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Police Pension Fund Packet 2007 03-06-07 YORKVILLE POLICE PENSION FUND BOARD 804 Game Farm Road Yorkville, IL 60560 (630) 553-4340 AGENDA 5: 00 p.m. on Tuesday, March 6, 2007 Police Department Conference Room Meeting Call to Order: Roll Call: Previous Meeting Minutes: Corrections/Approval: November 14, 2005 December 12, 2006 Communications: Treasurer's Report: Employee Contributions as of January 31 , 2007 Bills for Payment: TWS Actuarial Study $ 1300.00 IDOI Filing Services $ (To be Determined) -- Quarterly Portfolio Review: Request for Quarterly Progress Reports from Mitchell, Vaught, and Taylor Unfinished Business: Money transfers from YNB to Charles Schwab & Co. Pay to: Charles Schwab & Co. Mail to: Mitchell, Vaught, and Taylor Inc. Attn: Emily 124 South Webster Suite 202 Naperville, IL 60540 Officer Jeleniewski transfer of funds from Chicago Heights Status of Actuarial Study by Tim Sharp - 2007 covered by current 3-year contract at $ 1300.00 Three year contract for 2008, 2009, and 2010 will be at $ 1500.00 Board Approval Required Pension Calculation Program Report: Pension Check Payouts Downloaded and reviewed by Ron D and W Powell New Business: General Questions: Officer Greg Sibenaller Additional Business: Position of Vice President Adjournment: Next Meeting: 5/8/07 @ 5 :OOPM M N A F 7 Yorkville Police Dept. Pension Board 804 Game Farm rd. Yorkville, Illinois 60560 President: Larry Debord Vice President: Todd Overmyer Treasuer: William Powell Secretary : Officer Dan Pleckham Asst. Secretary: Chief Harold Martin Meeting Called to Order: 11/14/051545 Hrs. Roll Call: Present Bill Powell, Chief Harold Martin, Larry Debord, Officer Dan Pleckham, Atty. Cary Collins,Merrill Lynch Brad Kitchener Previous Minutes read and corrections made for May 10,2005 and Aug. 09, 2005 Communications: Brad Kitchener from Merrill Lynch made mention of account activities and gave out statements to members of the board. IDOI filing, P. Cemekee was improperly listed and the file was rejected. Bill Powell,had a program problem and should be done by the end of the month with help from Molly and be refilled by the end of the month. Dan attended seminar in Oct. 05 sponsored by Cary Collins and went over information regarding pension laws for line of duty injury, etc. Treasurers Report: as of 10/31/05 Cash---------------$284,963.58 Fixed CD's-------$1,001,099.69 Mutual funds-----$111,217.36 Estimated Accrued Interest----$8,989.34 Total(w/rounding)$1,406,269.97 Old Second Checking--------$8063.29 Total Balance----------$1,414,333. Maturing CD's Provident: 11/21/05 $55,000 Georgian: 11/28/05 $95,000 Total: $150,000.00 Total estimated funds for investment: $434,963.58 Motion to accept Treasurers report: H.M 2"d D.P. carried Bills for payment: Atty. Fees $500.00 4a'quarter Treasurers fees $460.00 for Aug, Sept, Oct i Under unfinished business: review of the Fund Mgt. Firm Leaving Merrill Lynch and hiring MitchelINaught& Walker Motion to accept H.M. 2nd L.D. carried New Business: IMRF buy back ends Jan.2006 last day for filing will be 12/31 /05 Officers effected were advised to submit letter of intent via registered mail Actuarial study for 2005 Tim Sharp was to be hired for the study on a yearly basis. Harold would call and set up contract motion H.M. 2"d L.D. carried Meeting dates set for upcoming year: 02/14/2006 05/09/2006 Motion to adjourn: 1735 brs. H.M. 2"d L.D. carried Yorkville Police Pension Fund Board 804 Game Farm Road Yorkville, 1160560 (630)553-4340 Meeting Minutes for Dec 12, 2006 DRAFT Attachments: IDOI Valuation Balance Sheet dated 12/01/2006 TWS Actuary Study dated 12/08/2006 Treasurer Powell's Police Pension Contributions Trend Study dated 11/07/2006 Treasurer's Report dated Nov 31 , 2006 Call to Order: President Debord called the meeting to order at 5: 16 PM. Members Present: President Debord, Officer Pleckham, and Chief Martin. Mr. Overmeyer was absent. Also present were Treasurer Powell and Attorney Collins Previous Meeting Minutes: A motion was made by Mr. Debord (2nd Chief Martin) to approve the Aug 8, 2006 minutes. Ayes: 3 Nays: 0 Minutes from Nov 14, 2005 will be held over until the next meeting. Communications: Copies were handed out of the IDOI Valuation Balance Sheet dated 12/01/2006, TWS Actuary study dated 12/08/2006, and Treasurer Powell's Police Pension Contributions Trend Study dated 11/07/2006. Treasurer Powell's Trend Report showed an approximate increase of 20 to $25,000 dollars per year with a levy for 2006, to be collected in 2007, of $275,000.00. This amount has been budgeted by the city. IDOI's study suggested a levy of $318,025.00 while TWS's study suggested between $322,514 to $385,479.00. TWS's study cited seven more active members plus a somewhat greater than expected increase in salaries since the last study in 2003. It also pointed out that the percent funded had increased from 15.2% to 31 .5% since the 2003 study. Copies of this information will be submitted to Mayor Prochaska, John Crois, and Susan Mika for their information for future tax levies. Attorney Collins commented that the pension fund should be fully funded by the year 2041 . A motion was made by Chief Martin (2nd Officer Pleckham) to approve a 3-year contract starting in 2007 for TWS Actuary to update their study. Ayes: 3 Nays: 0 Treasurer Powell will follow up with TWS. It was noted that Officer Andrew Jeleniewski would be transferring $ 14,922.00 plus interest into the pension fund