hg ;:the fiscal year, where Additions — Deductions = Netincrease (Decrease) in Net Assets. This Net Increase (Decrease) in Net Assets reflects the change in the net asset value of the Statement of Plan Net Assets frorn the prior year to the current year. Both statements are in compliance with Governmental Accounting Standards Board (GASB) Pronouncements. The Notes to the Financial Statements are an integral part of the financial statements and provide additional information that is essential to the comprehensive understanding of the data provided in the financial statements. These notes describe the accounting and administrative policies under which the Fund operates and provide additional levels of detail for select financial statement items (See Notes to Financial Statements on pages 12 to 17 of this report.) 4 Because of the long term nature of a defined benefit pension plan, financial statements alone cannot provide sufficient information to properly reflect the ongoing plan perspective. Therefore, in addition to the financial statements explained above, this financial report includes two additional "Required Supplementary Information" schedules with historical trend information. • The Schedule of Funding Progress (page 18) includes actuarial information about the status of the plan from an ongoing, long -term perspective and the progress made in accumulating sufficient assets to pay pension benefits when due. Valuation Assets in excess of Actuarial Accrued Liabilities indicate that sufficient assets exist to fund future pension benefits of the current members and benefits recipients. • The Schedule of Contributions from the Employer and,Other`Contributing Entities (page 18) presents historical trend information regarding the value. of total annual contributions required to be paid by the City and State ani; >..the actual performance of the City and State in meeting this requirement. • The Notes to Required Supplementary 4t` informati6n... provide background information and explanatory detail to aid J6 ,und' erstanding the required supplementary schedules. Financial highlights • The net assets of the Fund exceeded its lialAt e_s at the close of the fiscal years ended September 30, 2009 and 2008, with 25:3.;and $28,344,073 in net assets held in trust forpension benefitsrespectively ` • Net assets increased by $5;688,180 or 20:.1 percent during 2009, primarily due to the current year's contributions and investment income. • Net assets decreased .by,$875,404 or 3 percent during 2008, primarily due to the 2008, yeai's':sign ficant`de l ne in investment markets. • • The Fund's funding objective is to meet long -term benefit obligations. As of October 1, 2008, tli6Aate of tine latest actuarial valuation, the funded ratio of the Fund was 53.4 percent: In general, this means that for every dollar of pension benefits due, the Funoas $0.54 of net assets available for payment. • Additions to`?:plan net assets for the year ended September 30, 2009 were $6,687,824 which includes member, employer and state contributions of $4,667,242 and" 'net income from investment activities totaling $2,020,582. Additions to plan net assets for the year ended September 30, 2008 were $236,103 which includes member, employer and state contributions of $4,523,142 and net losses from investment activities totaling $4,287,039. Deductions from plan net assets decreased from $1,111,507 during 2008 to $999,644 in 2009 or about 10.1 % percent. Most of the decrease relates to less benefit payments made in 2009 versus 2008. 19 Analysis of financial activities The Fund's funding objective is to meet long -term benefit obligations through investment income and contributions. Accordingly, the collection of employer and member contributions, and the income from investments provide the reserves needed to finance future retirement benefits. Contributions from the City of Palm Beach Gardens are made at levels determined by the Fund's actuary. Because of lower than expected investment returns and experience losses incurred in previous years, the City's contribution requirement has increased. The Fund's investment portfolio produced positive returns in 2009 compared - to 2008 Net assets held in trust for pension benefits increased by $5,688,180 in 2009, compared to a $875,404 decrease experienced in 2008. Since these net assets are used to meet ongoing benefit obligations to plan participants and their beneficiaries, 2009's positive returns have consolidated the Fund's funding status. Net Assets (Table 1) As of September Current and other assets Investments, at fair value Total assets Current liabilities Net assets 0 iI1I.=1TI -001M 2009 1 2008 $ 1,681,551 1 $ 1 32,390,151 34,079;702 30,449 $34,032,253 2007 41' $- 1,077,590 26,733,103 2E 372,444 28.371 19.4771 $5.688.1801 20.1 2008 to 2007 Increase Dec 2009 to 2008 % $ 561,751 $. _- 42,2110 `.. ;;5,657,048 2.6% 21.2 $ 5,699,258 2.078 20.1 7.3 (17,689) 19.4771 $5.688.1801 20.1 2008 to 2007 $ % 561,751 52.1% (1,454,844) (5.2) (893,093) (3.1) (17,689) (38.4) As the years roll forward and total assets and liabilities grow, investment income will continue to play an important roll in funding future retirement benefits. Therefore, investment return over the long term is critical to thefunding status of the retirement Fund. During 2009, the. Fund's investment portfolio returned gains of approximately 21.2 percent. It is important to remember that a retirement Fund's funding is based on a long time horizon, where temporary ups and downs in'the market are expected. The more critical factor is that the Fund be able to meet an expected earnings yield of 7.5 percent annual return on investments. Based on our latest actuarial valuation as of October 1, 2008, the Fund's actuarial value of liabilities exceeds its actuarial value of assets by $28.19 million, producing a funded ratio of 53.4 percent. The funded ratio is a key indication of financial strength of a retirement Fund and analyzing this percentage over time indicates whether the Fund is becoming stronger or weaker. Investment and experience losses incurred in previous years have caused a downward trend in the funded ratio. 0 Financial analysis — summary As previously noted, net assets viewed over time may serve as a useful indication of the Fund's financial position (See Table 1 above.) At the close of fiscal years 2009 and 2008, the assets of the Fund exceeded its current liabilities by $34,032,253 and $28,344,073 respectively, shown as net assets held in trust for pension benefits. The net assets are available to meet the Fund's ongoing obligation to plan participants and their beneficiaries. Net assets The Fund's net assets are established from employer and member contributions, and the accumulation of investment income, net of investment and administrative expenses and benefit payments. Additions to plan net assets As noted above, net assets needed to finance retirement benefits are accumulated through collecting employer and member contributions and; through.,, investment earnings (net of investment expenses.) The additions totaled $6,687,824 for th e year ended September 30, 2009. This was $6,451,721 more than the prior year-,;primarily due to positive investment returns. The additions totaled $236,103 for the year ended'September 30, 2008. Additions to Net Assets (Table 2) For the Years Ended September 30, 2009, 2008 and 2007 Employer contributions Member contributions State of Florida contributians.`..:.:' Net investment income (loss) Total additions.'.'*-::...:. $ 2008 1 2007 49,67k.'..` $3,143,904 $2,764,147 705 81;:::: `':: °;x.3.9,123 ::777,433 4:982. 446,115 460,438 Deductions froim;plan net assets ,103 Increase (Decrease) 2009 to 2008 2008 to 2007 $ % $ % $205,775 6.5% $379,757 13.7% (68,542) (7.3) 161,690 20.8 6,867 1.6 (20,323) (4.4) 6,307,621 147.1 (7,141,625) (250.2; 1,721 1 2732.6 The Fund was created .::ta provide retirement, survivor and disability benefits to qualified members and their beneficiaries. The cost of such programs includes recurring benefit payments, refunds of contributions to employees who terminate employment, and the cost of administering the Fund. 7 Deductions from Net Assets (Table 3) For the Years Ended September 30, 2009, 2008 and 2007 2009 2009 2008 2007 Increase ( Decrease) 2009 to 2008 2008 to 2007 $ % $ % Benefit payments Refund of contributions Administrative expenses Total deductions $895,008 - 104,636 $998,022 23,371 90,114 $650,179 5,024 70,670 ($103,014) (23,371). 14,522 (10.3)% 0.0) 16.1 $347,843 18,347 19,444 53.5% 365.2 999,644 1,111,507 725,873 1<11,863 347,843 385,634 53.1 Expenses for the year ended September 30, 2009 totaled $999;644 a decrease of 10.1 percent from 2008. The decrease was primarily due to les@,tenefiii and contribution. refunds paid to new retirees in 2009. Expenses for the year ende&September 30, 2008 total, * &$.1,1111,507 an increase of 53.1 percent from 2007. The increase '�-..was primaHly due to benefits. Oaid to new retirees in 2007. Further analysis of benefit payments]v�'.p', y'd; *'d Table 4 below. -1— kqe In Benefit Payments (Table 4) For the Year Ended September 30. 2009. 2008 The dedUctions of plan n `.':I:*-*assets;" f$999,644 and additions to plan net assets of $6,687,824 resulted -'I* :...an overall increase of $5,66:6080 in net assets held in trust for pension benefits for the year ended h'ded September'-.'.3,0 2009. The deductions of plan net assets of $1,111,507 and additions to `plan assets; of $236,103 resulted in an overall decrease of $875,404 in net assets held in trust for pensio 1, h"benefits for the year ended September 30, 2008. Fiduciary responsi*6111 - Met* The Board of Trustees is the fiduciary of the pension trust fund. Fiduciaries are charged with the responsibility of assuring that the assets of the Fund are used exclusively for the benefit of plan participants and their beneficiaries and defraying reasonable expenses of administering the Fund. N 2009 200 ...... Increase Decrease ) 2009 to 2008 2008 to 2007 Normal retirement payments Disability pension payments?...-' DROP account withdrawals Total benefit paym46iii<.*...-,..--,'.;-...,-... 8 .. .. ....... 306,599'; 6,3011,!::.L,, 447,389 ." 335,641 215,043 313,43B.:.. 336,741 124,770 (29,042) (198,742) 27.9 (8.7) (92A) 133,900 (1,100) 215,04433 42.7 (0.3) NIA 895;008 650,179 (103,014) (10.3) 347,843 53.5 The dedUctions of plan n `.':I:*-*assets;" f$999,644 and additions to plan net assets of $6,687,824 resulted -'I* :...an overall increase of $5,66:6080 in net assets held in trust for pension benefits for the year ended h'ded September'-.'.3,0 2009. The deductions of plan net assets of $1,111,507 and additions to `plan assets; of $236,103 resulted in an overall decrease of $875,404 in net assets held in trust for pensio 1, h"benefits for the year ended September 30, 2008. Fiduciary responsi*6111 - Met* The Board of Trustees is the fiduciary of the pension trust fund. Fiduciaries are charged with the responsibility of assuring that the assets of the Fund are used exclusively for the benefit of plan participants and their beneficiaries and defraying reasonable expenses of administering the Fund. N Requests for information This financial report is designed to provide the Board of Trustees, our membership, taxpayers and investment managers with an overview of the Fund's finances and accountability for the money received. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to: BASIC Palm Beach Gardens Police Officers' Pension Fund IBIZI-112 Assets Cash and cash equivalents Receivables: Prepaid others Interest and dividends Police officers City of Palm Beach Gardens Total receivables Investments, at fair value U.S. government obligations Mortgage backed securities Corporate obligations Equity securities Equity funds International funds Money market funds Total investments Total assets Liabilities Accounts payable and accrued expenses Total liabilities Net assets held in trust for pension benefits Statements of Plan Net Assets September 30, 2009 2008 $ 122,288 $ 89,945 62,764 122,577 926,940 446,982 1,496,499 2,962,187 2,002,166 5,963,735 4,667,766 12,364,077 2,483,622 1,946,598 32, 390,151 69,720 164,043 89,542 1,226,091 1,479,676 3,250,638 2,457,432 4,219,199 2,862,088 9,248,910 2,427,735 2,267,101 26, 733,103 34,071,702 28,372,444 39,449 28,371 39,449 28,371 $ 34,032,253 $ 28,344,073 See accompanying notes to financial statements 10 DRAFT Palm Beach Gardens Police Officers' Pension Fund Statements of Changes in Plan Net Assets Year Ended September 2009 2008 Additions Contributions City of Palm Beach Gardens $ 3,349,679 $ 3,143,904 State of Florida 446,982 440,115 Police Officers 870,581 939,123 Total contributions 4,667,242 4,523,142 Investment income (loss) Net appreciation (depreciation) in fair value of investments 1,610,712 (4,830,511) Interests and dividends 525,578 641,071 Administration expenses 2,136,290 (4,189,440) Less investment expenses 115,708 97,599 Net investment income (loss) 2,020,582 (4,287,039) Total additions 6,687,824 236,103 Deductions Participant benefit payments 895,008 998,022 Refund of participant contributions - 23,371 Administration expenses 104,636 90,114 Total deductions 999,644 1,111,507 Net increase (decrease) 5,688,180 (875,404) Net assets held in trust for pension benefits Beginning of year 28,344,073 29,219,477 End of year $ 34,032,253 $ 28,344,073 See accompanying notes to financial statements 11 Palm Beach Gardens Police Officers' Pension Fund Notes to Financial Statements Years Ended September 30, 2009 and 2008 Note 1 - Summary of significant accounting policies Reporting entity - The Palm Beach Gardens Police Officers' Pension Fund (Fund) was established to account for the financial activity of the City of Palm Beach Gardens Police Pension Fund. The Fund is managed by a five member Board of Trustees comprised of two members appointed by the Council of the City of Palm Beach Gardens, Florida (City), two members elected by /from the plan membership and one member elected by the other four members. The Fund is reported in the fiduciary funds (pension trust) in the City's basic financial statements. Basis of accounting - The Fund's financial statements are prepared; using the accrual basis of accounting. Contributions from the Fund's members are recognized',-61s revenue in the period in which the contributions are due. Contributions from the City of Palm. ..Beach Gardens, as calculated by the Fund's actuary, are recognized as revenue when due and when the City has made a formal commitment to provide the contributions. Expenses are`:; recognized in the accounting period incurred, if measurable. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. Method used to value investments - Investments are report mutual funds are reported at cost which approximates fair '4 or international exchanges are valued at`the ast reported sal value of the Fund's participation in pooled equity trust funds is value of the Fund's interest in the trust, ;plus `acfual;;contrib income, less actual distributions and allocated administrative e are used to value investments, in the trust funds..,..Net apprecia investments includes the difference between cost and fair valu the net realized gains an losses <forsecurities which are sold. recognized on the accrual basis ;,:when earned. Purchases recorded on a trade date basis. ed at fair value. Money market ue. Securities traded on national es.price or exchange rates. The based on the beginning of year utions and allocated investment xpenses. Quoted market prices Lion (depreciation) in fair value of e of investments held as well as Interest and dividend income are and sales of investments are Use of estimatea;:= The preparation of 'financial statements in conformity with accounting principles generally accepted in the United States of America requires the plan administrator to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly; actual results may differ from those estimates. Note 2 - Plan description and'contribution information Plan description The following brief description of the Fund, is provided for general information purposes only. Participants should refer to City ordinances for more complete information. The City of Palm Beach Gardens, Florida adopted this single employer defined benefit pension plan. The Fund is governed by Florida Statutes Chapter 185, as revised by ordinances passed by the Palm Beach Gardens City Council. All full time police officers are covered under the plan. iVA Palm Beach Gardens Police Officers' Pension Fund Notes to Financial Statements Years Ended September 30, 2009 and 2008 Note 2 - Plan description and contribution information (continued) Plan description (continued) The Plan provides retirement, death and disability benefits for its members. Benefit provisions are established and may be amended by the City of Palm Beach Gardens, in conjunction with the Palm Beach County Police Benevolent Association. A member may retire with normal benefits after the earlier of age 52 with 10 years of service, or 20 years of service regardless of age. Reduced early retirement benefits are available once a member reaches age 50 and accumulates 10 years of credited service. Normal retirement!;; enefits are 3.50% of the member's average final compensation times his or her credited <service years up to a maximum of 100% of average final compensation plus a monthly supplemental'::benefit of $12.50 per year of service. Early retirement benefits are the same as normal . retireme. benefits, reduced by 3.0% for each year by which early retirement precedes the normal retirement date. Average final compensation for purposes of calculating benefits is th, e average compensation over the last five years of service including lump sum payments of unused leave. Eligibility for disability benefits begins from the member_.date`of`hire, if the disability is service connected, or after 10 years of service if non-service 'connected. Service - incurred disability benefits are 60% of the member's current compensation;` ::and not less than the accrued pension. Non - service incurred disability benefits are 2.56/ of the member's average final compensation times his or her credited serviceyears, but not less than 25% of salary and not less than the accrued pension benefit, whichever is greater. Pre - retirement death benefits for service related deaths are 'paid to the member's widow for life. Benefits are calculated at 50% of the member`s:" inal average salary, with a minimum equal to the accrued pension (with no early retirement reduction). Pre - retirement death benef+ts.for non- service related deaths are paid to the member's widow for life. For members with less than 6`years of contributing service at the date of death, the benefit is the return of the, member's'contributioris witFout interest. For members with 5 years or more of contributing serviceAt °the date of death, the benefit is equal to that payable at early or normal retirement age. If the member is eligible for normal retirement, the benefit is equal to his or her accrued benefit, and is payat:l:e for life Termination benefits for unvested members are the return of the member's contributions. For members who are vested when they terminate, their vested accrued benefit is payable at the early or normal retirement date. Membership in the Plan consisted of the following at October 1, 2008, the date of the latest actuarial valuation: Retirees and beneficiaries receiving benefits 30 Terminated employees entitled to benefits but not yet receiving them 0 Active members 106 Total 136 13 Palm Beach Gardens Police Officers' Pension Fund Notes to Financial Statements Years Ended September 30, 2009 and 2008 Note 2 - Plan description and contribution information (continued) Contributions Contribution requirements are established and may be amended by the City of Palm Beach Gardens in conjunction with the Palm Beach County Police Benevolent Association. Contribution requirements are based on the benefit structure established by the City. Members are required to contribute 8.6% of their covered salary. Pursuant to Chapter 185 of Florida Statutes, a premium tax on certain casualty insurance contracts written "on_Palm Beach Gardens properties is collected by the state and remitted to the Fund for the' state's annual contribution amount. The Fund is required to contribute the remaining amounts, necessary to finance the benefits through periodic contributions at actuarially determined rates Administrative costs are financed through investment earnings. A rehired member may buy back one or more years'af continuous past service by paying into the Fund the amount of contributions the employee would otherwise have paidfor such service, plus the investment earnings that would have been earned had such funds been mv6sted by the Fund during that time. Note 3 - Deposits and investments Deposits Custodial credit risk - Florida Statutes require the Fund to::malintain its deposits with financial institutions in a qualified public depository, `as .determined by the Treasurer of the State of Florida. The Fund's accounts maintained in qualified public' depositories are covered by federal depository insurance for an amount equal to theaggregate of each participant's ascertainable, non- contingent interest in the Fund (up to $100000 per participant). Amounts in excess of federal depository insurance are; 6ecured by the; Public Depository Trust Fund (Trust Fund) maintained by the Treasurer: Ttfe .Tru`s.,ts Fund .is' a multiple financial institution pool with the ability to assess lts..member financial Institutlars for collateral shortfalls if a member fails. Investments - Invest ments` ^atfiscal'V rend consist of the following at September 30, 2009: Note 3 - Deposits and investments (continued) 14 Credit rating Investment maturit in ears Investment types;::, (Moody's) Fair Value Less Than 1 1 -5 6 -10 More Than 10 Money market funds AAA.,`,.'