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%
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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
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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.
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�
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.
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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 $2,587,030.
Relationshin to Market Value
If Market Value had been the basis for the valuation, the City contribution rate would have been
45.36% and tl�e funded ratio would have been 54.5%. In the absence of other gains and losses, the City
contribution rate should increase to that level over the next several years.
The remainder of this Report inciudes detailed actuarial valuation results, financial information,
miscellaneous information and statistics, and a swnmary of plan provisions.
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4
CHAPTER REVENUE
Increments in Chapter revenue over that received in 1998 must f�rst be used to fund the cost of
compliance with minimum benefits. Once minimums are met, any subsequent additional Chapter
xevenue must be used to provide extra benefits.
As of the valuation date, there are no minimum benefit requirements outstanding.
Actuarial Confmnarion of the Use of State Chapter Money
1. Base Amount Previous Plan Year �$ 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.
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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
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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 %
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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
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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
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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.
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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.
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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 '
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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
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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......
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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.
/ �
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Orlando, Florida
January 29, 2011
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23