from the City of Chicago Heights pension fund. A discussion was held on how to handle actual pension payouts. A program is available on the IDOI web site which calculates individual monthly payments. Treasurer Powell will follow up to get this program loaded on the police department PC's and work with Ron Diederich to evaluate its ease of use. Also, Treasurer Powell will contact Susan Mika and Denise Kasper to determine the best way to set up monthly retiree payments. Treasurer's Report: Letters were issued to the employees indicating their YTD and total contributions as well as total fund balance as of Oct 31 , 2006. The Treasurer's Report as of Nov 31 , 2006 indicated the following funds that include $90,025.58 of YTD employee contributions. Cash: 327,185.60 Fixed Securities: 1,4973502.86 Equities: 171 , 167.98 Total Balance: $ 199959856.44 A motion was made by President Debord (2"d Chief Martin) to accept the Treasurer's Report as submitted. Ayes: 3 Nays: 0 Bills for Payment: Attorney Collins $600.00 William Powell: $420.00 Total Bills: $ 1020.00 A motion was made by Chief Martin (2"d Officer Pleckham) to approve bills for payment. Ayes: 3 Nays 0 Outstanding unpaid expenses are TWS Actuarial study $1300.00 IDOI filing support services $ to be determined Quarterly Portfolio Review: The cash balance in Old Second bank is $304,000.71 as of Nov. 31st A motion was made by President Debord (2"d Chief Martin) to transfer $275,000.00 from Old Second to the Charles Schwab & Co account. Ayes: 3 Nays: 0 A discussion was held as to the best way to transfer money between accounts. This had been looked at before: and therefore, it was decided to write a check from the Old Second account a mail it. Treasurer Powell will find out to wham the check should be addressed and where it should be mailed. Attorney Collins and President Debord will follow up with MTV to request quarterly progress summaries. Unfinished Business: Status of IDOI Fiscal year 2005 filing: The Fiscal year 2005 — 2006 IDOI filing has been completed. Status of Actuarial Study by Tim Sharp: A study was received from TWS Actuary indicating pension levy projections for fiscal 2006. Pension application for Kolowski, Goldsmith, and Bledsoe: All three officers have been accepted into the pension plan. New Business: Minute Taker: A discussion on the need of a minute taker was held. It was mentioned that Treasurer Powell could be used as a minute taker since no payment of time at the meeting would be required. A motion was made by Officer Pleckham (2"d Chief Martin) to utilize Treasurer Powell as the minute taker. Ayes: 3 Nays: 0 2007 Meeting Dates: A motion was made by Chief Martin (2"d President Debord) to establish the I following dates for 2007 to be held at 5 :00 PM. Feb 13'", May 86, Aug 14th, and Nov 13th. Ayes: 3 Nays" 0 Preapproval of Transfer of Funds from Old Second Bank to Mitchell, Vaught and Taylor: This was discussed however no preapproval was established at this time due to the impending payouts for future retirees. Additional Business: There was no additional business. Next Meeting: The next meeting is scheduled for Feb 13, 2007 at 5:OOPM in the police conference room. Adiutnrnent: The meeting was adjourned at 6:36 PM. file: Police\agenda\tninutes nov 14 2006.doe United City of Yorkville noa� 800 Game Frame Road Yorkville, Illinois 60560 Es` '83° Phone 630-553-1887 William Powell 1 Fax: 630 Treasurer Eli Treasurer's Report (As of March 1 , 2007) Dollars Percent Cash: YNB 951550.44 Schwab 199 191.31 Total Cash: $ 294,741 .75 14.4 % Schwab: Fixed Securities: 17564,986.81 76.4 % Equities: 188,047.47 9.2 % Total Assets: S 290479776.03 Employee Contributions YTD: $ 114,031 .05 2006 Tax Lew: $ 275,000.00 William Powell Treasurer United City of Yorkville File: T Report 030107.doe It aLJ A - O-b Police Pension Accounting Services Log for Fiscal 2005-2006 Date jActivity Hours 6b AAS A6EwQA o � Sr r F S �Lt � a M t10 o a. 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J -A;•6 ��J ,Q ©.0 `IN Sci+ W la ' 1 L E I Lr a O u p / (G C L. 4 E L^2> . coo ' V &0 L mL • O P C O C- fN ' ♦ W m r1 ' c a IZZ o` L?N S ,JV"1 Zc6 Z Ito a,0.�eS6l-v"�� r �O A ue ¢E 2.ao °' 31o7 G' +wP C L:N ern + Mtyc jjjO -j rA�ZK- Lo ry 8 ® rc N dUC � _ O M. oL-'1�rIV6 O � l- Agenda, Meeting Mintues Employee contributions, YNB Bank, Merrill Lynch data entry Quarterly member' contributions letters State of Illinois internet filing for fiscal year end file: Police Pension Time Log.xls 01 /15/2007 Mitchell , 6cVaught eTa Inc, Investment Advisors Portfolio Statement As of 12/31/2006 12/29/2006 Prices Yorkville Police Consolidated Acquisition Cost Current Current '. Weight Symbol Date Description Quantity Basis Value Yield Yorkville Bonds 3137-9036 Police Pension '. Cash and Equivalents ''.. Money Funds - 8.0% SWZXX Schwab Premier Sweep - 154,859.13 154,859.13 4.9% '... Fixed Income Agency 3.8% 31359MSQ7 05/19/2006 FNMA 75,000 71 ,928.67 72,861 .23 3.3% 08/15/2008 3.25% Accrued Interest 920.83 3.8% 3136F4TH7 01/26/2006 FNMA 752000 75,000.00 72,846.30 3.6% 11 /14/2008 3.50% Accrued Interest 342.71 2.4% 31359MEK5 05/17/2006 FNMA 45,000 45,005.28 452210.24 5.2% 01/15/2009 5.25% Accrued Interest 1 ,084.95 4.0% 3133XGEQ3 09/14/2006 FHLB 75,000 75,508.50 75,463.28 5.2% 08/05/2009 5.25% Accrued Interest 1 ,596.88 3.8% 3136F4TJ3 01 /26/2006 FNMA 75,000 75,000.00 72,896.10 4.1 % 11 /12/2009 4.00% Accrued Interest 408.33 3.6% 3133XBB20 01/30/2006 FHLB 70,000 68,903.60 68,772.48 4.5% 03/17/2010 4.375% Accrued