.'- $ 1,946,598 $1,946,598 $ - $ - $ - Governmental securities AAA*`:` 2,962,187 - Mortgage back notes AAA 2,002,166 - - $430,711 $1,571,455 Corporate obligations AAA .... A 5,963,735 - $3,239,024 $1,415,626 $1,309,085 12,874,686 Subtotal International funds N/R 2,483,622 - - - - Equity funds and securities Total investments N/R 17,031 843 $32,390,151 ? r y ?_: 4., ,. a?'t `. r y "K. 4 i t S`'l v E r <Y ✓ y... _. �1 ; Note 3 - Deposits and investments (continued) 14 Palm Beach Gardens Police Officers' Pension Fund Notes to Financial Statements Years Ended September 30, 2009 and 2008 Interest rate risk - Although the Fund's investment policy does not provide limitations as to maturities, the Fund minimizes risk of fair value losses in its fixed income portfolio due to rising interest rates by structuring its investment portfolio so that securities mature to meet ongoing cash requirements, thereby avoiding the need to sell securities on the open market prior to maturity; and by investing operating funds primarily in shorter -term securities or by cash flow projections. Credit Risk: Florida Statutes and the Fund's investment policy limit investments to: • Time, savings and money market deposit accounts of'a national bank, a state bank or a savings and loan association insured 'by the_,: Federal Deposit Insurance Corporation; • Obligations issued by the United States Government or m ,obligations guaranteed as to principal and interest by the United States Government • Stocks, bonds or other evidences of indebtedness issued or guaranteed by a corporation organized under the laws of the United States, any state or organized territory of the United States, or the District of Columbia; • Commingled stock, bond or money market funds; and • Bonds issued by the State of • Equity investments must be traded on, one or more of the recognized national exchanges and meet `certain rating criteria. Investments in fixed income securities are `limited to `issuers whose". obligations are rated at the time of purchase at one `of three.,highest classifications established by at least two nationally.recognize, statistical dating organizations (NRSROs). Custodial, credit risk: For'an investment, custodial credit risk is the risk that, in the event of the failure.ofthe counterparty, the Fund will not be able to recover the value of its investments or collateral securities that are; in the possession of an outside party. The Fund's policy is to maintain its security investments in custodial accounts that identify securities held in the name of the Fund by, registering securities in the name of the Fund, or in street name or nominee name as the Fund`s agent. Concentration of credit risk: The Fund's investment policy limits investments in the stock of any one issuing company to five percent (5 %) of the Fund's assets, and to five percent (5 %) of the outstanding capital stock of any issuing company. As of September 30, 2009, none of the Fund's investments (other than those in mutual funds, external investment pools, and other pooled investments) exceeded five percent (5 %) of plan net assets. Note 4 — Funding status and funding progress 15 Palm Beach Gardens Police Officers' Pension Fund Notes to Financial Statements Years Ended September 30, 2009 and 2008 The Plan provides retirement, death and disability benefits for its members. Benefit provisions are established and may be amended by the City of Palm Beach Gardens, in conjunction with the Palm Beach County Police Benevolent Association. The funded status of the Fund as of October 1, 2008, the most recent actuarial valuation date, was as follows: The schedule of funding progress, presented as required supplemental information (RSI) following the notes to the financial statements, present multi -year trend information about whether the actuarial values of plan assets;are increasing or decreasing over time relative to the AALs for benefits. Additional information as of latest actuarial valuation follows: Valuation date October 1, 2008 Actuarial cost method :: Entry Age Normal Amortization methgd Level percent, closed Remaining:.amortizatiQ.n period >. 28 years Actuarial assumptions: Investment rate of return Projected salary increases* *Includes inflation at Cost of living adjustments Recognizes 20% of difference between market value of assets and expected actuarial asset value 7.5% 7.5% 3.0% Not applicable 16 Actuarial Unfunded Accrued AAL as a Liability Active Percentage of Actuarial (AAL) = :;;:Member Active Value of Frozen Entry- Unfunded Funded Ratio Covered Member Assets Age AAL (a)/(b) Payroll Covered (a) (b) (b) — (a) (c) Payroll b -a !c $32,261,274 $60,450,441 $28,189,167 53.4% $9,842,874 1 286.4% The schedule of funding progress, presented as required supplemental information (RSI) following the notes to the financial statements, present multi -year trend information about whether the actuarial values of plan assets;are increasing or decreasing over time relative to the AALs for benefits. Additional information as of latest actuarial valuation follows: Valuation date October 1, 2008 Actuarial cost method :: Entry Age Normal Amortization methgd Level percent, closed Remaining:.amortizatiQ.n period >. 28 years Actuarial assumptions: Investment rate of return Projected salary increases* *Includes inflation at Cost of living adjustments Recognizes 20% of difference between market value of assets and expected actuarial asset value 7.5% 7.5% 3.0% Not applicable 16 Palm Beach Gardens Police Officers' Pension Fund Notes to Financial Statements Years Ended September 30, 2009 and 2008 Note 5 - Income taxes The Fund's tax counsel believes that the Fund is designed and is currently being operated in compliance with applicable requirements of the Internal Revenue Code and that, therefore, the Fund continues to qualify under Section 401 (a) as a tax - exempt as of September 30, 2009. Therefore, no provision for income taxes is included in the Fund's financial statements. 17 REQUIRED SUPP MATION Palm Beach Gardens Police Officers' Pension Fund Schedule of Funding Progress (Unaudited) Schedule of Employer Contributions (Unaudi #ed) Fiscal ::Annual Actuarial YearEnded Required Percentage September 30 Contributions Contributed Accrued ;, ,:;,.$1,475,340 100.0% 2005 UAAL As 100.0 Actuarial Liability Unfunded 2007:: 3,176, 791 Percentage Actuarial Value (AAL) AAL Funded Covered of Covered Valuation of Assets Entry Age (UAAL) Ratio Payroll Payroll Date (a) (b) (b - a) (a/b) (c)--- ((b -a) /c) 10/1/03 $14,231,515 $22,196,413 $7,964,898 64.1 %;.. $5,989,146 133.0% 10/1/04 16,405,794 24,962,551 8,556,757 657 6,755,078 126.7 10/1/05 18,950,104 35,004,203 16,054,099 ;:'.54;1 7,332,448 218.9 10/1 /06 22,740,838 46,503,218 23,762,380 c 489:> 8,322,332 285.5 10/1107 27,799,386 52,230,511 24,431,125 "'', 53.2 < >..:. 8,915,563 274.0 10/1/08 32,261,274 60,450,441 28,189,1:67.., °': 53.4 ;.;9,842,874 286.4 Schedule of Employer Contributions (Unaudi #ed) Fiscal ::Annual YearEnded Required Percentage September 30 Contributions Contributed ..,2004 ::; ; , ;, ,:;,.$1,475,340 100.0% 2005 1,704,041 100.0 2006: 1,931,054 109.2 2007:: 3,176, 791 100.0 2008:1 3,556,548 100.8 2009 ` 3,762,323 100.9 Note: Annual required contributions reported above include contributions from both the City of Palm Beach Gardens and the State of Florida. W-1 Palm Beach Gardens Police Officers' Pension Fund Note to the Schedule of Funding Progress and Schedule of Contributions from the Employer and Other Contributing Entities Note 1 — Required Information The information presented in the required supplementary schedules was determined as part of the actuarial valuations at the dates indicated. Additional information as of the latest actuarial valuation follows: Valuation date Actuarial cost method Amortization method Remaining amortization period Asset valuation method Actuarial assumptions: 28 years" Recognizes 29,-F &, difference between market value of assets and expected actuarial asset value Note 2 - Significant.factors' 00 " ting tr'ends;in actuarial information 2009 Changes in plan' provisions and actuarial methods since prior valuations • None 2008 Changes in plan provisions and actuarial methods since prior valuations • None 2007 Changes in plat. provisions and actuarial methods since prior valuations • None 2006 Changes in plan provisions and actuarial methods since prior valuations • Amending the benefit for normal retirement to be changed to 3.5% of the member's average final compensation times his or her credited service years up to a maximum of 100% of average final compensation plus a monthly supplemental benefit in the amount of $12.50 per year of service. Palm Beach Gardens Police Officers' Pension Fund Note to the Schedule of Funding Progress and Schedule of Contributions from the Employer and Other Contributing Entities Significant factors affecting trends in actuarial information (continued) 2005 Changes in plan provisions and actuarial methods since prior valuations • The salary scale was changed from 6% per year to 9% per year, with a 14% salary increase in service year ten. "ZI Palm Beach Gardens Police Officers' Pension Fund Schedule of Administartive and Investment Expenses Year Ended September 30, 21 2009 2008 Administrative Expenses Accounting services $ 13,000 $ 11,700 Printing /Stationary - - Professional fees actuarial services 36,469 30,874 Professional fees legal services 15,420 7,984 Professional fees administrative services 29,660 27,680 Fiduciary liability insurance 5,286 6,366 Fidelity EE Bond Insurance 133 - Annual membership fees 600 500 Trustee expenses 1,498 1,807 Computer services 236 3,203 IRS determination letter fees 1,000 - Misceilaneous expenses 189 - Bank charges 1,145 - Total administrative expenses $ 104,636 $ 90,114 Investment Expenses ]CC & Rhumbline investment management fees $ 88,984 75,843 Custodial fees 11,642 8,818 Performance monitor - Thistle Asset Consulting 15,082 12,938 Totall investment expenses $ 115,708 $ 97,599 21 Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards Board of Trustees Palm Beach Gardens Police Officers' Pension Fund Palm Beach Gardens, Florida We have audited the financial statements of Palm Beach Gardens Police" `Off..icers' Pension Fund (Fund) as of and for the year ended September, 30, 2009, and have issued' our report thereon, dated XXXX, 2010. We conducted our audi><.in accordance with auditing standards generally accepted in the United States of America and"" the standards applicable to the financial audits in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control Over Financial Reporting In planning and performing our audit, we considered the System's internal control over financial reporting as a basis for designing our auditirig'procedures''for the purpose of expressing an opinion on the financiAFstatern.e but not for the purpose of expressing an opinion on the ki effectiveness of the* d's internal control ovee fnancial reporting. Accordingly, we do not express an opinion on the?effectiveness of the Fund's' internal control over financial reporting. A control defieiency exis t s when the''desigri or operation of a control does not allow management or employees, to the: normal course of performing their assigned functions, to prevent :or detect misstatements `on a.:time Iy basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the Fund's ability to initiate, authorize, record, process, or report financial information in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement o 4he Fund's financial statements that is more than inconsequential will not be prevented or detected.. by the Fund's internal control. A material weakness is, significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the Fund's internal control. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. 22 Compliance and Other Matters As part of obtaining reasonable assurance about whether the Fund's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion_ The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. West Paim Beach, Florida XXXXI20 fl 23 PALM BEACH GARDENS POLICE PENSION FUND I Benefit Approvals I Meeting of January 27, 2010 APPLICATION FOR DISTRIBUTION OF DROP ACCOUNT (30 DAYS FROM RETIRMENT) RONALD COUNCIL DATE OF RETIREMENT DATE OF BIRTH AMOUNT REQUESTED TYPE OF DISTRIBUTION TAX WITHHOLDING TOTAL NET DISTRIBUTION 09/17/2009 03/09/1956 $25,000.00 PARTIAL LUMP SUM $ 5,000.00 $20,000.00 APPROVED: , CHAIRMAN ,SECRETARY DATE PALM BEACH GARDENS POLICE PENSION FUND STATEMENT OF POLICY REGARDING DROP DISTRIBUTIONS WHEREAS, the Palm Beach Gardens Police Pension Plan ( "Plan ") provides for Deferred Retirement Option Plan ( "DROP ") benefits; WHEREAS, the Board of Trustees of the Plan ( "Trustees ") desire to adopt a Statement of Policy regarding the distributions of these benefits; NOW, THEREFORE, it is hereby resolved that the following Statement of Policy Regarding DROP and Share Account Distributions is hereby adopted. I. DISTRIBUTION METHODS A. Lump sum - If the lump sum method of distribution is selected then the entire account balance will be paid. The full amount, or a portion thereof, will be paid to the Retiree or can be rolled over to another qualified plan, at the discretion of the Retiree. The payout /rollover can be made in any amount of the Retiree's choosing but the fuff amount must be taken from the plan. Any amounts paid directly to a Retiree will have a 20% withholding deduction and may be subject to other taxes and /or penalties. B. Annuity - If a Retiree chooses monthly installments, then the account balance will be paid out on a monthly basis. The following rules will apply to this method of distribution: 1. For retirees who are age under 50 upon separation from service - The Retiree may choose any amount provided the amount of the payment Page 1 of 5 is within the minimum and maximum as determined in accordance with the attached annuity tables. The amount chosen cannot be modified before the Retiree attains age 591/2 or within 5 years from the date of the first payment, whichever occurs last. If the amount of the payment is above the maximum, the Retiree can be subject to additional taxes and/or penalties. At age 70'/2, the monthly installment shall be paid at a rate which meets the minimum distribution rules of Internal Revenue Code §401(x)(9). 2. For Retirees who are age 50 and older upon separation from service when the monthly installments begin - The monthly amounts may be determined by the Retiree according to his or her need. The amount of the monthly benefit or the method of payment (for example, from monthly to lump sum) can be changed on a quarterly an annual basis and will be made on the 15`h of the month (February 15 May 15, August 15, and November 15) and 30 days from the date a member exits the DROP. Members must provide at least 30 days notice . The amount of the monthly payment can be reduced to zero unless the payee has reached age 1 i ■-OZ22 AWMEa��a. uiii s vuaia:�aia�ii►C�iau ���a�ai • and February eaeh year-. Additionally, during these payment periods open enrollment pefied. only, a member may request a partial lump sum withdrawal and still continue to receive the monthly payments. Page 2 of 5 3. A 20% withholding tax applies to all payments paid directly to a Retiree. 4. If there are less than 15 times the monthly installment at the start of the fiscal year, then the remaining balance will be paid in a lump sum. 5. Between open enrollment periods, there will be no changes in the method or amount of the payment unless a Retiree has a hardship. Hardship withdrawals are permitted if both a and b below are met. a. The Retiree has an immediate and heavy financial need - A need may be immediate and heavy even though it was foreseeable or voluntarily incurred. A need is deemed to be immediate and heavy if it is: 1) medical expenses previously incurred by the Retiree, the Retiree's spouse or dependents, or amounts necessary for these persons to obtain medical care; 2) costs related to the Retiree's purchase of a principal residence (not including mortgage payments); 3) payment of tuition and related educational fees and room and board expenses for the next 12 months of post- secondary education for the Retiree, the Retiree's spouse, children or dependents; or 4) payments necessary to prevent the eviction of the employee from the principal residence or to avoid foreclosure on the mortgage on that residence. Page 3 of 5 b. the distribution is necessary to satisfy the Retiree's financial need - A distribution generally may be treated as necessary to satisfy a financial need if the need cannot be relieved: 1) through reimbursement or compensation by insurance or otherwise; 2) by reasonable liquidation of the participants's assets (to the extent that such liquidation would not itself cause an immediate and heavy financial need); 3) by other distributions or nontaxable (at the time of the loan) loans from the plans of the employer or by borrowing from commercial sources at reasonable terms; or 4) by cessation of elective contributions to other plans. II. GENERAL CONSIDERATIONS A. A Retiree may defer election of payment until age 70'/2. Any account balances participate in earnings according to the Retiree's election of earnings method. B. Final distributions from the DROP account will be subject to a 10% hold back to account for the crediting of earnings /losses and administrative fees. Final disbursements of DROP accounts will be made once the DROP statements for the prior quarter have been distributed. Page 4 of 5 C. Participants and Retirees may designate beneficiaries to receive any balances in the DROP accounts upon their death. In the absence of such designation, the benefit will be paid to the Retiree's estate. D. Lump sum payments in excess of $50,000.00 will be paid as soon as administratively possible but no later than 60 days after the date of approval by the Board of Trustees. E. No amount or number of payments from the DROP accounts are guaranteed No member is entitled to payments greater than the balance in the account, as maybe reduced by losses and /or expenses. IN WITNESS WHEREOF the Board of Trustees of the Palm Beach Gardens Police Pension Fund has adopted this STATEMENT OF POLICY REGARDING DROP AND SHARE ACCOUNT DISTRIBUTIONS this day of TRUSTEES Witnessed by: 2009 H',PBG 0003TOLIGYTROP & Share PMTMETH.wpd BSJIka - Decembe, 15 2008 January 22. 2009 rebruary a 2009 February 12, 2009 February 13. 2009 January 22, 2010 Page 5 of 5 Kesource ,enters Accounts Payable Check Register FOR: PALM BEACH GARDENS POLICE Check Numberl Date Payee and Description Amount 2216 November 2, 2009 Pension Resource Center $2,288.00 Administration Fees - November 09 2217 November 4, 2009 Perry & Jensen LLC $230.50 Legal Services Rendered Thru 10/15/09 2218 November 4, 2009 United Members Insurance Inc $6,384.97 Fiduciary Liability Renewal 09 -10 2219 December 1, 2009 City of Palm Beach Gardens $4,227.06 Retiree Insurance 2220 December 1. 2009 Pension Resource Center $2,275.00 Administration Fees- December 09 2221 December 2, 2009 Gabriel Roeder Smith & Company $3,498.00 Consulting Services thru 10/31/09 2222 December 2, 2009 Cherry, Bekaert & Holland $7,500.00 Progress Billing Audit year ended 09/30/09 2223 December 2, 2009 FPPTA $600.00 Annual Membership -2010 2224 December 2, 2009 Perry & Jensen LLC $2,293.25 Legal Services thru 11/15/09 2225 January 1, 2010 City of Palm Beach Gardens $4,943.89 Retiree Insurance 2226 January 4, 2010 Pension Resource Centers $2,285.62 Administration Fees- January 10 2227 January 6, 2010 Cherry, Bekaert & Holland $4,000.00 Progress Billing Audit year ended 09/30/09 2228 January 6. 