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HomeMy WebLinkAboutAgenda Police Pension 012711Agenda City of Palm Beach Gardens Police Officers' Pension Fund MEETING OF �ANUARY 27, ZO11 LOCATION: City Council Chambers' 10500 North Military Trail Palm Beach Gardens, FL 33410 TIME: 1 PM l. Call Meeting To Order 2. Roll Call: • Lt. Jay Spencer, Chairman • David Pierson, Secretary • Jules Barone, Trustee • Brad Seidensticker, Trustee • Wayne Sidey, Trustee 3. Presentation of the September 30, 2010 Actuarial Valuation Report - GRS (Steve Palmquist) 4. Presentation of the September 30, 2010 Audited Financial Statements - CBH (Jim Burdick) 5. Investment Manager Report - ICC Capital (Steve Stack) 6. Investment Consultant Report - Thistle Asset Consulting (John McCann) 6. Attorney Report - Law Offices of Perry & Jensen (Bonni Jensen) • Approval of Statement of Policy Regarding Buyback of Police/ Non-Intervening Military Service • IRS Mileage Rate for 2011 - Memo • Custodial RFP Update 7. Administrator Report - Resource Centers (Audrey Ross) • Fiduciary Liability Insurance Renewal • 2011 Meeting Dates 7. Approval of Minutes • October 29, 2010 Regular Meeting 8. Disbursements 9. Benefit Approvals 10. Financial Statements 11. Old Business 12. Other Business • Request for VEBA Quote From GRS • Letter From the City Regarding the Police Pension Board's Participation Request • Incorrect Member Contributions (Ralph Kranchick) 13. Public Comments 14. Adjourn Next Meeting Date: To be scheduled... PLEASE IVOTE: 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 21, Z010 The regular meeting of the Board of Trustees of the City of Palm Beach Gardens Police Officers' Pension Fund was called to order at 8:56 AM by Wayne Sidey in the Council Chambers at the Palm Beach Gardens City Hall at 10500 North Military Trail, Palm Beach Gardens, Florida. TRUSTEES PRESENT ]ay Spencer, Chair David Pierson, Secretary Brad Seidensticker, Trustee 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) John McCann (Thistle Asset Consulting) INVESTMENT MANAGER REPORT ICC Capital — Presented by Steve Stack Mr. Stack reported that September was a great month for the equities, which were up about 12-13%. He commented that we are still seeing the equity rally, and we probably will continue to see it until the end of the year. Within the quarter the more risky names outperformed in which this fund benefited from because their portfolio was positioned for that. On the fixed income side the yields are still low, and the bond market still has so much volatility going on. Mr. Stack stated that they are moving away from the Treasuries and will continue to buy more in Corporates. Mr. Stack reviewed their fee structure and stated that this fund has hit their price break point. With that said, Mr. Stack wants to revise ICC's contract with the board to reflect the price break point amount, which will save the Plan about $1,400 per year. MOTION: SECOND: CARRIED: Mr. Pierson made a motion to revise the ICC contract to reflect the price break point fee, which is effective January 1, 2011. Mr. Seidensticker seconded the motion. The motion carried unanimously 5-0. INVESTMENT CONSULTANT REPORT Thistle Asset Consulting — Presented by John McCann Mr. McCann reviewed the aggregate for the fiscal year ending September 30, 2010. He explained that this shows where the plan lies. There is 55% in large cap, 24% in mid cap and 21% in small cap. Mr. McCann stated that this is a very nicely diversified portfolio, and he likes to go over this exercise at the end of each fiscal year to make sure there portfolio is positioned correctly. Page 1 of 6 Mr. McCann reported the performance for the quarter ending September 30, 2010. He stated that over all it was a great quarter and this fund has had the highest return for the fiscal year out of all his other clients that he has already done reports for. At the end of the quarter there was 55% in equities, 39% in fixed income and 6% in cash. The total fund was slightly behind for the quarter at 8.17% versus the index at 9.02%. The total equities outperformed the index at iZ.78% versus 12.39%, and the fixed income also outperformed at 3.07% versus 2.49%. Mr. McCann reported that for the fiscal year to date the fund outperformed their actuarial assumption return, but fell short of the benchmark at 10.09% versus 10.82%. He then reviewed each Manager's performance: Rhumbline S&P 500 - Slightly behind the index for the quarter at 11.26% versus 11.29%, but for the fiscal year to date they outperformed at 10.21% versus 10.16%. Rhumbline S&P 400 - Outperformed the index for the quarter at 13.13% versus 13.12%, but the opposite for the fiscal year; 17.77% versus 17.78%. Rhumbline S&P 600 - Fell short of the benchmark for both the quarter and the fiscal year at 9.56% versus 9.62% and 14.14% versus 14.21% respectively. ICC Large Cap Growth - Had a great quarter at 13.45% versus the index at 13%, and also had a great fiscal year at 14.62% versus 12.65%. International Equity - Outperformed significantly for both the quarter and the fiscal year. For the quarter they were way ahead at 18.06% versus the index at 16.53%, and for the fiscal year they performed even better at 9.09% versus the index at 3.71%. Mr. McCann stated that they two new international bond managers were just funded about one week ago, so he will have a report on them next quarter. He reviewed the risk versus return chart and stated that the fund is in a good position right now and they are getting a lot more return for the little risk they are taking. Mr. McCann commented that he did some more research on other international bond managers and reviewed what he found out. Mr. Pierson stated that at this time he does not think that the board should put anymore money into the international bonds as he thinks bonds are just a bubble waiting to burst. The board discussed their different options. MOTION: Mr. Pierson made a motion to not allocate anymore money to the international bond accounts. SECOND: Mr. Barone seconded the motion. CARRIED: The motion carried unanimously 5-0 Mr. McCann also reviewed the current allocation of the assets. He stated that the S&P 500 allocation fell under the policy amount, so we need to raise the allocation in order to be in compliant with the policy. MOTION: Mr. Seidensticker made a motion to transfer 3% from the ICC fixed income account to Rhumbline's S&P 500 account, to be in compliance with the investment policy guidelines. SECOND: Mr. Pierson seconded the motion. CARRIED: The motion carried unanimously 5-0 Page 2 of 6 Lastly, Mr. McCann reviewed the revised investment policy guidelines. He noted that the only revision he made was to add in the two new international bond managers. MOTION: SECOND: CARRIED: Mr. Seidensticker made a motion to approve and accept the revised investment policy guidelines that were presented by the Investment Consultant. Mr. Pierson seconded the motion. The motion carried unanimously 5-0 Ms. Ross noted that she would get all the parties signatures and file it with the appropriate parties. ATTORNEY REPORT Law Offices of Perry & Jensen - Presented by Bonni Jensen Ms. Jensen reviewed the revisions she made to the summary plan description. She noted that once approved by the board, copies must be provided to all active plan members. Ms. Ross stated that she will drop off copies of the summary plan description to payroll to be distributed with the members' paychecks. MOTION: SECOND: CARRIED: Mr. Barone made a motion to approve and accept the revised summary plan description that was prepared by the Plan's Attorney. Mr. Pierson seconded the motion. The motion carried unanimously 5-0. Ms. Jensen stated that she revised the DROP distribution policy to state that members who want to take a monthly annuity payment from their DROP account must get the amount calculated by an accountant. MOTION: SECOND: CARRIED: Mr. Barone made a motion to approve and accept the revised DROP distribution policy that was prepared by the Plan's Attorney. Mr. Sidey seconded the motion. The motion carried unanimously 5-0. Ms. Jensen updated the board on the new Federal laws. She reviewed the changes that the SEC and GASB made that could possibly impact the pension plan. Although these changes are not effective yet, Ms. Jensen commented that they are on the fast track to being approved and put into place. She will update the board as she hears more. Ms. Jensen explained to the board that there is an issue with the mutual funds when the Resource Centers purchases them. She explained that the Custodian of the plan should be the ones doing the purchase, but Fiduciary Trust does not offer this kind of service. Ms. Jensen recommended that the board should consider looking for a Custodian that will purchase the mutual funds on behalf of the board. The board discussed the different Custodians out there and Mr. Spencer stated that he recently spoke to Salem Trust at a conference and they offer this kind of service and stated that they can also save the plan some money as well. Page 3 of 6 � � v MOTION: SECOND: CARRIED: Mr. Seidensticker made a motion to authorize Ms. Jensen to do a RFP for a new Custodian. Mr. Pierson seconded the motion. The motion carried unanimously 5-0. Lastly, Ms. Jensen stated that when you transition from Custodians you may loose some information. With that said, Ms. Jensen reported that a class action monitoring firm, Barroway, Topaz, Kessler, Meltzer & Check (BTKMC) contacted her and they want to file on behalf of the plan throughout the entire transition for free as long as the board commits to staying with them in the future. Ms. Jensen explained that this firm will look at all the holdings in the plan and then they will try to find cases that they can make litigation out of. She commented that this offer has a tremendous upside and no downside, and she also noted that she has no relationship with this monitoring firm. Lu' C��_i� �C�1►A SECOND: CARRIED: Mr. Pierson made a motion to hire Barroway, Topaz, Kessler, Meltzer & Check as their class action monitoring firm. Mr. Sidey seconded the motion. The motion carried unanimously 5-0. ADMINISTRATOR REPORT Resource Centers — Presented by Audrey Ross Ms. Ross presented the board with the September 30, 2010 audit engagement letter. Ms. ]ensen stated that she reviewed the document and does not see any issues as is. MOTION: ���7 ►` I � CARRIED: Mr. Sidey made a motion to approve and authorize the September 30, 2010 audit engagement letter. Mr. Baron seconded the motion. The motion carried unanimously 5-0. Ms. Ross stated that the buyback policy does not state how long a member has from the time they receive their buyback cost to the time they need to notify me whether or not they want continue or not. The board discussed and stated that 90 days should be plenty of time from when a member receives their buyback cost to decide whether they want to buyback their time or not. MOTION: Mr. Sidey made a motion to allow members 90 days from when they receive their buyback cost to notify the administrator if they want to buyback the time or not. SECOND: Mr. Barone seconded the motion. CARRIED: The motion carried unanimously 5-0. Ms. Ross reviewed the 2011 meeting dates. She explained that the regular dates that the board has previously meet on are not available this year. The board scheduled their first meeting date for January 27, 2011 at 3PM, and stated that they will discuss the future dates at that meeting. Lastly, Ms. Ross stated that her office is having a difficult time with the VEBA Page 4 of 6 calculations. She explained that her office was directed to deducted the VEBA contributions out of the retirees pension checks so that they can still contribute to their VEBA accounts as a retiree. Ms. Ross commented that she was informed by the Attorney on the VEBA fund that the members contribute 2% of their final payroll for their last year of service. She stated that the issue is that we are not sure what should be included in their payroll for purposes of the VEBA calculation; overtime, base pay, salary, pensionable earnings, etc. Ms. Jensen stated that the pension board should not responsible for doing the VEBA calculations, and that the VEBA board needs to do the calculation and notify the administrator of the dollar amount to deduct from the members pension check. Ms. Jensen noted that she will notify the VEBA attorney of this issue and let them know they need to do all VEBA calculations in the future. MINUTES MOTION: Mr. Pierson made a motion to approve the minutes from the 7uly 29, 2010 regular meeting. SECOND: Mr. Seidensticker seconded the motion. CARRIED: The motion carried unanimously 5-0. DISBURSEMENTS APPROVALS MOTION: Mr. Sidey made a motion to approve the disbursements. SECOND: Mr. Pierson seconded the motion. CARRIED: The motion carried unanimously 5-0 BENEFIT APPROVALS MOTION: Mr. Sidey made a motion to approve the application to enter the DROP for Richard Facchine. SECOND: Mr. Barone seconded the motion. CARRIED: The motion carried unanimously 5-0 MOTION: Mr. Sidey made a motion to approve the application to exit the DROP for 7ay Spencer. SECOND: Mr. Barone seconded the motion. CARRIED: MOTION: The motion carried unanimously 4-0 (Mr. Spencer abstained from the vote) Mr. Sidey made a motion to approve the applications to exit the DROP for Glenn Brown, Michael Rispoli and Paul Leffler. SECOND: Mr. Barone seconded the motion. CARRIED: The motion carried unanimously 5-0 Page 5 of 6 MOTION: Mr. Barone made a motion to approve the application for distribution of DROP account (closeout) for Glenn Brown. SECOND: Mr. Sidey seconded the motion. CARRIED: The motion carried unanimously 5-0 FINANCIAL STATEMENTS The board reviewed and discussed the financial statements that were provided through August 2010. The board received and filed the financial statements through August 2010. OLD BUSINESS N/A OTHER BUSINESS Mr. Spencer stated that he received notification from the City that the City Council reappointed Mr. Pierson and Mr. Seidensticker. Both Trustees stated that they were willing to accept their term for another 4 years. Mr. Spencer stated that he had some concerns with last year's audit that was completed by Cherry, Bekaert & Holland, and he is not sure how things will go this year as well. He recommended to the board that they should consider doing an RFP for an Auditor. Ms. Jensen stated that you would have to wait until this years audit is complete before you issue an RFP. 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 scheduled for Thursday January 27, 2011 at 3PM; the Trustees officially adjourned the meeting at 11:11AM. Respectfully submitted, DAVID PIERSON, Secretary Page 6 of 6 PALM BEACH GARDENS POLICE OFFICERS' PENSION FUND A Pension Trust Fund of the City of Palm Beach Gardens, Florida Financial Statements and Accompanying Information For Years Ended September 30, 2010 and 2009 t � � PALM BEACH GARDENS POLICE OFFICERS' PENSION FUND Contents Page Report of Independent Certified Public Accountants ....................................................... 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 ........................................................................................ 12 - 17 REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) Schedule of Funding Progress and Schedule of Contributions from Employer and Others ........................................................................ 18 Note to Schedule of Funding Progress and Schedule of Contributions from the Employer andOthers ..................................................................................................................... 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 � r��� L Report of Independent Certified Public Accountants 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, 2010 and 2009, 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 standards 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 the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material 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 1, the financial statements 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, 2010 and 2009, and the changes in its financial position for the years then ended in conformity with accounting standards generally accepted in the United States of America. 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, 2010 and 2009, 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 REPORT DATE 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. � ' a�► , 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 Governmentai 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. Orlando, Florida REPORT DATE � "' � 0 MANAGEMENT'S DISCUSSION AND ANALYSIS � �" �� 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, 2010 and 2009. 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" to the financial statements: Schedule of Funding Progress Schedufe of Contributions from Employer and Others Note to the Schedule of Funding Progress and Schedule of Contributions from the Employer and Others The financial statements contained in the report are described below: • The Statements of Plan Net Assets is a paint-in-time snapshot of account balances at fiscal year-end. It reports the assets available for future payments to retirees and any current liabilities that are owed as of the statement date. The resulting Net Assets value (Assets — Liabilities = Net Assets) represents the value of assets held in trust for pension benefits. The Statements of Changes in Net Assets displays the effect of pension fund transactions that occurred during the fiscal year, where Additions — Deductions = Net Increase (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 from 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.) ��, � �.-. � 0 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 Others (page 18) presents historical trend information regarding the value of total annual contributions required to be paid by the City and State and the actual performance of the City and State in meeting this requirement. • The Note to the Schedule of Funding Progress and Schedule of Contributions from the Employer and Others provide background information and explanatory detail to aid in understanding the required supplementary schedules. Financial highlights • The net assets of the Fund exceeded its liabilities at the close of the fiscal years ended September 30, 2010 and 2009, with $41,426,892 and $34,032,253 in net assets held in trust for pension benefits, respectively. • Net assets increased by $7,394,639 or 21.7 percent during 2010, primarily due to the current year's contributions and investment income. • Net assets increased by $5,688,180 or 20.1 percent during 2009, primarily due to the 2009 contributions and investment income. • The Fund's funding objective is to meet long-term benefit obligations. As of October 1, 2009, the date of the latest actuarial valuation, the funded ratio of the Fund was 56.2 percent. In general, this means that for every dollar of pension benefits due, the �und has $0.562 of net assets available for payment. • Additions to plan net assets for the year ended September 30, 2010 were $8,710,805 which includes member, employer and state contributions of $5,194,683 and net income from investment activities totaling $3,516,122. • 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. • Deductions from plan net assets increased from $999,644 during 2009 to $1,316,166 in 2010 or about 31.7 percent. Most of the increase relates to more benefit payments made in 2010 compared to 2009. �; � '1` 5 Analysis of �inancial 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 greater returns in 2010 compared to 2009. Net assets held in trust for pension benefits increased by $7,394,639 in 2010, compared to an increase of $5,688,180 in 2009. Since these net assets are used to meet ongoing benefit obligations to plan participants and their beneficiaries, 2010's greater returns have improved the Fund's funding status. Net Assets (Table 1) As of Se tember 30, 2010, 2009 and 2008 Increase Decrease 2010 to 2009 2009 to 2008 2010 2009 2008 $ % $ % Current and other $ 496,014 $ 1,681,551 $ 1,639,341 ($1,185,537) (70.5)% $ 42,210 2.6% assets Investments, at fair 40,972,732 32,390,151 26,733,103 8,582,581 26.5 5,657,048 21.2 value Total assets 41,468,746 34,071,702 28,372,444 7,397,044 21.7 5,699,258 20.1 Current liabilities 41,854 39,449 28,371 2,405 6.1 11,078 39.0 Net assets $41,426,892 $34,032,253 $28,344,073 $ 7,394,639 21.7% $5,688,180 20.1% 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 the funding status of the retirement Fund. During 2010, the Fund's investment portfolio returned gains of approximately 10.0 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, 2009, the Fund's actuarial value of liabilities exceeds its actuarial value of assets by $28.72 million, producing a funded ratio of 56.2 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. 6 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 2010 and 2009, the assets of the Fund exceeded its current liabilities by $41,426,892 and $34,032,253 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 $8,710,805 for the year ended September 30, 2010. This was $2,022,981 more than the prior year primarily due to greater investment returns. The additions totaled $6,687,824 for the year ended September 30, 2009. Additions to Net Assets (Table 2) For the Years Ended Se tember 30, 2010, 2009 and 2008 Increase Decrease 2010 to 2009 2009 to 2008 2010 2009 2008 $ % $ % Employer contributions $3,955,968 $3,349,679 $ 3,143,904 $ 606,289 18.1 % $ 205,775 6.5% Member contributions 802,883 870,581 939,123 (67,698) (7.8) (68,542) (7.3) State of Florida contributions 435,832 446,982 440,115 (11,150) (2.5) 6,867 1.6 Net investment income (loss) 3,516,122 2,020,582 4,287,039 1,495,540 74.1 6,307,621 147.1 Total additions $8,710,805 $6,687,824 $ 236,103 $2,022,981 30.2% $6,451,721 2,732.6% � � � 7 Deductions from plan net assets The Fund was created to 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. Deductions from Net Assets (Table 3) For the Years Ended Se tember 30, 2010, 2009 and 2008 Increase Decrease 2010 to 2009 2009 to 2008 2010 2009 2008 $ % $ % Benefit payments $1,196,160 $895,008 $ 998,022 $301,152 33.6% ($103,014) (10.3)% Refund of contributions 27,142 - 23,371 27,142 100.0 (23,371) (100.0) Administrative expenses 92,864 104,636 90,114 (11,772 11.3 14,522 16.1 Total deductions $1,316,166 $999,644 $1,111,507 $316,522 31.7% $111,863) (10.1)% Expenses for the year ended September 30, 2010 totaled $1,316,166, an increase of 31.7 percent from 2009. The increase was primarily due to increased benefit payments and DROP account withdrawals in 2010. 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 decreased benefit payments and DROP account withdrawals in 2009. Further analysis of benefit payments is provided in Table 4 below. Benefit Payments (Table 4) For the Year Ended Se tember 30, 2010, 2009 and 2008 Increase Decrease 2010 to 2009 2009 to 2008 2010 2009 2008 $ % $ % Normal retirement payments $ 832,338 $588,409 $447,338 $243,929 41.5% $ 141,071 31.5% Disability pension payments 272,822 306,599 335,641 (33,777) (11.0) (29,042) (8.7) DROPaccountwithdrawals 91,000 - 215,043 91,000 100.0 215,043) (100.0) Total benefit pa ments $1,196,160 $895,008 $998,022 $301,152 33.6% ($103,014 (10.3)% The deductions of plan net assets of $1,316,166 and additions to plan net assets of $8,710,805 resulted in an overall increase of $7,394,639 in net assets held in trust for pension benefits for the year ended September 30, 2010. The deductions of plan net assets of $999,644 and additions to plan net assets of $6,687,824 resulted in an overall increase of $5,688,180 in net assets held in trust for pension benefits for the year ended September 30, 2009. Fiduciary responsibilities 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. 8 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: Palm Beach Gardens Police Officers' Pension Fund c/o Pension Resource Center, L.L.C., 4360 Northlake Boulevard, Suite 206 Palm Beach Gardens, FL 33410 � BASIC FINANCIAL STATEMENTS �¢ � PALM BEACH GARDENS POLICE OFFICERS' PENSION FUND Statement of Plan Net Assets Assets Cash and cash equivalents Receivables: Interest and dividends City of Palm Beach Gardens Police officers State of Florida Total receivables Prepaid expenses Investments, at fair value U.S. government obligations Municipal bonds Mortgage backed securities Corporate obligations Equity securities Equity funds International equity funds International bond funds Money market funds Total investments Total assets Liabilities Accounts payable and accrued expenses Total liabilities Net assets held in trust for pension benefits ��� �� September 30, 2010 2009 $ 166,240 $ 122,288 149,629 86,565 236,194 93, 580 3,219,802 3,027,928 8,429,942 5,038,662 13,969,719 3,468,678 1,428,171 2,389,830 40,972,732 41,468,746 122,578 837,420 87,399 446,982 1,494,379 64,884 2,742,649 219,538 2,002,166 5,963,735 4,667,766 12,364,077 2,483,622 1,946,598 32,390,151 34,071,702 41,854 39,449 41,854 39,449 $ 41,426,892 $ 34,032,253 See accompanying notes to financial statements 10 PALM BEACH GARDENS POLICE OFFICERS' PENSION FUND Statement of Changes in Plan Net Assets Additions Contributions City of Palm Beach Gardens State of Florida Police Officers Total contributions Investment income Net appreciation in fair value of investments Interest and dividends Other Less investment expenses Net investment income Total additions Deductions Participant benefit payments Refund of participant contributions Administration expenses Total deductions Net increase Net assets held in trust for pension benefits Beginning of year End of year Year Ended September 30, 2010 2009 $ 3,955,968 435,832 802,883 5,194,683 2,895,214 751,933 8,258 3,655,405 139,283 3,516,122 8,710,805 1,196,160 27,142 92,864 1,316,166 7,394,639 34,032,253 $ 41,426,892 � s � $ 3,349,679 446,982 870,581 4,667,242 1,488,020 648,270 2,136,290 115,708 2,020,582 6,687,824 895,008 104,636 999,644 5,688,180 28,344,073 $ 34,032,253 See accompanying notes to financial statements 11 PALM BEACH GARDENS POLICE OFFICERS' PENSION FUND Notes to Financial Statements Years Ended September 30, 2010 and 2009 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 Paim Beach Gardens, Flo�ida (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 as 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 ineasurable. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. Method used to value investments - Investments are reported at fair value. Money market mutual funds are reported at cost which approximates fair value. Securities traded on national or international exchanges are valued at the last reported sales price or exchange rates. The value of the Fund's participation in pooled equity trust funds is determined by the custodian using the market value of the assets held in the fund. Quoted market prices are used to value investments in the trust funds. Net appreciation (depreciation) in fair value of investments includes the difference between cost and fair value of investments held as well as the net realized gains and losses for securities which are sold. Interest and dividend income are recognized on the accrual basis when earned. Purchases and sales of investments are recorded on a trade date basis. Use of estimates - 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. 12 PALM BEACH GAR.DENS POLICE OFFICERS' PENSION FUND Notes to Financial Statements Years Ended September 30, 2010 and 2009 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 benefits 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 retirement 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 the average compensation over the last five years of service including lump sum payments of unused leave. Eligibility for disability benefits begins from the member's 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 calculated the same as a normal retirement pension based on average monthly earnings and credited service at the time of disability, but not less than 25% of average monthly earnings or the accrued pension benefit, whichever is greater. Pre-retirement death benefits for service related deaths are paid to the member's surviving spouse for life. Benefits are calculated at 50% of the member's final average salary, with a minimum equal to the accrued pension (with no early retirement reduction). Pre-retirement death benefits for non-service related deaths are paid to the member's beneficiary for life. For members with less than 5 years of contributing service at the date of death, the benefit is the return of the member's contributions without interest. For members with 5 years or more of contributing service at 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 payable 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, 2009, the date of the latest actuarial valuation: Retirees and beneficiaries receiving benefits 35 Terminated employees entitled to benefits but not yet receiving them 0 Active members 104 Total 136 �� ,� 13 PALM BEACH GARDENS POLICE OFFICERS' PENSION FUND Notes to Financial Statements Years Ended September 30, 2010 and 2009 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 City 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 of continuous past service by paying into the Fund the amount of contributions the employee would otherwise have paid for such service, plus the investment earnings that would have been earned had such funds been invested by the Fund during that time. Note 3- Deposits and investments Deposits Custodial credit risk - Florida Statutes require the Fund to maintain 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 the aggregate of each participant's ascertainable, non-contingent interest in the Fund (up to $250,000 per participant). Amounts in excess of federal depository insurance are secured by the Public Depository Trust Fund (Trust Fund) maintained by the Treasurer. The Trust Fund is a multiple financial institution pool with the ability to assess its member financial institutions for collateral shortfalls if a member fails. lnvestments - Investments at fiscal year end consist of the following at September 30, 2010: Credit rating Investment maturit in ears Investment t es: S&P Fair Value Less Than 1 1-5 6-10 More Than 10 Money market funds $ 2,389,830 $2,389,830 $ - $ - $ - Governmental securities AAA 3,219,802 - 555,857 1,517,266 1,146,679 Mortgage back notes AAA 3,027,928 - - 262,424 2,765,504 Corporate obligations AAA....A- 8,429,942 - 3, 702,973 3,911,551 815,418 Subtotal 17,067,502 2,389,830 4,258,830 5,691,241 4,727,601 International equity funds N/R 3,468,678 - - - - International bond funds N/R 1,428,171 - - - - Equity funds and securities N/R 19,008,381 Total investments $40,972,732 14 PALM BEACH GARDENS POLICE OFFICERS' PENSION FUND Notes to Financial Statements Years Ended September 30, 2010 and 2009 Note 3- Deposits and investments (continued) 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 or a savings anc Corporation; money market deposit accounts of a national bank, a state bank loan association insured by the Federal Deposit Insurance • Obligations issued by the United States Government or in 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 Israel. • 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 recognized statistical rating organizations (NRSROs). Custodial credit risk: For an investment, custodial credit risk is the risk that, in the event of the failure of the 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, 2010, 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. 15 PALM BEACH GAR,DENS POLICE OFFICERS' PENSION FUND Notes to Financial Statements Years Ended September 30, 2010 and 2009 Note 4- Funding status and funding progress The Plan provides retirement, death and disability benefits for its members. Benefit provisions are estabiished 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, 2009, the most recent actuarial valuation date, was as follows: 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) $36,834,622 $65,550,027 $28,715,405 56.2% $9,290,829 309.1 % 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 Actuarial cost method Amortization method Remaining amortization period Asset valuation method Actuarial assumptions: Investment rate of return Projected salary increases* *Includes inflation at Cost of living adjustments � ` October 1, 2009 Entry Age Normal Level percent, closed 27 years 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, 2010 and 2009 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, 2010. Therefore, no provision for income taxes is included in the Fund's financial statements. 3* 17 REQUIRED SUPPLEMENTARY INFORMATION .� � -. � � Actuarial Valuation Date 10/1 /04 10/1 /05 10/1 /06 10/1 /07 10/1/08 10/1 /09 PALM BEACH GAR,DENS POLICE OFFICERS' PENSION FUND Actuarial Value of Assets (a) 16,405,794 18,950,104 22,740,838 27,799,386 32,261,274 36, 834, 622 Schedule of Funding Progress (Unaudited) Actuarial Accrued Liability Unfunded (AAL) AAL Funded Covered Entry Age (UAAL) Ratio Payroll (b) fb - a) a( /b) (c) 24, 962, 551 35,004,203 46,503,218 52,230,511 60,450,441 65,550,027 8,556,757 16,054,099 23,762,380 24,431,125 28,189,167 28,715,405 65.7 54.1 48.9 53.2 53.4 56.2 6,755,078 7,332,448 8, 322, 332 8,915,563 9, 842, 874 9,290,829 Schedule of Contributions from Employer and Others (Unaudited) Fiscal Annual Year Ended Required Percentage September 30 Contributions Contributed 2005 2006 2007 2008 2009 2010 1, 704, 041 1,931,054 3,176,791 3, 556, 548 3,762,323 4,368,612 100.0 109.2 100.0 100.8 100.9 100.5 UAAL As Percentage of Covered Payroil ((b-a)/c) 126.7 218.9 285.5 274.0 286.4 309.1 Note: Annual required contributions reported above include contributions from both the City of Palm Beach Gardens and the State of Florida. 18 PALM BEACH GARDENS POLICE OFFICERS' PENSION FUND Note to the Schedule of Funding Progress and Schedule of Contributions from the Employer and Others 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: Investment rate of return Projected salary increases* *Includes inflation at Cost of living adjustments October 1, 2009 Entry Age Normal Level percent, closed 27 years Recognizes 20% of difference between market value of assets and expected actuarial asset value 7.5% 7.5% Note 2- Significa,nt factors affecting trends in actuarial information 3.0% Not applicable 2010 Changes in plan provisions and actuarial methods since prior valuations • None 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 plan provisions and actuarial methods since prior valuations • None � PALM BEACH GARDENS POLICE OFFICERS' PENSION FUND Note to the Schedule of Funding Progress and Schedule of Contributions from the Employer and Others Significant factors affecting trends in actuarial information (continued) 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. 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. 20 OTHER SUPPLEMENTARY INFORMATION PALM BEACH GARDENS POLICE OFFICERS' PENSION FUND Schedule of Administrative and Investment Expenses Administrative Expenses Accounting services Professional fees actuarial services Professional fees legal services Professional fees administrative services Fiduciary liability insurance Annual membership fees Trustee expenses Computer services Postage IRS determination letter fees Miscellaneous expenses Bank charges Total administrative expenses Investment Expenses ICC & Rhumbline investment management fees Custodial fees Performance monitor - Thistle Asset Consulting Total investment expenses � • ' , Year Ended September 30, 2010 $ 14,500 26,154 11,106 28,366 6,777 600 3,105 76 471 1,709 $ 92,864 $ 113,192 11,833 14,258 $ 139,283 2009 $ 13,000 36,469 15,420 29,660 5,419 600 1,498 236 1,000 189 1,145 $ 104,636 88,984 11, 642 15,082 $ 115,708 21 OTHER REPORTS � Y ���:� Report on Internal Control Over Financial Reporting a,nd on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Gvvern�entAuditingStat�dards 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 Officers' Pension Fund (the "Fund") as of and for the year ended September 30, 2010, and have issued our report thereon, dated REPORT DATE. We conducted our audit in accordance with auditing standards generaliy 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 Repartang In planning and performing our audit, we considered the Fund's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing an opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Fund's internal control over financial reporting. A defrciency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, 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. #l� =� 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. This report is intended solely for the information and use of the Board of Trustees and management, and is not intended to be and should not be used by anyone other than these specified parties. Orlando, Florida REPORT DATE 23 PALM BEACH GARDENS POLICE PENSION FUND STATEMENT OF POLICY REGARDING BUYBACK OF POLICE/ NON-INTERVENING MILITARY SERVICE WHEREAS, the Palm Beach Gardens Police Pension Fund ("Plan"), and the City of Palm Beach Gardens Code of Ordinances, Section 50-127 provides that participants may purchase prior police officer or non-intervening military service as "credited service" in this Plan; and WHEREAS, the Trustees desire to adopt a Statement of Policy regarding the buyback of prior police officer and non-intervening military service; NOW, THEREFORE, it is hereby resolved that the following Statement of Policy Regarding Buyback of Police Officer/Non-Intervening Military Service is hereby adopted: I. TIME AVAILABLE FOR PURCHASE A. A Member may purchase years or fractional parts of years of service that a member: 1. Previously served as a police officer with the City of Palm Beach Gardens and for which accumulated contributions were withdrawn from the Fund; 2. Previously served as a Police Officerwith any other municipal, county state or federal law enforcement department or agency; or 3. Previously served in the United States Military (before beginning employment with the City of Palm Beach Gardens Police Department). B. A Member shall not be eligible to purchase prior service if such service is or will form the basis for a pension from another retirement system or plan. This exclusion does not apply to military service. II. APPLICATION PROCESS A. A Member shall make application to buyback service time on a form provided by the Board of Trustees. A copy of the form is attached to this Policy. B. A police officer may request to purchase some or all available years of service. C. The Trustees shall review and approve all requests for buybacks in accordance with this Statement of Policy. D. Upon approval of application for buyback, the cost shall be calculated by the Fund's actuary as follows: 1. Previous Palm Beach Gardens Service calculation based upon repayment of refund with interest, from the date of withdrawal to the date of repayment. 