Interest 884.72 3.6% 3128X2EV3 02/01 /2006 FHLMC 70,000 69,522.05 69,307.42 4.8% 12/08/2010 4.75% Accrued Interest 210.10 3.6% 3128X2TM7 01/30/2006 FHLMC 702000 682887.50 69,214.60 5.1 % 01/30/2014 5.00% Call 01/30/2007, 100.00 Accrued Interest 1 ,458.33 5.7% 31359MUT8 02/01/2006 FNMA 115,000 109, 173.01 109,117.29 4.3% 04/15/2014 4.125% Accrued Interest 1 ,001 .46 4.6% 3134A4VG6 01/30/2006 FHLMC 90,000 882884.46 88,599.15 4.8% 11 /17/2015 4.75% Accrued Interest 519.61 4.1 % 31359MEU3 03/06/2006 FNMA Notes 70,000 79,561 .60 79,730.70 5.5% 05/15/2029 6.25% Accrued interest 559.03 42.8% 827,374.67 833,005.74 4.6% 01/15/2007 Page 2 Portfolio Statement As of 12/31/2006 12/29/2006 Prices Yorkville Police Consolidated Acquisition Cost Current Current Weight Symbol Date Description Quantity Basis Value Yield Yorkville Bonds 3137-9036 Police Pension Fixed Income '. Mortgage Backed - 3.1 % 31371MNU7 02/15/2006 FNMA Pool #256103 650000 59,432:38 59,556.77 5.5% 02/01 /2026 5.50% Par 59,792.18 (0.91987964) Accrued Interest 54.81 3.4% 31409JDJ6 05/03/2006 FNMA PASS THRU POOL#87 70,000 66,045.44 67,015.45 6.0% 05/01/2036 6.00% Par 66,570.23 (0.95100323) Accrued Interest 66.57 6.5% 125,477.82 126,693.60 5.8% U. S. Treasury 1 .3% 912828CG3 01/26/2006 Treasury Note 25,000 24,839.00 24,824.23 3.1 % 05/15/2007 3.125% Accrued Interest 99.83 1 .3% 912828CR9 01/26/2006 Treasury Note 25,000 252010.00 24,652.35 2.8% 08/15/2007 2,75% Accrued Interest 259,72 3.3% 912828AND 01/26/2006 Treasury Note 65,000 65, 189.80 63,872.64 3.1 % 11 /15/2007 3.00% Accrued Interest 249.17 3.8% 912828BM1 01/26/2006 Treasury 75,000 75,142.00 72,808.58 3.2% 10/15/2008 3.125% Accrued Interest 494.79 2.5% 912828CX6 01 /26/2006 Treasury Note 50,000 50,171 .00 48,242.20 3.5% 10/1512009 3.375% Accrued Interest 356.25 2.4% 9128276,16 10/11/2006 Treasury Note 45,000 46,593.52 46,560.92 5.6% 08/15/2010 5.75% Accrued Interest 977.50 4.7% 912833JW1 10/11 /2006 Treasury Strip 110,000 89,751 .90 90,681 .25 0.0% 05/15/2011 0.00% 5.4% 912810EA2 10106/2006 Treasury Note 75,000 103,691 .13 103, 195.28 6.6% 05/1512018 9. 125% Accrued Interest 874.48 '.. 24.6% 480,388.35 478,149.19 3.6% Treasury Inflation-Indexed 3.6% 9128275W8 09/05/2006 Treasury Inflation-Indexed 55,000 70,368.95 69,469.05 4.0% 01/15/2010 4.25% Par 66,003.85 (120007) Accrued Interest 11288.24 I I 01/15/2007 Page 3 Portfolio Statement As of 12/31 /2006 12/29/2006 Prices Yorkville Police Consolidated ', Acquisition Cost Current Current ' Weight Symbol Date Description Quantity Basis Value Yield '. Yorkville Bonds 3137.9036 Police Pension Fixed Income U. S. Treasury Treasury Inflation-Indexed 5.5% 912810FR4 02/01/2006 Treasury Inflation-Indexed 100,000 109,129.40 106,641 .63 2.4% 01/1512025 2.375% Par 107, 114.00 (1 .07114) Accrued Interest 1 ,173.05 '.. 9.2% 179,498.35 178,571 .97 3.0% 33.8% 659,886.70 656,721 .16 3.4% 83.1 % 1 ,612,739.19 12616,420.50 4.2% 91 .1 % 12767,598.32 ' ` 1,771;279.63 4.3% Yorkville Equities 3139-4036 Police Pension Cash and Equivalents Money Funds 01 % SWZXX Schwab Premier Sweep 1 ,360.44 1 ,360.44 4.9% Equities 3.9% NYVTX 01 /27/2006 Davis Ny Venture Fd Cl A 11973.045 589447.93 76,001 .69 8.4% 2.7% OPTFX 01 /27/2006 Oppenheimer Capital 1 , 158 472990.00 53,418.54 0.0% 6.7% 106,437.93 129,420.23 4.9% Mid Cap Fund 1 .3% ARGFX 01/31/2006 Ariel Fund 488.907 25,559.85 25,330.27 3.5% 8.0% 131 ,997.78 1542750.50 4.7% Real Estate 0.6% CSRSX 06/22/2006 Cohen & Steers Realty 125.581 10,000.00 11 ,233.22 9.1 % International - 0.3% MSUAX 08/15/2006 Morgan International Real Esta 169.584 52000.00 52904.91 27.0% 0.9% 152000.00 17,138.13 15.3% 8.9% 148,358.22; 173;249.07 5.7% 99.2% 19915,956.54 1 ,929,647,34 4.4% Total Accrued Interest 14,881 .36 100.0% 1 ,944,528.70 This report includes data currently available to the investment manager. 01/15/2007 Mitchell , Vaught Taylor Investment Advisors Advisors Transaction Ledger Report From 11/30/2006 to 12/31/2006 Yorkville Police Consolidated Portfolio Account Trade Security - Unit Net Number Date Activity Symbol Description Quantity Cost Amount 3139-4036 1210112006 Qualified Dividend NYVTX Davis Ny Venture Fd Cl A 14.045 37.66 528.93 3137-9036 12/08/2006 Interest 3128X2EV3 FHLMC 1 ,662.50 12/08/2010 4.75% 3139-4036 12/21/2006 Long Gain MSUAX Morgan International Real Es 78.16 3139-4036 12/21/2006 Short Gain MSUAX Morgan International Real Es 80.86 3139-4036 12/21/2006 Qualified Dividend MSUAX Morgan International Real Es 132.82 3139-4036 - 12/22/2006 Qualified Dividend CSRSX Cohen & Steers Realty 85.40 3139-4036 12/22/2006 Short Gain CSRSX Cohen & Steers Realty 174.56 3139-4036 12/22/2006 Long Gain CSRSX Cohen & Steers Realty 732.14 3137-9036 12/25/2006 Interest 31409JDJ6 FNMA PASS THRU POOL#8 333.18 05/01/2036 6.00% 3137-9036 12/25/2006 Interest 31371MNU7 FNMA Pool #256103 276.97 02/01 12026 5.50% 3137-9036 12/25/2006 Return of Principal 31409JDJ6 FNMA PASS THIRD POOL#8 _ 65.30 05/0112036 6.00% 3137-9036 12/25/2006 Return of Principal 31371MNU7 FNMA Pool #256103 638.16 02/01/2026 5.50% 3137-9036 12/27/2006 Deposit SWZXX Schwab Premier Sweep 250,000.00 3137-9036 12/2812006 Buy 3134A4VG6 FHLMC 20,000 98.47 (19,804.97) 11/17/2015 4.75% 3137-9036 12/28/2006 Buy 31359MUTB FNMA 45,000 95.02 (43,139.05) 04/15/2014 4.125% 3137-9036 1212812006 Buy 912810FR4 Treasury Inflation-Indexed 35,000 (37,709.43) 01/15/2025 2.375% 3137-9036 12/28/2006 Buy 912810EA2 Treasury Note 15,000 137.66 (20,815.16) 05/15/2018 9.125% 3137-9036 12128/2006 Other Expense Schwab Premier Sweep (15.00) 3137-9036 12/31/2006 Dividend SWZXX Schwab Premier Sweep 256.66 3139-4036 12/31/2006 Dividend SWZXX Schwab Premier Sweep 1 .58 133,563.61 This report includes data currently available to the investment manager. Pale 1 of 1 Hi Bill The first year of the 3-year contract was 2003, and this year (2006) will be considered the second year. The fee structure would be: '.. 