CIVILIAN AND POLICE PENSION BOARDS

The Civilian and Police Pension Boards met on February 29, 2008 at 9:01 a.m. with Chairman Hogan presiding. Members present were Mr. McGiffin, Mrs. Mitchell, Mr. DePrima, Mrs. Rigby, Mr. Lucas, Mrs. Braun, Chief Horvath, Ret. Lt. Mullaney, and Ret. Lt. Knotts. Mrs. Clendaniel was also present. Ret. Capt. Gray was absent

AGENDA ADDITIONS/DELETIONS

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

Quarterly Performance - Presented by Lee Martin of Peirce Park Group

Mr. Michael Shone of Peirce Park Group reviewed the Quarterly Investment Performance Analysis as of December 31, 2007. Mr. Shone explained the various investment strategies and reviewed the Performance Summary for the General Employee and Police Funds, as follows:

GENERAL EMPLOYEE FUND

                                                                TOTAL FUND                     POLICY INDEX

            Quarterly Return                                  -1.5%                                      -0.9%

            Year-To-Date                                      6.5%                                      7.0%

            1 Year Return                                      6.5%                                      7.0%

            3 Years Return                                     9.8%                                      8.5%

            5 Years Return                                     10.1%                                    10.6% 

            Total Assets                            $18,292,373

POLICE FUND

                                                                TOTAL FUND                     POLICY INDEX

            Quarterly Return                                  -1.4%                                      -0.9%

            Year-To-Date                                      6.6%                                      7.0%

            1 Year Return                                      6.6%                                      7.0%

            3 Years Return                                     9.8%                                      8.5%

            5 Years Return                                    10.0%                                     10.6%

            Total Assets                            $12,813,483

Mr. Shone advised members that the fourth quarter of 2007 brought a turbulent year to a very uneasy close, with the sub-prime mortgage market meltdown contributing to a serious real estate market slowdown and a real threat of a recession hanging over the US economy. He stated that although the one (1) year return was slightly below actuarial assumptions, the three (3) and five (5) year returns are above actuarial assumptions. Mr. Shone noted that in 2007, growth outperformed value by 12%; however, the fund was still average compared to its peers due to the fund changes made for this quarter which had positive effects on the funds.

Mr. Shone provided members and reviewed the Year-to-Date Returns for the Employee and Police Pension Funds (Attachment #1).

Mr. Lucas suggested that the real estate market should be further explored. Responding, Mr. Shone assured members that he would obtain the necessary information to present to members for their review and consideration.

SETTING OF FUTURE MEETING DATES

After much discussion, members agreed that the future meetings would be scheduled for 9:00 a.m. on the fourth (4^th) Friday during the months of February, May, August, and November, with the understanding that if there is a conflict with Agenda Review Meetings, it will be necessary to reschedule the meeting to an alternative date.

Ret. Lt. Mullaney moved to schedule future meetings at 9:00 a.m. on either the third (3^rd) or fourth (4^th) Friday of the month, depending on the schedule for the Agenda Review Meetings, during the months of February, May, August, and November. The motion was seconded by Mr. DePrima and unanimously carried.

Mr. Hogan noted that the tentative schedule is as follows: May 23^rd, August 22^nd, and November 21^st (due to the 28^th being the day after Thanksgiving).

Chief Horvath moved for adjournment, seconded by Ret. Lt. Knotts and unanimously carried.

Meeting Adjourned at 9:50 P.M.

Respectfully submitted,

Kenneth L. Hogan

Chairman

KLH/TM/jg

S:ClerksOfficeAgendas&MinutesMisc-MinutesPENSION2008