2010 Perry & Jensen LLC $1,326.75 Legal Services thru 12/15/09 2229 January 6, 2010 Gabriel Roeder Smith & Company $2,485.00 Consulting Services thru 11/30/09 Total $44,338.04 Chairman Secretary Date VENDOR: 000000000001 DATE VENDOR NO ii /no nnnnnnnnnnn, INVOICE NUMBER INVOICE DATE INVOICE AMOUNT AMOUNT PAID DISC. TAKEN NET AMOUNT 090434 I I i i I I 11/02/09 2,288.00 2,288.00 Check .00 Total 2,288.00 2,288.00 THE FACE OF THIS DOCUMENT HAS A COLORED BACKGROUND ON WHITE PAPER . THE BACK CONTAINS AN ARTIFICIAL WATERMARK . HOLD AT AN ANGLE TO VIEW Palm Beach Gardens Police 00002216 4360 Northlake Blvd Ste 206 Palm Beach Gardens, A 33410 63 8376/2670 BANK ATLANTIC CHECK NO I CHECK DATE VENDOR NO. 2216 11/02/09 1000000000001 PAY AMOUNT TWO THOUSAND TWO HUNDRED EIGHTY -EIGHT AND 00 /100 82.288.00 TO THE PENSION RESOURCE CENTER ORDER 4360 NORTHLAKE BLVD STE 206 OF PALM BEACH GARDENS FL 33410 VOID AFTER 180 DAYS 009CE14 CONTAINS YK.ROP lftI 1180000 2 2 160 1: 26 708 3 76 31:006336SC30Piii Palm Beach Gardens Police VENDOR: 000000000001 00002216 DATE VENDOR NO 11 /na nnnnnnnnnnni INVOICE NUMBER INVOICE DATE INVOICE AMOUNT AMOUNT PAID DISC. TAKEN NET AMOUNT X090434 I i 11/02/09 2,288.00 2,288.00 Check .00 Total 2,288.00 2,288.00 Invoice Resource Centers, LLC 4360 Northlake Blvd Ste 206 Date Invoice Palm Beach Gardens, FL 33410 11/2/2009 i, B090434 Bill To I Tax ID Numbers —1';—'1'M`,iie;ch—Gardens Police Pension Fund f Resource Centers. LLC 87-0800468 Pension Resource Center. LLC 36-4504183 Financial Resource Center. LLC 87-0800465 L Description Qty Rate i Amount Palm Beach Gardens Police Pension Fund - Adinin Fee for the month of November 2.275.00 2.275.00 Death Search (PBI) 26 0.50 13.00 Total Amount Due' $2,288.00 Mail Payments to: Resource Centers, LLC at Palm Beach Gardens Address OR ACH Payment to: First Southern Bank Financial Resource Center ABA #:067012895 Account #: 8061096806 First Southern Bank Pension Resource Center ABA #: 067012895 Account #: 8061093306 First Southern Bank Resource Centers. LLC ABA # 067012895 Account # 8063659206 If you have any questions concerning this invoice, please contact Denise McNeill at Resource Centers. LLC Phone 561-459-2966 or Email - Denise(a�resourcecenters.com VENDOR: 000000000010 4 ,nnnnnnnnnnin INVOICE NUMBER INVOICE DATE INVOICE AMOUNT AMOUNT PAID DISC. TAKEN NET AMOUNT 000000000063363 I I 11/04/09 230.50 230.50 Check .00 Total 230.50 230.50 THE FACE OF THIS DOCUMENT HAS A COLORED BACKGROUND ON WHITE PAPER - THE BACK CONTAINS AN ARTIFICIAL WATERMARK - HOLD AT AN ANGLE TO VIEW Palm Beach Gardens Police 00002217 4360 Northlake Blvd Ste 206 Palm Beach Gardens, FI 33410 63- 8376'2670 BANK ATLANTIC PAY TWO HUNDRED THIRTY AND 50 /100 ,,,,,,,,,,,,,,,, TO THE PERRY & JENSEN, LLC ORDER 400 EXECUTIVE CENTER DRIVE SUITE 207 OF WEST PALM BEACH FL 33401 CHECK NO CHECK DATE VENDOR NO 2217 1 11/04/09 1 000000000010 AMOUNT $230.50 VOID AFTER 180 DAYS gtlROEP CO TANS1iIC 111000022711' 1:26 708 3 7 6 31:006336560311■ Palm Beach Gardens Police VENDOR: 000000000010 00002217 DATE VENDOR NO 11/09 000000000010 INVOICE NUMBER INVOICE DATE INVOICE AMOUNT AMOUNT PAID DISC. TAKEN NET AMOUNT !000000000063363 i 11/04/0§- 1 04 09 230.50 230.50 Check .00 Total 230.50 230.50 ANN H. PERRY aperry@perryjensenlaw.com THE LAW OFFICES OF PERRY & JENSEN, LLC October 22, 2009 Via Email Palm Beach Gardens Police Pension Fund Resource Centers, LLC Attn: Scott Baur & Bonnie Lindberg & Audrey Ross 4360 Northlake Boulevard, Suite 206 Palm Beach Gardens, FL 33410 Dear Scott & Bonnie: BONNI SPATARA JENSEN bsjensen@perryiensenlaw.com Re: Legal Services Provided Invoice #63363 Enclosed please find the Firm's invoice for services rendered for the ppi�pp period that ended 10/15/2009. Your current balance due is $915.87. a 3() If you have any questions, please do not hesitate to contact me. Sincerely, Bonni S. Je sen'L BSJ /adt Enclosure Copy to: Jay Spencer, Chairman David Pierson, Secretary Via Email Only 400 EXECUTIVE CENTER DRIVE, SUITE 207:• WEST PALM BEACH, FLORIDA 33401 -2922 PH: 561.686.6550 •: Fx: 561.686.2802 THE LAW OFFICES OF PERRY & JENSEN, LLC 400 Executive Center Drive Suite 207 West Palm Beach, FL 33401 -2922 Invoice submitted to: Palm Beach Gardens Police Pension Fund Scott Baur & Bonnie Lindberg & Audrey Ross -via email c/o The Resource Centers, LLC 4360 Northlake Boulevard, Suite 206 Palm Beach Gardens FL 33410 Copy to: Chairman & Secretary October 21, 2009 In Reference To: FOR PROFESSIONAL SERVICES RENDERED AS FOLLOWS: Client / File No.: 0003 Invoice #63363 Professional Services Hrs /Rate Amount Auditor 10/15/2009 BSJ Conference call 0.10 20.00 Conference call with Rowana Flitan, Audrey Ross, Allan Owens re: Audit 200.00 /hr status Auditor SUBTOTAL: DROP 10/13/2009 BSJ Review Review email from Audrey Ross re: distributions E -mail to Audrey Ross DROP SUBTOTAL: Misc Matters 10/1/2009 BSJ Research Research changes to Public Records Law for Social Security Number reporting Misc Matters [ 0.10 20.001 0.10 20.00 200.00 /hr [ 0.10 20.001 0.10 20.00 200.00 /hr Palm Beach Gardens Police Pension Fund SUBTOTAL: Special Tax Notice 9/30/2009 BSJ Draft Draft Safe Harbor Rollover Notice re: Internal Revenue Service Notice 2009 -68 Review Internal Revenue Service Rollover Notice Special Tax Notice 10/9/2009 KA Draft Draft Special Tax Notice Special Tax Notice SUBTOTAL: For professional services rendered Additional Charges: Bill File 10115/2009 PJ Photocopies$ Copy Charges Bill File SUBTOTAL: Total additional charges Total amount of this bill Previous balance Balance due Page 2 Hrs /Rate Amount [ 0.10 20.001 0.25 50.00 200.00 /hr 1.50 112.50 75.00 /hr [ 1.75 162.50] 2.05 $222.50 Qtv /Price 32 8.00 0.25 [ 8.00] $8.00 C$230.56 $685.37 $915.87 VENDOR: 000000000249 11/09 000000000249 INVOICE NUMBER INVOICE DATE INVOICE AMOUNT AMOUNT PAID DISC. TAKEN NET AMOUNT ,000000000001129 i I I i i i I 11/04/09 6,384.97 6,384.97 Check .00 Total 6,384.97 6,384.97 THE FACE OF THIS DOCUMENT HAS A COLORED BACKGROUND ON WHITE PAPER - THE BACK CONTAINS AN ARTIFICIAL WATERMARK - HOLD AT AN ANGLE TO VIEW BANK ATLANTIC Palm Beach Gardens Police 00002218 4360 Northlake Blvd Ste 206 Palm Beach Gardens, FI 33410 63.837612670 CHECK NO CHECK DATE VENDOR N0. 2218 1 11/04/09 000000000249 PAY AMOUNT SIX THOUSAND THREE HUNDRED EIGHTY -FOUR AND 97/10 TO THE UNITED MEMBERS INSURANCE, INC. ORDER 6826 WEST LINEBAUGH AVENUE OF TAMPA FL 33624 VOID AFTER 180 DAYS 1150000 2 2 1,811' 1:26 708 3 76 31:006336S503110 Palm Beach Gardens Police VENDOR: 000000000249 00002218 DATE VENDOR NO 11/09 000000000249 INVOICE NUMBER INVOICE DATE INVOICE AMOUNT AMOUNT PAID DISC. TAKEN NET AMOUNT IC00000000001129 11 04 09 6,384.97 6,384.97 Check .00 Total 6,384.97. 6,384.97 United Members Insurance 6826 W. Linebaugh Avenue Tampa, FL 33625 Telephone: (800) 940 -5432 Bill To: The Resource Centers 4360 Northlake Blvd. Suite # 206 Palm Beach Gardens, FL 33410 Description: Fiduciary Liability Policy - Renewal Invoice Invoice INVOICE NO: 01129 REFERENCE NO: 146 DATE: 10/2912009 PAYMENT DUE DATE: 1113012009 Insured: Palm Beach Gardens Police Officers' Pension Fund 4360 Northlake Boulevard Suite 206 Palm Beach Gardens, FL 33410 Producer Policy Effective Expires Customer Service Re -company Ullico Insurance Group (Fiduciary) U F L- 0060678 12!0112009 12/01/2010 Trans Code Description Amount W Base Premium 6,199.00 P ,Florida Surcharges I 185.97 Total Due V6.384.97 Please pay by 11/30/2009 to ensure continuing coverage. Thank you for your business Please return a copy of this invoice with your payment. THANK YOU FOR YOUR BUSINESS! UNITED MEMBERS INSURANCE, INC. J.R. "JIM" SOLOMON President HERMAN "CoCo" ARANGO Consultant October 29, 2009 6826 W. Linebaugh Avenue Tampa, Florida 33625 (813) 265 -2300 - (800) 940 -5432 - (813) 265 -2323 Fax Ms. Audrey Ross, Plan Administrator Resource Centers, LLC 4360 Northlake Boulevard, Suite 206 Palm Beach Gardens, Florida 33410 Re: Palm Beach Gardens Police Officers' Pension Fund Fiduciary Liability Policy # UFL- 0060678 Carrier: Ullico Insurance Group (Hudson Insurance Company) Effective December 1, 2009 to December 1, 2010 Dear Audrey; CHARLIE HARRIS President Emeritus FL- AFL -CIO Labor Consultant Enclosed you will find a premium invoice for the above referenced policy. Per Ullico's quote, the total annual premium is $6,384.97. Please make the premium check payable to United Members Insurance. A postage -paid return envelope is also enclosed, for your convenience. As always, we at United Members appreciate your business. If you have any questions, please don't hesitate to call. Sincerely, San yser' Account Executive (ext. 8) INVOICE NUMBER INVOICE DATE INVOICE AMOUNT AMOUNT PAID DISC. TAKEN V v NET AMOUNT 005065 12 0 1 09 2,663.18 2,663.18 .00 2,663.18 005066 12/01/09 1,370.52 1,370.52 .00 1,370.52 00506% 12/01/09 90.21 90.21 .00 90,21 005060 12/01/09 95.65 95.65 .00 95,65 - - =�- 12; C1 /09 7.50 7.50 .00 7,50 Check Total i 4,227.06 Palm Beach Gardens Police 00002219 4360 Northlake Blvd Ste 206 Palm Beach Gardens, FI 33410 63.8376i2670 3ANK ATLANTIC CHECK NO. CHICK DALE VENDOR NC. 2219 112/01/0 9 000000000458 PAY i AMOUN7 FOUR THOUSAND TWO HUNDRED TWENTY -SEVEN AND 06110 TO THE CITY OF PALM BEACH GARDENS ORDER 10500 N MILITARY TRAIL OF ATTN: LAUREN FERREIRA PALM BEACH GARDENS FL 3341C VOID AFTER 180 DAYS - - -- --- - - -- --- - --- --- - - - ---- •- ----- -�------ - - -- -- eorocrccxralrrucaovawTL!+c� 116000022L911' 1: 2670$3763i:006336560311, 'alm Beach Gardens Police VENDOR: 000000000458 00002219 DATE VENDOR NO I -) /n4 nnnnnnnnnnrzc INVOICE NUMBER INVOICE DATE INVOICE AMOUNT AMOUNT PAID DISC. TAKEN NET AMOUNT 005065 12/01/09 2,663.18 2,663.18 .00 2,663.10 005066 12/01/09 1,370.52 1,370.52 .00 1,370.52 905067 12/01/09 90.21 90.21 .00 90.21 005068 jf12/01/09 95.65 95.65 .00 95.65 0506' I12,/ 01/09 7.50 x.50 .00 7.50 I I I Check Totai I 4,227.06 VENDOR: 000000000001 1 _inA nnnnnnnnnnn1 i INVOICE NUMBER INVOICE DATE INVOICE AMOUNT AMOUNT PAID DISC. TAKEN NET AMOUNT 096468 i I I i 12 7 01 09 I 2,275.00 2,275.00 Check .00 Total 2,275.001 2,275.00, i THE FACE OF THIS DOCUMENT HAS A COLORED BACKGROUND ON WHITE PAPER - THE BACK CONTAINS AN ARTIFICIAL WATERMARK - HOLD AT AN ANGLE TO VIEW Palm Beach Gardens Police 00002220 4360 Northlake Blvd Ste 206 Palm Beach Gardens, FI 33410 63.837612670 BANK ATLANTIC CHECK NO I CHECK DATE VENDOR NO. 2220 12/01/09 1000000000001 PAY AMOUNT TWO THOUSAND TWO HUNDRED SEVENTY -FIVE AND 00 /100 TO THE PENSION RESOURCE CENTER ORDER 4360 NORTHLAKE BLVD STE 206 OF PALM BEACH GARDENS FL 33410 VOID AFTER 180 DAYS Ile 0000 2 2 2011' 1: 26 708 3 76 31:006 3 36 560 311• Palm Beach Gardens Police VENDOR: 000000000001 00002220 DATE VENDOR NO 12/09 000000000001 INVOICE NUMBER INVOICE DATE INVOICE AMOUNT AMOUNT PAID DISC. TAKEN NET AMOUNT P09046 8 i I I 12/01/09 2,275.00 2,275.00 Check .00 Total 2,275.00 2,275.00! Resource Centers, LLC 4360 Northlake Blvd Ste 206 Palm Beach Gardens, FL 33410 Bill To l Palm Beach Gardens Police Pension Fund Description Palm Beach Gardens Police Pension Fund - Admin Fee for the mo Invoice Date f Invoice # j l 11/30/2009 6090468 FTax ID Numbers Resource Centers. LLC 87- 0800468 Pension Resource Center, LLC 36- 4504183 f Financial Resource Center. LLC 87- 0800465 i Mail Payments to: Resource Centers, LLC at Palm Beach Gardens Address OR ACH Payment to: First Southern Bank Financial Resource Center ABA #:067012895 Account #: 8061096806 First Southern Bank Pension Resource Center ABA #: 067012895 Account #: 8061093306 Amount 2,275.00 i I Total Amount Due $2,275.00 First Southern Bank Resource Centers, LLC ABA # 067012895 Account # 8063659206 If you have any questions concerning this invoice, please contact Denise McNeill at Resource Centers, LLC Phone 561- 459 -2966 or Email - Denise(rlresourcecenters.com VENDOR: 000000000012 J%1 I t VtNUUH NU i -) /n4 nnnnnnnnnn,,) INVOICE NUMBER INVOICE DATE INVOICE AMOUNT AMOUNT PAID DISC. TAKEN NET AMOUNT 1000000000109945_12/02/09 I I 12 02 09 3,498.00 3,498.00 Check .00 Total 3,498.00 3,498.00 i Palm Beach Gardens Police 00002221 4360 Northlake Blvd Ste 206 Palm Beach Gardens. FI 33410 638376.2670 BANK ATLANTIC CHECK NO CHECK DATE VENDOR NO 2221 12/02/09 1 000000000012 PAY AMOUNT THREE THOUSAND FOUR HUNDRED NINETY -EIGHT AND 00 /100 $3,498.00 TO THE GABRIEL ROEDER SMITH & COMPANY ORDER P.O. BOX 78000 OF DETROIT MI 48278 VOID AFTER 180 DAYS _ -__._ _. ____ __BOAOERCONTAIHSMIOROVR_?R 1120000 2 2 2 111' G 2G 708 3 7G 31:000 3 3G 560 all' Palm Beach Gardens Police VENDOR: 000000000012 00002221 DATE VENDOR NO 12 /nil nnnnnnnnnni�) INVOICE NUMBER INVOICE DATE INVOICE AMOUNT AMOUNT PAID DISC TAKEN NET AMOUNT G 00000000109945 I I I I I 12 02 09 3,498.00 3,498.00 Check .00 Total 3,498.00 3,498.00 GV Q Gabriel Roeder Smith & Company Consultants & Actuaries One East Broward Blvd. Suite 505 Ft. Lauderdale. Florida 33301 -1872 ( 954) 527-1616 BOARD OF TRUSTEES, CITY OF PALM BEACH -' GARDENS POLICE OFFICERS PENSION FUND Mr. J. Scott Baur. Administrator Resource Centers. LLC 4360 Northlake Blvd.. Suite 206 Palm Beach Gardens. FL 33410 Invoice 11/13/2009 109945 Please Remit To: Dept. # 78009 Gabriel Roeder Smith & Company PO Box 78000 Detroit. Michigan 48278 -0009 or ACH Payment to: Gabriel Roeder Smith & Company JPMorgan Chase, ABA #: 072000326 Account #: 0486723 PLEASE INDICATE THE INVOICE NUMBER ON YOUR REMITTANCE. THANK YOU. VENDOR. 000000000029 12/09 000000000029 i INVOICE NUMBER INVOICE DATE —12—TO-2-7-09 INVOICE AMOUNT AMOUNT PAID DISC, TAKEN NET AMOUNT 000000000476401 I 12 02 09 7,500.00 7,500.00 Check .00 Total 7,500.00 7,500.00 BANK ATLANTIC Palm Beach Gardens Police 00002222 4360 Northlake Blvd Ste 206 Palm Beach Gardens, Fl 33410 63.8376,2670 CHECK NO CHECK DATE I VENDORNC 2222 112/02/09 000000000029 PAY AMOUNT SEVEN THOUSAND FIVE HUNDRED AND 00 /100 :::t:1x:;AJ,x:,. $7,500.00 TO THE CHERRY, BEKAERT & HOLLAND ORDER ONE CLEARLAKE CENTER OF 250 AUSTRALIAN AVE SOUTH SUITE 1201 WEST PALM BEACH FL 33401 VOID AFTER 180 DAYS 1120000 2 2 2 211' 1:26 708 3 76 31:006336560311' Palm Beach Gardens Police VENDOR. 000000000029 00002222 OATE VENDOR NO. 12/09 000000000029 INVOICE NUMBER INVOICE DATE INVOICE AMOUNT AMOUNT PAID DISC. TAKEN NET AMOUNT 000000000476401 i i i I 12 02 09 7,500.00 7,50C.00 . 0 eck To--al 7,500.u- 7,500.0_ J CHERRY BEKAERT & HOLLAND, L.L.P. 800 N. MAGNOLIA AVENUE SUITE 1300 ORLANDO, FL 32803 -3255 (407)423 -7911 f Palm Beach Gardens Police Pension Fund C/O Pension Resource Center, Inc. 4360 Northlake Blvd., Suite 206 Palm Beach Gardens, FL 33410 Invoice No. 476401 Date 1112412009 Client No, 4253650.0 FOR PROFESSIONAL SERVICES RENDERED: Progress billing on audit of financial statements for the year ended September 30, 2009 rl V NOV f TERMS: Invoices are payable upon presentation. A service charge will be added to past due accounts equal to 1.5% per month (18% annually) on the previous month's balances less payments received during the month, with a minimum charge of $2.00 per month. VtIVUUh: UUUUUUUUUIJI') l7/na nnnnnnnnnn,� INVOICE NUMBER INVOICE DATE INVOICE AMOUNT AMOUNT PAID DISC. TAKEN NET AMOUNT 2010 MEMBERSHIP i i I I 12/02/09 600.00 600.00 Check .00 Total 600.00 600.00 Palm Beach Gardens Police 00002223 4360 Northlake Blvd Ste 206 Palm Beach Gardens, FI 33410 63- 837612670 BANK ATLANTIC PAY SIX HUNDRED AND 00 /100 I i TO THE FPPTA ORDER 2946 WELLINGTON CIRCLE EAST SUITE A OF TALLAHASEE FL 32308 CHECK NO CHECK DATE VENDOR NO. 2223 112/02/09 1000000000015 AMOUNT $600.00 VOID AFTER 180 DAYS 1110000222311' 1:26 708 3 76 31:006336560311' Palm Beach Gardens Police VENDOR: 000000000015 CONTAINS YICROPRIt! 00002223 DATE VENDOR NO 12/09 000000000015 INVOICE NUMBER INVOICE DATE INVOICE AMOUNT AMOUNT PAID DISC. TAKEN NET AMOUNT 2C1C MEMBERSHIP I i I 12/02/09 600.00 600.00 Check .00 Total 600.00 600.00 Florida Pitblic Pension Trustees AssociationV 2010 Yearly Active Membership 2010 Yearly Active Members J*-.oD _Per year payments due upon receipt Board Information Please print clearly Board Name. Co e Address: y3(nO IC)V City, State, Zip: e56 y ra ce.n te,rs 5.0 Rvd • Sui+e 2OU Contact Person: /UC ttv Vo S Page 3 For your convenience this form can be completed on our website, WWW.FPPTA.ORG 1'obCQ MCU -S' PEOW FU7d E -mail Address: /f ucfV w @ asou rCcCer ii rS - Cc Administrator: Sary QS 00fl -U& wso l E -mail Address: yqU Q's C yy Phone M imho- Cil n f ucr 360 Fax Pew 3a�8 tY1 POM ►'Vn S Total U)I 3t - q � I % �I $ %631, a1 8�j MCAYS� Aud vb� ().St with -m,e N sfi r cA• i frymn -pew Please 1dre(2 cnecKs payable to: CV1fAL V) 0-105 -e C, Florida Public Pension Trustees Association (FPPTA) We accept: Visa, MasterCard, American Express Account Number: Name on Card: Signature: Expiration Date: Send this form, front and back, to FPPTA. Membership Form and Trustee List must accompany payment. 10 In- FPPTA Thank you for your membership and your support of the FPPTA. City of Palm Beach Gardens Police Pension Fund Trustees Lt. Jay Spencer, Chairman c/o Palm Beach Gardens Police Department 10500 North Military Trail Palm Beach Gardens, FL 33410 Work Phone: 561.799.4525 Cell: 561.248.1185 Fax: 561.799.4589 Home Phone: 561.624.7928 E- mail: ,ispencer(o)pbgfl.com (Term Expires 02/07/2009) David Pierson, City Trustee 12961 North Normandy Way Palm Beach Gardens, FL 33418 Phone: 561.627.5874 E -mail: piersl(@adelphia.net (Term Expires 12/19/2008) Wayne Sidey, 5 "' Trustee c/o Palm Beach Gardens Police Department 10500 North Military Trail Palm Beach Gardens, FL 33410 E -mail: wsidev@pbgfl.com (Term Expires 11/16/2008) Patricia Snider, City Clerk City of Palm Beach Gardens 10500 North Military Trail Palm Beach Gardens, FL 33410 Phone: 561.799.4122 Fax: 561.799.4124 Email: gsnider @pbgfl.com Allan Owens, Finance Director City of Palm Beach Gardens 10500 North Military Trail Palm Beach Gardens, FL 33410 Phone: 561.799.4163 Fax: 561.799.4160 Email: aowens @pbgfl.com Jules Barone, Trustee c/o Palm Beach Gardens Police Department 10500 North Military Trail Palm Beach Gardens, FL 33410 Phone: 561.799.4545 E -mail: ibarone(a)pbgfl.cam (Term Expires 02/07/2009) Brad Seidensticker, City Trustee 11 Glencairn Road Palm Beach Gardens, FL 33418 Phone: 561.624.2077 E -mail: bradsticker@yahoo.com (Term Expires 12/19/2008) City Hall Ray Ellis, Deputy City Clerk City of Palm Beach Gardens 10500 North Military Trail Palm Beach Gardens, FL 33410 Phone: 561.799.4195 Fax: 561.799.4124 Email: rellis @pbgfl.com VENDOR: 000000000010 DATE VENDOR NO. 19 /n9 nnnnnnnnnnln INVOICE NUMBER INVOICE DATE INVOICE AMOUNT AMOUNT PAID DISC. TAKEN NET AMOUNT 1000000000063406 12/02/09 2,293.25 2,293.25 Check .00 Total 2,293.2E 2,293.2-c BANK ATLANTIC Palm Beach Gardens Police 00002224 4360 Northlake Blvd Ste 206 Palm Beach Gardens. FI 33410 63.8376/2670 CHECK NO C HECK DATE VENDOR NO 2224 1 12/02/09 000000000010 PAY AMOUNT TWO THOUSAND TWO HUNDRED NINETY -THREE AND 25/100 TO THE PERRY & JENSEN, LLC ORDER 400 EXECUTIVE CENTER DRIVE SUITE 207 OF WEST PALM BEACH FL 33401 VOID AFTER 180 DAYS 11'0000 2 2 2 411' 1:26 708 3 76 31:0063365603I's Palm Beach Gardens Police VENDOR: 000000000010 00002224 DATE VENDOR NO 12/09 000000000010 INVOICE NUMBER INVOICE DATE INVOICE AMOUNT AMOUNT PAID DISC TAKEN NET AMOUNT 000000000063406_12/02/09 I I I I I 2,293.25 2,293.25 Check .00 Total 2,293.2E 2,293.23 THE LAW OFFICES OF PERRY & JENSEN, LLC ANN H. PERRY aperry@perryjensenlaw.com November 23, 2009 Via Email Palm Beach Gardens Police Pension Fund Resource Centers, LLC Attn: Scott Baur & Bonnie Lindberg & Audrey Ross 4360 Northlake Boulevard, Suite 206 Palm Beach Gardens, FL 33410 Dear Scott & Bonnie: BONNI SPATARA JENSEN bsiensen @perryiensenlaw.com Re: Legal Services Provided Invoice #63406 Enclosed please find the Firm's invoice for services rendered for the period that ended 11/15/2009. Thank you for your payment of $230.50. Your current balance due is $2 9M8:62. If you have any questions, please do not hesitate to contact me. Sincerely, Bonni S. Jensen BSJ /adt Enclosure Copy to: Jay Spencer, Chairman David Pierson, Secretary Via Email Only 400 EXECUTIVE CENTER DRIVE, SUITE 207:• WEST PALM BEACH, FLORIDA 33401 -2922 PH: 561.686.6550 :• Fx: 561.686.2802 r.nc.e•.r THE LAW OFFICES OF PERRY & JENSEN, LLC 400 Executive Center Drive Suite 207 West Palm Beach, FL 33401 -2922 Invoice submitted to: Palm Beach Gardens Police Pension Fund Scott Baur & Bonnie Lindberg & Audrey Ross -via email c/o The Resource Centers, LLC 4360 Northlake Boulevard, Suite 206 Palm Beach Gardens FL 33410 Copy to: Chairman & Secretary November 23, 2009 In Reference To: FOR PROFESSIONAL SERVICES RENDERED AS FOLLOWS: Client I File No.: 0003 Invoice #63406 Professional Services HrslRate Amount Actuarial Valuation 10/30/2009 ADT E -Mail 0.10 7.50 E -Mail to Steve Palmquist for cost impact statement on Amendment for 75.001hr HEART & 538 Actuarial Valuation SUBTOTAL: [ 0.10 7.501 Attendance at Trustee Meetings 10/27/2009 ADT Prep Atty Rept 1.00 75.00 Prepare Attorney Report, Handouts, and Folder for upcoming Meeting - 75.00 /hr 10/29/09 Attendance at Trustee Meetings 10/29/2009 BSJ Attend 2.50 500.00 Attend meeting 200.00 /hr Attendance at Trustee Meetings 10/30/2009 ADT Review Documents 0.50 37.50 Review Documents and Notes from meeting - 10/29/09 75.00 /hr Attendance at Trustee Meetings SUBTOTAL: [ 4.00 612.50] Palm Beach Gardens Police Pension Fund Auditor 10/28/2009 BSJ Review and Revise Review and revise Engagement Letter Auditor Page 2 Hrs /Rate Amount 0.35 70.00 200.00 /hr SUBTOTAL: ( 0.35 70.00] Investment Policy Guidelines 11/2/2009 KA Review 1.50 112.50 Review §112.661 and Investment Policy Guidelines proposed by Thistle 75.00 /hr marked up by attorney and draft memorandum to Thistle reflecting missing citations from §112.661 Investment Policy Guidelines 11/3/2009 BSJ E -Mail 0.35 70.00 E -Mail to Brendon Vavrica 200.00 1hr Investment Policy Guidelines SUBTOTAL: ( 1.85 182.50] Misc Matters 10/13/2009 KA Review 0.25 18.75 Review CS /HB7051 re: Social Security Number report 75.00 /hr Draft Memorandum to Board of Trustees Misc Matters 10/20/2009 BSJ Review and Revise 0.25 50.00 Review and revise Memorandum to Board of Trustees re: Social Security 200.00 /hr Number and Florida Statutes §119.071 Misc Matters 10/27/2009 ADT E -Mail 0.10 7.50 E -Mail to Trustees Memorandum re: Social Security Number changes 75.00 /hr Misc Matters SUBTOTAL. j 0.60 76.25) Participant - General Correspondence 11/412009 KS Research 1.50 37.50 Research list of duty disability participants 25.00 1hr Participant - General Correspondence Palm Beach Gardens Police Pension Fund 11/6/2009 BSJ E -Mail E -Mail to Audrey Ross Participant - General Correspondence SUBTOTAL: Participant - Mamak - Duty Disability 11/12/2009 BSJ Attend Attend Hearing re: Mamak Attorney fees Prepare hearing Research cases: Mamak v Palm Beach Gardens Police Pension, Davie v. Cummings & Bass, Statutes §185.124 and Pension Plan Document §50 -124 Participant - Mamak - Duty Disability SUBTOTAL: Plan Document 10/19/2009 ADT Draft Draft plan amendment for