2003: $1 .300 2006: $1 ,300 2007: $1 ,300 2008-2009: $1 .500 Tw SC A �-Tun Ate, liftp://us.f8l l .mail.yalioo.com/dc/launch?action=welcome&YY=819941569& .fand=6sqggOtm.9f. . . 12/13/2006 Dec 15, 2006 TENSION CHECKS forkville will soon have its first person drawing a pension check from the police pension fund. We have an elected Treasurer and a separate Finance Director. The elected Treasurer is the fund's Treasurer. I would like to know how the pension check is created and how tax withdrawals are handled by other municipalities. Thanks, Bill Powell Treasurer wpnkp8l@sbeglobal.net From: Tina Smigielski [mailto:TinaS @village.gurnee.il.us] Sent: Tuesday, December 19, 2006 1 :55 PM To: Michael Peterson Subject: Re: E Help 12/19/2006 7. Pension Checks Set up the checking account whereby you can have either / or (Treasurer or Finance Director) sign the checks. My advise on Pension Funds -- OUTSOURCEM Attached is the RFP we used for the Gurnee Police & Fire Pension Funds. Have had Lauterbach and Amen on board for 2 years. They do all of the pension payroll, vendor checks, bank reconcilations (including equity holdings), monthly financial statement compliation, Treasurer Reports, 1099Rs/IRS filings, and annual DOI filing. Worth the money! If you don't want to go that route - the Finance Department should "charge-back" to the Pension Fund for the services provided. This is a job function that grows, and grows, and grows. The pension funds should pay for it! Just my 2 cents! Tina Morris Smigielski, C.P.A. Director of Finance Village of Gurnee 325 N. O'Plaine Road Gurnee, Illinois 60031 847-599-7521 tins a villa<,e. ,urnee, il.us Hi Bill, In response to your posted question regarding pension checks: I generate those checks through the AP system (since recipients will receive a 1099R - except in the case of a duty disability pension, then no 1099 is issued - as was discussed in length in a prior ehelp email). The withheld federal income tax is reported on form 945 - Withheld Federal Income Tax. It is an annual return and deposits are required monthly (unless monthly liability is in excess of $50K). I have set the pension fund up on the EFTPS.com website and transmit the taxes monthly. You can get your 1099R forms & (1st time 945) from the IRS website for free (as opposed to buying 50 from an office supply company). The 945 will come annually after your first filing. I hope this answers your question. If you think I can be of further help, please feel free to contact me. Right now our payroll clerk calls it in via the electronic payment method. It is set up so when she calls it is deducted from the police pension checkbook. Therefore, we have a record of all of his FIT payments and they are thus reported to the Board quarterly. -----Original Message----- Prom: WM E POWELL [mailto:wpnkp8l @sbcglobal.net] Sent: Wednesday, December 20, 2006 9:16 AM To: planotreasurer @comcast.net Cc: Willaim Powell Subject: Police Pension Hi Janet... (Bill Powell Yorkville) Thanks for the info on pension paymts. How do you handle the fed tax paymts.. . Bill Pensions — our police retiree is paid from the pension checking account via an EFT transfer (which occurs between the 25th and the end of each month) for payment due on the 151 of the following month. This alleviates the problem with Sat., Sunday and Holidays whereby the banks are closed. The FIT payment is made monthly via EFT as well. The Pension Board voted to process the pension payments accordingly and the minutes so reflect their decision. Pensions — our police retiree is paid from the pension checking account via an EFT transfer (which occurs between the 25th and the end of each month) for payment due on the 15t of the following month. This alleviates the problem with Sat., Sunday and Holidays whereby the banks are closed. The FIT payment is made monthly via EFT as well. The Pension Board voted to process the pension payments accordingly and the minutes so reflect their decision. Bill, We do not have anything to do with the police pension. The chief and/or the police board handle this. Susan Mika 7Galbium5ki (Comisiudlitamlg Servaae5,. 1(muc.. January 29, 2007 Mr. Bill Powell Yorkville Police Pension Fund 800 Gamefarm Road Yorkville, IL 60560 Dear Bill, Thank you for inquiring about Zabinski Consulting Services, Inc.. As you can see by the attached document, I have served governmental communities for the past 12 years in various capacities. It is my understanding that the pension fund will begin providing benefits to an employee in the near future and is potentially looking for guidance on coordinating that. As I have discussed with you in the past, it would be my pleasure to come out and assist you in this regard. Should you have any further questions or are in need of further information, please contact me. I have enclosed a business card for you. Sincerely, glen " ly" Zabinski Accounting Auditing Financial Consulting P.O. Box 6534 • Aurora, IL 60598-6534 • (630) 939-7668 Office • (630) 978-8275 Fax i ZI Zallb inisilca ICointsuillitUn g Selrvv UceS, Ihn (c. Addressing the individual needs of 6overnments