2. Previous Police Officer or Military Service calculated based upon salary and contribution rate in effect at the time that purchase is requested; plus the amount required to make the cost neutral; plus the cost for professional services E. After the amount of the buyback is calculated and the Member has elected to purchase permissive service, the Member shall execute a"Buyback Contract" which shall set forth the specific buy back provisions for that individual Member. Page 2 of 5 F. The request for buyback may be made at any time during employment but such request can only be made once. G. The credit purchased under this policy will count for all purposes, excludinq �� vesting. III. FUNDS AVAILABLE FOR PAYMENT A Member may pay for the cost of the purchase of time with any of the following sources, if available. A. A Member may pay for the buyback out of pocket, in one lump sum payment; or B. Using rollovers from other qualified plans; or C. The police officer can buy back this time over a period equal to the length of time being purchased or five years, whichever is greater, at an interest rate which is equal to the fund's actuarial assumption. IV. REPAYMENT PERIOD A. The time period for repayment is 5 years or a period equal to the amount of time being purchased. B. Members must determine whether they are purchasinq the service within 90 of receipt of the certified letter containina the statement from the Actuary showinq the cost of the buyback. C. Repayment must begin within six months of the request for credit. D. While in repayment status, no credit will be given for any years of service until the full number of years of service to be purchased has been repurchased. Page 3 of 5 E. If a member becomes disabled and entitled to a benefit while in the process of completing a buyback, then the member will not have to complete the buyback, but any payments made before disability is determined shall remain with the Fund. F. If a Member terminates employment with the City of Palm Beach Gardens Police Department before attaining 5 years of service (with the City) or before completing entire service buyback repurchase, then any buyback contributions made shall be refunded to the Member without interest. V. COST OF CALCULATIONS A. Participants must pay the cost of the actuary's calculation for the buyback. However, each member will be entitled to one free calculation. INTENTIONALLY LEFT BLANK Page 4 of 5 THIS STATEMENT OF POLICY REGARDING BUYBACK OF POLICE OFFICER/NON-INTERVENING MILITARY SERVICE is adopted by the Board of Trustees of the PALM BEACH GARDENS POLICE PENSION FUND on this day of 2010. Witnessed by: TRUSTEES BSJ/Ib October 25,2010 H:\PBG 0003\Buyback\2010.10.25 .PBG - Buyback Policy.wpd Page 5 of 5 ��R C Gabriel Raedec Smith & Company �w cansultants & Actua��es CITY 4F PALM BEACFI GARDENS POLICE OFFICERS' PENSION FUND ACTUARIAL VALUATION REP4RT AS OF OCTOBER 1, 2010 ANNiJAL EMPLOYER CONTRIBUTIDN FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2012 January 26, 20I 1 Board of Trustees City of Palm Beach Gardens Police Officers Pension Fund Palm Beach Gardens, Florida Dear Board Members: We are pleased to present our October 1, 2010 Actuarial Valuation Report for the Plan. The purpose of the Report is to set forth required contribution levels, to disclose plan assets and actuarialliabilities, to comment on fiuicling progress and to provide supporting information regarding the operation of the Pian. This Report is also designed to comply with requirements of the State. The valuation was performed on the basis of employee, retiree and financiai information supplied by the Resource Centers, LLC. Although we did not audit this information, it was reviewed for reasonableness and comparability to prior years. The beneiits vaiued are outlined at the end of the Report. Actuariai assumpiions and the actuarial cost method are also described herein. Any changes in benefits, assumptions or methods are described in the first section. This actuarial valuation and/or cost deternunation was prepared and completed by me or under my direct supervision, and I aclrnowledge responsibility for the results. To the best of my knowledge, the results are complete and accurate. In my opinion, the techniques and assumptions used are reasonable, meet the requirements and intent of Part VIl, Chapter 112, Florida SEatutes, and aze based on generally accepted actuarial principles and practices. There is no beneiit or expense to be provided by the plan and/or paid from the plan's assets for which Iiabilities or current costs have not been establishad or otherwise taken into account in the valuation. Ali known events or trends which may require a material increase in plan costs or required contribution rates have been taken into account in the valuation. As indicated below, the undersigned are Members of the American Academy of Actuaries {MAAA} and meet the Qualification S#andards of the Academy of Actuaries to render the actuarial opinion herein. We will be pleased to answer any questions pertaining to the valuation and to rneet with you to review this Report. Respeckfully subrrvitted, GABRIEL, ROEDER, SMTTH AND COMPANY By �� , gy �Y1 �. J tephen Palmquist, ASA, AAA, FCA Melissa R. Algayer, M CA Ezu-olled Actuary No. 08-1560 Enrolled Actuary No. 08-6467 TABLE OF CONTENTS Section Title A Discussion of Valuation Results 1. Discussion of Valuation Results 2. Chapter Revenue B Valuation Results 1. Participant Data 2. Annuat Required Contribution 3. Actuarial Value of Benefits and Assets 4. Calculation of Employer Normal Cost 5. Liquidation of Unfunded Actuarial Accrued Liability 6. Actuarial Gains and Losses 7. Recent History of Required and Actual Contributions 8. Actuarial Assumptions and Cost Method 9. Glossary of Tern�s C Pension Fund Information 1. Statement of Plan Assets at Market Va1ue 2. Reconciliation of Plan Assets 3. Reconciliation of DROP Accounts 4. Calculation of Actuarial Value of Assets 5. Investment Rate of Return D Financial Accounting Information l. FASB No. 35 2. GASB No. 25 3. GASB No. 27 E Miscellaneous Information 1. Reconciliation of Membership Data 2. Active Participant Distribution 3. Inactive Participant Distribution F Sunuriary of Plan Provisions GRS P_ age 1 4 5 b 7 8 9 11 16 17 21 24 25 26 27 28 29 30 32 34 35 36 37 SECTION A DISCUSSION OF VAI.UATION RESULTS GRS 1 DISCUSSION OF VALUATION RESULTS Comparison of Required Emplover Confributions A comparison of the required employer contribution developed in this year's actuarial valuation and the previous valuation is as follows. For FI'E 9/30/2012 For FYE 9/30/2011 Based on Based on 10/1/2010 10/1/2049 Incre as e Valuation Valuation (Decrease} Required Employer/State Contnbution $ 4,198,183 $ 4,298,216 $(100,033) As % of Covered Payroll 47.04 % 44.06 % 2.98 % AIlowabie Credit for State Contnbution $ 412,644 $ 412,644 $ 0 As % of Covered Payroll 4.62 % 4.23 °/a 0.39 % Requffed Employer Contnbution $ 3,785,539 $ 3,885,572 ${100,033) As % of Covered Payroll 42.42 % 39.83 % 2.59 % The required employer contribution has been adjusted for interest on the basis that contributions are made in equal payments at the end of each quarter. The contribution has also been computed under the assumption that the amount to be received from the State on behalf of police officers in 2012 will be the same as the base amount of $412,b44. if the actual gayment from the State falls below this amount, then the City must inerease its contribution by the difference. Actual employer and allowable State contributions during the year ending September 30, 2010 were $3,955,968 and $412,644, respectively, for a total of $4,368,612. The annual required contribution was $4,368,612. GRS � Revisions in Benefits There have been no changes in benefits since the prior valuation. Revisions in Actuarial Assumptions or Methods There have been no changes in assumptions or methods since the prior valuation. Actuarial ExAerience There was a net actuarial loss of $348,981 for the year which means that actual experience was less favorable than expected. The loss is primarily due to recognized investment return below the assumed rate of 7.5%. The investment return was 9.8% basec� on market value of assets and S.b% based on actuarial value of assets. The loss was partially offset by gains due to lower than expected beneft amounts for new DROP members and the deaths of two retirees. The net actuarial loss has increased the required employer contribution by 0.34% of covered payroll. Funded Ratio This year's funded ratio is 58.8% compared to 56.2% last year. The ratio is equal to the actuarial value of assets divided by the actuarial accrued (past service) liabiiity. Analvsfs of Chan�e i� Emalover Contribution The components of change in the employer contribution rate are as follows: Contr�ution rate last year Payment on ur�funded liabiilitty Experience (gam)/loss Change in Normal Cost Rate Change in administrative expense Change u► State revenue Contnbution rate this year Variabilitv of Future Coatribution_ Rates 39.83 % 2.57 0.34 (0.05) 0.12 (Q•3gl 42.42 The Actuarial Cost Method used to determine the contribution rate is intended to produce contribution rates which are generally level as a percent of payroll. Even so, when experience differs from the assumptions, as it often does, the employer's contribution rate can vary significantly from year- to-year. GRS 3 Over time, if the year-to-year gains and losses offset each other, the contsibution rate wouid be expected to return to the current level, but this does not aiways happen. The Actuarial Value of Assets exceeds the Market Value of Assets by $3,058,183 as of the valuation date (see Section C). This difference will be gradually recognized in the absence of offsetting gains. In turn, the computed employer contribution rate will increase by approximately 3% of covered payroll. Another potential area of variabiIity has to do with the annual payrnent on the unfunded accrued liability {UAL). This payment is computed as a level percent of covered payroll under the assumption that covered payroll will rise by 5% per year. According to the Florida Administrative Code, this payroll growth assw�nptian may not exceed the average growth over the last ten years which was 5.1 %. If the ten-year average falls below 5% next year, the amortization payments will increase. For example, if the payroll growth assumption is Iowered to 0%, the UAL payrnent will increase from $ I,693,053 next year to $2,587,030. Relationshin to Market Value If Market Value had been the basis for the valuation, the City contribution rate would have been 45.36% and tl�e funded ratio would have been 54.5%. In the absence of other gains and losses, the City contribution rate should increase to that level over the next several years. The remainder of this Report inciudes detailed actuarial valuation results, financial information, miscellaneous information and statistics, and a swnmary of plan provisions. GRS 4 CHAPTER REVENUE Increments in Chapter revenue over that received in 1998 must f�rst be used to fund the cost of compliance with minimum benefits. Once minimums are met, any subsequent additional Chapter xevenue must be used to provide extra benefits. As of the valuation date, there are no minimum benefit requirements outstanding. Actuarial Confmnarion of the Use of State Chapter Money 1. Base Amount Previous Plan Year �$ 412,644 2. Amount Received for Previous Plan Year � 435,832 3. Bene�t Improvements Made in Previous Plan Year � 0 4. F.�ccess Funds for Previous Pian Year: (2} -(1) -(3) � 23,188 5. Accumulated Excess at Beginning of Previous Year I 459,331 6. Prior Excess Used in Previous Plan Year [17 7. Accumulated F�ccess as of Valuation Date (Available for Benefit Improvements): (4) + (5) - (6) 482,519 8. Bese Amount This Plan Year: (1) +(3) � 412,644 The Accumulated Excess shown in line 7 is being held in resetve to pay for additional benefits. The reserve is subtracted from Plan assets (see Section C of this Report). The Base Amount in line 8 is the maximum amount the employer may take as a credit against its required contribution; however, in no event may the employer take credit for more than the actual amount of Chapter revenue received. GRS SECTION B VALUATION RESULTS �� PARTICIPANT DATA October 1, 2010 October 1, 2009 ACTIVE MEMBERS Nvmber 93 104 Covered Annual Payroll $ 8,499,722 $ 9,290,829 Average Annual Payroll $ 91,395 $ 89,335 Average Age 40.8 40•7 Average Past Service 11.2 11.5 Average Age at Hire 29.6 29.2 RETIREES, BENEFICIARIES & DROP* Nwnber 35 25 Annual Benefits $ 2,311,315 $ 1,390,093 Average Annual Benefit $ b6,038 $ 55,604 Average Age 55.2 56.3 DISABILITY RETIREES Number 10 10 Annual Bene�ts $ 272,822 $ 272,822 Average Annual Benefrt $ 27,282 $ 27,282 Average Age 54.2 53.2 TERMINATED VESTED MEMBERS Number 1 0 Annual Benefrts $ 49,452 $ 0 Average Annual Benefit $ 49,452 $ 0 Average Age 39.0 0.0 * Does not mclude defened supplemental benefits for DROP meml�rs GRS ANNUAL RE(�UIRID CONTRIBUTION {ARC� A. Valuation Date October 1, 2010 October 1, 2009 B. ARC to Be Paid During Fis cal Year Fxiding 9/30/2012 9/30/2011 C. Assumed Dates ofFxnployer Contnbutions Quarterly Quarterly D. Annuai Payment to Amortize Unfunded AcEuarial Liability $ 1,693,053 $ 1,592,830 E. F�riployerNorn�alCost 2,130,523 2,322,411 F. ARC if Paid on the Valuation Date: D-FE 3,823,576 3,915,241 G ARC Adjusted for Frequency of Payments 3,997,893 4,093,737 H. ARC as % of Covered Payroll 47.04 % 44.06 % I. Assumed Itate of Increase in Cove�d Payroll to Contribution Year 5.0(} % 5.00 % J. Covered Paymll for Contribution Year 8,924,708 9,755,371 K. ARC forContnbution Year. H xJ 4,198,183 4,298,216 L. Allowable Credit for State Revenue in Contnbution Year 412,6G4 412,644 M. Required F.mployer Contnbution (REC� in Contnbution Year 3,785,539 3,885,572 N. REG as % of Covered Payroll in Contnbution Year. M= J 42.42 % 39.83 % GRS ACTUARIt1LVAI�UEOFBINE��TS ANDASSEI'S A. Valuation Date October 1, 2010 October 1, 2009 B. Actuarial Present Value of All Projected Benefits for 1. Active Membets a. Service Retirement Benefits $ 55,887,042 $ 62,347,306 b. Vesting BenefRs 1,815,308 1,856,835 c. Disability Benefits 4,728,645 4,769,684 d. Preretirerrent Death Benefits 539,155 546,759 e. Return ofMemberContnbutions 23,OS5 30,818 f. Total b2,993,205 69,551,402 2. Inactive Members a. Service Retirees & Beneficiaries 28,248,236 17,OI1,320 b. Disability Reiirees 2,980,654 3,023,166 c. Temvnated Vested Members 232,016 - d. Total 31,4b0,906 20,034,486 3. Total forAll Membecs 94,454,I11 89,585,888 C. Actuarial Accrued (Past Service) Liability per GASB No. 25 71,341,740 65,550,027 D. Actuarial Valae of Accurrailated Ptan Benefits per FASB No. 35 60,581,471 54,44i,005 E. Pian Assets 1. Market Value 38,889,826 32,517,424 2. Actuarial Value 41,948,0(?9 36,834,622 P. Unfunded Actuarial Acctued Liability: C- E2 29,393,731 28,715,405 G. ActuarialPresent Value ofProjected Covered Payroll 71,685,528 74,636,734 H. Actuarial Present Value of Projected Member Contributions 6,164,955 6,418,759 GRS CALCULATION OF EMPLOYER NORMAL COST A. Valuation Date October I, 2010 October l, 2{l09 B. Normal Cost for 1. Service Retirement Benefits $ 2,183,251 $ 2,400,377 2. Vesting Benefrts 167,637 184,145 3. Disabi7ity Benefits 356,104 376,973 4. Preretaement Death Benefits 37,485 42,647 5. Return of Member Contr�butions 18,272 19,9�4 6. Total for Future Benefits 2,762,749 3,024,046 7. Assumed Amount for Adm�i,Strative Expenses 98,750 97,376 8. Total Normal Cost 2,861,499 3,121,422 9. Total as a% of Covered PayroIl 33.67% 33.60% C. Expected Member Cont�bution 730,976 799,011 D. Employer Normal Cost: B8-C 2,130,523 2,322,411 E. Employer Normal Cost as a% of Covered Payroll 25,��% 25•00% �w.' LIQUIDATIQN OF THE UNFUNDED ACTUARIAL ACCRUED LIABILITY A. UAAL Amoritzation Period aad Payments Original UAAL Current UAAL Amortization Period Years Ye ars (Ye ars) Amount Re maining Amonnt Payme nt 7/1/1986 30 $ 4,147 6 $ 1,724 $ 304 10/1/1991 30 (1,504} 11 (961) {98) 10/1/1991 30 286,223 11 182,451 18,606 10/i/1992 30 122,611 12 82,716 7,820 10/1/1993 30 (194,444) I3 (138,899} (12,25'n 10/1/1995 30 796,975 15 753,479 58,421 10/1/1996 30 (189,97'� 16 (193,499} (14,343) 10/1/2000 30 3,639,273 20 4,328,717 268,i77 la/1/2005 30 975,210 25 1,117,975 58,464 10/1/2005 30 5,273,728 25 b,(}45,768 316,1b0 10/1/2006 30 12,571,515 26 13,987,181 710,811 10/1/2007 15 (251,668} 12 (240,269) {22,714) 10/1/2008 IS 3,319,494 i3 3,254,308 287,176 10/1/2009 15 (137,951) 14 (135,941) (11,264) 10/1/2010 15 348.981 15 348,981 27,290 $ 26,562,613 $ 29,393,731 $ 1,693,053 GRS 10 B. Amortization ScheduIe The UAAL is being amortized as a level percent of payroll. The expected amortization schedule is as follows: Amortization Schedule Ye ar Expe cte d UAAL 20i0 $ 29,393,731 2011 29,778,225 2012 30,10(?,558 2413 30,35 i,515 2014 30,520,9b4 2015 30,597,776 2020 29,123,379 2025 24,143,570 2030 15,422,201 2035 2,407,058 2036 0 GRS 11 ACTUARIAL GAINS AND LOSSES The assumptions used to anticipate mortality, employment turnover, investment income, expenses, salary increases, and other factors have been based on long range trends and expectations. Actual experience can vary from these expectations. The variance is measured by the gain and loss for the period involved. If significant long ierm experience reveals consistent deviation from what has been expected and that deviation is expected to continue, the assumptions should be modified. The net actuarial gain (loss} for the past year is computed as follows: 1. Last Year's UAAL 2. Last Year's Employer Normal Cost 3. Last Year's Contrbutions 4. Interest at the Assumed Rate on: a. 1 and 2 for one year b. 3 from dates paid c. a-b 5. This Year's Expected UAAL Prior to Revision: 1+2-3+4c 6. Change in UAAL Due to Plan Amendments and/or Changes in Actuarial Assumptions 7. This Year's E�cpected UAAL: S+ 6 8. This Year's Actual UAAL 9. Net Actuarial Gain (Loss): 7- 8 10. Ga� {Loss) Due to Investments 11. Gain (Loss) from Other Sources � $ 28,715,405 2,461,592 4,368,612 2,338,275 101,910 2,236,365 29,{�4,750 1 29,044,750 29,393,731 (348,981) (7b4,546} 415,565 Experience gains/losses for the past few years are as follows: Ye ar Ending September 30 199b 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 � �_� G�ain $ {284,232) {994,552) {674,47'� (424,754) 68,592 (435,534} (2,162,823} (949,324} (246,347) (1,006,694) ( I,517,294) 251,668 {3,319,494) i 37,951 (348981) 12 13 Cumulative Actuarial Gains (Losses) Balance at Year Eading Beginning Gain (Loss) Balance at 9/30 ofYear Interest forYear COLA End afYear 2001 $ 0 $ 0 $ {435,534) $ 0 $ (435,534) 2002 (435,534) (37,020) (2,162,823) 0 {2,635,377) 2003 {2,635,37'� (224,00'n (949,324) 0 {3,808,708) 2004 {3,808,708} (323,740) (246,34'� 0 (4,378,795) 2005 {4,378,'795} (372,198) {1,006,694) 0 (5,757,68'� 2006 (5,757,68'� (489,403) (1,517,294} 0 (7,764,384} 2007 (7,764,384) (582,329} 251,668 0 (8,095,045) 2008 (8,095,045) (607,128} (3,319,494) 0 (12,02I,66'n 2009 (12,021,66'� (901,625} 137,951 0 (12,785,341} 201Q (12,785,34i) (958,901) {348,981) 0 (14,093,223) i3 \w: � 14 The fund earnings and salary increase assumptions have considerable impact on the cost of the Plan so it is important that they are in line with the actual experience. The following table shows ihe actual fund earnings and salary increase rates compared to the assumed rates for the last few years: Investment Return Saiary Increases Year Ending Actual Assumed Actual Assumed 9/30/1990 9.1 °/a 8.0 % 9.1 % 6.5 % 9/30/1991 8.6 8.0 9.5 b.5 9/30/1992 8.2 8.0 10.9 b.5 9/30/1993 8.8 8.0 14.1 b.5 9/30/1994 2.4 8.0 0.6 6.5 9/30/1995 18.2 8.0 12.8 6.5 9/30/1996 5.2 8.0 3.6 6.5 9/30/1997 10.3 8.0 11.5 * 6.5 9/30/1998 9.2 8.0 10.0 6.5 9/30/1999 9.6 8.0 8.4 6.5 9/30/2000 9.0 8.0 5.9 6.5 9/30/2001 6.3 8.5 1.1 6.Q 9/30/2002 (1.6} 8.5 1 l.8 b.0 9/30/2003 3.7 8.5 7.4 6.0 9/30/2004 3.9 8.5 16.4 6.0 9/30/2005 4.8 8.5 3.6 6.0 9/30/20(}6 b.5 8.5 9.7 6.0 9/30/2007 8.1 7.5 8.8 7.5 9/30/2008 3.6 7.5 13. 8 7. S 9I30/2009 4.4 7.5 1.Q 7.5 9/30/2010 5.6 7.5 7•7 7•5 Average for Years Shown 6.8 N/A 8.4 N/A * Actual raises during the year were less than l0A%. However, there was a problem of underreporting of compensation in the grevious year that resulted in the 11.5% average increase. The actual investment return rates shown above are based on the actuarial value of assets. The actual salary increase rates shown above are the increases raceived by those active members who were included in the actuarial valuations both at the beginning and the end of each year. GRS 15 Actual (A) Compared to Expected (E) Decrements Among Active Employees Number Added Serece & Active During DROP Disability Terminafions Members Year Year Retirement Retirement Death Vested Other Totals �dof Eaded A E A E A E A E A A A E Year 9/30/2002 10 5 2 4 0 0 0 0 1 2 3 2 90 9/30/2003 14 9 3 5 1 0 0 0 1 4 5 3 95 9/30/2004 10 7 2 6 1 0 0 0 2 3 4 3 98 9/30/2005 11 4 2 8 0 0 0 0 0 2 2 3 i05 9/30/2006 7 5 1 9 0 1 6 0 0 4 4 3 107 9/30/2007 5 5 3 6 0 1 0 0 1 1 2 3 107 9/30/2008 2 3 3 5 0 1 0 0 0 0 0 3 146 9/30/2009 5 7 6 8 0 1 0 0 1 0 1 3 104 9/30/2010 3 14 11 5 0 1 0 0 1 2 3 3 93 9/30/2011 2 1 0 Z 9 Yr Totals * 67 59 33 56 2 5 0 0 6 18 24 26 * Totals are through current Plan Year onJy. GRS 4 1 � R�lCIIVT HIS TORY �F R�3QUIRID AND ACTUAL CONTRiBUTIONS Required Contributions md of Year To �ayer & State �timatedState Net bnployer Actual Contribudons Wluch Valuation Valu�tion % of % of % of Date A'es �unt Pa oll Amount Pa dl Amount Pa oll �inpioyer State Total i0/1/1993 9/30/1994 $242,083 8.36 % $135,153 4.67 % $106,930 3.69 % $117,381 $151,324 $268,745 10/1/1994 9/30/1995 244,317 7.76 148,072 4.7Q 96,245 3.06 96,245 162,247 258,492 l0/1/I995 9/30/1996 404,856 12.02 162,247 4.82 242,609 7.20 242,609 195,597 438,20 10/1/1996 9/30/1997 438,074 12.24 195,597 5.47 242,477 6.78 242,477 227,106 469,583 10/1/1997 9/30/1998 592,522 15.30 227,106 5.86 365,416 9.44 365,41b 235,819 6(}2,235 10/1/1998 9/30/1999 760,142 16.98 235,819 5.27 524,323 i1.71 524,323 236,636 760,95 10/1/1999 9/30/2000 853,790 18.09 235,819 5.00 b17,971 13.(}9 638,017 215,773 853,7 10/1/2000 9/30/2001 935,273 18.14 2I5,773 4.18 7I9,500 13.95 719,500 225,892 945,39 10/1/2001 9/30/2002 1,W5,662 20.49 225,892 4.60 779,770 15.89 779,770 235,818 1,O1S,58 10/1/20(?2 9/30/2003 1,425,328 25.58 235,818 4.23 1,189,510 2135 1,189,510 235,818 1,425,328 10/i/2002 9/30/2004 1,475,340 25.58 235,818 4.09 1,239,522 21.49 1,239,522 235,818 1,475,3 10/1/2003 9/30/2005 1,704,041 27.49 235,818 3.80 1,468,223 23.b4 1,468,223 235,818 ],704,041 10/I/2004 9/30/2006 1,931,054 27.62 235,818 3.37 1,695,236 24.25 1,695,236 412,644 2,107,88 10/1/2005 9/30/2007 3,176,791 41.86 412,644 5.44 2,764,147 3b.42 2,764,147 412,b44 3,17f,791 10/1/2006 9/30/2008 3,556,548 40.70 412,644 4.72 3,143,904 35.98 3,143,904 412,644 3,556,54 10/1/2007 9/30/2009 3,762,323 40.19 412,b4�4 4.41 3,349,679 35.78 3,349,679 412,644 3,762,323 10/1/2008 9/30/2010 4,368,612 42.27 412,644 3.99 3,955,968 38.28 3,955,968 412,644 4,368,612 10/1/2009 9/30/2011 4,298,216 44.06 412,6G4 4.23 3,885,572 39.83 --- -- --- l0/1/2010 9/30/2012 4,198,183 47.04 412,644 4.b2 3,785,539 42.42 -- --- -- � rn 17 ACTUARIAL ASSUMPTION5 AND COST METHOD Valuatiou Methods Actuarial Cost Method - Normal cost and the allocation of benefit values between service rendered before and after the valuation date were determined using an Individuat Entry-Age Actuarial Cost Method having the following characteristics: (i) the annual normal cost for each individual active member, payable from the date of employment to the date of retirement, is sufficient to accumulate the value of the member's benefit at the time of retirement; (ii) each annual normal cost is a constant percentage of the member's year by year projected covered pay. Actuarial gains/(losses), as they occur, reduce (increase) the Unfunded Actuarial Accrued Liability. Financing of Unfunded Actuarial Accrued Liabilities - Unfunded Actuarial Accrued Liabilities (full funding credit if assets exceed liabilities) were amortized by levei (principal & interest combined} percent-of-payroll contributions over a reasonable period of future years. Actuarial i�alue of Assets - The Actuarial Value of Assets phase in the difference between the expected actuarial value and actual market value of assets at the rate of 20% per year. The Actuarial Value of Assets will be further adjusted to the extent necessary to fall within the corridor whose lower limut is 80% of the Market Value of plan assets and whose upper limit is i20% of the Market Value of plan assets. During periods when investment perfonnance exceeds the assumed rate, Actuarial Value of Assets wili tend to be less than Market Value. During periods when investment performance is less than assumed rate, Actuarial Value of Assets will tend to be greater than Market Value. Valuation Assumptions The actuarial assumptions used in the valuation are shown in fhis Section. Economic Assumptions The investment return rate assumed in the valuation is 7.5% per year, compounded annually {net after investment expenses}. The Wage Infladon Rate assumed in this valuation was 3% per year. The Wage Inflation Rate is defined to be the portion of total pay increases for an individual that are due to macro economic forces including productivity, price inflation, and labor market conditions. The wage inflation rate does not include pay changes related to individual merit and seniority effects. The assumed real rate of return over wage inflation is defined to be the portion of total investment return that is more than the assumed wage inflation rate. Considering other economic assumptions, the 7.5% investment retum rate translates to an assumed real rate of return over wage inflation of 4.5%. GRS 18 The rate of salary increase used for individual members is 7.5% per year. Part of the assumption is for merit and/or seniority increase, and the other 3% recognizes wage inflation, including price inflation, productivity increases, and other macroeconomic forces. This assumption is used to project a member's current salary to the salaries upon which benefits will be based. Reported base pay for new hires is increased by 15% to allow for overtime pay in the first year of employment. For purposes of financing the unfunded liabilities, total payroll is assumed to grow at 5% per year. The most recent ten-year average is S.1 %. Demographic Assumptions The mortality table was the RP -2000 Generational Mortality Table for males and females. Sample Probability of F�ture Life Attained Dying Next Year Expectancy (years) Ages {in 2010) Men Women Men Women 50 0.18 % 0.14 % 33.90 35.42 55 0.30 0.25 28.79 30.47 60 65 70 75 80 0.57 1.11 1.91 3.29 5.82 0.48 0.92 1.59 2.59 4.28 23.88 25.70 19.30 21.22 15.14 17.12 11.43 13.41 8.28 L0.14 This assumption is used to measure the probabilities of each benefit payment being made after retirement. For active members, the probabilities of dying before retirement were based upon the same mortality table as members dying after retirement (75% of deaths are assumed to be service-connected). For disabled retirees, the regular mortality tables are set forward 5 years in ages to reflect impaired longevity. GRS 19 The rates of retirement used to measure the probability of eligihle raembers retiring during the next year are as follows: S e r v 1 c e 42-45 46 10 Q(P/o Q(P/o 11 QOP/o QCP/ f2 QOP/o QCP/o 13 Q(P/ QfP/o 14 Q(P/o Q�/o 15 Q(P/o Q�/o 16 Q�/o Q�/o 17 (1(P/o Q(P/ �S Q�� Q�� 14 O.CP/o QO'/o � �.�/o i1.�/o 21 5.�/0 5.0% 71 5.(P/o 5.0% 23 5.(P/o 5.0% 2q S.(P/o 5.(P/o 25 lOQOP/ IflQO% 47 48 49 Qip/o Q�/o Q(P/o QCP/o 0.(P/o 0.(P/o Qd'/a 0.(P/o Q(P/o QU�/o Q�P/o QO% 0.�/o OOP/o QOP/ R0�/o QOP/o QO% Q�/o Q�/a Q�% QO% Q(P/o QQ'/o Q�/o Q�/o �.�/o Qff/o 0.(P/o Q(P/o 7L9% 7L5% i2�/o 5.(P/ lQ(P/o IQOP/o 5.(P/o IQCP/o 1QfP/o 5.(1% IQ�/o 1QfP/o 50% 1QEP/o 1Q(P10 ]00.(P/o 100.CP/o IOQIP/o so s� sz ss sa ss s6 s� 25% 29% 2Q(P/ 2Q0% 2Q(P/o 55.(P/o bS.IP/o b5.0°% 25% 25% !QO% 10.0% 1Q0% 47.�/o S7S% E0.0% 25% 2.5% 1QCP/o IA(P/o IRO% 47.5% 57S% 6Q(P/o 25% 25% 1Q(P/o !U.(P/o f0,(P/o 47.5% 57�/0 60.(Ph ZS% 2�/0 1Q�/o ]QO% 10.(I% 47.�/a 579'/0 6[l.(P/o 29% Z9% 1QCP/o ]0.(P/ !Q(P/o 47.5°/a 57.�/0 6Q(P/o 25% 1�/0 10.FP/o 1Q(P/ 10.0% 47.�/0 57.5% 600"Yo 25% 25% 1Q(P/o 1Qd'/o 1Q(P/o 47.5% 57.�/ 6QCP�6 25% 2�/0 1Q(P/o 1Q�/o 10.CP/o 47S% 57.9% 6QfP/o 29% 25% 1Q(P/o 10.(P/o 1Q0�/o 47S% 575% 60.(Pk 25.�/0 27.5% 3(10�/0 40.(P/o 45.fA/o 70.0% �.fP/o 84{Pk IZS% t25% 125% 15.(P/o IS.OP/o 47,5% (i5.1P�o b5.(P/o 129°/ 125% 12.5% 15.0'/0 15.(P/ 47.9/0 65.0'/0 (z5.(P/o ]5(P/o I5.(P/o [5.�/0 15.0% 15.(P/o 47.5% 65.OP/o Q5.0% 1SfP/o 1SlP/o I5.(P/a 15.0% 15.0% 47.9% GS.O% 65.� 1011IP/o IOQ�/o 30Q(P/o IOQ(P/o lOQ(P/o 1009'/0 100.(P/o IOQO% 5tl 5Y W G5.(P/o CS.OP/o 1000% 6QlP/o R�(1% ]001��/0 60.P/o fJd(P/o ]OQOP/o fQ�/o f1Q�% 1��/e CQO�/o EQ(P/o 10(1{P/o EQO% bQCP/o ►OQ(P/o 6Q�/e 6QCP/o 100.�/0 60.(P/o 6(1CP/o IOD.(P/o 60.(P/o fA(P/o 100.0% 6Q(1% 6QiP/o lOQO% 8Q(P/o �1(P/o 1CQ0% 65.CP/o 65.(P/o lOQO% 65.OP/ b5.0"/0 106.(P/o 6$.{P/o b5.0% 1aD.0% 65.IY/o 66.0% ]O(liP/o IOQfP/o 1Q1.0% ]O(10% Rates of separation from active membership were as shown below (rates do noi apply to members eligible to retire and do not include separation on accoun,t of death or disability). This assumption measures the probabilities of inembers remaining in employment. Sample % of Active Members Ages Separating Within Next Year 20 6.0 % 25 5.7 30 5.0 35 3.8 4Q 2.6 45 50 55 1.G 0.8 0.3 Rates of disability among active members (75% of disabilities are assumed to be service-connected). Sample % Becoming Disabled Ages within Next Year 20 0.21 % 25 0.23 30 0-27 35 0.35 4p 0.45 45 50 55 GRS 0.77 1.50 2.32 � Miscellaneous and Technical Assumgtions Administrative & Investment The investment return assumption is intended to be the return net of Expenses investment expenses. Annual administrative expenses are assumed to be eyual to the average of the prior two years' expenses. Assumed administrative expenses are added to the Normal Cost. Benefit Service Decrement Operation Decrement Timing Exact fractional service is used to determine the amount of benefit payable. Disability and mortality decrements operate during retirement eligibility. Decrements of all types are assumed to occur at the beginning of the year. Eligibility Testing Eligibility for benefits is deternuned based upon the age nearest birthday and service nearest whole year on the date the decrement is assumed to occur. Forfeitures For vested sEparations from service, it is assumed that 0% of inembers separating will withdraw their contributions and forfeit an employer financed benefit. It was further assumed that the liability at termination is the greater of the vested deferred benefit (if any) or the member's accumulated contributions. Incidence of Contributions Employer contributions are assumad to be made in equal installments at the end of each quarter. Member contributions are assumed to be receivec3 continuously throughout the year based upon the computed percent of payroll shown in this report, and the actual payroll payable at the time contributions are made. Liability Load Projected normal and early retirement benefits are Ioaded by 6% to allow for the inciusion of unused sick and vacation pay in final average earmngs. Marriage Assumption 100% of males and 1Q0% of females are assumed to be married for purposes of death-in-service benefits. Male spouses are assumed to be three years older than fem.ale spouses for active member valuation purposes. Normal Form of Benefit A 10-year certain and life annuity is the normal form of benefit. Pay Increase Timing Middle of fiscal year. This is equivalent to assuming that reported pays represent amounts paid to members during the year ended on the valuation date. Service Credit Accruals l� ��: It is assutned that members accrue one year of service credit per year. Actuarial Accrued Liability (AAL) zi cLOSS�Y The difference between the Actuarial Present Value of Future Benefits, and the Actuarial Present Value of Future Normal Costs. Actuarial Assumptions Assumptions about future plan experience that aifect costs or liabilities, such as: mortality, withdrawal, disablement, and retirement; future increases in salary; future rates of investtnent earnings; future investment and administrative expenses; characteristics of inembers not specified in the data, such as marital status; characteristics of future members; future elections made by members; and other items. Actuarial Cost Method Actuarial Equivalent A procedure for allocating the Actuarial Present Value of Future Benefits between the Actuarial Present Value of Future Nornial Costs and the Actuanial Accrued Liability. Of equal Actuarial Present Value, determined as of a given date and based on a given set of Actuarial Assumptions. Actuarial Present Value The amount of funds required to provide a payment ar series of payments (APi7 in the future. It is detemuned by discounting the future payments with an assumed interest rate and with the assuxr�ed probability each payment will be made. Actuarial Present Yalue of The Actuarial Present Value of amounts which are expected to be paid at Future Benefits (APVFB) various future times to active members, retired members, beneficiaries receiving benefits, and inactive, nonretired members entitled to either a refund or a future retiremeni benefit. Expressed another way, it is the value that wou�d have to be invested on the valuation date so that the amount invested plus investment earnings would provide sufficient assets to pay all projected benefits and expenses when due. Actuarial Valuation The determination, as of a valuation date, of the Nornial Cost, Actuarial Accrued Liability, Actuarial Value of Assets, and related Actuarial Present Values for a plan. An Actuarial Valuation for a governmental retirement system typicaliy also includes calculations of itetns needed for compliance with GASB No. 25, such as the Funded Ratio and the Annual Required Contribution (ARC}. Actuarial Value of Assets 'The value of the assets as of a given date, used by the actuary for valuation purposes. This may be the market or fair value of plan assets or a smoothed value in order to reduce the year-to-year volatility of calculated results, such as the funded ratio and the actuarially required contribution (ARC). GRS 22 Amortization Method A method for detemuning the Amortization Payment. 'The most common methods used are level dollar and level percentage of payroll. Under the Level Dollar method, t3ie Amortization Payment is one of a stream of payments, all equal, whose Actuarial Present Value is equal to the UAA.L. Under the Level Percentage of Pay method, the Amortization Payment is one of a stream of increasing payments, whose Actuarial Present Value is equal to the UAAL. Under the Level Percentage of Pay method, the stream of payments increases at the rate at wluch total covered payroll of all active members is assumed to increase. Amortization Payment Amortization Period That portion of the plan contribution or ARC which is designed to pay interest on and to amortize the Unfunded Actuarial Accrued Liability. The period used in calculating the Amortization Payment. Annual Required The employer's periodic required contributions, expressed as a dollar Contribution (ARC) amount or a percentage of covered plan compensation, determined under GASB No. 25. The ARC consists of the Employer Normal Cost and Amortization Payment. Closed Amortization Period A specific number of years that is reduced by one each year, and declines to zero with the passage of time. For example if the amortization period is initially set at 30 years, it is 29 years at the end of one year, 28 years at the end of two years, etc. Employer Norma! Cost The portion af the Normal Cost to be paid by the employer. This is equal to the Normal Cost less expected member contributions. Equivalent Single For plans that do not establish separate amortization bases (separate Amortization Period components of the UAAL), this is the same as the Amortization Period. For plans that do establish separate amortization bases, this is the period over which the UAAL would be amortized if a11 amortization bases were combined upon the current UAAL payment. Experience Gain/Loss A measure of the difference between actual experience and that expected based upon a set of Actuarial Assumptions, during the period between two actuarial valuations. To the extent that actual experience differs from that assumed, Unfunded Actuarial Accrued Liabilities emerge which may be larger or sznaller than projected. Gains are due to favorable experience, e.g., the assets earn more than projected, salaries do not increase as fast as assumed, members retire later than assumed, etc. Favorable experience mear�s actual results produce actuarial liabilities not as large as projected by the actuarial assumptions. On the other hand, losses are the result of unfavorable experience, i.e., actual results that produce Unfunded Actuarial Accrued Liabilities which are larger than proj ected. GRS 23 Funded Ratio The ratio of the Actuarial Value of Assets to the Actuarial Accrued Liability. GASB Governmental Accounting Standards Board. GASB No. 2S and These are the govemmental accounting standards that set the accounting GASB No. 27 n�les for public retirement systems and the employers that sponsor or contribute to them. Statement No. 27 sets the accounting rules for the empIoyezs that sponsor or contribute to public retirement systems, while Statement No. 25 sets the rules for the systems themselves. Normal Cost The annual cost assigned, under the Actuarial Cost Method, to the current plan year. Open Amortizatron Period An open amortization period is one which is used to determine the Amortization Payment but which does not change over time. In other words, if the initial period is set as 30 years, the same 30-year period is used in determining the Amortization Period each year. In theory, if an Open Amortization Period is used to amortize the Unfunded Actuarial Accrued Liability, the UAAL will never completely disappear, but will become smaller each year, either as a dollar amount or in relation to covered payroll. Unfunded Actuarial Accrued The difference between the Actuarial Accrued Liability and Actuarial Liability Value of Assets. Yaluation Date The date as of which the Actuarial Present Value of Future Benefts are deternuned. The benefits expected to be paid in the future are discounted to this date. GRS SECTION C PENSION FUND INFORMATION �L Statement of Plan Assets at Market Value Se pte mbe r 30 Item 2010 2009 A. Cash and Cash Equivalents (4peratuig Cash) $ 166,240 $ 122,2$8 B. Receivables: 1. Member Contnbutions 2. Ernployer Contr�butions 3. State Contributions 4. Investment Income and Other Receivables 5. Total Receivables C. Investments I. Short Term Investments 2. Domestvc Equities 3. International Equities 4. Domestic Fixed Income 5. International Fixed Income 6. Real Estate 7. Private Equiry 8. TotalInvestments D. Liabilities 1. Benefrts Payable 2. Accrued Expenses and Other Payables 3. Total Liabilities E. Total Maricet Value of Assets Ava�7able for Benefits F. Reserves l. State Contnbution Reserve 2. DROP Accounts 3. Total Reserves G. Market Value Net of Reserves H. Allocation of Investments 1. Short Tertn Investments 2. Domestic Equities 3. International Equities 4. Domestic Fixed Income 5. International Fixed Tncome 6. Real Estate 7. Private Equity 8. TotalInvestments �i7 ►A: $ 86,565 243,209 $ 329,774 $ 2,389,830 19,008,381 3,�468,678 14,677,672 1,428,171 $ 89,520 837,420 44b,982 185,341 $ 1,559,2b3 $ 1�46,598 17,031,843 2,483,b22 10,928,088 $ 40,972,732 $ 32,390,151 $ - (41,854} ^ $ (41,854) $ 41,426,892 $ (482,519} (2,054,5 � $ (2,537,06b) $ 38,889,826 5.8% 46.4% 8.5% 35.8% 3.5% 0.0% 0.0% 100.0% $ - (39,449) $ (39,449) $ 34,032,253 $ (459,331) (1,055,498} � $ (1,514,829) $ 32,517,424 6.0% 52.6% 7.7% 33.7% 0.0% Q.0% 0.0% 100.0% 24 25 Reconciliation of Plan Assets September 30 Ite m 2010 2009 A. Market Vahxe of Assets at Begmniug of Year $ 34,032,253 $ 28,344,073 B. Revenues and Expendi�zres 1. Contnbutions a. Member Contnbutions b. Employer Contnbutions c. State Contnbutions d. Total $ 802,883 $ 870,581 3,955,968 3,349,b79 435,832 446,982 $ 5,194,683 $ 4,667,242 2. Invest�nent Income a. Interest, Dividends, and Other Income $ 760,191 $ 525,578 b. Net Realized/Unrealized Gams/(Losses)* 2,895,214 1,610,712 c. Investment Expenses {139,283) (I15,708) d. Net Investment Income $ 3,516,122 $ 2,020,582 3. Benefits and Refunds a. Regular Monthly Bene£'xts b. Refunds c. Lump Sum Benefits d. DROP Distnbutions e. Total 4. Administrative and Miscellaneous Expenses 5. Transfers C. Market Vah�e of Assets at End of Year $ (1,105,160) $ {895,008} (27,142) - (91,000) - $ (1,223,302) $ (895,008) $ (92,864) $ (104,636} $ - $ - $ 41,426,892 $ 34,032,253 D. Resezves 1. State Conmbution Reserve $ (482,519) $ {459,331) 2. DROP Accounts 2,054,54 _ (1,055,498) 3. Tota1 Reserves $ (2,537,066) $ (1,514,829) E. Market Value Net of Reserves $ 38,889,826 $ 32,517,424 * Breakdown between realized and unrealized gainsl(losses) was not provided. GRS Ye ar Ende d 9/30 2002 2003 2004 2005 2006 2007 2008 2009 2010 GRS Reconciliation of DROP Accounts Salance at Be ginneng ofYear Cs-edits Interest Distributious Ad'ustments $ - $ 25,536 $ 559 $ - $ - 26,095 35,048 962 {33,734) - 28,371 67,278 4,21fl - - 49,859 107,716 9,307 (54,224) - 162,b58 88,332 13,b53 - - 264,643 164,844 22,183 - - 451,670 �188,434 24,255 (215,043) 2,665 451,981 SS7,339 46,178 - - 1,055,498 993,753 96,296 (91,000) - 26 Balance at End of Ye ar $ 26,095 28,371 99,859 162,b58 264,643 451,670 451,981 1,055,498 2,054,547 27 Calculation of Actuarial Value of Assets YearErtding September3� Item 2010 2009 A. Begnuiing of Year Assets* 1. Market Value $ 34,032,253 $ 28,344,073 2. Actuarial Value 38,349,451 33,138,248 B. End of Year Market Value of Assets* 41,426,892 34,032,253 C. Net of Contnbutions L,ess Disbursements 3,878,SI7 3,6b7,598 D. Actual Net Investment garnn�gs 3,S16,i22 2,020,582 E. Expected Investment ��gs 3,021,653 2,622,904 F. End of Year Expected Actuarial Value 45,249,62i 39,428,750 G. End of Year Market Value Less Expected Actuarial ValeYe: B- F (3,822,729) {5,396,497} H. 20% of Difference {764,54� (i3O�9,299) I. End of Year Assets 1. Actuarial Value: F -� H 44,485,075 38,349,451 2. Final Actuarial Value Within 80% to 120% of Market Value 44,485,075 38,349,451 J. DROP Account Balances 2,054,547 1,455,498 K. State Contnbution Reserve 482,519 459,331 L. Final Actuarial Value of Assets: I2 - J- K 41,948,009 36,834,b22 M. Recognized Investrnent Earnings 2,257,107 1,543,605 N. Recognized Rate of Return 5.6% 4.4% * Before offset of DROP Account Balances and State Contribution Reserve. GRS Year Ending Investmen# Rate ofReturn September 30 Market Value * Actuarial Value 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2Q03 2004 2Q05 2006 2007 2008 2009 2010 Average Returns: Last 5 Years L.ast 10 Years All Years 9.1 % 8.6 8.2 8_8 2.4 18.2 5.2 24.2 5.3 11.6 6.7 (7.8) (6.5) 12.7 8.6 9.6 6.4 11.5 (13.9) 6.7 �• 3.7 % 3.3 % 6.6 % * Net of investment expenses after 2005. 9.1 % 8.6 8.2 8.8 2.4 18.2 5.2 10.3 9.2 9.6 9.0 6.3 (1.6) 3.7 3.9 4.8 6.5 8.1 3.6 4.4 5.6 5.6 % 4.5 % f.8 % 28 The above rates are based on the retirement system's financial information reported to the actuary. They may differ from figures that the investment consultant reports, in part because of differences in the handling of administrative and investment expenses, and in part because of differences in the handling of cash flows. GRS SECTION D FINANCIAL ACCOUNTING INFORMATION GRS FASB NO. 3S INFORMATION A. Vahiation Date B. Actuarial Present Value of Accumulated Plan Benefrts 1. Vested Benefrts a. Members Currently Receiv�g Payments b. Terminated Vested Members c. Other Members d Total 2. Non Vested Benefits 3. Total Actuarial Present Value of Accumuiated Plan Benefits: ld + 2 4. Accumulated Contnbutions of Active Members C. Changes m the Actuarial Present Value of Accumulated Plan Beneirts 1. Total Value at Beginn�g of Year 2. Increase (Decrease) During the Period Attributable to: a. Plan Amendment and Change in Actuarial Assumptions c. Latest Member Data, Benefits Accumulated and Decrease m the Discount Period d. Beneirts Paid e. Net Increase 3. Total Value at End of Period D. Market Value of Assets E. Actuarial Assumptions - See page entitled Actuarial Assumptions and Methods GRS 29 October 1, 2010 � October 1, 2009 $ 31,228,890 $ 20,034,486 232,016 0 27,248,069 32,708,315 58,708,975 52,742,801 1,872,49b 1,698,204 60,581,471 5,275,526 54,441,005 � 7,363,768 (1,223,302} 6,140,466 60,581,471 38,889,826 54,441,005 5,775,810 48,517,549 ,ri7 6,818,464 (895,008} 5,923,456 54,441,005 32,517,424 �J � SCHEDULE OF FUNDING PROGRESS (GASB Statement No. 25) Actuarial Accrued Acluarial Value of Liability (AAL) - Fhtry UAAL As % of Actuarial �Se� Age Unfunded AAL (UAAL) FS�ndedRatio Co�ered Payroll Co�+ered Payroll ValvaHon Date (a) @) (b) - (a} (a) / (b) (c) {b - a) / c 10/1/1993 $ 2,424,981 $ 2,479,049 $ 54,068 97.8 %$ 2,89b,359 1.9 % 10/ 1/ 1994 2,7 i 4,651 2,552,412 (162,239) 106.4 3,148,412 (5.2) 10(1/1995 3,517,565 3,807,393 289,828 92.4 3,367,324 8.6 10/1/1996 a,443,592 4,855,280 41t,688 91.5 3,578,473 11.5 10/1/1997 5,511,310 6,954,077 1,442,767 79.3 3,872,799 37.3 10/1/1998 6,700,726 8,988,231 2,287,505 74.5 4,476,807 51.1 10/1/1999 8,i62,736 11,019,072 2,856,336 74.1 4,720,813 60.5 10/1/2000 9,795,534 14,097,068 4,301,534 69.5 S,15b,136 83.4 10/1/2001 11,417,844 16,106,731 4,688,887 70.9 4,908,315 95.5 10/1/2002 12,303,48b 19,140,962 6,837,476 b4.3 5,572,514 122.? 10/1/2003 14,231,515 22,196,413 7,964,898 641 5,989,146 133.� 10/1/2004 16,405,794 24,962,551 8,556,757 65.7 6,755,078 126.7 10/1/2005 18,950,104 35,004,203 16,054,O99 54.I 7,332,448 218.9 10/l/2006(b) 22,405,305 40,789,521 18,384,216 54.9 8,382,256 219.3 10/1/2006 (a} 22,740,838 46,503,218 23,762,380 48.9 8,322,332 285.5 10/1/2007 27,799,386 52,230,511 24,431,125 53.2 8,915,563 274.0 10/ 1/2008 32,261,274 60,45Q441 28,189,167 53.4 9,842,874 286.4 36/1/2009 36,834,622 65,550,027 28,715,405 56.2 9,290,829 309.1 10/1/2010 41,948,009 71,341,740 29,393,731 58.8 8,499,722 345.8 {a) = After changes (b) = Before changes w 0 SCHEDULE OF CONTRIBUTiONS FROM THE EMPLOYER AND THE STATE OF FLORIDA (GASB Statement No. 25) Year Ending Annual Required Actual Percentage Se tember 30 Coutribution Coutribation Contributed 1994 $ 242,083 $ 268,705 111.0 % 1995 244,3I7 258,492 105.8 199b 944,856 438,206 108.2 1997 438,074 469,583 107.2 1998 592,522 601,235 i01.5 1999 760,142 760,959 100.1 2000 853,790 853,790 100.0 2001 935,273 945,392 101.1 2002 i,005,662 1,015,588 101.4 2003 1,425,328 I,425,328 1Q0.0 2004 1,475,340 1,475,340 100.0 2005 1,704,041 1,704,041 100.0 2p06 1,931,05� 2,107,880 109.2 20(?7 3,176,791 3,176,791 100.0 2008 3,556,548 3,556,548 100.0 2p09 3,762,323 3,762,323 100.0 2010 4,368,612 4,368,612 100.0 GRS 31 ANNUAL PENSION COST AND NET PENSION OBLiGATION {GASB STATEMENT NO. 27) Employer FYE September 30 Annual Requ�ed Contnbu#ion (ARC)* Interest on Net Pension Obligation (NPO) Adjustment to ARC Annual Pension Cost (APC) Contr�bntions made Increase (decrease} m NPO NPO at beguuvng of year NPO at end of year * Includes expected State contnbution. ** To be determined. 2011 $ 4,298,21b ( i 5,858) (2b,320) 4,308,678 *x� ** (211,435) �* 2010 $ 4,368,b12 (16,722) (28,243) 4,380,133 4,368,612 i 1,521 (222,95fi) (211,435) THREE YEA.R TREND INF�RMATION 32 2009 $ 3,762,323 (17,53'n (28,40'� 3,773,193 3,762,323 ia,g�o (233,826) {222,956} Fiscal Annual Pension Actual Percentage of Net Pension Year Endin Cost APC Contnbution APC Contnbuted Ob ' ation 9/30/2008 $ 3,567,231 $ 3,556,548 99.7 % $ (233,826) 9/30/2009 3,773,193 3,762,323 99.7 (222,956} 9/30/2010 4,380,133 4,368,b12 99.7 211,435 GRS 33 REQUTRED SUPPLEMENTARY INFORMATION GASB Statement No. 25 and No. 2'7 The information presented in t1�e required supplementary schedules was determined as part of the actuarial valuations at the dates indicated. Additional information as of the latest actuarial valuation: Vaivation Date Contribntion Rates Employer (and State) Plan Members Actuarial Cost Method Amortization Method Rernaining Amortization Period Asset Valuation Method Actuarial Assumptions Investment rate of return Projected salary increases Includes inflation and other general increases at Cost-of-living adjustments \i� \w: October 1, 2010 47.04% 8.b0% Entry Age Normal Level percent, closed 26 years Recognizes 20% of diffezence between rnarket value of assets and expected actuarial asset value 7.S% 7.5% 3.0% Not Applicable SECTION E MISCELLANEOUS INFORMATION GRS RDCONCILIATIUN OFIVIQVIBIItSH� DATA FYom 10/1/09 ki�om 10/1/08 To 10/1/10 To 10/1/09 A. Aca� Memhers 1. Nomberincluded in Last Valuation 104 i06 2. New Members 3 `� 3. Non-Vested Fanployment Temiinations (2) � 4. Vested Frnplayment Terminations (1) (1) 5. Service Retirements 0 0 6. DROP Retirement (11) (b) 7. Disability Retirements 0 0 8. Deaths � � 9. OEher-- Data Corrections 0 1 10. Number Included 'm This Valuation 93 104 B. TerminatedVestedMembers 1. Number Included in I.ast Valuation 0 0 2. Additions from Active Members 1 � 3. Lump SumPayments/Refund ofContributions 0 (1) 4. Payments Corrgnenced � 4 5. Deaths 0 a 6. Other Q Q 7. Number Included in This Valuation 1 � C. DROP Plan Members 1. Number Included in Last Valuation 9 4 2. Additions from Active Membeis 11 6 3. Retirements (5} (1} 4. Deaths Resuhing in No Further Payrr►ents � a 5. Other 0 0 b. Number Included in This valuation 15 9 D. ServiceRefirees,DisabilityRetireesandBeneficiaries 1. Number included in Last Valuation z6 26 2. Additions fromActive Members 0 0 3. Additions fromTerminated Vested Merrd�e�s 0 0 4. Additions from DROP 5 1 5. Deaths Resulting in No Further Payments (1) (1) 6. Deaths Itesulting in New SurvivorBenefits fl o 7. Fnd of Certain Period - No Fu�ther Payments 0 0 8. Other 0 0 9. Number Included in This Valuation 30 26 � 34 ?0-24 NO. I'OT PAY AVG PAY ?5-29 Np. I'OT PAY AVG PAY 34-34 NO. TOT PAY AVG PAY 35-39 NO. i'OT PAY AVG PAY 40-44 NO. 1"01' PAY AVG PAY 45-49 NO. TOT PAY AVG PAY 50-54 NO. TOT PAY AVG PAY 55-59 NO. TOT PAY AVG PAY 60-64 NO. TOT PAY AVG PAY 65-69 N0. TOT PAY iAVG PAY 0-1 ACTIVE PARTICIPANT DISTRIBUTION 35 Years of Service to Valuation Date 3-4 4-5 5-9 10-14 15-19 20-24 25 & Up Totals 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 I 1 4 2 0 0 0 0 0 51,404 62,826 245,075 135,525 0 0 0 0 0 51,404 62,826 61,269 67,763 0 0 0 Q 0 0 0 I ] 5 1 0 0 0 0 0 b8,945 74,654 377,281 67,889 0 0 0 0 0 68,945 74,654 75,456 67,889 0 0 0 1 0 1 l 13 6 3 0 0 57,747 0 7i,413 60,296 883,177 493,040 267,636 0 0 57,747 0 71,413 6Q296 67,937 82,173 89,2i2 0 1 0 0 0 2 3 6 6 1 49,364 0 0 0 132,881 220,002 492,392 661,517 114,095 49,369 0 0 0 66,44i 73,334 82,065 110,253 114,095 0 0 0 0 0 5 1 9 5 0 0 0 0 0 344,753 91,477 1,033,842 b91,948 0 0 0 0 0 68,951 9l,977 ] 14,871 138,�90 1 0 0 0 0 I 3 3 3 128,372 0 0 0 0 63,896 316,961 344,649 411,841 128,372 0 0 0 0 63,896 105,654 114,883 137,280 1 0 0 0 0 0 0 0 1 49,369 0 0 0 4 0 4 0 134,870 49,369 4 0 0 6 0 0 0 t34,870 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 �T N0. 