HEART and SB538 Plan Document 10/22/2009 BSJ Review and Revise Review and revise Plan Amendment re: HEART. SB538 and Pending Plan Document 10/23/2009 ADT Review and Revise Review and revise Plan Amendment from attorney markup Include in HEART 538 Amendment provisions from outstanding amendment for prior police service; no vesting Draft cover letter for amendment to City Plan Document 10/28/2009 BSJ Review and Revise Review and revise Pension Plan Document with amendment Plan Document 10/30/2009 ADT Review and Revise Review and revise amendment from attorney markup Plan Document 11/3/2009 ADT Review and Revise Review and revise cover letter to City per attorney markup Review and revise Amendment per attorney markup Review and revise cover letter per attorney markup E -mail to Alan Owens Plan Document Page 3 Hrs /Rate Amount 0.10 20.00 200.00 /hr ( 1.60 57.501 1.00 200.00 200.00 /hr ( 1.00 200.001 1.75 131.25 75.00 /hr 1.00 200.00 200.00 /hr 1.00 75.00 75.00 /hr 0.50 100.00 200.00 /hr 0.50 37.50 75.00 /hr 0.50 37.50 75.00 /hr Palm Beach Gardens Police Pension Fund Page 4 Hrs /Rate Amount 11/3/2009 ADT Review 0.20 15.00 Review email from Audrey Ross re: Pension Plan Document from 1994 75.00 /hr and respond with documents Plan Document BSJ Draft 1.00 200.00 Draft letter to Alan Owens 200.00 /hr Plan Document 11/912009 BSJ Conference with 0.75 150.00 Conference with Jay Spencer and Allan Owens re: proposed amendment 200.00 /hr Conference with Jay Spencer re: mist matters Plan Document SUBTOTAL: ( 7.20 946.25] For professional services rendered 16.70 $2,152.50 Additional Charges Qty /Price Bill File 11/15/2009 PJ Photocopies$ 563 140.75 Copy Charges 0.25 Bill File SUBTOTAL: [ 140.75] Total additional charges $140.75 Total amount of this bill $2,293.25 Previous balance $915.87 Total payments ($230.50) Balance due $2,978.62 VENDOR: 000000000458 DATE VENDOR NO 01 /10 000000000458 INVOICE NUMBER INVOICE DATE INVOICE AMOUNT AMOUNT PAID DISC. TAKEN NET AMOUNT 1005070 01/01/10 2,663.18 2,663.18 .00 2,663.18 1005071 01 /01 /10 2,055.78 2,055.78 .00 2,055.78 !005072 01 /01 /10 120.28 120.28 .00 120.28 1005073 01/01/10 95.65 95.65 .00 95.65 ;005074 01 /01 /10 9.00 9.00 .00 9.00 i I i Check Total 4,943.89 BANK ATLANTIC Palm Beach Gardens Police 00002225 4360 Northlake Blvd Ste 206 Palm Beach Gardens, FI 33410 63.8376;2670 CHECK NO I CHECK DATE I VENDOR NO. 2225 O1 /01 /10 000000000458 PAY AMOUNT FOUR THOUSAND NINE HUNDRED FORTY -THREE AND 89/100 $4,943.89 TO THE CITY OF PALM BEACH GARDENS ORDER 10500 N MILITARY TRAIL OF ATTN: LAUREN FERREIRA PALM BEACH GARDENS FL 33410 VOID AFTER 180 DAYS ©OROER CONTAMS YICROPRINT 11'0000 2 2 2 511' 1:2670837631:006336560311' Palm Beach Gardens Police VENDOR: 000000000458 00002225 DATE VENDOR NO 01 /10 000000000458 INVOICE NUMBER INVOICE DATE INVOICE AMOUNT AMOUNT PAID DISC. TAKEN NET AMOUNT 005070 01 O1 10 2,663.18 2,663.18 .00 2,663.18 005071 01 /01 /10 2,055.78 2,055.78 .00 2,055.78 005072 01 /01 /10 120.28 120.28 .00 120.28 !005073 01 /01 /10 95.65 95.65 .00 95.65 j005074 01 /01 /10 9.00 9.00 .00 9.00 i i I Check Total 4,943.89 VFNnnR• nnnnnnnnnnnl 01 /10 000000000001 INVOICE NUMBER INVOICE DATE INVOICE AMOUNT AMOUNT PAID DISC. TAKEN NET AMOUNT P090508 I I i I i 01 04 10 2,285.62 2,285.62 Check .00 Total 2,285.6 2,285.6 Ry NT Palm Beach Gardens Police 00002226 4360 Northlake Blvd Ste 206 Palm Beach Gardens, FI 33410 63- 8376/2670 BANK ATLANTIC CHECK NO. CHECK DATE VENDOR NO. 2226 01/04/10 1000000000001 PAY AMOUNT TWO THOUSAND TWO HUNDRED EIGHTY -FIVE AND 62/100 TO THE PENSION RESOURCE CENTER I ORDER 4360 NORTHLAKE BLVD STE 206 OF PALM BEACH GARDENS FL 33410 VOID AFTER 180 DAYS i.R. �:t :'ONiANS MICA04R11 11'0000 2 2 2 611' 1:26 708 3 76 31:006336560311■ Palm Beach Gardens Police vcr.innn. nnnnnnnnnnnl 00002226 ;,ATE +EtiDC� ti 01/10 000000000001 INVOICE NUMBER INVOICE DATE INVOICE AMOUNT AMOUNT PAID DISC. TAKEN NET AMOUNT 090508 I i i i I O1 04 10 2,285.62 2,285.62 Check .00 Total 2,285.6 2,285.6 Resource Centers, LLC 4360 Northlake Blvd Ste 206 Palm Beach Gardens, FL 33410 Bill To Palm Beach Gardens Police Pension Fund Description Palm Beach Gardens Police I'ension Fund - Adnun Fee liar the month of.lanuarN 2010 FED -EX Overnite Shipping MaiI Payments to: Resource Centers. LLC at Palm Beach Gardens Address OR ACH PaNment to: First Southern Bank Financial Resource Center ABA x:067012895 Account #: 8061096806 First Southern Bank Pension Resource Center ABA #: 067012895 Account #: 8061093:06 Invoice Date Invoice # 1/4.'20 10 Rf19U5lig- Tax ID Numbers Resource Centers, LLC 87 -0800468 Pension Resource Center, LLC 364504183 Financial Resource Center, LLC 87 -0800465 Qty Rate Amount 2.275.Itt1 2,275.1X1 I 10.6'_ 10.62 Total Amount Due 52.285.62 First Southern Bank Resource Centers. LLC ABA u 067012895 Account it 800'M9200 If you have any questions concerning this invoice. please contact Denise McNeill at Resource Centers. LLC Phone 561 -459 -2966 or Email - Denise «resourcecenters.com !tlNuum: VV111Ul.V000ULV Ul /lU vvvvvvvvvvci INVOICE NUMBER INVOICE DATE -07-1706/10 INVOICE AMOUNT AMOUNT PAID DISC. TAKEN NET AMOUNT IC0C00C000478979 I I I I I I I I 4,000.00 I 4,000.00 4,000.00 Check .00 Total 4,000.0 4,000.0 THE FACE OF THIS DOCUMENT HAS A COLORED BACKGROUND ON WHITE PAPER - THE BACK CONTAINS AN ARTIFICIAL WATERMARK - HOLD AT AN ANGLE TO VIEW BANK ATLANTIC PAY FOUR THOUSAND AND 00/100 Palm Beach Gardens Police 00002227 4360 Northlake Blvd Ste 206 AMOUNT PAID Palm Beach Gardens, A 33410 63837612670 IOG0G00000478979 01 06 10 I I i i i I I t I 4,000.00 I 4,000.00 Check CHECK NO CHECK DATE VENDOR NO 2227 101/06/10 000000000029 AMOUNT $4,000.001 TO THE CHERRY, BEKAERT & HOLLAND ORDER ONE CLEARLAKE CENTER OF 250 AUSTRALIAN AVE SOUTH SUITE 1201 WEST PALM BEACH FL 33401 VOID AFTER 180 DAYS 11'0000 2 2 2 711' 1:2E70B37631:0063365603111 Palm Beach Gardens Police ,EP.,DOR. 000000900029 00002227 DATE VENDOR NO 01/10 000000000029 I INVOICE NUMBER INVOICE DATE INVOICE AMOUNT AMOUNT PAID DISC. TAKEN NET AMOUNT IOG0G00000478979 01 06 10 I I i i i I I t I 4,000.00 I 4,000.00 Check .00 Total 4,000. 4, 000 ..�- CHERRY BEKAERT & HOLLAND, L.L.P. 800 N. MAGNOLIA AVENUE SUITE 1300 ORLANDO, FL 32803 -3255 (407)423 -7911 Palm Beach Gardens Police Pension Fund c/o Pension Resource Center, Inc. 4360 Northlake Blvd., Suite 206 Palm Beach Gardens, FL 33410 Invoice No 478979 Date 12/29/2009 Client No 4253650.0 FOR PROFESSIONAL SERVICES RENDERED: Progress billing on audit of financial statements for the year ended September 30, 2009. RECF_IVFt., JAN 0 4 2910 $ 4 000 DQ TERMS: Invoices are payable upon presentation. A service charge will be added to past due accounts equal to 1.5% per month (18% annually) on the previous month's balances less payments received During the month, with a minimum charge of $2.00 per month. VENDOR: 000000000010 01 /10 000000000010 INVOICE NUMBER INVOICE DATE INVOICE AMOUNT AMOUNT PAID DISC. TAKEN NET AMOUNT 1000000000063450' ' i I i I t I 01/06/10 1,326.75 1,326.75 Check .00 Total 1,326.7 1,326.7 THE FACE OF THIS DOCUMENT HAS A COLORED BACKGROUND ON WHITE PAPER - THE BACK CONTAINS AN ARTIFICIAL WATERMARK - HOLD AT AN ANGLE TO VIEW Palm Beach Gardens Police 1111 4360 Northlake Blvd Ste 206 Palm Beach Gardens, F1 • . BANK ATLANTIC CHECK NO I CHECK DATE VENDOR NO 2228 01/06/10 1000000000010 PAY I AMOUNT ONE THOUSAND THREE HUNDRED TWENTY -SIX AND 75/100 TO THE PERRY & JENSEN, LLC ORDER 400 EXECUTIVE CENTER DRIVE SUITE 207 OF WEST PALM BEACH FL 33401 VOID AFTER 180 DAYS _- B01IgE Q.F! ANS YICFOPI 1160000 2 2 2811' 1: 26 708 3 76 31:006 3 36 560 311' Palm beach Gardens Police VENDOR: 000000000010 00002228 DATE VENDOR NO O1 /10 000000000010 INVOICE NUMBER INVOICE DATE INVOICE AMOUNT AMOUNT PAID DISC. TAKEN NET AMOUNT �i0CI000000063456 Ol 06,10 I I I � I i I I I i I 1,326.75 I 1,326.75 Check � .00 Total 1,326.7 1,326.% THE LAW OFFICES OF PERRY & JENSEN, LLC ANN H. PERRY aperry@perryjensenlaw.com December 22, 2009 Via Email Palm Beach Gardens Police Pension Fund Resource Centers, LLC Attn: Scott Baur & Bonnie Lindberg & Audrey Ross 4360 Northlake Boulevard, Suite 206 Palm Beach Gardens, FL 33410 Dear Scott & Bonnie: BONNI SPATARA JENSEN bsjensen@perryjensenlaw.com Re: Legal Services Provided Invoice #63456 Enclosed please find the Firm's invoice for services rendered for the period that ended 12/15/2009. Thank you for your payment of $2,293.25. Your current balance due is $2 A2. If you have any questions, please do not hesitate to contact me. Sincerely, BSJ /adt Enclosure Copy to: Jay Spencer, Chairman David Pierson, Secretary Via Email Only Bonni S. Jensen r !�L,-7 CQ i rJ., ✓) �f w0A,IC,/ J 400 EXECUTIVE CENTER DRIVE, SUITE 207.. WEST PALM BEACH, FLORIDA 33401 -2922 PH: 561.686.6550 •: FX: 561.686.2802 THE LAW OFFICES OF PERRY & JENSEN, LLC 400 Executive Center Drive Suite 207 West Palm Beach, FL 33401 -2922 Invoice submitted to: Palm Beach Gardens Police Pension Fund Scott Baur & Bonnie Lindberg & Audrey Ross -via email c/o The Resource Centers, LLC 4360 Northlake Boulevard, Suite 206 Palm Beach Gardens FL 33410 Copy to: Chairman & Secretary December 22, 2009 In Reference To. FOR PROFESSIONAL SERVICES RENDERED AS FOLLOWS Client / File No. 0003 Invoice #63456 Professional Services Hrs /Rate Amount Auditor 11/30/2009 BSJ Review 0.25 50.00 Review emails from Rowana Flitan and Audrey Ross re: items for Audit 200.00 /hr E -mail to Rowana Flitan re: status of items Auditor 12/1/2009 BSJ Review 0.35 70.00 Review and respond to emails re: Audit status 200.00 /hr Auditor 12/8/2009 BSJ Review 1.00 200.00 Review emails re: City / Employee contributions 200.00 /hr Review spreadsheet Telephone call with Allan Owens Auditor 12/9/2009 BSJ Review 0.10 20.00 Review email from Rowana Flitan 200.00 /hr Auditor 12/10/2009 BSJ Telephone Call 0.50 100.00 Telephone call with Audrey Ross, Rowan@ Flitan and Jay Spencer 200.00 /hr Telephone call with Allan Owens Auditor Palm Beach Gardens Police Pension Fund SUBTOTAL: Auditor Inquiry Letter 11/18/2009 ADT Review Review Auditor's Inquiry Letter Review invoices Draft response E -mail to Auditor Auditor Inquiry Letter BSJ Review Review Auditor's Inquiry Letter Review files Review and revise Auditor's Inquiry Letter response Auditor Inquiry Letter SUBTOTAL: Investment Policy Guidelines 12/3/2009 BSJ E -Mail E -Mail to Investment Monitor re: Scrutinized Co letters Review and revise Indirect Holdings Scrutinized Companies Letter, Direct Holdings Scrutinized Companies letter Investment Policy Guidelines 12/8/2009 ADT Review Review files for contact information for all Investment Managers to provide letter regarding Scrutinized Companies Investment Policy Guidelines BSJ E -Mail E -Mail to John McCann re: Scrutinized Co letters Review list of Managers Investment Policy Guidelines 12/9/2009 BSJ E -Mail E -mail to John McCann and Brendon Vavrica re: contact at Vanguard Telephone call with John McCann Investment Policy Guidelines AHP Prepare Assemble exhibits Investment Policy Guidelines Page 2 Hrs /Rate Amount [ 2.20 440.001 0.75 56.25 75.00 /hr 0.50 100.00 200.00 /hr [ 1.25 156.251 0.25 50.00 200.00 /hr 0.25 18.75 75.00 /hr 0.25 50.00 200.00 /hr 0.25 50.00 200.00 /hr 0.75 150.00 200.00 /h r Palm Beach Gardens Police Pension Fund Page 3 Hrs /Rate Amount 12/9/2009 ADT E -Mail 0.10 7.50 E -Mail to John McCann for contact information for the various 75.00 /hr International Mutual Funds (ICAP, Vanguard and TRowe Price) Investment Policy Guidelines BSJ Correspondence with 1.50 300.00 Correspondence with ICC, International Mutual Funds and Rhumbline 200.00 /hr Advisors re: Identification and Divestiture from Scrutinized Companies Investment Policy Guidelines 12/10/2009 BSJ Review 0.10 20.00 Review and respond to email from Steve Stack re: Scrutinized 200.00 /hr Companies letter Investment Policy Guidelines SUBTOTAL: [ 3.45 646.25] Plan Document 11/18/2009 BSJ Review 0.10 20.00 Review Actuarial Impact Statement re: Chapter 2009 -97 Fla Stat 200.00 /hr Amendment Plan Document ADT E -Mail 0.10 7.50 E -Mail to Allan Owens Actuarial Impact Statement for Amendment 75.00 /hr Plan Document 12/11/2009 ADT Review 0.20 15.00 Review email from Allan Owens re: format of Ordinance for City purposes 75.00 /hr and respond Plan Document SUBTOTAL: For professional services rendered Additional Charges : Bill File 12/15/2009 PJ Postage Postage Bill File [ 0.40 42.50] 7.30 $1,285.00 Qty /Price 1 2.00 2.00 Palm Beach Gardens Police Pension Fund 12/15/2009 PJ Photocopies$ Copy Charges Bill File SUBTOTAL: Total additional charges Total amount of this bill Previous balance Total payments Balance due Page 4 Qtv /Price Amount 159 39.75 0.25 ( 41.75] $41.75 $1,326.756 C �S 3� $2,978.62 ISM' ($2,293.25) 5�,A eM $2,012.12 Alison Fragola From: Angela D. Twomey [angela @perryjensenlaw.com] Sent: Monday, January 04, 2010 12:49 PM To: Alison Fragola Cc: Audrey Ross; Rachel Valdez Subject: Re: Perry & Jensen invoice (Palm Beach Gardens Police) Alison: I have confirmed receipt of the payment to which you refer. I apologize that this got by me. It will be reflected properly on the upcoming invoice. In the interim, please deduct that amount from your balance due. Thank you again and Have a Happy New Year! The Law Offices of Perry & Jensen, LLC 400 Executive Center Drive, Suite 207 West Palm Beach, Florida 33401 -2922 561.686.6550 (Phone) 561.686.2802 (Fax) Alison Fragola wrote: Good Morning Angela, I am in the process of paying our invoices for this month, I noticed that we have a owning balance of $ 685.37. 1 had reviewed our history and we made a payment for that amount: Check # 2211 on 10 -5 -09 for invoice 63315 Can you please let me know if you have received this payment if you did not we will issue the full amount owed. Thankyou -Arson •E. I ragof r The Resource Centers, LLC Florida Office 4360 Northlake Blvd, Suite 203 Palm Beach Gardens FL 33410 Direct Line: 561.459.2965 Office: 561.624.3277 Fax: 561.624.3278 Email: alison @resourcecenters.com www.resourCecenters.coni n1/10 000000000114 v c I V V V n. INVOICE NUMBER INVOICE DATE INVOICE AMOUNT AMOUNT PAID DISC, TAKEN NET AMOUNT 000000000110206 O1 06 10 2,485.00 2,485.00 .00 2,485.00 I I I I I I i I I Check Total 2,485.01C THE FACE OF THIS DOCUMENT HAS A COLORED BACKGROUND ON WHITE PAPER - THE BACK CONTAINS AN ARTIFICIAL WATERMARK - HOLD AT AN ANGLE TO VIEW Palm Beach Gardens Police 00002229 4360 Northlake Blvd Ste 206 Palm Beach Gardens, FI 33410 63. 8376,2670 BANK ATLANTIC CHECK N0. =CHECK E VENDOR N0 2210 000000000114 AMOUNT ' PAY I TWO THOUSAND FOUR HUNDRED EIGHTY -FIVE AND 00 /100 TO THE GRS ASSET CONSULTING GROUP, INC. ORDER 433 PLAZA REAL OF SUITE 275 BOCA RATON FL 33432 VOID AFTER 180 DAYS gC0N rca0 1150000 2 2 2911' 1:26 ?0837631:00E3365603110 Palm Beach Gardens Police 00002229 DATE VENDOR NC n,/in nnonno000114 vtivvvn: vvv�vvvvvil.z INVOICE NUMBER INVOICE DATE INVOICE AMOUNT AMOUNT PAID DISC. TAKEN - NET AMOUNT O1 06 10 2,485.00 2,485.00 .00 2,485.01 1000000000110206 I I I I I I i eck Total 2,485•0' Gabriel Roeder Smith & Company ?ECEIVED Invoice GRSConsultants & Actuaries DEC 17 2009 One East Broward Blvd. Suite 505 Ft. Lauderdale, Florida 33301 -1872 (954) 527 -1616 12/14/2009 110206 BOARD OF TRUSTEES, CITY OF PALM BEACH GARDENS POLICE OFFICERS PENSION FUND Dept. # 78009 Mr. J. Scott Baur, Administrator Resource Centers, I.LC 4360 Northlake Blvd., Suite 206 Palm Beach Gardens, Fl. 33410 Gabriel Roeder Smith & Company PO Box 78000 Detroit, Michigan 48278 -0009 or ACH Payment to: Gabriel Roeder Smith & Company JPMorgan Chase, ABA #: 072000326 Account #: 0486723 PLEASE; INDIC.%TE THE INVOIC1::Nt'.N1BER ON FOUR REN11'1- 17ANCE:. THANK l'OU- January 26, 2010 Board of Trustees Palm Beach Gardens Police Officers' Pension Fund We have audited the financial statements of Palm Beach Gardens Police Officers' Pension Fund (the "Fund ") for the year ended September 30, 2009, and have issued our draft report. As required by auditing standards generally accepted in the United States of America (GARS), we are providing you with the information shown below relative to the conduct of our audit. This report is intended solely for the use of the Board of Trustees and management of the Fund and is not intended to be and should not be used by anyone other than these specified parties. Our Responsibility under U.S. Generally Accepted Auditing Standards and Government Auditing Standards As stated in our engagement letter dated September 23, 2009, our responsibility, as described by professional standards, is to express an opinion about whether the financial statements prepared by management with your oversight are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles. Our audit of the financial statements does not relieve you or management of your responsibilities. Our responsibility is to plan and perform the audit to obtain reasonable, but not absolute, assurance that the financial statements were free of material misstatement. As part of our audit, we considered the internal control of the Fund. Such considerations were solely for the purpose of determining our audit procedures and not to provide any assurance concern such internal control. As part of obtaining reasonable assurance about whether the Fund's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grants. However, the objective of our tests was not to provide an opinion on compliance with such provisions. Planned Scope and Timing of the Audit We performed the audit according to the planned scope and timing previously communicated to you in our engagement letter Significant Audit Findings Qualitative Aspects of Accounting Practices Accounting Policies Management is responsible for the selection and use of appropriate accounting policies. Our responsibility is to advise management about the appropriateness of accounting policies and their application. The significant accounting policies used by the Fund are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during the year. We noted no transactions entered into by the Fund during the year for which there is a lack of authoritative guidance or consensus. There are no significant transactions that have been recognized in the financial statements in a different period than when the transaction occurred. Accounting Estimates Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The fair value determinations for investments which were not readily marketable were sensitive estimates. We reviewed the methods used to develop fair value measurements and tested selected values for reasonableness. Financial Statement Disclosures The disclosures in the financial statements are neutral, consistent and clear. Certain financial statement disclosures are particularly sensitive because of their significance to the financial statement user. The most sensitive disclosure affecting the financial statements was the investment disclosures in Note 3. This note discloses the various risks associated with the investments held by the Fund. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. There was an immaterial difference between the accounts receivable- buybacks as indicated by the City of Palm Beach Gardens and the Fund accounting records. Efforts should be made to reconcile these amounts on a regular basis. Management has corrected all other misstatements identified during the audit. None of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to the financial statements taken as a whole. Disagreements with Management For purposes of this letter. professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. 2 Management Representations We will request certain representations from management that will be included in the management representation letter as of our report date. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the Fund's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the Fund's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. This information is intended solely for the use of Board of Trustees and management of the Fund and is not intended to be and should not be used by anyone other than these specified parties. Very truly yours, Cherry, Bekaert & Holland, LLR Vol f "W" r 44/1 3 _ _ � � - -, ��:- � � . �_ ..S ' ��.. W � �� •( J 'ti � .. e - - __ _ _ - - ,.-... ��- -- .x ,� _ v. -- � +� �•• t a r �_. � .� -.'� �r .. 