to Accounting & Bookkeeping prepare for a sound financial future. • Auditing • Financial Consulting ff Mission ... Audit Work Paper To be your financial partner of choice, providing Preparation personalized serviced tailored to your specific ® Financial Statement needs and concerns. Review • Pension Accounting Internal Controls Documentation & Assessment Professional Experience ... Kelly Zabinski, Owner, Zabinski Consulting Services, Inc. has a long-standing reputation for exceptional service in the government industry. She has served as a municipal auditor for over 12 years with Crowe Chizek & Co., LLP, William F. Gurrie & Associates, and most recently, Virchow Krause & Co., LLP, and has also served as the Assistant Finance Director for the Village of Woodridge. Ms. Zabinski has conducted over 200 governmental audits, assisted dozens of government agencies as a financial consultant, and is noted public speaker and trainer. She is also a . .. oe Illinois CPA Society member, serving on the Executive Governmental Committee ❖ Illinois Government Finance Officers Association member, serving on Technical Accounting Review Committee and Board Member on the Associates Forum ❖ GFOA Certificate Report Reviewer values ... ❖ Providing exceptional financial advice i •S Demonstrating personal integrity and professional ethics j no Assisting/Educating clients to become fiscally sound Calene (Kelly) M. Zabinski, CPA, MBA P.O. Box 6534 Aurora, IL 60598-6534 (630) 939-7668 Office For more information , please contact >>® (630) 978-8275 Fax zcsinc@sbcglobal.net Dec 15, 2006 Mayor: A. Prochaska City Administrator: J. Crois Finance Director: S. Mika Subject: Police Pension Tax Levies Since funds were transferred from IMRF, the Police Pension Fund is only a few years old. At the time of transfer it was recognized that there would be under funding of the pension due to the differences between the two plans. We have been increasing our funding levels through the tax levy by approximately $25,000.00 a year and have budgeted $275,000.00 for tax year 2006. I have attached three documents listed below: IDOI Valuation Balance Sheet dated 12/01/2006 TWS Actuary Study summary dated 12/08/2006 Treasurer's Study of tax levy trends dated 11/07/2006 TWS Actuary did mention that we have improved our funded level over the last 3 years. However, as the Police department continues to grow it will require increasing future tax levies to a higher rate than we have been providing. The Police Pension Attorney stated at the last Pension Board meeting that the Pension Fund should be fully funded by the year 2041 . I have provided this information so that the city can plan ahead for this commitment. U! i ltj Treasurer cc: Police Pension Board file: Pension Tax Levy.doc Chicago Tribune news: Moody's downgrades city's debt outlook Page 1 of 1 Thicago 'ribune _ :1 N i i % 1 i o I T I O N - I Moody ' s downgrades city ' s debt outlook December 16, 2006 EVANSTON -- As Evanston officials prepared Friday for a $ 14 million bond issue next week, Moody's Investors Service downgraded the outlook on the city's outstanding debt, citing increases in unfunded liability in police and fire pension funds. Shawn O'Leary, a financial analyst with Moody's, said the investors service affirmed the city's triple-A bond rating but lowered its outlook from stable to negative because there's a more than 50 percent chance that Evanston's bond rating will be downgraded within three years. Bond ratings help determine the interest rate that municipalities will pay. The triple-A rating is the best rating that can be issued on municipal bonds, helping keep interest rates low, officials said. Evanston Finance Director Matthew Grady said he remained optimistic the city would be able to avert a drop in its bond rating. _ Copyright © 2006, http://www.chicagotribune.com/news/local/southsouthwest/chi-0612160208dec 16, 1 ,2812.. . 12/18/2006 Quarterly Report Prepared by Mitchell, Ca aught ylor Inc. Investment Advisors Yorkville Police Pension Fund March G, 2007 john Mitchell David Vaught 61(1 778 8015 Danielle Tavlor 610 199 �1 NO 111 M,till"S1,0101 Report Contents Economic Review Total Fund Performance Fixed Income Performance Equity Performance Recent Activity Portfolio Reports Mitchell, Vaught Taylor Inc. Investment Advisors Yorkville Police Pension Fund Executive Summary February 2007 Investment Performance Six Months Ending January 2007 Fixed Income: 2.6% Equities: 14.25% Investment Gain: $11,586 From Inception, January 2006 Total Fund: 3.95% Investment Gain: $65,236 Strengths •Bonds—Portfolio tracking blended government/mortgage index -Bonds—Value added by overweighting agencies, which outperformed the LGIBX for 2006 •Stocks—International and real estate continue to shine Weaknesses -Bonds—Conservative portfolio fell behind index during a strong summer in the bond market -Bonds—Flat and inverted yield curve of the past year created challenges and depressed returns of longer duration securities -Bonds—Mortgages significantly underweighted white the sector outperformed in 2006 -Stocks—Sudan restrictions continue to limit investment options -Stocks—Under 10% of total portfolio after asset transfer in December Strategies -Bonds—Use recent market weakness as opportunity to extend duration and take advantage of increasing yields -Bonds—Increase allocation to mortgages -Stocks—Prepare for next phase of Sudan divestment -Stocks—Bring allocation up to 10% Inflation : Consumer Price Index To be or not to be—inflation remains a big question mark. 5.0% 4.5% DAllltems Core 4.0% w 3.5% b u 3.0% 1A 0 w 2.5% 0. } 0 01 2.0% R 1 1.5% 1.0% 0.0% cpry cpry ��Ary +�� cps cP o�pry �� c `po< tiP� cQ5 tp6 \ph �y `pe „Q0 cp1 6m QQ � D° �a PQ � �' �a qQ � on �a PQ �° Labor Market Unemployment has risen slightly. Job growth is steady, though less robust than before. 