3 2 1 6 6 27 17 21 l0 �T AMT 227,110 109,I51 62,82b 385,433 403,356 1,889,109 1,462,259 2,307,644 1,352,754 VG AMT 75,703 54,576 b2,826 64,239 67,226 69,967 86,015 104,888 135,275 GRS 6 588, 73, 0 2 0 1,833,30 0 73,33 0 1 0 1,670,25 0 87,9a 0 0 0 0 0 2,162,52C 108,12E 11 1,265,715 ] i5.06s 42,1 8,199,b 88,! 3b INACTIVE PARTICIPANT DISTRIBUTION Deceased with Terminated Vested Disabled Retired* Beneficia Total Total Total Total Age Group Nim►ber Benefits Number Benefrts Number Benefits Number Benefits Under 20 - - - - - - ' - 20-24 - - - - - - - - 25-29 - - - - - - - - 30-34 - - - - - - ` ' 35-39 1 49,452 - - - - - - 4a44 - - - - - - - - 45-49 - - I 23,392 14 1,231,467 - - Sa54 - - 4 109,676 4 2b9,003 - - 55-59 - - 4 121,903 5 331,469 1 33,777 6a64 - - 1 17,851 4 177,153 1 32,070 65-69 - - - - 5 214,787 - - 7(�74 - - - - 1 21,589 - - 75-79 - - - - - - - - 8a84 - - - - - - ' - 85-84 - - - - - - - - 90-94 - - - - - - ' - 95-99 - - - - - - - - I00 & Over - - - - - - ' - Total 1 49,452 10 272,822 33 2,245,468 2 55,847 vera e e 39 54 SS b0 * Does not include deferred supplemental benefits for DROP members GRS SECTION F SUMMARY OF PLAN PROVISIONS GRS SUMMARY OF PLAN PROVISIONS A. Ordinances 37 The Plan was establisheci under the Code of Ordinances for the City of Palm Beach Gardens, Florida, Chapter 50, Article III, and was most recently amended under Ordinance No. 8, 2006passed and adopted on June 15, 2006. The Pian is also governed by certain provisions of Chapter 185, Florida Statutes, Part VII, Chapter 112, Florida Statutes and the Intemal Revenue Code. B. Effective Date July l, 1972 C. Plan Year October 1 through September 30 D. Type of Plan Qualified, governmentai defined beneft retirement plan; for GASB pu�poses it is a single employer plan. E. Eligibility Requirements All full-tizne police officers are eligible for membership on the first day of the month coincident with or next following date of employment. F. Credited Service Service is measured as the total number of full years (and fraction thereof} of continuous service from the date of employment to the date of termination. No service is credited for any periods of employment for which the meznber received a refund of employee contributions. G. Compensallon Actual compensation reported to the Internal Revenue Service for income ta�c purposes, plus deferred compensation. H. Average Monthly Earnings (AME) The average of Compensation over the last 5 years of Credited Service; includes lump sum payment of unused leave pay. � I. Normal Retirement Eligibiiity: Benefit: Nonnal Form of Benefit: Supplemental Benefit: COLA: 38 A member may retire on the fust day of the month coincident with or next following the earlier of: (1) age 52 and 10 years of Credited Service, or {2) 20 years of Credited Service regardless of age. 3.5% of AME multiplied by years of Credited Service with a maxunum equal to 100% of AME. 10 Yeazs Certain and Life thereafter; other options are also available. A monthly supplemental benefit of $12.50 per year of Credited Service is payabte to all retirees and their beneficiaries in pay status. There are currently no annual cost of living increases, but ad hoc increases may be authorized by the Boazd of Trustees. Also see Section W, Cost of Living Increases. J. Early Retirement Eligibility: Benef t: Normal Form of Benefit: Supplemental Benefit: COLA: A member may elect to retire earlier than the Nor�nal Retirement Eligibility upon attainment of age SO and I O years of Credited Service. The Normal Retirement Benefit is reduced by 3.0% for each year by which the Early Reti�ement date precedes the Normal Retirement date. 10 Years Certain and Life thereafter; other options are also available. A monthly supplemental beneiit of $12.50 per year of Credited Service is payable to all retirees and their beneficiaries in pay status. There are currently no annual cost of living increases, but ad hoc increases may be authorized by the Board of Trustees. Also see Section W, Cost of Living Increases. K. Delayed Retirement Same as Normal Retirement taking into account compensation eamed and service credited until the date of actual retirement. L. Service Connected Disability Eligibility: Any member who becomes totally and pem�anently disabled and unable to render useful and efficient service as a poiice officer for a period of at least 6 months resulting from an act occurring in the performance of service for the City is eligible for a disability benefit. GRS � � Benefit: 60% of the current rate of pay, hut no less than the accrued Normal Retirement Benefit talang into account compensation earned and service credited until the date of disability. Disability benefits, when combined with Social Security, Worker's Compensation or any other locai, state or federal government benefits, cannot exceed and will be limited to the AME on the date of disability. Normal Form of Benefit: 10 Years Certain and Life thereafter; other options are also available. Supplemental Benefit: COLA: A monthly s�pplemental benefit of $12.50 per year of Credited Service is payable to all retirees and their beneficiaries in pay status. There are currently no annual cost of living increases, but ad hoc increases may be authorized by the Board of Trustees. Also see Section W, Cost of Living Increases. M. Non-Service Connected Disability Eligibility: Any member with 10 years of Credited Setvice who hecomes totally and pernlanently disabled ar�d unabie to render useful and efficient service as a police officer for a period of at least 6 months is eligible for a disability benefit. Benefit: 2.5% of AME multiplied by Credited Service, but not less than 25% of salary or the accrued Normal Retirement Benefit taking into account compensation earned and service credited until the date of disability. Disability benefits, when combined with Social Security, Worker's Compensation or any other tocat, state or federal government benefits, cannot exceed and will be limited to the AME on the date of disability. Normal Form of Benefit: 10 Years Certain and Life thereafter; other options aze also available. Supplemental Benefit: COLA: A monthly supplemental benefit of $12.50 per year of Credited Service is payable to all retirees and their beneficiaries in pay status. There are currently no annual cost of living increases, but ad hoc increases may be authorized by the Board of Trustees. Also see Section W, Cast of Living Increases. N. Death in the Line af Duty Eligibility: Members who die as a result of personal injury or disease arising out of the member's actual performance of duties are eligible for survivor benefits regardless of Credited Service. GRS .t Benefit: The surviving spouse will receive the greater of: (1) 50% of the member's AME, or (2) the member's accrued Nornial Retirement Benefit as of the date of death with no actuarial reduction for Eariy Retirement. If there is no spouse, or if the surviving spouse dies, the spouse's benefit determined above shall be distributed equally among any eligible children. If there is no spouse or eligible children, the benefit will be paid to the deceased member's estate. Normal Form of Benefit: Spouse's benefits are payable until death; children's benefits are payable untiI age 18 (24 if a full-time student), marriage, death, ar adoption. Benefits paid to a member's estate may be paid as a lump sum at the discretion of the Board of Trustees. Supplemental Benefit: COLA: A monthly suppiemental benefit of $12.50 per year of Credited Service is payable to all retirees and their beneficiaries in pay status. There are currently no annual cost of living increases, but ad hoc increases may be authorized by the Board of Trustees. Also see Section W, Cost of Living Increases. O. Other Pre-Retirement Death Eligibility: Members are eligible for survivor benefits after the com�pletion of 5 or more years of Credited Service. Benefit: The survivor benefit payable to the designated beneficiary is the member's accrued Normal Retirement Benefit. Benefit is payable at the member's Early or Norn�al retirement date and will be actaxarially reduced for Early Retirement when applicable. Normal Form of Benefit: Supplemental Benefit: COLA: For member's eligible for Normal or Delayed Retirement on the date of death, the designated beneficiary's benefit will be paid for life. For members not yet eligible, benefits will be paid for 10 years. A monthly supplernental benefit of $12.50 per year of Credited Service is payable to all retirees and their beneiiciaries in pay status. There are currently no annual cost of livit�g increases, but ad hoc increases may be authorized by the Board of Trustees. Also see Section W, Cost of Living Increases. The beneficiary of a plan member with less than 5 years of Credited Service at the tizne of death will receive a refund of the meznber's accumulated contributions without interest. GRS 41 P. Post Retirement Death Benefit deternuned by the form of benefit elected upon retirement. Q. Optional Forms In lieu of electing the Normal Form of benefit, the optionat forms of benefits available to all retirees are a Single Life Annuity or the 50%, 66 2/3%, 75% and 100% Joint and Survivor options. R Vested Termination Eligibility. A member has eamed a non-forfeitable right to Plan benefits after the completion of 5 years of Credited Service (see vesting table below). Years of Vested Credited Service % Under 5 fl% 5 25 6 40 7 55 8 70 9 85 10 or more 100 Benefit: The benefit is the mexnber's vested accrued Nornial Retirement Benefit as of the date of termination. Benefit hegins at the member's Normal Retirement date. Alternatively, members wiih at least 10 years of Credited Sen�ice may elect to receive an actuarially reduced Early Retirement Benefit any time after age 50. Norn�al Form of Benefit: Supplemental Benefit: COLA: 10 Years Certain and Life thereafter; other options are also available. A monthly supplemental benefit of $12.50 per year of Credited Service is payable to all retirees and their beneficiaries once in pay status. There are currently no annual cost of iiving increases, but ad hoc increases may be authorized by the Board of Trustees. Also see Section W, Cost of Living Increases. Members tenninating employment with Iess than 5 years of Credited Service will receive a refund of their own accumulated contributions without interest. GRS 42 S. Refunds Eligibility: All members terminating employnnent with less than 5 years of Credited Service are eligible. Optionally, vested members (those with 5 or more years of Credited Service) may elect a refund in lieu of the vested benefits otherwise due. Benefit: Reftuid of the member's contributions without interest. T. Member Contributions 8.6% of Compensation U. State Contributions Chapter 185 Premium Tax Refunds V. Employer Contributions Any additional amount needed to fund the plan properly according to State laws. W. Cost of Living Increases Actuarial gains realized for the prior fiscal year may be used to increase beneiits on July 1 st of each year for members who have been retired for at least 1 year. Upon approval by the Board of Trustees, the gain will be distributed to all pensioners as an equal percentage increase in their benefit, but is limited to 4% in any year. If there was no actuarial gain realized for the prior fiscal year, then no cost of Iiving adjustment will be authorized. X. 13�' Check Not Applicable Y. Deferred Retirement Option Plan Eiigibility: A member may enter the DROP on the first day of the month coincident with or next following the earlier of: (1) age 52 and 10 years of Credited Service, or {2) 20 years of Credited Service regardless of age. Members who meet eligibility must submit a written election to participate in the DROP. The election to participate must be made within the first 28.5 years of Credited Service and members can no longer participate after attaining 33.5 years of employment service. Benefit: The member's Credited Service and AME are frozen upon entry into the DROP. The monthly retirement benefit as described under Normal Retirement is calculated based upon the frozen Credited Service and AME. GRS 43 Ma�cimum DROP Period: 6Q months Interest Credited: The xnember's DROP account is credited quarterly at an interest rate based upon the option chosen by the member. Members rnust elect from 1 of the 2 following options: 1. Gain or loss at the same rate earned by the Plan, or 2. Guaranteed rate of 6.5% per annum. Normal Porm of Benefit: Lump Sum; member may also elect that the DROP distribution be paid in 3 equal payments over 3 years or used to purchase an annuity to be paid in monthly installments. COLA: There are currently no annual cost of Iiving increases, but ad hoc increases may be authorized by the Board of Trustees. Also see Section W, Cost of Living Increases. Z. Other Ancillary Benefits There are no ancillary retirement type benefits not required by statutes but which might be deemed a City of Palm Beach Gardens Police Officers' Pension Fund liability if continued beyond the availability of funding by the current funding source. AA. Changes from Previous Valu�tion There have been no changes in benefits since the previous valuation. GRS R Gabriel Roecier Smith & Company One East Broward Blvd. 954.S27.t616 ghone Consuttants & Aauaries Suite 505 954.525.0083 fax Ft. Lauderdale, FL 33301-1827 www.gabrielrceder.com 3anuary 24, 2011 Ms. Audrey Ross The Resource Centers, LLC 43b0 Northlake Blvd., Suite 206 Palm Beach Gardens, FL 33410 Re: Palm Beach Gardens Police Officers — Retiree Health Benefit Plan (VEBA) Dear Aadrey: In your January 11, 2011 ernail, you have asked us to provide a fec quote for the following services: i) Calculate the contribution amount for the four retired members who are cutrently participating in Ehe VEBA 2) Determine the retraactive contribution amount for ane retiree from 2QQ8 3) Calculate the refund amount for DROP members who have retired and who chose to discontinue participation in the VEBA. The fees for Items 1 and 2 woutd be$500. Please note that the Boazd will need to provide us with the contributian percentage and the pensionable eamings for each member. Additionally, we wiil need to be instructed whether or not to include interest on retroactive contributions for the retiree described in Item 2. The Board will need to make the determination on whethet or not refunds are payable to DROP members who discontinue VEBA participation when they exit the DROP. If the Board detennines that refunds are payable to such members, our fee would be$100 per member. In order to calculate the refund, we will nced to be provided with the exact amount the member contributed each year. Further, we will neeci to irnow whether or not ta includc interest in our calculations. We welcome your questions and comments. Sincerely, ! - J. Stephen Palmquist, ASA Senior Consultant & Acteiary JSP/ma Page 1 of 2 Audrey Ross From: Audrey Ross Sent: Tuesday, January 11, 2019 3:36 PM To: Steve.Palmquist@gabrielroeder.com Cc: 'jayspencer@beilsouth.net'; melissa.afgayer@gabrieiroeder.com; 'Trisha.Amrose@gabrielroeder.cam' Subject: PBG Pofice - VEBA Quote Attachments: VEBA List.xls H i Steve, Currently our office is calculating and deducting the VEBA contributions for the foltowing members an the attached spreadsheet from their monthly pension checks. The calculation wasJis pretty simple (so we thaught at first}. It is 2°10 of the members' annual pay far their last year employed, and that is how we came up with the attached spreadsheet. Then the question came up, what pay do you include (base, pensianable, etc} and then al1 the confusion began. At that point the pensian board felt that it should be the VEBA board's responsibility to do the calculation, and to just instruct our office with the dallar amount to deduct from the members' pension check. With that said Jay feels that VEBA board shau(d consider contracting your firm out to do the VEBA calculations for the attached members so that we can have the correct amounts. Now, Jay is nat on the VEBA board but he wants to be ahead of the game and be able to present the Trustees on the VEBA board with a quote, so that they can consider having a professionai do these calculations (and hopefully all future ca{culations as well}. I know there are still some questions that may need to be answered, but in the meantime I have attached the VEBA dacuments that were provided to me. This request is not coming from the VEBA board, but Jay wou{d like to be prepared as he knows that having yau do the calcuiations is one of the considerations that the VEBA board is fooking inta. Jay is just trying to assist the VEBA board with making the right decisions when it comes ta calculating benefits. In addition to calculating the VEBA deduction for the attached members, there are atso 2 other items/questions that Jay would like yau to include in the quote: 1. ]ay W'slbur retired on 6/22J2008 and when he was actively working he contributed into the VEBR, but when he retired he stopped contributing as he was not offered the optian to continue. If the 8oard was to go back and offer this member the choice to start contributing again and make up for the 2 years he didn't contribute, Jay would like you to guote how much it would cost to calculate what his current tontributian amaunt would be, and also the amount that he would have to pay to make up for the 2 years he was not contributing. 2. We have some members who recently exited the DROP and decided not to continue contributing to their VEBA anymare during their retirement. I would assume those members would receive a refund af what they did contribute when they were actively working. Can you please also include in your quote haw much it would cost to calculate a refund far a member? Please let me know if there will be any costs associated with preparing this quote that would need to be passed through before proceeding. Thanks so much in advance (Jay thanks you as well)!!! a ,`,_f January 27, 2011 CONFIDENTiAL Gabriel Roedec Smith & Company One East Browarb Blvd. 9�4.527.1616 phonr Consukants & Actuaries Suire 545 954.525.0083 fax Ft. Lauderdale, FL 33301-1827 www.gabriclroeder.com Ms. Audrey Ross Tha Resaurce Centers, LLC 4360 Northtake Blvd., Suite 206 Pa�n Btach Gardens, FL 334i0 Re: Paim Beach Gsrdens PoIice Qfficers' Pension Fund Dear Audrey: As requested, we have calculated the contributions that George Smith woutd have gaid if pension contrihutions were deducted from his earnings during his service as a police officer from May 13, I992 through April 30, I996. It is our understanding that pension contributions were not deducted during this time period, and the Boazd has decided to aliow Mr. Smith to pay the missad mGmbcr contributions to receive prior credited service under the Plan. We have calculated his member contributions from May 13, 2 992 through Apri130, 1996 to be $8,863.96. Please note that this figure does not include interest. Our calculation is based on the fallowing earnings informatian provided by the City: Calendar Year Earnings 1992 $31,345.17 1993 $34,921.03 1994 $37,557.b0 1995 540,79?.63 1996 $44,297.19 'I'�e City provided his eamings for the fiili caiendar years shown above. The partial years for 1992 and 1996 were noi available. Therefore, we estimated Ius partial yeaz earnings frorn May 13, 1992 through December 31, 1992 to be $19,590.73, by multiglying the annual amount shown above by ?.SII2. We �stimated his earnings from Jannary I, i946 through Apri130, 1946 to be $14,765.73, by multiplying the annnal amatuit shown above by 4112. Mr. Smith's total estunated earnings for the period from May 13,1992 through April 30, I996 ar� $147,732.72. The member contribution rate in effect during this period was 6%, and therefore, his total member contributians for this period would have been $8,863.9b. Ms. Audrey Ross Januat}+ 21, 2011 Page 2 We welcome your questions and comments. Sincerely, � .�,.,,�-�- ��� � L. . Stephen Palmquist, ASA Seniar Consultant & Actuary JSPtta Circuiar 230 Notice: Pursuant to regulatians issued by the IItS, to the e�ctent tMs communication (or any attachntent} concerns tax matters, it is not intended or written to be used, and cannoE be used, for the pwposc of (i} avoiding taac-reIated penaities under the Internal Revenue Code or (ii} mazketing or rocammending to another pazty any tax-related matter addressed within. Each taxpayer should seek advice based on the individua3's circumstances from an independent talc advisar. This communication shail not be construed to provide tau advice, legal advice or investment advice. Gabriei Roeder Smith & Company January 27, 2011 Board of Trustees Palm Beach Gardens Palice Officers' Pension Fund We have audited the financial statements af Pafm Beach Gardens Poiice Officers' Pension Fund {the "Fund") for the year ended September 30, 2010, and have issued our draft report. As required by auditing standards generally accepted in the United States of America (GAAS}, we are providing yau with the information shown below relative to the conduct of our audit. Our Sesponsibilltg under U.S. Generally Accepted Audittng Standards and 6oPernmeatAuditingStandards As stated in our ertgagement letter dated October 4, 2010, our responsibility, as described by professianal standards, is to express an opinion about whether the financial statemen#s prepared by management with your oversight are fairly presented, in alt material respects, in confarm'sty with U.S. generally accepted accounting principies. Our audit of the financia( statements does not re(ieve you or management of yaur responsibilities. Our responsibility is ta pian and perform the audit ta obtain reasonable, but not absolute, assurance that the financia{ statements were free of material misstatement. As part of our audit, we cansidered the internal contro{ over financial reporting of the Fund. Such considerations were solely for the purpose of determining our audit procedures and not to provide any assurance concem such internai cantrol. As part of obtaining reasonable assurance about whether the Fund's financial statements are free of mate�ial misstatement, we performed tests of its campliance with certain provisions of laws, regulations, contracts, and grants. However, the objective of our tests was not to provide an opinian on compliance with such pravisions. Planned 3cape and Timing af the Audit We performed the audit according to the planned scope and timing previously communicated to you in our engagement letter 3lgniflcant Audit Findings Qr�slitstive �spects of.4ccouatlrrgPrscticas Accounting Policies Management is responsible for the selection and use of appropriate accounting paiicies. Our responsibility is to advise management about the appropriateness of accounting pa(icies and their application. The significant accounting poiicies used by the Fund are described in Note 1 to the financia{ statements. No new accounting policies we�e adopted and the application af 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 transactians that have been recognized in the financiaf statements in a different periad than when #he transaction occurred. Accounfing Estimafes Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience abaut 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 fram 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 Stafement Disc/osures The disclosures in the financial statements are neutral, consistent and clear. Certain financial statement disclosures are particularly sensitive because of their significance to the financiaf statement user. The mast sensitive disciosure affecting the financial statements was the investmen# disclasures in Note 3. This note discfoses the variaus risks associated with #he investments held by the Fund. 11 ill !'c r rl t i es Ba c n r tri ter e d ir t Perlorm 1 rrg i h e� I t r rl1 t We encountered no sign�cant difficulties in dealing with management in petfiorming and complsting aur audit. �'orrected sad Uacorrecred AU.sstatemeats Professional standards require us #o accumulate all known and like{y misstatements identified during the audit, other than thase that are t�ivial, and communicate them to the appropriate levei of management. Management has corrected al! proposed adjustments. In addition, the adjustments identified during our audit pracedures were primarily reclassification entries and were not material, either individually or in the aggregate, to the financial statements taken as a whole. Dlssg'reemeats withdtsttsgemettt For purposes of this letter, p�ofessiona! standards define a disagreement with management as a financial accounting, reparting, ar auditing matter, whether or not resolved ta aur satisfactian, that could be significant ta the financiai statements or the auditor's repart. We are pleased to report that no such disagresments arase during the caurse af aur audit. d ts t t sg ' e m ett t R ept es ea t s t! vt t s We wiil request certain representations from management that will be included in the management representation letter as af our report date. dlsasgemertt Consuliatlorrs with OtherindepeadeatAccorlatsilts In some cases, management may decide to cansult with other accauntants abaut auditing and accounting matters, similar ta obtaining a"second opinion" on certain situations. If a consultation involves application of an accaunting principie to the Fund's financial statements or a determination of the #ype 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 knowiedge, there were no such consultations with other accountants. !ltberRudltFYadlags orZssues We generally discuss a variety of matters, including the apptication of accounting principles and auditing standards, with management each year prior ta retentian as the Fund's auditors. However, these discussions occurred in the no�mal caurse af aur prafessionai relationship and our responses were not a condition to aur retentian. This information is intended solely fa� the use of Board of Trustees and management of the Fund and is not intended #o be and should not be used by anyone other than these specified parties. Very truly yaurs, ���4 �p l f / THE LAW OFFICES OF PERRY � JENSEN, LLC ANIV H. PERRY BONNi SPATARA .fENSEN apenyQperryjenseniaw.com bsjensenQperryjensen{aw.com MEMORANDUM T0: Paim Beach Gardens Palice ��cers' Pension Fund 6oard of Trustee� FROM: Bonni S. Jensen �� Fund Legal Counsel DATE: January, 2011 SUBJECT: IRS Mileage Rate for 2011 This is to inform you that the internal Revenue Senrice ("(RS"} reieased its updated Standard Mileage Rate for 2011. The new rate is 51-cents per miie as of January 1, 2011. 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 ra#e at online at: http:!/www.irs.g,ov/formspubs/. 1f you have any quesiians, please do nat hesitate to contact us. ss,�raac Enciosure Copy: Adminisirator H:WII MisceltaneouslALt BOARDS1201112Q11 IRS Mileage Rates Memo.wpd 4O0 EXECUTIVE CENTER ORIVE, SUITE 207:• WEST PALM BEACH, F�oRtoa 334Q9-2922 PH: 561.686.6550 •:• Fx: 561.686.2802 �� IRS Announces 2011 Standard Mileage Raies IR-2010-I 19, Dec. 3, 2010 Corrected on Dec. 13, 2010, to reflect changes for 2011 WASHINGTON — The Internal Revenue Service taday issued the 2011 optional standazd mileage rates used ta calculate the deductible costs of operating an automobile for business, charitable, medical ar moving gurposes. Beginning on Jan. 1, 2Q11, the standard mileage rates far the nse of a car (also vans, pickaps or panel trucks} wiiI be: S I cents ger mile for business miles driven 19 cents per mite driven for medical or moving ptsrpases 14 cents per mile driven in service of charitable organizations The standard mileage rate for business is based on an annual study of the fixed and variable costs of aperating an atitomabile. The rate far medicat and moving purpases is based an the vaziable costs as determined by the same study. Independent contractor Runzheimer Internationa! coaducted the study. A taxpayar may not nse ihe business standard mileage rate for a velucle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Sectian 179 deduction for t�iat vehicle. In addition, tbe business standard mileage rate cannot be used for more than four vehicles used simultaneously. TI2e IRS is requesting public comments on whether taa�cpayers should be allowed to use the business standard mileage rate in this circumstance. Beginning in 201 I, a taxpayer rnay use the business standard mileage rate for vehicles used for hire, such as taxicabs. Also beginning in 2QI I, the standard mileage rates are announced in a separate notice, which also provides the amount a#a7cpayer must use in calculating reductions to basis for depreciatian taken under the business standard miieage rate aitd the maximum standard auiomobite cost for automobiles under a FAVR allowance. The IRS plans to discontinue publishing the standard mileage rate revenue procedure annualiy bat will publish modifications ss required. Taxpayers always have the option of calculating the actual casts of using #heir vehicle rather than using the standard mileage rates. Revenue Procedure 20i0-51 and Notice 2010-88 contain additional details regarding the standard mileage rates. Subscribe to IRS Newswire Page Last Revieived or Updated: December 14, 2tI10 ULLICQ LABOR PROTECTI4N GROUP a votuntary membeeship orguuzatioa oporating pursuant w the Liability Risk Rotantion Act of t 986 and whose prineipa! office is: 4323 Warren Strxt, NW, Washiagton, DC 20016-243� Date [ssued: Quatatian Na: Iasned Dy: Iasurance RepresentaHve: Address: Trust{s} or Ptsn(s): FIDUCIARY LIABiLi'TY [N5URANCE PREMFUM QUOTATION I I/Ol/2010 QTQ0000013t6 Hudson Insurance Company 17 State Street New York, NY l OQ04 United Members Insurancs, Inc. 6826 Ginebaugh Avenee Tampa, FL 33625 Underwriter: Ann Hughes Renewal: Y Paim Beach Gardens Poiice Officers Pension Fund Address: C/O The Resour�e Center 436Q NorthEake Btvd Saite 206 Paim Beach Gatdans, FL 33430 Poiicy Period: 12lOIt2010 w 12lO1/ZO11 Pending or Prfor Proceeding Date: 22/O1l2002 Continuity Date: NONE, FULL PR10R ACTS COVERAGE Lfmits of Ltability: {a) ro> {c) (d} (a) S 1,008,t�I0 ACGREGATE LtMIT: aggregate timit of liabiEiry for atl loss S2b0,000 YOLUNTARY COMPLIANCE PRC}GRAM EXPENDITURE SUB-LIMIT: aggngate timit of {iabitiry for all Voluntsry Compliaoce ProQnm E=pendhores {inctuded within aad aot in addirion to the maximum aggregate hmit of hebility set forch in 1TEM 4{a) abovy S l OQ000 S02(e) CML PENAI.TIFS SITS-LIMIT: aggrtgate timit of liability for all iou in the fosu of civil penairies or excise tax imposed �ursusnt to Section 502(c) of ERiSA ind d�e Pension Protection Act of 2006 (inciuded vnthin and not in addition w the maximum aggregate limit of tiabitity stt forth in ITEM 4(a) abovej E I,OOt?,000 HIPAA FINES AND PENALT'IES SUB-LIMIT: aggctgate limit of liability for sli ka in tht form of civii finea aad pcnetties imposed }nusuant to HIPAA (inciuded vrithin and not ia addition to the mtximum aggregate limit of tiability stt forth in ITEM 1{s} above} 5254,Q00 TRUSTEE CLAIM EXPENSES SU&LIMIT: aggregau limit of liability for all Ciaim Bxpensa in connecrion with Claims soleiy aReg�ag Wrongful Acts as de5ned in Stction II.M.4 (includcd within and not in additiosi to the mazimum aggregate timit of iiability set fortt► in 2TEM 4(a) above} DeductEbie Amount; Covera�e: Premium: (a) ro} (�) (d) (�) $0 Esch Cisim Hudson Insurance Company Fiducisry Liability tasuranoe Claims-Made Poiicy Form (UFL-1004), Clafma Expenses tnclasive 56,144.b0 Basic Premium Waiver of Recourse Premium (not to be paid by plan) Si$5.82 Tax/Other 56,374.82 Totat 56,194.00 Additional Premium for Eztended Reporting Period, subjxt to Section IV.B. Conditions/Coverxge Snbject to: Nothing else required The following endorsemtnts wili attach to the policy: I. HFL (Q8/07) FIorida Amendatory Endorsemcnt 2. H20 (08/Q'n Actuazisl Assumptions or Projections Exctusion Endorsement 3. HAE {02/04) Waivar of Recoutse This quotation rs valtd for a period of thirty (3U) days from the Issue Date shown above untess a�nended ar withdrawn by Hudso�r I�surance Conrparry, witb or without cause, prior to its acceptance and birrding, and is subject to tbe terms c�rd conditions of the policy (ies) to be lssued. Ijthe inJ'ornration supplied by tire trust or plan irr the appticatiort clranges between the date ojthe opplieation for this insuranee cmd the effective date ojthe rnsurance or the time wlu+t the potiry is bou►td (whichever is later), the trust or plan must imrriediately rrot� Nudson Insurance Comparry in wrrting of such chaages a�rd Nudso� may withdrmv or amend arry outstanding quotatiorrs based upon sr�ch churiges ULLICO Labor Protection Group is administered by ULLICO Casualty Groap, Inc., aJk/a Ulieo Insutance Group, Inc.; in CA and NY, Ulieo Insurance Ageacy. CA License # OEIb939 and FL (Daniel Aronowitz) License # P003599 l Page 1 of 1 Audrey Ross F�om: Sandie Kyser (sandie@umi91.com] Sent: Tuesday, November 02, 2010 2:49 PM To: Audrey Ross Subject: Palm Beach Gardens Police Officers Pensian Fund, Fiduciary Liability Policy #UFL-0060678 Attachments: Renewal Quote.pdf Sender ALLOWED [ Remove ][ Btock ] details Vanquisn Anti-Spam Control Pant:l Hi Audrey: Attached you will find a renewal Fiduciary Liabifity Insurance Quote for the above referenced Fund, from UIlico Insurance Group with Hudson Insurance Company. The quote is for the expiring Liability Limit of $1,000,000.00. The total annuai premium is $6,379.82, which is $5.15 lower than last years total premium. Under the Limits of Liability, Ullico has increased the HIPAA Sublimit (item "d") from $25,000.00, to $1,000,000.00. Per your request, I also obtained a quote for $3,000,000.00 Limit of Liability. The total annual premium is $18,013.67 ($17,489 base premium +$524.67 FL surcharges). As always, we at United Members appreciate your business. If you have any questions, please don't hesitate to call. Sincerely, I�ai .'� � , Sandie Kyser, Account Executive United Members Insurance Phone; 813-265-2300, ext. 8 Fax: 813-265-2323 Email; sandieC�Dumi9l.com Resource Centers Accounts Payable ChecSc Register FOR: PALM BEACH GARDENS POI.lCE Check Numbe Date Pa ee and Descri tion Amount 2291 November 1, 2010 City of Palm 8each Gardens $8,318.21 Retiree insurance 2292 November 1, 2010 Pension Resaurce Center 32,291.50 Administration Fee- November 2010 2293 tVovember 3, 201Q Perry 8 Jensen LLC $129.90 Legal Services Rendered thru 10t15J10 2294 December 1, 2010 Ciry of Palm Beach Gardens $9,318.21 Retiree tnsurance 2295 December 2, 2010 Pension Resaurce Center $2,475.00 Administration Fee- December 201 Q 2296 December 2, 2010 Perry & Jensen LLC $2,665.12 Legal Services Rendered thru 11t15t10 2297 Oecember 2, 2010 United Members insurance, inc $6,378.79 Fiduciary Liability Policy Renewal 2417 2298 January 1, 2Q11 City of Palm Beach Gardens $9,318.24 Retiree Insurance 2289 January 5, 2011 Pension Resource Center $2,290.69 Adminisiration Fee- January 2011 2304 January 5, 2011 FPPTA $34.40 CPPT Recertification Fee- Spencer 2301 January 14, 2011 Gabriel Roeder Smith & Company $2,003.Q0 Actuarial Seroices thru 11/30t10 23Q2 January 14, 2011 Gabriel Roeder Smith 8� Company 53,745.00 Actuar+at Seroices thru 12J31t10 2303 January 14, 2Q11 ICC Capital Management 522,868.82 Investme�t Management Fees 4th Qtr 20'f 0 2304 January 14, 2011 Cherry BekaeR & Halland l.LP $11.000.00 Progress Billing Audit year ended 09/30110 2305 3anuary 14, 2011 Rhumbtine Advisers $3,519.00 lnvestment Management Fees- 4th Qtr 2010 2306 January 14, 2011 Perry 8� Jensen LLC $558.35 Legat Senrices Rendered th�u 11/15l10 Chairman Secretary Date Totaf $87,906.80 Palm 8each Gardens Police vEt�DOR: OQOOOd000458 INYOtCE NUMBE�i tNVQICE DATE 005128 11 Q1 ld 405129 21f 01%10 005230 _ lljQl/10 OQ5I31 1/Q3%1� aa5�.�a �z/o�/io 005133 7.1/QI/10 OOSI34 _ lI%Q1/10 005135 _ _ 1/41j14 BANK ATLANTIC INVOICE AMOUNT 2,919.10 1,493.16 3,346.50 248.18 283.8d �.a.00 563.83 491.64 11/1Q AMOUNT PAID 2,9T9.3.0 ' 1,493.I.6 3,346.54 2Q8.18 as�.so 12.00 563.83 49I.64 Palm Beach fardens Police 4360 Narthlake Bfvd Ste 206 Paim Beach Gardens, Ft 33410 vvvvc��i VENDOR NQ. oaaoaaoaa4ss DlSC. TAKEN NET AMOUNT .04 2,9I9.I0 .Q4 1,493.16 .00 3,346.50 .QO 248.18 .40 283.80 .ao �z.00 .00 5&3.83 .00 491.64 ck Total 9,318.2 63-8376l2670 00002291 CYiECK NO. CHECK DATE VENOOfl NO. aa9i i�/al/ia o000000004sa AMOUIJT PAY NINE THOUSAND THREE HUNDRED EIGHTEEN AND 21f104 t TO THE ; ORDER , OF � i � CITY OF PALM BEACH GARDENS 10500 N MILITARY TRAIL ATTN: LAUREN FERREIRA PALM BEACH GARDENS FL 33410 __ VOlDAFTER_180_DAYS__ aoaoeaco��r,i�su�crtooaie i�'0�00229i��' �:26?�83?63�:00633656�3��' Patm Beach Gardens Police VENDdR: Q00000000458 1NVOICE NUMBER fNVOtCE DA7E 005128 lI 01 10 405129 li/O1/10 o�i�o 11/0�./l0 005131 11/Q1/10 OSI32 11/O1/10 00.5i33 Z/01/20 oas234 zloi/�o 005135 , I1/O1/14 INVO�CE AMOUNT 2,9I9.T0 1,493.16 3,346.50 208.18 283.80 22.OQ 563.83 492.64 11/l0 AMOUNT PAfD 2,9i9.10 1,493.16 3,346.50 208.18 283.8Q 12.44 563.$3 491.64 � 00002291 V ENDOR NO. a0000aoao4s8 D�SC. TAKEN NET AMOUNT .OQ 2,919.10 ,pp 1,493.16 .00 3,346.50 .00 208.18 .OQ 283.80 .04 12.00 .04 563.83 .00 49I.64 ck Total 9,318.2Z Palm Beach Garde�s Potice vENDOR: OOOOOd400001 INVOICE NUMBER INVOICE DATE IiVVdiCE AMOUNi 40040Q040Q109Q6 12 01 10 2,291•50 VVVV4f.�Ii. OATE VENOOR NO. 11/10 OOQ04Q404001 AMOUNT PAID QISC. TAKEN NET AMOUNT a,��i.5o .aa a,a9i.�o eck Total 2,292.50 Palm Bsach Gardens Police 00��2292 4360 Northlake Bfvd Ste 246 63•8376t2670 Paim Beach Ga�dens, FI 33410 SANK ATLANTIC CHfCK Np. CH£CK pATE VENOOR N0. 2292 11j01/10 OdQ000000401 annourvr PAY TWC? THOUSAND TWO HUNDRED NINETY-ONE AND 50/100 ' ro r�E PENSION RESOURCE CENTER ; aRaER 4 3 6 0 NORTHLAKE BLVD STE 2 0 6 OF PALM BEACH GARDENS FL 33410 � VO{D AFTER 180 DAYS a•0000229'���• i:26?083?63�:006 3 36 560 3��• Palm Beach Gardens Police v�tvooR: 004400000001 INVOICE NUMBER INVOICE DATE INVOICE AMOUNT 040000000010906 11 O1 1Q 2,291.5( ��r.ap�R CONtq�NS MICNOVNNt1 00002292 DATE VEM1IOORNO. ii/la aooaa00000az AMOUNT PAID OfSC. 7AKEN NET AMOUNT 2,a�l.so .oa a,291.5Q eck Total 2►2g1•SO Resource Centers, LLC' 4360 Northlake Blvd., Suite 206 Palm Beach Gardens, FL 33410 Description Palm Beach Gardens Police Pensian Manthly Administration Fee for Navember 201Q Deaih Search (PBI) invoice Date Invoice # iQ/29/20iQ 10906 Tax ID Financial Resource Center 87-0800465 Pensian Resource Center 36-4504183 Resource Centers 87-08004b8 Qty 33 Rate Amaunt Z,z�s.oa z,2�s.00 0.50 16.50 Totai Amount Due Mai1 Payments to: Resource Centers, i.LC at Palm Beach Gardens address OR ACH Payment to: Fi�st Southern Bank Pension Resource Center ABA #; 067412895 Account #: 8063659206 %$2,291.50 If yau have any questions concerning this invoice, piease contact Bonnie Lindberg at Resource Centers, LLC Phane 561.459.2959 or email - Bonnie@ResourceCenters.com �Palm Beach Gardens Police vENao�: 00000a0000lo INVOICE NUMBER 1NVdiCE DATE lNVOICE AMOUNT 000000000070Q86 11 03 10 129.90 vvvv��J� DATF VENDOR NQ. 11/zo ooaaooa000zo AMQUNT PAlD DiSC. TAKEN NET AMOUNT I29.94 .00 129.9C eck Total 129,9C THE FACE Of TMtS DtiCllMEDiT'HAS A CQtORED SRGliBROtlNi! OR WHITF PAPEH = THE BACK CdNTA1NS AN-ARtlf#CiRt WATERMI►RR - HOLD A1 A�tANGI� T0 VEEW �atm Beach Gardens Police 00002293 4360 NorihEake Blvd 5te 206 Patm Beach Gardens, FI 33410 63-837b12670 BANK ATLANTIC PAY ONE HUNDRED TWENTY-NINE AND 90j1Q0 ������',�� TO THE ' ORDER OF PERRY & JENSEN, LLC 400 EXECUTIVE CENTER DRIVE SUITE 247 WEST PALM SEACH FL 33401 CFiECK NO. CttECK DATE VENt?OF M0. 2293 11/03j1Q d000d0000410 AMOUNT $129.90 VOlD AFTER 780 DAYS : . '-. ^"Y:�7MSM:CAOCAtF ii'D000 2 293►�' �:267083763�:�063365603+�' Palm 8each Gardens Police 00002293 DA7E VENDOR NO. vE��aR: OOOOOOOQOQIO 11%10 Q00000400410 lNVQICE NUMBER lNVOICE DATE ENVOICE AMOUNT AMOUNT PAlD DISC. TAKEN NET AMOUNT 40Q000000070086 Il �3 10 I29.90 129.9fl .00 129.90 eck Total 229.90 THE LAW OFFICES OF PERRY �Si �E�ISEN, � L�� ANN H. PERRY aperry@perry}enseniaw.com October 19, 2010 Via Emai! Palm Beach Gardens Police Pension Fund °' Resource Ceniers, L�C Attn: Scott Baur & Bonnie Lindberg & Audrey Ross 4360 Northlake Boulevard, Suite 206 Pa{m Beach Gardens, FL 334'IO Dear Scatt & Bannie: BONNI SPA7ARA JENSEN bsjensen@perryjenseniaw. com ,� ., �' Re: Leqat Services Provided tnvoice #70086 Enclosed please fiind the Firm's invoice for services rendered for #he period that ended 1Q115/2010. hank you fior your payment of $609,70. Your current balance due is $129.9fl. � �� ff you have any questions, piease da not hesitate to contact me. Sincerely yaurs, ,-, v ��t. �t� � � Bonni S. Jensen BSJ/adt Enclosure Copy to: Jay Spencer, Ghairman David Pierson, Secretary Via Emai1 Only 400 EXECUTfVE CENTER DRIVE, SUiTE 207�: WEST PALM BEACH, F�ORIDA 334Q1-2822 PH: 561.686.6550 •: Fx: 561.686.2802 � �3 THE LAW OFFICES OF PERRY & JENSEN, LLC 4�0 Executive Center Drive Suite 2fl7 West Palm Beach, �L 33401-2922 Invaice submitted to: Paim Beach Gardens Police Rension Fund Audrey Rass & Scoft Baur & Bonnie Lindberg -via email c!a The Reso��ce Cer+tess, L�C 4360 Narthlake Boufevard, Suite 206 Palm Beach Gardens, FL 33410 Copy to: Chairman & Secretary October 19, 2010 In Reference To: FOR PROFESSIONAL SERVICES RENDERED AS FOL�OWS: Client ! Fiie No.: 0003 Invaice #7Q086 Professianaf Services Monitor/Consuitants - Thistle Asset Consuitinq 9/23120'IQ BSJ Correspondence with Monitor re: SEC rules and impact on plans 10/1/2010 LB Finalize SEC Rule Ietter Pay ta Pfay per attorney markup E-mail to Ruie letter to Monitor, Chairrrxan & Secretary and Administrator SUBTOTAL: Meetinq Notices and Aqendas 1 011 31201 0 BSJ E-Maii #o Audrey Ross E-mail to Jonathan Davidson SUBTOTAL: Far professiana! services rendered HrslRate Amount 0.50 200.00Ihr 0.10 75.00ihr 100.00 ,., � '" 7.50 [ 0.60 1 d7.50} o.�o Za.ao 20Q.00ihr � o.�o Za.003 a.�o $�27.so Palm Beach Gardens Poiice Pension Fund Additional Charges : Bif! File 10/15/20i0 Copy Charges SUBTOTAL: Tata! additionai charges For professional services rendered Total amount of this bill Previous balance Accourrts receivable transactions 10114/2010 Payment - Thank Yau�. Check No. 00002285 Totai payments and adjustments Balance due Page 2 Amount 2.40 [ 2.4QJ $2.40 0.70 $929.90 $129.90 $649.70 ($609.70} i$609.70) � $129.9Q !'� Palm Beach Gardens Poiice VENDOR: OQ0000000458 DATE 12/1Q 00002294 VENOOR N0. OOOOd000Q458 INVOICE NUMBER lNV410E DATE tNVOlCE AMQUNT AMOUNT PAID DISC. TAKEN NET AMOUNT 005236 12 41 10 2,919.10 2,9I9.10 .00 2,919.10 005137 I2/O1/IO 1,493.16 1,493.16 .00 1,493.16I OQSI38 12%41/10 3,346.50 3,346.50 .00 3,346.50� 005139 12/01/10 208.18 248.18 .00 2Q8.181 005140 12/Q1/10 283.80 283.80 .00 283.80 005141 12/O1/10 12.00 I2.00 .00 12.00 005142 12fO1f1Q 563.83 563.83 .00 563.83 005143 12/O1/10 49i.64 491.64 .00 491.64 eck Total 9,31$.21i I � � Palm Beach Gardens Potice 00002294 4360 Northlake Blvd Ste 206 Palm Beach Gardens, FI 33410 63-$37&12670 SANK ATLANTIC - CHECK NO. CHECK DATE VENDOR NO. 2294 �a1o�/l0 000a0000a45g PAY nrnouNr NINE THOUSAND THREE HUNDRED EIGHTEEN AND 21/100 TOTHE CITY OF PALM BEACH GARDENS ORDER 10500 N MILTTARY TRAIL oF ATTN: LAUREN FERREIRA PALM BEACH GARDENS FL 33410 VOiD AFTER 180 DAYS �+'000� 2 294��' �:26?083763�:0063365603��' Palm 8each Gardens Police VENDOR: 000004040458 {NVOICE NUMBER iNVOiCE �ATE 005136 12 Q1 10 405137 12j01/10 005138 12/O1/10 005139 12%O1/10 005140 12/O1/10 oasz4� 12/oi/Zo 005142 12j01/10 005143 12/01/10 INVOICE AMOUNT 2,919.10 1,493.16 3,346.50 208.18 283.80 12.04 563.83 491.64 12 AMOUN7 PAID 2,919.10 1,493.16 3,346.50 208.18 283.80 12.00 563 . 