1� � � 1% ,. �� � �:. �� � �� . -��t. J � ' � _ 7 _ r� ,t �� . . —� ..ti •- ,. .._ � l f� PALM BEACH GARDENS POLICE PENSION FUND EXECUTIVE SUMMARY DECEMBER 31, 2009 Palm Beach Gardens Police Pension Fund Executive Summary Report Table of Contents PAGE Market Snapshot 1 Index Comparisons 2 Compliance Report 3 Total Portfolio Pie Chart 4 Manager Pie Chart 5 Asset Allocation Table 6 Total Ranks Table 7 Manager Ranks 8 Scatterplot Graphs: Total Fund Graph 9 Rhumbline Equities Graph 10 ICC Fixed income Graph 11 Beta Graph 12 Alpha Graph 13 Beta/ Alpha Table 14 Batting Average Graph 15 Batting Average /R- Squared Table 16 Other Managers' Page 17 T — . l,ht5tic Awt (,0115111tilla w 40 Tonsulting us ■ A T SNAPSHOT 4T" QUARTER 2009 INDEX RETURNS S &P 500 Russell 1000 Russell 1000 Grovlh Russell 1000 Value S &P Mid-cap 400 MSCI EAFE Barclays Aggregate Major Economic Indicators ► The CPI- Urban/1982 -84 =100 (unadjusted) for the 12 -month period ended December 2009 increased 2.7 %. The seasonally adjusted annual rate for the fourth quarter is 3.3 %. ► The Producer Price Index (PPI) for Finished Goods (seasonally adjusted) increased 0.3% in October, 1.8 %in November and 0.2% in December. For the 12 -month period ended in December the PPI (unadjusted) advanced 4.4 %. ► Real Gross Domestic Product (GDP) increased at an annual rate of 2.2% for the third quarter of 2009. In the second quarter, real GDP decreased 0.7 %. ► The seasonally adjusted unemployment rate is 10.0% in December compared to 9.8% in September. THISTLE ASSET CONSULTING 1321 Piazz Delle Pallottole, Boynton Beach, Florida 33.126 Phone: 561- 737 -3996 Facsimile: 561 -737 -6119 QTR YTD 6.04% 26.46% 6.07% 28.43% 7.94% 37.21% 4.22% 19.69% 5.56% 37.40% 2.22% 32.460/a 0.20% 5.93% Federal Reserve News ► During the fourth quarter, the Federal Reserve Board kept the primary discount rate at 0.50 %. The primary discount rate is the interest rate the Federal Reserve charges banks for short-term loans. ► The Federal Open Market Committee kept the target range for the federal funds rate of 0.00% to 0.25 %. The federal funds rate is the interest rate banks charge each other for overnight loans. Sector Trends ► Best Performing Sector: Information Technology increased 59.92% in 2009. ► Worst Performing Sector: Telecommunications increased 2.63% in 2009. Source: Standard & Poors (Performance reflects Price Returns Only) Index Comparison December 31, 2009 50.00 37.21 % R 1000G -- ------------ * ------ .. - 4.53% BCGC 40.00 I / -0.20% BCGC i 30.00 1 0 s 20.00 10.00 0.00 -10.00 -20.00 3 Months Last 12 Months Last 3 Years (Annualized) a Bad-y (;-K rd,l Bund 3 Months US&P300 0Russrll 1000 V.I.e §RnsuR_WOG /uuYR @ R.mell IDOO V.I., 8Russr113000 §.N5CIFAFE AU 1,,4istle Asset C0115111tiiill W 3 Months Last 12 Months Last 3 Years (Annualized) Barclays Gov /Credit Bond -0.20 4.53 5.82 Barclays Gov /Credit- Intermec 0.30 5.24 5.90 Russell 1000 Growth 7.94 3721 -1.89 Russell 1000 Value 4.22 19.69 -8.96 Russell 3000 5.90 28.34 -5.42 MSCI EAFE 2.22 32.46 -5.57 S &P 500 6.04 26.46 -5.63 Russell 2000 Growth 4.14 34.47 -4.00 Russell 2000 Value 6.04 20.58 -8.22 Palm Beach Gardens Police Pension Fund Compliance Report December 31, 2009 TOTAL FUND 1. Did the total return, over the trailing 3 -year period, exceed the policy, which is comprised of 25% S&P500,10% S&P400, �i r 10% S&P600, 10% R1000G,10% SAFE and 35% BCGC? 10.34 vs. -0.41] 2. Did the total return, over the trailing 3 -year period, rank in the top 50% of the Universe comprised of 25% Mobius Broad - Large Core, 10% Mid Cap, 10% Small Cap, 10% Broad Large Cap Growth, 10% International and 35% Broad Fixed? [8th] 3. Did the total return of the fund over the trailing 3-year period equal or exceed 7.5% (actuarial assumption rate of return)? r p [0.34 vs. 7.501 TOTAL EQUITY 1. Did the equity return, over the trailing 3 -year period, exceed the 38.4% S &P 500,15.4% S&P 40Q 15.4% S&P 600,15.4°% w r R1000G index and 15.4% EAFE? [ -3.89 vs. -4.45] 2. Did the equity return, over the trailing 5 -year period, exceed the 38.4% S&P 500,15.4% S&P 400,15.4% S&P 600,15.4°% ,r r R1000G index and 15.4% EAFE? [1.73 vs. 1.361 3. Did the equity return over the trailing 3 -year period, rank in the top 50% of the Mobius 38.4% Broad large Cap, 15.4% Mid ,� r Cap, 15.4% Small Cap, 15.4% Broad Large Cap Growth and 15.4% International Universe? [47th] 4. Did the equity return, over the trailing 5 -year period, rank in the top 50% of the Mobius 38.4% Broad Large Cap, 15.4% Mid R f Cap, 15.4% Small Cap, 15.4% Broad large Cap Growth and 15.4% International Universe? [20th] 5. Is the amount invested in any single security less than or equal to 5% of the market value of the total equity portfolio? W r 6. Is the amount invested in any single industry less than or equal to 20% of the market value of the total equity portfolio? W I- FIXED INCOME - ICC CAPITAL 1. Did the fixed income return, over the trailing 3-year period, exceed the BCGC? 15.48 vs. 6.041 r ,� 2. Did the fixed income return, over the trailing 3 -year period, rank in the top 50% of the Mobius Broad Fixed Income Universe? [21st] 3. Did the fixed income return, over the trailing 5-year period, exceed the BCGC? [4.82 vs. 4.97] 4. Did the fixed income return, over the trailing 5-year period, rank in the top 50% of the Mobius Broad Fixed Income Universe? [20th] 5. Is the amount invested in any single security (with exception of U.S. Government and its agencies) less than or equal to 5% of the market value of the total fixed income portfolio? 6. Is the minimum quality rating of the bond investments BBB from Standard & Poor's or BAA from Moody's? �hi5tlr ��tirt �np5ulting R r r- Fi � r � r rJ r Fixed Income 33% Palm Beach Gardens Police Pension Fund Total Assets December 31, 2009 Cask ti% Equities ■ Fixed Income ■ Cash pities 61% r M:ltt5tlr ;Agal`t LDlmiltin Page 4 ICC Lg. G 14% Palm Beach Gardens Police Pension Fund Total Assets December 31, 2009 Rhumhline .SfrP500 9% 'ine S&P400 9% bline S&P600 9% ■RhumblineS &P500 0 RhumblineS &P400 0 RhumblineS &P600 ®Intl. Equity ■ICC Lg. Growth ■ICC Fixed L�1lht�! .�;�SFf L1i1151tiftltij `�' Page 5 Palm Beach Gardens Police Pension Fund Performance Evaluation Summary December 31, 2009 Manager Equities Fixed Income Cash Total 0,6 of Total Rhumbline S &P500 $6,775,000 $0 $0 $6,775,000 19.5% Rhumbline S &P400 $3,163,000 $0 $0 $3,163,000 9.1 Rhumbline S &P600 $3,132,000 $0 $0 $3,132,000 9.0% Intl. Equity $3,299,000 $0 $0 $3,299,000 9.5"il ICC Lg. Growth $4,826,000 $0 $0 $4,826,000 13.9% ICC Fixed $0 $11,621,000 $1,906,000 $13,527,000 39.0% Total ----------------------------------------------------------------------------------------------------------------------------------------------------------------- $21,195,000 $11,621,000 $1,906,000 $34,722,000 100.0% % of Total 61.0 "� 33.5% 5.1 "111 100.0 "<, Target °l0 65.0",, 35.0°b 0.0 °1'n 100.0 "0 �r �it�t� ,���Pf (�u1151iltlltg �+ Palm Beach Gardens Police Pension Fund Performance Evaluation Summary December 31, 2009 Current Fiscal Year Harter F)'TD One Year Three Years Five Years 2009 2008 2007 2006 2005 TOTAL FUND (Net of Fees) Return 3.26% 3.26% 21.56% 0.34 ",o 3.11 IN 5.624% - 13.73% 11.90% 6.710% 978°% Ranking ( *) 40 40 60 8 h 7 55 .34 46 .33 Policy Return ( * *) 3.72% 3.72% 22.11% -0.41% 2.88% 1.64% -12.83% 12.98% 7.22% 10.33% TOTAL EQUITIES Return 5.clo o 5.9040 .3)4.13 ".o - 3.89 "lb 1.734,) - 0.91 - 23.23% 17.99% Q. "iuu;n 15.33°% Ranking ( * * *) 4 4 S 47 20 19 100 10 20 12 Policy Return (38.4 %S &P500, 15.4 %S &P400, 15.4 %S &P600, 15.4% R1000G, 15.4% SAFE) 5.58% 5.58% 30.76% -4.45% 1.36% -4.36% - 21.04°% 17.05% 9.27% 16.00% TOTAL FIXED INCOME Return -0.45% - 0.45°% 6.2011b 5.48% 4.82% 11.96 °'o 1.22% 4.98% 3.56% 3.36% Ranking (Broad Fixed) 65 65 82 21 20 46 23 27 59 2'+ Policy Return (BCAB) 0.20°% 0.20% 5.93% 6.04% 4.97% 10.56% 3.66% 5.13% 3.67% 2.80°% *25% Broad Large Cap Core, 10% Mid Cap, 10% Small Cap, 10% Broad Large Growth, 10% International, 35% Broad Fixed ** 25% S &P500, 10% S &P400, 10% S &P600, 10% R1000G, 10% EAFE, 35% BCAB * ** 38.4% Broad Large Cap Core, 15.4% Mid Cap, 15.4% Small Cap, 15.4% Broad Large Cap Growth, 15.4% International G0111 ilhlir11ft" 6111111 h' (V' h-at flit' indc.l'. or in n1tip r 41) o! Red indicates bottom 40% of universe l� 16ftle A55vt Crounitlltii Pa c 7 Palm Beach Gardens Police Pension Fund Performance Evaluation Summary December 31, 2009 Current Fi>cal Year latrter FITD One Year Three Years Fine Years 2009 2008 2007 2006 2005 Return 3.3s"o .3.58'A 37.40 "" -1.6w, 3.42 "i, 2.77'! I6.;34 "„ 18.74% 6.60 72.37 Ranking (50% Br.Lg.Cap&50% Br.Sm. Cap) 32 .32 6 h N 1't 14 2h 81 .3 Policy (S&P 400) 5.56% 5.56% 37.40% -7.83% 3.27% - 3.10% - 16.68% 18.76% 6.56% 22.16% RHUMBLINE S &P 600 EQUITY PORTFOLIO Return RHUMBLINE S &P 500 EQUITY PORTFOLIO 5.08% 25.36% Return t;.0 T, h.07 "„ 26.5311,x - ;.,1 ", 0.63 "„ - n.1�1''�� - '1.72 Ih.63 °„ 10.,4.,+ "„ 12.22% Ranking (Br.Large Cap Core) 35 3 ) 60 46 54 55 3h 3t1 27 57 Policy(S &P500) 6.04% 6.04% 26.46% - 5.63% 0.42% -6.91% - 21.98% 16.44% 10.79% 12.25% 54 RHUMBLINE S &P 400 EQUITY PORTFOLIO 22 57 Return 3.3s"o .3.58'A 37.40 "" -1.6w, 3.42 "i, 2.77'! I6.;34 "„ 18.74% 6.60 72.37 Ranking (50% Br.Lg.Cap&50% Br.Sm. Cap) 32 .32 6 h N 1't 14 2h 81 .3 Policy (S&P 400) 5.56% 5.56% 37.40% -7.83% 3.27% - 3.10% - 16.68% 18.76% 6.56% 22.16% RHUMBLINE S &P 600 EQUITY PORTFOLIO Return 5.08% 5.08% 25.36% - 4.617" %, 1. ifi" , 111..74'' , - 13.64,1 1.5.17"') 7.61 "„ 27.76% Ranking (Broad Small Cap) 37 .37 88 50 54 86 22 57 52 32 Policy (S &P 600) 5.11% 5.71% 25.57% -4.79% 1.36% -10.61% - 13.83% 14.93% 7.16% 21.22% � �lll5t�� 1�4t'f LII11511�t1I1Q�1 ICC LA RGE CAP GRMVI'H EQUITY PORTFOLIO 3 -Otrs 1 -Year 2 -Year Return 9.03 ",, 9.03'!„ 30.3h" o ;1.36 "„ - 2.1)7 ",, 13.30",, -30.79% ►t/a n/a n/a Ranking (Broad Large Cap Growth) 4 4 1 1 1 1 100 q/a n/a n/a Policy (R1000G) 7.94% 7.94% 43.11% 37.21% -8.09% -1.85% - 20.88% n/a n/a n/a INTERNATIONAL EQUITY 2 -Year 3 -Year Return .3.76 "„ 3.76 "o 37.04 "„ - 12.33 "„ - 4.11 "" 2.30% - 21).10 "" 17.4; ►t/a n/a Ranking (International Equity) 33 33 .34 39 .-,2 48 3t+ 43 11 /11 n/a Policy(MSCI EA FE) 2.22% 2.22% 32.46% - 73.15% -5.57% 3.79% - 30.12% 25.38% r1 /a n/a Red mi irahs bottom 40 "0 of univerw � �lll5t�� 1�4t'f LII11511�t1I1Q�1 December 31, 2009 EXPLANATION OF RISK/REWARD SCATTERPLOT GRAPHS The crossing lines represent the 5 -year return (horizontal line) and 5 -year standard deviation or volatility or risk (vertical line) of the index against which the Fund is being measured. Each point represents the Fund's 5 -year return (vertically) and standard deviation or volatility (horizontally), relative to the index. If a point is in the southwest quadrant, for example, the 5 -year return of the Fund has been less than (below) the index line, and the 5 -year standard deviation (volatility) has also been less than (to the left ofi the index line. There are four points, one for each of the last four quarters. The earliest one is the smallest and the quarter just ended being the largest. Each point shows the 5 -year relative position of the Fund versus the index for that quarter. The movement of the points shows the trend, or direction, over time. As noted in the graph, the best place to be is the northwest quadrant (less risk and a higher return); the worst place to be is the southeast quadrant (more risk and a lower return). l;hi5tlr ,�5et �nit5ulticiu K k m 'CS i bq 0 12 +r o� w_ Or G -3 Pahn Beach Gardens Police Pension Fund Total Fund Trailing 5 -Years (versus 25% S &P500, 10% S &P400, 10% S &P600, 10% R1000G, 10% SAFE, 35% BCGQ December 31, 2009 -3 0 Risk (Difference in Standard Deviations) 012/31/2009 ♦9/30/2009 ®6/30/2009 ♦3/31/2009 r �ht�tlF .���yrf L01i51iltlllll Page 9 3 k o, 'CS bq r� C y 0 is O> V Ol A -3 Palm Beach Gardens Police Pension Fund Total EquityTrailing 5 -Years (versus 38.4% S &P 500, 15.4% S &P 400,15.4% S &P 600,19.4% RIOOOG & 15.4% Ind. ) December 31, 2009 -3 0 Risk (Difference in Standard Deviations) • 12/31/2009 ♦ 9/30/2009 O 613012009 ♦ 3131/2009 AOCIhisfle �SSrt(�onsultiuu� Page 10 3 k o� i bq rrC �G v, Q o� x 41 v A 51 Palm Beach Gardens Police Pension Fund ICC Fixed Income Trailing Since Inception (versus BCGQ December 31, 2009 -3 0 3 Risk (Difference in Standard Deviations) • I2/3I/2009 ♦ 9/30%1009 M 6/30/2009 ♦ 3/31/2009 �11i5t11' ;�h51't `11t1�1t1tlltu Page 1I Palm Beach Gardens Police Pension Fund Beta: Trailing 5 -Year Risk December 31, 2009 Dec -09 Sep -09 Jun -09 Mar -09 0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00 1.10 ■ Total Fund ■ Large Grp O Mid Cap O Sn ►all Cap ■ ICC Fi.ied M I ntem ation al ■ Large Growth 04 Orl Liit5tlF .�aSPt LD1i5111tiliQ I�,1 '. l 4.0 %% 2.0% 0.0% -2.0 4.0% -6.0% -8.0% - 10.0% -12.0% Dec -09 Palm Beach Gardens Police Pension Fund Alpha: Trailing 5 -Year Reward December 31, 2009 TOTAL FUND & INDIVIDUAL MANAGERS Sep -09 Jun -09 Mar -09 ■ Total Fund ■ Large Cap D Mid Cap C Small Cap ■ ICC Fixed ■ International ■ Large Growth 04 �11i5t1r k1l k.rlet (;nit�ultilu� Page 13 Total Fund Managers, Fixed Income 1 CC Fixed Pahn Beach Gardens Police Pension Fund Alpha & Beta: 5 -Years Trailing (or Inception if Less) December 31, 2009 BETA Current Policil Dec -09 Sep-09 un -09 Mar -09 * 0.76 0.77 0.76 0.76 BCAB 0.98 0.97 0.93 0.88 Managers, Equities 0.22% 0.21% 0.19% 0.17% S &P400 Large Cap S &P500 0.99 0.99 0.99 0.99 Mid Cap S &P400 0.99 0.99 0.99 0.99 Small Cap S &P600 0.99 0.99 0.99 0.99 International SAFE 0.43 0.45 0.41 0.32 Large Growth R1000G 1.09 1.09 1.07 1.10 ALPHA Total Fund 0.92% 1.00% 0.42% 0.45% Managers, Fixed Income ICC Fixed Managers, Equities Large Cap Mid Cap Small Cap International Large Growth BCAB -0.07% 0.00% - 0.25% 0.21% S &P500 0.22% 0.21% 0.19% 0.17% S &P400 0.17% 0.18% 0.17% 0.15% S &P600 0.22% 0.21% 0.22% 0.24% EAFE - 0.30% -1.17% -5.21% -11.71% R1000G 2.25% 2.27% 0.40% 2.37% * 25% S &P 500, 10% S &P400, 10% S &P600, 10% R1000G, 10% EAFE, 35% BCAB kil kit �j Asi.ivt C,D11511Iting Page 14 100 50 25 z Palm Beach Gardens Police Pension Fund Batting Average: 5 -Years Trailing December 31, 2009 TOTAL FUND & INDIVIDUAL MANAGERS Dec -09 Sep-09 lull-09 Mar -09 ■ Tofal Fund D Large Cap DMid Cap D Snnall Cap ■ ICC Fixed ■ international ■ Large Growth T Chisth, ,Asset Crousultilla pilge 1 Palm Beach Gardens Police Pension Fund BattingAverage. 5 -Years Trailing (or Inception ilLess) December 31, 2009 BATTING AVERAGE Current Poiint Dec -09 Sep -09 cu2-09 Mar -09 Total Fund 35.00 35.00 35.00 40.00 Managers, Fixed Income ICC Fixed BCAB 65.00 65.00 60.00 60.00 Managers, Equities Large Cap S&P500 70.00 65.00 70.00 75.00 Mid Cap S&P400 60.00 55.00 60.00 65.00 Small Cap S&P600 60.00 60.00 65.00 70.00 International EAFE 53.85 50.00 45.45 50.00 Large Growth R1000G 55.56 50.00 42.86 50.00 R- SQUARED Total Fund 0.96 0.96 0.96 0.96 Managers, Fixed lnconne ICC Fixed BCAB 0.82 0.80 0.77 0.76 Managers, Equities Large Cap S&P500 1.00 1.00 1.00 1.00 Mid Cap S&P400 1.00 1.00 1.00 1.00 Small Cap S &P600 1.00 1.00 1.00 1.00 International EAFE 0.24 0.37 0.33 0.22 Large Growth R1000G 0.88 0.88 0.87 0.85 * 25% S &P 500, 10% S &P400, 10% S &P600, 10% R1000G, 10% SAFE, 35% BCAB �LI1I5t1P �raCtcUllylllt111Q� r,,�: it Performance o£Other Managers December 31, 2009 Qtr YM lYr 31'r 5Yr 101'r CORE E�UI17 _ Atlanta Capital Management Co., LLC - High Quality Growth Plus - Gross Size 4.67 4.67 33.93 -1.12 2.45 -0.06 Eagle Asset Management - Conservative Large Cap Equity -Gross Size 3.01 3.01 33.89 -557 0.01 3.70 ICC Capital Management, Inc - Core Value - Gross Size 6.11 6.11 28.59 - 3.42 2.20 3.02 INVESCO - Structured Core Equity - Gross Size 6.32 6.32 21.73 -5.00 2.94 IronOak Advisors - Large Cap Core - Gross Size 6.64 6.64 30.08 -5.56 1.68 2.75 Madison Investment Advisors, Inc. - Large Cap Equity pnstl) - Gross Size 6.62 6.62 34.62 -2.67 1.20 3.21 Rhumbline Advisers Corporation - Russell 1000 Index Fund - Gross Size 6.06 6.06 29.00 -5.03 0.99 Rhumbline Advisers Corporation - S &P 500 Index Fund - Gross Size 6.05 6.05 26.37 -552 0.49 -0.80 Robeco Investment Management, Inc. - WPG Disc Equity Large Cap - Gross Size 5.87 5.87 24.72 -5.32 7.01 0.70 RBC Global Asset Management - Large Cap Core 4.37 4.37 27.99 -4.73 2.36 3.18 Russell 1000 6.07 6.07 28.43 -5.36 0.79 -0.49 S &P 500 6.04 6.04 26.46 -5.63 0.42 -0.95 GROWTH EQUITY Davis Hamilton Jackson & Associates - Quality Growth - Gross Size 7.87 7.87 34.32 -0.29 7.54 -1.10 Denver Investment Advisors, LLC - Growth - Gross Size 10.63 10.63 41,12 -0.87 2.04 1.36 ICC Capital Management, Inc - Large Cap Growth Equity - Gross Size 7.87 7.87 49.18 -7.70 1.95 Logan Capital Management - Large Cap Growth - Gross Size 9.75 9,75 51.12 -4.02 1.31 -7.03 Montag & Caldwell, Inc. - Large Cap Growth - Gross Size 7.23 7,23 30.94 2.82 4.72 -0.20 OakBrook Investments, LLC - OakBm7k Select Equity - Gross Size 9.77 9.17 28.81 -1.73 2.07 5.78 Rhumbline Advisers Corporation - Russell 1000 Growth Index Fund - Gross Size 7.89 7.89 37.41 -1.73 1.74 -187 Sawgrass Asset Management, LLC - Large Cap Growth Equity - Gross Size 6.93 6.93 28.34 -2.87 1.86 0.60 Silvant Capital - Select LCG Stock - Grosss Size 5.60 5.60 32.03 -0.42 3.07 7.97 SIPCO - U.S. Growth Leaders - Grose Size 4.73 4.73 41.34 3.06 6.25 State Street Global Advisors - Active U.S. Large Cap Growth Strategy - Gross Size 6.07 6.07 24.43 -5.09 0.93 -4.62 Russell 1000 Growth 7.94 7.94 37.21 -1.89 1.63 -3.96 S &P 500/Citigroup Growth 7.76 7.76 3159 -212 1.53 -2.86 Rhumbline Large Cap(F)E) 6.07 6.07 2653 -5.37 0.63 n/a Rhumbline Mid Cap(FYE) 5.58 5.58 37.40 -1.66 3.42 n/a Rhumbline Small Cap(FYE) 5.08 5.08 25.36 -4.66 1.56 n/a International Equity(FYE) 3.76 3.76 37.04 -4.11 11/17 n/a ICC Large Growth(FYE) 9.03 9.03 57.36 n/e n/a n/a sawossamw*6 IT Performance of Other Managers December 31, 2009 �abQut�j�a�p�t�� I�a„ l Qtr YTD IYr 3 Y 5 Y 101 r _ _VALUEEQUITY BRC Investment Management Large Cap Value - Gross Size 2.64 2.64 23.90 - 1.01 4.21 4.48 Buckhead Capital Management - Value Equity - Lou, PIE - Gross Size 6.30 6.30 25.83 -4.73 1.15 5.38 Cascade Investment Counsel, LLC- Large Cap Value - Gross Size 4.99 4.99 25.72 0.12 7.94 8.22 Cohen & Steers Capital Mgntt., Inc. - Cohen & Steers Large Cap Value - Gross Size 5.46 5.46 18.16 4.84 3.35 Crawford Investment Counsel, Inc. - Dividend Growth - Gross Size 6.24 6.24 18.76 -3.43 0.87 3.92 DePrince, Race, Zollo, Inc. - Large Cap Value Equity - Gross Size 6.30 6.30 44.48 -5.09 1.61 7.25 Eagle Asset Management - Value - Institutional -Gross Sue 7.08 7.08 28.51 -3.55 3.05 4.13 ICC Capital Management, Inc- Core Value - Gross Size 6.11 6.11 28.59 -3.42 2.20 3.02 Loomis, Sayles & Company, L.P. - Large Cap Value - Gross Size 3.59 3.59 20.36 - 5.01 4.23 4.48 Missouri Valley Partners - Large Cap Value - Gross Size 3.30 3.30 17.02 -7.82 -1.24 Oppenheimer Capital - Large Cap Value - Gross Size 4.01 4.01 37.07 -14.47 -3.97 -0.66 Rhumbline Advisers Corporation - Russell 1000 Value Index Fund - Gross Size 4.21 4.21 19.89 -8.68 -0.08 259 State Street Global Advisors - Active U.S. Large Cap Value Strategy - Gross Size 1.64 1.64 11.00 -10.08 -0.99 2.60 The Boston Company Asset Mgmt., LLC - US Large Cap Value Equity Management 3.47 3.47 19.14 -7.02 0.88 219 Ceredex Value Ad Large Cap Value 5.67 567 25.63 -3.44 3.08 4.94 RBC Global Asset Management, Inc. - Large Cap Value - Gross Size 3.25 3.25 20.68 -658 2.04 3.33 Westuwod Management Corporation - LargeCap Equity - Gross Size 5.71 5.71 14.49 -4.29 4.01 4.31 Russell 1000 Value 4.22 4.22 19.69 -8.% -015 2.47 S &P 5WCitigroup Value 4.22 4.22 21.18 -9.10_ -0.81 0.82 _ MID -CAP EQUTIY Amalgamated Bank - Long View 400 MidCap Index Fund - Gross Size 5.54 5.54 37.43 1.87 3.29 636 Chicago Equity Partners, LLC - Mid Cap Core Equity - Gross Size 5.33 5.33 38.18 6.29 0.16 5.50 Mutual of America - Mid -Cap Equity Index - Gross Size 5.53 5.53 37.06 -1.90 3.24 6.17 OakBrook Investments, LLC- Enhanced MidCap Strategy - Gross Size 5.73 5.13 38.15 -1.77 4.01 Rhumbline Advisers Corporation - S &P 400 Index Fund - Gross Size 5.57 5.57 37.32 -2.98 2.59 6.07 Robeco Investment Management, Inc. - BPAM Mid Cap Value Equity - Gross Size 6.90 6.90 42.01 0.93 6.34 9.69 State Street Global Advisors - Mid Cap Core Strategy - Gross Size 2.56 2.56 22.37 -1157 -2.72 4.13 Russell Midcap 5.92 5.92 40.48 -4.59 243 4.98 S &P Midcap 400 556 5.56 37.40 -1.83 3.27 6.36 Rhumbline Large Cap(FYE) 6.07 6.07 26.53 -5.31 0.63 n/a Rhumbline Mid Cap(FYE) 558 5.58 37.40 -7.66 3.42 n/a Rhumbline Small Cap(FYE) 5.08 5.08 25.36 4.66 1.56 n/a International Equity(FYE) 3.76 3.76 37.04 -4.71 n/a n/a ICC Large Growth(FYE) 9.03 9.03 57.36 n/a n/a n/a �abQut�j�a�p�t�� I�a„ l Performance of Other Managers December 31, 2009 _ Qtr )TD 1 Yr 3Yr 5 Y 10Y_r_ _ ALL CAP EQUITY _ 4.19 4.19 47.06 -0.91 8.21 4.26 Advanced Investment Partners - AIICap - Gross Size 5.91 5.97 24.10 -7.20 649 2.19 BuckheadCaptial Management - All Cap - Gross Size 3.82 3.82 21.90 -5.36 2.26 3.58 Diamond Hill Capital Management, inc. - Diamond Hill Select Equity - Gross Size 8.70 8.70 34.17 -1.78 5.62 6.70 iCC Capital Management, Inc - Multi-Cap Eq. - Gross Size 8.70 8.70 38.53 4.39 10.39 7.61 Intrepid Capital Management, Inc, - Intrepid Multi -Cap Equity - Gross Size 6.33 6.33 32.12 2.35 5.32 8.63 Oak Ridge investments, LLC- All -Cap - Gross Size 7.85 7.85 31.15 -1.59 2.45 7.95 Russell 3000 5.90 5.90 28.34 -5.42 0.77 -0.20 Dow Jones Wilshire 5000 (Full Cap) 5.% 5.