400 7.0% Jobs Created —Civilian Unemployment 300 6.5% 200 s 6.0% C O3 t9 100 3 N C L 0 5.5% 3 y ° s � 0 c p o n, -100 -200 4.5% .300 4.0% fpry Ary o *pry cAg \p� e „P°` 1a p4 ou 5� qs 5° p°' S° pe Data obtained from St.Louis Federal Reserve MVT Economic Review, March 2007 Retail Sales Retail sales have been strong as employment increases. However, sales growth is slowing. 4.00% =Monthly Retail sales Growth 3.00% —Monthly Retail Sales Growth, Excluding Motor Vehicles W 2.00% ro s U t 1.00% c 0 4Pn 0.00°f O s 0 -1.00% -2.00% -3.00% °\Pryo4'�4 do PAP°` ,°�P°`¢"�°` �a°P`'ps`9`' Spp`'CO"ph US Dollar Nearly all of the 2005 recovery has been reversed. $1,200 ❑Value r>f$1000 $1.000 $800 $600 Annualized Returns $400 2002 -9.10% 2003 -17.50% 2004 -5,18% 2005 4.65% $200 2006 -3.69% $0 acPh Q`Pry ,J� Pn- a� Q� ,'°, e ac0 LPN ,0° ,p°` �p0 0 PO Fy c0 po a� e cps This represents the value of a dollar against 10 majo r foreign mvender on a mde.welghted basis. Data obtained from St.Louis Federal Reserve MVT Economic Review, March 2007 Fed Funds Target Rate After two years of rate increases, the Fed holds steady. Are decreases on the horizon? 6.00% 5.00% r • 4.00% 3.00% I 2.00% 30-Year Treasury Rate Year end 2002 4.79% Year and 2003 5.08% 1.00% Year end 2004 4.82% Year end 2005 4.38% Year end 2006 4.74% Feb 2007 4.67% 0.00%p� a" ' 'ti Pv a Returns of Major Indices Equities enjoyed their fourth strong year in a row in 2006, but 2007 has been a roller coaster so far. 50.0% 40.0% ❑Lehman Government Bond ■Wilshire 5000 ®Morgan EAFE International 30.0% 20.0% 10.0% 0.0% -10-0% -20.0°6 -30.0% - - - - -- 2002 2003 2004 2005 200G YTD 2007 Data obtained from St.Louis Federal Reserve MVT Economic Review, March 2007 03/02/2007 Mitchell, Vaught Tavlor Inc. Investment Advisors Performance vs. Benchmarks Yorkville Police Total Fund 2 1 % Return 5 0 ----- ----- -5 Feb 07 3rd Fiscal Qtr Since Inception Your Portfolio I Custom 10 1 Lehman 1 S&P 500 Comp. Morgan EAFE Intl Government w/divs Index Total Portfolio Feb 07 3rd Fiscal Qtr Since Inception Time Weighted (net) 1.11 0.71 4.73 Custom 10 0.93 0.87 5.43 Lehman Government 1.54 0.19 4.74 S&P 500 Comp. w/ divs -1.96 4.89 11.35 Morgan EAFE Intl Index 0.70 6.64 18.55 All returns net of fees Past performance is no guarantee of future performance. Indices are not available for direct investment. An investment product which attempts to mimic the performance of an index will incur expenses such as management fees and transaction costs which reduce returns. 03/02/2007 Mitchell, Vanghr Tavlar Inc. Investment Advisors Graphical Comparative Performance From 01/31/2006 to 02/28/2007 Yorkville Police Total Fund Gross of Fees vs. Index 1os 105 104 Unit Value 103 10 101 10 99 co <o co co co o co m t m m m n r O O O O O O o o O O O o 0 0 O O o 0 0 o O O O o O o 0 0 N N N N N N N N N N N N N N N O O O O M N M M M M m N M V 0 0 r M W O N N O O O O O O Month Ending Portfolio vY Custom 10 Period Growth of Ending Returns $100.00 Custom 10 01/31/2006 100.00 100.00 02/28/2006 0.05% 100.05 100.05 03/31/2006 -0.26% 99.79 99.89 04/30/2006 0.00% 99.79 100.11 05/31/2006 -0.31% 99.48 99.84 06/30/2006 0.18% 99.66 100.01 07/31/2006 0.96% 100.61 101.02 08/31/2006 1.33% 101.96 102.28 09/30/2006 0.89% 102.86 103.21 10/31/2006 0.81% 103.69 103.99 11/30/2006 1.16% 104.90 104.94 12/31/2006 -0.44% 104.43 104.74 01/31/2007 0.12% 104.56 104.92 03/02/2007 Page 2 Graphical Comparative Performance p p From 01131/2006 to 02128/2007 Yorkville Police Total Fund Period Growth of Endina Returns $100.00 Custom 10 02/28/2007 1 . 11 % 105.72 105.86 Actual : cua 5.720 0 Annualized Rot 5.300.,6 This report'includes data currently available to the investment manager. 03/02/2007 Mitchell, 0 Vaught Tavlor Inc. Investment Advisors Portfolio Value vs. Cumulative Net Investment From 01/31/2006 to 02/28/2007 Yorkville Police Total Fund 2000000 1500000 Dollar Value 1000000 500000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O O 0 O o 0 0 0 0 0 O 0 0 0 N N N N N N N N N N O N N N N N M [f N (O h 0 W O N N O O O O O O O O O r O O Month Ending II Portfolio Value I Cumulative Net Investment Period Contributions Cumulative Portfolio Investment Ending and Withdraw Net Investme Value Gain 01/31/2006 1,429,055 1,429,055 1,429,143 89 02/28/2006 978 1,430,033 1,429,746 -286 03/31/2006 0 1,430,033 1,426,017 -4,015 04/30/2006 149,819 1,579,851 1,574,368 -5,483 05/31/2006 0 1,579,851 1,569,518 -10,333 06/30/2006 0 1,579,851 1,572,361 -7,490 07/31/2006 -190 1,579,661 1,585,423 5,761 08/31/2006 50,000 1,629,661 1,656,971 27,310 09/30/2006 0 1,629,661 1,671,664 42,003 10/31/2006 -202 1,629,459 1,683,108 53,650 11/30/2006 0 1,629,459 1,702,622 73,163 12/31/2006 250,000 1,879,459 1,944,529 65,070 01/31/2007 -216 1,879,242 1,944,479 65,236 02/28/2007 0 1,879,242 1,966,002 86,759 This report includes data currently available to the investment manager. 