83 491.64 B?RDEA CON7atN5 M1Cfl0�.71T!?ING: 00002294 'E VENDORNO. �o 0000a000045s DiSC. TAKEN NET AMOt1NT I .00 2,919.10` .QO 1,493.I6� .Ofl 3,346.501 .00 208.18� .00 283.8fl� . oo i2 . ca .00 563.83� .00 491.64 eck Total 9,318.21i � ; � i 'alm•8each Gardens Police v��voaR: oa000000000z . INVOICE NUMBER INVOSCE aATE INVOICE AMOUNT 149b2 DEC 2010 12 02 20 2,475.00 �vvvcc�� flATE V£NDOR N0. 12/io 0000a000aao� AMOUNT PAIp DISC. TAKEN f1ET AMOUNT 2,475.40 .00 2,475.00 eck Total 2,475.00 - Paim Beach Gardens Police 00002295 4360 Northiake Bivd Ste 206 Palm Beach Gardens, FI 33410 63-837612670 BANK ATLANTiC CHECK NO. CHECK OATE VENOOR N0. 2295 12/02/10 QOOOOOd00Q01 AMOUNT �aY TWO THOUSAND FOUR HUNL}RED SEVENTY-FIVE AND 00/10 TQ7NE pENSION RESOURCE CENTER ORdER 4 3 6 0 NORTHLAKE BLVD STE 2 0& OF PALM BEACH GARDENS FL 33410 �t'0000 2 295��' �:26?083763�:0063365603��' Palm Seach Gardens Po{ice VENOOR: OOOOOOOOOd01 INVOICE NUMBER lNVOlCE DATE INVOICE RMOUNT 10962 DEC 2010 12�02 10 2,475.00 OOt}02295 DATE VENDOR N0. 12j10 000000000001 AMOUNT PAIO DISC. TAKEN NET AMOUNT 2,475.00 .00 2,475.00; eck Total 2,475.00; � � Resource Centers, LLC ✓ 4360 Northlake Blvd., Suite 206 Patm Beach Gardens, FL 33410 � �� J` `�U� � �� Tax ID Invoice Date invoice # �1�3olza�o ia96z Financial Resource Center 87-0800465 Pension Resource Center 36-4504183 Resource Centers 87-08Q0468 Mai! Payments to: Resource Centers, LlC at Palm Beach Gardens address OR ACH Payment to: First Southern Bank Pension Resource Center ABA #; 067032$95 Account #: 80b3659206 If you have any questions concerning this invaice, piease contact Bonnie Lindberg at Resource Centers, l.LC Phone 561.459.2959 or email - Bonnie@ResourceCenters.com �..� ;;� (l � Pahn Beach Gardens Police 00002296 OATE VENCQRNp. VENDOR: OOOO00000010 la/lo 000000a000�o INVOICE NUMBER INVOICE DATE INVOICE AMOUNT AMOUNT PAID DtSC. TAKEN NET AMOUNT .�70148 11 15 1Q 12 02 i0 2,665.12 2,665.I2 .00 2,665.121 eck Total 2,665.12; J Paim Beach Gardens Poi+ce ���02296 E 4360 Northiake Btvd SLe 206 � Palm 8each Gardens, FI 33410 63-8376l2670 � } BANK ATLANTEC cHecK r�o. cr+ecx oAre VENDOR N0. ► - 22gs 12/o2/�a ooa000aaooza � ! PAY annouNr I TWO THOUSAND SIX HiJNDRED SIXTY-FIVE AND 12/100 f TO THE i OROER � QF PERRY & JENSEN, LLC 4QO EXECUTIVE CENTER DRIVE SUITE 207 WEST PALM BEACH FL 33401 VOID AFTER 180 DAYS +�'00002296�+' �:267083763�:00633656�3�i' Paim Beach Gardens Poiice VENDOR: OOOOOOOOOOlfl ( INVOICE NUMBER INVOICE DATE INVOICE RMOUNT 70148 11 15 10 12%02 10 2,665.1� y -„-� -__.-._-. SORO£R CONFAINS WCROPRIFfTNG 00002296 pATE VENDORNO. 12/10 Q00000000010 AMOUNT PAID DISC. TAKE(V NET AMOUNT � 2,665.12 .00 2,665.12� eck Total 2,665.12; � I THE LAW OFFiCES OF'f PERRY � JENSE�T, LLC ANN H. PERRY aperry@perryjenssntaw_com BONN! SPATARA JENSEN bsjensen@perryjen sen(aw.com November 23, 2010 Via Email ; Palm Beach Gardens Police Pension Fund" Resource Centers, LLC Attn: Audrey Ross 4360 North(ake Bouievard, Suite 206 Paim Beach Gardens, FL 33410 Dear Audrey: �'�� _ <� Re: Leqal Services Provided lnvoice #70148��r Enciosed please find the Firm's invoice far services rendered for the period that ended '[ 1!9 51201 Q. Thank yau for your payment of $129.9Q. Your current ba}ance due is $2,665.12. �L If yau have any questions, please do nat hesita#e ta contact me. Sincerely yaurs, Banni S. Jensen BSJtadt Enciosure Copy #o: Jay Spencer, Chairman David Pierson, Secretary Via Email On}y 4Q0 EXECEITlVE CENTER DRIVE, SuttE 207�: WESi PALM BEACH, F�oRt�a 3340i-2922 PN: 561.fi86.655Q •: Fx: 561.68628d2 �_ .. THE LAW OFFICES OF PERRY & JENSEN, LLC 40Q Execu#ive Center Drive Suite 207 West Palm Beach, FL 334Q1-2922 Invoice submitted #o: Palm Beach Gardens Potice Pension Fund Audrey Ross -via email clo The Resource Centers, LLC 4360 Northlake Soulevard, Suite 206 Palm Beach Gardens, FL 33410 Copy to: Chairman & Secretary November 23, 2d10 In Reference To: FOR PROFESSIONAL SERVICES RENDERED AS FOLLOWS: C(ient t File No.: QQQ3 Invoice #70148 Professionaf Services Auditor 10/1812Q10 8SJ Review Auditor Engagement Letter SUBTOTAL: investment Policv Guidelines i0119/201Q BSJ Review draft Investment Policy Guideiines Review propased giobal bond mu#ua! fund products SUBTOTAi.: Attendance at Trustee Meetin4s 1012d12010 ADT Prepare Attorney Report, HandouEs, and Folder for upcoming Meeting - 10/21t1Q HrsiRate Amaunt 0.50 1 QQ.00 200.00lhr � o.5a �ao.oa� 0.50 100.00 2Q0.00/hi [ 0.5(3 100.00j Q.75 56.25 75.DO/hr Paim 8each Gardens Police Pension Fund SUSTOTAL: Minutes of Trustees Meetinqs 10/20/2010 ADT Review minutes of 7129i10 SUBTOTAL: Inv Mar - iCC 10120/2010 BSJ Telephone caif with Steve Stack SUBTOTAL: Attendance at Trustee Meetinqs 14i21l201Q BSJ Attend rneeting SUBTOTAL: inv Mqr - ICC 10121t2010 BSJ E-Mail to Steve Stack re: fees for Agreernen# SUBTOTA�: Misc Matters 10/21/2Q10 BSJ E-Mail ta Bob Sugarman re: VESA and withhalding Page 2 Hrs/Rate Amount [ 0.75 5625j 0.20 9 5.40 75.00/hr � a.2a 1�.00� 0.10 20.00 200.04/hr [ 4.10 24.dOj 2.50 500.00 20Q.04ihr t Z.�a �oo.00� 0.10 20AQ 200.00/hr [ 0.10 20.00] 0.10 24.OQ 20Q.00lhr Palm Seach Gardens Police Pension Fund SUBTOTAL: Custadian - RFP 10J29l2010 BSJ E-Maif to John McCann re: Custadian Request For Proposaf SUBTOTAL: Class Action l.itiqation '1012112Q10 BSJ E-Maii #o Jonathtan Davidson re: hi�ing for securities monitoring SUBTOTAL: Portfalio Manitor - Barroway To�az Kessler Meifzer& Check. 1d/2912010 BSJ E-Mai! to Jonathan Davidson re: Board selection SUBTOTAL: Summarv Pfan Descripfion 10122/2010 LB Rev'sse Palm Beach Gardens Summary Plan Descripiion Emailed to Administrator and Board of Trustees SUBTOTAL: Policies - General iQl22/2010 BSJ Correspondence with Audrey Ross enclosing the QROP Distribution Statement of Policy Page 3 tirslRate Amount [ 0.10 2Q.00j 0.10 20A0 2QO.Oaihr [ 4.10 24.00j 0.10 20.00 200.00ihr � a.�o Zo.00� Q.10 20A0 200AOihr [ 0.10 20.40j 0.30 22.50 75.Q0/hr � a.3o 22.soj 0.24 40.00 200.00/hr Palm Beach Gardens Poiice Pensian Fund SUSTOTAL: Class Action Litiqation 10122/2010 SSJ Review and respond to smail from Jonathan Davidson re: retainer for Barraway Tapaz E-mail to Jonathan Davidson SUBTOTAL: Foticies - General 1012212410 LB Prepared UPS Graund Defivery air bill and shipped ihe DROR Po(rcy and lefter to Audrey Ross Scanned and emailed the ietter to Audrey wiih the executed DROP Po(icy SUBTOTAL: Portfofio Monitor - Barroway 7opaz Kessler Meftzer& Check, 10/22J2010 BSJ Review and respond #o email re: cfient specific data SUBTOTAL: Summary Plan Description 101221201Q BSJ Review Summary Plan Description Page 4 Hrs/Rate Amount [ 0.20 40.OQ} d25 50_(}Q 200.00/hr [ 0.25 50.00] 0.25 1$.75 75A0lhr [ 4.25 18.75j 0.25 240.00Ihr [ 0.25 SUBT�TAL: [ 50.00 50.00) 0.10 20.00 2Q0.00lhr Q.10 20.04J Paim Beach Gardens Police Pension Fund Portfofio Monitor - Barroway Toaaz Kessler Melizer& Check 10/24/2014 BS,! Review Retainer Agreement E-mail to Jonathan Davidson re: revisions to Agreement Telephone caii with Audrey Rass SUBTOTAE.: Custadian - RFP 90l251201fl KS Drafit Request For Proposal SUBTO7AL: Suyback 1 012 512 0 1Q LB Drai� the Buyback Paiicy with provisians that members rnust decide whether to buyback within 94 days of receiving calcuiaiian, unless pay'sng in iump sum SUBTOTAL: Trustee Election 3Q/25J20i0 LB Draft letter to City af Palm 8each Gardens letting city know that S�ad 5eidensiicker and David Pierson are interested in serving new terms SUBTOTAL: Buyback 1012612010 LB E-Mail the Statement of Policy Regarding Suyback of Po(icy/Non-lntervening Military Service. Also copied Chairman 8� Secre#ary Page 5 HrslRate Amount Q.SQ 100.U0 2Qfl.00thr � 0.50 1 Q0.00] 1.50 1 � 2.50 7s.00mr j 9.50 112.50j 0.5Q 37.50 75.401hr ( 0.5{l 37.50� 0.50 37.50 75.00/hr [ 0.50 37.50] 0.20 15A0 75.OQlhr C Palm Beach Gardens Pafice Pensian Fund 10/26/2fl'40 SS,S Review and revise Po►icy re: changes firom 10l20 meeting SUBTOTAL: Trustee Election 10126i244Q BS.1 E-Mail to �atricia Snider re: Seidensticker and Piersan terms SUBTOTAL: Custodian - RFP 10126/2010 BSJ Review and revise Requesf For Proposal document Review monitor repart SUBTOTAL: Participant - General Corresaondence 10128/2010 ADT Teiephone call with Kathleen Hatchet re: payment by City of Plan for retra period SUSTOTAL: Cammission on Ethics 10128i2D10 ADT E-mai( to Form 8B to Audrey Ross StlBTOTAL: Page 6 F{rs/Rate Amount o.�o �ao.ao 240.00ihr j Q.70 115.00] 0.35 70.d0 20Q.00Ihr j 0.35 7o.oa1 0.75 150.40 200.00lhr [ 0.75 150.00] 0.25 18.75 75.Q0/hr [ 0.25 18.75j Q.10 7.54 75.00Ihr [ 0.10 7.50] Paim 8each Gardens Palice Pensian Fund Participank - Krancheck 10/29/2010 8SJ Review email from Audrey Ross E-mail to Steve Palmquist re: contributions E-mail to Audrey Ross SllBTOTAL: Inv Mqr -1CC 1 Q/29/2010 BSJ Draft Addendum and Exhibit A SUSTOTAl.: Trustee Election 10/2912010 BSJ Review email from Audrey Ross re: date for four year terms Research Ordinance 2, 2010 E-maiE to Audrey Ross SUBTOTAL: lnv Mqr - ICC 111112010 LB Refype revisions to the Exhibit A and 2nd Addendum to Investment Manager Agreement with ICC pursuant to attomey markup SUBTOTAL: Custodian - RFP 19/212010 KS Review an8 revise Request For Prapasa( per attorney markup Page 7 HrsiRate Amount 0.35 70.00 200.00lhr [ 0.35 70.00j 0.50 100.00 200.00/hr [ o.so �oo.00l 0.35 70.00 200.00lhr [ Q.35 70.00] a.2o z�.00 75.00/hr � 0.20 � s.ao� 1.00 75.00 75.00/hr � Palm Beach Gardens Police Pension Fund 11/2/2410 KS E-Maii Request Far Proposal to list oi custodians SSJ Review and revise Reguest For Proposal Review emaiis fram John McCann SUBTOTAL: inv Mqr - ICC 1112/2410 BSJ Correspondence with 1CC re: SEC Pay to Piay LB E-Maif to SEC letter to Steve Stack SUBTOTAL: Inv Mqr - int'1 Muiva! Funds '! 1/4/2010 SSJ Correspondence with Paui Mazzioiti re: SEC Rute Pay to Piay BSd Carrespandence with Denise D'Entremont re: SEC Rule Pay to F1ay SUBTOTAL: Custodian - RFP 11t4/2010 BSJ Review and respond to email from State Street Page 8 Hrs/Ra#e Amount 4.50 37.50 75.00lhr 0.50 100.OQ 200.00/hr j 2.00 212.50j 0.25 50.Od 2oa.oain� a.�o 7.so 7�.oam� [ 0.35 57.50J 0.25 50.D0 200.041hr 0.25 50.00 200.40/hr [ 0.50 100.QOJ 0.10 24.00 200.OQ/hr Palm Beach Gardens Police Pension Fund SUBTOTAL: Inv Mqr - int'I Mutual Funds 1114/2094 LB E-mail to SEC Pay to Play letter to Paul Mauiotti LB Emailed and maited letter to Denise D'Enfremonte SUBTOTAL: Inv Mpr - CCC 11/8J2010 LB Received and Reviewed the 2nd Addendum ta lnvestmen# Manager Agreement with ICC Prepared UPS air biH to return the signed but not witnesses Addendums to Steve Stack SUBTOTAL: Trustee Election 1119/2010 BSJ Telephone call with Patricia Snider Review email and application from Donna Cannon E-maii ta David Pierson and 8rad Seidensticker re: Trustee appiication SllBTOTAL: Participant - GeneraE Corres�ondence 11110l2Q14 BSJ E-Mail to Audrey Ross and Kathieen Hatcheft Review emaii from Steve Palmquist SUBTOTAL: Aage S Hrs/Rate Amount E o.�a 20.00� 0.10 7.50 75.001hr 0.10 7.50 75.401hr [ 0.20 15.00j Q25 18.75 75.00lhr ( �.25 18.75J 0.35 70.00 200.40/hr [ 0.35 74.OQj 0.5Q 1 Q0.00 200.00/hr ( Q.50 100.00j Paim Beach Gardens Pa(ice Pension Fund For professional services rendered Additional CFtarges : Bifl File 10/22/2090 United Parcel Service invoice Na.: d00F49280450 Tracking #1 ZF492800390552717 to I from Audrey Ross - Resaurce Centers, LLC DROP Distribution Po(icy 11i812010 United Parcel Service tnvoice Na.: OOOF49280460 Tracking #1ZF49280Q399830552 to / from Steve Stack (1CC} for witness signature Uniied Parcel5enrice tnvoice No.: OOOF49280460 Pick up fee 11/10/2010 United Parcet Service invoice No.: OQOF49280460 Tcacking #1ZF49284Q394018912 ta i from Investment Manager Agreement with ICC to Resource Centers, LLC United Parcel Service lnvoice No.: OOOF4928d460 Pick up fee 11/15/2010 Postage Copy Cha�ges SUBTOTAL: Totat additios�at charges For prafessional services rendered Total amount of this bi(I Previous balance Accounts receivable transactians 111412010 Payment - Thank You�. Check No. OOOQ2293 Tata! payments and adjustments Balance due Page 10 Nours Amount 1720 $2,590.00 5.13 5.11 4.22 5.11 1.26 0.44 53.85 [ 75.12] $75.12 Amount 1724 $2,665.12 $2,665.12 $929.9Q ($'f 29.90) ($929.90) � y ^l j' $2,66rJ.12 �� � ( �..._ __. ..; : : . Paim Beach Gardens Police VUUULL� / DATE VENDORNO. VENDOR: OOOOOQOQ0249 12/10 000000000249 . iNVOlCE NUMBER INVOICE DATE INVOICE AMOUNT AM4UTVT PAID DISC. TAKEN NET AMOUNT 01664 2411RENEW 12 02 10 6,378.79 6,378.79 .00 6,378.79:. C eck Total 6,378.79; Palm Beach Gardens Police �00�229% 4360 Northiake Blvd Ste 206 Paim Beach Gardens, FI 3341 Q 63-8376t2670 BANK ATLANTIC cHECK No. cr+ECK oaTE VENOOR N0. i 2297 �Zta2/�.o Q00000000249 j PAY AMOUN7 � 1 SIX THOUSAND THREE HUNDRED SEVENTY-EIGHT AND 79/100 '�; titiS'��;�;;u;:' $6, 378 • 75 ; TaT�E UNITED MEMBERS INSURANCE, INC. � ORDER 6$ 2 6 WEST L INEBAUGH AVENUE ! OF TAMPA FL 33624 VOID AFTER t80 DAYS ii'0000 2 29 7��' �: 26 708 3 76 3�:006 3 36 560 3��' Falm Seach Gardens PoEice v�N�oR: OOdOQ0000249 INVOICE NUMBER INVOICE DATE INVOICE AMOUNT �01664 20Z1.RENEW 12 02 10 6,378.79 BORDER CONTAINS MICAOPRIlJTiNC 00002297 DAT£ VENOORNO. 12/10 000aaaaoa24� AMOUNT PAIO DiSC. TAKEN NET AMOt1iVT 6,378.79 .00 6,378.7 eck Total 6,378.7 United Members insurance� 6826 W. Linebaugh Avenue Tampa, FL 33625 Telephone: (80Q} 940-5432 8i11 To: The Resource Centers 43SQ Northlake Bivd. Suite # 246 Paim Beach Gardens, FL 33410 Description: , ���`�. `S'; � t S4` lnvoice INVOlCE NO: 01864 REFERENCE N0: 881 DATE: 4 4tt 5t2010 PAYMENT DUE DATE: 1 Z/1312810 (nsurod: Palm Beach Gardens Poiice Officers' � Pension Fund 4360 Northlake Bouievard Suite 206 Paim Beach Gardens, F� 3341 Q iataf Due 6,378.79 ���-G'. , ' 1, 1�t.,c+ �`; �. i �r�l�L1 Z L Ptease pay by 12J1312014 to ensure cont(nuing coverage. Thank you for your business Please retum a copy of thfs lnvaice with your payment. THANK YOU FOR YOUR BUSINESS! Palm Beach Gardens Potice vErvooR: 040000000458 INVOICE NUMBER INVOiCE QRTE 005144 O1 Ol i2 005145 01j01/11 005146 Ol/Ol/11 005147 fll/O1/11 005148 Q1/O1/11 OOS149 O1j01/11 005150 fl2j01/I1 005151 OZ/03/11 INV04CE AMOUNT 2,919.10 1,493.16 3,346.50 248.18 283.80 12.00 563.83 4 91 . 64 00002298 OAT£ VENDORNO Ol/11 000000000458 AMOUNT PAIO DiSC. TAKEN NET AMOUNT ; 2,919.10 .aa 2,9�9.�0, 1,493.16 .00 1,493.26� 3,346.50 .00 3,346.SOi 248.18 .00 208.28E 283.80 .00 283.80{ 12.00 .OQ 12.00 563.83 .00 563.83 491.64 .OQ 491.64i eck Total 9,318.21, i � THE FACE OF THIS OOCUMENT NAS A COLOREO BACKGROUND ON WHI7E PAPER - THf BACK CONTAiNS AN ARTIF1C1Al WATfRMARK • HQLD At AN ANGLE TO ViEW BANK ATLANTIC Palm Beach Gardens Poiice D�fl0229$ 4360 Norihlake B3vd Ste 2Q6 Palm Beach Gardens, F{ 33410 63-8376t26�0 CNECK NO CHECK DA7E VENDOR N0. 2298 Ol/O1/Il OOOb00000458 an�ourur PAY NINE THOUSAND THREE HUNDRED EIGHTEEN AND 21j100 TO THE CITY OF PALM BEACH GARDENS ORDER 1Q500 N MILITARY TRAIL o� ATTN: LAUREN FERREIRA PALM BEACH GARDENS FL 33410 VOID AETER 1$0 DAYS ��'0000 2�98��' +: 26 708 3?6 3�;006 3 36 560 3�E' Paim 8each Gardens Po(ice vENOOR: QOOfl00000458 lNVOtCE NUMBER iNV010E DATE 005144 O1 02 Il 4Q5145 Ol/01/11 045146 O1/O1/11 Q45147 01/Ol/11 Q05148 01/O1/11 005149 01j41/11 005150 Ol/O1/T1 OQ5151 Ol/Ol/11 1NVOICE AMOUNT 2,919.I0 1,493.16 3,346.50 208.I$ 283.80 12.Q0 563.83 491.64 DATE 01/11 AMOUNT PAID 2,919.10 1,493.16 3,346.50 208.18 283.80 12.00 563.83 491.64 BOflDER CO`lTAINi MICRp�qiNTIN( 00002298 VENDORNO. 004000000458 D�SC. TAKEN NE7 AMOUNT I . oo a, 9z9. �.a .Od 1,493.16� .00 3,346.SOi .00 aas.isI .00 283.80i .00 12.Oa� .OQ 563.83' .pp 491.64� ck Total 9,318.21I Palm Beach Gardens Police v�NOO�: aa000000000l OATE 41j11 00oo229s VENDOR N4. 000000aoaaol INVOfCE NUMBER 1NVOiCE DATE INVOICE AMOUtVT AMOUN7 PAtO DISC. TAKEN NET AMOUNT 11010 JAN Ol Q5 11 2,290.69 2,290.69 .00 2,29.4.&9 eck Total 2,290.69 Patm Beach Gardens Po(ice 4360 Norihlake BEvd 5ta 206 Paim Beach Gardens, FI 33410 63•837fi12670 000022s9 BANIF ATLAI11TiC CtiECK N0. CHECK DATE VENOOR N0. 2299 01/05/11 04QQ00000001 PAY` �. AMOUNT TW4 THOUSAND TWO HUNDRED NINETY AND 6 9/ 10 0�,,�:;Y��ti ��;� . $2,290,69 TO THE QRDER a� PENSION RES�URCE CENTER 4360 NORTHLAKE BLVD STE 206 PALM BEACH GARDENS FL 33410 VOia AF7ER 180 DAYS BORUEPCONFAiNSYtCP� ��'00�� 2 299��' �: �67083763�:0063365603��' Palm 8each Gardens Police vEr�aoR: 000000000401 lNVOtCE NUMBER iNVOiCE DATE iNVOtCE AMOUNT 11Q10 JAN O1%OS 21 2,290.6� I�.:, Of}002299 OATE vEN00R r�0. 0�./1�. o�oaoa00000l AMOUNT PA�D DISC. TAKEN NET AMOUNT 2,290.69 .00 2,290.6 eck Total 2,290.6 �- Resource Centers, LLC 4360 Northiake Btvd., Suite 206 Palm Beach Gardens, FL 33410 I Date i2/3olzala ua <.;`,., � , � �S � :... llk3-lU �r v 3..�+G�-: r. �� x- . - e � _i Mail Payments ta: Resource Centers, LLC at Palm Beach Gardens address OR ACH Payment to: First Southern Bank Pension Resource Center - ASA #: 0670I2895 -, Account #: 8063b59206 If you have any questions concerning this invaice, please contact Bonnie Lindberg at Resource Centers, LLC Phone 562.459.2959 or email - 6onnie@ResourceCenters.com Palm Beach Gardens Po4ice ���Q23�0 OATE VENDORNO. vGninna• (1����(���t}�i 4 01/11 QOOOOOQ00015 WVOlCE NUMBER INVOICE DATE INVQICE AMOUNT AMOUNT PA(D DISC. TAKEN NET AMQUNT E CERT SPENCER Q1 OS 11 30.00 30.00 .OQ 30.OQ eck Total 30.00 � I I I i � BANK R7lANT1C " PAY - TH I RTY AND 4 0/ 10 0 hti ;ti'�j�,��`�;ti�r'�ti Paim Beach Gardens Police 4360 Northiake Bivd Ste 206 00002300 Paim Beach Gardens, Ft 33410 63-8376t2670 Ct1ECK NO. CHECK DA7E VENDOR NQ. . 2300 Ol/Q5j1I 000000000415 AMOUNT $30.00 ro Tt�E FPPTA oR��c• 2946 WELLINGTON CIRCLE EAST SUITE A OF TALLAHASEE FL 32308 VO{O AETE� �HO DAYS __,�ROERCOHTAMSWCN6PRNfi ��'��00 2 30�x►' �: 26 708 3 76 3�:006 3 36 560 3�r' Paim Beach Gardens Fo(ice nnnnnnnnnnt� 00002300 DATE VENDOANp. Ol/Il 000000000015 V��vuvn: vvvvvvvv.�vs..� INVOICE NUMBER iNVOtCE DATE INVOICE AMOUNT AMQUNT PAlD DISC. TAKEN lVET AMOUNT E CERT SPENCER O1 OS 11 30.00 30.00 .00 30.00 C eck Total 30.OQ 1 -�� � 1 � } � I FPPTA Florida Public Pension Trustees Association CPPT Continuing Education Verification Form For the Year 2010 ASSOCIATION TRUSTEES PENSION PUBL(C FLORIDA :� �-� I'tease see i-eti°erse sitie f'o�- i�C��� CPPT Posf-Cei•titication Rec�t�ii•er��ents Designee Infoi7nation: Naine: � � Coznpany/Pension Syste�l�: S�rcet Address: ���lC� . � City: � U,D i�� State: Zip: �� b� �'(.5 Ph�e:�� `' �o ��'�� �� � � E-mail: L' Q, � • r� 1 �... `�?� � ' �-�J �- ' � 3 �.� � Please mark the progcams you have attended: Y,C �,� Y�-��-'� �-�`�� -�,,(� � �- i0 Cvntinuing Edacatio�� Units �`� ���� FPPTA Trustees Schoot, February 20I0, Hyatt Regency 3acksonvilIe Rivei•frant. .iacks�rzville, Florida V FPPTA Ti-ustees School, October 2010, PGA Resort, West Paizn Beacl�, Fl�a-ida FPPTA CPPT Continuing Education Trip to Stock Exchange. March 20l 0, New York 5 Coutinuing Educatio�z Units State of Florida Police Officers & Firefighters Trustees School, May 20! 0, Tallahassee, Floi•ida NCPERS Annua! Confei-ence, May 201 Q, Vdinr� �esort, Las Ve�as, Nevada �FPPTA An��ual Conference, June 201 Q, Naples Grande Resort, Naples, �'Ic�l•ida State of Florida P�lice Officers & Firetighters Annual Confea-ence, October 2010, Oriando, Florida NCTR, October 2010, The Westin La Ca��ter•a, San A��to��io, 'Texas NPEA, Octaber 2Q10, Hyatt Regency Hotel, Inciine Village, Nevada International Foundatian of En�ployee Benetit Plans Annual Conference (various locations} Desibnee Signatur-e: Date: �� � - �, � Palrh Beach Gardens Police VFNnnR• i}OOO00000012 00002301 DAFE VENDOR NO. 0�/�1 0000aooaao�.2 INVOiCE NUMBER INVOICE DATE INVOICE AMOUNT AMOUNT PAIO DISC. TAKEN NET AMOUNT 113666 32 1Q 10 Q1 14 21 2,Q03.00 2,003.00 .00 2,003.00 eck Total 2,OQ3.OQ BANK ATLANTIC Paim Beach Gardens Police 00002301 4360 NorLhlake Bivd Ste 206 Paim Beach Gardens, Fi 33410 63-837Sf2670 PAY y, �� TWO THOUSAND THREE AND 0 0/ 10 Q ti;���'��y�'�;�,�Y1 { �orKE GABRIEL ROEDER SMITH & COMPANY ORDER P. O. BOX 7 S O Q Q oF DEPT #78009 DETROIT MI 4$278 CHECK N0. CHECK DATE VENDOR N4. 2301 OIj14/11 000aa000aola AMOUNT $2,003.00 VOID AFTER 780 DAYS i BORDEfi CONTAINS MfCRQPRitFTiNG= ��'00�0 230 Li�' ;:267083?63�:0063365603�i' Paim Beach Gardens Police �00023� � DATE VENOOR NO. vErvnoR: 000a000000�2 O1/11 oaooa000aola INVOICE NUMBfR iNVOICE DATE INVOICE AMOUNT AMOUPtT PAiD DtSC. TAKEN NET AMOUNT 113666 12 10 10 O1 24 11 2,Q03.00 2,003.OQ .00 2,003.d0 eck Tatal 2,003.00 i Gabriel Roeder Smith & Company ��� R� Consultants & Actuaries �� One East Broward Blvd. Suite 505 Ft. Lauderdale, Fiorida 3330 1-1 804 (954) 527-1616 c � BOARD OF TRUSTEES, CITY OF PALM BEACH GARDENS POLICE OFFICERS PF,NSI�N FUND t' Mr. J. Scott Baur, Administrator Resource Centers, LLC 43b0 Northlake Btvd., Suite 206 Palm Beach Gai•dens, FL 33� 10 ,� \ _, � r' ` ��1.�� , r�.! Invoice Invoice # 12/10/2410 113666 Ptease Remit To: Dept. # 78009 Gabriel Roeder Smith & Company PO Bax 78000 Detroit. Michiaan 48278-0004 or ACH Payment to: Cabriet Roecier Smith & Con�pany JPMor¢an Chase, ABA #: 0720O0�26 Account #: 048672� PLEAS� INDICATE TH� INVOICE NUMBER ON YOUR REMITTANCE. 1'HANK YOU. Palm Beach Gardens Police VENDOR: QOOO00000012 OATE O1/11 00002302 V£NOOR NQ. OOOOOQOOOQI2 ' lNVQICE Nl1M8ER WVOICE OATE INVOiCE AfUlOUNT AMOUNT PAID OISC. TAKEN NET AMOUNT 113937 12 31 10 01 24 11 3,745.00 3,745.00 .00 3,745.04 eck Total 3,745.00 i BANK ATLANTiC Paim Seach Gardens Police �i0��2302 4360 Northiake 61vd 5te 206 Palm 8each Gardens, Fi 33410 63-83�61267Q CHECK NQ. CHECK pATE YENOOR N0. 2302 Q1/14f11 dd000000d012 PAY AMOUNT THREE THOUSAND SEVEN HUNDRED FORTY-FIVE AND 00/1 � TOTNE GABRIEL ROEDER SMITH & C4MPANY ; ORDER p, O. BOX 7$ O O Q ! oF DEPT #78009 ` DETROIT MI 4$278 VOID AFTER 480 DAYS _...-. __.___. �...., ._�. __._, _�.. _...� .__.. _.._ _.."'... _...BORDER CONT4INS MICROPRINTiNI ��'��002302��' �:26?083763�:0063365603��' Palm Beach Gardens Police ��FNn�,R� ��nnc��n��o� � 00002302 DATE V£NDOR N0. Ol/11 000000000012 INVOICE NUM8ER WVOICE DATE INVOICE AMOUNT AMOUNT PAID DISC. TAKEN NET AMOUNT 113937 12 31 10 Ol 14 11 3,745.OQ 3,?45.4Q .00 3,745.00 eck Total 3,745.00 R�Gabrie! Raeder Smith & Company � � Consultants & Actuaries One East Broward Blvd. Suite SOS Ft. Laaderdale, Florida 33�i41-1804 (954)527-16I6 Invoice Date Invoice # ; 1 � t 0/20 i t 113937 r t � ' �. • � • � � BOARD OF TRUSTEES, CITY OF PALM BEACH J GARDENS POL[CE OFFICERS PENSION FUND Dept. # 7g009 Mr. J. Scott Baur. Administrator Resource Center�, LLC 4360 Northiake Sivd.. Suite 206 Palm Beach Ga�•dens> FL 334I0 � �'_ ��� , , �;.`_ ,� C '�" � ±� k �:; �= ! �` k� � k � �� � :t }j Gabriel Roeder Smith & Company P4 Box 78000 Detroit, Michigan 4$278-0009 or ACH Payment to: �abricl Roedei• Smiih & Co�7��any JPMorgan Chase. ABA #: 072000326 Accoz�nt #: 0486723 PLEASE INDICATE THE INVOICE NUMBER ON YOUR RENII'FTANCE. THANK YOU. Paim Beach Gardens Poiice vE�vooR: 000000000437 • INVdiCE NUMB£R ENVO�CE DATE INVOiCE AMOUNT 57531029 4T4QTR Ol 14 il 22,865.8: f OATE VENOOR N0. OOOOZ3O3 O1/11 000aaaa00037 AMOUNT PAID DISC. TAKEN NET AMOUNT aa,s6�.sa .ao ZZ,g�s.s eck Total 22,865.8 ; Palm Beach Gardens Police OOOQ2303 i 4360 Northlake $Ivd Sts 206 � Palm Seach Gardens, FI 3341 d 63-8376/2670 J BANK AT{.ANTIC GHECK N0. CHECK DATE VENDOR N0. ; a3o3 o�/z4/�.i ooa000000a3� i PAY annour�r � TWENTY-TWO THOUSAND EIGHT HUNDRED SIXTY-FIVE AND 82/1�0 $22,865.$2 ! irs��'��.'wv�'.��'v' ti'�: / I � i TOTNE ICC CAPITAL MANAGEMENT t � QRaE�t 3 9 0 OR�,NGE AVENUE 2 7TH FLOOR OF �• � �• FL 32801 VOiD AFTER 180 DAYS .��...."�."....�_�_..._._._.__.._._....._"'..._..-...`..__�.__-...._.___..__.._�._._.._,.�__..T...w..�__.__......_,`..�_.�,._...A_..�_......_._�.__.._._ 80ROER,COtVTA:NSMICAOAPINTiN( »'000�23�3�E' �:267083753�:0063365603��' Palm Beach Gardens Police .�cn,r�r,o. nnnnnnnflnil"�7 00002303 DATE VEN60RN0. o��s� 000aooaooa37 `,INVOICE NUMBER INVQICE DATE INVOICE AMOUNT AMOUNT PAIQ QISC. FAKEN NET AMOUN7 57531029 4T4QTR d1 14 11 22,865.82 22,865.82 .QO 22,865.$2 eck Tota1. 22,865.82 � 000 CAPtTAL MANAGEMENT PALM BEACH GARDENS POL{CE PENSfON FUND J Invoice Date: Dec 3 I, 24 i d The Pension Resource Center clo Bonnie Lindberg 4360 Northlake Blvd Suite 206 Palm Beach Gardens, FL 33410 � �-�" \ � � J _�� cs{ � ' �� �� fnvoice Number: 57531029 ` iCC Capita! Management, Inc. STATEMENT OF MANAGEMENT FEES For the period October 0!, 20 I 0 to December 3 f, 2Q i 0 Portfofio Va}uation with Accrued Interest as of 12J3 i120!(�`" f O,QOO,OOQ @ 0.54% per annvm I 1,05b,87i @ 0.375% per annum Quarzeriy Management Fee PastDuelCredit: TOTAL DUE AND PAYABLE Please mai<e checks payable to: ICC Capita( Management, inc. Report Date: jan 7, 20! f '� �T �. �: � r, �; �_° -������`i i t..' �'l��� $ 2 I ,056,870.94 ! 2,5QO.Q0 I 0,365.82 $ 22,865.82 O.QO _ _ _ _ _ �1 1 $ � z2,865.82 Please remic payment to: ICC Capital Managemen�, Inc. cio Lini Mohabir 39Q N. Orange Ave. Suite 2700 Orlando, FL 3280! 390 Narth Orange Avenue . 27ih Ftoor . Qrtanda, Florida 37.8Q1 . PN 800-480-6445 . PH 407-839-8440 . Fx 4Q7-841-2814 WE8 .:��:r . Palm Beach Gardens Potice vFrvooR: 000000000029 00002304 DATE VEND6R NO. Ol/11 000000000029 , iNV010E NUMBER iNV010E DATE INVOICE AMOUNT AMOUNT PA(D �ISC. TAKEN NET AMOUNi 000000000529517 0� 14 11 11,000.00 11,40�.00 .00 11,OOQ.{70 eck Total 11,000.00 Palm Beach Garderts Police 00002304 4360 Narthfake Blvd Ste 206 Palm Beach Gardens, FI 33410 s3-a3�sns�a i BANK ATLANTIC ! PAY ; ELEtTEN THOUSAND AND 0 0 j 10 0 tititi��,,.��,'•s��;j;1'.�� CHECK N0. CHECK OATE VENpOR N4. 2304 01/24/1I Od004000Q029 AMOUtJT $11,000.00 ' 307HE CHERRY, BEKAERT & HOLLAND, L.L.P � ORDER p. 0. BOX 2 S 5 4 9 ' oF ATTN: ACCOUNTS RECEIVABLE f RICHMOND �7A 23261-5549 � � VOED AFTER 180 DAY& S _ „�__ _,_ ___ ___ _ _ BORDLR CONTA1tiS MiCROPpQ7TING ��•0000 2304»' �:267083?63�:0063365603��' Palm 8each Gardens Police vENOOR: 000000a00029 lNVOICE NUMBER INVOICE DATE WVOICE AMdUNT 000004000529517 O1 14 11 r 7.1,0OO.OQ 00002304 DATE VENOOR NO- ol/Zi o0000000aoz� ANiOUNT PAID DISC. TAKEN NET AMOUNT 11,040.00 .04 11,04Q.0 eck Total 11,400:0 U CHERRY, BEKAERT & HOLLAND, L.L.P. P.O. BOX 25549 RlCHMOND, VA 23261-5549 (407}423-7911 Palm Beach Gardens Palice Pension Fund � C/O Pension Resource Cenfer, Jnc. 43&0 NorthJake 81vd., Suite 206 PaJm Beach Gardens, FL 33410 Invoice No. 529517 °. Da�e 12/30/2010 Client No. 4253650.0 FOR PROFESSiONAL SERVICES RENDERED: Progress biiling on audit of financia! statements for the year ended September 30, 2010 ' �t� �� � ,, �,� �,,t�, r�`"$ �1.000.00 il��_�� �?!�� �.° 1r��� !j �; 3f 3 i TERMS: InvoicDs are payabte upon presentation. A service charge wiii be added io pas# due accounis equa! to 1 1/2°o per monfh (18°Jo annualiy) an the prevlous monfh's balances less payments received during Ehe month. with a minimum charge of �2.00 per month. Pai�m Beach Gardens Police v�NOOR: ooaoa000aax� lNVOICE NUMBER INVOICE DATE INVOICE AMQUNT TH QTR 2010 OI 14 11 3,519.0( I 00002305 OATE VENDORNO. O1/11 OOQ000000216 AMOUiVT PAIO DISC. TAKEN NET AMOUNT 3,519.oa .ao 3,519.0 eck Total 3,519.Q i ( Patm Beach Gardens Police 000�230 'rJ 3 4360 Northlake Bfvd Ste 2Q6 �i Pa(m Beach Gardens, FI 33410 63-837612670 I � 8ANK ATLANTIC CHECK NO. CMECK DATE VENOOR N0. � 2305 Q1/14/11 0004d0000216 � PAY AnnauNt � THREE THOUSAND FIVE HUNDRED NINETEEN .AND d0/100 � TO THE ! ORQER ': OF RHUMBLINE ADVISERS 30 ROWES WHARF STE 420 BOSTON MA 02114 VOID AFTER 780 DAYS ��`0000 2 30 5��' �: 26 708 3 76 3�:C106 3 36 560 3��' Pafm Beach Gardens Police vErvooR: 000044004216 iNV010E NUMBER INVOICE DATE iNV010E AMOUNT TH OTR 2Q10 O1 14 11 3,519.00 00002305 DATE VENOOR NO. o�./il a000a000a2�6 AMOUNT PAiD DISC. FAKEN NET AMOUNT 3,519.d0 .00 3,519,0 eck Total 3,519.Q. � di `• I J �� �� Investment Advisory Fees Client: Pa1m Beach Gardens Palice fund �-` Biltable Assets: Period Ending: 10-31-2010 11-30-2010 12-31-2010 Average Assets: BiilabEe Assets: Fee Caicutafion: Total: Annual Fee: Quarferly Caiculated Fee: Tota! Quarterly Fee Due: Fee Allocation: Fee: Wire Transfer lnformation: RhumbLine Advisers Rockland Trust 288 Union Street Rockland, MA 42370 ABA# 0113Q4478 Acct beneficiary: 2970Qd3824 2mpbgard (SP540P) $7,306,618 8,510,040 9,076,339 $8,297,666 $15,824,550 Asset iier $� o,aoa,000 $5,824,55Q $45,824,550 2mpbgard {SP508Pj $1,845 +�� J � z �i_�') �,,: /� 4mpbgard (SP400P) $3,650,145 3,758,456 4,005,042 $3,844,548 Rate (BPs) OA0440040 o.000loaoo 4mpbgard {SP480P) $846 inv #: gpbgardens2Q1QQ4 ✓� Or by check, make payment to: RhumbLine Advisers 30 Rowes Wharf, Suife 42Q Boston, MA Q2110-3326 4ih Quatter 2010 7mpbgard {SP6QOP� $3,545,sa2 3,671,017 3,950,390 $3,722,336 Fee $10.00fl $4,Q77 $14,077 $14,077 $3,519 ,/ $3,519 � 7mpbgard (SP600P) $828 P�m Beach Gardens Police VENDQR: OOOOOOOOOQIO UUUU1�Ud DA7E VEfJDORNO. O1/11 ooa0000aoolo . INVOICE NllMBER tNVO10E DATE lNVOiCE AMOUNT AMOUNT PAID D�SC. TAKEN NET AMOUNT 70197 12 15 10 Ql 7.4 11 558.35 558.35 .OQ 558.35 eck Total 558.35 i BANK ATLANTIC Palm Beach Gardens Police 0�002306 4360 Nprthiake Bivd Ste 206 Palm Beach Gardens, FI 33410 s3-sa�ei2s�o CHECK NO. CHECK DATE VEN40R N0. a3os al/z4/1z o000000aoo�.o PAY. - AMOUE�IT FIVE HUNDRED FIFTY-EIGHT AND 35/100 ��;:��'„�,� $558.35 � TO THE FERRY & JENSEN, LLC y ORDER 400 EXECUTIVE CENTER DRIVE SUITE 207 ' o� WEST PALM BEACH FL 33401 VOiD AFTER 180 DAYS .__�_.._...._.._r„._"" ___._..._ . ._. .__.._ .._. _�._,.._.,__. BORDER CONTAFNS MICP��RiNifN( ��'OD00 2306�i' �:26 708 3 76 3�:006 3 36 560 3��' Palm Beach Gardens Police vcNnnR• (��(l�tl(}�n��l n 00002306 DATE VENDORNO. al/zl oa00000000la INVOICE NUMBEft INVOICE DATE INVQlCE AMOUNT AMOUNT PAID OlSC. TAKEN NET AMOUNT ?0197 12 15 i0 O1 14 11 558.35 558.35 .00 558.35 eck Total 558.35 _ _ ! THE LAW OFFICES OF PERRY � ENSEN, LLC t� J ANi1 Fi. PERRY aperry@perryjenseniaw.com December 22, 201 U Via Emaii Palm [3e�ch Gardens Police Pensian Fund� Resaurce Centers, LLC Attn: t�udrey Ross 4360 No�thlake Boulevard, Suite 246 Palm Beach Gardens, FL 33410 Dear Audrey: 80NNI SPATARA JENSEN bsjensen@perryjenseniaw.com ,1�i 1= • �, Ji ,�- �_ � �'��-� Re: Leqai Senrices Provided invoice #70197 l/ Enciosed please find the Firm's invoice fior services rendered for the peribd that end�d 12/1512010. Thank �you for your �ayment of $2,665.12. Your cusr�nt baiance due is $558.35. � � lf you have any questions, p#ease do not hes;taie to contaci me. SincErely yours, ° ' ;� ''� �, � �--�.__- � �`�� .- � r� , Bonni S. Jensen BS.!ladt Enclosure Copy to: Jay Spencer, Chairman David Pierson, Secretary Via Ema'si Only 40Q EXECUTtVE CENTER DEiiVE, SUtTE 207•: WEST PALM BEACH, F�aRioa 33401-2922 PH: 561.686.6550 �.• Fx: 561.686.2802 ��„ THE LAW OFFiCES OF PERRY & JENSEN, LLC 400 Executive Center Drive Suite 207 West Pa{m Beach, FL 33401-2922 Invoice submitted to: Palm Beach Gardens Police Pensian Fund Audrey Ross -via email c/a The Resource Centers, LLC 4364 No�th(ake Boulevard, Suite 206 Pafm 8each Gardens, FL 33410 Copy to: Chairman 8� Secfetary December 22, 2010 fn Reference To: FOR PROFESSltJNAL SERVlCES RENDERED AS FOLIOWS: Ciien# 1 File Na.: 0003 (nvoice #70197 Professional Services Auditor Inquirv Letter 12115/2010 BSJ Review Auditar's lnquiry Letter Review bilEing Draft response SU BTOTAL: Custodian - RFP 41/24/2010 BSJ E-Mail to .iohn McCann Review emai! from John McCann 11/29/2010 BSJ Revis�r emaii from bidder re: questions Review �espanse from John McCann Telephone cafi with Audrey Ross Draft email response to 8idders HrslRate Amount 1.00 200.Q0 200.00Jhr � �.o0 2aa.00� 4.25 50.00 200.OQIhr �.ao zao.oa 200.00lhr Palm Beach Gardens Police Pension Fund 71I29/2010 SSJ Review email from State S#reet declining to bid 'i211012010 SSJ Review and response to emaiis from Jay Spencer SUBTOTAL: !nv Mctr - General 121212a10 BSJ Review (etter frorn Dreyfus re: SEC Ray to Play rules SUBTOTAL: Summary Plan Descriptian 'f 1I22/2010 LB Prepare clean copy of Summary Plan Description E-mail to clean Summary Plan Description to Audrey Rass, copy to Chairman 8� Sec�eEary SUBTOTAL: Trustee Eiection 12113t2010 BSJ Review reappointments for Brad Seidensticker and Dave Pierson SUBTOTAl: � For professionaE services rendered 0 Page 2 HrslRate Amount 0.10 20.OQ 200.00lh� 0.10 20.OQ 200.00lhr 1.45 29Q.00] 0.10 200.00ihr [ 0.1Q 0.30 75.00/hr [ 0.34 za.00 20.40J 22.50 22.50J 0.10 20.00 zao.aamr � o. � 0 2a.00� 2.95 $552.5Q . Pafm 8each Gardens Police Pension Fund Additianal Charges : Bill File 12195i2090 Copy Charges SUBTQTAL: Tota( additianal cha�ges Far prafessianai services rendered Total amount of this bili Previous balance Accounts receivabie transactions 'I2/612090 Payment - Thank You!. Check No. QQ042296 Tota( payments and adjustments Baiance due Page 3 Amount 5.85 [ 5.ss� $5.85 2.95 $5b8.35 $558.35 $2,665.12 ($2,665.12} ($2,665.12} $558.35 ERNEST CARR GEORGE BETSHCA ROBERT THOMAS C4KE5 WATSON PALM BEACH GARDENS POLICE PENSION FUND Benefit Approvals Meeting of �anuary 27, 2011 APPLICATION TO ENTER THE DROP DATE OF BIRTH DATE OF HIRE DATE OF TERMINATION AGE AT RETIREMENT YEARS AT SERVICE FORM OF BENEFIT MONTHLY BENE�IT AMOUNT SUPPL.EMENTAL BENEFIT DATE OF BIRTH DATE OF HIRE DATE OF TERMINATION AGE AT RETIREMENT YEARS AT SERVICE FORM OF 6ENEFIT MONTHLY BENEFIT AMOUNT SUPPLEMENTAL BENEFIT DATE OF BIRTH DATE OF HIRE DATE OF TERMINATION AGE AT RETIREMENT YEARS AT SERVICE FORM OF BENEFIT MONTHLY BENEFIT AMOUNT SUPPLEMENTAL BENEFIT 42/26/1941 09/29/1997 04/30/2010 fi9 YEARS 12 YEARS CASH ANNUITY $5,889.28 $ 150.40 07J21/1951 09/12/1990 09/3QJ2010 59 YEARS 20 YEARS lOQ°/a J&S $5,204.00 $ 250.00 07/16/1963 o�/3�I19s8 09/30/20I0 47 YEARS 22 YEARS 10 YEAR CERTAIN $5,980.94 $ 275.QQ APP�ICATION FOR REFUND OF CONTRIBUTIONS DATE OF BIRTH DATE OF HIRE DATE OF TERMINATION TAXABLE CONTRIBUTIONS TOTAL REFUND YEARS OF SERVICE 10/04/1954 05/28/2010 11/24/2010 $1,840.99 $1,472.79 4 M()NTHS APPROVED: CHAIRMAN SECRETARY . DATE Pa/m Beach Gardens Po/ice Balance Sheet FY 2011 . Palm Beach Gardens Po/ice Statement of Income and Expense FY 2011 4001-0000 Dividend ai 4020-0000 Contributio 4120-0000 Realized G� 4120-1502 Fiducia 4120-1503 Fiduciarv 4120-1520 Dre fus International Bond 4120-1540 O enheimer International Bond 4121-OOQO Unrealized Gain Loss 4121-f5Q2 Fiducia Fixed Income 4121-1503 Fiducia E uities 4121-1520 Dre fus International Bond 4121-1540 O enheimer International Bond 4121-1601 RhumbLine S&P 400 MidCa 4121-1602 RhumbLine S&P 500 Lar e Ca 4121-1603 RhumbLine S&P 600 Small Ca 4121-1701 Van uard Global E uit 4121-1702 Van uard International Growth 4121-1703 Van uard International Value Total Income Accour�t Descri tion - Ex ense• 5100-0000 Benefit Pa ments 5110-0000 DRdP Account Withdrawals 5215-0000 Attorne Fees 5220-0000 Administrator Fees 5231-0000 Fiducia Liabilit Insurance 5232-0000 Fidelit EE Bond Insurance 5Z35-0000 Annual Membershi Fees 5250-0000 8ank Char es Total Expertse Reserve Fund Last Period '� TOTAL 53 12,fi13.3i (30,185.94 0.00 0.00 (33,775.55 242,119.68 0.00 0.00 121,463.17 268,146.14 144,144.64 0.00 0.00 0.00 833,981.59 5,178.17 0.00 2,275.00 1,064.17 664.48 600.00 211,792.65 41,426,891.79 622,188.94 2,049,080.73 55 562.23 57 967.23 25 261.54 3 797.62 64 980.83 11 463.37 0.a0 7 313.b0 0.00 6 459.96 171 400.57 256 523.Z2 63 957.01 Z33 328.51 0.00 44 184.83 O.OQ 24 703.66 108 311.75 246 585.69 2 313.39 566 298.75 125 414.66 279 373.ZI 0.00 74 708.68 0.00 67 365.86 0.00 49 461.23 334,1 I2.26 1,430,304.93 I 1ltnvatnha� T�Fnr1 DaraenTwf _,___ 0.00 0.00 29.90 � 2,665.12 2 291.50 Z 475.00 0,00 6 378.79 0.00 0.00 0.00 0.00 152.96 171.44 34 337.91 142 195.56 D49 080.73 42 248 855.08 199 774.35 1 Z88 109.37 48,855.08 43,536,964.45 39,405.20 44.184.83 548,932.51 74,708.68 67,365.86 49� 598.398.78 1 : 7,442.9b 664.48 600.00 Page 1 of � Audrey Ross �" �' ` n� �.__.__.._�....____�__._.,�_ _..:__�. _._. __ _ � _.__!'!�_�� F�om: Donna Cannon [dcannon@pbgfl.com] Sent: Wednesday, November 03, 2410 11:25 AM Ta: Audrey Ross Subject: RE: PBG Police - 2011 Meeting Dates Attachments: CafendarDate=1%2 Sende� ALLOWED L�Qmove ][ Block ] details Vanquish Anti-Spa�r� Controf Panel Hi Audrey, Your lanuary 27, 2011 at 3:00 p.m. meeting time is on the ca(endar {copy attached — see pg 2j. Also, I have resenred the fo1lowing dates: Wednesday February 9, 2011 9:Od a.m. Wednesday May 11, 2Q1I 9:Q0 a.m. Wednesday August 1Q, 2011 9:Od a.m. Wednesday Novembe� 9, 2021 1Z:00 a.m. Da you want me to continue to keep them reserved? Thank you, �.C�t?�'t.�ltt �. �Cl??r101Z '..i•tuniapaf,S�rcir.i�s (;cso��n�ttvr t iti� ��,t'vfin sBear,f� yardens �Pliolrr�: ?t1-7�39-4121 �1:tx:' Sti.!-.'99--l1 °3 cftannonC� b�,qfGcom From: Audrey Ross [mailto:audrey@resourcecenters.comj Sent: Wednesday, November 03, 2020 10:43 AM To: Donna Cannon Subject: RE: PSG Po(ice - 2Q11 Meeting Dates Ok lets do this...can we stiii meet 1/27 @ 3PM? If so we will keep that date and then discuss a future dates at that meeting. Thanks, Audrey Ross Resource Centers, LLC 4360 NoRhlake Btvd, Suite 206, Palm Beach Gardens, FL 33410 j Direct 561.459.3007 ( O�ce 561.624.3277 or 800.206.011& � Fax 561.624.3278 AudrevCa�resourcecenters.com � Piease visit: httQ:t/www.resourcecenters.cam NOTlCE OF CONFlDENTiALIT1': This t�ansmissian contains information that may be confidentiat and that may also be priviieged. Un(ess you are the intended recipient of the message {or authorized to receive it for the intended recipient}, you may not copy, forward, or otherwise use it, or disdose its contents to anyone else. If you have received this transmission ic► error, please �otity us immediately and delete it from your system. Please keep +n mind that any communication sent to our office may become pubtic record by way of the ctient being referenced. tRS CIRCULAR 230 NOTICE: To the extent that this message or any attachment concems tax matters, ii "ss not intended to be used and cannot be used by a taxpayer for the purpose oi avoiding penalties that may be imposed by law. 1 ' � t�f�� ���� t��t�u � ����� - -:� f�:. . � l ':'x�ji.. . � . ,. �� ... _ .->. �� -�.� -� � -} _ . . . �� :iJ! n � �i�' �'L 3Fi.L .r�1-.. ,:-.v+r .Z,.'• u~� ' _.' . '..I o-:,�?�7� .. �;. . _'-'�i h�';az¢i- , � �= -,,-,�w�^� � - � �� +; r:v,;wt � J:'��._': ! . � �' _.I . " .'' 2� _., �. a. ��... .:� :�.: � ,. �:. _ . Q• �+ -c> ! � . �. . ��.+� ; �7` , � � � ` ,� . r �""`,� , �� �._ �'�1�e4.1• w � ��� . . . ._._._ .��v�t.;,..;;.:... . S� p� �. �7\7 � /�.�� . ��'�'�y - . • • ; yl" M� A � s .�. � . •^ ^ � ; . _ . , ; .�.. `. ��� �:°�..,�_-,,, �� ,�. , • �t F 's.v �� .,� .�*...w+y - -� ''�"�'�'m` �.�. 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'''. +*' ., 1�R�'��� �� ��� s 4.- , 1 r�`� x .;?� r T ...�.. ,,,,,'�ay�+.c,,,,• . .. � 4,�; , frq�"'� z'�:�~J �,y�� t`�`�'�,�.,:Ri'!i �,," �.�• -` •- t�' �..'c;. . ��' � . . . . y`. v�`� a � y ' �� h �r� � PALM BEACH GARDENS POLICE PENSION FUND EXECUTIVE SUMMARY DECEMBER 31, 2�1� Palm Beach Gardens Police Pension Fund Executive Summary Report - _- - --,- _- Table of Contents SECTION Market Snapshot Index Comparisons Compliance Report Total Portfolio Pie Chart Manager Pie Chart Asset Allocation Table Total Ranks Table Manager Ranks Scatterplot Graphs: Total Fund Graph Rhumbline Equities Graph ICC Fixed income Graph Beta Graph Alpha Graph Beta/Alpha Table Batting Average Graph Batting Average/R-Squared Table Other Managers' Page � 1�,11i�ilY .���rt �Dit�itlittig r� PAGE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 � �1�i�t1� ,����� C��n�ul#irt� � , �,� _ � 1 .!% ; � < `� �Nr:�' Major Economic Indicators MARKET SNAPSHOT 4T" QUARTER 2010 INDEX RETURNS QTR 1-YEAR S&P 500 10.76% 15.06% Rus.se111000 11.19% 16.10% Russe111000 Growth 11.83% 16.71% Ru.SSell 1000 Value 10.54% 15.51% S&P Mid-cap 400 13.50% 26.64% MSCI EAFE Barclays Aggregate ♦ The CPI-Urban/1982-84=100 (unadjusted) for the 12-month period ended December 2010 increased 1.5%. The seasonally adjusted annual rate for the fourth quarter is 3.5%. ♦ The Producer Price Index (PPI) for Finished Goods (seasonally adjusted) increased 0.4% in October, increased 0.8% in November and increased 1.1 % in December. For the 12-month period ended in December the PPI (unadjusted) advanced 4.0. ♦ Real Gross Domestic Product (GDP) increased at an annual rate of 2.6% for the third quarter of 2010. In the second quarter, real GDP increased 1.7%. ♦ The seasonally adjusted unemployment rate is 9.4% in December compared to 9.6% in September. TIIIST�LF: ASSE7' COtiS[;L"CItiG 1321 Piazz Delle Pallottole, Boynton Beach, Florida 33426 Phone: 561-737-3996 Facsimile: 561-737-6119 6.65% 8.21% -1.29% 6.56% Federal Reserve News ♦ During the fourth quarter, the Federal Reserve Board kept the primary discount rate to 0.75%. 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: Energy increased 20.86% in the fourth quarter. ♦ Worst Performing Sector: Utilities decreased 0.02 in the fourth quarter. Source: Standard & Poors (Performance reflects Price Returns Only) ---- --- - - . ._ _- ----- - — - lndex Comparison -- - December 31, 2010 40.00 30.00 � 20.00 � � a � 10.00 0.00 i -10.00 3 Mo»ths Last 12 Months Last 3 Years (Annualized) ■Barclays Goe/Credif Bond ■Rusself 1000Giowth ■Rus.se1I2000 Value � l:itt5tl� �SFt LDtt�ltltttlQ� ■Barclays C�rv/Gedif-Mterniediate ■Rus�ll 1000 Value ■ R ussell 3000 D S£�P 500 ■ Russe(! 2000 Grvu�th OMSCf EAFE Pnte ' Palm Beacb Gardens Police Pension Fund CompL'ance Report _ --_--° - _ - --__ : - - - - - - _ - --- - _ -__-_-__ December 31, 2010 : � � - - - - ___-- ------ 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, � r 10% S&P600,10% R1000G,10% EAFE, 31% BCGC & 4% Non US �a World Gov. Bond? [2.60 vs. 1.97] 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% [nternational Equity, 31 % Broad Fixed & 4% International Fixed Income? [SthJ 3. Did the total retum of the fund over the trailing 3-year period equal or exceed 7.5% (actuarial assumption rate of retum)? r ,� [2.60 vs. 7.50] -- - - - --- ------ - ----------- ---- - - -- -- -- TOTAL EQUITY 1. Did the equity retum, over the trailing 3-year period, exceed the 38.4% S&P 500, 15.4°� S&P 400,15.4% S&P 600,15.4% �� �- R1000G index and 15.4 % EAFE? [-0.05 vs. -1.06] 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 R1000G index and 1�.4`% EAFE? [3.90 vs. 3.32] 3. Did the equity retum, over the trailing 3-year period, rank in the top 50% of the Mobius 38.4% Broad L,arge Cap, 15.4% Mid � r Cap, 15.4°/o Small Cap, 15.4% Broad [arge Cap Growth and 15.4% [nternational Universe? [9th] 4. Did the eyuity return, over the trailing 5-year period, rank in the top 50% of the Mobius 38.4% Broad Large Cap,15.4% Mid � f Cap, 15.4% Small Cap,15.4% Broad Large Cap Growth and 1�.4% [nternational Universe? [9th] 5. Is the amount invested in any single security less than or eyual to 5°� of the market value of the total eyuity portfolio? � �- 6. Is the amount invested in any single industry less than or equal to 20% of the market value of the total equity portfolio? � r - - -- - - - - - -- --- ---- - TOTAL F1XED INCOME _ -- - --- --- - --- - - -- - - -- -- --- 1. Did the fixed income return, over the trailing 3-year period, exceed the 89 % BCGC and 11°h Non-US World Gov't Bond? �- � [4.66 vs. 6.02] 2. Did the fixed income return, over the trailing 3-year period, rank in the top 50% of the Mobius Broad Fixed Income � � Universe? [39th] 3. Did the fixed income return, over the trailing S-year period, exceed the BCGC? [4.74 vs. 6.03] �- �-, 4. Did the fixed income retUrn, over the trailing 5-year period, rank in the top �0% of the Mobius Broad Fixed Income ,� �- Universe? [41st] 5. Is the amount invested in any single security (with exception of U.S. Government and its agencies) less than or equal to 5% � r of the market value of the total fixed income portfolio? 6. Is the minimum quality rating of the domestic bond investments BBB from Standard 6z Poor's or BAA from Moody's? � r � l�,hi5tle .�5et �n�i�idti�tg � F'iigr 3 Manage� Compliance Questionnare _ __ - _ _ _ _ _ _ _ _ _ _ __ Decemt+er 37, 2010 _ - _ _ _ -- -- _ _ _ 7. Have there been any changes in your orp,an'vaHon7 Have you undergore any change in ownership or control? No 2. Have there been any changes in your investment philosophy? No 3. 1-Uve there been any chanqes in your sWff of investment pro(essionals? No 4. Have you lost a substan[ial amounl of business (amounl of percentaqe of assets under management)? No 5. Have you gained a substantial amounl of business (amounl of percentage of assets under management)7 No 6. Have there been any new investiQations krgun try� any slete or feeleral govemment or their agencies, or any charges filed, with regard to any division or unit of your company, and in particular anyone who direclly or indirectly perlorms services for this client? Please provide details (if there is any doubt, please err on the side of providinq too much information). No 7. For managers, with fixed inmme portfolios that we monitor, are you currently invesled in commercial mortgage bacAed securities (CMBS)? (If yes, please give % of fixed portfolio) No 8. Are you invested in any unhedgecl and/or levereqed derivatives? No 9. What percentage of equity is intemational? The manager must immediately notify the Board and the Consultant when the intemational expomre reaches ten percent (10%). An explanation will be needed as to why the manager is changing lheir discipline. (This does not apply to managers that are 100% intema[ional equity and to those that have been previously given permission by the board and the consultant) 0.00% 10. Arn you invested in any companies on the SBA's wetrsite? (Please review list o( scrutiniud companies on Ihe following website: h��,(/www,sl,a(la.