% 29.42 -5.00 1.10 -0.17 SMALL CAP EQU ITY -- - 6.07 26.53 - 0.63 - -- Atlanta Capital Management Co., LLC - High Quality Small Cap - Gross Size 4.59 4.59 27.76 3.04 6.18 9.67 Ceredex - Value Ad Small Cap Value - Gross Size 4.85 4.85 37.36 -0.63 5.74 73.74 Eagle Asset Management - Small Cap Core - institutional - Gross Size 4.09 4.09 21.73 -2.90 3.47 9.46 GW Capital, Inc. - Small Cap Value Equity - Gross Size 8.82 8.82 36.34 -2.82 6.15 15.55 Intrepid Capital Management, Inc. - intrepid Small Cap - Gross Size 4.81 4.81 32.01 10.63 9.81 73.09 Kayne Anderson Rudnick lnvst. - Small Cap - Gross Size 6.65 6.65 32.09 -0.45 3.82 8.43 Pzena Investment Management, LLC- Pzena Small Cap Value Service - Gross Size 6.09 6.09 51.77 -2.36 3.41 13.92 Rhumbline Advisers Corporation - S &P 600 Index Fund - Gross Size 5.70 5.70 25.37 -4.67 1.55 Sawgrass Asset Management, LLC - Small Cap Growth Equ ity - Gross Size 0.28 0.28 10.58 -17.60 -5.96 -2.74 State Street Global Advisors - Small Cap Equity Strategy - Gross Size 2.39 2.39 17.79 -14.96 -5.85 1.21 Silvant Capital - Small Cap Growth - Gross Size 5.88 5.88 33.60 -3.34 0.15 Russell 2000 3.87 3.87 27.17 -6.06 0.51 3.51 S &P SmatiCap 600 5.11 5.11 2557 4.80 1.36 6.36 REAL ESTATE (9j30009) - - - -- American Realty Advisors - Core Equity Real Estate -Sep. Accts. - Gross Size -8.37 -32.13 - 3213 _ -4.96 4.32 6.71 ASB Capital Management, Inc. - EB Real Estate Fund - Gross Size 4.58 -28.91 -28.91 4.38 3.89 6.90 Intercontinental - US REIF - Gross Size 2.59 -29.80 -29.80 IPMorgan Asset Management - Strategic Property Fund - Gross Size -7.30 -31.01 -31.01 -5.46 4.05 7.07 Principal Global Investors - Real Estate Core Property - Gross Size -5.96 -26.27 -26.27 -4.39 4.09 6.83 Dow Jones Wilshire REIT Index 35.42 -29.23 -29.23 -13.69 1.19 9.75 NCREIF Property Index -3.32 -22.11 -22.11 - 1.29_ 6.16 7.83 INTERNATIONAL EQUTTY DePrince, Race, Zollo, Inc. - International Equity - Gross Size 6.47 6.47 47.58 -2.45 5.67 5.73 HGK Asset Management - international Equity - Gross Size 4.19 4.19 47.06 -0.91 8.21 4.26 iCC Capital Management Inc - International ADR Equity - Gross Size 3.02 3.02 36.79 -3.27 2.87 -0.45 INVESCO - International Equity - Gross Size 3.94 3.94 35.65 -3.72 4.72 3.58 KBC Asset Mgmt. - Dividend Plus SAFE Equity - Gross Size 2.30 2.30 31.34 -6.40 4.70 6.70 State Street Global Advisors - MSCI EAFE Index Strategy - Gross Equal 2.20 2.20 31.85 -5.97 3.68 7.28 The Boston Company Asset Mgmt., LLC - International Core Equity Management 2.36 2.36 29.69 -70.07 2.54 5.26 Thornburg Investment Mgmt. - International Equity - Gross Size 4.08 4.08 33.55 0.26 8.88 7.95 Wentworth, Hauserand Violich - WHV International Equity - Gross Size 9.68 9.68 67.99 5.90 75.67 13.71 MSCI EAFE 2.22 2.22 32.46 -557 4.02 1.58 Rhumbline Large Cap(FYE) 6.07 6.07 26.53 -5.37 0.63 n/a Rhumbline Mid Cap(F)E) 5.58 5.58 37.40 -1.66 3.42 n/a Rhumbline Small Cap(F) "E) 5.08 5.08 25.36 -4.66 1.56 n/a International Equity(FYE) 3.76 3.76 37.04 -4.77 n/a n/a ICC Large Growth(FYE) 9.03 9.03 51.36 r71,1 n/a n/a Performance of other Managrrs December 31, 2009 sch1k:165d&5111tiUW lla, , 20 }7D 31 r 1'r 101 "r CORE FIXED INCOME _Qtr -1)'r Atlanta Capital Management Co., LLC - High Quality Broad Market - Gross Size -0.03 -0.03 2.35 6.18 5.33 6.32 Denver Investment Advisors - Core Bond Gov't /Corp. - Gross Size 0.31 0.31 7.04 6.09 5.10 6.78 Eagle Asset Management - Core Fixed Institutional - Gross Size 0.78 0.78 7.46 6.52 5.28 6.39 ICC Capital Management, Inc - Core Fixed Income - Gross Size -0.42 -0.42 5.22 5.09 4.37 5.87 Oppenheimer Capital - Fixed Income Aggregate - Gross Size 1.21 1.21 8.17 7.74 6.05 6.79 Sau7grass Asset Management, LLC - Core Fired Income - Gross Size 0.30 0,30 7.03 6.95 5.63 6.66 RBC Global Asset Management, Inc. - Broad Market Core - Gross Size 1.55 1.55 11.56 4.88 4.39 5.97 Barclays Aggregate Bond 0.20 0.20 5.93 6.04 4.97 633 Barclays Gov /Credit Bond -0.20 -0.20 4.53 5.82 4.71 634 Barclays High Yield US Corporate Bond 6.20 6.20 58.21 5.98 6.47 6.72 INTERMEDIATE FDTD INCOME - - Buckhead Capital Management - Intermediate Fixed - Gross Size 0.44 0.44 6.87 7.06 5.55 Davis Hamilton Jackson 6 Associates - Intermediate Fixed Income - Gross Size 1.24 1.24 10.88 8.16 6.23 6.79 Denver Investment Advisors - Intermediate Fixed - Gross Size 0.72 0.72 7.72 5.96 5.05 6.29 Eagle Asset Management - Institutional Conservative - Gross Size 0.05 0.05 5.88 6.86 5.32 6.13 Missouri Valley Partners - Intermediate Government /Credit Fixed Income - Gross Size 0.36 0.36 4.79 7.22 5.61 Sawgrass Asset Management, LLC - Intermediate Fixed Income - Gross Size 0.25 0.25 4.98 6.48 5.13 6.02 Sit Investment Associates, Inc. - Intermediate Govt /Corp - Gross Size 2.53 2.53 16.32 6.37 5.47 6.28 RBC Global Asset Management, Inc. - Intermediate Core - Gross Size 1.33 1.33 9.99 4.19 3.84 5.59 Barclays Gov /Credit- Intermediate 0.30 0.30 5.24 5.90 4.66 5.93 Your Fixed Income -0.45 -0.45 6.20 5.48 4.82 5.73 sch1k:165d&5111tiUW lla, , 20 PALM BEACH GARDENS POLICE PENSION FUND REVIEW OF INTERNATIONAL EQCIITY FUNDS DECEMBER 31, 2009 Palm Beach Gardens Police Review of International Equity Funds December 31, 2009 1. Vanguard Global Equity (VHGEX) [0.58 %] December 31, 2009 MorningStar Rating: (out of 251 funds over 10- years) Comparative Index: World Stock ie. MSCI World September 30, 2009 MorningStar Rating: **, (out of 440 funds over 5- years) Comparative Index: World Stock ie. MSCI World 3 Month 1 Year 3 Year 5 Year Fund: 3.45% 32.98% -7.48% 1.82% Policy: 4.07% 29.99% -5.64% 2.01% Diff: -0.62% 2.99% -1.84% -0.19% Rating: n/a 47 78 66 September 30, 2009 MorningStar Rating: **, (out of 440 funds over 5- years) Comparative Index: World Stock ie. MSCI World Received a below average rating but optimistic review from Morningstar. There is long -term optimism due to good 10 -year and since - inception returns. No change recommended. www.vanguard.com 3 Month 1 Year 3 Year 5 Year Fund: 20.36% -2.31% -5.62% 4.07% Policy: 17.45% -2.29% -4.35% 3.51% Diff: 2.91% -0.02% -1.27% 0.56% Rating: n/a 66 72 56 Received a below average rating but optimistic review from Morningstar. There is long -term optimism due to good 10 -year and since - inception returns. No change recommended. www.vanguard.com 2. Vanguard International Growth Admiral Shares (VWILX) [0.34 %] December 31, 2009 MorningStar Rating: Comparative Index: 0 R A-4 4, Fund: 4.27% Policy: 2.18% Diff: 2.09% Rating: n/a September 30, 2009 MorningStar Rating: Comparative Index: *-4r* (out of 635 funds over 3- years) Foreign Large Blend ie. MSCI EAFE 1 Year 3 Year 41.88% -3.10% 31.78% -6.04% 10.10% 2.94% 9 17 '�( * ** (out of 600 funds over 3- years) Foreign Large Blend ie. MSCI EAFE 5 Year 5.75% 3.54% 2.21% 18 Received a good rating and review from Morningstar. The category is up 30% for the year through December 10, but the fund is turning in a top - decile performance and is topping its typical peer by 10 percentage points and the MSCI EAFE index by even more. Three solid subadvisors run the portfolio. www.vanquard.com 3 Month 1 Year 3 Year 5 Year Fund: 19.25% 4.55% -1.19% 7.74% Policy: 19.47% 3.23% -3.60% 6.07% Diff: -0.22% 1.32% 2.41% 1.67% Rating: n/a 23 17 19 Received a good rating and review from Morningstar. The category is up 30% for the year through December 10, but the fund is turning in a top - decile performance and is topping its typical peer by 10 percentage points and the MSCI EAFE index by even more. Three solid subadvisors run the portfolio. www.vanquard.com 3. Vanguard International Value (VTRIX) [0.47 %] December 31, 2009 MorningStar Rating: (out of 274 funds over 3- years) Comparative Index: Foreign Large Value ie. MSCI EAFE Value September 30, 2009 MorningStar Rating: ��� �", (out of 267 funds over 3- years) Comparative Index: Foreign Large Value ie. MSCI EAFE Value 3 Month 1 Year 3 Year 5 Year Fund: 1.79% 33.77% -4.25% 5.70% Policy: 0.28% 34.23% -7.35% 3.36% Diff: 1.51% -0.46% 3.10% 2.34% Rating: n/a 30 20 5 September 30, 2009 MorningStar Rating: ��� �", (out of 267 funds over 3- years) Comparative Index: Foreign Large Value ie. MSCI EAFE Value Good rating and review from Morningstar. Consists of four subadvisors that employ sound, value oriented styles that complement each other. No change recommended. www.van.guard.com 3 Month 1 Year 3 Year 5 Year Fund: 20.75% 4.46% -1.74% 7.97% Policy: 22.13% 7.35% -4.08% 6.32% Diff : -1.38% -2.89% 2.34% 1.65% Rating: n/a 29 19 10 Good rating and review from Morningstar. Consists of four subadvisors that employ sound, value oriented styles that complement each other. No change recommended. www.van.guard.com Asset Allocation Analysis Asset Allocation Analysis Scenario Assumptions January 24, 2010 Palm Beach Gardens Police j Default Scenario Asset Class Proxy Return Risk Yield Cash Equivalents FED 3 -Mo T -Bill (S) 2.25% 2.00% 2.25% Inter-Term Govt Bond CITI Treas/Agy 1 -10y 5.00 6.00 5.00 Municipal Bonds BarCap MunicipalBond 3.85 8.00 3.85 Corporate Bonds BarCap Credit Bond 5.75 8.00 5.75 High Yield Bonds BarCap High Yield 8.25 15.00 8.50 Large Value Stocks WILS US LgCap V 9.50 13.25 2.40 Large Growth Stocks WILS US LgCap G 10.15 15.25 1.65 Small Value Stocks WILS US SmCap V 10.65 18.50 2.25 Small Growth Stocks WILS US SmCap G 11.25 22.00 1.50 Mid Cap Stocks S &P 400 MidCap 10.00 18.00 2.00 Real Estate Wilshire RESI 7.65 13.50 3.65 Venture Capital CAMB US Venture Cap 11.75 35.25 0.00 International Stocks MSCI EAFE Index -$ 10.65 22.25 1.75 International Bonds CITI World Bnd -All $ 5.75 13.25 5.75 Emerging Equities MSCI Emerg Free -S 10.75 40.25 0.75 Inflation 2.50 Asset Allocation Analysis Scenario Assumptions January 24, 2010 Palm Beach Gardens Police Default Scenario Return l� Small Value Stocks • Small Growth Stocks i O International Stocks Large Growth StocksO 0 Mid Cap Stocks enter Caj�ilal Large Value Stocks* 9 Emerging Equitie S • High Yield Bonds Real Estate* 7 — Corporate Bonds 6 1 • International Bonds 5 • Inter -Term Govt Bond 4 • Municipal Bonds 3 • Cash Equivalents 1 0 5 10 15 20 25 30 35 40 45 Risk (Std Deviation) 2 Asset Allocation Analysis Scenario Correlation Matrix January 24, 2010 Palm Beach Gardens Police 3 Default Scenario Asset Class (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (1) Cash Equivalents 1.00 0.14 0.01 0.09 0.07 0.19 0.14 0.07 0.10 0.13 0.01 (2) Inter -Term Govt Bond 0.14 1.00 0.73 0.91 0.21 -0.08 -0.05 -0.17 -0.22 -0.02 0.06 (3) Municipal Bonds 0.01 0.73 1.00 0.73 0.25 0.09 0.12 0.01 -0.03 0.13 0.14 (4) Corporate Bonds 0.09 0.91 0.73 1.00 0.29 0.08 0.11 -0.02 -0.07 0.13 0.15 (5) High Yield Bonds 0.07 0.21 0.25 0.29 1.00 0.47 0.48 0.38 0.36 0.46 0.29 (6) Large Value Stocks 0.19 -0.08 0.09 0.08 0.47 1.00 0.95 0.83 0.82 0.90 0.52 (7) Large Growth Stocks 0.14 -0.05 0.12 0.11 0.48 0.95 1.00 0.82 0.81 0.89 0.52 (8) Small Value Stocks 0.07 -0.17 0.01 -0.02 0.38 0.83 0.82 1.00 0.72 0.77 0.44 (9) Small Growth Stocks 0.10 -0.22 -0.03 -0.07 0.36 0.82 0.81 0.72 1.00 0.76 0.43 (10) Mid Cap Stocks 0.13 -0.02 0.13 0.13 0.46 0.90 0.89 0.77 0.76 1.00 0.50 (1 1) Real Estate 0.01 0.06 0.14 0.15 0.29 0.52 0.52 0.44 0.43 0.50 1.00 (12) Venture Capital 0.06 -0.25 -0.13 -0.17 0.15 0.43 0.41 0.39 0.39 0.38 0.20 (13) International Stocks 0.06 0.00 0.10 0.10 0.30 0.58 0.58 0.50 0.49 0.55 0.32 (14) International Bonds 0.03 0.60 0.45 0.56 0.09 -0.13 -0.11 -0.17 -0.20 -0.09 0.00 (15) Emerging Equities 0.08 -0.20 -0.05 -0.09 0.28 0.64 0.63 0.57 0.57 0.59 0.33 3 Asset Allocation Analysis Scenario Correlation Matrix January 24, 2010 Palm Beach Gardens Police n Default Scenario Asset Class (12) (13) (14) (15) (1) Cash Equivalents 0.06 0.06 0.03 0.08 (2) Inter -Term Govt Bond -0.25 0.00 0.60 -0.20 (3) Municipal Bonds -0.13 0.10 0.45 -0.05 (4) Corporate Bonds -0.17 0.10 0.56 -0.09 (5) High Yield Bonds 0.15 0.30 0.09 0.28 (6) Large Value Stocks 0.43 0.58 -0.13 0.64 (7) Large Growth Stocks 0.41 0.58 -0.11 0.63 (8) Small Value Stocks 0.39 0.50 -0.17 0.57 (9) Small Growth Stocks 0.39 0.49 -0.20 0.57 (10) Mid Cap Stocks 0.38 0.55 -0.09 0.59 (I I ) Real Estate 0.20 0.32 0.00 0.33 (12) Venture Capital 1.00 0.24 -0.19 0.32 (13) International Stocks 0.24 1.00 -0.05 0.38 (14) International Bonds -0.19 -0.05 1.00 -0.18 (15) Emerging Equities 0.32 0.38 -0.18 1.00 n Asset Allocation Analysis Asset Allocation Analysis Investment Alternatives January 24, 2010 Palm Beach Gardens Police Asset Class Policy 15 %Intl I O %Bond R.E. . Venture Cash Equivalents 0.00% 0.00% 0.00% 0.00% 0.000/0 Inter -Term Govt Bond 14.00 14.00 10.00 14.00 14.00 Municipal Bonds 0.00 0.00 0.00 0.00 0.00 Corporate Bonds 21.00 21.00 15.00 21.00 21.00 High Yield Bonds 0.00 0.00 0.00 0.00 0.00 Large Value Stocks 12.50 10.00 12.50 7.50 10.00 Large Growth Stocks 22.50 20.00 22.50 17.50 20.00 Small Value Stocks 5.00 5.00 5.00 5.00 5.00 Small Growth Stocks 5.00 5.00 5.00 5.00 5.00 Mid Cap Stocks 10.00 10.00 10.00 10.00 10.00 Real Estate 0.00 0.00 0.00 10.00 0.00 Venture Capital 0.00 0.00 0.00 0.00 5.00 International Stocks 10.00 15.00 10.00 10.00 10.00 International Bonds 0.00 0.00 10.00 0.00 0.00 Emerging Equities 0.00 0.00 0.00 0.00 0.00 Return 8.54% 8.58% 8.57% 8.32% 8.63% Std Deviation 10.28% 10.44% 10.16% 9.73% 10.35% Yield 3.14% 3.13% 3.17% 3.30% 3.04% Sharpe Ratio 0.59 0.58 0.60 0.60 0.59 6 Asset Allocation Analysis Target Returns January 24, 2010 Palm Beach Gardens Police Probability of Exceeding Target Return Year 10 Year 20 Year 25 Year 30 Year 40 Target Return 7.00% Policy 62.88% 67.89% 69.83% 71.54% 74.45% 15 %Intl 62.99 68.04 69.99 71.71 74.63 10 %Bond 63.49 68.72 70.73 72.49 75.49 R.E. 61.46 65.98 67.75 69.31 71.99 Venture 63.83 69.16 71.21 73.00 76.05 Target Return 7.50% Policy 56.85 59.64 60.75 61.75 63.50 15 %Intl 57.06 59.93 61.07 62.09 63.89 10 %Bond 57.42 60.44 61.63 62.71 64.59 R.E. 55.05 57.12 57.95 58.69 60.01 Venture 57.88 61.07 62.34 63.47 65.46 Target Return 8.00% Policy 50.69 50.97 51.09 51.19 51.37 15 %Intl 50.99 51.40 51.57 51.72 51.98 10 %Bond 51.20 51.70 51.90 52.08 52.40 R.E. 48.53 47.92 47.67 47.45 47.06 Venture 51.78 52.51 52.81 53.08 53.55 7 Asset Allocation Analysis The Efficient Frontier January 24, 2010 Palm Beach Gardens Police The Efficient Frontier traces out the portfolios that offer the greatest amount of return for given levels of risk. All portfolios on the frontier are efficient and selection of the proper portfolio depends upon the investor's goals and tolerance for risk. The diagram below illustrates the concept of efficiency. The "Inefficient Portfolio" does not lie on the frontier because an alternate portfolio can be found that offers more return for the same amount of risk. A second portfolio can be found that offers the same return, but less risk. Both of these "efficient" portfolios are more desirable to investors trying to maximize return and minimize risk. High 1 Expected Return Low Some Risk, More Return / 1 Frontier Inefficient ~� Portfolio o Same Return. Less Risk Low Risk - High When calculating the efficient frontier, multiple factors are considered: • Market expectations for return, risk and correlation of assets • Constraints limiting investment in particular asset classes • Your tax rates Portfolio optimization is a mathematical technique for finding the portfolios that lie along the efficient frontier. These ideas were developed by Dr. Harry Markowitz and earned him a Nobel Prize in Economics in 1990. These theories are collectively known as Modem Portfolio Theory. 8 Asset Allocation Analysis Importance of Asset Allocation January 24, 2010 Palm Beach Gardens Police Asset allocation policy is the main determinant of total return. Market Timing, Security Selection & Other Factors 8.5% A 1991 study by Brinson, Singer and Beebower investigated the determinants of portfolio performance.' By studying the quarterly returns of 82 pension plans over a 10 -year period. they concluded that: • The selection which asset classes to invest in and how much to invest in each explained 91.5% of the variation in the plan's returns. • Market timing, security selection and other factors combined accounted for only 8.5% of the differences in return,. Brinson, G.P., Singer, B.D. and G.L. Beebower. "Determinants of Portfolio Pcrtonnancc 11: An Update". Financial Analysts Journal, May -June 1941 9 COMPLEXITY DEFENSIVE CONSISTENT DIVERSIFICATION QUANTITATIVE VOLATILITY DURATION GROWTH ACTIVE ROTATION STRATEGY INNOVATION DISCIPLINE RISK CONTROL YIELD BENCHMARK P/F RATIO j C C CAPITAL GLOBALIZATi ASSET ALLO, PERFORMAN STABILITY INTEGRITY SECTOR MARKETS SECURITIES PALM BEACH GARDENS POLICE PENSION FUND Investment Review Quarter Ending December 31, 2009 PALM BEACH GARDENS POLICE PENSION FUND Table of Contents Quarter Ending December 31, 2009 ICC Capital Ma►iagemerit, laic. PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME Investment Review Quarter Ending December 31, 2009 IICC Capita[ Managentent, Inc. PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME Investment Performance Report Quarter Ending December 31, 2009 Total Return Summary Page...... 1 Portfolio Allocation Page...... 2 Investment Performance by Asset Category Page...... 3 Fixed - Income Analysis Page...... 4 Purchases & Sales Page...... 8 Realized Gains/ Losses Page...... 12 Portfolio Summary Page...... 15 Portfolio Appraisal Page...... 16 ICC Capital Management, Inc. PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME Total Return Summary Quarter Ending December 31, 2009 Starting Value Ending Value Difference Net Contributions/ (Withdrawals) I GaitV(Loss) from Investments $12,695,048 $13,085,187 $390,139 $447,288 TOTAL RETURN 1 -0.46% ANNUALIZED TOTAL RETURN I lCC Capital Management, Inc. 1 $11,959,556 $6,868,976 $13,085,187 $13,085,187 $1,125,631 $6,216,211 $515,218 $3,991,047 $610,412 $2,227,788 5.23% 1 23.09% 4.24% PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME Portfolio Allocation at Market Quarter Ending December 31, 2009 Market Value as of 09/30/09 Market Value as of 12,131109 Cash/E uivs Fixed (Total ■ ICC Capital Man t, I ► ►c. Asset Allocation: 0/100 (Mkt) CASH /EQUIVS 13.1% CASH/ EQUIVS 11.3% FIXED INCOME 86.9% Mkt Value as of 09/30/0 $1,658,773 $11,036,275 $12,695,048 Mkt Value as of 09/30/09 13.1% 86.9% 100.0% I FIXED INCOME 88.7% Mkt Value as of 12,/31/0 $1,473,451 $11,611,736 $13,085,187 Mkt Value as of 12/31/09 11.3% 88.7% 100.0% PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME Investment Performance by Asset Category Quarter Ending December 31, 2009 Quarter 4.00 2.00 0.00 -2.00 -4.00 ­ One Year 12.00 9.00 6.00 3.00 0.00— ■ ACCOUNT ■ BCAG 0.20 0.20 -0.43 -0.46 BONDS TOTAL ■ ACCOUNT ■ BCAG 6.27 5.93 r% 71 5.93 Five Years Annualized 12.00 9.00- 6.00 3.00 0.00 BONDS TOTAL ■ ACCOUNT ■ BCAG BONDS TOTAL The red total bar represents the Barclays Capital Aggregate Index. I ICC Capital Management, Inc. 3 PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME Fixed Income Analysis (Page 1 of 4) Quarter Ending December 31, 2009 Average Quality — AA- Average Duration 4.12 Current Yield 5.15 ICC Core Fixed Income Po olio Federal Agencii 14.2% US Treasuries 2.9% Mortgage Pools 25.6% Corporate Bonds 47.6% Municipal Bonds 9.7% Average Quality AA Average Duration — 5.23 Current Yield 4.11 Barclaits Capital GovernmenVCredit Index Government Sponsored 22.1% Corporate Bonds 31.5% US Treasuries 46.4% Average Quality — AA Average Duration — 4.57 Current Yield — 4.52 Barclays Capital Aggregate Index US MSS 36.8% US Treasuries 27.6% ABS CMBS Corporate Bonds 0.4% °h 3.2% 18.8 I ICC Capital Management, Inc. 4 Government Sponsored 13.2% PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME Fixed Income Analysis (Page 2 of 4) Quarter Ending December 31, 2009 3.27 1.35 1.34 2.00 0.57 0.20 �- 0.00 -0.19 -0.21 -0.46 -2.00 -1.30 r � -� 0, �� � �� f(' .00 Gs cQ os � 9�s c L s T rds4 P��P rdfP �S ��fd/ pfd/ r�PS j�s'ab O' Munici al Bonds Cou on Universi Of California 6.270 5.757% Universi N C Univ Revs Penns Ivania St T k Commn Oil Francl 5..86458% Commonwealth Fin Auth Pa Rev Metro olitan Trans ortation Authori 138% Chica o Ill Brd Ed 4 554% Utah St Kentuck St P & Bld s Commn ltev, 6.164% Mort a e Backed Securities Cou on Gnsf 5.5% Pool #714005 .500 5 5.500% F hnc #g0226-8 6.500 % Fncl # 256394 5.500 5% G2 Pool #4194 G2 Pool# 4195 .000% 6.000% Gnsf M #552509 4.500 % F ci # 12205 4.500% Fnci N #725445 5.500% Fnci M #254371 4.000% Fnci N #255888 4.000°/0 Fnci N #825335 4.000% Fnci N #829053 6.000 % Gri o M #781313 6.000% Gnsf M #582153 4.500% F ci N #b13455 4.500% Feci N #112323 Maturi 5 15 2031 12 1 2039 12 1 2037 6 1 2024 11 15 203'. 