03/06/2007 .Mitchell, Vaught Tavlor Inc. Investment Advisors Performance vs. Benchmarks Yorkville Bonds Police Pension Acct #: 3137-9036 Debord, Powell & Pleckham TTEE 800 Game Farm Rd Yorkville, IL 60560 s 5 4 % Return 3 2 1 0 Feb 07 3rd Fiscal Qtr Since Inception Your Portfolio 1 75/25 Blended I Lehman I Lehman Brothers Lehman Int Govt Bonds Government Mortgage-Backed Total Portfolio Feb 07 3rd Fiscal Qtr Since Inception Time Weighted (net) 1.42 0.13 4.24 75/25 Blended Bonds 1.46 0.38 5.00 Lehman Government 1.54 0.19 4.74 Lehman Brothers Mortgage 1.23 0.93 5.78 Lehman Int Govt 1.25 0.43 4.77 All returns net of fees Past performance is no guarantee of future performance. Indices are not available for direct investment. An investment product which attempts to mimic the performance of an index will incur expenses such as management fees and transaction costs which reduce returns. 03/02/2007 Vaught Tayl�r Inc. Investment Advisors Graphical Comparative Performance From 01/31/2006 to 02/28/2007 Yorkville Bonds Police Pension Acct#: 3137-9036 Debord, Powell& Pleckham TTEE 800 Game Farm Rd Yorkville, IL 60560 Gross of Fees vs. Index 10 10 104 Unit Value 10 10 101 10 9s 0 0 0 0 0 0 0 0 0 $ o o $ o N N N N N N N N N Q N (�J M <\ M C\ O\ g g M l7 (\ N s o 0 0 0 o s o o a 0 0 Month Ending Portfolio 60 75/25 Blended Bonds 75/25 Period Growth of Blended Ending Returns $100.00 Bonds 01/31/2006 100.00 100.00 02/28/2006 0.09% 100.09 100.24 03/31/2006 -0.48% 99.61 99.35 04/30/2006 -0.10% 99.51 99.14 05/31/2006 0.02% 99.53 99.11 06/30/2006 0.18% 99.71 99.36 07/31/2006 1.13% 100.83 100.61 08/31/2006 1.26% 102.10 102.04 09/30/2006 0.74% 102.86 102.89 10/31/2006 0.57% 103.44 103.48 11/30/2006 1.00% 104.48 104.57 12/31/2006 -0.62% 103.84 103.95 01/31/2007 -0.12% 103.71 103.87 03/02/2007 1 Page 2 Graphical Comparative Performance From 01/31/2006 to 02/28/2007 Yorkville Bonds Police Pension Acct #: 3137-9036 75/25 Period Growth of Blended ? Ending Returns $100.00 Bonds 02/28/2007 1 .42% 105. 19 105.39 Actual Return 5.19% Annualized Rot 4.81% This report includes data currently available to the investment manager. 03/02/2007 Mitchell, Va�.ght Tavl�r Inc. Investment Advisors Performance vs. Benchmarks Yorkville Equities Police Pension Acct #: 3139-4036 Debord, Powell, Pleckham TTEE 800 Game Farm Rd Yorkville, IL 60560 a 3 2 % Return 1 0 _t Feb 07 3rd Fiscal Qtr Since Inception Your I S&P 500 1 Morgan I Dow Jones Portfolio Comp.w/ EAFE Intl Wilshire divs Index REIT(Full Cap) Total Portfolio Feb 07 3rd Fiscal Qtr Since Inception Time Weighted (net) -1.84 6.36 9.35 S&P 500 Comp. w/divs -1.96 4.89 11.35 Morgan EAFE Intl Index 0.70 6.64 18.55 Dow Jones Wilshire REIT ( -2.26 11.61 31.59 All returns net of fees Past performance is no guarantee of future performance. Indices are not available for direct investment. An investment product which attempts to mimic the performance of an index will incur expenses such as management fees and transaction costs which reduce returns. 03/06/2007 MVche , Vaught T Taylor Inc. Investment Advisors Graphical Comparative Performance From 01/31/2006 to 02/28/2007 Yorkville Equities Police Pension Acct#: 3139-4036 Debord, Powell, Pleckham TTEE 800 Game Farm Rd Yorkville, IL 60560 Gross of Fees vs. Index 115.0-- / 112.5 110.0-- "// Unit Value 107.5 105.0 102. 100. 97.5 co Co ro co m m co m m ro S o O o 0 0 0 o S o g o 0 0 �V �U 0 0 O O O O O O O O pm m a m 0 O O O Month Ending Portfolio S&P 500 Index Period Growth of S&P 500 Ending Returns $100.00 Index 01/31/2006 100.00 100.00 02/28/2006 -0.35% 99.65 100.27 03/31/2006 1.74% 101.38 101.51 04/30/2006 0.86% 102.25 102.87 05131/2006 -3.28% 98.90 99.91 06/3012006 0.23% 99.12 100.05 07/31/2006 -0.62% 98.50 100.67 08/31/2006 2.03% 100.50 103.07 09/30/2006 2.27% 102.78 105.73 10/31/2006 3.07% 105.94 109.17 11/30/2006 2.58% 108.67 111.25 12/31/2006 1.17% 109.95 112.80 01/31/2007 2.61% 112.82 114.51 03/06/2007 Page 2 Graphical Comparative Performance From 01/3112006 to 02/28/2007 Yorkville Equities Police Pension Acct #: '3139-4036 Period Growth of S&P 500 Endina Returns $100.00 Index ? 02128/2007 -1 .84% 110.75 112.27 Actual Return I ` Ao u I Re a n 10.750/9 Annualized Ret 9.941/6 This t re p ort includes data currently available to the investment manager. a a c c c w ti o w w a s y N 0 0 o � � - o. ❑ O c a N m m c d m 0 a ma `o 5 5, C C C = N UI ^ N U to Q ro �+ C '� 'ro Y N N Y Ul m ro U Q N Ul o o a' JO E -OJ -JO E o o E " a E E 0 0 U U m — N m m ` tdi V D U d d d d d > > = N N J J J d Tc Tc o R ° o O ° `0 `o m o W W m w w � w w -2 c c a ¢ _ ¢ cr m n CO O N ap 0 0 0 O n 7 d' M n O n — 0 0 0 0 M) m M . W D) N p0 M rO O O) O O O d' O �0 p. naoMnoco0 o OO o vo (0 n M t0 p0 O n o O O O 4 0 't 0 m C O) N n 0 'cY O t0 V O N n 0 I� 0 O� W 0 .- O t0 (0 a` d co co co co n n n n n n n n n n n n 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 W o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 d Op M M 'O N N N m m (\J M V 7 N 'd N N N N O M r r a N N N N N N N N N N N N N N F — 0 0 0- - - 000000000 O O O O O O M N O m N M o W O O O O O O O O n N O O M M a 0 0 • 0 0 0 0 0 0 O) 0 0 M N M W O O c N m m m — & -: N 0 0 r d i J J J J J J m N m J J 7 m 3 N N � I ammmmmm � mrnmmmcnmcnrn •, � pnvNmn � ov N N N N N O N O F, O O M p �^ 0 0 0 0 p N p co m aN o M n U' W a U M > 2 p V 2 0 0 X >� X X 3 X X X � N N 9 ,* N W W M > > F- > Z Q CD O W Xm t2 M N N M ¢ 7 N N N 0 0 rn rn m U Z O U ¢ U U ¢ M M m LLa L m c 0 d N d c C ro 4 o> g. 0 rn0 0 8 d 0 N � Z > > E > dQao 0 ¢ N N m m y pp d U ¢ 2 zi 7 J m Co U O j Q? O m d J J d S Z e T LL m ca cu U ' N ' Z S 2 i.. NLLw F- F- LL > 0 0 > ¢ ¢ w < LL w LL N a ° d m a N a 4 a m a q a q a y .d_ 2 ay .0 .0)N h N h a y a N a U i o 0 0 0 0 0 0 6 Q O Q Q D 0 0 0 0 Z m m m m m m W W m W W W W m m m LL m N O N N d N N m