CIVILIAN AND POLICE PENSION BOARDS

The Civilian and Police Pension Boards met on May 8, 2007 at 1:02 p.m. with Chairman Ruane presiding (Chairman Mullaney was absent). Members present were Mrs. Braun, Mr. DePrima, Ret. Capt. Gray, Mr. Hogan, Chief Horvath, Mr. Lucas, Mrs. Mitchell, and Mrs. Rigby (arrived at 1:08 a.m.). Ret. Lt. Knotts was absent.

AGENDA ADDITIONS/DELETIONS

Mr. Lucas moved for approval of the agenda, seconded by Mrs. Mitchell and unanimously carried.

Adoption of Minutes - February 20, 2007

Mr. Lucas moved for approval of the Minutes of the February 20, 2007 Civilian and Police Pension Boards and Police Pension Board meetings, seconded by Mrs. Mitchell and unanimously carried.

Quarterly Performance - Presented by Michael Shone of Peirce Park Group

Mr. Michael Shone, Peirce Park Group, provided members with the Quarterly Investment Performance Analysis, as of March 31, 2007. Mr. Shone explained the various investment strategies and reviewed the Asset Growth Summary Statements and Performance Summaries for both the General Employees and Police Funds, as follows:

GENERAL EMPLOYEE FUND

                                                                        TOTAL FUND                        POLICY INDEX

                   Quarter Return                                     1.9%                                        1.7%

                   1 Year Return                                     11.3%                                      10.6%

                   3 Years Return                                    10.1%                                       8.8%

                   5 Years Return                                     5.7%                                        6.9%

                   Total Assets                                 $17,545,311

POLICE FUND

                                                                        TOTAL FUND                        POLICY INDEX

                   Quarter Return                                     1.9%                                        1.7%

                   1 Year Return                                     11.3%                                      10.6%

                   3 Years Return                                     9.9%                                        8.8%

                   5 Years Return                                     5.6%                                        6.9%

                   Total Assets                                 $12,885,170

During their meeting of February 20, 2007, members deferred discussion of the Quarterly Performance Review of the Police Pension Fund due to the lack of a quorum.

Chief Horvath moved to accept the Police Pension Fund Investment Performance Analysis dated December 31, 2006, seconded by Ret. Capt. Gray and unanimously carried.

Discussion - Allocation of the Vanguard Equity Assets

Mr. Shone provided members with the Vanguard Large Cap Blend Analysis for review (Attachment #1). He recommended that members choose Dover Vanguard Option #4 or #5.

Mrs. Mitchell moved for approval of Option #4, an asset allocation from Vanguard Windsor to 60% Value Index, 20% PrimeCap Core/Growth, and 20% Morgan Growth Core/Growth for the General Pension Plan. The motion was seconded by Mr. Hogan and unanimously carried.

Chief Horvath moved for approval of Option #4, an asset allocation from Vanguard Windsor to 60% Value Index, 20% PrimeCap Core/Growth, and 20% Morgan Growth Core/Growth for the Police Pension Plan. The motion was seconded by Ret. Capt. Gray and unanimously carried.