12 1 2039 7 1 2024 8/1/2023 Maturi 10 15 2039 _N112036 2036 9 1 2036 7 20 2038 7 20 2038 4 15 2032 _L L2021 2021 5 1 2019 7 1 2017 8/1/2020 8/ 1 7 15 2016 6 15 2032 ILL ILLI 2019 8/1/2021 lCC Capital Management, Inc. 5 S&P Rath AA AA+ AA AA- A AA- AAA A+ S&P Rati AAA AAA AAA AAA AAA AAA AAA AAA AAA AAA AAA AAA AAA AAA Moody's Ratin AA1 AA1 Al Al A2 Al AAA Aa3 Moody' Rati Aaa Aaa Aaa AAA Aaa Aaa Aaa. Aaa Aaa Aaa Aaa Aaa Aaa Aaa Aaa. Aaa PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME Fixed Income Analysis (Page 3 of 4) Quarter Ending December 31, 2009 GovernmentlAgency Bonds Coupon Maturity S &P Rating Mood 's Rating Freddie Mac 4.000% 9/30/2016 AAA AAA Freddie Mac 5.900% 6/15/202-2 AAA AAA Fannie Mae 5.625% 11/15/2021 AAA AAA Fannie Mae 6.000% 4/28/2021 AAA AAA Freddie Mac 3.375% 8/18/2014 AAA AAA Fhlmc 3.000% 6/25/2013 AAA AAA Fannie Mae 3.200% 8/5/2014 AAA Aaa Freddie Mac 5.000% 12/30/2024 AAA AAA Us Treasury N b 4.500% 8/15/2039 AAA AAA Corporate Bonds Coupon Maturity S &P Rating Mood 's Rating mor an Chase & Co 7.875% 6/15/2010 A+ Al McDonald's Corp 5.800% 10/15/2017 A A3 At &T Inc 5.625% 6/15/2016 A A2 At &T Inc 4.950% 1/15/2013 A A2 Golden West Finl 4.750% 10/l/2012 A+ Al Citigroup Inc 6.010% 1/15/2015 A A3 Citigroup Inc 5.300% 10/17/2012 A A3 Novant Health Inc 5.850% 11/l/2019 A+ Al Morgan Stanley 5.625% 9/23/2019 A A2 McDonald's Corp 5.300% 3/15/2017 A A3 Bank Of America Corp 6.500% 8/l/2016 A A2 Goldman Sachs Group Inc 6.000% 5/l/2014 A Al Morgan Stanley 2.000% 9/22/2011 AAA AAA National Rural Util Coop 5.500% 7/l/2013 A+ Al IBM Corp 6.500% 10/15/2013 A+ Al Procter & Gamble Co 4.600% 1/15/2014 AA- Aa3 New York Community Bank 3.000% 12/16/2011 AAA Aaa Key Bank Na 3.200% 6/15/2012 AAA Aaa Pnc Funding Corp 2.300% 6/22/2012 AAA Aaa Baker Hughes Inc 6.500% 11/15/2013 A A2 Hone well International 3.875% 2/15/2014 A A2 General Dynamics Corp 5.250% 2/l/2014 A A2 Johns Hopkins University 5.250% 7/l/2019 AA AA2 Cisco Systems Inc 4.950% 2/15/2019 A+ Al Conoco hilli s 6.000% 1/15/2020 A Al Hewlett- Packard Co 4.250% 2/24/2012 A A2 Amgen Inc 5.700% 2/l/2019 A+ A3 Morgan Stanley 6.000% 5/13/2014 A A2 Coca -Cola Co 3.625% 3/15/2014 A+ AA3 Verizon Communications 5.500% 4/l/2017 A A3 Chevron Corp 4.950% 3/3/2019 AA AA1 Cons Edison Co Of Ny 5.850% 4/l/2018 A- A3 Boeing Co 4.875% 2/15/2020 A+ A2 General Elec Cap Corp 5.500% 6/4/2014 AA+ AA2 National Rural Util Coop 5.450% 4/10/2017 A+ Al Goldman Sachs 5.250% 10/15/2013 AA- Al Goldman Sachs 5.125% 1/15/2015 AA- Al Bear Stearns - jp Morgan 5.700% 11/15/2014 AA- AA3 ICC Capital Manage ment, Inc. PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME Fixed Income Analysis (Page 4 of 4) Quarter Ending December 31, 2009 Portfolio Duration vs Index Duration (Ratio) 1.8% 1.4% NEUTRAL 1.0% 0.6% DEFENSIVE F----+— NDEX --W— ACCT AGGRESSIVE 0.2% i 12/31/2007 3/31/2008 6/30/2008 9/30/2008 12/31/2008 3/31/2009 6/30/2009 9/30/2009 12/31/2009 ICC Capital Management, hzc. 7 ICC Capital Management PURCHASE AND SALE PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME From 09 -30 -09 To 12 -31 -09 Trade Settle Unit Security Date Date Quantity y Price Amount PURC13ASE5 11 -13 -09 11 -18 -09 165,000.000 CITIGROUP INC 104.77 172,875.45 255,000.00 11 -18 -09 5.300% Due 10 -17 -12 101.78 173,031.10 12 -03 -09 12 -15 -09 170,000.000 CITIGROUP INC 1.250% Due 09 -29 -11 - 10 -16 -09 6.010% Due 01 -15 -15 140,000 COMMONWEALTH FIN G AUTH 100.00 140,000.00 11-o4_09 11 -12 -09 4.375% Due 09 -21 -15 11 -12 -09 PA REV 225,000.000 GLAXOSMTT14KLINE CAP INC 106.33 ?.39,238.00 5.653% Due 06 -01 -24 1 00.00 100,000.00 12 -16 -09 12 -30 -09 100,000.000 FREDDIE MAC 145,000.000 PRAXAIR INC 106.84 154,912.20 5.000% Due 12 -30 -24 l Oti.12 392,318.05 12 -18 -09 12 -23 -09 369,675.430 G2 POOL #4194 5.500% Due 07 -20 -38 12 -03 -09 12 -21 -09 641,902.891 GNSF 5.5% POOL #714005 106.1 b 681,420.04 5.500% Due 10 -15 -39 100.00 125,000.00 10 -07 -09 10 -15 -09 125,000 METROPOLITAN TRANSPORTATION AUTHORITY 5.871% Due 11 -15 -39 11 -25 -09 12 -01 -09 150,000.000 MORGAN STANLEY 1O1.0U 151,495.50 10 -16 -09 10 -21 -09 5.625% Due 09 -23 -19 150,000 PENNSYLVANIA ST TPK COMMN 97.79 146,683.30 OIL FRANCHISE TAX REV 5.848% Due 12 -01 -37 11 -18 -09 12 -02 -09 160,000 UNIVERSITY N C UNIV REVS 100.00 160,000.00 5.757% Due 12 -01 -39 10 -07 -09 10 -15 -09 400,000.000 US TREASURY NB 99.98 399,937.50 10 -22 -09 10 -26 -09 1.375% Due 10 -15 -12 250,000.000 US TREASURY NB 104.36 260,898.44 4.500% Due 08 -15 -39 12 -01 -09 12 -03 -09 575,000.000 US TREASURY NB 104.59 601,414.06 4.500% Due 08 -15 -39 3,505,073.64 SALES 12 -14 -09 12 -14 -09 255,000.000 FANNIE MAE 100.00 255,000.00 11 -18 -09 11 -19 -09 5.500% Due 12 -14 -22 245,000.000 FEDERAL HOME LOAN BANK 100.04 245,098.00 1.250% Due 09 -29 -11 - 10 -16 -09 10 -21 -09 185,000.000 GENERAL ELEC CAP CORP 99.97 184,937.10 4.375% Due 09 -21 -15 11 -12 -09 11 -17 -09 225,000.000 GLAXOSMTT14KLINE CAP INC 106.33 ?.39,238.00 4.375% Due 04 -15 -14 11 -12 -09 11 -17 -09 145,000.000 PRAXAIR INC 106.84 154,912.20 4.375% Due 03 -31 -14 3 ,CC Capital Management PURCHASE AND SALE PALM BEACH GARDENS POLICE 09 To�3�� FU, VD FIXED COME From 0 9 30 E Unit Trade Settle Security Price Amount Date Date Quantity 103.09 190,723.44 11 -16 -09 11 -18 -09 185,000.000 4'SO�Du � Y15 -38 172,657.03 165,000.000 US TRo 104.64 11 -27 -09 12 -02 -09 Due 05Y15 -38 104.64 292,993.75 11 -27 -09 12 -02 -09 280,000.000 UST o Due 05Y15 -38 400,750.00 400,000.000 US TREASURY NB 100.19 11 -16 -09 11 -17 -09 1.375% Due 10 -15 -12 100.66 251,640.62 250,000.000 US TREASURY NB 12 -18 -09 12 -22 -09 4.500% Due 08 -15 -39 100.66 231,509.38 230,000.000 US TREASURY NB 12 -18 -09 12 -22 -09 4.500% Due 08 -15 -39 2,619,459.52 PRINCIPAL PAYDOWNS 100.00 2,200.88 10 -01 -09 10 -15 -09 2,200.880 FGCI #G12205 4.500% Due 06 -01 -21 2,181.03 2,181.030 FGCI #G12205 100.00 11 -01 -09 11 -15 -09 4.500% Due 06 -01 -21 100.00 2,276.20 12 -01 -09 12 -15 -09 2,276.200 FGCI #G 12205 4.500% Due 06 -01 -21 89.07 89.070 FGCI N #B13455 100.00 10 -01 -09 10 -15 -09 4.500% Due 04 -01 -19 100.00 93.24 11 -01 -09 11 -15 -09 93.240 FGCIN #B13455 4.500% Due 04 -01 -19 56.54 56.540 FGCI N #B 13455 100.00 12 -01 -09 12 -15 -09 4.500% Due 04 -01 -19 100.00 94.97 10 -01 -09 10 -15 -09 94.970 FGCI N #G12323 4.500% Due 08 -01 -21 111.27 111.270 FGCI N 4G 12323 100.00 11 -01 -09 11 -15 -09 4.500% Due 08 -01 -21 100.00 154.62 12 -01 -09 12 -15 -09 154.620 FGCI N 4G 1232' ) 4.500% Due 08 -01 -21 2,502.76 2,502.760 FGLMC #G02268 100.00 10 -01 -09 10 -15 -09 6.500% Due 08 -01 -36 100.00 8,540.23 10 -01 -09 10 -15 -09 8,540.230 FGLMC 4G02268 6.500% Due 08 -01 -36 2,362.95 2,362.948 FGLMC #G02268 100.00 11 -01 -09 11-15-09 6.500% Due 08 -01 -36 100.00 8,063.12 11 -01 -09 11 -15 -09 8,063.122 FGLMC #G02268 6.500% Due 08 -01 -36 2,700.71 2,700.714 FGLMC #G02268 100.00 12 -01 -09 12 -15 -09 6.500% Due 08 -01 -36 E ICC Capital Management PURCHASE AND SALE PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME From 09 -30 -09 To 12 -31 -09 Trade Date Settle Date Quantity Security Unit Price Amount 12 -01 -09 12 -15 -09 9,215.686 FGLMC #G02268 100.00 9,215.69 6.500% Due 08 -01 -36 10 -01 -09 10 -15 -09 1,965.150 FNCI M #254371 100.00 1,965.15 5.500% Due 07 -01 -17 11 -01 -09 11 -15 -09 2,265.750 FNCI M 4254371 100.00 2_2 65.75 5.500% Due 07 -01 -17 12 -01 -09 12 -15 -09 1,167.710 FNCIM #254371 100.00 1,167.71 5.500% Due 07 -01 -17 10 -01 -09 10 -15 -09 2,039.050 FNCI N #255888 100.00 2,039.05 4.000% Due 08 -01 -20 11 -01 -09 11 -15 -09 304.910 FNCI N #255888 100.00 304.91 4.000% Due 08 -01 -20 12 -01 -09 12 -15 -09 303.120 FNCI N #255888 100.00 303.12 4.000% Due 08 -01 -20 10 -01 -09 10 -15 -09 45.341 FNCI N #725445 100.00 45.34 4.500% Due 05 -01 -19 10 -01 -09 10 -15 -09 1,460.659 FNCI N #725445 100.00 1,460.66 4.500% Due 05 -01 -19 11 -01 -09 11 -15 -09 39.926 FNCI N #725445 100.01 39.93 4.500% Due 05 -01 -19 11 -01 -09 11 -15 -09 1,286.214 FNCI N #725445 1 00.00 1,286.21 4.500% Due 05 -01 -19 12 -01 -09 12 -15 -09 45.486 FNCI N #725445 100.01 45.49 4.500% Due 05 -01 -19 12 -01 -09 12 -15 -09 1,465.344 FNCI N #725445 100.00 1,465.34 4.500% Due 05 -01 -19 10 -01 -09 10 -15 -09 359.120 FNCI N #825335 100.00 359.12 4.000% Due 05 -01 -20 11-01-09 11 -15 -09 360.470 FNCI N #825335 100.00 360.47 4.000% Due 05 -01 -20 12 -01 -09 12 -15 -09 361.590 FNCI N #825335 100.00 361.59 4.000% Due 05 -01 -20 10 -01 -09 10 -15 -09 350.250 FNCI N #829053 100.00 350.25 4.000% Due 08 -01 -20 11 -01 -09 11 -15 -09 644.490 FNCI N #829053 100.00 644.49 4.000% Due 08 -01 -20 12 -01 -09 12 -15 -09 488.590 FNCI N #829053 100.00 488.59 4.000% Due 08 -01 -20 10 -01 -09 10 -15 -09 11,925.540 FNCL # 256394 100.00 11,925.54 6.500% Due 09 -01 -36 11-01-09 11-15-09 9,646.720 FNCL 4 256394 100.00 9,646.72 6.500% Due 09 -01 -36 12 -01 -09 12 -15 -09 6,946.200 FNCL # 256394 100.00 6,946.20 6.500% Due 09 -0 1 -36 10 ICC Capital Management PURCHASE AND SALE PALM BEACH GARDENS POLICE PENSION FUND FIND INCOME From 09 -30 -09 To 12 -31 -09 Trade Settle Unit Date Date Quantity Security Price 10 -01 -09 10 -01 -09 6,516.160 G2 POOL# 4195 100.00 6.000% Due 07 -20 -38 11 -01 -09 11 -01 -09 7,855.070 G2 POOL# 4195 100.00 6.000% Due 07 -20 -38 12 -01 -09 12 -01 -09 7,108.550 G2 POOL# 4195 100.00 6.000% Due 07 -20 -38 10 -01 -09 10 -15 -09 818.830 GNJO M #781313 100.00 6.000% Due 07 -15 -16 11 -01 -09 11-15-09 747.630 GNJO M #781313 100.00 6.000% Due 07 -15 -16 12 -01 -09 12 -15 -09 692.520 GNJO M #781313 100.00 6.000% Due 07 -15 -16 10 -01 -09 10 -15 -09 303.690 GNSF M #552509 100.00 6.000% Due 04 -15 -32 11-01-09 11 -15 -09 298.920 GNSF M #552509 100.00 6.000% Due 04 -15 -32 12 -01 -09 12-15 -09 2,116.910 GNSF M #552509 100.00 6.000% Due 04 -15 -32 10 -01 -09 10 -15 -09 1,927.020 GNSF M #582153 100.00 6.000% Due 06 -15 -32 11-01-09 11-15-09 62.330 GNSF M #582153 100.00 6.000% Due 06 -15 -32 12 -01 -09 12 -15 -09 61.210 GNSF M #582153 100.00 6.000% Due 06 -15 -32 6,516.16 7,855.07 7,108.55 818.83 747.63 692.53 303.69 298.92 2,1 16.91 1,927.02 62.33 61.21 11L,VLJ. /.J ICC Capital Management REALIZED GAINS AND LOSSES PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME From 09 -30 -09 Through 12 -31 -09 Gain Or Loss Open Date Close Date Quantity Security Cost Basis Proceeds Short Term Long Term 12 -15 -06 10 -01 -09 2,502.760 FGLMC #G02268 2,554.77 2,502.76 -52.01 6.500% Due 08 -01 -36 01 -08 -07 10 -01 -09 8,540.230 FGLMC #G02268 8,71771 8,540.23 - 177.48 6.500% Due 08 -01 -36 02 -21 -07 10 -01 -09 2,200.880 FGCI #G12205 2,123.51 2,200.83 77.37 4.500% Due 06 -01 -21 08 -24-06 10 -01 -09 94.970 FGCI N #G12323 91.05 94.97 3.92 4.500% Due 08 -01 -21 09 -08 -04 10 -01 -09 89.070 FGCI N 913 13455 88.81 89.07 0.26 4.500% Due 04 -01 -19 05 -23 -02 10 -01 -09 1,965.150 FNCI M #254371 1,956.55 1,965.15 8.60 5.500% Due 07 -01 -17 09 -08 -05 10 -01 -09 2,039.050 FNCI N #255888 1,984.25 2,039.05 54.80 4.000% Due 08 -01 -20 01 -08 -07 10 -01 -09 11,925.540 FNCL # 256394 12,164.05 11,925.54 - 238.51 6.500% Due 09 -01 -36 09 -15-04 10 -01 -09 45.341 FNCI N #725445 45.38 45.34 -0.04 4.500% Due 05 -01 -19 01 -29 -07 10 -01 -09 1,460.659 FNCI N #725445 1,401.78 1,460.66 58.88 4.500% Due 05 -01 -19 09 -08 -05 10 -01 -09 359.120 FNCI N #825335 349.47 359.12 9.65 4.000% Due 05 -01 -20 08 -23 -05 10 -01 -09 350.250 FNCI N #829053 339.74 350.25 10.51 4.000% Due 08 -01 -20 06 -13 -02 10 -01 -09 1,927.020 GNSF M #582153 1,923.71 1,927.02 3.31 6.000% Due 06 -15 -32 07 -22 -08 10 -01 -09 6,516.160 G2 POOL# 4195 6,509.03 6,516.16 7.13 6.000% Due 07 -20 -38 04 -15 -02 10 -01 -09 303.690 GNSF M #552509 299.94 303.69 3.75 6.000% Due 04 -15 -32 07 -02 -02 10 -01 -09 818.830 GNJO M #781313 844.42 818.83 -25.59 6.000% Due 07 -15 -16 09 -16 -09 10 -16 -09 185,000.000 GENERAL ELEC CAP 184,363.60 184,937.10 573.50 CORP 4.375% Due 09 -21 -15 12 -15 -06 11 -01 -09 2,362.948 FGLMC #G02268 2,412.06 2,362.95 -49.11 6.500% Due 08 -01 -36 01 -08 -07 11 -01 -09 8,063.122 FGLMC 4G02268 8,230.69 8,063.12 - 167.57 6.500% Due 08 -01 -36 02 -21 -07 11 -01 -09 2,181.030 FGC1 #G12205 2,104.35 2,181.03 76.68 4.500% Due 06 -01 -21 08 -24 -06 11 -01 -09 111.270 FGCI N #G 12323 106.68 111.27 4.59 4.500% Due 08 -01 -21 09 -08 -04 11 -01 -09 93.240 FGCI N #B 13455 92.97 93.24 0,27 4.500% Due 04 -01 -19 05 -23 -02 11 -01 -09 2,265.750 FNC1M #254371 2,255.84 2,265.75 9.91 5.500% Due 07 -01 -17 09 -08 -05 11 -01 -09 304.910 FNCI N #255888 296.72 304.91 8.19 4.000% Due 08 -01 -20 01 -08 -07 11 -01 -09 9,646.720 FNC1. # 256394 9,839.66 9,646.72 - 192.94 6 500% Due 09 -01 -36 09 -15 -04 11 -01 -09 39.926 FNCI N #725445 39.96 39.93 -0.03 4.500% Due 05 -01 -19 01 -29 -07 11 -01 -09 1,286.214 FNCI N #725445 1,234.36 1,286.21 51.85 4.5000/a Due 05 -01 -19 12 ICC Capital Management REALIZED GAINS AND LOSSES PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME From 09 -30 -09 Through 11 -31 -09 13 Gain Or Loss Open Close Cost Date Date Quantity Security Basis Proceeds Short Term Long Term 09 -08 -05 11 -01 -09 360.470 FNCI N #825335 350.78 360.47 9.69 4.000% Due 05 -01 -20 08 -23 -05 11 -01 -09 644.490 FNC1 N #829053 625.16 644.49 19.33 4.000% Due 08 -0 1 -20 06 -13 -02 11 -01 -09 62.330 GNSF M #582153 62.2_ -1 62.33 0.11 6.000% Due 06 -15 -32 07 -22 -08 11 -01 -09 7,855.070 G2 POOL# 4195 7,846.47 7,855.07 8.60 6.000% Due 07 -20 -38 04 -15 -02 11 -01 -09 298.920 GNSF M 4552509 295.23 298.92 3.69 6.000% Due 04 -15 -32 07 -02 -02 11 -01 -09 747.630 GNJO M #781313 770.99 747.63 -23.36 6.000% Due 07 -15 -16 03 -05 -08 11 -12 -09 225,000.000 GLAXOSMII IKLINE CAP 224,669.25 239,238.00 14,568.75 94C 4.375% Due 04 -15 -14 03 -23 -09 11 -12 -09 145,000.000 PRAXAIR INC 144,541.80 154,912.20 10,370.40 4.375% Due 03 -31 -14 10 -07 -09 11 -16 -09 400,000.000 US TREASURY N/B 399,937.50 400,750.00 812.50 1.375% Due 10 -15 -12 01 -22 -09 11 -16 -09 185,000.000 US TREASURY 228,480.55 190,723.44 - 37,757.11 4.500% Due 05 -15 -38 09 -11 -09 11 -18 -09 245,000.000 FEDERAL HOME LOAM 245,000.00 245,098.00 98.00 BANK 1.250% Due 09 -29 -11 01 -22 -09 11 -27 -09 165,000.000 US TREASURY 203,779.95 172,657.03 - 31,122.92 4.500% Due 05 -15 -38 01 -07-09 11 -27 -09 280,000.000 US TREASURY 356,781.25 292,993.75 - 63,787.50 4.500% Due 05 -15 -38 12 -15 -06 12 -01 -09 2,700.714 FGLMC #002268 2,756.84 2,700.71 -56.13 6.500% Due 08 -01 -36 01 -08 -07 12.01 -09 9,215.686 FGLMC #G02268 9,407.20 9,215.69 - 191.51 6.5000W Due 08 -01 -36 02 -21 -07 12 -01 -09 2,276.200 FGCI #G12205 2,196.18 2,276.20 80.02 4.500% Due 06 -01 -21 08 -24 -06 12 -01 -09 154.620 FGCi N #G12323 148.24 154.62 6.38 4.500% Due 08 -01 -21 09 -08 -04 12 -01-09 56.540 FGCI N #B 13455 56.37 56.54 0.17 4.500% Due 04-01 -19 05 -23 -02 12 -01-09 1,167.710 FNCI M #254371 1,162.60 1,167.71 5.11 5.500 % Due 07 -01 -17 09 -08 -05 12 -01 -09 303.120 FNCI N #255888 294.97 303.12 8.15 4.000% Due 08 -01 -20 01 -08 -07 12 -01 -09 6,946.200 FNCL # 256394 7,085.13 6,946.20 - 138.93 6.500% Due 09-01-36 09 -15 -04 12 -01 -09 45.486 FNCI N #725445 45.52 45.49 -0.03 4.500% Due 05 -01 -19 01 -29 -07 12 -01 -09 1,465.344 FNCI N #725445 1,406.27 1,465.34 59.07 4.500% Due 05 -01 -19 09 -08 -05 12 -01 -09 361.590 FNCI N 4825335 351.87 361.59 9.72 4.000% Due 05 -01 -20 08 23 -05 12 -01 -09 488.590 FNCI N #829053 473.93 488.59 1,160 4.000% Due 08 -01 -20 06 -13 -02 12 -01 -09 61.210 GNSF M #582153 61.10 61.21 0.11 6.000% Due 06 -15 -32 13 ICC Capital Management REALIZED GAINS AND LOSSES PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME From 09 -30 -09 Through 12 -31 -09 Open Close Gain Or Loss Short Term Long Term Date Date Quantity Security 2,090.78 2,116.91 07 -22 -08 12 -01 -09 7,108.550 G2 POOL# 4195 -21.64 253,597.50 6.000% Due 07 -20 -38 04 -15 -02 12 -01 -09 2,116.910 GNSF M #552509 - 957.82 240,565.62 6.000% Due 04 -15 -32 07 -02 -02 12 -01 -09 692.520 GNJO M #781313 6.0001/6 Due 07 -15 -16 06 -05 -08 12 -14 -09 255,000.000 FANNIE MAE 5.500% Due 12 -14 -22 10 -22 -09 12 -18 -09 250,000.000 US TREASURY NB 4.500% Due 08 -15 -39 12 -01 -09 12 -18 -09 230,000.000 US TREASURY NB 4.500% Due 08 -15 -39 TOTAL GAINS TOTAL LOSSES TOTAL REALIZED GAINILOSS - 123,842.43 14 Cost Basis Proceeds Gain Or Loss Short Term Long Term 7,100.77 7,108.55 7.78 2,090.78 2,116.91 26.13 714.16 692.52 -21.64 253,597.50 255,000.00 1,402.50 260,398.44 251,640.62 - 957.82 240,565.62 231,509.38 - 9,056.24 11,854.40 16,619.64 - 150,981.59 - 1,334.88 2,855,925.70 2,732,083.27 - 139,127.19 15,284.76 ICC Capital Management PORTFOLIO SUMMARY PALM BEACH GARDENS POLICE PENSION FUND FMED INCOME December 31, 2009 Pct. Cur. Est.Annual Security Type Total Cost Market Value Assets Yield Income Cash & Equivalents CASH AND 1,473,450.53 EQUIVALENTS 1,473,450.53 Fixed Income 1,473,450.53 11.3 1,473,450.53 11.3 1,046.15 1,046.15 CORPORATE BONDS 5,217,759.20 5,467,740.60 41.8 5.0 272,704.50 MUNICIPAL BONDS 1,141,764.75 1,110,424.80 8.5 6.0 66,548.55 GOVERNMENT 360,848.44 337,183.75 2.6 4.6 15,525.00 BONDS MORTGAGE POOLS 2,855,022.91 2,942,805.78 22.5 5.5 161,501.40 GOVERNMENT 1,597,482.00 1,637,295.52 12.5 4.7 76,282.50 SPONSORED BOND Accrued Interest 116,285.83 0.9 11,172,877.29 11,611,736.27 88.7 5.2 592,561.95 TOTAL PORTFOLIO 12,646,327.82 13,085,186.80 100.0 4.6 593,608.10 15 ICC Capital Management PORTFOLIO APPRAISAL PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME December 31, 2009 Unit Total Market Pet. Cur. Quantity Security Cost Cost Price Value Assets Yield CASH AIND EQUIVALENTS CASH & CASH EQUIVALENTS 1,473,450.53 1,473,450.53 11.3 0.1 16 1,473,450.53 1,473,450.53 11.3 0.1 CORPORATE BONDS 230,000.000 JPMORGAN CHASE & 108.76 304,525.20 103.13 288,757.00 2.2 7.6 CO 7.875% Due 06 -15 -10 135,000.000 MORGAN STANLEY 99.91 134,879.35 10 1. 54 137,077.51 1.0 2.0 2.000% Due 09-22-11 125,000.000 NEW YORK 99.95 124,936.25 102.70 128,376.12 1.0 2.9 COMMUNITY BANK 3.000% Due 12 -16 -11 120,000.000 HEWLETT- PACKARD 99.96 119,94720 104.39 125,372.32 1.0 4.1 CO 4.250% Due 02 -24 -12 125,000.000 KEY BANK NA 99.90 124,881.25 103.80 129,748.12 1.0 3.1 3.200% Due 06 -15 -12 125,000.000 PNC FUNDING CORP 99.88 124,853.75 101.69 127,112.00 1.0 2.3 2.300 ° /a Due 06 -22 -12 200,000.000 GOLDEN WEST FINL 97.82 195,640.00 104.41 208,817.00 1.6 4.5 4.750% Due 10 -01 -12 165,000.000 CITIGROUP INC 104.77 172,875.45 104.17 171,887.59 1.3 5.1 5.300% Due 10 -17 -12 200,000.000 AT &T INC 100.30 200,592.00 106.69 213,376.00 1.6 4.6 4.950% Due 01 -15 -13 135,000.000 NATIONAL RURAL 99.84 134,789.40 108.24 146,124.40 1.1 5.1 UTIL COOP 5.500% Due 07 -01 -13 85,000.000 GOLDMAN SACHS 98.44 83,674.00 106.20 90,271.10 0.7 4.9 5.250% Due 10 -15 -13 135,000.000 IBM CORP 99.24 133,971.30 114.28 154,272.60 1.2 5.7 6.500% Due 10 -15 -13 125,000.000 BAKER HUGHES INC 99.76 124,702.50 112.88 141,096.75 1.1 5.8 6.500% Due 11 -15 -13 125,000.000 PROCTER & GAMBLE 99.98 124,972.50 106.48 133,097.00 1.0 4.3 CO 4.600% Due 01 -15- 14 125,000.000 GENERAL 99.53 124,410.00 108.80 135,996.00 1.0 4.8 DYNAMICS CORP 5.250% Due 02 -01 -14 125,000.000 HONEYWELL 99.56 124,452.50 104.18 130,22725 1.0 3.7 INTERNATIONAL 3.875% Due 02 -15 -14 120,000.000 COCA -COLA CO 9954 119,454.00 103.08 123,694.32 0.9 3.5 3.625% Due 03 -15 -14 130,000.000 GOLDMAN SACHS 103.81 134,958.20 109.38 142,189.84 1.1 5.5 GROUP INC 6.000% Due 05 -01 -14 120,000.000 MORGAN STANLEY 99.65 119,581.20 107.52 129,024.24 1.0 5.6 6.000% Due 05 -13 -14 100,000.000 GN.NERAL ELEC CAP 99.86 99,856.00 10596 105,957.90 0.8 5.2 CORP 5.500% Due 06 -04 -14 16 ICC Capital Management PORTFOLIO APPRAISAL PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME December 31, 2009 Quantity Security Unit Cost Total Cost Price Market Value Pet. Cur. Assets Yield 45,000.000 BEAR STEARNS - JP 97.40 43,329.55 110.03 49,514.98 0.4 5.2 MORGAN 5.700% Due I1 -15 -14 170,000.000 CITIGROUP INC 101.78 173,031.10 102.11 173,586.66 1.3 5.9 6.010% Due 01 -15 -15 65,000.000 GOLDMAN SACHS 99.74 64,829.10 105.08 68,298.94 0.5 4.9 5.125% Due 01 -15 -15 225,000.000 AT &T INC 101.36 223,071.25 107.42 241,704.22 1.8 5.2 5.625% Due 06 -15 -16 145,000.000 BANK OF AMERICA 99.95 144,926.05 107.53 155,921.69 1? 6.0 CORP 6.500% Due 08 -01 -16 150,000.000 MCDONALD'S CORP 98.90 148,348.50 106.14 159,209.5: 1.2 5.0 5.300% Due 03 -15 -17 115,000.000 VERIZON 102.45 117,812.90 105.52 121,351.22 0.9 5.2 COMMUNICATIONS 5.500% Due 04 -01 -17 100,000.000 NATIONAL RURAL 99.68 99,680.00 104.29 104,292.40 0.8 5.2 UTIL COOP 5.450% Due 04 -10 -17 225,000.000 MCDONALD'S CORP 102.47 230,555.25 110.52 243,663.25 1.9 5.2 5.800% Due 10 -15 -17 115,000.000 CONS EDISON CO OF 99.96 114,949.40 107.11 123,131.90 0.9 5.5 NY 5.850% Due 04 -01 -18 120,000.000 AMGEN INC 99.78 119,732.40 107.24 128,682.24 1.0 5.3 5.700% Due 02-01-19 125,000.000 CISCO SYSTEMS INC 98.81 123,518.75 102.50 128,126.12 1.0 4.8 4.950% Due 02 -15 -19 115,000.000 CHEVRON CORP 99.97 114,964.35 105.34 121,137.32 0.9 4.7 4.930% Due 03 -03 -19 125,000.000 JOHNS HOPKINS 98.99 123,741.25 104.01 130,018.75 1.0 5.0 UNIVERSITY 5.250% Due 07 -01 -19 150,000.000 MORGAN STANLEY 101.00 151,495.50 100.73 151,096.50 1.2 5.6 5.625% Due 09 -23 -19 155,000.000 NOVANT HEALTH 9998 154,975.20 97.87 151,705.94 12 6.0 INC 5.850% Due 11 -01 -19 120,000.000 CONOCOPHILLIPS 101.29 121,544.40 110.80 132,962.04 1.0 5.4 6.000% Due 01 -15 -20 115,000.000 BOEING CO 98.96 113,801.70 100.27 115,311.76 0.9 4.9 4.875% Due 02 -15 -20 Accrued Interest 68,776.04 0.5 5,217,759.20 5,536,516.64 42.3 5.0 MUNICIPAL BONDS 110,000 KENTUCKY ST PPTY 100.00 110,000.00 99.08 & BLDGS COMMN REVS 6.164% Due 08 -01 -23 140,000 COMMONWEALT11 100.00 140,000 00 97.57 FING AUTH PA REV 5.653% Due 06 -01 -24 125,000 UTAH ST 100.00 125,000.00 97.07 4.554% Due 07 -01 -24 17 108,988.00 0.8 6.2 136,592.40 1.0 5.8 121,332.50 0.9 4.7 ICC Capital Management PORTFOLIO APPRAISAL PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME December 31, 2009 Unit Total Market Pct. Cur. Quantity Security Cost Cost Price Value Assets Yield 210,000 UNIVERSITY OF 100.04 210,081.25 100.10 210 210.00 1.6 6.3 18 CALIFORNIA 6.270% Due 05 -15 -31 150,000 PENNSYLVANIA ST 97.79 146,683.50 94.08 141,120.00 1.1 6.2 TPK COMMN OIL FRANCHISE TAX REV 5.848% Due 12 -01 -37 125,000 METROPOLITAN 100.00 125,000.00 93.55 116,933.75 0.9 6.3 TRANSPORTATION AUTHORITY 5.871 %Due I1 -15 -39 125,000 CHICAGO ILL BRD ED 100.00 125,000.00 98.84 1233,553.75 0.9 6.2 6.138% Due 12 -01 -39 160,000 UNIVERSITY N C 100.00 160,000.00 94.31 151,694.40 1.2 6.1 UNIV REVS 5.757% Due 12 -01 -39 Accrued Interest 16,517.27 0.1 1,141,764.75 1,126,942.07 8.6 6.0 GOVERNMENT BONDS 345,000.000 US TREASURY NB 104.59 360,848.44 97.73 337,183.75 2.6 4.6 4.500% Due 08 -15 -39 Accrued Interest 5,821.87 0.0 360,848.44 343,005.62 2.6 4.6 MORTGAGE POOLS 25,211.870 GNJO M #781313 103.12 25,999.74 107.33 27,060.13 0.2 5.6 6.000% Due 07 -15 -16 65,706.470 FNCI M #254371 99.56 65,419.00 106.48 69,964.97 0.5 5.2 5.500% Due 07 -01 -17 4,309.800 FOCI N #13 13455 99.71 4297.09 103.89 4,477.30 0.0 4.3 4.500% Due 0401 -19 78,105.080 FNCI N #725445 96.09 75,053.05 103.98 81,213.74 0.6 4.3 4.500% Due 05 -01 -19 46,369.930 FNCI N #825335 97.31 45,123.74 100.92 46,795.19 0.4 4.0 4.000% Due 05 -01 -20 46,762.910 FNCI N #255888 97.31 45,506.16 100.92 47,191.77 0.4 4.0 4.000% Due 08-01 -20 38,595.160 FNCI N #829053 97.00 37,437.31 100.92 38,949.12 0.3 4.0 4.000% Due 08 -01 -20 96,639.010 FGCI #G12205 96.48 93,241.54 103.70 100,213.59 0.8 4.3 4.500% Due 06 -01 -21 5,326.552 FGC1 N #G 12323 95.88 5,106.83 103.70 5,523.58 0.0 4.3 4.500% Due 08 -01 -21 114,114.690 GNSF M #552509 98.77 112,706.09 106.83 121,905.98 0.9 5.6 6.000% Due 04 -15 -32 28,415.460 GNSF M #582153 99.83 28,366.62 106.83 30,355.55 0.2 5.6 6.000% Due 06 -15 -32 569,003.412 FGLIVIC #G02268 102.08 580,828.43 107.16 609,723.00 4.7 6.1 6.500% Due 08 -01 -36 498,072.380 FNCL # 256394 102.00 508,034.00 107.31 534,493.92 4.1 6.1 6.500% Due 09 -01 -36 369,675.430 02 POOL#4194 106.12 392,318.05 104.96 388,000.61 3.0 5.2 5.500% Due 07 -20 -38 154,334.202 G2 POOL4 4195 99.89 154,165.22 106.01 163,612.00 1.3 5.7 6.000% Due 07 -20 -38 18 ICC Capital Management PORTFOLIO APPRAISAL PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME December 31, 2009 Unit Total Market PM. Cur. Quantity Security Cost Cost Price Value Assets Yield 641,902.891 GNSF5.5 %POOL 106.16 681,420.04 104.90 673,325.32 5.1 5.2 #714005 - 5.500% Due 10 -15 -39 Accrued Interest TOTAL PORTFOLIO 12,646,327.82 13,085,186.80 100.0 4.6 19 131458.45 0.1 2,855,022.91 2,956,264.23 22.6 5.5 GOVERNMENT SPONSORED BOND 120,000.000 FHLMC 100.00 120,000.00 101.15 121,379.83 0.9 3.0 3.000% Due 06 -25 -13 110,000.000 FANNIE MAE 100.00 110,000.00 100.91 110,996.87 0.3 3.2 3.200% Due 08 -05 -14 135,000.000 FREDDIE NIAC 100.00 135,000.00 100.69 135,927.45 1.0 3.4 3.375% Due 08 -18 -14 375,000.000 FREDDIE MAC 100.00 375,000.00 99.58 373,425.37 2.9 4.0 4.000% Due 09 -30 -16 200,000.000 FANNIE MAE 99.20 198,394.00 104.22 208,437.50 1.6 5.8 6.000% Due 04 -28 -21 265,000.000 FANNIE MAE 99.32 263,198.00 104.59 277,173.44 2.1 5.4 5.625% Due 11 -15 -21 300,000.000 FREDDIE MAC 98.63 295,890.00 104.23 312,680.40 2.4 5.7 5.900% Due 06 -15 -22 100,000.000 FREDDIE MAC 100.00 100,000.00 97.27 97,274.60 0.7 5.1 5.000% Due 12 -30 -24 Accrued Interest 11,712.19 0.1 1,597,482.00 1,649,007.71 12.6 4.7 TOTAL PORTFOLIO 12,646,327.82 13,085,186.80 100.0 4.6 19 PALM BEACH GARDENS POLICE PENSION FUND GROWTH Investment Review Quarter Ending December 31, 2009 !CC Capital Ma►iagement, Inc. PALM BEACH GARDENS POLICE PENSION FUND GROWTH Investment Performance Report Quarter Ending December 31, 2009 Total Return Summary Page...... 1 Portfolio Allocation Page...... 2 Investment Performance by Asset Category Page...... 3 Portfolio Sector Diversification Page...... 4 Investment Performance by Sectors Page...... 5 Portfolio Attributes Page...... 6 Brokers Commission Page...... 7 Purchases & Sales Page...... 8 Realized Gains/ Losses Page...... 9 Portfolio Summary Page...... 10 Portfolio Appraisal Page...... 11 Appendix: Proxy Votes ICC Capital Management, Inc. PALM BEACH GARDENS POLICE PENSION FUND GROWTH Total Return Summary Quarter Ending December 31, 2009 Starting Value $4,957,615 $3,453,042 $1,200,000 Ending Value $5,254,341 $5,254,341 $5,254,341 Difference $296,726 $1,801,299 $4,054,341 Net Contributions/ (Withdrawals) ($100,568) $86,928 $3,840,532 Gainl(Loss) from Investments $397,294 $1,714,371 $213,809 TOTAL RETURN 1 8.06% I 47.01% I -3.55% ANNUALIZED RETURN - 1.270/. -C Capital Manageluent, Inc. 1 PALM BEACH GARDENS POLICE PENSION FUND GROWTH Portfolio Allocation at Market Quarter Ending December 31, 2009 Asset Allocation: 100/0 (Mkt) Market Value CASH /EQUIVS as of 09130109 5.9% EQUITY 4 94.1% Market Value CASH /EQUIVS as of 12131109 8.3% 4 EQUITY 91.7% Mkt Value Mkt Value % Mkt Value Mkt Value °/ as of 09/30/09 as of 09/30/09 as of 12/31/09 as of 12,/31/09 Cash/E uivs $291,124 5.9% $434,029 8.3% Equity $4,666,491 94.1% $4,820,312 91.7% To to 1 $4,957,615 100.0% $5,254,341 100.0% ICC Capital Management, Inc. PALM BEACH GARDENS POLICE PENSION FUND GROWTH Investment Performance by Asset Category Quarter Ending December 31, 2009 ■ ACCOUNT ■ INDEX 15.00 10.00 5.00 0.001 One Year ■ ACCOUNT ■ INDEX 60.00 51.31 47.01 45.00 37.21 37.21 30.00 15.00 0.00 EQUITY TOTAL Since Inception Annualized 0.00 -1.00 -2.00 -3.00 -4.00 -5.00 ■ ACCOUNT ■ INDEX EQUITY TOTAL The red total bar represents the Russell 1000 Growth Index. ICC Capital Management, Inc. 3 PALM BEACH GARDENS POLICE PENSION FUND GROWTH Portfolio Sector Diversification Quarter Ending December 31, 2009 MICROSOFT CORP. TARGET CORPORATION MARVELL TECHNOLOGY GROUP BROADCOM CORP. SOUTHWEST AIRLINES CO. APPLE COMPUTER INC. NEWMONT MINING CORP. MICRON TECHNOLOGY INC. BRISTOL MYERS SQUIBB COMPANY THOMAS & BETTS CORP. Sector Materials Industrials Telecommunications Consumer Discretionary Consumer Staples ,Energy Financials Health Care Information Technology Utilities Top Ten HoldinLys % of equities Return for Quarter 4.68% 19.06% 4.22% 3.99% 4.17% 26.18% 3.85% 2.54% 3.79% 25.44% 3.72% 13.69% 3.43% 9.27% 3.30% 28.78% 3.10% 12.12% 3.04% 22.85% Sector Contribution % of Portfolio Return for Quarter 10.35% 6.20% 9.69% 15.18% 1.89% 18.71% 10.44% -0.83% 7.40% -2.22% 4.35% 2.86% 6.86% -0.60% 14.28% 12.84% 30.71% 16.12% 4.03% 1.37% 'CC Capita! Miniagenimt, bic. 4 PALM BEACH GARDENS POLICE PENSION FUND GROWTH Investment Performance by Sectors Quarter Ending December 31, 2009 Index Sector Returns for 4Q09 30.0 20.0 15.9 10.0 0.0 11.8 ids • r�0' I C`° O P� dip , S f!T o�d� oro� Sector Diversification Relative to the Russell 1000 Growth Index 10.0 6.4 1.3 0.2 1.9 3.1 -0.5 -0.1 -1.6 -2.5 -10.0 U[YDERWEIGIIT _8,3 -20.0 ergo G ohs` 'P� ld�� Pry o G,f' dfP�! fib` OPf� fiP�s �dVI fd df,° �fPfr ArPS cg-vi CC Capital Management, Inc. 5 OVERWEIGHT PALM BEACH GARDENS POLICE PENSION FUND GROWTH Growth Portfolio Attributes Quarter Ending December 31, 2009 CAPITALIZATION ICC R1000G BETA ICC R1000G YIELD ICC R1000G U ICC R1000G 12 MONTH EPS GROWTH ICC R1000G 5 YEAR EPS GROWTH ICC R1000G 1213112W9 48.5 79.4 12/31/2009 1.01 1.00 12131/2009 1.02 1.56 12131/2009 17.7 16.9 12/31/2009 17.2 6.2 1 3 2009 16.9 15.0 9f 30/2009 44.1 71.4 9130/200 1.01 1.00 9L3012009 1.08 1.72 9/30/200 20.2 16.8 9/3012 24.0 8.4 9/3 009 14.4 15.8 2009 40.5 68.0 LO 2009 L01 1.00 1.20 1.90 61301200 18,7 16.1 613012 25.0 18.0 0/30/2 14.3 19.2 /CCGrpifll Manngelneltt, lni. 6 3V3112009 38.3 66.3 3/31/200 1.02 1.00 3/31/2 1.66 2.14 313=009 19.7 14.4 3/31/2009 15.8 18.6 3 3 009 19.6 21.6 HARDY CAPITALIZATTON 100.0 79.4 71.4 75.0 48.5 68'0 66.3 50.0 44.1 40.5 38.3 25.0 0.0 12/31/2009 9/30/2009 6/30/2009 3/31/2009 150 BETA 1.00 1.01 1.00 1.01 1.00 1.01 1.00 1.02 1.00 0.50 0.00 LN 1 0 0 N 12/31/2009 9/30/2009 6/30/2009 3/31/2009 2.5 1 2YIELD 10 1 1.56 1.72 1.90 1.66 1.5 1.08 1.20 1.02 1.0 0.5 0.0 12/31/2009 9/:10/2009 6/30/2009 3/31/2009 30.0 PRICE/EARNINGS 20.0 171 16.9 20.2 16.8 18.7 19.7 16.1 14.4 10.0 0.0 -]I[� i 12/31/2009 9/30/2009 6/30/2009 3/31/2009 12 MONTH EPS GROWTH 30.0 24.0 25'0 20.0 "17.2 I8.0 18.6 I5.8 10.0 0.0 12/31/2009 9/30/2009 6/30/2009 3/31/2009 5 YR EPS GROWTH 30.0 T 192 21.6 . 20.0 16,q 19.6 t5.0 14.4 15.8 14.3 10.0 0.0 i 12/31/2009 9/30/2009 6/30/2009 3/31/2009 PALM BEACH GARDENS POLICE PENSION FUND GROWTH Broker Commission Si!tininary Report Quarter Ending December 31, 2009 Date Trans Ticker Security $Amount Shares Price Comm PerSh The Griswold Company 10/12/2009 10/27/2009 Buy Buy AVP NEM Avon Products Inc. $99,669.52 2900 $34.33 $116.00 $0.04 Newmont Mining Cor P $56,372.81 1300 $43.34 $26.00 $0.02 Total: The Griswold Company 156,042.33 4,200 $14200 $0.03 Edgetrade 2 10/9/2009 Sell TSM Taiwan Semiconductor Mfg $8,068.75 804 $10.05 $8.00 $0.01 10/9/2009 Sell TSM Taiwan Semiconductor Mfg $3,010.60 300 $10.05 $3.00 $0.01 10/9/2009 Sell TSM Taiwan Semiconductor Mfg $381.34 38 $10.05 $0.01 10/9/2009 Sell TSM Taiwan Semiconductor Mfg $11,559.65 1152 $10.05 $12.00 $0.01 10/9/2009 Sell TSM Taiwan Semiconductor Mfg $18,154.69 1809 $10.05 $18.00 $0.01 10/9/2009 Sell TSM Taiwan Semiconductor Mfg $16,137.50 1608 $10.05 $16.00 $0.01 10/9/2009 Sell TSM Taiwan Semiconductor Mfg $21,173.88 2110 $10.05 $21.00 $0.01 10/15/2009 Buy ENR Energizer Holdings Inc $105,783.84 1600 $66.10 $16.00 $0.01 10/15/2009 Sell CERN Cerner Corp $50,844.25 600 $84.75 $6.00 $0.01 10/15/2009 Sell CERN Cerner Corp $42,370.21 500 $84.75 $5.00 $0.01 10/15/2009 Sell CERN Cerner Corp $16,948.09 200 $84.75 $2.00 $0.01 10/15/2009 Sell MRVL Marvell Technology Group $4,759.98 300 $15.88 $3.00 $0.01 10/15/2009 Sell MRVL Marvell Technology Group $42,839.80 2700 $15.88 $27.00 $0.01 10/19/2009 Sell EQIX Equinix Inc $108,581.73 1100 $98.72 $11.00 $0.01 10/23/2009 Sell UTX United Technologies Corp. $6,586.11 100 $65.87 $1.00 $0.01 10/23/2009 Sell UTX United Technologies Corp. $19,758,33 300 $65.87 $3.00 $0.01 10/23/2009 Sell UTX United Technologies Corp. $6,586.11 100 $65.87 $1.00 $0.01 10/23/2009 Sell UTX United Technologies Corp. $6,586.11 100 $65.87 $1.00 $0.01 10/27/2009 Buy LUV Southwest Airlines Co. $49,825.41 5700 $8.73 $57.00 $0.01 10/27/2009 Sell HEW Hewitt Associates Inc -Cl A $33,304.36 900 $37.01 $9.00 $0.01 11/2/2009 SeII BDX Becton Dickinson & Co $54,803.23 800 $68.51 $8.00 $0.01 11/20/2009 Sell TNB Thomas & Betts Corp $44,474.69 1200 $37.07 $12.00 $0.01 12/17/2009 Sell CI Cigna Corp $25,152.52 700 $35.94 $7.00 $0.01 Total: Edgetrade 2 $697,691.18 24.721 @7d7 nn en m ICC Capital Manngenretit, Inc. 7 ICC Capital Management PURCHASE AND SALE PALM BEACH GARDENS POLICE PENSION FUND GROWTH From 09 -30 -09 To 12 -31 -09 Trade Settle Unit Date Date Quantity Security Price Amount PURCHASES 10 -12 -09 10 -15 -09 2,900.00 AVON PRODUCTS INC. 34.37 99,669.52 10 -15 -09 10 -20 -09 1,600.00 ENERGIZER HOLDINGS INC 66.11 105,783.84 10 -27 -09 10 -30 -09 1,300.00 NEWMONT MINING CORP 43.36 56,372.81 10 -27 -09 10 -30 -09 5,700.00 SOUTHWEST AIRLINES CO. 8.74 49,825.41 311,651.58 SALES 11 -02 -09 11 -05 -09 800.00 BECTON DICKINSON & CO 68.50 54,803.23 10 -15 -09 10 -20 -09 600.00 CERNER CORP 84.74 50,844?5 10 -15 -09 10 -20 -09 500.00 CERNER CORP 84.74 42,370.21 10 -15 -09 10 -20 -09 200.00 CERNER CORP 84.74 16,948.09 12 -17 -09 12 -22 -09 700.00 CIGNA CORP 3 5.9 3 25,152.52 10 -19 -09 10 -22 -09 1,100.00 EQURRX INC 98.71 108,581.73 10 -27 -09 10 -30 -09 900.00 HEWITT ASSOCIATES INC -CL A 37.00 33,304.36 10 -15 -09 10 -20 -09 2,700.00 MARVELL TECHNOLOGY GROUP 15.87 42,839.80 10 -15 -09 10 -20 -09 300.00 MARVELL TECHNOLOGY GROUP 15.87 4,759.98 10 -09 -09 10 -15 -09 1,151.89 TAIWAN SEMICONDUCTOR MFG 10.04 11,559.65 10 -09 -09 10 -15 -09 1,809.08 TAIWAN SEMICONDUCTOR MFG 10.04 18,154.69 10 -09 -09 10 -15 -09 1,608.07 TAIWAN SEMICONDUCTOR MFG 10.04 16,137.50 10 -09 -09 10 -15 -09 2,109.93 TAIWAN SEMICONDUCTOR MFG 10.04 21,173.88 10 -09 -09 10 -15 -09 804.03 TAIWAN SEMICONDUCTOR MFG 10.04 8,068.75 10 -09 -09 10 -15 -09 300.00 TAIWAN SEMICONDUCTOR MFG 10.04 3,010.60 10 -09 -09 10 -15 -09 38.00 TAIWAN SEMICONDUCTOR MFG 10.04 381.34 11 -20 -09 11 -25 -09 1,200.00 THOMAS & BETTS CORD 37.06 44,474.69 10 -23 -09 10 -28 -09 100.00 UNITED TECHNOLOGIES CORP. 65.86 6,586.11 10 -23 -09 10 -28 -09 100.00 UNITED TECHNOLOGIES CORP. 65.86 6,586.11 10 -23 -09 10 -28 -09 100.00 UNITED TECHNOLOGIES CORP. 65.86 6,586.11 10 -23 -09 10 -28 -09 300.00 UNITED TECHNOLOGIES CORP. 65.86 19,758.33 542,081.93 ICC Capital Management REALIZED GAINS AND LOSSES PALM BEACH GARDENS POLICE PENSION FUND GROWTH From 09 -30 -09 Through I2 -31 -09 9 Gain Or Loss Open Close Coat Date Date Quantity Security Basis Proceeds Short Term Long Term 07 -26 -07 10 -09 -09 1,151.89 TAIWAN 11,896.68 11,559.65 - 337.03 SEIVIICONDUCTOR MFG 10 -12 -07 10 -09 -09 1,809.08 TAIWAN 18,126.00 18,154.69 28.69 SEMICONDUCTOR MFG 10 -30 -07 10 -09 -09 1,608.07 TAIWAN 16,432.00 16,137.50 - 294.50 SEMICONDUCTOR MFG 01 -28 -08 10 -09 -09 2,109.93 TAIWAN 18,222.33 21,173.38 2,951.55 SEMICONDUCTOR MFG 04 -22 -08 10 -09 -09 804.03 TAIWAN 8,664.00 8,068.75 - 595.25 SEMICONDUCTOR MFG 08 -13 -08 10 -09 -09 300.00 TAIWAN 3,111.00 3,010.60 - 100.40 SEMICONDUCTOR MFG 08 -14 -09 10 -09 -09 38.00 TAIWAN 0.00 381.34 381.34 SEMICONDUCTOR MFG 09 -27 -07 10 -15 -09 2, 700.00 MARVELL TECHNOLOGY 44,420.13 42,839.80 - 1,580.33 GROUP 10 -12 -07 10 -15 -09 300.00 MARVELL TECHNOLOGY 5,106.00 4,759.98 - 346.02 GROUP 03 -01 -07 10 -15 -09 600.00 CERNER CORP 31,225.98 50,844.25 19,618.27 07 -26-07 10 -15 -09 500.00 CERNER CORD 26,862.00 42.370.21 15,508.21 10 -12 -07 10 -15 -09 200.00 CERNER CORP 12,834.00 16,948.09 4,114.09 03 -26 -08 10 -19 -09 1,100.00 EQUINLY INC 75,201.39 108,581.73 33,380.34 03 -07 -08 10 -23 -09 100.00 UNITED TECHNOLOGIES 6,823.97 6,586.11 - 237.86 CORP. 04 -22 -08 10 -23 -09 100.00 UNITED TECHNOLOGIES 7,145.00 6,586.11 - 558.89 CORP. 08 -13 -08 10 -23 -09 100.00 UNITED TECHNOLOGIES 6,549.00 6,586.11 37.11 CORP. 04 -07 -09 10 -23 -09 300.00 UNITED TECHNOLOGIES 13,599.00 19,758.33 6,159.33 CORP. 06 -03 -09 10 -27 -09 900.00 HEWITT ASSOCIATES 26,282.34 33,304.36 7,022.02 INC-CL A 01 -21 -09 11 -02 -09 800.00 BECTON DICKINSON & 57,481.68 54,803.23 - 2,678.45 CO OS -08 -08 11 -20 -09 1,200.00 THOMAS & BETTS CORP 54,173.40 44,474.69 - 9,698.71 01 -05 -09 12 -17-09 700.00 CIGNA CORP 12,821.41 25,152.52 12,331.11 TOTAL GAINS 25,893.80 75,638.26 TOTAL LOSSES - 2,678.45 - 13,748.99 456,977.31 542,081.93 23,215.35 61',889.27 TOTAL REALIZED GAIN/LOSS 85,104.62 9 ICC Capital Management PORTFOLIO SUMMARY PALM BEACH GARDENS POLICE PENSION FWD GROWTH December 31, 2009 Equities COMMON STOCK MATERIALS Pct. Cur. Est.Annual Security Type Total Cost Market Value Assets Yield Income Cash & Equivalents 83,294.00 90,741.00 1.7 CASH AND 434,023.96 434,028.96 8.3 0.1 307.03 EQUIVALENTS 3,848.00 3.2 6,249.00 CONSUMER 434,028.96 434,028.96 8.3 0.1 307.03 Equities COMMON STOCK MATERIALS 468,478.25 499,320.50 9.5 INDUSTRIALS 417,381.34 466,863.00 8.9 TELECOMMUNICATIONS 83,294.00 90,741.00 1.7 CONSUMER 519,325.50 503,282.00 9.6 DISCRETIONARY 3,848.00 3.2 6,249.00 CONSUMER 390,096.62 356,621.00 6.8 STAPLES ENERGY 242,924.82 209,718.00 4.0 FINANCIALS 339,553.28 330,364.00 6.3 HEALTH CARE 608,296.01 688,384.00 13.1 INFORMATION 1,205,144.98 1,480,849.20 28.2 TECHNOLOGY UTILITIES 182,456.85 194,169.00 3.7 COMMON STOCK 4,456,951.65 4,820,311.70 91.7 4,456,951.65 4,820,311.70 91.7 1.7 8,621.65 0.9 4,228.00 0.0 0.00 0.6 3,208.00 1.5 5,345.00 1.5 3,192.00 1.2 3,832.00 1.6 11,284.00 0.3 3,848.00 3.2 6,249.00 1.0 49,807.65 1.0 49,807.65 TOTAL PORTFOLIO 4,890,980.61 5,254,340.66 100.0 1.0 10 50,114.67 ICC Capital Management PORTFOLIO APPRAISAL PALM BEACH GARDENS POLICE PENSION FUND GROWTH December 31, 2009 Unit Total Market Pct. Cur. Quantity Security Cost Cost Price Value Assets Yield CASH ND EQUIVALENTS CASH & CASH EQUIVALENTS 432,429.96 432,429.96 8.2 0.1 DIV CASH ACCRUAL ACCT 1,599.00 1,599.00 0.0 0.0 434,028.96 434,028.96 8.3 0.1 COMMON STOCK MATERIALS 2,900.00 AVON PRODUCTS 34.37 99,669.52 31.50 91,350.00 1.7 2.7 INC. 3,500.00 NEWMONT MINING 40.67 142,351.82 47.31 165,585.00 3.2 0.8 CORP 2,800.00 NUCOR CORP 42.63 119,354.72 46.65 130,620.00 2.5 3.0 3,850.00 VALE SA 27.82 107,102.19 29.03 111,765.50 2.1 0.8 468,478.25 499,320.50 9.5 1.7 INDUSTRIALS 4,900.00 GENERAL ELECTRIC 22.40 109,778.48 15.13 74,137.00 1.4 2.6 CO. 16,000.00 SOUTHWEST 7.83 125,257.49 11.43 182,880.00 3.5 0.2 AIRLINES CO. 4,100.00 THOMAS & BETTS 25.86 106,028.98 35.79 146,739.00 2.8 0.0 CORP 1,100.00 UNITED PARCEL SVC 69.38 76,316.39 5737 63,107.00 1.2 3.1 INC 417,381.34 466,863.00 8.9 0.9 TELECOMMUNICATIONS 2,100.00 AMERICAN TOWER 39.66 83,294.00 43.21 90,741.00 1.7 0.0 CORPORATION 83,294.00 90,741.00 1.7 0.0 CONSUMER DISCRETIONARY 2,200.00 DEVRY, INC. 46.91 103,201.30 56.73 124,806.00 2.4 0.3 1,600.00 GAMESTOP CORP -CL 42.68 68,287.16 21.94 35,104.00 0.7 0.0 A 2,600.00 KOHLS CORP 45.28 117,720.92 53.93 140,218.00 2.7 0.0 4,200.00 TARGET 54.79 230,116.02 48.37 203,154.00 3.9 1.4 CORPORATION 519,325.50 503,282.00 9.6 0.6 CONSUMER STAPLES 1,700.00 ARCHER DANIELS 37.31 63,425.00 31.31 53,227.00 1.0 1.8 MIDLAND CO 2,600.00 CVS CAREMARK 34.61 89,974.00 32.21 83,746.00 1.6 0.9 CORP 1,600.00 ENERGIZER 66.11 105,783.84 61.28 98,048.00 1.9 ? HOLDINGS INC 2,000.00 PEPSICO INC. 65.46 130,913.78 60.80 121,600.00 2.3 3.0 390,096.62 356,621.00 6.8 1.5 ENERGY 1,900.00 EXXON MOBILE 72.89 138,488.12 68.19 129,561.00 2.5 2.5 CORP. ICC Capital Management PORTFOLIO APPRAISAL PALM BEACH GARDENS POLICE PENSION FUND GROWTH December 31, 2009 INFORMATION TECHNOLOGY 850.00 Unit Total INC Market Pet Cur. Quantity Security Cost Cost Price Value Assets Yield 3,300.00 SUPERIOR ENERGY 31.65 104,436.70 24.29 80,157.00 1.5 0.0 GROUP SERVICES INC MICRON 114,102.00 TECHNOLOGY INC 7,400.00 MICROSOFT CORP. 3,350.00 NETAPP INC 1,400.00 VMWARE INC -CLASS 242,924.82 A 209,718.00 4.0 1.5 FINANCIALS 4,820,311.70 91.7 1.0 1,700.00 FEDERATED 21.19 36,025.96 27.50 46,750.00 0.9 3.5 INVESTORS INC-CL B 1,000.00 FRANKLIN RES INC 102.36 102,361.20 105.35 105,350.00 2.0 0.3 600.00 GOLDMAN SACHS 148.88 89,325.24 168.84 101,304.00 1.9 0.8 GROUP INC. 2,600.00 MORGAN STANLEY 43.02 111,840.88 29.60 76,960.00 1.5 0.7 339,553.28 330,364.00 6.3 1.2 HEALTH CARE 1,500.00 ABBOTT LAB COM 52.35 78,521.00 53.99 80,985.00 1.5 3.0 1,100.00 BECTON DICKINSON 64.29 70,720.77 78.86 86,746.00 1.7 1.1 & CO 1,700.00 BIOGEN INC 60.96 103,625.97 53.50 90,950.00 1.7 0.0 5,900.00 BRISTOL MYERS 22.86 134,869.48 25.25 148,975.00 2.8 4.9 SQUIBB COMPANY 1,200.00 CERNER CORP 49.24 59,088.16 82.44 98,928.00 1.9 0.0 2,900.00 CIGNA CORP 18.24 52,895.86 35.27 102,283.00 1.9 0.1 30,350.00 SUP£RGEN INC 3.58 108,574.77 2.62 79,517.00 1.5 0.0 608,296.01 688,384.00 13.1 1.6 INFORMATION TECHNOLOGY 850.00 APPLE COMPUTER 179,122.20 INC 5,900.00 BROADCOM CORP 3,800.00 EMC CORP 800.00 EQU 41X INC 2,700.00 HEWITT 58,202.97 ASSOCIATES INC-CL 66,386.00 A 10,900.00 IDS UNIPHASE CORP 9,700.00 MARVELL 84,920.00 TECHNOLOGY 0.0 GROUP 15,100.00 MICRON 114,102.00 TECHNOLOGY INC 7,400.00 MICROSOFT CORP. 3,350.00 NETAPP INC 1,400.00 VMWARE INC -CLASS 3.2 A UTILITIES 2,550.00 CALIFORNIA WATER SERVICE GRP 8,100.00 NV ENERGY INC COMMON STOCK Total 136.08 115,664.10 210.73 179,122.20 3.4 0.0 2975 175,550.23 31.47 185,673.00 3.5 0.0 15.32 58,202.97 17.47 66,386.00 1.3 0.0 66.43 53,140.90 106.15 84,920.00 1.6 0.0 29.16 78,743.63 42.26 114,102.00 2.2 0.0 12.46 135,842.71 11.53 111,850.07 5.76 87,008.20 29.49 218,234.26 26.27 88,003.07 59.22 82,904.84 1,205,144.98 39.09 99,687.60 10.22 82,769.25 182,456.85 4,456,951.65 12 8.25 89,925.00 1.7 0.0 20.75 201,275.00 3.8 0.0 10.56 159,456.00 3.0 0.0 30.48 225,552.00 4.3 1.7 34.36 115,106.00 2.2 0.0 42.38 59,332.00 1.1 0.0 1,480,849,20 28.2 0.3 36.82 93,891.00 1.8 3.2 12.38 _ 100,278.00 1.9 3.2 191,169.00 3.7 3.2 4,820,311.70 91.7 1.0 ICC Capital Management PORTFOLIO APPRAISAL PALM BEACH GARDENS POLICE PENSION FUND GRO WTH December 31, 2009 Quantity TOTAL PORTFOLIO Unit Total Security Cost Cost 4,890,980.61 Market Pct. Cur. Price Value Assets Yield 5,254,340.66 100.0 1.0 Vote Summary Report Oct 01, 2009 - Dec 31, 2009 Palm Beach Gardens Police Fund Mtg Company/ Mgmt Vote Record Shares Date/Type Ballot Issues Security Rec Cast Date Prpnent Voted 11/05/09 -A Archer - Daniels - Midland 039483102 09/10109 1,700 Company *ADM* 1 Elect Directors For Split Mgmt 1.1 Elect Director George W. Buckley - -- For 1.2 Elect Director Mollie Hale Carter - -- Against 1.3 Elect Director Donald E. Felsinger - -- For 1.4 Elect Director Victoria F, Haynes - -- For 1.5 Elect Director Antonio Maciel Neto -- For 1.6 Elect Director Patrick J. Moore - -- For 1.7 Elect Director Thomas F. O'Neill - -- For 1.8 Elect Director Kelvin R. Westbrook - -- For 1.9 Elect Director Patricia A. Woertz - -- Against 2 Approve Omnibus Stock Plan For For Mgmt 3 Ratify Auditors For Against Mgmt 4 Adopt ILO Based Code of Conduct Against For ShrHoldr 11/1 1X9 - A Devry Inc. *DV* 251893103 09/30/09 2,200 1 Elect Directors For Split Mgmt 1.1 Elect Director Darren R. Huston - -- For 1.2 Elect Director William T. Keevan - -- For 1.3 Elect Director Lyle Logan - -- For 1.4 Elect Director Julia A. McGee — Withhold 2 Ratify Auditors For Against Mgmt 3 Adopt Policy Prohibiting Medically Against Against ShrHoldr Unnecessary Veterinary Training Surgeries 11/11/09 - A JDS Uniphase Corp. *JDSU* 46612J507 09/14/09 10,900 1 Elect Directors For For Mgmt 2 Approve Stock Option Exchange For For Mgmt Program 3 Amend Qualified Employee Stock For For Mgmt Purchase Plan 4 Ratify Auditors For For Mgmt 12/10/09 - A Micron Technology, Inc. 595112103 10/13/09 15,100 *MU* 1 Elect Director Steven R. Appleton For Against Mgmt 2 Elect Director Teruaki Aoki For For Mgmt 3 Elect Director James W. Bagley For For Mgmt 4 Elect Director Robert L. Bailey For For Mgmt Myrnt Rec - Company Management Recommended Vote Vote Summary Report Oct 01, 2009 - Dec 31, 2009 Palm ®each Gardens Police Fund Mtg Company/ Mgmt Vote Record Shares Date/Type Ballot Issues Security Rec Cast Date Pr nent Voted 5 Elect Director Mercedes Johnson For For Mgmt 6 Elect Director Lawrence N. Mondry For For Mgmt 7 Elect Director Robert E. Switz For For Mgmt 8 Approve Executive Incentive Bonus For Against Mgmt Plan 9 Ratify Auditors For Against Mgmt 11/19/09 - A Microsoft Corporation 594918104 09/04/09 7.400 *MSFT* 1 Elect Director William H. Gates, III For Against Mgmt 2 Elect Director Steven A. Ballmer For For Mgmt 3 Elect Director Dina Dublon For For Mgmt 4 Elect Director Raymond V. Gilmartin For For Mgmt 5 Elect Director Reed Hastings For For Mgmt 6 Elect Director Maria Klawe For For Mgmt 7 Elect Director David F. Marquardt For For Mgmt 8 Elect Director Charles H. Noski For For Mgmt 9 Elect Director Helmut Panke For For Mgmt 10 Ratify Auditors For Against Mgmt 11 Permit Right to Call Special Meeting For For Mgmt 12 Advisory Vote to Ratify Named For For Mgmt Executive Officers' Compensation 13 Adopt Principles for Health Care Reform Against For ShrHoidr 14 Report on Charitable Contributions Against For ShrHoldr 10/14/09 - A NetApp, Inc. *NTAP* 64110D104 08/17/09 3,350 1 Elect Directors For Split Mgmt 1.1 Elect Director Daniel J. Warmenhoven - - Withhold 1.2 Elect Director Donald T. Valentine -- Withhold 1.3 Elect Director Jeffry R. Allen - -- Withhold 1.4 Elect Director Alan L. Earhart - -- For 1.5 Elect Director Thomas Georgens - -- Withhold 1.6 Elect Director Mark Leslie -- For 1.7 Elect Director Nicholas G. Moore - -- For 1.8 Elect Director George T. Shaheen — For 1.9 Elect Director Robert T. Wall - -- Withhold 2 Amend Omnibus Stock Plan For Against Mgmt 3 Amend Omnibus Stock Plan For For Mgmt 4 Amend Qualified Employee Stock For For Mgmt Purchase Plan 5 Amend Executive Incentive Bonus Plan For Against Mgmt 6 Ratify Auditors For Against Mgmt Mgmt Rec - Company Management Recommended Vote P, —,,a '