�iin�_c�'rofe�lint�i.n �.Im�•nts.\rl[�ahiitf40�1)e(au_It.a_Lx No 1 I. Name of person completing this form (please indude company name)? Steven Stack Chief Compliance (Nficer �l�,histlr �sri�unsultinq� Fixed Incorne 3 7% Palm Beach Gardens Police Pension Fund Tota1 Assets December 31, 2010 Cash 1% i■Equities ■Fixed Income ■Cash l �i (1,,J1i�f�P ,���Pt LOII,�Illtttl T � `�9' ities % Page 4 Intl. Bonds 3% ICC 14% Palm Beach Gardens Pol�ce Pension Fund Total Assets December 31, 2010 Rhumhline SF�P500 Ir:tl. Equity J 9% ine S£�P400 9% ine Sf�P600 9% — - . - —_ _— -- - -- --- --_ _ _ -- ------- - - ----- -- ----- - � ■Rhumbline S&P500 ■Rhuntbline S&P400 ■Rhumhline S&P600 Olntl. Equih� ■ICC Lg. Graurth Olntl. Bonds 01CC Fixed � �h��tle .���pt C�att�ultirtg � Page 5 Palm Beach Gardens Police Pension Futld Performance Evaluation Summary - ----------- ---- ------- --- - December 31, 2010 Manager Rhumbline S&P500 Rhumbline S&P400 Rhumbline S&P600 Intl. Equity ICC Lg. Growth Intl. Bonds ICC Fixed TOtQI °o of Total Target °% � �it5t�� .�55Ft COtl5llltilli� � Equities Fixed Income $9,076,000 $4,005,000 $3,950,000 $3,728,000 $5,893,000 $0 $0 $0 $0 $0 $0 $1,409,000 $0 $14,805,000 $26,652,000 $16,214,000 61.6°�� 37.5% 65.0% 35.0% Cash $0 $0 $0 $0 $0 $0 $374,000 $374,000 0.9% 0.0% Total $9,076,000 $4,005,000 $3,950,000 $3, 728,000 $5,893,000 $1,409,000 $15,179,000 $43,240,000 100.0% 100.0% °% of Total 21.0% 25. U °U 9.3°�b �o.o�v 9.1.% 1 p.0"�� 8.6% 10.0°�0 13.6% ,,, ,, � 3.3°.'0 �.n�� 35.1% 31.0°� 100.0% �VLl. C� ��� Page 6 Palm Beach Gardens Police Pension Fund Performance Evaluation Summary - -- - --- --- -- - _ ---- -=_ - --- - -- --- -- -- -__ ---------- December 31, 2010 Current Fiscal Year uurter FYI'D Oiie Year Three Years Five Years 2010 2009 2008 2007 2006 --____ - -- ------- ---- -- - ---- -- TOTAL FLIND (Net of Fees)(Iizception 3-31-1992] Return 5.89% 5.89% 12.90% ?.i,U"�„ 4.61 % 10.09% �.r;?°;, ° � � -13.73 /0 11.90 / 6.71 /o Ranking (*) �5 8� 53 � 10 � � � ? ,- 56 53 Policy Return (*") 6.97% 6.97% 14.29 % 1.97% 4.63 % 10.82% 1.64% -12.83 % 12.98 % 7.22 % Policy Ranking (*) 54 54 � 1 t? t!1 '- 51 1.> 31 3� Retu»i Ranking (***) Polic� Return (38.4 % S&P50Q 15.4 % S&P400, 15.4 % S&P600, 15.4 % R 1000G, 15.4 % EAFE) Policy Ranking (***) TOTAL EQUITIES(Net of Fees)(Inception 6-30-2000] 11. i�)",�. 11. i�),, j,�.�i"",� -U.l.iu�'a i,,tiJ„n 1?.it,.�,� -1.U�un -23.28% 1-.�ti�)�,o �)-/�i���, 49 49 '� 1� ?,� 1� 1�� 76 48 52 11.56% 11.56% 17.76% -1.06% 3.32 % 50 50 - 3� 43 -- __---- - TOTAL FIXED INCOME(Net of Fees)�Incep 11.44% -4.36% -21.04% 17.05% 9.27% '�; 65 ; ] 62 55 3-31-1994] Retut-r� -1.86% -1.86% 6.32% 4.66% 4.74% 7.63% 11.10% 0.54% 4.37% 2.98% Ranking (Broad Fized) 58 58 44 >�� 41 45 53 ?� �10 83 Polin� Ret«rri (89% BCAB arrd I1 % Non-US Worlcl Goz�'t Borid) -1.28 % -1.28 % 6.46% 6.02 % 6.03 % 7.79% 11.19% 3.85% 5.61 % Policy Rariki�ig (Broad Fixed) 51 51 43 _'t� '? 44 53 1.� l�1 * 25 % Broad Large Cap Core, 10 % Mid Cap, 10 % Small Cap, 10% Broad Large Gratoth, 10% Internationnl, 4% Intl. Bond, 31 % Broad Fixed "*25% S�P500, 10% S&P400, 10% S&P600, 10% 21000G, 10% EAFE, 4% Intl. Bond 31 % BCAB *** 38.4% Broad Large Cap Core, 15.4% Mid Cap, 15.4% Small Cap, 15.4% Broad Large Cap Grozoth, 15.4% Internatirnial . �, .,. . .�1� ,,1� ,. . .�� � !i! ;;!.�� t �r ti� !i; °�� , r�� � �!r Red rndreafes hottn��r =�0°0 of �rrriz�erse 1 _ l,histle .�5�et �nn�ultiitg � 3.50 % 62 Page 7 Palm Beach Gardens Police Pension Fund Performence Evaluation Summarv December 37, 2010 Cunent Fiscal Year uarter Fl"7'D One 1"ear Three }'ears Five }"enrs 2010 2009 2008 2007 2006 - - - - - - --- RHUMBLINE S&P 500 EQUITI' PORTFOLIO(lnceptiort 6-30-2000) __ Return 10.73% ]0.73% 75.05% - �; _� -�,.i����. .'I_"°o In.b3°�„ 10.55"%� Ranking (Br.Large Cnp Core) 51 57 50 47 44 ''� 55 �n �`� -- Policy(S&P500) ]0.76% ]0.76% 75.06% -2.86% 2.29% ]0.76% -6.9]% -27.98% 16.44% ]0.79% Policy Rariking (Br.Large Cnp Core) 50 50 50 53 50 ��� 62 �i� 43 ?'� - -- - ------ -- - - --- ------ --__ -- RHUMBL/NE SFjP 400 EQUITI' PORTFOLIO(Inception 72-3]-2002) Return ; . ,u 26.67 % � ��n'�" ��.�, 17.77% --_ , � -!b. i�! 18J4% o.�i0",� Ranking (Brnad Mid Cap) 48 48 7- �� I I' 100 '� l 85 Pnlicy(S&P400) 13.50% 13.50% 26.64% 3..53% 5.74% llJ8% -3.10% -16.68% 78.76% 6.56% Policy Ranking (Broad Mid Ca�) 48 48 1 i� I�� 1�' - 100 �� I 85 - -- _ RHUMBLINE Sf�P 600 EQUfTY PORTFOLIO(Inceqtio�i 10-3]-2003) Return 16.14% 16.14% 26.14% ;.lJn ��, r. � 74.14% -li�.;J`" -i;.i�l . 1-,!- ;.�>t"� Ranking (Broad Smnll Cap) 44 44 48 50 55 - 86 '? 51 52 Policy(S&P600) 16.24% 16.24% 26.31% 3.02% 4.64% 14.21% -10.67% -]3.83% 74.93% 7.16% Policy Ranking (eroad Small Cap) 47 4] 45 5] 58 'r, ti6 53 56 ICC CARGE CAP GROIVi'H EQUITY PORTFOLIO(Inception 9-30-2007) -_ _ ___ _ _ _ 2-Years 3-Years Return 11.65% ll.6.5% � , � .- �. ;. -' , �� -30J9% ri/n n/a Ranking (Broad Laige Cap Grou�th) 47 47 '_ i _ � , I 700 n/n n/n Po(icy (R 1000G) ] 7.83% ] 1.83 % 16.71 % 26.55 % -0.47% 12.65 % -1.85 % -20.88 % n/n n/a Policy Ranking (Broad Large Cap Growth) �!i J�� � 'u � „ n�n n/n INTF_RNATIONAL EQUITI'(Inception 9-30-2006) - - - _ _ -- - 4-Years - - -- Retunv -1,�, ,�ti ur -J.h>� -o.u�r� �ln����, 2.30% -"�.lu°��, _,-.�ti.,,. n�� Ranking (lnternational Equity) 43 43 �� � ��� �' 48 �h 43 n/n Policy (MSCI EAFE) 6.65% 6.65% 8.21% -6.55% -2.30% 3.71 % 3.79% -30.12 % 25.38% n/n Policy Rnnking Qnternational Equity) 69 69 72 54 56 65 �'� 45 57 n/n kr�l �nJrcat�_; h��ttoni 40°0 of auii:��r�c� T � �litStlF ,�55Pt �011�liltltlQ n��g� s Palm Beach Gardens Police Pensron Fund Performance Evaluation Summary _ -- - _ - - -- - --- - _ _ Decer►iber 31, 2010 C��rrent Fiscal Year uarter FYTD One Year Three Years Fiz�e 1'enrs 2010 2009 2008 2007 2006 --- _ - --- - _ - ---- — - -- - --- - - ----- -_-- — -- ------ - -- -- --- — ICC FIXED lNCOME PORTFOLIO Return -1J8% -1J8% �,.�� �,� 5.28% 5.35% 8.10% 11.�3��" 1.22% Ranking (Broad Frxed) 57 57 47 �> _ 42 46 ?� Policy(BCAB) -1.?9% -1.29% 6.56% 5.91 % 5.80% 8.17% 70.56% 3.66% Policy Ranking (eroad Fixed) 52 52 42 _'� _` � 41 57 !� INTERNATIONAL FIXED INCOME PORTFOLID - -- _ — - Return -i.'�-°. -�.;, , n/a n/a n/a n/a n/a Policy (Non-US Wor[d Bon�i) -7.45% -1.45% n/a n/a n/a n/a n/u R�'d in�licates hottalr 40%0 ofuriinci.��, n/a n/a 4.98% 3.56% '- 59 5.13% 3.67% '� 54 n/a n/a nJa n1a � �Iti5t�E :�55Ft �QII�II�ttIIA� Pnge �s __-- ---__ ------ — --- - December 31, 2010 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 (volanlity) has also been less than (to the left ofJ 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). � �hi�tl� .���Ft �on�ultirig �i : Palm Beach Gardens Polrce Pension Fund Total Fund Trailing 5-Years (iersus 25% S&P500, 10% S&P400, 10% S&P600, 10% RIOOOG, 10% EAFE, 4% Non-US World Bond, 31% BCGC) Decernber 31, 2010 ,� Good Aggressive k o� � z ..r i � � � � �� 0 � +r � � � 'N � U � .!,"'1, " q Consen�atiz�e Bad -3 -3 �i �i1t5t�P .��5pt �Ot151Iltill� � 0 Risk (Difference in Standard Deviations) i • 12/31/207 0 ♦ 9/30/207 0 ❑ 6/3%'O] 0 0 3/3 7/2010 � Page 9 3 � '� � � � � � � � �n 0 � � o� � � .� o� v � .� Q -3 -3 Palm Beach Gardens Police Pension Fund Total Equlty Trailing 5-Years (versus 38.4% S&P 500, 15.4% S&P 400, 15.4% S&P 600, 15.4% R1000G & 15.4% Intl. ) Good Consen�atiz�e �i �lTi�tl� .��5et �on�ttltittg � � December 31, 2010 0 Risk (Difference in Standard Deviations) , •12/37/Z010 ♦9/30/2010 ❑6/30/2070 ♦3/37/2070 ' Aggressive :. Pnge 10 3 � '� � � � � � � � �n 0 � � � o� � � .� u � .� Q -3 Sc� Good Conservatiz�e Palm Beach Gardens Polrce Pension Fund Total Fixed Income 5-Year Trail�ng (versus 89% BCGC, 11% Non-US Wor/d Gov'tBond) December 31, 2010 � ❑ • 0 Risk (Difference in Standard Deviations) i • 12/31/207 0 ♦ 9/30/20] 0 O 6/30/107 0 e 3/31/Z07 0 �i �1115t1P .�a�Pt LDIl�l1lttlii� `�Ji� Aggressive Bad 3 Page 11 Dec-10 Se�'r-10 Juri-10 Mar-10 Palm Beach Gardens Police Pension Fund Beta: Trailing 5-Year Risk (or Inception ifLess) --- -------- - -- --- ---- December 31, 2010 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 pLarge Cup ❑Mid Cup OSmull Cap ■Total Fixed Olnternutional ■Large Grou�th 1i i �hi�tlp ,.�£aPt LOn�l�jtitl �N�/' � Page 12 4.0 % 2.0% 0.0 % -2.0% -4.0% Palm Beach Gardens Police Pension Fund Alpha: Trailing 5-Year Reward (or Inceptron ifLess) December 31, 2010 TOTAL FUND F� INDIVIDUAL MANAGERS Dec-10 Sep-10 /un-10 Mar-10 ■Total Fu�id pLarge Cap ❑Mid Cap OSmall Cap ■Total Fixed Olnternational ■Large Grou�th �i �lil�f�P ,���Pf LDt�51IItiIIQ `�' , Page 13 Palm Beach Gardens Police Pensron Fund A1pha & Beta: 5-Years Trailing (or Inception iFLess) Decernber 31, 2010 BETA Current Policu Dec-10 S�-10 un-10 Mnr-10 Total Fund * 0.76 0.76 0.75 0.76 Managers, Fixed Income Total Fixed Managers, Equities Large Cap Mid Cap Small Cap International Large Growth l: L: S&P500 S&P400 S&P600 EAFE R1000G ALPHA 1: 0.99 0.99 0.99 0.41 1.08 1 •. 0.99 0.99 0.99 0.43 1.09 ,1 : 0.94 0.98 0.98 0.41 1.01 Total Fund * 1.10% 0.98% 0.83% Managers, Fixed Income Total Fixed BCAB -0.41% -0.06% 0.18% Managers, Equities Large Cap S&P500 0.23% 0.22% 0.17% Mid Cap S&P400 0.12% 0.13% 0.15% Small Cap S&P600 0.21 % 0.19% 0.45% International EAFE 1.86% 0.84% -1.82% Large Growtli R1000G 1.38% 1.82% 3.26% " 25 % S£>P 500, 10 % S&P400, 10 % S�P600, 10% R1000G, 10% EAFE, 4% Non-US World Gov't Bond, 31 % BCAB ��i ��1t5f1P ,���Pt �on�ultin � � 1 •: 0.99 0.99 0.99 0.42 1.10 1.05% -0.24% 0.22 % 0.16 % 0.18 % 0.37% 2.10% Page 14 100 75 50 25 0 Aalm Beach Gardens PoUce Pension Fund Batting Average: 5-Years Trarling (or Inception ifLess) December 31, 2010 TOTAL FUND � INDIVIDLIAL MANAGERS _ __- -. __ _...__._._._._ _.._-----_- -----� Dec-10 Sep-10 /un-10 Mar-10 ■Total Fi�ttd OLnrge Cnp OMid Cnp OSnmll Cnp OTnta( Fixed Olnternntinnnl ■Lnrge Growth � �I115tIF .��5et �on�iiltittg � Pnge 15 Palm Beach Gardens Police Pensioa Fund Batting Average: 5-Yeats Trailing (or Inception ifLess) - --_- . - _-_ :-- _ __ : --- -.- - --- December 31, 2010 BATTING A VERAGE Cu rren t Polinl Deo-10 Sev-10 urr70 Mar-10 Total Fu�id * 35.00 35.00 35.00 30.00 Managers, Fized Income Total Fi.red BCAB 25.00 65.00 60.00 65.00 Mnnagers, Equities Large Cnp S&P500 65.00 70.00 70.00 65.00 Mid Cnp S&P400 55.00 60.00 55.00 55.00 Sniall Cap S&P600 60.00 60.00 60.00 55.00 Interriatiorial EAFE 64.71 62.50 60.00 57.14 Large Croioth R1000G 53.85 58.33 63.64 60.00 ---- ----------- --- _ R-SQUARED Total Fund * 0.96 0.96 0.92 0.96 Maringers, Fixed Incor�ie Totnl Fi.red BCAB 0.75 0.82 0.66 0.83 Managers, Er�uities Large Cap S&P500 1.00 1.00 0.93 1.00 Mid Cap S&P400 1.00 1.00 0.96 1.00 Smalf Cap S&P600 1.00 1.00 0.96 1.00 International EAFE 0.25 0.26 0.24 0.23 Large Grototh R1000G 0.90 0.90 0.80 0.89 * 25% S&P 500, 10% S£�P400, 10% S&P600, 70% R1000G, 10% EAFE, 4% No�t-US World Gov't Bortd, 31 % BCAB � l�,hi�tle .���et �ott�ttlti�tg � �ag� ,� Pedormance o!O[her Managers December 31, 2010 Qtr YTD CORE EQUITY Atlanta Capital Management Co., LLC - High Quality Grozoth Plus - Gross Size 1 Yr 3Yr 5Yr lOYr Eagl� Asset Management - Consematiz�e Large Cap Equity - Gross Size 10.87 ]0.87 12.07 -2.46 ICC Capital Management, Inc - Core Value - Gross Size 11.34 11.34 13.04 -2.38 1 nverness Counsel - Miami Beach Fire & Police - Gross Size (Equity Only) 1].02 11.02 14.23 -3.12 W VESCO - Structured Core Equity - Gross Size IronOak Advisors - Large Cap Core - Gross Size 9.60 9.60 11.15 -2.89 Madison Investment Adz�isors, Inc. - Large Cup Equity (Instl) - Gross Size 9.28 9.28 ]0.69 0.57 Rhumbline Advisers Corporation - Russell 10001ndex Fund - Gross Size 11.15 11.15 76.00 -2.06 Rhumbline Adznsers Corqoration - SbP 5001ndex Fund - Gross Size Robeco Ira�estment Manugement, Inc. - WPG Disc Equity Large Cap - Gross Size 10.9] ]0.91 13J1 -314 RBC Global Asset Manugement - Large Cap Core 10.23 ]0.23 73.20 -3.38 Russe111000 11.19 11.19 16.10 -2.37 S&P 500 10.76 10.76 15.06 -2.86 GROWTH EQUITY Denver (nvestment Advisors, LLC - Grozoth - Gross Size 14.71 14.71 16.28 -3.03 Garcia Humilton & Associates - Quality Growth - Gross Size 13.24 13.24 17.23 0.16 ICC Capital Management, I nc - Large Cap Grourth Equity - Gross Size 11.7 7 ll.17 16.66 3.99 Logan Capital Management - Large Cap Growth - Gross Size ]3.33 13.33 36.52 -0.47 Montag & Caldu�ell, Inc. - Large Cap Growth - Gross Size 9.33 9.33 9.46 -0.89 OakBrook Innestments, LLC - OakBrook Select Equity - Gross Size 6.65 6.65 10.02 2.07 Rhum6line Adznsers Corporation - Russell 7000 Growth 1 ndex Fund - Gross Size 11 J6 11.76 16.64 -0.40 Sawgrass Asset Management, LLC - Large Cap Grozuth Equity - Gross Size 7.53 7.53 10.87 -3.47 Silz�ant Capital - Select LCG Stock - Grosss Size 12.12 12.12 16.04 -1.58 SIPCO - U.S. Growth Leaders - Gross Size 10.96 70.96 ll.77 3.02 Russe111000 Growth 11.83 11.83 16.71 -0.47 S&P 500/Citigroup Growth 11.02 11.02 15.05 -0.50 Rhumbline Large Cap(FYE) ]0.73 lOJ3 75.05 -2.62 Rhumbline Mid Cap(FYE) 13.50 13.50 26.61 3.66 Rhumbline Small Cap(FYE) 1614 16.14 26.74 3.06 Internutional Equity(FY'E) 7.48 7.48 13.01 -4.62 ICC Large Groenth(FYE) 11.65 11.65 77.37 3.39 ����.��ao�� 2.13 3.08 3.33 4.16 4.41 3.91 1.90 3.17 3.70 3.10 2.79 1.93 2.31 2.63 2.87 4.17 2.59 1.83 2.29 1.41 3.67 2.35 3.84 1.01 4.55 1.52 5.67 2.52 5.34 1.56 5.10 5.44 3.86 0.18 2.36 2.97 5.11 3.30 7.46 3.75 0.02 3.60 1.00 2.50 1.58 5.82 n/a 4.8] n/a n/Q n/a n/a n1a ��Tge > > Perlo�rnance ol Uther M•rnagers December 31, 2010 VALUE EQUITY BRC Inz�estrnent Management Large Cap Value - Gross Size Buckhead Capital Management - Value Equity - Low P/E - Gross Si2e Cuscade Investment Counsel, LLC - Large Cap Value - Gross Size Cohen Fj Steers Capital Mgmt., Inc. - Cohen & Steers Lurge Cap Value - Gross Size Crau ford Inz�estment Counsel, Inc. - Dividend Grozuth - Gross Size DePrince, Race, Zollo, Inc. - Large Cap Vnlue Equity - Gross Size Eagle Asset Management - Value - Institutional - Gross Size ICC Capital Management, Inc - Core Vulue - Gross Size Loomis, Sa�les fj Company, L.P. - Large Cap Value - Gross Size Missouri Valley ParMers - Large Cap Value - Gross Size Rhumbline Advisers Corporation - Russell 1000 Value Index Fund - Gross Size State Street Global Adnisors - Actiz�e U.S. Large Cup Value Strategy - Gross Size The Boston Company Asset Mgmt., LLC - US Large Cap Value Equity Management Ceredex Value Ad Large Cap Value RBC Global Asset Management, Inc. - Large Cap Value - Gross Size Westu�ood Management Corporation - LargeCap Equity - Gross Size Russe111000 Value S&P 500/Citigroup Value MID-CAP EQUI7Y Amalgamated Bank - LongViezo 400 MidCap Index Fund - Gross Size Batterymarch Financial Mgmt., Inc. - US Mid Cap Russell - Gross Size Chicago Equity Partners, LLC - Mid Cap Core Equity - Gross Size Mutual of America - Mid-Cap Equity Index - Gross Size OakBrook Investments, LLC - Enhanced MidCap Strategy - Gross Size Rhumbline Adzrisers Corporation - S&P 400 Index Fund - Gross Size Roheco Investmrnt Management, Inc. - BPAM Mid Cap Value Equity - Gross Size State Street Global Adznsors - Mid Cap Core Strategy - Gross Size Russell Midcap S&P Midcap 400 Rhumbline Large Cap(FYE) Rhumbline Mid Cu�(FYE) Rhumbline Small Cap(F1'E) Internutional Equity(FYE) ICC Large Grozoth(F)'E) Y"our Equities Qtr 11.50 6.74 10.06 8.95 11.83 10.76 11.35 11.34 12.57 11.22 10.50 YTD 11.50 6.74 10.06 8.95 11.83 10.76 11.35 11.34 12.57 11.22 10.50 12.12 12.12 12.62 12.62 10.25 10.25 10.59 10.59 10.54 10.54 10.51 10.51 13.50 13.50 71'r 15.10 7.43 17.40 9.51 14.68 18.24 11.27 13.04 12.85 12.97 15.48 3Yr -0.82 -1.70 -0.84 -4.78 0.14 1.27 -1.89 -2.38 -3.30 -4.78 -4.21 14.24 -4.07 19.27 0.84 12.08 -4.43 13.67 -4.19 15.51 �.42 15.10 -5.36 26.67 3.50 SYr lOYr 5.05 5.09 1.62 4.53 6.90 8.23 2.81 4.20 3.87 4.15 7.53 3.17 4.31 3.33 4.16 4.04 4.99 0.86 3.01 1.44 3.35 2.36 2.61 5.82 5.61 1.96 4.49 3.64 4.32 1.28 3.26 0.83 1.63 5.76 7.15 13.45 13.45 28.47 1.28 2.93 13.51 73.51 26.61 3.45 5.68 13.66 13.66 25.77 2.97 6.02 73.49 13.49 26.63 2.30 4.98 14.94 14.94 24.79 6.50 8.79 13.07 13.50 10.73 13.50 76.14 7.48 11.65 n/a 13.07 13.50 7 0. 73 13.50 16.14 7.48 11.65 n/u 25.48 26.64 ]5.05 26.61 26.14 73.01 ] 7.37 n/a 1.05 3.52 -2.62 3.66 3.06 -4.62 3.39 n/a 4.66 5.73 2.50 5.82 4.81 n/a n/a n/a 6.31 7.03 6.85 10.48 6.54 7.16 1.58 n/a n/a n/a n/a n/a �ul�l��srtQuttsullmC� Page IS Adaan�rd Im�estment Purtners - Alllu� - Gross Sizr BuckheadCuptiul Mariagemrnt - All Cap - Gross Siu� Diunrond Hill Cupitul Munagenu�nt, Inr. - Diamoml Hil! Select Equity - Gross Size HGK Asset Munugrnrent - All Ca� - Gross Si:e ICC Cupital Manugement, Inc - Multi-Cap Eq. - Gross Siie Inhepid Capitul Manugen�ent, Inc - Intrepid Multi-Cap Equity - Gross Size Ouk Ridge Inr�estments, LLC - All-Cap - Gross Size Roclarood Capitul - Strategic Equity Russel13000 Dow Jones Wilshire 5000 (Full Cap) Atlanta Capitul Munugrment Co., LLC - High Quality SmuU Gip - C;ros+ tii�r� BurkheudCr�ptial Manugement - Small Cap Vulue - Gross Si� Ceredex - Vulue Ad Sma(f Cuy Valur - Gross Size DePrince, Ruce, Zo!!o, Ini. - Small Cup Value - Gross $i7r Eagle Asx�f Management - Smu!! Cup Core - Institutiotta! - Gross Size GW Capital, Inc. - Smull Cup Value E��uity - Gross Size Inhepid Cupital Munugenrenl, Inc - Intrepid Smull Cup - Gross Si:,z Kaynr Anderwn Rudnirk Innst. - Small Cup - Gross Size Prrnu Ini�estment Manugemrnt, LLC - Pu�na Smull Cup Vulue Sen�ice - Gross Size Missoun Vulley Purhu�rs Rhumbline A�lnisers Corporation - S£+P 600 Iniiex Fund - Gross Size 5au�gruss Assrt Management, LLC - SmaU Cup Gr�nnth Equity - Gross Si x Silnant Capitnl - Small Cap Gro�vth - Grocc Si�e� Russell 2000 S&P SmallCap 600 Amenwn Realty A�fr�isors - Corr Equity Reul Estute-Sep. Actts. - Gross Si:e ASB Cupital Managemrnt, Inc. - EB Reul Estate Fund - Gross Size Intermntinentul - U$ REIF - Grass Si:e jPMorgan Asset Managen�ent - Strategic Pioperty Fund - Gross Sis� Primipal Glo6al Inrestors - Reul Estate Core Property - Gross Size Dow Jones Wilshire REIT Index NCREIF Property Index AlMnsii Glohul Adniwrs - Internutional Equity - Gross Si:�� DePnnce, Rucr, Zollo, Inc - International Equity - Gross Size HGK Assrt Munagernent - Internutionul Equity - Gross Sia� ICC Capitul Munagrment, Inc - International ADR Equity -Gross Si ,e INVESCO - Intrrnutionu! E�,uity - Gross Si:e T{�e Boston Compuny Asset Mgmt., LLC - International Core Equity Munagement Tiwrnhurg Int�estment Mgmt. - Intentahonul Equity - Gross Sixe Wenhnorth, Hauu�r and Violich - WHV Internu6onal Equity - Gross Si:x MSCI EAFE Rhumbline Lurge Cap(F1'E) Rhumbline Mid Cap(F1'E) Rhumhline Small Cap(FYE) Internationul Equity(FYE) ICC Large Groei�th(F1'E) � �hisffr .°15:d �an5ullinp � .,. .,.. ... .�..... .. ' a Decem6er 37, 2010 ALL CAP EQUITY SMALL CAP EQUI7Y REAL ESTATE (09%3Q/2070) IN7'ERNATIONAL EQUITY Qtr 1 ].37 10.02 10.42 10.33 12.66 8.5 ] 12.09 15.74 11.59 11.59 18.56 11.97 ]4.R3 7 8.50 7 R.62 9.13 18.90 17.70 16.74 14.81 17.36 16.25 16.24 9.53 -].RS 3.96 4.99 13.34 3.86 9.87 9.09 7.32 9.65 8.17 8.9] 8.75 15.64 6.61 10.73 13.50 16.14 7.48 11.65 YTD ]Yr 3Yr SYr lOYr ll.37 ]6.18 -2.22 ].3] ].78 10.02 ] 0.22 -3.02 2.41 70.42 II.53 -0.03 411 9.30 ]0.33 73.96 -3.02 3.65 ]2.66 77.47 6.75 ]0.55 8.33 8.5] 19.05 8.01 8.19 9.70 12.09 ]5.97 -].35 2.99 75.74 31.15 -0.41 4.88 718 11.59 16.93 -201 274 216 11.59 17.17 -1.92 290 251 ]8.56 22.3] 4.47 3.99 12.56 ]1.97 30.45 7.15 8.58 14.79 14.83 22.12 6.32 8.47 ]0.75 78.50 27.89 7.85 7.02 ]0.03 78.62 27.07 2.22 7.31 75.52 9.13 17.84 14.76 73.22 73.38 78.90 28.04 ]0.69 7.70 ]2.56 77.70 32.04 6.76 5.47 7.63 16.14 26.12 3.07 4.81 14.81 28.72 -7.11 -1.72 -2.72 1736 25.41 0.04 3.70 5.75 16.25 26.85 222 4.47 6.33 16.24 26.31 3.01 4.64 �.66 9.53 -].85 3.96 4.99 13.34 3.86 9.8 i 9.09 7.32 9.65 8.77 8.97 A.15 15.64 6.61 10.73 13.50 16.74 7.48 11.65 510 -7.88 2.01 6.44 -]1.77 -11.72 5.77 -8.93 1.03 6.12 5.81 -7.55 1.50 6. ] 6 30.13 -6.44 1.41 10.15 5.83 -4.62 3.67 7.25 ll.54 -].63 4.20 6.63 14.50 -0.32 6.79 7.0] ]0.35 -1.54 6.77 5.58 9.84 -2.98 4.54 3.64 20.28 2.27 74.59 9.8F -9.17 7.07 6.71 75.19 -3.48 R.12 9.49 18.58 -0.78 1.77 72.13 7.75 -7.02 246 3.50 1$.�$ -Z.F? 2.$� 1.58 26.61 3.66 5.82 n/a 26.14 3.06 4.81 n/a 13.01 -4.62 n/u n/a 17.37 3.39 n/a n/a P�ige 19 December 31, 2010 a Qtr CORE FIXED INCOME Atlanta Capital Management Co., LLC - High Quality Broad Murket - Gross Size Denner Investment Adnisors - Core Bond Go2�'t/Corp. - Gross Size -7,87 Eagle Asset Management - Cnre Fixed Institutional - Gross Size -1.60 ICC Capital Management, Inc - Core Fixed Income - Gross Size -1.91 Sawgrass Asset Management, LLC - Core Fixed Income - Gross Size -1.04 RBC Global Asset Management, Inc. - Broad Market Core - Gross Size -0.95 Barclays Aggregate Bond _1,30 Barclays Gov/Credit Bond _2,1� Barclays High Yield US Corporate Bond 3.� INTERMEDIATE FIXED INCOME Buckhead Capital Management - Intermediate Fixed - Gross Size Denz�er Investrnent Adnisors - Intermediate Fixed - Gross Size -1.15 Eagle Asset Management - Institutional Consen�ative - Gross Size -1.75 Garciu Hamilton Fs Associates - lntermediafe Fixed Income - Gross Size -0.50 Missouri Vu[ley ParMers - Intermediute Gonernment/Credit Fixed Income - Gross Size -1.47 Sazograss Asset Management, LLC - Intermediate Fixed Income - Gross Size -7.36 Sit Investment Associates, Inc. - Intermediate Govt/Corp - Gross Size 0.45 RBC Global Asset Management, Inc - Intermediate Core - Gross Size -0.92 Barclays Gov/Credit-Intermediate _1,4r} INTERNATIONAL FIXED INCOME Brand�rvine Global - International Fixed Invst. Grade - Gross Sizc -2.81 Federated Investors - Non-US Fixed Income Unhedged - Gross Size -1 J4 /P Morgan - Non-US Fixed Income - Gross Size -7.¢Z Mondrian Investment Partners - Intl. Fixed Unhedged - Gross Size P1MC0 - Non-US Fixed Unhedged - Gross Size -1.10 TCW Grnup - International Fixed Inmme - Gross Size -1.86 Wells Capital Mgmt. - Glohal Fixed Income Ex-US - Gross Size -2.16 Citigroup World Government Ex-US -1.96 ICC Fixed Income (F)'E) _1,78 InternaHonal Bonds -1.37 ���sfl��SSdamts�lfow� - - YTD lYr 3Yr 5}'r 10Yr -1.87 7.05 6.15 6.01 6.26 -1.60 6.89 6.33 6.2] 5.82 -1.97 6.47 4.97 5.12 5.25 -1.04 7.06 7.04 6.48 6.23 -0.95 7.47 5.30 5.26 5.54 -1.30 6.54 5.91 5.80 5.84 -2.17 6.59 5.60 5.56 5.83 3.22 15.12 10.38 8.92 8.89 -1.15 -7.75 -0.50 -1.47 -1.36 0.45 -0.92 -1.44 6.90 6.27 7,37 6.38 5.89 9.47 6.46 5.89 5.99 6.39 7.85 6.62 6.02 7.56 4.27 5.40 5.94 6.23 7.22 6.44 5.97 6.78 4.67 5.53 5.94 5.65 6.48 6.02 5.63 6.18 5.22 5.51 -2.81 7.04 6.67 6.88 9.38 -1.74 4.71 6.80 6.90 7.93 -1.42 7.58 7.08 7.53 7.32 -1.10 12.23 9.36 9.27 8.77 -7.86 3.31 4.71 5.29 6.74 -2. ] 6 7. 82 7.53 6.93 -1.96 3.16 5.48 7.03 7.15 -].78 6.65 5.28 5.35 5.23 -1.37 n/a n/a n/a n/a Puge 20 PALM BEACH GARDENS REVIEW OF INTERNATIONAL EQUITY F� BOND FLINDS DECEMBER 31, 2010 Palm Beach Gardens Police Review of International Equitv & Bond Funds December 31st. 2010 1. Dreyfus International Bond I(DIBRX) [0.89%] December 31, 2010 MorningStar Rating: �^� �^����� (out of 209 funds over 3-years) Comparative Index: Citi Non US & World Government Quarter Fund -1.14% Policy -1.45% Differences 0.31 % Universe n/a September 30, 2010 1 Year 3 Year 7.72% 12.19% 5.21 % 6.54% 2.51 % 5.65% 27 2 MomingStar Rating: ����:����^� (out of 185 funds over 3-years) Comparative Index: Citi Non US 8� World Government Quarter Fund 10.56% Policy 10.45% Differences 0.11 % Universe n/a 1 Year 3 Year 10.52% 13.93% 4.47% 8.44% 6.05% 5.49% 30 1 5 Year 10.77% 7.59% 3.18% 4 5 Year N/A N/A N/A Excellent rating and review from Morningstar. The fund is managed by David C. Leduc, he has been the portfolio manager since 1995. The fund seeks maximize total return through capital appreciation and income. The fund normally invests at least 80% of assets in fixed-income securities, 65% of assets in non-U.S. dollar donominated fixed-income securities of foreign governments. The fund, at times, may invest up to 25% of assets in emerging markets and up to 5% of assets in any single emerging market country. No change recommended. www.Drevfus.com 2. Oppenheimer International Bond Y(OIBYX) [0.63%] December 31. 2010 MorningStar Rating: ��'i�"i �(out of 160 funds over 5-years) Comparative Index: Citi Non US 8� World Government Fund Policy Differences Universe September 30, 2010 Quarter -1.47% -1.45% -0.02% n/a 1 Year 8.20% 5.21 % 2.99% 22 3 Year 6.97% 6.54% 0.43% 24 MorningStar Rating: ������'� (out of 153 funds over 5-years) Comparative Index: Citi Non US & World Government Quarter Fund 10.68% Policy 10.45% Differences 0.23% Universe n/a 1 Year 9.38% 4.47% 4.91 % 34 3 Year 8.79% 8.44% 0.35% 29 5 Year 8.77% 7.59% 1.18% 7 5 Year 9.06% 7.33% 1.73% 4 Excellent rating and review from Morningstar. This world-bond fund splits its portfolio into seperately managed sleeves: non-U.S. developed- and emerging markets debt. Rob Robis, who managed the developed-and emerging markets option, recently left the firm. The funds comanagers and a currency analyst has been caring for the fund until a replacement is found. But long time manager Art Steinmetz continues to oversee the portfolio. The fund's five- and 10-year record lands in its category's top decile, while volatility has been above average for the group but not excessive. No change recommended. www.oppenheimerfunds.com 3. Vanguard Global Equity (VHGEX) [0.47°/a] December 31, 2010 MorningStar Rating: ��� (out of 261 funds over 10-years) Comparative Index: World Stock ie. MSCI World Fund Policy Differences Universe September 30, 2010 MorningStar Rating Quarter 1 Year 3 Year 5 Year 8.62% 16.04% -6.29% 2.58% 8.95% 11.76% -4.85% 2.43% -0.33% 4.28% -1.44% 0.15% n/a 27 72 61 ���-� (out of 264 funds over 10-years) Comparative Index: World Stock ie. MSCI World Quarter 1 Year Fund 16.17% 10.51 % Policy 13.78% 6.76% Differences 2.39% 3.75% Universe n/a 35 3 Year -9.89% -8.29% -1.60% 76 5 Year 1.37% 1.30% 0.07% 61 Received an average rating but a very good review from Morningstar. This multimanager fund added a fourth subadvisor to its line up in April 2008, Spencer Adair. Multimanager funds can end up with unexceptional portfolios as the various subadvisors' strategies offset each other. There is long-term optimism due to good 10-year and since-inception returns. No change recommended. www.vanRuard.com 4. Vanguard International Growth Admiral Shares (VWILX) [0.35%] December 31, 2010 MorningStar Rating: ���� �(out of 694 funds over 3-years) Comparative Index: Foreign Large Blend ie. MSCI EAFE Quarter Fund 7.25% Policy 6.61 % Differences 0.64% Universe n/a September 30. 2010 1 Year 3 Year 15.81 % -3.22% 7.75% -7.02% 8.06% 3.80% 7 11 MorningStar Rating: �-���� (out of 665 funds over 3-years) Comparative Index: Foreign Large Blend ie. MSCI EAFE Quarter Fund 19.86% Policy 16.48% Differences 3.38% Universe n/a 1 Year 12.59% 3.27% 9.32% 4 3 Year -5.57% -9.51 % 3.94°/a 13 5 Year 5.86% 2.46% 3.40% 10 5 Year 5.37% 1.97% 3.40% 12 Received a good rating and review from Morningstar. Matthew Dobbs of Schroder Investment Management left this fund's team in late 2009, but his depa�ture doesn't hu�t the fund's winning combination. In his place is Simon Webber, who will continue to work with long time comanager Virginie Maisonneuve. Dobbs still remains as an advisor to the fund. The managers Vanguard has assembled here have worked well together. Over trailing periods of one year and longer, the fund is squarely top-quartile. www.vaneuard.com 5. Vanguard International Value (VTRIX) (0.45%] December 31, 2010 MorningStar Rating: ���� (out of 286 funds over 3-years) Comparative Index: Foreign Large Value ie. MSCI EAFE Value Quarter Fund 6.61 % Policy 5.30% Differences 1.31 % Universe n/a September 30, 2010 1 Year 3 Year 7.31 % -5.79% 3.25% -8.15% 4.06% 2.36% 51 24 MorningStar Rating: ��� (out of 287 funds over 3-years) Comparative Index: Foreign Large Value ie. MSCI EAFE Value Quarter 1 Year 3 Year Fund 18.00% 2.46% -8.37% Policy 16.36% -1.67% -10.72% Differences 1.64% 4.13% 2.35% Universe n/a 47 29 5 Year 3.71 % 1.37% 2.34% 21 5 Year 3.47% 1.09% 2.38% 14 Good rating but good review from Morningstar. Michael G. Fry was recently added to the group of subadvisors. Now the fund consists of four subadvisors that employ sound, value oriented styles that complement each other. This fund has beaten a healthy majority of its peers over the past three years, the past five years, and since the Hansberger team, the longest-serving of the four squads, arrived at the end of 2000. No change recommended. www.van�uard.com . . :. CAM.PL�1(i�1F -: . . � � ` :DEFE�lS1yE. . , CONSlSTE(�'C � DIVERSIFICATION :, � �:- � . „� . : ,� i`��� ?��� : �.��,+t QUANTITATIVE �Ay-'�i.'_� � �-FK;fi - � VOLATILITY " - . . . ; . .. •;- ' jDURA�ION -� .. GROVIti'H • � - ACTIVE. R.bTATKON �4���ry,. 4� ss � J4t r :. ... - - � . .. STRb7'E��f ' INNOVATION DISCIPLINE RISK CONTROL .� �.,,ti ;: � � , YIELD : .< , �.. , _ . ^� Z A " '.t'- • " �: . BENCMi1�k,R�CS _ ti P,� �'�4 . - _ _ �.,; , k y � . _ : ' 'y ' { :.�. " `� 4 ' r r `"` ¢ `' " 1 . . �'' � . �� 'h.�. . .. .. . . ' - i� •�.. ' l .C.:C -�APITAL MANAGEMENT PALM BEACH GARDENS POLICE PENSION FUND Investment Review Quarter Ending December 31, 2010 PALM BEACH GARDENS POLICE PENSION FUND Table of Contents Quarter Ending December 31, 2010 ICC Capital Mnringerrie�it, Inc. PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME Investment Review Quarter Ending December 31, 2010 ICC Cnpitnl Mattngemeut, Inc. PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME Investment Performance Report Quarter Ending December 31, 2010 Total Return Summary Portfolio Allocation Investment Performance by Asset Category Fixed-Income Analysis Purchases & Sales Realized Gains/ Losses Portfolio Summary Portfolio Appraisal ICC Cnpitnl Mnring�:nient, Inc. Page...... 1 Page...... 2 Page...... 3 Page...... 4 Page...... 8 Page...... 13 Page...... 16 Pa�e...... 17 PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME Starting Value Ending Value Difference Total Return Summary Quarter Ending December 31, 2010 $17,047,951 $15,265,822 ($1,782,129) Net Contributions/ (Withdrawals) � ($1,512,539) Gain/(Loss) from Investments $13,085,187 $15,265,822 $2,180,635 $1,291,344 $889,291 $1,625,387 $15,265,822 $13,640,435 $7,709,688 $5,930,747 TOTAL RETURN -1.74% 5.99% 177.40% ANNUALIZED TOTAL RETI,IRN 7.59% ICC Cnpital Manngement, Inc. 1 PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME Portfolio Allocation at Market Quarter Ending December 31, 2010 Asset Allocation: 0%100 (Mk t) Market Value CASH/EQUIVS as of 09/30/10 �.6°�0 FIXED INCOME 92.4 % Market Value CASx�EQutvs 3.1 /o as of 12,/31/10 FIXED INCOME 96.9% Mkt Value Mkt Value % Mkt Value Mkt Value % as of 09/30/10 as of 09/30/10 as of 12f31/10 as of 12,/31/10 Cash/E uivs $1,297,409 7.6% $472,849 3.1 % Fixed $15,750,542 92.4 % $14,792,973 96.9 % Total $17,047,951 100.0% $15,265,822 100.0% ICC Cnpital Mariagement, Inc. 2 PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME Investment Performance by Asset Category Quarter Ending December 31, 2010 uarter ■ ACCOUNT ■ BCAG� 0.00 - -2.00 � -1.30 -1.30 -1.30 -1.79 -1.74 -1.87 -4.00 - -6.00 - -8.00 - -10.00 ' ----- - - � BONDS TOTAL GROSS OF FEES TOTAL NET OF FEES One Year ■ ACCOUNT ■ BCAG 15.00 10.00 - 6.61 6.54 6.54 6.54 5.99 5.49 5.00 � 0.00 � _-- - _ - - -� BONDS TOTAL GROSS OF FEES TOTAL NET OF FEES Since Inception (04/30/94 -1?�/31f10) ■ AccoutvT ■ Bc,a� 15.00 , I 10.00 � 7.59 7.09 6.30 6.50 6.50 6.50 5.00 - 0.00 - - _ _ � BONDS TOTAL GROSS OF FEES TOTAL NET OF FEES 1 he red total bar represents the liarclays Capital Aggregate Index. ICC Gzpital I��Tnn�zge�ncitt, Inc. PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME Fixed Income Analysis (Page 1 of 4) Quarter Ending December 31, 2010 Average Quality � A.A- Average Duration � 4.31 Current Yield � 4.20 ICC Core Fixed Income Por, olio Mort�age Pools Municipal Bonds 185°i, 3.0% Government Sponsored 10.9% US Treasuries 107% Corporate Bonds 56.9 % Average Quality � AA Average Duration � 5.45 Current Yield � 3.63 Barcla�i�s Capital Government/Credit Index Corporate Bonds Government Sponsored 29.1 % 18.6% US Trcasuries �2.3 °io Average Quality � A.A Average Duration � 4.98 Current Yield � 4.02 Barclays Capital AggreQate Index US Treasuries �3.8% US MBS 326 "4, G<�vernment Sponsored '=-;a 12.0% ABS 0.3% CMBS Corporatc Bonds 2.5% 18.8% ICC Cnpitnl Mniiagement, Inc. 4 PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME Fixed Income Analysis (Page 2 of 4) Quarter Ending December 31, 2010 Sectors and Market Indices Performance VS. Core Fixed Income Portfolio 4Q10 6.00 4.001 2.00 - 0.24 0.91 0.00 - �� -2.00 I -1.72 -1.61 -1.48 -1.30 -1.74 -4.00 -2.64 -2.17 -6.00 ' � � �S, Co C�o GS C` y� P Lf A�r �� ��s S d`�,�/ , �l��o dfP S' flPS ��S '�o �so rPq Munici al Bonds Universi Va Univ Revs Commonwealth Fin Auth Pa Rev Utah St Mort a e Backed Securities Gnsf 5.5% Pool #714005 F lmc # 02268 Fncl # 256394 G2 Pool # 4447 Gn Pool # 782119 G2 Pool # 4194 G2 Pool # 4195 Gnsf M #552509 F ci # 12205 Fnci N #725445 Fnci M #254371 Fnci N #255888 Fnci N #825335 Gn'o M #781313 Fnci N #829053 Gnsf M #582153 F ci N #b13455 FQCi N #�12323 Government/A encl Bonds Fannie Mae Fannie Mae Coupo; 5.000 % 5.653 % 4.554% 5.500 % 6.500 % 6.500 % 5.000 % 6.000 % 5.500 % 6.000 % 6.000 % 4.500 % 4.500 % 5.500 % 4.000 % 4.000 % 6.000 % 4.000 % 6.000 % 4.500 % 4.500 % :oupon 2.000 % 1.750% Maturifiti 9 1 2040 6 1 2024 7/1/2024 Maturity 10 15 2039 8 1 2036 9 1 2036 5 20 2039 8 15 2036 7 20 2038 7 20 2038 4 15 2032 6 1 2021 5 1 2019 7 1 2017 8 1 2020 5 1 2020 7 15 2016 8 1 2020 6 15 2032 4 1 2019 8/1/2021 Maturity 10 25 2016 10/21/2015 ICC Capital Managernent, I��c. 5 �� ��' J�� 9C o�dl �,� o�d, S£�P Ra� AAA AA- AAA S£�P Rati AAA AAA AAA AAA AAA AAA AAA AAA AAA AAA AAA AAA AAA AAA AAA AAA AAA AAA S£�P Rati AAA AAA fi�1 Mo Mo �ysRa AAA AA3 AAA ,ysRa Aaa Aaa Aaa Aaa Aaa Aaa Aaa Aaa Aaa Aaa Aaa Aaa Aaa Aaa Aaa Aaa Aaa Aaa ,ysRa AAA AAA PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME Fixed Income Analysis (Page 3 of 4) Quarter Ending December 31, 2010 Governmen Freddie Mac Fannie Mae Fannie Mae Us Treasu Us Treasu Us Treasur Us Treasur Us Treasurv Bonds Coupon 5.900 % 5.625 % 6.000 % 1.875% 3.375 % 1.875 % 1.250% 1.250% Co orate Bonds Bank Of Ney York Mellon San Die o Gas & Electric Goldman Sachs Grou Inc Coca-Cola Co McDonald's Cor At&T Inc Merck & Co Inc Universi Of Chica o Ei Du Pont De Nemour & Co Hewlett-Packard Co Franklin Resources Inc At&T Inc Wal-Mart Stores Inc Golden West Finl Procter & Gamble Co the General Elec Ca Cor BlackrockInc Citi rou Inc Citi rou Inc Microsoft Cor Geor e Washin ton Univers Novant Health Inc McDonald's Cor Baxter International Inc General Electric Ca Cor Goldman Sachs Grou Inc National Rural Util Coo IBM Cor Pe sico Inc Baker Hu hes Inc Hone wellInternational General D namics Cor ohns Ho kins Universi Cisco Svstems Inc Inc 2.950 % 5.700 % 5.300 % 5.375 % 3.625 % 5.800 % 5.625 % 6.000 % 5.420 % 1.950 % 2.125 % 2.000 % 4.950 % 1.500 % 4.750 % 1.800 % 3.500 % 5.000 % 6.010% 5.300 % 1.625 % 4.896 % 5.850% 4.000 % 5.300 % 4.250 % 1.875 % 6.000 % 5.500 % 6.500 % 3.100 % 6.500 % 3.875 % 5.250 % 5.250 % 4.950 % 6.000 % 5.700 % 6.000 % Maturi 6 15 2022 11 15 2021 4 28 2021 8/31/2017 11 15 2019 10 31 2017 10 31 2015 9/30/2015 Maturi 6/18/2015 11/15/2014 11/15/2015 3/15/2020 3/15/2014 10/15/2017 6/15/2016 9/15/2017 10/1/2030 1/15/2016 9/13/2015 5/ 20/ 2013 1/15/2013 10/25/2015 10/1/2012 11/15/2015 6/29/2015 12/10/2019 1/15/2015 10/17/2012 9/ 25/ 2015 9/15/2020 11/1/2019 7/24/2015 3/15/2017 3/15/2020 9/16/2013 5/1/2014 7/1/2013 10/15/2013 1/15/2015 11/15/2013 2/15/2014 2/1/2014 7/ 1 / 2019 2/15/2019 1/15/2020 2/1/2019 5/13/2014 ICC Cnpital Mnnagement, Inc. 6 S£�P Rat AAA AAA AAA AAA AAA AAA AAA AAA ���'i AA- A+ A+ A A+ A A- AA AA A A AA- A- AA AA- AA- AA+ A+ A A AAA A+ A+ A A A+ AA+ A A+ A+ A- A A A AA A+ A A+ A M M ,�IZ AAA AAA AAA AAA AAA AAA AAA AAA ��sRa AA2 AA3 Aa3 A1 AA3 A2 A2 Aa3 AA1 A2 A2 A1 A2 AA2 A1 AA3 AA2 A1 A3 A3 AAA A1 A1 A2 A2 A3 Aa2 A1 A1 AA3 AA3 A2 A2 A2 AA2 A1 A1 A3 A2 PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME Fixed Income Analysis (Page 4 of 4) Quarter Ending December 31, 2010 Portfolio Duration vs. Index Duration (Ratio) 1.8% 1.4% � NEUTRAL 1.0% 0.6 % 0.2% DEFENSIVE � INDEX f ACCT AGGRESSIVE 12/31/2008 3/31/2009 6/30/2009 9/30/2009 12/31/2009 3/31/2010 6/30/2010 9/30/2010 12/31/2010 ICC Cnpitnl Managemertt, liic. 7 � ICC Capital Management PURCHASE AND SALE PALM BEACH GARDENS POLICE PENSION FUND FIXED Il�'COME From 09-30-10 To 12-31-10 Trade Settle Unit Date Date Quantity Security Price Amount PURCHtiSES 11-08-10 11-L-10 09-30-10 10-21-10 10-19-10 10-25-10 11-17-10 ll-22-10 11-08-10 11-12-10 10-19-10 10-22-10 11-16-10 11-19-10 09-30-10 10-04-10 10-05-10 10-07-10 10-1�-10 10-19-10 11-03-10 11-OS-10 11-09-10 11-12-10 11-23-10 11-26-10 10-26-10 10-29-10 SALES 10-0�-10 10-08-10 10-12-10 10-15-10 10-26-10 10-26-10 11-16-10 11-17-10 10-22-10 10-22-10 13�,000.000 COCA-COLA CO �.625% Due 0�-15-14 400,000.000 FANNIE NIAE 1.750% Due 10-21-15 425,000.000 FAN�IIE MAE 2.000% Due 10-25-16 200,000.000 FRANKLIN RESOURCES INC 2.000% Due OS-20-13 li5,000.000 GENERAL ELECTRIC CAP CORP 1.875 % Due 09-16-1 � 20�,000.000 HEWLETT-PACKARD CO 2.125 % Due 09-1 �-15 190,000.000 PROCTER & GAMBLE CO/THE 1.800% Due 11-15-15 200,000.000 US TREASURY NB 3.500% Due 05-15-20 160,000.000 US TREASURY NB 1.250%Due 09-.i0-1� 350,000.000 US TREASURY NB 3.875% Due 08-15-40 17�,000.000 US TREASURY NB 1.250% Due 10-� 1-15 250,000.000 US TREASURY NB .i.875% Due 08-15-40 315,000.000 US TREASURY NB 1.875% Due 10-.i 1-17 200,000.000 WAL-MART STORES INC 1.500% Due 10-25-15 160,000.000 B�Lk OF �1VLERICA CORP 5.6�0% Due 05-01-18 125,000 CHICAGO ILL BRD ED 6.138% Due 12-01-.i9 320,000.000 FA��INIE MAE 1.000% Due 10-18-13 300,000.000 F�NNIE MAE 2.000% Due O1-1�-17 275,000.000 FEDERAL FARNI CREDIT BANK 1.� �0°'o Due 0?-?2-Li s 103.�2 100.00 100.00 101.56 101.22 101.�4 99?0 108.20 100.20 98.98 100.53 93.91 98.97 99.09 107.13 98.62 100.1 1 101.�1 100.00 146,36�.6� 400,000.00 42�,000.�0 203,128.00 136,6�2.40 207,738.80 188,480.00 216,406? � 160,32�.00 346,445.32 17�,929.69 234,76�.6? 311,751.�6 198,190.00 3,3�1,178.29 171,-104.30 123,281.2� 3''0,3 �2.00 30�4,�30.00 27�,000.00 ICC Capital Management PURCHASE AND SALE PALM BEACH GARDENS POLICE PENSION FUND FIXED I_YCONIE From 09-30-10 To 12-31-10 Trade Settle Date Date 10-19-10 10-22 -10 10-07-10 10-12-10 11-03-10 11-0�-10 11-03-10 11-OS-10 11-04-10 11-08-10 11-09-10 11-12-10 11-09-10 11-12-10 11-09-10 11-12-10 11-23-10 ll-24-10 11-23-10 11-24-10 Quantity Security 120,000.000 HEWLETT-PACKARD CO 4.250% Due 02-24-12 275,000.000 US TREASURY NB 1.�75%Due 0�-15-1� 90,000.000 US TREASURY NB 4.625% Due 02-15-40 200,000.000 US TREASURY NB 4.625% Due 02-15-40 190,000.000 US TREASURY NB �.875% Due 08-1�-40 35,000.000 US TREASURY N/B 3.500% Due OS-15-20 160,000.000 US TREASURY NB .i.�00%Due OS-15-20 200,000.000 US TREASURY NB �.500% Due OS-1 �-20 250,000.000 US TREASURY NB �.875% Due 08-15-40 160,000.000 US TREASURY NB .i.875% Due 08-1�-40 PRINCIPAL PAYDOWNS 10-01-10 10-1�-10 3,57�.200 FGCI #G12205 4.500% Due 06-01-21 11-01-10 11-15-10 2,908.150 FGCI #G12205 4.500% Due 06-01-21 12-01-10 12-15-10 3,560.230 FGCI #G1220� 4. � 00% Due 06-01-21 10-01-10 10-15-10 194.600 FGCI N#B13455 4.500% Due 04-01-19 11-01-10 11-15-10 68.160 FGCI N#B1345� 4.500°/a Due 04-01-19 12-01-10 12-15-10 144.590 FGCI N#Bli4�5 4.500% Due 04-01-19 10-01-10 10-15-10 248.1�0 FGCI N#G12323 4.500% Due 08-01-21 11-0�-10 11-15-10 146.390 FGCI N#G1232� 4.500% Due 08-01-21 12-01-10 12-15-10 166.030 FGCI N#G12323 4.500% Due 08-01-21 10-01-10 10-15-10 2,763.690 FGLMC #G02268 6.500% Due 08-01-36 9 Unit Price Amount 104.72 102.25 113.16 113.16 97.50 107.73 107.73 107.73 95.22 95 .22 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 125;661.60 281,187.50 101, 840.62 226,312.50 185,2�0.00 37,707.03 172,375.00 215,468.7� 238,046.88 152,350.00 2,930,767.93 3,575.20 2,908.15 3,560.23 194.60 68.16 144.59 248.15 146.39 166.03 2,763.69 ICC Capital Management PURCHASE AND SALE PALM BEACH GARDENS POLICE PENSIDN FL'ND FIXED I_NCO�IE From 09-30-10 To 12-31-10 Trade Settle Date Date 10-01-10 10-1 �-10 11-01-10 11-1�-10 11-01-10 11-15-10 12-01-10 12-15-10 12-01-10 12-15-10 10-01-10 10-15-10 11-01-10 11-1�-10 12-01-10 12-1�-10 10-01-10 10-1�-10 11-01-10 11-15-10 12-01-10 12-1�-10 10-01-10 10-1�-10 10-01-10 10-15-10 11-01-10 11-15-10 11-01-10 11-15-10 12-01-10 12-15-10 12-01-10 12-15-10 10-01-10 10-1�-10 11-01-10 11-15-10 12-01-10 12-1�-10 10-01-10 10-15-10 11-01-10 11-15-10 Quantity Security 9,430.630 FGLMC #G02268 6.500% Due 08-01-.i6 2,386.420 FGLMC #G02268 6.�00% Due 08-01-�6 8,143230 FGLMC #G02268 6.500% Due 08-01-.i6 2,340.776 FGLMC #G02268 6.500% Due 08-01-�6 7,987.454 FGLMC #G02268 6.500% Due 08-01-�6 1,121.640 FNCI M #254371 5.500% Due 07-01-17 1,401.290 FNCI M #254371 5.500% Due 07-01-17 1,529.480 FNCI M #254371 5.500% Due 07-01-17 3,370.430 FNCI N �#255888 4.000% Due 08-01-20 1,062.190 FNCI N #25�888 4.000% Due 08-01-20 266.480 FNCI N #255888 4.000% Due 08-01-20 52.748 FNCI N #72544� 4.500% Due 0�-01-19 1,699?82 FNCI N #725445 4.500% Due OS-01-19 56.082 FNCI N #725445 4.�00% Due 0�-01-19 1,806.688 FNCI N #725445 4.500% Due 0�-01-19 5�.094 FNCI N #725445 4.500% Due OS-01-19 1,774.846 FNCI N #72544� 4.500% Due 05-01-19 3�9.170 FNCI N #825�35 4.000% Due 05-01-20 3�8200 FNCI N #825335 4.000% Due 0�-01-20 5,961.030 FNCI N i#825335 4.000% Due 0�-01-20 1,407.470 FNCI N #8290�3 4.000% Due 08-01-20 2,0859�0 FNCI N #829053 4.000% Due 08-01-20 10 Unit Price Amount 100.00 9,430.6� 100.00 2,386.42 100.00 8,143.23 100.00 2,340.78 100.00 7,987.4� 100.00 1,121.64 100.00 1,401.29 100.00 1,529.48 100.00 3,370.43 100.00 1,062.19 100.00 266.48 100.00 100.00 100.00 100.00 99.99 100.00 100.00 100.00 100.00 100.00 100.00 52.7� 1,699.28 56.08 1,806.69 55.09 1,774.85 359.17 358.20 5,961.03 1,407.47 2,085.95 ICC Capital Management PURCHASE AND SALE PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME From 09-30-10 To 12-31-10 Trade Settle Date Date 12-01-10 12-1�-10 10-01-10 10-15-10 11-01-10 11-15-10 12-01-10 12-15-10 10-01-10 10-01-10 11-01-10 11-01-10 12-01-10 12-01-10 10-01-10 10-20-10 11-01-10 11-20-10 12-01-10 12-20-10 10-01-10 10-20-10 11-01-10 11-20-10 12-01-10 12-20-10 10-1�-10 10-29-10 I1-15-10 11-29-10 12-15-10 12-29-10 10-01-10 10-14-10 11-01-10 11-14-10 12-01-10 12-14-10 10-01-10 10-15-10 11-01-10 11-1�-10 12-01-10 12-15-10 Quantity Security 1,44�.050 FNCI N #829053 4.000% Due 08-01-20 8,368.220 FNCL # 256394 6.500% Due 09-01-.i6 8,428.350 FNCL # 256394 6.500% Due 09-01-�6 7,883.010 F�tCL tt 256394 6.500% Due 09-01-�6 9,293.820 G2 POOL # 4194 5.500% Due 07-20-�8 8,32=3.300 G2 POOL # 4194 5.500% Due 07-20-�8 10,2��.160 G2 POOL # 4194 �.500% Due 07-20-�8 3,463.880 G2 POOL # 4195 6.000% Due 07-20-38 2,871.040 G2 POOL # 4195 6.000% Due 07-20-�8 3,618.610 G2 POOL # 4195 6.000% Due 07-20-38 8,843:370 G2 POOL # 4447 5.000% Due 0�-20-�9 9,234.710 G2 POOL # 4447. 5.000% Due OS-20-39 8,1 �6.710 G2 POOL # 4447 5.000% Due OS-20-.i9 9,072.600 GN POOL # 782119 6.000% Due 08-15-�6 7,078.510 GN POOL # 782119 6.000% Due 08-15-.i6 5,442.540 GN POOL # 782119 - 6.000% Due 08-1�-36 526.440 GNJO M #78li 13 6.000% Due 07-1 �-16 492.300 GNJO M #7813li 6.000% Due 07-15-16 426.450 GNJO M #78li li 6.000% Due 07-1 �-16 32,406.020 GNSF 5.5% POOL #714005 5.�00%Due 10-1�-�9 46,�98.470 GNSF �.�°/a POOL #714005 5.500% Due 10-15-�9 .i9,58�.�90 GNSF 5.5% POOL #71400� 5.500% Due 10-15-.i9 m Unit Price Amount 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 1,445.0� 8,36822 8,428.35 7,883.01 9,293.82 8,324.30 10,255.16 3,463.88 2,871.04 3,618.61 8,843.37 9,234.71 8,156.71 9,072.60 7,078.51 5,442.54 526.44 49230 426.45 32,406.02 46,598.47 39,58�39 ICC Capital Management PURCHASE AND SALE PALM BEACH GA_RDENS POLICE PENSION FU_ND FIXED I!VCOI�IE From 09-30-10 To 12-31-10 Trade Settle Date Date Quantity Security 10-01-10 10-15-10 305.980 GNSF M#552509 6.000% Due 04-15-�2 11-01-10 11-1�-10 25�.640 GNSF M#5�2�09 6.000% Due 04-15-.i2 12-01-10 12-15-10 268.080 GNSF M�552509 6.000% Due 04-1�-�2 10-01-10 10-15-10 5�4.100 GNSF M#5821�3 6.000% Due 06-1�-32 11-01-10 11-15-10 1,�40.690 GNSF M#5821�3 6.000°,/o Due 06-15-�2 12-01-10 12-15-10 1,332.700 GNSF M#5821�3 6.000% Due 06-15-3? 