N d d N N N N N N N ° ° d Y 4 c O Y Y Y Y Y Y 0 Y Y Y Y Y 0 Y Y 0 Y 0° 0 0 0 0 0 0 0 a o r rrrrrrrr d 0 O U O fn O (O (O (0 CO t0 CO (0 (O (0 (D t0 (0 (0 (0 (p (0 LL a M M M M M M M M M M M M M M M M d C Z= 0 rn 0 rn 0 rn 0 m 0 M 0 rn 0 a 0 0 rn 0 0 0 0 0 0 0 ro v a a v v m rn rn -. >, E � t� r� � � rmo> � mmmm � n � J O f7 M M M M M M M M M M M M M M M M } m lL Q c) cD c7 c7 M c m c m 03/02/2007 Mitchell, CKVaught 'Ta I or Inc. IIIIIIIIIIIIIIIIIII� Investment Advisors Portfolio Statement As of 02/28/2007 Yorkville Police Total Fund Acquisitio Cost Current Current Weight Symbol Date Description Quantity Basis Value Yield Yorkville Bonds 3137-9036 Police Pension Cash and Equivalents Money Funds 2.3% SWZXX Schwab Premier Sweep 44,762.68 44,762.68 4.9% 2.5% SWVXX 01/31/2007 Value Advantage 50,117.4 50,117.40 50,117.40 5.1% 4.8% 94,880.08 94,880.08 5.0% Fixed Income Agency 3.7% 31359MSQ7 05/19/2006 FNMA 75,000 71,928.67 73,187.78 3.3% 08/15/2008 3.25% Accrued Interest 88.02 3.8% 3136F4TH7 01/26/2006 FNMA 75,000 75,000.00 73,139.85 3.6% 11/14/2008 3.50% Accrued Interest 758.33 2.3% 31359MEK5 0511712006 FNMA 45,000 45,005.28 45,315.36 5.2% 01/15/2009 5.25% Accrued Interest 287.15 3.9% 3133XGEQ3 09/14/2006 FHLB 75,000 75,508.50 75,640.28 5.2% 08/05/2009 5.25% Accrued Interest 251.56 3.8% 3136F4TJ3 01/26/2006 FNMA 75,000 75,000.00 73,332.30 4.1% 11/12/2009 4.00% Accrued Interest 883.33 3.6% 3133XBB20 01/30/2006 FHLB 70,000 68,903.60 69,182.26 4.4% 03/17/2010 4.375% Accrued Interest 1,369.62 5.7% 31359MUT8 02/01/2006 FNMA 115,000 109,173.01 110,029.70 4.3% 04/15/2014 4.125% Accrued Interest 1,752.55 4.6% 3134A4VG6 01/30/2006 FHLMC 90,000 88,884.46 89,065.24 4.8% 11/17/2015 4.75% Accrued Interest 1,216.37 4.8% 31331XLG5 01/04/2007 FFCB 95,000 94,575.15 94,634.35 4.9% 01/17/2017 4.875% Accrued Interest 630.36 4.2% 31359MEU3 03/06/2006 FNMA Notes 70,000 79,561.60 80,467.38 5.40/. 05/15/2029 6.25% Accrued Interest 1,251.74 40.3% 783,540.27 792,503.53 4.5% Mortgage Backed 3.0% 31371MNU7 02/15/2006 FNMA Pool#256103 65,000 58,258.41 58,588.90 5.5% 02/01/2026 5.50% Par 58,618.21 (0.901818 Accrued Interest 26.87 03/02/2007 Page 2 ; Portfolio Statement As of 02/28/2007 Yorkville Police Total Fund Acquisitio Cost Current Current Weight Symbol Date Description Quantity Basis Value Yield Yorkville Bonds 3137-9036 Police Pension Fixed Income Mortgage Backed 5.3% 31404ML30 02/14/2007 FNMA Pool 159,848 104,113.97 104,291 .16 5.5% 03101/2034 5.50°% Par 104,999.91 (0:65687 Accrued Interest 192.50 3.3% 31409JDJ6 05/03/2006 FNMA PASS THRU POO 70,000 64,260.40 65;339.95 5.9% 0510112036 6.00% Par 64,785.19 (0.925502 Accrued Interest 32.39 11 .6% 2262632.78 228;471 .77 5.6% U. S. Treasury 1 .3% 912828CG3 01/26/2006 Treasury Note 259000 249839.00 24894.53 3.1% 05/15/2007 3.125% Accrued interest 223.52 1 .3% 912828CR9 01/26/2006 Treasury Note 25,000 252010.00 24,738.28 2.8% 08/15/2007 2.75% Accrued Interest 24.83 3.3% 912828ANO 01/26/2006 Treasury Note 65,000 65,189.80 ! 64 096.11 3.0% 11/15/2007 3.00% Accrued Interest 557.92 3.8% 912828BM1 01/26/2006 Treasury 75,000 75,142.00 739171 .88 3.2% 10/15/2008 3.125% Accrued Interest 865.89 2.5% 912828CX6 ' 01/26/2006 Treasury Note 50,000 50,171 .00 48,515.65 3.5% 10/15/2009 3.375% Accrued Interest 623.44 2.4% 9128276,16 10/1112006 Treasury Note 45,000 467593.52 46,757.84 5.5% 08/15/2010 5.75% Accrued Interest 93.44 4.7% 912833JW1 10/11/2006 Treasury Strip 110,000 89,751 .90 91 ,781 .25 0.0% 05/15/2011 0.00% 5.4% 912810EA2 10/06/2006 Treasury Note 75,000 i 103,691 .13 103;992.15 6.6% s 05/15/2018 9.125% Accrued Interest 19958.07 24.5% 480,388.35 4821294.80 3.5% Treasury;Inflation-indexed 3.6% 9128275W8 09/05/2006 Treasury Inflation-lndexe 55,000 70,368.95 ' 709003.67 4.0% 01/15/2010 4.25% Par 65,965.90 (1 .19938) Accrued Interest 340.76 03/02/2007 Page 3 Portfolio Statement As of 02/28/2007 Yorkville Police Total Fund Acquisitio Cost Current Current Weight Symbol Date Description Quantity Basis Value Yield Yorkville Bonds 3137-9036 Police Pension Fixed Income U. S. Treasury Treasury;Inflation-Indexed 5.6% 912810FR4 02/01/2006 Treasury Inflation-lndexe 100,000 109,129.40 1092151 .29 2.3% + 01115/2025 2.375% Par 107,052.00 (1 ,07052) Accrued Interest 303.69 9.1 % 1793498.35 1792799.41 3.0% 33.7% 659,886.70 + 662;094.21 3.4% 85.6% 1 ,670,059.75 11683,069.51 4.2% 90.4% 117541939.83 11777;949.59 4.3% Yorkville Equities 31394036 Police Pension Cash and Equivalents Money Funds 0.0% SWZXX Schwab Premier Sweep 4.76 4.76 4.9% Equities Large Cap 0.8% CAAPX 02/13/2007 Ariel Appreciation ' 338.443 17,000.00 16;644.63 0.5% 5.2% SLADX 02/13/2007 Selected American D 2,233.207 104,564.06 = 102;370.21 11 .0% 6.1 % 121 ,564.06 119014.84 9.5% Mid Cap Fund 0.5% ARGFX 01/31/2006 Ariel Fund 179.14 91343.56 91704.01 3.3°% 6.5% 130,907.62 128,718.85 9.1% International Equities Small Cap Fund Growth Fund i 2.1 % ACINX 02/13/2007 Acorn International 1 ,004.785 42,000.00 41 ,457.43 12.6% Real Estate 0.6% CSRSX 06/22/2006 Cohen & Steers Realty 125.581 10,000.00 11 ,861 .13 8.6% International 0.3% MSUAX 08/15/2006 Morgan International Real 169.584 ;5,000.00 61010.06 26.5% 0.9% 150000.00 = 17,871 .10 14.7% 9.6% 187,912.38 188,052.23 10.4% 993% 1 ,952,852.21 11952,269.47 4A% 03/02/2007 Page 4 Portfolio Statement As of 02/28/2007 Yorkville Police 1 Total Fund Total Accrued Interest 13;732.35 100.0% 12966,001 .82 This',report includes data currently available to the investment manager. 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