12 Unit Price 100.00 100.00 100.00 100.00 100.00 100.00 Amount 305.98 255.64 268.08 5�4.10 1,540.69 1,332.70 � 04.503 91 ICC Capital Management REALIZED GAINS AND LOSSES PALM BEACH GARDENS POLICE PENSIOIV FUND FIXED I_NCOME From 09-30-10 Through 12-31-10 Opeu Close Date Date Quantity Security I?-15-06 10-01-10 2,763.690 FGLMC #G02268 6.�00%Due 08-01-36 O1-OS-07 10-01-10 9,430.630 FGLMC #G02268 6.500%Due 08-01-�6 02-21-07 10-01-10 3,�75200 FGCI #G1220� 4.�00% Due 06-01-21 08-24-06 10-01-10 248.1�0 FGCI N#G12323 4.�00%Due 08-01-21 09-08-04 10-01-10 194.600 FGCI N dB1345� 4.500%Due 04-01-19 0�-23-02 10-01-10 1,121.640 FNCI M#254371 5.500°/a Due 07-01-17 09-08-OS 10-01-10 3,370.430 FNCINi�255888 4.000% Due 08-01-20 01-03-07 10-01-10 8,368Z20 FNCL # 256394 6.�00% Due 09-01-36 09-IS-04 10-01-10 52.748 FNCI N#725445 4.500% Due OS-O 1-19 Oi-29-07 10-01-10 1,699.282 FNCIN#725445 4.�00% Due 0�-01-19 09-08-OS 10-01-10 3�9.170 FNCI N#325335 4.000% Due OS-Ol-20 08-23-OS 10-01-10 1,407.470 FNCI N#829053 4.000%Due 08-01-20 06-13-02 10-01-10 5�4.100 GNSF M#5821�3 6.000% Due 06-15-32 03-10-10 10-01-10 8,843.370 G2 POOL # 4447 5.000% Due OS-20-39 12-18-09 10-01-10 9,293.820 G2 POOL # 4194 5.�00°/a Due 07-20-38 07-22-08 10-01-10 3,463.880 G2 POOL � 4195 6.000°/a Due 07-20-38 04-15-02 10-01-10 305.980 GNSF M�552509 6.000°/a Due 04-15-32 07-02-02 10-01-10 �26.440 GNJO M #781313 6.000°/a Due 07-15-16 12-03-09 10-01-10 32,406.020 GNSF 5.�% POOL #714005 �.�00%Due 10-15-39 08-10-10 10-OS-10 160,000.000 BAI�IK OF A�'�IERICA CORP 5.6�0%Due 05-01-18 03-24-10 10-07-10 275,000.000 US TREASURY NB 1.375%Due 03-1�-13 09-10-09 10-12-10 125,000 CHIC.4G0 II.L BRD ED 6.138°/a Due 12-01-39 02-22-10 10-15-10 9,072.600 GN POOL # 782119 6.000% Due 08-15-36 02-23-09 10-19-10 120,000.000 HEWLETT-PACK.ARD CO 4.250% Due 02-24-12 07-1�-10 10-22-10 27�,000.000 FEDERAL F.4RM CREDIT BAlVK 1.350°/a Due 07-22-13 09-27-l0 10-26-10 320,000.000 FANNIE MAE 1.000% Due 10-18-13 12-15-06 I 1-01-10 2,386.420 FGLMC #G02268 6.500°/a Due 08-01-36 13 Cost Basis 2,821.13 9,626.61 3,449.� 1 237.91 194.03 1,116.73 3,279.85 8,�35.59 52.79 1,630.78 34952 1,36�25 5�3.15 9,268.96 9,863.07 3,460.09 302.20 542.89 34,401.02 167,809.60 272,808.60 125,000.00 9,714.77 119,94720 275,000.00 320,000.00 2,436.02 Proceeds 2,763.69 9,430.63 3,575.20 248.1� 194.60 1,121.64 3,370.43 8,368.22 52.75 1,699.28 359.17 1,407.47 5�4.10 8,84337 9,293.82 3,463.88 305.98 526.44 32,406.02 171,404.80 zsi,is�.so 123,28125 9,072.60 125,661.60 275,000.00 320,352.00 2,386.42 Gain Or Loss Short Term Loog Term -�7 -1-4 -1959� 125.69 102d 0.�% a.9 i 90.53 -167.37 -O.Od 68.: 0 9.6� q� �� 0.9� 1325.59 -569.25 3J9 �.�s -16.4� -1,995.00 3,595.20 8,378.90 -1,718.75 -642.17 5,714.40 0.00 3�2.00 -49.60 ICC Capital Management REALIZED GAINS AND LOSSES PALM BEACH GARDENS POLICE PENSION FU1VD FIXED INCOME From 09-30-10 Through 12-31-10 Open Close Date Date Quantity Security 01-08-07 11-01-10 8,143.230 FGLMC #G02268 6.500% Due 08-01-36 02-21-07 11-01-10 2,908.150 FGCI #G12205 4.� 00% Due 06-01-21 08-24-06 11-01-10 146.390 FGCI N#G12323 4.�00% Due 08-01-21 09-08-04 11-01-10 68.160 FGCIN�B13455 4.� 00% Due 04-01-19 05-23-02 11-01-10 1,401.290 FNCI M#254371 5.�00% Due 07-01-17 09-08-OS 11-01-10 1,062.190 FNCI N#255888 4.000% Due OS-01-20 O1-OS-07 11-01-10 8,428.350 FNCL # 256394 6.�00% Due 09-01-36 09-1�-04 11-01-10 �6.082 FNCIN#725445 4. � 00% Due OS-O 1-19 01-29-07 11-01-10 1,306.688 FNCI N#725445 4.500% Due OS-01-19 09-08-OS 11-01-10 358200 FNCIN#825335 4.000% Due OS-01-20 08-23-OS I1-01-10 2,085.950 FNC1N#829053 4.000% Due 08-01-20 06-13-02 I1-01-10 1,540.690 GNSF M#582153 6.000% Due 06-1�-32 03-10-10 11-01-10 9,234.710 G2 POOL # 4447 5.000% Due OS-20-39 12-18-09 1 I-01-10 8,324.300 G2 POOL # 4194 5.500% Due 07-20-38 07-22-08 11-01-10 2,871.040 G2 POOL # 4195 6.000°/a Due 07-20-38 04-15-02 11-01-10 255.640 GNSF M#5�2509 6.000% Due 04-1 �-32 07-02-02 11-01-10 492.300 GNJO M N781313 6.000% Due 07-1 �-16 12-03-09 11-01-10 46,�98.470 GNSF 5.�%POOL #714005 5.500%Due 10-1�-39 04-28-10 I 1-03-10 90,000.000 US TREASLRY NB 4.625%Due 02-15-40 07-08-10 11-03-10 200,000.000 US TREASURY NB 4.625%Due 02-15-40 10-1�-10 I1-04-10 190,000.000 US TREASLRY N/B 3.875% Due 08-1 �-40 07-14-10 I1-09-10 35,000.000 US i'REASURY NB 3.500% Due OS-1�-20 08-13-10 11-09-10 160,000.000 US TREASURY NB .i.�00% Due OS-1 �-20 09-30-10 11-09-10 200,000.000 US TREASURY NB 3.�00% Due 0�-1�-20 02-22-10 11-1�-10 7,078.�10 GNPOOL#782119 6.000% Due 08- I �-�6 Oi-08-10 11-16-10 300,000.000 FANNIE MAE 2.000% Due 0 I -13-17 11-09-10 I1-23-10 250,000.000 US TREASiJRY NB 3.87�% Due 08-15-40 14 Cost Basis 8,312.46 2,305.91 140.35 67.96 1,395.16 1,033.64 8,596.92 �6.12 1,733.86 348.�7 2,023.37 1,538.04 9,679.13 8,834.16 2,867.90 252.48 507.68 49,467.19 90,0�6.2� 221,093.75 133,07032 36,339.84 171,350.00 216,406.25 7,579.�4 299,250.00 23�4,76�.62 Proceeds 8,143.23 2,908.1 � 146.39 68.16 1,401.29 1,062.19 8,428.35 56.08 1,806.69 358.20 2,085.95 1,540.69 9,234.71 8,32430 2,871.04 255.64 492.30 46,598.47 101,840.62 226,312.50 135,2�0.00 37,707.03 172,375.00 215,468J5 7,078.� 1 304,530.00 238,046.88 Gain Or Loss S6ort Term Long Tefm -169.23 102.24 6.oa 0.20 6.13 28.�5 -168.57 -0.04 72.83 9.63 62.58 2.65 �44.42 -�09.86 -2,868.72 11,784.37 5,213J5 -2,820.32 1,367.19 1,025.00 -937.50 -501.03 5,280.00 3,281.26 3.14 3.16 -1�.38 ICC Capital Management REALIZED GAINS AND LOSSES PALM BEACH GARDENS POLICE PENSION FUND FI<�ED I_VCO�YIE From 09-30-10 Through 12-31-10 Open Close Date Date Quantity Security 10-15-10 11-23-10 I60,000.000 US TREASURY NB 3.875% Due 08-1�-40 12-15-06 12-01-10 2,340.776 FGLMC #G02268 6.�00% Due 08-01-36 01-08-07 12-01-10 7,987.454 FGLMC #G02268 6.�00°/a Due 08-01-36 02-21-07 12-01-10 3,�60.230 FGCI #G12205 4.500°/a Due 06-01-21 08-24-06 12-01-10 166.030 FGCI N#G12323 4.500%Due 08-01-21 09-08-04 12-01-10 144.�90 FGCIN#B1345� 4.540%Due 04-01-19 05-23-02 12-01-10 1,�29.480 FNCI M#254371 5.�00% Due 07-01-17 09-08-0� 12-01-10 266.430 FNCIN#25�888 4.000% Due 08-01-20 01-08-07 12-01-10 7,383.010 FNCL # 256394 6.�00% Due 09-01-36 09-15-04 12-01-10 5�.094 F�1CI N#725445 4.�00%Due OS-01-19 01-29-07 12-01-10 1,774.846 FNCI N#725445 4.500% Due OS-O 1-19 09-08-0� 12-01-10 5,961.030 FNCIN#825335 4.000% Due OS-01-20 08-23-OS 12-01-10 1,445.050 FNCI N�829053 4.000°/a Due 08-01-20 06-13-02 12-01-10 1,332.700 GNSF M#5821�3 6.000%Due 06-15-32 03-10-10 12-01-10 8,156.710 G2 POOL # 4447 5.000% Due OS-20-39 12-13-09 12-01-10 10,255.160 G2 POOL # 4194 5.500% Due 07-20-38 07-22-08 12-01-10 3,618.610 G2 POOL # 4195 6.000% Due 07-20-38 04-1�-02 12-01-10 268.080 GNSF M#5�2�09 6.000% Due 04-1 �-32 07-02-02 L-01-10 426.450 GNJO M#781313 6.000%Due 07-15-16 12-03-09 12-01-10 39,585.390 GNSF 5.5°/a POOL #714005 5.500%Due 10-1�-39 02-22-10 12-IS-10 5,442.��10 GN POOL # 782119 6.000%Due 08-15-36 C ost Basis 158,375.00 2,389.42 8,153.45 3,435.07 159.18 14416 1,�22.79 259.32 8,040.67 ».14 1,703.30 �,300.83 1,401.70 1,330.41 8,549.25 10,883.29 3,614.65 264.77 439.78 42,022.37 5,827.77 Proceeds 152,350.00 2,340.78 7,987.45 3,560.23 166.03 1 �44.59 1,529.48 266.48 7,883.01 55.09 1,774.85 5,961.03 1,445.05 1,332.70 8,156.71 10,255.16 3,618.61 268.08 426.45 39,585.39 5,4�42.54 Gain Or Loss Short Term Long Term -6,025.00 -39254 -628.13 -2,436.98 -385.23 -t3.54 166.00 125.16 6.85 O.�t3 6.59 7.16 1�i.5o -0.05 71.� � 160?0 43.3� 2.29 3.96 3.31 -13.33 TOTAL GAINS 40,232.67 6,803.39 TOTAL LOSSES -21,�81.72 -2,944.53 3,212,712.04 3,235,271.84 18,700.94 3,858.86 TOT.4L REALIZED GAIN/LOSS 22,�59.80 1� ICC Capital Management PORTFOLIO SLT�vIl�1ARY PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOIYIE December 31, 201 D Pct. Cur. Est.Annual Security Type Total Cost Market Value Assets Yield Income Cash & Equivalents CASH AivD 472,8489� 472,848.95 3.1 0.1 576.88 EQUIVALENTS 472,848.95 472,848.95 3.1 0.1 576.88 Fixed Income CORPORATE BONDS MUNICIPAL BONDS GO VERNNfENT BONDS MORTGAGE POOLS GO VERNMENT SPONSORED BOND Accrued Interest TOTAL PORTFOLIO 7,982,528.40 8,354,778.35 54.7 4.3 427,496.00 429,245.60 2.8 5.0 1,599,53�94 1,576,055.66 103 2.2 2,�78,�06.94 2,718,182.88 17.8 5.2 1,582,482.00 1,59�,434.15 10.5 3.8 119,276.� 1 0.8 14,170,�4928 14,792,972.96 96.9 4.2 14,643,398.23 15,265,821.91 100.0 4.1 16 356,031.30 21,606.70 3�,162.50 142,674.19 60,106.25 615,580.94 616,157.82 ICC Capital Management PORTFOLIO APPRAISAL PALM BEACH GARDENS POLICE PENSION FUND FIXED INCO�YIE December 31, 2010 Unit Total Y[arket Pct. Cnr. Quantity Security Cost Cost Price Value Assets Yield CASH AIYD EQUIVALE�ITS CASH & CASH EQUNALENTS 472,848.95 472,848.95 3.1 0.1 472,848.95 472,848.95 3.1 0.1 CORPOR�TE BONDS 200,000.000 GOLDEN WEST FINL 97.82 195,640.00 105.80 211,605.40 1.4 4.5 4.750% Due 10-01-12 16�,000.000 CTTIGROUP INC 104.77 172,875.45 105.90 174,741J6 1.1 5.0 5.300%Due 10-17-12 200,000.000 AT&T INC 10030 200,�92.00 107.19 214,374.20 1.4 4.6 4.950% Due 01-1�-1.i 200,000.000 FRP.NICI.IN 101.�6 203,128.00 10135 202,698.60 1.3 2.0 RESOURCES INC 2.000°/a Due OS-20-13 13�,000.000 N.�.TIONAL RURAL 99.84 134,789.40 109.49 147,81.i.39 1.0 5.0 UTIL COOP 5.500°/a Due 07-01-13 135,000.000 GEi�lERAL ELECTRIC 101.22 136,6�2.40 100.05 135,072.22 0.9 1.9 CAP CORP 1.875% Due 09-16-13 85,000.000 GOLDMA��1 SACHS 98.44 83,674.00 108.22 91,988.53 0.6 4.9 5250%Due 10-I�-13 . 135,000.000 IBM CORP 99.24 133,971.30 113.97 153,856.93 lA �.7 6.500%Due 10-1�-13 125,000.000 BAKER HiJGHES INC 99.76 124,702.50 113.81 142,260.12 0.9 SJ 6.500%Due I1-1�-13 125,000.000 GENERAL 99.�3 124,410.00 110.11 137,639.25 0.9 4.8 DYNAMICS CORP �.250% Due 02-01-14 125,000.000 HONEYWELL 99.�6 124,452.50 106.19 132,743.12 0.9 3.6 INTERNATIONAL 3.875°/a Due 02-15-14 255,000.000 COCA-COLA CO 10424 265,819.65 105.84 269,890.72 1.8 3.4 3.625°/a Due 03-15-14 130,040.000 GOLDM.AN SACHS 103.81 134,95820 ll0.16 143,212.94 0.9 5.4 GROUP INC 6.000°/a Due OS-01-14 120,000.000 MORGAN STP.AILEY 99.65 119,53120 108.05 129,657.60 0.8 5.6 6.000% Due OS-13-1a 360,000.000 JP MORGAN 110.29 397,032.75 109.87 395,549.64 2.6 �.2 �.700%Due 11-1�-14 170,000.000 CITIGROUP INC 101.78 173,031.10 109.70 186,494.42 12 5.5 6.010% Due 01-1�-t5 65,000.000 GOLDMAN SACHS 99.74 64,829.10 107.44 69,834.96 0.5 4.8 5125%Due01-1�-1� � 130,000.000 PEPSICOINC 99.90 129,868.70 104.31 135,605.86 0.9 3.0 3.100% Due O1-1�-1� 400,000.000 BANK OF NEY YORK 99.87 399,484.00 101.28 405,130.40 2.7 2.9 MELLON 2.950% Due 06-18-15 185,000.000 GENERAL ELEC CAP 99.86 184,739.15 101.75 183,241.20 1.2 3.4 CORP 3.�00°/a Due 06-29-1� li5,000.000 MORGAI�! STANLEY 99.65 154,46�25 100.�2 15�,803.67 1.0 4.0 4.000% Due 07-24-15 17 ICC Capital Management PORTFOLIO APPRAISAL PA�M BEACH GARDENS POLICE PENSION FUND FIXED INCOME December 31, 2010 Lnit Total 1Vlarket Pci. Cur. Quantity Security Cost Cost Price Value Assets Yield 205,000.000 HEWLETT-PACKARD 101.34 207,738.80 98.74 202,422.74 1.3 2.2 CO 2.125 % Due 09-13-1 � 16�,000.000 MICROSOFT CORP 99.56 164,275.6� 97.52 160,912.45 1.1 1.7 1.625% Due 09-25-1 � 200,000.000 WAL-MART STORES 99.09 198,190.00 95J9 191,570.40 1.3 1.6 INC 1.500% Due 10-25-15 190,000.000 PROCTER & GANIBLE 99.20 188,480.00 98.04 186,26821 1.2 1.8 CO/I'HE 1.800%Due 11-1�-1� 300,000.000 SAN DIEGO GAS & 111.89 335,6�8.00 112.34 337,031.40 2.2 4.7 ELECTRIC 5.300%Due 11-1�-I� 215,000.000 EI DU PONT DE 99.86 214,690.40 96.75 208,004.54 1.4 2.0 NEMO[�R & CO 1.950% Due 01-1�-16 225,000.000 AT&T INC 10136 228,0712� 112.13 252,286.6� 1.7 �.0 5.625% Due 06-15-16 150,000.000 MCDONALD'S CORP 98.90 148,348.50 111.40 167,100.90 1.1 4.8 �.300°,% Due 03-15-17 115,000.000 V�RIZON 102.45 117,812.90 110.�1 127,08�.23 0.8 �.0 COMMiJNICATIONS �.�00% Due 04-01-17 100,000.000 NATIONAL RURAI. 99.68 99,680.00 11027 110,268.50 0.7 4.9 L�I'IL COOP 5.450% Due 04-10-ll 195,000.000 MERCK & CO INC 115.26 224,757.00 116.86 227,874.46 1.� �.1 6.000% Due 09-1�-17 225,000.000 MCDONALD'S CORP 102.47 230,5».2� 11�.�4 259,974.00 1.7 5.0 5.800% Due 10-15-17 ll5,000.000 CONS EDISON CO OF 99.96 114,949.40 114.89 132,119.01 0.9 5.1 NY �.850% Due 04-01-18 120,000.000 AMGEN INC 99.78 119,732.40 113.69 136,428.48 0.9 5.0 5.700% Due 02-01-19 125,000.000 CISCO SYSTEMS INC 98.81 123,518.75 108.98 136,220.37 0.9 4.5 4.950% Due 02-1�-19 115,000.000 CHEVRON CORP 99.97 114,964.35 112.09 128,906J2 0.8 4.4 4.950% Due 03-03-19 125,000.000 JOHNS HOPKINS 98.99 123,741.25 109.68 137,095.00 0.9 4.8 UNIVERSITY 5250% Due 07-01-19 155,000.000 NOVANT HEALTH 99.98 1�4,975.20 104.18 161,484.89 1.1 5.6 INC �.850% Due 11-01-19 180,000.000 BLACKROCK INC 99.61 179,298.00 104.42 187,959J8 1.2 4.8 5.000%Due 12-10-19 120,000.000 CONOCOPHII.LIPS 101.29 121,544.40 116.43 139,710.48 0.9 5.2 6.000% Due 01-1�-20 115,000.000 BOEING CO 98.96 I 13,801.70 107.6� 123,796.35 0.8 4.5 4.875% Due 02-15-20 140,000.000 BAXT'ER 99.61 139,456.80 102.83 143,966.06 0.9 4.1 INTERNATIONAL INC 4250% Due 03-15-20 18 ICC Capital Management PORTFOLIO APPRAISAL PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME December 31, 2010 liuit Total Market Pct. Cur. Quanfity Security Cost Cost Price Value Assets Yield 290,000.000 GOLDMAN SACHS 99.94 289,813.20 103.34 299,674.69 2A 5.2 GROUP INC 5375% Due 03-1 �-20 155,000.000 GEORGE 100.00 155,000.00 100.42 155,6�4.10 1.0 4.9 WASHING"I'ON UNNERSITY 4.896°/a Due 09-1�-20 215,000.000 UNIVERSITY OF 99.90 214,778.» 100.81 216,747.95 1.4 �.4 CHICAGO �.420% Due 10-01-�0 Accrued Interest 85,747.11 0.6 NIUNICIPAL BOIYDS 140,000 COMMONWE.4LTH FING AliTH PA REV �.6�3% Due 06-01-24 125,000 UT.4H ST 4.�54% Due 07-01-24 160,000 UNIVERSITY VA UNN REVS 5.000% Due 09-01-40 Accrued Interest GOVERNMEN'T BONDS 160,000.000 US TREASURY NB 1250% Due 09-30-15 175,000.000 US TREASL72Y NB 1.250% Due 10-31-1 � 500,000.000 US TREASURY NB 1.875% Due 08-31-17 315,000.000 US TREASURY NB 1.875°/a Due 10-31-17 46�,000.000 US TREASURY NB 3.375% Due 11-1�-19 Accrued Interest �IORTG.�,GE POOLS 13,a;4.210 GNJO M �781313 6.000°/a Due 07-1�-16 46,135.390 FNCI M #254371 5.500°/a Due 07-01-17 3,191.720 FGCI N #B 1345 � 4.500°/a Due 04-01-19 58,71�4.780 FiVCI N #'25d45 4.500°/a Due OS-01-19 32,048.170 F�1CI N #825335 4.000% Due OS-Ol-20 34,298.150 FNCI N #255888 4.000°,% Due 08-01-20 25,872.660 FNCI N �829053 4.000% Due 08-01-20 100.00 100.00 101.�6 100.20 100.53 99.19 98.97 97.98 103.12 99.56 99.71 96.09 97.31 97.31 97.00 7,982,�28.40 140,000.00 106.54 125,000.00 101.18 162,496.00 96.01 8,�k40,�25.46 5�.3 �1.3 149,154.60 1.0 5.3 126,475.00 0.8 4.5 1�3,616.00 1.0 52 6,905.77 0.0 427,496.00 436,151.37 29 �.0 160,325.00 97.02 175,929.69 96.78 495,937.50 95.46 311,751.56 95.06 45�,592.19 102.09 1,�99,53�.94 19,010.23 108.58 4�,933.55 107.83 3,152.31 105.56 56,420.4� 105.81 31,186.87 103.77 33,376.39 103.77 25,096.48 103.77 19 155,237.47 1.0 1.3 169,367.13 1.1 1.3 477,304.60 3.1 2.0 299,446.92 2.0 2.0 474,699.53 3.1 3.3 7,023.12 0.0 1,583,078.78 10.4 22 20,01�.63 0.1 5.5 49, 746.91 0.3 5.1 3,369.26 0.0 4.3 62,127.58 0.4 4.3 33,254.98 02 3.9 35,�89.68 0.2 3.9 26,846.92 0.2 3.9 ICC Capital Management PORTFOLIO APPRAISAL PALM BEACH GARDENS POLICE PENSION FUND FIXED INCOME December 31, 2010 Unit Total 1�tarket Pct. Cur. Quantity Security Cost Cost Price Value Assets Yiefd 67,267.870 FGCI #G12205 96.43 64,902.98 105.44 70,925.56 0.5 4.3 4.�00% Due 06-01-21 3,644.852 FGCI N#G12323 95.88 3,494.50 105.44 3,843.04 0.0 4.3 4.500%Due 08-01-21 96,042.360 GNSF M#»2�09 98.77 94,856.84 110.41 106,041.14 OJ �.4 6.000% Due 04-I 5-32 22,412.400 GNSF M��821�3 99.33 22,373.88 110.41 24,745.71 0.2 5.4 6.000% Due 06-15-32 356,270.382 FGLIv(C #G02268 102.08 363,67438 ll 1.22 396,253.89 2.6 5.8 6.�00% Due 08-01-36 318,337J82 GN POOL # 752119 107.08 340,870.13 110.44 3�1,582.75 2.3 5.4 6.000% Due 08- I �-36 344,132.830 FNCL # 256394 102.00 351,015.61 111.50 383,721.87 2.5 5.8 6.�00%Due 09-01-36 264,934.340 G2 POOL # 4194 106.12 281,161.57 107.72 285,376.41 1.9 5.1 5.�00% Due 07-20-38 103,778.142 G2 POOL # 4195 99.89 103,664.51 109.71 113,85054 0.7 5.� 6.000% Due 07-20-38 329,404.034 G2 POOL # 4447 104.31 345,256.60 106..i7 3�0,400.�8 2.3 4.7 5.000°�o Due OS-20-39 370,236.901 GNSF 5.5°/a POOL 106.16 393,029.61 108.17 400,490.44 2.6 �.1 #714005 �.500%Due 10-1�-39 Accrued Intezest GOVER'VMENT SPONSORED BOND 400,000.000 FANNIE i�fAE 1.750%Due 10-21-15 425,000.000 FANNIE IvL\E 2.000% Due 10-2�-16 200,000.000 FAT(NIE MAE 6.000% Due 04-28-21 26�,000.000 FANNIE MAE 5.625% Due 11-15-21 300,000.000 FREDDIE M.AC 5.900°/a Due 06-15-22 Accrued Interest TOT:�L PORTFOLIO 100.00 100.00 99.20 99.32 98.63 2,� 78,�06.94 400,000.00 425,000.00 198,394.00 263,198.00 295,890.00 1,582,482.00 14,643,398?3 20 9734 95.87 101.66 104.00 106.56 11,889.52 0.1 2,730,072.40 17.9 5.2 389,375.00 407,468.75 203,312.50 275,600.00 319,677.90 7,710.80 1,603,144.9� 2.6 2.7 1.3 1.8 2.1 0.1 10.5 15,265,821.91 100.0 i.s 2.1 5.9 5.4 5.� 3.8 41 I PALM BEACH GARDENS POLICE PENSION FUND GROWTH Investment Review Quarter Ending December 31, 2010 ICC Cnpital M�ir�ngen�e�it, I�ic. PALM BEACH GARDENS POLICE PENSION FUND GROWTH Investment Performance Report Quarter Ending December 31, 2010 Total Return Summary Portfolio Allocation Investment Performance by Asset Category Portfolio Sector Diversification Investment Performance by Sectors Portfolio Attributes Brokers Commission Purchases & Sales Realized Gains/ Losses Portfolio Summary Portfolio Appraisal Appendix: Proxv Votes ICC Capital Maringerrient, Inc. Page...... Page...... Page...... Page...... Page...... Page...... Page.... Page.... Page.... Page.... Page.... 1 2 3 4 5 6 7 8 10 11 12 PALM BEACH GARDENS POLICE PENSION FUND GROWTH Total Return Summary Quarter Ending December 31, 2010 Starting Value Ending Value Difference Net Contributions/ (Withdrawals) Gaitg/(Loss) from Investments $5,194,553 $5,792,782 $598,229 ($716) $598,945 $5,257,947 $5,792,782 $534,835 ($323,462) $858,297 $1,200,000 $5,792,782 $4,592,782 $3,517,070 $1,075,712 TOTAL RETLIRN 11.53% 17.25% 13.16% ANNUALIZED RETLIRN 3.27% ICC C�pitrzl Mnnngenient, Inc. 1 PALM BEACH GARDENS POLICE PENSION FUND GROWTH Portfolio Allocation at Market Quarter Ending December 31, 2010 Asset Allocation: 100/0 (Mkt) Market Value CASH/EQUIVS as of 09/30C10 3.0 °�o EQUITY 97.0 % Market Value CASH/EQUIVS as of 12,/31/10 1.6°0 EQUITY 98.4 % Mkt Value Mkt Value % Mkt Value Mkt Value % as of 09/30/10 as of 09/30/10 as of 12,/31/10 as of 1?,/31/10 Cash/E uivs $155,954 3.0% -$98,037 -1.7% E uit $5,038,599 97.0% $5,890,819 101.7% Total $5,194,553 100.0% $5,792,782 100.0% ICC Capital Manngement, Inc. PALM BEACH GARDENS POLICE PENSION FUND GROWTH Investment Performance by Asset Category Quarter Ending December 31, 2010 uarter �■ ACCOUNT ■ INDEX 30.00 20.00 . 11.63 11.83 11.53 11.83 11.41 11.83 10.00 �' - - - -.� 0.00 " EQUITY TOTAL GROSS OF FEES TOTAL NET OF FEES One Year ��� 17.36 16.71 20.00 - 10.00 0.00 - ="` - EQUITY Since Inception (02,/ZS/07 -12/31/10) 10.00 : 11 . 11 4.00 2,29 2.40 2.00 - 0.00 - - EQUITY 17.25 16.71 TOTAL GROSS OF FEES 3.27 2.40 TOTAL GROSS OF FEES i ■ ACCOUNT ■ INDEX 16.75 16.71 TOTAL NET OF FEES ■ ACCOUNT ■ INDEX 2•� 2.40 TO�1��AL NI��I� �)f� l�LES The red tofal bar represents the Kussell 1000 Groznfh Index. ICC Capitnl Mnringe►rierit, Inc. 3 PALM BEACH GARDENS POLICE PENSION FUND GROWTH Portfolio Sector Diversification Quarter Ending December 31, 2010 TARGET CORPORATION APPLE COMPUTER INC. MICROSOFT CORP. THOMAS & BETTS CORP. MARVELL TECHNOLOGY GROUP AMR CORP. SOUTHWEST AIRLINES CO. TORO CO. GENERAL CABLE CORP DEL NEW BROADCOM CORP. Materials Industrials Telecommunications Consumer Discretionary Consumer Staples Energy Financials Health Care Information Technology Utilities ICC Capitnl Mnnngement, Iric. To� Ten Holdin�s % of equii 4.29 % 3.56 % 3.51 % 3.36 % 3.06% 2.98 % 2.75 % 2.51 % 2.44 % 2.44% Sector Contribution % of Portfolio 7.22 % 20.42% 4.46 % 11.61 % 6.1 S % 10.95 % 5.09 % 13.01 % 19.12% 1.93% 4 Return for Quarter 13.02 % 13.68 % 14.67% 17.75% 5.94 % 24.51 % -0.65 % 9.98 % 29.39 % 23.31 % Return for Quarter 10.87% 13.99 % 0.19% 1.71 % 6.76 % 26.55 % 16.27% 9.86 % 13.54% 7.78 % PALM BEACH GARDENS POLICE PENSION FUND GROWTH Investment Performance by Sectors Quarter Ending December 31, 2010 Index Sector Returns, or 4 10 30.0 - i 19.9 20.0 10.0 0.0 9vs�r� fi��4 df P�Y d�S 21.6 ,c;. f G �'Pl('(' �p�s �o�s t�'��r �d �Pd� �j i• f�lf o� 4� 4�j d'y �i�,i� fif � Ojd� �Ps , �Jj` <O!. P!� �S dr, fp �7f� Qis,� `S'�dA N � P dr`!� fPf . �P3, �� �s �0�7 ��JO d� �� Sector Diversification Relative to the Russell 1000 Growth Index 20.0 OVERWEIGHT 10.0 - �I�1� 7.1 n � (1_4 -3.1 -3.3 - -10.0 - UNDERWEIGHT -11.8 -20.0 �ds r�q, �'�,� C�o C�o �'bP � �P fi�`.o GI • . ��'�i �'st . P�'o �s4 �s4 r�,G d�� �ff� f�j lf�P ' 7°'fPr �'!°'/s �jl7y` �jPr �jPr�, �dls � � d�lp� s �7l �ji diy,� fdA J, s �dt�0 ��f � �PS P��� �s �O� oJo d� �y ICC Cnpitnl Managernent, Inc. 5 PALM BEACH GARDENS POLICE PENSION FUND GROWTH Growth Portfolio Attributes Quarter Ending December 31, 2010 CAPITALIZATTON ICC � R1000G � BETA ICC � R1000G � YIELD ICC � R1000G � .ia. ICC � R1000G � 3 YEAR EPS GROWTH ICC � R1000G � 5 YEAR EPS GROWTH ICC � R1000G � ICCCnniMl Mmm4ement. Irrc. 1 3 2010 9 30 2010 6 30 2010 3 3 2010 40.2 45.6 43.4 50.1 85.2 76.0 69.5 77.9 1 3 2010 9 30 2010 6 30 2010 3 3 2010 1.00 1.01 1.01 1.02 1.00 1.00 1.00 1.00 1 3 2010 9 30 2010 6 30 2010 3 3 2010 0.90 1.00 1.50 1.00 1.40 1S0 1.70 1.50 1 3 2010 9 30 2010 6 30 2010 3 3 2010 16S 15.3 12.4 1�.8 1�1 14.4 13.3 15.6 1 3 2010 9 30 2010 6 30 2010 3 3 2010 3.0 3.0 5.0 12.0 �1.0 4.0 5.0 9.0 1 3 2010 9 30 2010 6 30 2010 3 3 2010 19.0 20.0 14.0 18.0 12.0 13.0 13.0 15.0 0 MARKET CAPITALIZATION 100.0 -I 85�2 76.0 77.9 75.0 � 69.5 50.0 - 402 4�.6 43.4 50.1 25.0 - OA - -- - - 12/31/2010 9/30/2010 6/30/2010 3/3]/2010 t.so T BETA t.00 i.oa i.ai i.00 i.ot �.oa t.o2 t o0 i.00 - oso - o.00 � - �z�si/?oio 9/3o/zoio 6/ao/zo�o s/si/zo�o 3.0 � 2.o t.�o t.ao isa tso 1.0 0.90 � 00 0.0 - - - 12/31/2010 9/30/2010 6/30/2010 YIELD iso 1.00 3/37/2010 o.o - PRIC£/£.ARNING° D.0 �� 165 I�. I 15.3 14.� 15.8 15.6 �z.a is.; o.o o.o ; -`� _, _ �z/3vzaio 9/3oi2oto eisoi?nio 3isii�mn ts.o T 3 YR EPS GROW'TH 12.0 l0A - 9.0 �.0 5.0 5.0 SA - 3.0 30 4.0 0.0 -� � iz/si/zo�o 9/so/2oio e/so/zoio a/si/zoio so.o T 5 YR EPS GROW'TH 19A 20.0 20.0 -- 18.0 is.o i 1 Z.0 13.0 I4.0 73.0 10.0 � 0.0 --- � - .- , , I2/31/2010 9/30/2010 6/30/2010 3/31/2070 PALM BEACH GARDENS POLICE PENSION FUND GROWTH Broker Commission Summary Report Quarter Ending I Date Trans Ticker S 10/26/2010 10/26/2010 10/26/2010 10/26/2010 10/26/2010 10/26/2010 10/26/2010 10/26/2010 12/8/2010 11/1/2010 12/9/2010 12/9/2010 12/9/2010 10/8/2010 10/13/2010 10/18/2010 10/21/2010 10/27/2010 10/ 27/ 2010 10/27/2010 10/27/2010 11/1/2010 11/1/2010 11/1/2010 11/1/2010 11/2/2010 11/17/2010 11/17/2010 11/17/2010 11/22/2010 12/2/2010 12/2/2010 12/2/2010 12/3/2010 12/3/2010 12/3/2010 12/3/2010 12/9/2010 12/16/2010 12/16/2010 12/16/2010 12/16/2010 12/17/2010 12/22/2010 Sell Sell Sell Sell Sell Sell Sell Sell SUPG SUPG SUPG SUPG SUPG SUPG SUPG SUPG MYL December 31, 2010 Supergen Inc Supergen Inc Supergen Inc Supergen Inc Supergen Inc Supergen Inc Supergen Inc Supergen Inc Mylan Laboratories arney `ompany Buy OXY Occidental Pete Corp Sell XOM Exxon Mobile Corp. Sell XOM Exxon Mobile Corp. Sell X(�M Exxon Mobile Corp. Buy Buy Sell Sell Buy Buy Sell Sell Sell Buy Sell Sell Buy Buy Sell Sell Buy Sell Buy Sell Sell Sell Sell Sell Buy Buy Sell Sell Sell Buy Buv AMR COP NTAP WFC AMG CXO GS GS NTAP PH NTAP NTAP IPG JwN ETN VFC ALB PEP CLF PEP KSS KSS KSS KSS DRI MJN AVP AVP ENR GENZ C'F AMR Corp Conocophillips Netapp Inc Wells Fargo And Co. Affiliated Managers Group Concho Resources Inc Goldman Sachs Group Inc. Goldman Sachs Group Inc. Netapp Inc Parker-Hannifin Corp. Netapp Inc Netapp Inc Interpublic Group Compani Nordstrom Inc. Eaton Corp. VE Corp. Albemarle Corp Pepsico Inc. Cliffs Natural Resources Inc Pepsico Inc. Kohls Corp Kohls Corp Kohls Corp Kohls Corp Darden Restaurants Inc Mead Johnson Nutrition Co Avon Products Inc. Avon Products Inc. Energizer Holdings Inc Genzyme Corp C;t IndUS'1'ries Holdings lnc ICC Capital Managernent, Inc. 7 $Amount Shares Price $1,514.45 $826.07 $5,231.75 $6,608.53 $4,130.33 $16,521.31 $4,818.72 $4,681.04 $86,479.45 $112,425.88 $50,257.47 $57,437.10 $14,359.28 $23,883.76 $108,646.56 $10,025.57 $109,228.81 $112,206.38 $27,017.68 $95,021.18 $15,836.86 $42,583.68 $124,552.96 $37,260.72 $5,322.96 $26,143.50 $120,197.17 $92,890.73 $120,901.86 $53,877.90 $12,991.54 $114,868.00 $25,983.08 $27,307.88 $103,769.98 $5,461.58 $5,461.58 $114,194.31 $117,906.21 $83,684.76 $31,742.49 $59,445.64 $111,738.88 $63,737.15 550 300 1900 2400 1500 6000 1750 1700 4300 1400 700 800 200 3800 1800 200 4200 1300 400 600 100 800 1600 700 100 2500 2900 1000 1500 1000 200 1600 400 500 1900 100 100 2300 1900 2900 1100 800 1600 500 $2.77 $2.77 $2.77 $2.77 $2.77 $2.77 $2.77 $2.77 $20.09 $80.26 $71.82 $71.82 �71.82 $6.28 $60.35 $50.14 $26.02 $86.30 $67.53 $158.38 $158.38 $5324 $77.84 $53.24 $53.24 $10.45 $41.44 $92.90 $80.61 $53.87 $64.97 $71.78 $64.97 $54.63 $54.63 $54.63 $54.63 $49.64 $62.05 $28.87 $28.87 $74.32 $69.83 $127.46 Comm PerSh $11.00 $6.00 $38.00 $48.00 $30.00 $120.00 $35.00 $34.00 $86.00 $56.00 $14.00 $16.00 �'i4.00 $38.00 $18.00 $2.00 $42.00 $13.00 $4.00 $6.00 $1.00 $8.00 $16.00 $7.00 $1.00 $25.00 $29.00 $10.00 $15.00 $10.00 $2.00 $16.00 $4.00 $5.00 $19.00 $1.00 $1.00 $23.00 $19.00 $29.00 $11.00 $8.00 $16.00 $5.00 $0.02 $0.02 $0.02 $0.02 $0.02 $0.02 $0.02 $0.02 $0.02 $0.04 $0.02 $0.02 $0.02 $0.01 $0.01 $0.01 $0.01 $0.01 $0.01 $0.01 $0.01 $0.01 $0.01 $0.01 $0.01 $0.01 $0.01 $0.01 $0.01 $0.01 $0.01 $0.01 $0.01 $0.01 $0.01 $0.01 $0.01 $0.01 $0.01 $0.01 $0.01 $0.01 $0.01 $0.01 ICC Capital Management PURCHASE AND SALE PALMBEACH GARDENS POLICE PENSION FUND GROWTH From 09-30-10 To 12-31-10 Trade Settle Date Date PURCHASES 10-27-10 11-01-10 11-22-10 11-26-10 10-08-10 10-14-10 12-22-10 12-28-10 12-02-10 12-07-10 10-27-10 11-01-10 10-13-10 10-18-10 12-09-10 12-14-10 12-17-10 12-22-10 11-02-10 11-0�-10 12-16-10 12-08-10 11-17-10 11-01-10 11-01-10 SALES 12-16-10 12-16-10 11-17-10 12-16-10 12-09-10 12-09-10 12-09-10 10-27-10 10-27-10 12-03-10 12-03-10 12-03-10 12-03-10 10-18-10 11-01-10 11-01-10 11-01-10 12-02-10 12-02-10 10-26-10 10-26- I 0 12-21-10 12-13-10 11-22-10 11-04-10 11-04-10 12-21-10 12-21-10 11-22-10 12-21-10 12-14-10 12-14-10 12-14-10 11-01-10 11-01-10 12-08-10 12-08-10 12-08-10 12-08-10 10-21-10 11-04-10 i 1-04-10 11-0�-10 12-07-10 12-07-10 10-29-10 10-29-10 Quantity Secu 1,300.00 AFFILIATED MANAGERS GROtiP NC 1,000.00 ALBEMARLE CORP 3,800.00 ANIR CORP 500.00 CF INDUSTRIES HOLDINGS INC. 1,600.00 CLIFFS NATURAL RESOURCES INC 400.00 CONCHO RESOURCES INC 1,800.00 CONOCOPHILLIPS 2,300.00 DARDEN RESTAIJRANTS INC 1,600.00 GENZYNIE CORP 2,500.00 NTERPUBLIC GROUP COMPAMES INC. 1,900.00 MEAD JOHNSON NUTRITION CO 4.300.00 MYLAN LABORATORIES 2,900.00 NORDSTROM INC. 1,400.00 OCCIDENTAL PETE CORP 1,600.00 PA.RKER-HANNIFIN CORP. 2,900.00 AVON PRODUCTS INC. 1,100.00 AVON PRODUCTS INC. 1,000.00 EATON CORP. 800.00 ENERGIZER HOLDINGS INC 700.00 EXXON MOBILE CORP. 800.00 EXXON MOBILE CORP. 200.00 EXXON MOBILE CORP. 600.00 GOLDMAN SACHS GROUP INC 100.00 GOLDMAN SACHS GROliP INC 1,900.00 KOHLS CORP 100.00 KOHLS CORP 100.00 KOHLS CORP 500.00 KOHLS CORP 200.00 NETAPP INC 800.00 NETAPP INC 700.00 NETAPP INC 100.00 NETAPP INC 200.00 PEPSICOINC. 400.00 PEPSICOINC. 1,700.00 SUPERGEN INC 5�0.00 SUPERGEN INC s Unit Price Amount 86.31 112,206.38 �3.88 6.29 127.47 71.79 67.�4 60.36 49.6� 69.84 10.46 62.06 20.11 41.4� 80.30 77.35 28.86 28.86 92.89 74.31 71.80 71.80 71.80 1 �8.37 158.37 �4.62 54.62 54.62 �4.62 50.13 �3.23 J�.�� 53.23 64.96 6�1.96 2.7� 2.7� �3,877.90 23,883.76 63,737.1� 114,868.00 27,017.68 108,646.56 114,194.31 11 1.738.88 26,14�.�0 117,906.21 86,479.4� 120,197.17 112,425.88 124,552.96 1,317,875.79 83,684.76 31,742.49 92, 8 90.73 59,445.64 50,257.47 57,437.10 14,359.28 95,021.18 1 �,836.86 103,769.98 5,461.53 5,�61.58 27,3 07.88 10,025.57 42,583.63 37,260.72 5,322.96 12,991.�4 25,983.08 4,681.04 1,514.45 ICC Capital Management PURCHASE AND SALE PALMBEACH GARDENS POLICE PENSION FUND GROWTH From 09-30-10 To 12-31-10 Trade Settle Date Date 10-26-10 10-29-10 10-26-10 10-29-10 10-26-10 10-29-10 10-26-10 10-29-10 10-26-10 10-29-10 10-26-10 10-29-10 11-17-10 11-22-10 10-21-10 10-26-10 Quantity Security 300.00 SU�ERGEN INC 1,900.00 SUPERGEN INC 2,400.00 SUPERGEN INC 1,500.00 SUPERGEN INC 6,000.00 StiPERGEN INC 1,750.00 SUPERGEN INC 1,JOO.00 VF CORP. 4,200.00 WELLS FARGO AivD CO. Unit Price 2.75 2.75 2.75 2.7� 2.75 2.7� 80.60 26.01 Amount 826.07 5,231 J� 6,608.53 �1,130.33 16,�21.31 4,818.72 120,901.86 109,228.81 1,051,3069� ICC Capital Management REALIZED GAINS AND LOSSES PALM BEACH GARDENS POLICE PENSION FUND GROWTH From 09-30-10 Through 12-31-10 Open Close Date Date 04-07-09 10-18-10 0�-10-10 10-21-10 03-08-07 10-26-10 03-13-07 10-26-10 03-26-07 10-26-10 07-26-07 10-26-10 08-02-07 10-26-10 10-12-07 10-26-10 10-30-07 10-26-10 O 1-28-08 10-26-10 06-04-09 10-27-10 01-26-10 10-27-10 07-18-07 11-01-10 07-26-07 11-01-10 10-12-07 11-01-10 09-03-10 11-17-10 OS-27-10 11-17-10 08-13-08 12-02-10 04-07-09 12-02-10 02-01-08 12-03-10 04-22-08 12-03-10 OS-13-08 12-03-10 04-07-09 12-03-10 10-03-03 12-09-10 10-23-08 12-09-10 oa-07-09 12-09-10 10-12-09 12-16-10 04-13-10 12-16-10 10-1�-09 12-16-10 TOT.SL GANS TOTAL LOSSES Quantiri Securitv 200.00 NETAPP INC 4,200.00 WELLS FARGO AI�ID CO. 1,700.00 SUPERGEN INC 550.00 SUPERGEN INC 300.00 SUPERGEN INC 1,900.00 SUPERGEN INC 2,400.00 SUPERGEN INC 1,500.00 SUPERGEN INC 6,000.00 SLPERGEN INC 1,7�0.00 SUPERGEN INC 600.00 GOLDIvLANN SACHS A GROUP INC. 100.00 GOLDM.�V SACHS GRO�P LtiC. 800.00 N�TAPP INC 700.00 NETAPP INC 100.00 NETAPP INC 1,000.00 EATON CORP. 1,500.00 VF CORP. 200.00 PEPSICOINC. 400.00 PEPSICOINC. 1,900.00 KOHLS CORP 100.00 KOHI.S CORP 100.00 KOHLS CORP 500.00 KOHIS CORP 700.00 EXXON MOBII.E CORP. 800.00 EXXON MOBII.E CORP. 200.00 EXXON MOBILE CORP. 2,900.00 AVON PRODUCTS R�iC. 1,100.00 AVON PRODUCTS IIvC. 800.00 ENERGIZER HOLDINGS INC Cost Basis 2,966.00 137,096.82 9,�68.45 2,95�.10 1,725.99 11,734.02 11,736.00 6,975.00 26,496.00 6,066.02 89,325.24 Gain Or Loss Proceeds Short Term Long Term 1Q025S7 7,059.�7 109,228.81 4,681.04 1,514.45 826.07 �,231.75 6,608.53 4,130.33 16,�21.31 4,818.72 95,021.18 -27.868.01 15,359.07 1�,836.86 �77.79 24,436.08 21,367.99 z,aso.00 76,266.90 115,680.90 13,882.00 21,016.00 86,652.92 4,603.00 4,750.00 21,715.00 56,11732 5�,062.80 13,654.00 99,669.�2 35,349.93 �2,891.92 42,583.68 37,260.72 5,322.96 92,390.73 120,901.86 12,991.�4 25,983.08 103,769.98 5,461.58 5,461.58 27,307.38 SQ257.47 57,437.10 14,359.28 83,684.76 31,742.49 59,�145.64 1,027,999.99 1,051,306.95 TOT.4L REALIZED GAIN/LOSS 23,306.95 l�i 16,623.83 5,220.96 -a,ss�.ai -1,440 6� -399.92 -6,50227 -5,127.47 -2, 844.67 -9,974.69 -1,247.30 5,695.9a 18,147.60 1 �,892.73 2,442.96 -890.46 4,967.08 17, I 17.06 858.�8 711.58 5,592.88 -�,859.8� 2,374.30 70528 -1�,984.76 -3,607.44 6.�53.72 22,322.�8 88,11925 -31,475.45 -»,6�9.45 -9,152.87 32,459.82 ICC Capital Management PORTFOLIO SUNIMARY PALM BEACH GARDENS POLICE PENSION FUND GROWTH December 31, 2010 Security Type Cash & Equivalents CASH AND EQUIVALENTS Equities COMMON STOCK MATERIEILS INDUSTRIALS TELECOMIvIUNICATIONS CONSLJi�R DISCRETIONARY CONSUNIER STAPLES E�IERGY FINANCIALS HEALTH CARE INFORMATION TECHNOLOGY UTILITIES _ CONLMON STOCK TOTAL PORTFOLIO Total Cost -98,037.11 -98,037.11 360,1 �4.49 953,993.38 220.357.61 691,090.14 359,718.01 530,522.99 311,253.82 624,239.06 748,600.�8 82,769.25 4,887,699.33 4,887,699.33 4,789,662.22 Pct. Cur. Market Value Assets Yield -95,037.11 -1.7 0.1 -93,037.11 -1.7 0.1 � 425,116.00 7.3 1,203,398.00 20.8 263.002.00 4.5 683,930.00 11.8 364,017.00 6.3 64�,482.00 11.1 299,826.00 52 766,413.00 13.2 1,125,830.00 19.4 11�,805.00 2.0 �,890,819.00 101.7 5,890,819.00 101.7 5,792,781.89 100.0 0.8 0.9 0.0 0.9 1.2 0.9 0.9 0.7 0.3 3.d 0.8 0.8 0.8 Est.Annual Income -1�1.6� -121.6� 3,588.00 10,253.00 0.00 �,8�2.00 4,225.00 �,808.00 2,�72.00 5,246.00 3,848.00 3,888.00 45,280.00 4�,280.00 45,158.35 ICC Capital Management PORTFOLIO APPRAISAL PALM BEACH GARDENS POLICE PENSION FUND GROWTH December 31, 2010 tinit Total Vlarket Pct. Cur. Quantity Security Cost Cost Price Value Assets Yield CASH ��1D EQtiIVALENTS CASH & CASH EQUNALENTS -99,71�.36 -99,715.36 -1.7 -0.1 DN CASH ACCRUAL ACCT 1,678.25 1,678.2� 0.0 0.0 -98,037.11 -98,037.11 -1J 0.1 CObi1�10N STOCK NiATERIAI.S 2,300.00 ALBEMARI.E CORP 500.00 CF INDUSTRIES HOLDINGS INC. 1,600.00 CLIFFS NATLIRAL RESOURCES INC 1,700.00 NEWMONT MINING CORP LVDL'STRIALS 22,500.00 A]�IR CORP 2,200.00 E;CPEDITORS INTL WASH INC 1,300.00 GENER�I. DY�IAMICS CORP 4,900.00 GENERAL ELECTRIC CO. 1,600.00 PARKER-FiA2�1NIFIN CORP. 12,�00.00 SOUTI-IWEST AIRi.INES CO. 4,100.00 THOMAS & BETTS CORP 2,400.00 TORO CO 1,100.00 UNITED PARCEL SVC INC TELECOMMUNICATIONS 1,200.00 ANiERICP.l�I TOWER CORPORATION 11,100.00 CLEARWIRE CORP-CLASS A 4,100.00 GENERAL CABLE CORP DEL NEW CONSUMER DISCRETIONARY 2,300.00 DARDEN RESTAURANTS INC 12, 900. 00 INTE RP [i B L IC GROUP COMPA.�IIES INC. 2,900.00 NORDSTROM INC. 8,600.00 PL'LTE CORP 4624 127.47 71.79 44.24 7.43 36.61 67.90 22.40 77.85 7.84 25.86 45.10 69.38 106,347.59 �5.78 63,737.1� 135.1� 114,868.00 78.01 7�,201.75 61.43 360,154.49 167,184.14 7.79 80,550.�8 �4.60 88,273.64 70.96 109,778.43 18.29 124,5�2.96 86.30 98,061.25 12.98 106,028.98 48.30 108,246.96 61.64 76.316.39 72.�8 958,993.38 37.42 44,907.00 51.64 6.33 7�,768.54 5.1� 24.31 99,682.07 35.09 220,357.61 49.6� 114,194.31 46.�4 9.78 126,145.82 10.62 41.45 11.68 12 120,19717 42.38 100,436.82 7.�2 123,294.00 2Z 1.0 67,575.00 1.2 ? 124,816.00 2.i 1.0 104,431.00 1.8 1.0 42�,116.00 7.3 0.8 175,275.00 3.0 0.0 120,120.00 2.1 0.7 92,248.00 1.6 2.0 89,621.00 1.5 2.6 138,080.00 2.4 0.9 162,250.00 2.8 0.1 198,030.00 3.4 0.0 147,936.00 2.6 1.2 79,838.00 1.4 2.5 1,203,398.00 20.8 0.9 61,968.00 1.1 0.0 57,16�.00 1.0 ? 143,869.00 2.5 ? 263,002.00 4.5 0.0 106,812.00 1.8 ° 136,998.00 2.4 0.0 122,902.00 Z.1 1.0 64,672.00 1.1 2J ICC Capital Management PORTFOLIO APPRAISAL PALMBEACH GARDENS POLICE PENSIDN FUND GROWTH December 31, 2010 Unit Total Market Pct. Cur. Quantity Security Cost Cost Price Value Assets Yield 4,200.00 TARGET 54.79 230,116.02 6013 252,546.00 4.4 l.l CORPORATION 691,090.14 683,930.00 11.3 0.9 CONSUMER STAPLES 2,600.00 CVS CARE:v1ARK CORP 500.00 E�IERGIZER HOLDINGS INC 1,900.00 MEAD JOHNSON iv'UTRTI'ION CO 3,300.00 SYSCO CORP ENERGY 2,300.00 ATWOOD OCEANICS INC 1,600.00 CONCHO RE50URCES I� iC ],800.00 CONOCOPHII.LIPS 600.00 EXXON MOBII.E CORP. 1,400.00 OCCIDENTr1L PETE CORP 3,300.00 SUPERIOR E�IERGY SERVICES INC FINAI�ICIALS 1,300.00 AFFII.IATED MANAGERS GROUP INC 1,700.00 FEDERATED INVESTORS INGCL B 500.00 FR.41�IkLIN RES INC 2,600.00 1vfORG.4I�I STP.NLEY HEALTH CARE I,�00.00 ABBOTT LAB COM 1,100.00 BECTON DICKINSON & CO 1,200.00 CERNER CORP 3,700.00 CIGNA CORP 1,600.00 GENZYVtE COIL° 5,700.00 MYLAN LABORATORIES 1,�00.00 STRYKER CORP 14,250.00 SUPERGEN INC I��OR�VIATION i'ECI-I�iOLOGY 650.00 APPLE COMPUTER INC 3,300.00 BROADCOM CORP 34.61 66.11 62.06 29.98 26.43 6�.40 60.36 6�.99 80.30 31.6� 86.31 89,974.00 52,891.92 117,90621 98,945.88 359,718.01 60,779.57 104,641.96 103,646.56 39,�92.32 112,42�.83 104,436.70 530,522.99 34.77 72.90 62.2� 29.40 37.37 87.67 68.10 73.12 98.10 34.99 112,206.38 99.22 90,402.00 58,320.00 118,275.00 97,020.00 364,017.00 1.6 0.9 1.0 0.0 2.0 ? 1.7 3.� 63 12 85,951.00 1.5 ? 140,272.00 2.4 ? 122,580.00 2.1 24 43,872.00 0.8 2.3 137,340.00 2.4 1.3 115,467.00 2.0 0.0 645,482.00 11.1 0.9 123,986.00 2.2 ? 21.19 36,025.96 26.17 44,489.00 0.8 3.7 102.36 51,180.60 111.21 55,605.00 1.0 0.8 43.02 111,340.88 2721 70,746.00 1.2 0.7 311,253.82 299,826.00 5.2 0.9 52.3� 78,�21.00 64.29 70,720.77 4924 �9,088.16 21.9� 81,228.98 69.84 111,738.83 19.6� 111,999.49 53.03 79,623.60 220 31,318.18 624,239.06 47.91 71,865.00 84.52 92,972.00 9d.74 113,688.00 36.66 13 �,642.00 71.20 113,920.00 21.13 120,�41.00 53.70 80,5�0.00 2.62 37,335.00 766,413.00 126.32 82,107.�� 322.�6 209,664.00 26.68 88,029.30 43.55 143,71 i.00 13 12 3.3 1.6 ].9 2.0 0.0 2.3 0.1 2.0 0.0 2.1 0.6 1.4 03 0.6 0.0 13.2 0.7 3.6 0.0 2.5 0.0 ICC Capital Management PORTFOLIO APPRAISAL PALM BEACH GARDE�VS POLICE PENSION FUND GROWTH December 31, 2010 Unit Total Market Pct. Cur. Quantity Security Cost Cost Price Value Assets Y'ield 3,800.00 EMC CORP 1�.32 58,202.97 22.90 87,020.00 1.5 0.0 6,400.00 JDS LT7IPHASE CORP 10.44 66,815.23 la.as 92,672.00 1.6 0.0 9,700.00 M.ARVELL 1Li3 111,850.07 18.55 179,935.00 3.1 0.0 TECH�IOLOGY GROUP 1�,100.00 MICRON 5J6 87,008.20 8A2 121,102.00 2.1 0.0 TECHiv�OLOGY INC 7,400.00 MICROSOFT CORP. 29.49 213,23426 27.91 206,�34.00 3.6 1.9 1,550.00 ��1ET.a.PP INC 23.45 36,353.00 �4.96 85,138.00 1.5 0.0 748,600.58 1,12�,830.00 19.4 0.3 UTII.ITIES 8,100.00 NV ENERGY INC COMMON STOCK Total 10.22 82,76925 82,769.25 4,837,699.33 14.05 113,80�.00 2.0 3.4 113,80�.00 2.0 3.4 �,890,819.00 101.7 0.3 TOT�L PORTFOLIO 4,789,662.22 5,792,781.89 100.0 0.8 1 �l ������ An tv55Ci Brand �te Summary Report ate range covered: 10/O1/2010 to 12/31/2010 �ation(s): ICC Capital �titution Account(s): Palm Beach Gardens Police Fund ker Archer-Daniels-Midland Company Meeting Date Country Security ID Meeting Type Record Date Shares Voted Shares Instruded Shares Available Shares on Loan 04-Nov-10 USA 039483102 Annual 09-Sep-10 2,400 2,400 2,400 0 CUSIP: 039483102 ISIN: U50394831020 SEDOL: 2047317 Proxy level: 3 Meeting ID: 602779 Votable Vote ting Policy: Taft-Hartley sailot Count: 1 Proponent Proposal Mgmt Rec ISS Rec Policy Rec Instruction � Elect Director George W. Buckley Mgmt Yes For For For For > Elett Director Mollie Hale Carter Mgmt Yes For For Against Against 3 Elett Director Pierre Dufour Mgmt Yes For For For For � Elect Director ponald E. Felsinger Mgmt Yes For For For For i Elect Director Victoria F. Haynes Mgmt Yes For For For For i Elect Director Antonio Macie! Neto Mgmt Yes For For For For � Elect Director Patrick J. Moore Mgmt Yes For For For For 3 Elect Director Thomas F. 0'Neill Mgmt Yes For For For For 3 Elect Director Kelvin R. Westbrook Mgmt Yes For For For For ' 0 Elect Director Patricia A. Woertr Mgmt Yes For For Against Against �1 Ratify Auditors Mgmt Yes For For Against Against l2 Adopt Policy to Prohibit Political Spending SIT Yes Against Against Against Against l3 Report on Political Contributions SIT Yes Against For For For �ccounts and Shares nstitutional Account Detail (IA Name, IA Number) 'alm Beach Gardens Police Fund, unassigned Custodian Account 450079100 SYSCO Corporation Ballot Status Confirmed Totals: Available 2, 400 2,400 Voted Z,400 2,400 kar Meeting Date Country Security ID Meeting Type Record Date Shares Voted Shares Instruded Shares Available Shares on Loan Y 12-Nov-10 USA 8718Z9107 Annual 14-Sep-10 3,300 3,300 3,300 0 CUSIP: 871829107 ISIN: U58718291078 SEDOL: 2868165 Proxy Level: 3 Meeting ID: 642395 Votable Vote Li�g Policy: Taft-Hartley Baliot count: 1 Proponent Proposal Mgmt Rec ISS Rec Policy Rec Instruction � Elect Director John M. Cassaday Mgmt Yes For For For For ? Elect Director Manuel A. Fernandez Mgmt Yes For For For For >ha�es on loan data only provided for a se%ct g�oup of custodians. Ask your Account Manager if you have any questions. ❑a.�,o 1 .,F � �te Summary Report ate range covered: 10/O1/2010 to 12/31/2010 cation(s): ICC Capital stitution Account(s): Palm Beach Gardens Police Fund Elect Director Hans-joachim Koerber Eled Director )ackie M. Ward Amend Qualified Employee Stock Purchase Plan Ratify Auditors �ccounts and Shares nstitutional Account Detail (IA Name, IA Number) 'alm Beach Gardens Police Fund, unassigned :ker Meeting Date Country �rT 16-Nov-10 USA �'��..�*� An tv15Q 8rand Mgmt Yes For For For For Mgmt Yes For For For For Mgmt Yes For For For For Mgmt Yes For For Against Against Custodian Account 450079100 Microsoft Corporation Ballot Status Confirmed Totals: Available 3,300 3,300 Voted 3,300 3,300 Security ID Meeting Type Record Date Shares Voted Shares Instructed Shares Available Shares on Loan 594918104 Annual 03-Sep-10 7,400 7,400 7,400 0 CUSIP: 594918104 ISIN: U55949181045 ting Policy: Taft-Hartley Ballot Count: 1 1 Elect Director Steven A. Ballmer Z Elect Director Dina Dublon 3 Elect Director William H. Gates III 4 Elect Director Raymond V. Gilmartin 5 Eled Director Reed Hastings 5 Elect Director Maria M. Klawe 7 Eled Director David F. Marquardt B Elect Diredor Charles H. Noski 3 Elect Director Helmut Panke 10 Ratify Auditors 11 Amend Bylaws to Establish a Board Committee on Environmental Sustainabiliry �ccounts and Shares rstitutional Account Detail (IA Name, IA Number) 'alm Beach Gardens Police Fund, unassigned SEDOL: 2588173 Votable Proponent Proposal Mgmt Yes Mgmt Yes Mgmt Yes Mgmt Yes Mgmt Yes Mgmt Yes Mgmt Yes Mgmt Yes Mgmt Yes Mamt Yes SIT Yes Custodian Account 450079100 Proxy Level: 2 Mgmt Rec ISS Rec For For For For For For For For For For For For For For For For For For For For Against Against ]DS Uniphase Corporation Ballot Status Confirmed Totals Policy Rec For For Against For For For Against For For Against For Available 7,400 7,400 Meeting ID: 602659 Vote Instruction For For Against For For For Against For For Against For Voted 7,400 7,400 :Y.er Meeting Date Country Security ID Meeting Type Record Date Shares Voted Shares Instructed Shares Available Shares on Loan Shares on loan data only p�ovided for a se%d g�oup of custodians. Ask you� Account Manager if you have any questions. p�n� + nf n ote Summary Report ate range covered: 10/01/2010 to 12/31/2010 cation(s): ICC Capital stitution Account(s): Palm Beach Gardens Police Fund �SU 30-Nov-10 USA 4661Z]507 Annual CUSIP: 46612)507 ISIN: U546612J5074 tiag PoGcy: Taft-Hartley Ballot Count: 1 1.1 Elect Director Martin A. Kaplan ?.2 Elect Director Kevin J. Kennedy 2 Amend Omnibus Stock Pian 3 Ratify Auditors ac�ounts and Shares nstitutional Account Detail (IA Name, IA Number) 'alm Beach Gardens Police Fund, unassigned :ker 04-Oct-10 SEDOL: B1G2LX6 Votable Proponent Proposal Mgmt Yes Mgmt Yes Mgmt Yes Mgmt Yes Custodian Account 450079100 6,400 Proxy Level: 3 Mgmt Rec ISS Rec For For For For For For For For ����� An �vtSCl Brand 6,40a 6,400 Meeting ID: 605411 Vote Policy Rec Instruction Withhold Withhold Withhold Withhold Against Against For For Ballot Status Confirmed Totals: Available 6,400 6,400 Voted 6,400 6,400 0 Micron Technology, Inc. Meeting Date Country Security ID Meeting Type Record Date Shares Voted Shares Instructed Shares Available Shares on Loan 16-Dec-10 USA 595112103 Annual 18-Od-10 15,100 15,100 15,100 0 CUSIP: 595112103 ISIN: U55951121038 SEDOL: 2588184 Proxy Level: 3 Meeting ID: 609608 Votable Vote t;ng Policy: Taft-Hartley satlot Count: 1 Proponent Proposal Mgmt Rec ISS Rec Policy Rec Instruction 1 Elect Director Steven R. Appleton Mgmt Yes For For Against Against ? Elect Director Teruaki Aoki Mgmt Yes For Against Against Against 3 Elect Director James W. Bagley Mgmt Yes For For For For � Elect Director Robert L. Bailey Mgmt Yes For For For For � Elect Director Mercedes Johnson Mgmt Yes For For For For 5 Elect Director Lawrence N. Mondry Mgmt Yes For Against Against Against 7 Elect Director Robert E. Switr Mgmt Yes For For For For 3 Amend Omnibus Stock Plan Mgmt Yes For For Against Against 3 Ratify Auditors Mgmt Yes For For Against Against lccounts and Shares nstitutional Account Detail (IA Name, IA Number) 'alm Beach Gardens Police Fund, unassigned '.AMETERS �t Status(es): All ballot statuses � Against Filter: Include all votes Custodian Account 450079100 Ballot Status Confirmed Totals: i ha�es on /oan data only p�ovided for a select group of custodians. Ask your Acmunt Manager if you have any questions. D-�r,o 1 nF n Available 15,100 15, i00 Voted 15,100 15,100 �� - I � i OQ0 . . . .. -. ,. - CAPITAL MANAGEMENT The Callan Periodic Tabie of Investment Returns Annual Returns for Key Indices (1991-2010) Ranked in Order of Performance �� 4{ ��, �� •� i �� � r• 1 1 1 � 1 1 1 .t 4�, 4i 1� el l. Il � �I i 1 1: af !' ( � M�..Russ � �.MSCI ` '.:•SCI SdP/CiH S6P/Citl SdP/Citi S&P/Gu�. MSCI RusseU . Russell BCA�r:; MSCI MSCI MSCI MSC� MSGI BCI�?u MSCI � Russei Z00� Emergmg "��FE 500 500 500 500 Emerz�ing 2000 2000 Emerging Emerginq Emerypny 6nerymg Eme.yv�g emc/ymg . 2000 Velu? Martcets Grovrth Grovrth Grov+th Grow!r� Mgttcets Value Value MNltets Market6 MarMets MarketS Markets Mtvkets � Growfh 2p.14 ;:, 74.8i% '.78 % 38.13°0 23.97°'0 36.52"0 42 16'�� 86.42% 22.83% ... 14.02'.. �?e' : 68.28% 25.�556 34.51Ye 3266V. 3p.78Y. Sy4°�� 7D.02% �� 2Y.OY% Russell Russell MSCI S8P/Citi S8P 500 S&P 5p(1 58P 50p S8P 5GG .. � BC Agg BC Am; MSCI �.� .. .... ' Russe!� � � qwsel 2000 � 2000 EAFE 500 �. , ..,��:: Emerging ;�: �0� . .�.. . .,.�... E . .:' .. 200Q u0., 200p . Grov.�h G�owth Growth Markais �.: �wth Value � Value Grovrth 51.19`�: 'f:..�'" -..'.57% 3.13% 37.58% 2296Ys �3,38X 2&6896 43.09h 11.83% 8.43°�� .A.DOlb �:3.51% 22,25y. 13.54°,�, 26.34% tt.t7°> -28,92% yt,47% 2l,86% ; � . .. �.. __ .-__.� ��Russe�. . MSCI '.�.�ssell ', S6P500 S&P/Giti $dP/Ci6 Russell P��SCI S&P/Citi '� S8P/Citi Russell RusseP FAq9e� MSCI $d,P/Citi Russell S8P/CPo Russell MSCI Rwse� �� 20Qa , Emergvg 2700 500 500 2000 rArE 500 � 500 2000 2000 Z000 EAFE 500 2000 500 2000 EAFF 2000 Nhrkete `.,�lue � Value Value Value Growtl� ', Value Value Value Value � Growth Vatue �8.04°:� it.�O�iG 23.77 0�. 1.32q 38.99�ie 12.00% 31.78% 20.00% 28.Z4% ; &08°,'� 2.a?" -1/.43% 4T.i5% 20.25% 5$2% 27.48% �� Y.13% !-93.79Ye 31.7a-��� �...�, --- . . . . . ._.....__ _ _..------._.__.. ...__ :__ _-----. . _...____.. ...___-_._ .- �-------- ilussell SRA:GRi Russell 5&P/CiU Russell RusseO $d,p/Ctti SB,p/Cili MSCI Russe��4 � MSCI qusse� q�s,gqp I$yp5pp SSP/Cftl Russell $3P/Citi $gp/C;� MSCI �� 2000 500 2000 . 500 2000 2000 500 500 EAFE 2000 Em EAFE 2000 2000 ; 500 2000 500 5p0 Ert�rgrt�p , Value � Value Vatue Growth Yalue Value Value M Vahie Value Growth Growth Grovm Markets � 41.70% �� 10.62% �.. 78.88% -0.64% 31.M'16 21.37X 29.98Ye 74.�°h 28.96°/ 3A2"�. -217yG -15.9�% �6.03% 18.33X ' LYI'K 20.81% 7.05°� .34.92% 37.5T'�:, 592D°k �� _.___...---._ . _ _ , _. . . . . . . . . _.. -- --- - -- ._.. _. . . -� - -- - . _ _.__..-- . . �,. S6PiClli � Russell � SSP/Citl Russall Russell Rus.sell Russell BC Agg Russell SSP 5U0 Hussell f�ssel MSCI 3dp/CRf Russell Russell 8C A9g '� SBP 500 Russ?II SBPiG�,;� 500 2000 500 2000 2000 2000 2000 ?000 2000 2000 EAFE 500 2000 2000 � 200G 500 Gvowth - G.owth Va1ue Value � Growth Value Vafue Value 38.97% 7.77°% 7&61% -1.64% 26.16% 16.19K � 2238°h 8,709� 2128% -9.11% -923% -20,�SX 38.59% 1b.77% 4.71% 18.37% 6.97% �lAO% 27.17% 75J0% . . . ._. _: . ._ _.._ .. ... . ... <. . . ._.. _ _ . ._. _..... _ . . . .. .. . _.._ _ . . . SdP 500 58P 500 Fussell �, Russeq Russefl RusseU Russell Russell SSP 500 MSCI $Sp/Citi SdP/1Cili . S8PK,1ti Russell RusseN � S3P 500 S8P 500 Russ=11 SSp 5pp $d,p 5p0 2000 ' 2000 � 2000 2000 2000 2000 EAFE 500 500 5pp 2000 2000 2000 Growth �� Value Growth Growth Growth Value Value Value Growth Growtn 30.47°k 7.62% 73.37% -t.82'h 25.T5% 11.28 0 12%% 1.23% 21A4% -14.i7% -71.�19: -20.65% 31.79Yo 14.31°!0 4.56Ye i5J9% 6.�9% -38.54°/ : 28.47°�i '. iS.OB96 . . .__ . . ..------ -- - �-- _ _.._ . . _._. _ . ._ . _ . . -- - �- -. . .. .. ___.. _ ._ _ . . _ _. __._ �_.....- - ------ - � S&P'Citi BC Agg ' SdP 500 Russell � 8C Agg MSCI BC q{�p Russell S&P/Citi S3P/Citi $8P 500 S6P SW S&P 500 SRp 500 Fussell Russell SSP/Citi SSP/Citi S8P/Citl SSP/Citl 500 �000 [AFE 2000 500 500 2000 2000 500 500 500 500 Value . Growth Value Growth Growth Growth Yalue Value Value Growth 22.58 % T.40 % � 1D.08 % -2.43 % � 18A6% 6.05"�� 9.64°�G -255 % 12.73% -22.08 % -11.�% -2210% 28.BB % 10.8894 4.15% 13.35 % 7.99% -39.�256 27.17% 15.05% BC Agg SdP/Citi � BC Agg 8C Agg MSCI MSG r:�SCI Russeil BC Agg Russell ;BP,'C�!i SEP'C�t S3P.Ciu S8P/Citl SB�P/CiH SdP/CiN RusseU e.�SC� Russeil n,15C1 500 . .,�.. Emerp�ng ,� . 2000 2000 50a 500 500 Sp0 SOp 5pp 2ppp FAFE 2000 �nFF Growth Markeu `/��'u< Growth Growth Growth Growth Growth Grovrth Grovrth Value 18.00% S.OBW � 9.75% -2.s2°" ':i.i;� � &03% i.��a . -6.y5°:. .p,g2y, -22.43°/ -1273% •23.59% 25.889e 6.13% 4.00% 11.01% -1.57% -43.38°.'� 20.58/ 7.75`�a ".'SCI MSCI S8P/CNi i MSCI MSCI c+!: nn : MSCI MSG Russell MSCI Russell BC Agg BC Agg BC Agg BC Agg Fiussell \ MSCI BC Agg � BC Agg Ens-E EAFE 50p . Emorgrcr9 Emerg�ng Einorqinq Emerging 2000 EAFE 2000 2000 Emerg�ng . � Growth I Markels Markets Markets MarkeLc Value Growth Value Markets � 7214% -12.18°0 1.88% ,�-7.325(0 �-5.21Y. 5.84% ^11.59b� �25,.i�S6 -1.49% -21.M% .1026% 4.10% 4.34°h 243% 4.33� -9.78°re -63.18°6 5.93% � 8.54X � S6P 500 measures the performance of large capitahzahon U.S. stocks. The S&P 500 is a market-value-weighted index of 500 srocks tha! are traded o,� tf,e NYSE A^�1EX and NAS� _ ! cg; rna'��; e.,r,h company's inHuence on the Index performance directly proportional to that company's market vafue. .................................................................................................................................................................................................................................................................................................................................................. � S&P/Citigroup 500 Growth and Q S&P/Citigroup 500 Value measure the performance of the growth and value styles of investing in large cap U.S. stocks. The indices are constructed by dividing the market capitalization of the S8P 500 Index into Growth and Value indices, using style "factors" to make the assignment. The Value index contains those S&P 500 securities with a greater-than-average value orientation, while the Growth index contains those securities with a greater-than-average growth orientation. The indices aze market-capitafization-weighted. The constituent securities are not mutualty exclusive. .................................................................................................................................................................................................................................................................................................................................................. O Russell 2000 measures the performance of smaH capitalization U.S. stocks. The Russell 2000 is a market-value-weighted i�dex of the 2.000 smallest stocks in the broad-market Russell 3000 Index. These securities are traded on the NVSE, AMEX and NASDAQ. .................................................................................................................................................................................................................................................................................................................................................. p Russell 2000 Value and O Russelt 2000 Growth measure the pertormance of the growth and value styles of investing in small cap U.S. stocks. The indices a�e constructed by dividing the market capitalization of the Russell 2000 Index into Growth and Value i�dices, using sty{e "factors" to make the assignment. The Value index contains those Russell 2��o securities with a greater-than-average value orientation, while the Growth index contains those Securities with a greater-than-average growth orientation, Securities in the Value index generally have lower price-to-book and price-earnings ratios than those in the Growth index. The +ndices are market-capitalizatlon-weighted. The constituent securi[ies are not mutually exclusive. .................................................................................................................................................................................................................................................................................................................................................. O MSCI EAFE is a Morgan Stanley Capital International Index that is designed to measure the perfortnance of the developed stock markets of Europe, Australasia and the Far East. .................................................................................................................................................................................................................................................................................................................................................. � MSCI Emerging Markets is a Morgan Stanley Capital International Index that is designed to measure the performance of equity markets in 21 emerging countries around the world. .................................................................................................................................................................................................................................................................................................................................................. O BC Agg is the Barclays Capital Aggregate Bond Index (formerly the Lehman Brothers Aggregate Bond Index). This index includes U.S. government, corporate and mortgage-backed securities with maturities of �at least one year. •, ot i Callan Assoc�ates Inc. Callan ASSOCiateS • Knowledge for Investors The Callan Periodic Table of Investment Returns 1991-2010 The Callan Periodic Table of Investment Returns con�reys that the case for diversificaiion across investment styles (growth vs. value), capitalization (large vs. small) and regions (U.S. vs. ir�ternational) is strong. While past performance is no indication of the future, consider the following observations: ............................................................................................................................................................................................................................................................................. � The Table highlights the uncertainty inherent in all capital markets. Rankings change every year. Also noteworthy is the difference between absolute and relative performance. For exampie, witness the variabiliry of returns for large cap growth when it ranked second from last for the six years from 2001 to 2006, or the variability in the ranking for fixed income over the last eight years while returns remained bound in a very narrow range. ............................................................................................... ............................................................................................................................................................................... O Stock markets around the world enjoyed a second year of rebound in 2010, building on the double-digit gains in 2009. In a reversal of the pattern in 2009, the U.S. stock market generated a return (15.1 %) superior to that of stocks in the developed markets overseas (7.8%). Emerging markets equities rose 19.2% a.nd, combined with the 79% gain in 2009, have managed to erase the 53.2% loss suffered in 2008. Large cap growth (15.1 %) tied the performance of value. All equity categories reported positive returns for the second ► u C 0 0 ❑' year in a row. .................................................................................................................................................................................................................................................................................... For the tenth year out of the last 12, small cap (?6.9%) outperformed large cap (15.1 %) stocks, and by a wide margin in 2010. Small cap growth (29.1 %) outperformed small cap value (24.5%) for the second year in a row, and led the rankings among all asset categories. ...................................................................................................................................................................................................................................................................................... Fixed income (6.5%) generated a higher return than the 5.9% reported in 2009, yet once again ranked last among all categories. The performance of fixed income actually surprised ��n the upside in 2010. At the start of the year, economic growth was expected to lead to inevitably higher interest rates, and weak perforrnance for fixed income. However, investor confidence in the economic recovery wavered, held back by uncertain economic news and the unfolding debt crisis in Europe. Interest rates declined through the first three quarters of the year, and bond returns soared. As confidence returned in the fourth quarter, equity markets jumped and bond yields moved up, reducing some of the gains in the fixed income inarket. While not depicted in the chart, high yield bonds notched another strong (15.1 %) return in 2010, after an incredible 58.2% gain in 2009. .................................................................................................................................................................................................................................................................................... The Table illustrates several sharpty distinct peri�ds for the capital markets over the past 20 years. First, note the unique experience of the 1995-1999 period, when large cap growth significantly outperformed all other asset classes and the U.S. stock market in general enjoyed one of its strongest five-year runs. .................................................................................................................................................................................................................................................................................... The subsequent three years (200�2002) saw ccrosecutive declines in large cap stocks for the first time since 1929-1932. The S&P 500 suffered its largest loss since 1974, declining 40% from the market peak in March 2000 through the end of 2002. ................................................................................................................................................................................................................................................................................... Stocks recorded five years of gains from 2003—?.007, led by particularly strong growth in emerging markets. Then the bottom fell out in 2008, and large cap stocks suffered the second-worst annual decline (-37%) since 1926. The strong performance of the S&P 500 in 2009 and 2010 has still not been enough to overcomEa the loss sustained in 2008. This analysis assumes that market indices are reasonable representations of the asset classes and depict the returns an investor could expect from exposure to these styles of investment. In fact, investment manager performance relative to the different asset class indices has varied widely across the asset classes during the past 20 years. m ��,,s��e�. ��. Founded in 1973, CaMan Associates Inc. is one of the I�gesc a,depende�cN owned irvestment consuiting firtns in the country. HeadquaRered in San Francisco� Calif.� the frm provides research, education, decision support and advice to a broad array of institutional irnestors through faur dis6nct ines of business: Fund Sponsor Consulting, Indeperxlent Adviser Group, Institutional Consuwng Cxoup and the Trust Advisory Group. Callan employs more U�an 150 people and maintains four regional offices located in Denver, Chicago, Atlanta and Fbrham PaHc, N.J. Corporata Hesdquarte►s San Francisco 415.974.5060 Reglonal Consutting OHices Atlanta 770.618.2140 Chicago 312.346.3536 Denver 303.861.1900 Florham Park 973.593.8050 Note: A printable copy of The Callan Periodic Table of Investment Retums is available on our website at www.callan.com. proposa! items Identification of Bidder Contact In#o Info Describe any changes in fhe structure of ; firm over the past five years, as wei! as y future changes currentiy planned or 1of16 Palm Beach Gardens Police Officers' Pension Fund Request For Proposal - Custodial Services Comerica Wealth 8� tastitutional Ma�agement f Fifth Thi�d lnstitutio�al Services 1Felecia Relief !Kimberly Kutlenios Assistant Vice President �Senior Client Consultant 411 W. Lafayette Bivd. MC 3462 '200 E. Robinso� Street Detroit. MI 48226 �Oriando, FL 32801 (3i3 } 222-9814 �(407) 999-3024 Publicly held, fuA-service financial service provider Estabtished in 1858. Incorporated as Fifth Third Bancorp in ,headquartered in Dailas. Texas. Established in 7849. 1974. 21,000 employees. Affiliates in Ohio, Kentucky, �Became known as Comerica in 1982. 9,000 employees. ;Indiana, Michigan, Ilfinois, Florida, Tennessee, West ! Locations in Michigan, Califomia, Texas, Florida and ' Virginia. Pennsyivania, Missouri, Georgia and NoRh Anzona. 'Carolina. Headquartered in Cincinnati, OH. iThree business units i- the Susiness Bank 60% �49% interest in Fifth Third Processing Solutions !- the Retai� Bank 25% � i o I- the Wealih & lnst+tutionai Management 15 /a I i �See booklet for subsidiaries and ailiance partners (pages 3 & 4) No organizational changes at the corporate level. - August 2010, David Skoinik became the Weaith �Management Executive Director-Business and Advisory Services. ,- January 2010, Sr. Vice President retired and was succeeded by Marc Scheuer. (Trust Services) - 2009 first quaRer, retirement of Executive Vice President ;succeeded by CuRis C. Fartnec (Wealth & Institutional ' Management} �- 2007 HeadquaRers relocated to Oallas, Texas. - 2006 Compieted sale of Munder Capital Management, �finatized at the end of 2007. KeyBank National AssociaLionNictory Capital Management, Inc. Mary Ann Coblentz, QPA Senior Relationship Manager KeyBank National Association 127 Pubic Square, 14th Floor Cleveland, OH 44114 (216)689-3681 +----- ------------- I Established in 1825. Holding compa�y became KeyCorp in 11985.15,000 employees. Located in Alaska, Cobrado, Idaho, Indiana, Kentucky, Maine, MiChigan, New York, �Ohio, Oregon, Utah, Vermont and Washington. Victory Capital Management, Inc. manages institutional trust and Icustodian services for KeyBank. i 1 •Acquisition of Franklin Financial Corporation and 'None isubsidiary Franklin National Bank in 2004. �•ACquisition of First National 8ankshares of Fbrida and � subsidiary First National Bank of Florida in 2005. � •Acquisition of R-G Financial Corporation and subsidiary R- �G Crown Sank in 2007. �.Acquisition of 9 branches in Georgia from First Fiorizon I National Corporation in 2008. '•Acquisition of First Charter Corporation in 20�8. •Advent tntemational acquired a 51°� interest in Fifth f iThird's processing business through a joint venture. Regions Morgan Keegan Trust Regions Morgan Keegan Trust 1511 North Westshore Blvd., Suite 850 Tampa, F� 33607 --- ---- -- ---- ---- — - -- ---- �_ __.. _ A member of the S&P 100. $t35 billion in assets. Approximately 28,000 associates. Provides traditional commercial, retail and mortgage banking services, as well as other financial services in the fields of investment banking, asset management, trusl, mutual funds, securities brokerage, mortgage and ins�rance. iPrimary business is providing traditional commercial, retail land mortgage banking services. ;General Banking: $1.1 billion loss ilnvestment Banking: $90 million income ilnsurance: $16 million income 'Merged with Tennessee based Union Planters Corp. in July �2004. Merged with AmSouth Bancorporation in November 2006. No material structural changes to the firm since and no changes are pending. Prepared by: The Law O�ces of Perry and Jensen. LLC January 2011 d) List ail key individuais responsibie far the account. inciude names, 2ities, t�ualifications, number of years with the company, number of years in ihe position, and totai number of years in ihe industry. e) List of public and privaYe secior retirement systems for which the individual who would be assigned to the account currently provides custody services, including system name and approximate value of the investment portfotio. Comerica Wealth � Institutionat Management Felecia Relief, Assistant Vice President Relationship Manager Daniel A. Berd, Vice President Relationship Manager. Patricia Mimms, Trust Malyst See Tab One for Page 5 - $ Greater Oriando Aviation Authority Lake Worih Police Relief Fund - Division 11 Pompano Beach Police 8 Fire Retirement System Vitlage of Palm Springs General & Pelice Palm Beach Ga�dens Police Officers' Pension Fund Request For Proposal - Custodiai Services Fifth Third Institutional Services Kimberiy Kutie�ios. Vice Preside�t and Senior Client Consultant. KeyBank National AssociationNictory Capitai Management, Inc. Nary Ann Coble�tz, QPA, Sertior Relationship Manager, �Iient Managemeni and Consulting Group. Jackie Kathrien, Client Administrator Regions Morga� Keegan T�ust Oava Smeltzer, CRSP - Vice President. Institutiona� �Services Relationship Manager ; Dawn Blaeuer, Senior Vice Presideni and Regional Institutional Custody Manager ` i Caerald Sheridan. Vice President, Trust Operations Unit j I Manager iJoey Luatlen, Settlements/Custody Team Manager I ' � r--- Kimberiy Kuile�ios currently services $575 million af public None listed due to privacy regulations but can provide a list ICity of Crestview General Employees' Retireme�t -$9 funds. of clients that are aware of your inient to catt them ff ; million selecteG as finalist. Witl provide key contact information at �City of Lake Mary Police Office�s' 8 Firefighters Retirement ; that time. � Ptan -$16 million � 'City oi Laudefiifl General Employees' -$13 million � � City of Palm Beach Gardens Firefighters' -$32 millio� � i Dunedin Firefighters Pension Ptan -$18 mitlion ! C+ty of Winter Haven Potice dfficers' -$17 miflion Alachua County Library District Retirement Plan -$14 ' million ii Parnsh Medical Center Pension Poan -$42 milfion i ;City of Betleview Police Pension Plan -$2 million � �Bapiist htospital of Pensacola Pension Plan -$57 miltion Lantana Firefighters Pension Plan -$19 million ; Perry Police Pension Plan -$4 million , ; Sebring Police Pension Plan -$6 million f� Provide the address, telephone number, ; Pompano Beach Police & Firefighters' Retirement System C+ty of Melboume name and title of person(s) who may be � Lake Worth Potice Relief and Pension Fund - Divisian 11 � Lauderhilt Firefighters conYacted for reference. Please include the 'Greater Oriando Aviation AuthoriTy I inception date for each account oHered as a' Monroe Caunty ERS i Provide a list of the other custody ' 2007 - Gained 791 Lost 22 :ounts gained and lost over the last three 2068 - Gained 60 / Lost 44 �rs. �2409 - Gained 1Q6 / Lost 88 I24id - Gained 481 lost 41 --- � -- ! 20Q7 - Gained 129 ! Lost 132 � 2008 - Gained 154 t Lost 154 � 2009 - Gained 57 / Lost 93 I � 'None provided due to privacy regulations but if selected as finalist will provide references. City of Belleview Police Pension ' City of Palm Beach Gardens Firefighters Pensfon j Parrish Medical Cenier Pension Plan i � 2007 - Gained 9 l Lost 46 Due to the system conversion in 2007, as a result of the ; 2408 - Gained 20 J Lost 34 merger between Regions Bank and AmSouth Bank, at this � 20d9 - Gained 4/ Lost 23 time the data is not available for the entire Trust Division. � iThe details below are representative only of the relationshir � management team. • Lost Clients: 1 � Gained Clients: 4 i Prepared by: 2 of 16 The law Offices of Perry and Jensen, LLC January 2011 Paim Beach Gardens Palice Officers' Pensian Fund Request For Proposat - Custodiat Services Request fo� proposal items �omerica Wealth 8� Institutionat Management Fifth Third Institutional Services KeyBank Nationai Associatior►Nictory Capital Regions Morgan Keegan Trust Mana ement, Inc. hj Descriptio� of the bidder's understsnding •Coordination with prior custodian Safekeeping Fund assets segregated by money manager. Collect al1 income and divldends, settles ali securities •Safekeeping of Ait Fund Assets of the work to be performed. •Collect and credit interest, dividends, proceeds of SeKie trade, collect divide�ds and income and sweep purchases and sales as directed by the investment �Trade Clearance and Settlement securities a�d aIt other monies. excess cash into a money market mutual fund. Provide manager, manages corporale actions and administers the •Execution of Oirected Mutual Fund Trades •Nold assets in the name of the 7rust. proxy notification and other corporate action and class assets in accordance with the Plan. •Securities Pricing •Investments, reinvestments, payments, saies and other action communication. Can provide monthty pensio� •CorporateAction Notification and Processing changes shall be made only upon direciion of fhe payment services a�d invoice processing. Provide monthly •Trusiee or Custody services •Securities ti2igation Claims Processing and Caltection investment Manager or Trustees. custody reports as well as intemet-based access. •Financiai reporting (irtterim statements and certified •Proxy Notification •Receive all dividends, interest and other income on artnual stateme�ts} •Principal & Income Collections investment securities. •Pertortnance measurement •Cash Receipts & Disbursements •Provide tnvestment Manager or Trvstees atl proxy •Intemet access through KeyLink •Cash Management requests, notices of shareholder meetings. W i!t nat vote . Benefit payment services for retirees of the Plan •Monthly and Mnual Trade Date Accounting Statements upo� any stocks, bonds or oiher securities or exercise any • internet access for beneit payments through .tnternet Access proxies unless materials are delivered to Comerica by VictoryConnect Benefit System •Adhoc Reporting Trustees with written instructions. •Potential 2o perform pension distributions and tax •Responsible for filing all class actio� secu�Ges claims. -Annuaf Wst certification repotting •Provide separate periodic report to 9oard with status of -Paying agent services independent of trust and custody claims. -Automated data interface for benefit payments •Assist any service providers with year-e�d repoRs. -Issuance of 1Q99 Forms •Will provide monthly and year-e�d custodial reports. -Custody services for all asset types •Can provide benefit payment services, mon2hly checks o� electronic #und transfers to retired participants. i) Relationship, if any, !o ICC Capital Comerica's trusUcustody clients may use the referenced They have the ability to work with any ma�ey manager or Working affiliaiion with investment management firms None Management. Inc., RhumbLine Advisers, companies as investment managers or consultants. mutuaf fund company. They make no restrictions on only listed. A number of existing custody relationships alse hofd Dreyfus, Oppenheimer or Vanguard. working with ceRain ones. the mutual funds as assets in their custody accounts. These mutuat funds were purchased at the direction of these custody clients. j) Provide a copy of the certification Only hold securities, mutual funds and other investments in Certificate provided (Exhibit A} 4/3/2002 As Trust Company, not required to qualify as a QPD Regions is a Florida Qualified Deposifory. shawing whether the bidder is a Florida institutional 7rust Dept, no certificate as a QPD has been §280.03{3) FS Ptease see Exhibit A for a copy of the cert;fication Qualiiied Pubtic Depository. sought. k} If selected as Custadian, the bidder witl Executed Swom Stalement provided. Will comply Will compty Execufed. be required to execute a swom statement Please see Exhi@it S regarding public entiry crimes. Prepared by: 3 of �6 The taw O�ces of Perry and Jensen, LLC January 2Q11 Palm Beach Gardens Police Officers' Pension Fund Requesi For Proposal - Custodial Services Request for proposal items Comerica Weaith 8� Institutional Management Fifth Third Institutio�al Services ; KeyBank National AssociationNictory Capitali Regions Morgan Keegan Trust , Management, Inc. , I) Oisclose any and ail iitigation involving the Limited to Instituiionaf Trust Services, two currenl litigation Often invoived in iiiigation Quring the normai course of Often involved in iitigaiion during the normal course of Regions and its affiliates are subject to litigation and claims bidder and exptain the nature of 2he matters invoiving the securities Iending program. The � business. Addit+onal information may be obtained from business. Currentfy not invoived in any litigation that wouid I arising in ihe ord+nary course of business. Punitive litigation. ;action is pending in Federai District Court for the Eastern I most recent annual repoA filing on Form 10-iC for fisca! year hinder from fu�lling any contractual obtigations to their idamages are routinely claimed in these cases �District ot Michigart. Comenca denies any �iability. iending 12131109. ctients. In p�or years, litigation that contained allegations of breach j iof fiduciary duty or other invesiment-related matters. They ; i have been resolved through mediation, settlement or ; I resolution by a court or heanng officer. � i � i � i I I i -`---- -----�------ - ---}- �--__--�--------. _.....----...._. �.-.-.__..._--------._._.-._------�----- m) Provide a sample report. See Exhibit I iSee Exhibit 8 See Exhibit 1 Provided � I j I Please see Exhibif C � i I !I. ReQuired Duties No section in book Agrees to all required duties and explains each. �Agrees to all required duties and explains each. ;Agrees to comply with a(I requirements ISee pages 5-8 of the proposal �See pages 6-11 of proposal i � III. Fiduciary Questions a) Describe in detail any inierest, 12b-1 None � Does receive in some cases 12b-1 and other compensation Not applicabie. May receive revenue sharing from the money maricet fees, sub trans-agency fees, commissions, � from mutua! funds that might be proposed. Ftas !he ability ; fund(s) and mutuaf {unds utilized by the Pension Fund_ other compensation, or revenue sharing ' to utilize funds that pay no form of revenue sharing. Can i2evenue sharing varies per money market fund and ranges received by your firm or employees of your � uiilize non-revenue sharing funds and charge fees direcily. : ifrom 8 to 10 basis points. firtn from any investment provider, broker. '; or other product offered to the Pension � ! I I 12b-1 fees lrom any mutual fund will be rebated back to the Fund. � � � Fund. i i i ; I - ---- �- -- �--- -' ------- ---- - � ---` - ---7 �------_ ..- t �-- b) Provide details for any economic benefit � None �Not applicable. I None i None derived by your firrn, its employees, andlor ' � i any affiliated or reiated entity from any � � I investment entities, intermediaries or service providers currenfly involved with the j i Pension Fund, or any that would become � : : i involved with the Pension Fund as part of ; the proposal. , , � i i ; Prepared by: The Law Offices of Perry and Jensen, LLC 4 of 16 January 2011 for proposal items Comerica Wealth 8lnstitutional Management Siate your privacy policy with regard to I it is the poiicy of Comerica to foilow the Gra aring client or account information with a IBtiley Act and the Fair Credit Reporting Rct. rd paRy. I full Sta2ement of Poiicy Two pages 10 - 11 Palm Beach Gardens Police Offrcers' Pension Fund Requesi For Proposai - Custodial Services Fifth Third Institutional Services KeyBank Nationat Association�ctory Capital Management, Inc. in processing applications or managing accounts: •Protecting the integrity and security of records inciuding prevention of fraud a�d unauthorized transaciions: •RepoRing to consumer reporting agencies; •Complying with federal, state, or Iocal {aws, n,les and other applicable iegal requirements; •Martceting of ba�k products or services by companies with � �which there are joint mariceting agreements. I i Require third parties treat and mairtain the privacy of j i infortnaYio� with same degree ot ditigence and atte�tion as ; is required by Fifth Third Bank. Detai� your firm's policies, procedures, � Security Features include: a encryption, and technical measures to I•FirewallslDMZ nehvork segments �t unauthorized access or alteration, I�timeout features theft. misuse, or physica! damage to •Credential expiration features are, software, communications �•Password protected features Iimiting signon attempts �cs, and data. •Reporting and audi# trail features for administering user security i •Security Risk analysis •Unique 10 and Pin number assigned to each approved i user. Comptete ouUine of procedures provided in SAS70 report Code oi Ethics manuai addressing policies regarding privacy and co�dentiatity of client +nformation. Appiies to entire Key family of companies. Alt employees required to review Code of Ethics manua! annuatly and provide Chief Compiiance Officer ("CCO"} with written certification. CCO entnisted with day-to-day aversight of compliance. i •To gain access to infortnation, Data Security Request •Key FirewaU - firewalls that form a security trarrier Farm must be submitted and be approved by an Assistant �behveen the intemei and Key's intemal systems. Check Vice President or higher. users' protocol to prevent access by unauthorized means •Access to systems and data is granted on a need to know such as TELNE7 and FTP. All activity for quick basis and ass+gnment of access is monitored pursuant to identification of suspicious activity. detailed procedures and standards. •Encryption - Secured Socket Layers (SSL) for data •Once access is granted, the security managemenT system Vansmission security. restricts access to computing resources. The security �•KeyLi�k Security - inquiry system only. Ooes not aliow management system has password integrity parameters in �online updatiag or trade request submissions. place with strong password restrictions. •A series of audit reports are generated to identify unauthorized behavior. Reports are reviewed by I�formation Security Department. ! FuAher securities are �--Physical Security Administration ;—Logical Security ;—Program Change Contro( �--On-line Systems Contro! Specifics are provided on page 10. Regions Morgan Keega� Trust Regions witl not sell or share customer infortnation o� cvstomer lists to outs+de marketers or with any non- affiliated person, company, or organization ezcept in IegaEty permiYted circumstances. I � 7rust Online is a secure website requiring 128 b+i SSL s i encryption. A unique user ID is establ+shed for each user and stringent password requirements. User access is audited quarterly to ensure only authorized users have :access to the site •LogontPassword Validation - Controlled by individuat j logon IQ's. Given specific logon ID that is maintained by Operations Support. I•PfN Number - Each user is assigned a PIN for � identification purposes. �•Audit Trails - Maintains an audit trial that tracks all ctient � activity. Retained for hvo years and then archived. I•Security Audits - External and internal penetration testing done annually. Systems routinely reviewed by both intemal and externat auditors. Various moniYaring systems to detect suspicious and fraudulent activity inc�uding hacking. Thirci party extemal mo�itoring includes posture assessments. The Tnsst Accounting System, AddVantage, is a restricted website accessible o�ty by authorized users inside Regions network. ; See Exhibit O for lnformation regarding their Webmail 'system. Prepared by: The Law Offices of Perty and Jensen, LLC 5of16 January 2011 proposal items Comerica Wealth 8 Institutional Management e) Describe your company's system back- Formal disaster recovery plan which is a federally regulated up, security and disaster recovery requirement which is reviewed annually. Data is backed up procedures. Are files arohived and stored at � daily and sent offsite. Second recovery service provider to an off-site location? It so, what is the provide workspace for recovery. Files can be recalled withi location? Have procedures been tested? four hours "rf needed. Department level tests are conducted When did you last perform a full-scale 'throughout the year. l.ast tested a�d approved March 24, disaster recovery test? 2010. Test now underway for current year. Palm Beach Gardens Police Officers' Pension Fund Request For Proposal - Custodial Services Fifth Third Institutional Services Data center equipped with an uninterruptible power system to protect from spikes and brownouts. Fitted with battery back-up system to allow data center function. Alternate rt Data Center for operation. Critical system functionality could be brought back online within 24 hours. Backups performed 6 nights a week. All backup files stored in an offsite data storage vault. The disaster recovery system is � tested 4 times per year and annually. Back up facility can ; be activated within 24 hours. Describe any other quality control , Intemal review and reconciliation procedures as well as Internal audit program reviewed by Audit Committee of the stems in place at your firm. Iquality checks, edit checks, reasonability checks and Board of Directors of the Bank. Separate comprehensive �validations in place for manual and automatic fees to online risk management and compliance programs. Risk isystem. managers assigned to each affiliate bank, region, division ' � and line of business unit of the Bank. Deloitte & Touche, � �LLP is the extemal auditor. � KeyBank National AssociationNictory Capital I Management, Inc. �! Disaster recovery contracted with IBM's Business Recovery Services, Inc. Plan includes attemate hqt sites situated in offsite locations several miles from each individual office, equipped with PCs and standard a�ce equipment. All critical system applications Can be accessed from hot sites. Hot-tests procedures semi-annually to simulate real situations. Overall results exceptional. Uninterruptable Power System supports operations. No incidents within past 10+ years. Test and contingency plans in place and lested at various times throughout the year. Annual full-shift testing last completed June 9, 2010. Additional testing procedures outlined on page 14. IControl and Compliance Assessment Process to ensure �compliance to laws and regulations. Annual Fiduciary ISAS70 testing of the Trust Department by Ernst 8 Young, I LLC. i � Attach a copy of the bonding and/ or TCarry insurance with limits standard to the industry. Proof i Limits up to $75 million. Financial Institution Bond covering Blended Financial Institution Policy $100 million uciary liability insurance maintained by of insurance provided upon contract acceptance. - No copy ' criminal activities and employee dishonesty, as well as Additional Bond Coverage $25 million ur firm, if any. provided � Electro�ic & Computer Crime insurance each limited to $25 I � million. - No copy provided. I i Regions Morgan Keegan Trust IThe RMK Trust accounting system, AddVantage is backed ; up every day by 5ungard, their application provider. 'Copies of the backups are taken off-site. Disaster recover � procedures are tested annuaily at an altemative site which is undisclosed due to security procedures. RMK Trust Operations and Technology have a full disaster recovery program documented and tested every quarter. The prvicedures allow them to be up and running within 24 hours of a disaster. Monthly Statements, automatic generation of exception reports by the AddVantage System, daily accaunt review b the local Relationship Manager and Custody Services Group, internal auditing, as well as extensive extemal auditing. Errors & Omission XL Specialty $25 million Houston Casualty $25 million Fidelity Bondi�g XL Specialty $25 million Arch/PIA/CNA $25 million x$25 million primary Travelers $25 mi�fion x $50 million Lloyd's $25 million x $75 million ACE/Chubb $25 million x $100 million see Exhibit E for a copv of the insurance Prepared by: 6 of 16 The Law Offices of Perry and Jensen, LLC January 2011 for proposal items ✓. Fees ) Provide a complete schedule that detaits II the fees associated with your program, icluding any conversion fees, expenses. nd fees for additional services. Proposals hould quote fees on an annual basis. b} Fees should be inclusive. No other charges wiil be allowed unless spe�cally authorized by the Trustees. List any or all possibfe fees or expenses by your firm associated with termination of the accouni as well. c) Please disciose any and atl additional compensatian of any kind and other economic value paid to the firm or individuats associated with the activities of the account. d} AEI fees must be guaranteed for a minimum of three years. Comerica Wealth 8� Institutional Management Patm Beach Gardens Potice O�cers' Pensio� Fund Request For Proposai - Custodiat Services Fifth Thi�d Institutional5ervices •Fiduciary Fee InGuded �•Matket Value -up to 525 million-4 bps .Responsibility Fees •Above $25 miilio�-3 bps Account fee $500 annually per account •Minimum annual fee $5,OOQ Maricet Value Fee �AII inclusive domestic fee includes account maintenance, Separatety held securities are under $10Q MM: iasset maintenance, transactions of domestic securities. 5.0 basis points on first $50 Mitlion Imonthly income transfe�s, income colfectian, corporate 2.5 basis points on next $50 Miqion � action noGfication, onfine repoR+ng. Minimum annual responsibiliry fee of $6,0�0 j•Intemational Custody Fee - Please see Exhibit D page 2 Account and market value fees apply to ;of Book minimum •Special Asset Fees i•Domestic and Intemational Custody Fee schedules Commingled, Mutual Funds, other bank cotiective �-Assume dqmestic market vaiue of $22.5 million and nq funds, foreign securities, private ptacements or intemational marlcet value unique assets wlth extensive reponing -Guaranteed for three years from execution of agreement requirements. $t004 each annuatly -ASSUme usage of any or combination of Money Market I•Activity Fees Funds sup�rted by Fifth Third Global Securities Services ` BuylSetllMaturity Included for ovemighi liquidity purposes Intemet Access Included I-Assume that any foreig� exchange aciivity will be I Wire Transfer Out $17 per wire �executed through Fifth Third's Intemationa( Dept. � Checks (Lump Sum}' $24 per check (plus I Does not include "enhanced reporting" services which ' postage} I require an additional fee. ; Pension Payments' quoted separately �-SuCject to review and discussiort should the assumpfions �•Payment Services I used to devefap this schedule significantly change � Periodic Payments $2.0� per payment {plus postage) � � Lump Sum Payments $20 per payment {plus i postage) � Third Party deductions $100 per {per year) � • CQ-ROM Pension Registers $'t00 per month � Manual New Retiree Setup $35 per new retireee � �' ------ — -----�---_..._ Fee schedule is inclusive. Do not charge tertnination fee. All inclusive ; No costs associated with conversion. i !– - -- ------ -- None. There is a one-time sales fee paid to a Comerica tVot applicable. :employee who credits the relationship. KeyBank Nationat AssociatianNictory Capital Manaaement. inc. 2.Qbps on first $50 million af domestic market vaiue 1.5bps on next $50 miltion of domestic market vatue 1.Obps on next $1Q4 milfion of domestic market value Asset Based Charges - Fund Managed Portfolios 1.Qbps on a!I assets Accounting and Reparting Charges -Active Managed US PortfolioslAccounts (per account per year} $500.00 -Fund Managed Portfolios (per account per year} $250.00 �Transaction Fees �-Atl Baok Entry Domestic Assets (per buylsell) $8.00 �-Fund Purchase/Redsmption (per transaction) $t2.00 I� Domestic Wire Transier (each} $10.00 -Check Oisbursement from Trust {per check) $10.00 -Stop Payments (each) $14.04 �Misceifaneous Fees I-Account Set Up - Waived I-Account Cfosing - Waived �-KeyLink web access - No charge �-Custom Programrning - $65.00 per hour Fees quoted vaiid for 90 days trom 12/6/1 d Regions Morgan i(eegan Trust 4.25 bps (.0425°�) Minimum annuai fee o# $5.Od4 Up to 5 separate accounts are incfuded Additional accounts wiA be charged a$350 annual fes. -- — -- _ __ -------_------- ; No termination fee associated with elosing the Account All inclusive i Not applicable. Fees are guaranteed for three years. �ees are guara�teed for three years, except gtobal custody Fees are guaranteed fo� three years. ;fees due to circumstances in intlividual markets. I ' Reserves lhe �ght to amend the fees fram those quoted �during the guarantee period should the actuaf business ;awarded differ significantty ta the infortnation on which ior000sal was based. 'S"L.UV p6r AGH tliStnbUtf6n $3.00 per physical check distribution i ;All fees will be guaranteed for 3 years. Prepared by: The law Offices of Perry and Jensen, lLC 7 of 16 January 2011 Palm Beach Gardens Police Officers' Pension Fund Request For Proposal - Custodial Services IKequest for proposal items Comerica Weaith � Institutional Management � Fifth 7hird Institutional Services ; KeyBank National AssociationNictory Capital V. Timing ' � Management, Inc. � Regions Morgan Keegan Trust The monthly custodial repoR should be Available online 1-2 business days following month end. Hard copy reports mailed no later than the 3rd business All reports are available monthl delivered within 10 days after the end of '� Hardcopy reports 3-5 business days following month end. day of the month are available online by 8:00 am EST on and/or annually and include accruedancome as paR of tlhe Idet iled Irst ng of atl aIS etsaand transaetio sr Aateoccurred each month. The Pension Fund has a �the 1st business day of each month. Trade date reports �main reporting. � September 30 fiscal year end date. red Comments: 8of16 are delivered within 10 days after the end of the month. ' Chart of calendar days for hardcopy and Ke Link dunng the report penod, will be available via Trust On-line Y i by the 3rd business day of the month with hard copies i ava+lability on page 20. being mailed by the 6th business day, contingent upon all � �' iOnline intemet access system available 24 hours a day andlassets being priced. f reflects data as of the close of business of the previous I i !business day. I Provided ;No Provided i Provided ---- ; note of ability to purchase Mutual Funds Can buy and hold MuYual Funds -- - ----- --- ---- Can truy and hold Mutua! Funds i i - � -- - ---- -- --- iCan buy and hold Mutual Funds i i Prepared by: The Law Offices of Perry and Jenaen, LLC January 2011 Request for proposal items I:ldentiticalion af Bidder a) Contact Info Palm Beach Gardens Police Officers' Pension Fund Request For Proposal - Custodial Services Salem Trust Company Salem Trust Company 455 Fainvay Drive, Suite 103 Deefield Beach, FL 33441 i(87�) 382-5268 I Kara Humphrey I200 South Orange Avenue ;O�lando, FL 32801 !�(407) 237-4512 SunTrust General Info A Florida chartered bank is one of five subsidiaries of parent holding ITotal assets of $174J billion as of 9/30/2010. 28,000 employees. company US Fiduciary Services, Inc. 6 senior officers suppoRed by 5I Diversified financial, banking and investment services. Traded on �administrative assistants, 6 employees in ihe area of trust operations INYSE. Operate under four business segments: 'and staff of over 40Q in operations support. � 196 Florida municipal clients Affiliated companies: GreatBanc Trust Company Pennant Management, Inc. Waretech, Inc. USF Affiliate Services, Inc. Custody services provides 80% of income. c) Describe any changes in the structure of US Fiduciary Services, Inc. - the parent company of Salem Trust - the firm over the past five years, as well as i became 100% employee-owned in April 2009. any future changes currently planned or � scheduled. ITransitioned to new trust accounting system in June 2008. i-Wealth & Investment Management Services !-Retail and Commercial �-Wholesale Banking � -Mortgage I Subsidiaries: -Premium Assignment Corp -RidgeWorth Capital Management, Inc. I-STI Credit Corporation -SunTrust Financial Corporatipn �-SunTrust BankCard, NA ;-SunTrust Robinson Humphrey �-SunTrust Insurance Company '-SunTrust I�temational Services j-SunTrust Qnline, Inc. ;-SunTrust Personal Loans, Inc. I-SunTrust Investment Securities, Inc. ;-SunTrust Service Corporation None -- — _ — ----- Wells Fargo Institutional Retirement & Trust � Patrick Laratta, Vice President 11050 Lake Underhill Rd - 1st Fioor ; Orlando, Fl 32825 Donna Balaguer, Relationship Manager 1 DD S Ashtey Drive - 9ih Floor Tampa, FL 33602 Established in 1852. Publicly held bank holding company. Fortune 100 company. 281,000 employees. i ,-Wholesale Banking I-Wealth Management, Brokerage and Retirement Services -Community Banking Oversees more than 6,600 defined contribution for 3 milHon participants and over 1,200 defined benefit plans for more than .6 million pensioners. Wealth, Brokerage 8 Retirement contributes approximately 12% annually to the income of Wells Fargo. -- - -- -•— - , Four acquisitions over the past several years !-Portions of the custody business of JPMorgan/Chase (NY and �Texas) I�-CustodylRetirement Services Harcis Bank (Chicago) -Strong Funds •Custody/Retirement Services LaSalle Sank {Chicago) �I Management of the corporation does not make pubiic announcement , about an acquisition opportunity until a definitive agreement has , been signed. Prepared by: 9 of 16 The Law Offices of Perry and Janse�, LLC Januarv 2011 Palm Beach Gardens Police O�cers' Pension Fund Request For Proposal - Custodial Services Request for proposal items Salem Trust Company d) list all key individuals responsible for the Karen M. Russo, Senior Vice President & Regional Manager account. Include names, titles, qualifications, number of years with the �Bradiey K. Rinsem, President, CEO 8 COO. company, number of years in the position, and total number of years in the industry. e) List of public and private sector i See page 5 for Public client list. retirement systems for which the individual ! who would be assigned to the account currently provides custody services, I including system name and approximate i value of the investment portfolio. i � Provide the address, telephone number, ISarasota General Employees' Pension Plan me and title of person(s) who may be Sarasota Police and Firefighters' Pension Plan ntacted for reference. Please include the Vero Beach Police Pension Plan :eption date for each account offered as a Pompano Beach General Employees' Retirement System Provide a list of the oiher custody 12007 - Lost 3 � ;ounts gained and lost over the last three I2010 - Gained 77 iB. � SunTrust iKara Humphrey, Client Manager. i 'Kevin Withereil, Account Specialist. Welis Fargo Institutional Retirement 8 Trust Donna C. Balaguer, Vice President and Relationship Manager. India Jones, Client Service Consultant. I I � I I I �- -- - --- ---- -- �--- -- _ - _ .- - - - — _ _ . -- Policy to only release client information with the consent of their I No list provided ! clients. j I City of Largo City af Ptantation , City of Bradenton ' Oniy listed one iormer c(ient with cantact information. ;City of Tampa General Employees Retirement Fund i i None listed due to privacy concems. � , � 120Q9 G ia ned 45 Lost 4 - ' 200$ Gained 25 Lost 4 �12007 Gained 41 Lost 6 Prepared by: 10 0( 16 The Law Offices of Perry and Jensen, LLC January 2011 Palm Beach Gardens Palice Officers' Pension Fund Request For Proposai - Custodial Services Reqaest for proposa! items Salem Trust Compa�y SunTrust We!!s Fa�go Institutianal Retirement & Trust h} Description of the biddefs undersfandi�g •Consoiidated Account WiEi compiy with all provisions of Sectioa If Understand the woric to be performed of the work to be perfamred. •Sub-Account{s) •Statement Format Seleci+on •Servi�g as Custodia� •On-tine Access •Providi�g accounting and statement processing •Security Trades •Providing access to o�line account portfolio services, account •Intema! Free Receipts & Delivenes statemenis •Monthly Benefit Payments •Providing payment and tax related reporting services if requested. •Invoice Payments (seAarate fee} •Checks DeposRed •Paydown Processing •Cash Management / Sweep Services •Domestic Wire Transiers •Proxy Voting ! Te�dering •Corporate Action Processing •Class Action Processing •Perfortnance Measurement •Quarteriy Death Search •Loan Distribution •Loan Setup •The Pennant Express •The Florida Express •The Pennant Paper •Meeting Participation •Lump Sum Payments •Pensioner Verification •Physical Receipts •Research & Additionat Reporting •Globai Wire Transfers •Extemaf Free Receipts & Deliveries i) Fielationship, if any, to ICC Capiiat Frequent inferactions with these firms. Usual and customary practices in processing directives of invesment Do not accept fees from any mutual fund company where Wells Management, tnc., RhumbLine Advisers, managers with listed managers. Fargo is acting only as Custodian. Drey(us. Oppenheimer or Vanguard. tYo revenue arrangements in a directed trede relationship. If selected as Custodian, wouid establish a directed trade retationsfiip with RhumbLine Advisers. j} Provide a copy of the ceR�cation As Trust Company, qualified as custodian. Provided certification in Appendix. Exempt from the QPD requirements under the exemption found in showing whether the bidder is a Florida See Exhibit A- State of Florida Charter Section 280.03{3xa) Florida Statutes. Qual�ed Public Depository. k) It setected as Cusiodian, the bidder wiA Will comply. Witl comply. Wilt compty. be required to execute a sworn statement regarding public entity crimes. Prepared by: t 1 of 16 The Law Offices of Perry artd Jensen, LLC January 2011 Paim Beach Gardens Pviice Officers' Pension Fund Request For Proposal - Custodiaf Services Request for proposal items Salem Trust Company SunTrust � Welts Fargo Institutional Retirement & Trust I} Disclose any and aA titigation invofving the�Nane Filings can be reviewed oniine at www.suntrust.com or www.sec.gov. Subject to pending acxi threatened fegal actions in the normai course bidder a�d exptain the nature of the ' of business. litigation. I � � � ` i I I I � I I I ------ ------ ___._ .. .- — - -- -- - ------------ - ------__----- ------- -- -----.— .....-- - - -- _. m rovide a sampie report. See Exhibit B and Exhibit C Trade Date Statement Guide provided. Did not prepare or provide i. Exhibit A(on discj iSBmpie Statements that capture atl transactions. i i I I � tl. Required Duties Agrees fo aIl required duties. Agrees to al( required duties. Agrees to all required duties III. Fiduciary Questions a) Describe in detail any interest, 12b-1 Receives administrative fee on ceRain money market Funds jNOne Only possible fee is trom the sweep vehicle chosen by the Fund. !f fees, sub trans-agency fees, commissions, currenily teceiving 1bp but may receive up to 25. � Ifhe �und setects one of the Wells Fargo money market mutual funds other compensation, or revenue sharing as the vehicle, fhey would receive a revenue share between 16 and received by your fiRn or employees of your I50 basis points. firm from any investme�t provider, broker, , I or other product offered to the Pens+on I i Fund. ! � I - — - -- -- -- - --------- --- ---- ---- - ----- ------ -- � b} Provide details for any economic benefit None � None � — derived b iNone. y your firm, its empioyees, andJor any affiliated or related e�tity from any � investment entities, intermediaries ar i ; service providers currently invofved with the � ' Pension Fund, or any that would become � , invalved with the Pension Fund as part of ; the proposal. i � � i I I � i Prepared by: 12 of 16 The Law O�ces of Perty and .le�sen, LLC January Zd11 praposal items c) State your privacy policy with regard to shari�g client or account information with a third party. Palm Beach Gardens Police O�cers' Pension Fund Request For Proposal - Custodial Services Salem Trust Company 7rust will disclose its ciients' personal information in very instances, including disclosures to nona�liated companies as ed by law, inciuding lhose who help 5alem service client Salem will nat share clients' nonpublic personal information with third parties for maricefing purposes. They will not setl client information. copy of their Privacy Policy is available upon request. SunTrust Wells Fargo Institutional Retirement 8 Trust •DO not seil, rent or trade any client information to other companies Information obtained through custodian relationship may not be •Safeguard information carefully and provide flexibility to dictate how shared with intemal affiliates for marketing purposes without the it may be used. customer's express consent. •Committed to protecting privacy. d) Detail your firm's policies, procedures, jAdoptio� and enforcement oi a comprehensive set of policies and ; Instituted an enterprise risk governance program managed on data encryption, and technical measures to �procedures focused on physicaf and data securify. Engaged auditor �consolidated basis. Policies and various risk management prevent unauthorized access or alteration. �to perform netwo�ic intrusion testing using both electronic and social processes designed to ident+fy, monitor and manage risk. fraud, theft, misuse, or physical damage to �engineering methodologies. hardware, software, communications Firewalls, routers, and other computer systems and software to networks, and data. For security reasons, will not publicly divulge specific measures I provide highest level of nelworic security and monitored continuously �undertaken to protect information. Will be happy to discuss policies land updated frequently. ; and procedures with the Board to address specific questions or i � concerns. Business continuity coordinators and continuity pla�ners ensure ongoing maintenance of recovery processes are peAormed. I , � For more infortnation, see Exhibit B to proposal. Key elements of Institutional Retirement 8 TrusYs security policy� •Management and staff roles and responsibilities •Asset and data classification •Personnel security •Physical and environmental security •Communications and operations management •Access control •Systems and project development and maintenance •Encryption requirements Their security policy is considered confidential and proprietary information which may not be shared in its entirety. Prepared by: 13 of 16 The Law O�ces of Perry and Jenaen, LLC January 2011 items Palm Beach Gardens Police Officers' Pension Fu�d Request For Proposal - Custodial Services Salem Trust Company Descnbe your company's system back- i•Files backed up to tape daify and stored in 6 o�ce locations security ar�d disaster recovery ;•PaRicipant in disaste� recovery ptan updated and tested annually. �cedures. Are fites archived and stored at Last testing was compieted in April 2009 for lllinois and September off-site location? (f so, what is the 2009 for Pennsylvania. ation? Have procedures been tested? •Disas2er recovery plart based on having multrple sites rn different ien did you last perform a fuli-scale locations. O�ces replicate one another iR technology and human aster recovery test7 resources for immediate disaster recovery. Describe any other quality control Perfarmance standards designed fo ensure highest quality of stems in place ai your firm. service. Monifored weekty andlor monthly. Attach a copy of the bonding and! or Bankers' Professional Liab+fiiy $5 mitlion uciary liability insurance maintained by !Financial Institution Bond $20 million ur firm, if any. i See page 12 far details. SunTrust Welis Fargo Institutional Reti�ement 8� Trust •Business Continuity Hot Site and Cold Site functionalities. Noc site facilities equipped ta Documented cnticai processes and recovery plans utilizing a i function for up to 6 weeks. Cold site contains hardware that could b � software application specific to buisness resumption planning. � placed i� serviCe if more than 6 weeks is needed for recovery. Coordinators and assigned individual Business planners ensure that i ongoing maintertance of recovery processes is pe�iormed. �Maintain: •Full time disaster recovery tocus •Data Backup and Disaster Recovery •Data Back-up and safekeeping Accounting Systems Vendor - SEI Systems •Risk assessment preventative measures Provide Services through: �•A continually refined plan ; Washington, DC •Pre-defined netwoi-k for ready subscnber co�necfivity to the ! Richmond, VA I recovery site i Chattanooga, TtV •Recovery site with comparable standtry compute� equipmertt �Atlanta, GA i•Recovery process based on proven strategies Orlando, FL �•Demonstrated results through extensive semi-annual testing •Regulatory compliance and proven solutions for audit requirements .Back Up artd Recovery Test+ng •Opportu�ity for client participation in recovery testing exercises iCompfeted recovery testing on October 10. 2010 �•Resioration of essential produci line within 48 hours of disaster �declaration f j i I Uses a variety of internal and extemal organizatio�s to vafidate or �Multiple system edits a�d exception reports are generated daily and fest that proper controls, including business continuity controls, are in during the month-end review process. place. j ! •Ensure pricing accuracy '•Reviewing pricing swings of 5-10% or more f•Use a price challenge process `•Quality control checks �•Daily review of disbusement transactions I•Internal control review See pages 15-1fi for more in depth review. Directors and Officers Liability $125 million �Bankers Professional Liability $125 miUion Financial Insitution Bond $175 million � Umbrella Liability $125 million �See appendix for other coverage. •Daily Accounting Checklist •Month-end Accounting Checklist •Exception Reports and Onli�e Transactio� Reviews •Accounting System Reporting See Proposal booklet for details Page 20-22 Financial fnstitutio� Bond $100 million �Professiona! Liability $100 million Prepared by: 74 of 16 The Law O�ces of Perryr a�d Je�sen, L!C January 2011 Provide a complete schedule that details the fees associated with your progtam, iuding any conversion lees, expenses, d fees for additional serv+ces. Proposals �uid quote fees on an annual basis. b) Fees shauld be inclusive. No other charges will be atlowed untess specifically authorized by the Trustees. List any or all possible fees or expenses by your firm associated with termination of the account as well. c} Piease disclose any and a!I additional ;ompensation of any kind and other sconomic value pa+d to the timt or ndividuais associated with the activities of he accouni. i) All fees must be guaranteed for a ninimum of three years. Palm Beach Gardens Palice Officers' Pension Fund Reques# For Proposa! - Custodial Services SaFem Trust Company Based on $41.122 m+tlion in assets, the weighted cost is 3.48 bps 4 basis points o� 1st $24 million 3 basis points on the next $30 million 2 basis points on ihe next $5d million � Provides for: � •Co�solidated AccounU 3 Sub-Accounts � •On-line Access •Security Trades •Invoice Payments � •Pay Down Processing •Cash Management Sweep Services •Domestic Wire iransfers •Proxy Voting(fendering •Corporate Actio� Processing �i •Quarterly Death Search •Special Circumstance Meeting Participation •Foreign Tax Claim Service !A' Ia carte Services: �•Lump Sum Paymeni $15.00 each � •Monthly Benefit Payme�ts $3.00 each I •Pensioner VeriTication Letter $5.00 each �•Physical Receipt of Security $25.40 each �•Research and Reporting $50.00 per hour �•Global Wire Transter 535.00 each �•E�ernal Free Receipts and Deliveries $5.00 each � •Additionai accou�ts 3500.00 each •Commission Recapture Based on Ievei of service •Securities lending Based on level of service �•Transition Management Based on teve! of service SunTrust Assum{ng $41,122,400 in assets, estimate annuaf fee 05% Tota! Market Vat�e of Domestic Assets •First $50,000,000 0.0596 per year •Next $50,000,000 0.63% per year •Over $100,040,000 O.Otqo per year Weiis Fargo Institutional Retirement & Trust or •7rustee/Cusfody Per M�um Fees -Domestic Administration �-Separately Managed PoRfolio 3bps $22,255.000 I-DTC Settlements (lncludes ADR's) $10bps � Global Custody will be quoted separately on account specifics and holdings. Retiree Benefit Payment Senice ACH $30 per payee per annum Periodic $36 per payee per annum I Rates include charges for iax calculations and withholding, tax � repoRing, postage and changes to periodic payments including �amount, amount withheld and address. I �Transaction Fees: $10 per security transaction Issue Maintenance Fee in addition to marlcet value: INon-Exchange Traded Assets I Extemal Common Trust Funds �Extemal Coltective Investment Funds $1500 per year per asset i $30 per trade I iMinimum Annual Fee 5�5,000 Termi�aiion Fee not to exceed $3,000 if terminated within the first three years of service. ' No other fees. , The F S hc eee dule included is al! inclusive. Pledge: � � In the event we fail to futtill our promise in a�y quarier, as determined: sofely by you in good faith, we will discount a percentage of that � !quarter's fee. None ; Will comply. 'Any additional compensation is described in the Float Disclosure ;attached to the Fee Schedute. ;SunTrust receives about 3.565 basis points of Float. : Guaranteed for minimum of 3 years. ! If assets fluctuate more than 70%. SunTrust reserves the right to review the fee guarantee. Guarantee based on information provided in the RFP and supporting ' information orovided. No Minimum Annual Fee Valid fpr 90 days from proposal date. 1—_ ' inciusive. Does not charge either a start up or a contracl termination �fee. Only charges associated with a relationship opening or closing ; relate to any out of pocket expenses they occur in transferring assets. I If WeUs Fargo is required to repeat or expand the scope of any !service due to inaccurate, incomplete, or unusuabie datafinformation �supplied by the Prospect or its authorized agents, an additional fee may be charged. Yes, all fees are guaranteed for three years Prepared by: 15 of 1fi The Law Offices of Perry and Jensen, LLC January 2011 Palm Beach Ga�dens Police Officers' Pension Fund Request For Proposat - Custodiat Services Prepa�ed by: 16 of 16 The law Offtces of Perry and Jensen, LLC January 2Q11 FINAL DOCUMENT RECEIVED 021511 PALM BEACH GARDENS POLICE OFFICERS' PENSION FUND A Pension Trust Fund of the City of Palm Beach Gardens, Florida Financial Statements and Accompanying Information For Years Ended September 30, 2010 and 2009 PALM BEACH GARDENS POLICE OFFICERS' PENSION FUND Contents Page Report of Independent Certified Public Accountants ........................................................ 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 Notesto Financial Statements .......................................................................................... 12 - 17 REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) Schedule of Funding Progress and Schedule of Contributions from Employer and Others ......................................................................... 18 Notes to Schedule of Funding Progress and Schedule of Contributions from the Employer andOthers ........................................................................................................................ 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 GovernmentAuditing Standards ...................................... 22 - 23 Report of Independent Certified Public Accountants 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, 2010 and 2009, 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 standards 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 the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material 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 we�l as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. As discussed in Note 1, the financial statements 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, 2010 and 2009, and the changes in its financial position for the years then ended in conformity with accounting standards generally accepted in the United States of America. 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, 2010 and 2009, 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 January 27, 2011 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. I f � / Orlando, Florida January 29, 2011 ��� � �' • / f�: MANAGEMENT'S DISCUSSION AND ANALYSIS 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, 2010 and 2009. 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" to the financial statements: • Schedule of Funding Progress • Schedule of Contributions from Employer and Others • Notes to the Schedule of Funding Progress and Schedule of Contributions from the Employer and Others The financial statements contained in the report are described below: The Statements of Plan Net Assets is a point-in-time snapshot of account balances at fiscal year-end. It reports the assets available for future payments to retirees and any current liabilities that are owed as of the statement date. The resulting Net Assets value (Assets — Liabilities = Net Assets) represents the value of assets held in trust for pension benefits. The Statements of Changes in Net Assets displays the effect of pension fund transactions that occurred during the fiscal year, where Additions — Deductions = Net Increase (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 from 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 additiona� levels of detail for select financial statement items (See Notes to Financial Statements on pages 12 to 17 of this report.) C! 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 Others (page 18) presents historical trend information regarding the value of total annual contributions required to be paid by the City and State and the actual performance of the City and State in meeting this requirement. • The Note to the Schedule of Funding Progress and Schedule of Contributions from the Employer and Others provide background information and explanatory detail to aid in understanding the required supplementary schedules. Financial highlights • The net assets of the Fund exceeded its liabilities at the close of the fiscal years ended September 30, 2010 and 2009, with $41,403,852 and $34,032,253 in net assets held in trust for pension benefits, respectively. • Net assets increased by $7,371,599 or 21.7 percent during 2010, primarily due to the current year's contributions and investment income. • Net assets increased by $5,688,180 or 20.1 percent during 2009, primarily due to the 2009 contributions and investment income. • The Fund's funding objective is to meet long-term benefit obligations. As of October 1, 2009, the date of the latest actuarial valuation, the funded ratio of the Fund was 56.2 percent. In general, this means that for every dollar of pension benefits due, the Fund has $0.562 of net assets available for payment. • Additions to plan net assets for the year ended September 30, 2010 were $8,687,765 which includes member, employer and state contributions of $5,171,643 and net income from investment activities totaling $3,516,122. • 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. • Deductions from plan net assets increased from $999,644 during 2009 to $1,316,166 in 2010 or about 31.7 percent. Most of the increase relates to increased benefit payments made in 2010 compared to 2009. 5 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 greater returns in 2010 compared to 2009. Net assets held in trust for pension benefits increased by $7,371,599 in 2010, compared to an increase of $5,688,180 in 2009. Since these net assets are used to meet ongoing benefit obligations to plan participants and their beneficiaries, 2010's greater returns have improved the Fund's funding status. Net Assets (Table 1) As of Se tember 30, 2010, 2009 and 2008 Increase Decrease 2010 to 2009 2009 to 2008 2010 2009 2008 $ % $ % Current and other $ 472,974 $ 1,681,551 $ 1,639,341 ($1,208,577) (71.9)% $ 42,210 2.6% assets Investments, at fair 40,972,732 32,390,151 26,733,103 8,582,581 26.5 5,657,048 21.2 value Total assets 41,445,706 34,071,702 28,372,444 7,374,004 21.6 5,699,258 20.1 Current liabilities 41,854 39,449 28,371 2,405 6.1 11,078 39.0 Net assets $41,403,852 $34,032,253 $28,344,073 $ 7,371,599 21.7% $5,688,180 20.1% 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 the funding status of the retirement Fund. During 2010, the Fund's investment portfolio returned gains of approximately 10.0 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, 2009, the Fund's actuarial value of liabilities exceeds its actuarial value of assets by $28.72 million, producing a funded ratio of 56.2 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. C 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 2010 and 2009, the assets of the Fund exceeded its current liabilities by $41,403,852 and $34,032,253 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 $8,687,765 for the year ended September 30, 2010. This was $1,999,941 more than the prior year primarily due to greater investment returns. The additions totaled $6,687,824 for the year ended September 30, 2009. Additions to Net Assets (Table 2) For the Years Ended Se tember 30, 2010, 2009 and 2008 Increase Decrease 2010 to 2009 2009 to 2008 2010 2009 2008 $ % $ % Employer contributions $3,955,968 $3,349,679 $ 3,143,904 $ 606,289 18.1 % $ 205,775 6.5% Member contributions 779,843 870,581 939,123 (90,738) (10.4) (68,542) (7.3) State of Florida contributions 435,832 446,982 440,115 (11,150) (2.5) 6,867 1.6 Net investment income (loss) 3,516,122 2,020,582 4,287,039 1,495,540 74.1 6,307,621 147.1 Total additions $8,687,765 $6,687,824 $ 236,103 $1,999,941 29.9% $6,451,721 2,732.6% r� Deductions from plan net assets The Fund was created to 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. Deductions from Net Assets (Table 3) For the Years Ended September 30, 2010, 2009 and 2008 Increase (Decrease) 2010 to 2009 2009 to 2008 2010 2009 2008 $ % $ �/a Benefit payments $1,196,160 $895,008 $ 998,022 $301,152 33.6% ($103,014) (10.3)% Refund of contributions 27,142 - 23,371 27,142 100.0 (23,371) (100.0) Administrative expenses 92,864 104,636 90,114 11,772 11.3 14,522 16.1 Total deductions $1,316,166 $999,644 $1,111,507 $316,522 31.7% $111,863) (10.1)% Expenses for the year ended September 30, 2010 totaled $1,316,166, an increase of 31.7 percent from 2009. The increase was primarily due to increased benefit payments and DROP account withdrawals in 2010. 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 decreased benefit payments and DROP account withdrawals in 2009. Further analysis of benefit payments is provided in Table 4 below. Benefit Payments (Table 4) For the Year Ended Se tember 30, 2010, 2009 and 2008 Increase Decrease 2010 to 2009 2009 to 2008 2010 2009 2008 $ % $ % Normal retirement payments $ 832,338 $588,409 $447,338 $243,929 41.5% $ 141,071 31.5% Disability pension payments 272,822 306,599 335,641 (33,777) (11.0) (29,042) (8.7) DROPaccountwithdrawals 91,000 - 215,043 91,000 100.0 215,043 100.0 Total benefit a ments $1,196,160 $895,008 $998,022 $301,152 33.6% $103,014 10.3 % The deductions of plan net assets of $1,316,166 and additions to plan net assets of $8,687,765 resulted in an overall increase of $7,371,599 in net assets held in trust for pension benefits for the year ended September 30, 2010. The deductions of plan net assets of $999,644 and additions to plan net assets of $6,687,824 resulted in an overall increase of $5,688,180 in net assets held in trust for pension benefits for the year ended September 30, 2009. Fiduciary responsibilities 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. E�' 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: Palm Beach Gardens Police Officers' Pension Fund c/o Pension Resource Center, L.L.C., 4360 Northiake Boulevard, Suite 206 Palm Beach Gardens, FL 33410 E BASIC FINANCIAL STATEMENTS PALM BEACH GARDENS POLICE OFFICERS' PENSION FUND Statements of Plan Net Assets Assets Cash and cash equivalents Receivables: Interest and dividends City of Palm Beach Gardens Police officers State of Florida Total receivables Prepaid expenses Investments, at fair value U.S. government obligations Municipal bonds Mortgage backed securities Corporate obligations Equity securities Equity funds International equity funds International bond funds Money market funds Total investments Total assets Liabilities Accounts payable and accrued expenses Total liabilities Net assets held in trust for pension benefits September 30, 2010 2009 $ 166,240 $ 122,288 149,629 122,578 - 837,420 63,525 87,399 - 446,982 213,154 1,494,379 93,580 64,884 3,219,802 2,742,649 - 219,538 3,027,928 2,002,166 8,429,942 5,963,735 5,038,662 4,667,766 13,969,719 12,364,077 3,468,678 2,483,622 1,428,171 - 2,389,830 1,946,598 40,972,732 32,390,151 41,445,706 34,071,702 41,854 39,449 41,854 39,449 $ 41,403,852 $ 34,032,253 See accompanying notes to financial statements 10 PALM BEACH GARDENS POLICE OFFICERS' PENSION FUND Statements of Changes in Plan Net Assets Additions Contributions City of Palm Beach Gardens State of Florida Police Officers Total contributions Investment income Net appreciation in fair value of investments Interest and dividends Other Less investment expenses Net investment income Total additions Deductions Participant benefit payments Refund of participant contributions Administration expenses Total deductions Net increase Net assets held in trust for pension benefits Beginning of year End of year Year Ended September 30, 2010 2009 $ 3,955,968 435,832 779,843 5,171,643 2,895,214 751,933 8,258 3,655,405 139,283 3,516,122 8,687,765 1,196,160 27,142 92,864 1,316,166 7,371,599 34,032,253 $ 41,403,852 $ 3,349,679 446,982 870,581 4,667,242 1,488,020 648,270 2,136,290 115,708 2,020,582 6,687,824 895,008 104, 636 999, 644 5,688,180 28,344,073 $ 34,032,253 See accompanying notes to financial statements 11 PALM BEACH GARDENS POLICE OFFICERS' PENSION FUND Notes to Financial Statements Years Ended September 30, 2010 and 2009 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 as 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 ineasurable. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. Method used to value investments - Investments are reported at fair value. Money market mutual funds are reported at cost which approximates fair value. Securities traded on national or international exchanges are valued at the last reported sales price or exchange rates. The value of the Fund's participation in pooled equity trust funds is determined by the custodian using the market value of the assets held in the fund. Quoted market prices are used to value investments in the trust funds. Net appreciation (depreciation) in fair value of investments includes the difference between cost and fair value of investments held as well as the net realized gains and losses for securities which are sold. Interest and dividend income are recognized on the accrual basis when earned. Purchases and sales of investments are recorded on a trade date basis. Use of estimates - 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. 12 PALM BEACH GARDENS POLICE OFFICERS' PENSION FUND Notes to Financial Statements Years Ended September 30, 2010 and 2009 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 benefits 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 retirement 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 the average compensation over the last five years of service including lump sum payments of unused leave. Any member who attains 20 years of service or age 52 with 10 years of service may elect to participate in a deferred retirement option plan (DROP) while continuing his or her active employment as a police officer. Upon participation in the DROP, the member becomes a retiree for all Plan purposes so that he or she ceases to accrue any further benefits under the Plan. Normal retirement payments that would have been payable to the member as a result are accumulated and invested in the DROP plan to be distributed to the member upon his or her termination of employment. Participation in the DROP plan ceases for a member after 5 years of participation. Eligibility for disability benefits begins from the member's 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 calculated the same as a normal retirement pension based on average monthly earnings and credited service at the time of disability, but not less than 25% of average monthly earnings or the accrued pension benefit, whichever is greater. Pre-retirement death benefits for service related deaths are paid to the member's surviving spouse for life. Benefits are calculated at 50% of the member's final average salary, with a minimum equal to the accrued pension (with no early retirement reduction). Pre-retirement death benefits for non-service related deaths are paid to the member's beneficiary for life. For members with less than 5 years of contributing service at the date of death, the benefit is the return of the member's contributions without interest. For members with 5 years or more of contributing service at 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 payable 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. 13 PALM BEACH GARDENS POLICE OFFICERS' PENSION FUND Notes to Financial Statements Years Ended September 30, 2010 and 2009 Note 2- Plan description and contribution information (continued) Plan description (continued) Membership in the Plan consisted of the following at October 1, 2009, the date of the latest actuarial valuation: Retirees and beneficiaries receiving benefits 35 Terminated employees entitled to benefits but not yet receiving them 0 Active members 104 Total 136 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 City 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 of continuous past service by paying into the Fund the amount of contributions the employee would otherwise have paid for such service, plus the investment earnings that would have been earned had such funds been invested by the Fund during that time. In accordance with Florida Statutes, additional premium tax revenues received by the Fund are reserved to provide future minimum or extra benefits and may not be used to reduce or offset the contribution requirements of the employers. As of September 30, 2010, the cumulative balance of additional premium tax revenues reserved to provide future benefit improvements totals $459,331. Note 3- Deposits and investments Deposits Custodial credit risk - Florida Statutes require the Fund to maintain 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 the aggregate of each participant's ascertainable, non-contingent interest in the Fund (up to $250,000 per participant). Amounts in excess of federal depository insurance are secured by the Public Depository Trust Fund (Trust Fund) maintained by the Treasurer. The Trust Fund is a multiple financial institution pool with the ability to assess its member financial institutions for collateral shortfa�ls if a member fails. 14 PALM BEACH GARDENS POLICE OFFICERS' PENSION FUND Notes to Financial Statements Years Ended September 30, 2010 and 2009 Note 3- Deposits and investments (continued) Investments - Investments at fiscal year end consist of the following at September 30, 2010: Credit rating Investment maturity in ears Investment t pes: S&P Fair Value Less Than 1 1-5 6-10 More Than 10 Money market funds $ 2,389,830 $2,389,830 $ - $ - $ - Governmental securities AAA 3,219,802 - 555,857 1,517,266 1,146,679 Mortgage back notes AAA 3,027,928 - - 262,424 2,765,504 Corporate obligations AAA....A- 8,429,942 - 3, 702,973 3,911,551 815,418 Subtotal 17,067,502 $2,389,830 $4,258,830 $5,691,241 $4,727,601 International equity funds N/R 3,468,678 - - - - International bond funds N/R 1,428,171 - - - - Equity funds and securities N/R 19,008,381 Total investments $40,972,732 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 or a savings anc Corporation; money market deposit accounts of a national bank, a state bank loan association insured by the Federal Deposit Insurance • Obligations issued by the United States Government or in 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 Israel. • 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 recognized statistical rating organizations (NRSROs). 15 PALM BEACH GARDENS POLICE OFFICERS' PENSION FUND Notes to Financial Statements Years Ended September 30, 2010 and 2009 Note 3- Deposits and investments (continued) Custodial credit risk: For an investment, custodial credit risk is the risk that, in the event of the failure of the 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, 2010, 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 - Designations A portion of the plan net assets are designated for benefits that accrue in relation to the DROP plan described in Note 2. Plan net assets at September 30, 2010 and 2009 consist of the following: Designated for DROP benefits (fully funded) Undesignated plan net assets Total plan net assets Note 5- Funding status and funding progress 2010 $ 2,054,547 39,372,345 $ 41,426,892 2009 $ 1,055,498 32,976,755 $ 34,032,253 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, 2009, the most recent actuarial valuation date, was as follows: 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 $36,834,622 $65,550,027 $28,715,405 56.2% $9,290,829 309.1 % � PALM BEACH GARDENS POLICE OFFICERS' PENSION FUND Notes to Financial Statements Years Ended September 30, 2010 and 2009 Note 5- Funding status and funding progress (continued) 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 Actuarial cost method Amortization method Remaining amortization period Asset valuation method Actuarial assumptions: Investment rate of return Projected salary increases* *Includes inflation at Cost of living adjustments Note 6 - Income taxes October 1, 2009 Entry Age Normal Level percent, closed 27 years Recognizes 20% of difference between market value of assets and expected actuarial asset value 7.5% 7.5% 3.0% Not applicable 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, 2010. Therefore, no provision for income taxes is included in the Fund's financial statements. 17 REQUIRED SUPPLEMENTARY INFORMATION Actuarial Valuation Date 10/1 /04 10/1 /05 10/1 /06 10/1 /07 10/1 /08 10/1 /09 PALM BEACH GARDENS POLICE OFFICERS' PENSION FUND Actuarial Value of Assets U 16,405,794 18,950,104 22,740,838 27,799,386 32,261,274 36,834,622 Schedule of Funding Progress (Unaudited) Actuarial Accrued Liability (AAL) Entry Age U 24,962,551 35,004,203 46,503,218 52,230,511 60,450,441 65,550,027 Unfunded AAL (UAAL) (b-a) 8,556,757 16,054,099 23,762,380 24,431,125 28,189,167 28,715,405 Funded Ratio (a/b) 65.7 54.1 48.9 53.2 53.4 56.2 Covered Payroll U 6,755,078 7,332,448 8,322,332 8,915,563 9,842,874 9,290,829 Schedule of Contributions from the Employer and Others (Unaudited) Fiscal Annual Year Ended Required Percentage September 30 Contributions Contributed 2005 2006 2007 2008 2009 2010 1,704,041 1,931,054 3,176,791 3,556,548 3,762,323 4,368,612 100.0 109.2 100.0 100.0 100.0 100.0 UAAL As Percentage of Covered Payroll (�b-a)/c) 126.7 218.9 285.5 274.0 286.4 309.1 Note: Annual required contributions reported above include contributions from both the City of Palm Beach Gardens and the State of Florida. � PALM BEACH GARDENS POLICE OFFICERS' PENSION FUND Notes to the Schedule of Funding Progress and Schedule of Contributions from the Employer and Others 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: Investment rate of return Projected salary increases* *Includes inflation at Cost of living adjustments Note 2- Significant factors affecting trends in actuarial information October 1, 2009 Entry Age Normal Level percent, closed 27 years Recognizes 20% of difference between market value of assets and expected actuarial asset value 7.5% 7.5% 3.0% Not applicable 2010 Changes in plan provisions and actuarial methods since prior valuations • None 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 plan provisions and actuarial methods since prior valuations • None 19 PALM BEACH GARDENS POLICE OFFICERS' PENSION FUND Notes to the Schedule of Funding Progress and Schedule of Contributions from the Employer and Others Significant factors affecting trends in actuarial information (continued) 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. • Investment earnings assumption was changed from 8.5% to 7.5%. • Assumptions related salary increases, rate of inflation and retirement notes were changed. • Funding cost method was changed and the morality tables were changed. 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. 20 OTHER SUPPLEMENTARY INFORMATION PALM BEACH GARDENS POLICE OFFICERS' PENSION FUND Schedule of Administrative and Investment Expenses Administrative Expenses Accounting services Professional fees actuarial services Professional fees legal services Professional fees administrative services Fiduciary liability insurance Annual membership fees Trustee expenses Computer services Postage IRS determination letter fees Miscellaneous expenses Bank charges Total administrative expenses Investment Expenses ICC & Rhumbline investment management fees Custodial fees Performance monitor - Thistle Asset Consulting Total investment expenses Year Ended September 30, 2010 $ 14,500 26,154 11,106 28,366 6,777 600 3,105 76 471 1,709 $ 92,864 $ 113,192 11,833 14,258 $ 139,283 2009 $ 13,000 36,469 15,420 29,660 5,419 600 1,498 236 1,000 189 1,145 $ 104,636 88,984 11,642 15,082 $ 115,708 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 GovernmentAuditingStandards Board of Trustees Palm Beach Gardens Police Officers' Pension Fund Pa►m Beach Gardens, Florida We have audited the financial statements of Palm Beach Gardens Police Officers' Pension Fund (the "Fund") as of and for the year ended September 30, 2010, and have issued our report thereon, dated January 29, 2011. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to the financial audits in Government Auditing Sfandards, issued by the Comptroller General of the United States. Internal Control Over Financial Reporting In planning and performing our audit, we considered the Fund's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing an opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Fund's internal control over financial reporting. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of perForming their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, 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. This report is intended solely for the information and use of the Board of Trustees and management, and is not intended to be and should not be used by anyone other than these specified parties. / � �� , r Orlando, Florida January 29, 2011 �"� `'t � r • r► 23