Texas Local Fire Fighters' Retirement Act - Annual Report 2009
Midland Firefighter Relief and Retirement Fund
December 31, 2009
REGISTRATION
System Name Midland Firefighter Relief and Retirement Fund
Fiscal Year End 12/31/2009
BOARD OF TRUSTEES
# Statutory Position Name Board Title Address City State Zip Code Email Phone Fax
1 Mayor or Designee Scott Dufford Trustee 5025 Mira Vista Circle Midland TX 79705 dufford@patriotdrillingllc.com (432) 686-0700 (432) 686-8800
2 CFO or Designee Robert McNaughton Trustee 4506 Teakwood Midland TX 79707 bmcnaughton@midlandtexas.gov (432) 685-7210 (432) 687-4943
3 Elected Member Michael Cota Secretary 2823 Durant Midland TX 79705 mcota@midlandtexas.gov (432) 413-3498 (432) 685-7436
4 Elected Member David Stacy Trustee P. O. Box 2495 Midland TX 79702 dstacy@procominc.net (432) 556-2769 (432) 685-7436
5 Elected Member Brian McGary Chairman 5050 Tanglewood #905 Odessa TX 79762 fire214@cableone.net (432) 553-3630 (432) 685-7436
6 Citizen Member Alan Meyers Vice-Chair 1704 Normandy Midland TX 79705 ahmeyers@sbcglobal.net (432) 682-5800 (432) 685-5808
7 Citizen Member Van Pearcy Trustee 1204 Community Lane Midland TX 79701 van.peacry@raymondjames.com (432) 683-0000 (432) 683-2824
PRIMARY CONTACT
# Position Administrat
1 Administrator Joan Rice, CPA or 4206 Valley Drive Midland TX 79707 joanrice@midlandfrrf.com (432) 685-7213 (432) 685-7436
11/18/2011 Trustees Page 1
Texas Local Fire Fighters' Retirement Act - Annual Report 2009
Midland Firefighter Relief and Retirement Fund
December 31, 2009
REGISTRATION
System Name: Midland Firefighter Relief and Retirement Fund
Fiscal Year End: 12/31/2009
CONTRACTORS
# Service Provided Firm Name Contact Address City State Zip Code Email Phone Fax
1 Accountant MFRRF Administrator Joan Rice, CPA 1500 W. Wall St Midland TX 79701 joanrice@midlandfrrf.com (432) 685-7213 (432) 685-7436
2 Actuary The Segal Company Rocky Joyner 2018 Powers Ferry Rd., Ste 850 Atlanta GA 30339 rjoyner@segalco.com (770) 955-4003 (678) 306-3190
3 Attorney Strasburger & Price Gus Fields 901 Main Street, Suite 4400 Dallas TX 75202 gfields@strasburger.com (214) 651-4300 (214) 651-4330
4 Auditor Elms, Faris & Co David Duree, CPA P.O. Box 1271 Odessa TX 79760 Dduree@elmsco.com (432) 333-3221 (432) 333-3229
5 Investment Consultant
6 Investment Custodian Frost National Bank Ed Peschke 4200 S. Hulen Ft. Worth TX 76109 Ed.Peschke@frostbank.com (817) 420-5626 (817) 420-5106
7 Investment Manager Hillswick Asset Management Anders Ekernas 600 Summer Street, Suite 203 Stamford CT 06901 anders.ekernas@hillswickasset.com (800) 323-2302 (203) 425-1445
8 Investment Manager Lazard Asset Management Tony Dote 30 Rockerfeller Plaza New York NY 10112 tony.dote@lazard.com (212) 632-6439 (212) 332-5656
9 Investment Manager McKinley Capital Management, Inc. Jeff Patterson 201 Main ST Ft. Worth TX 76102 jpatterson@mckinleycapital.com (817) 850-9966 (817) 886-3495
#### Investment Manager Westwood Trust Kim Calhoun 200 Crescent CT. Ste 1200 Dallas TX 75201 Kcalhoun@westwoodgroup.com (214) 756-6989 (214)756-6979
#### Investment Manager Raymond James & Associates, Inc Scottye Ratliff 2020 W. Cuthbert Midland TX 79701 scottye.ratliff@raymondjames.com (432) 683-0000 (432) 683-4447
#### Investment Manager Westwood Management Corp. Kim Calhoun 200 Crescent CT. Ste 1200 Dallas TX 75201 Kcalhoun@westwoodgroup.com (214) 756-6989 (214) 756-6979
Laguna
#### Investment Manager WCM Investment Management Don Kuo 281 Brooks Street Beach CA 92651 DonK@WCMINVEST.com (949) 715-5728 (949) 715-4718
#### Investment Manager
#### Investment Manager
#### Investment Manager
#### Investment Manager
11/18/2011 Contractors Page 2
Texas Local Fire Fighters' Retirement Act - Annual Report 2009
Midland Firefighter Relief and Retirement Fund
December 31, 2009
Actuarial Valuation and Methods Funded Ratio
Valuation Date 100% 94%
Actuarial Cost Method 88% 87%
90% 83%
Amortization Method 81%
80% 74% 73% 72%
Asset Valuation Method
70%
60%
Actuarial Assumptions 50%
Investment Rate of Return
40%
Projected Salary Increase
30%
Includes Inflation At
20%
Cost-of-Living Adjustments
10%
0%
1994 1996 1998 2000 2002 2004 2006 2008
Actuarial Status of the Fund - Schedule of Funding Progress in Millions
Actuarial Valuation Actuarial Actuarial Unfunded Actuarial UAAL Percentage Remaining
Date Value of Assets Accrued Liability Accrued Liability Funded Ratio Covered Payroll of Covered Payroll Amortization
($ millions) ($ millions) ($ millions) (percent) ($ millions) (percent) Years
(a) (b) ( b-a ) ( a/b ) (c) ( b-a )/ c
$0.0 0% 0%
01/01/2008 $67.4 $93.4 $26.0 72% $10.4 251% 30
01/01/2006 $58.8 $80.1 $21.3 73% $9.0 237% 30
01/01/2004 $51.1 $68.7 $17.5 74% $8.8 200% 30
01/01/2002 $48.5 $58.8 $10.3 83% $7.7 132% 30
01/01/2000 $42.5 $45.4 $2.9 94% $7.0 41% 30
01/01/1998 $29.7 $33.9 $4.2 87% $6.2 69% 30
01/01/1996 $22.0 $27.0 $5.0 81% $5.4 93% 30
01/01/1994 $18.8 $21.3 $2.5 88% $4.8 52% 30
Contribution
11/18/2011 Actuary Page 3
Texas Local Fire Fighters' Retirement Act - Annual Report 2009
Midland Firefighter Relief and Retirement Fund
December 31, 2009
Asset Class December 30, 2008 December 31, 2009
Market Value % Market Value %
a Cash - Cash Reserves $8,976.56 0.0% 0.0%
b Cash - Money Markets $1,045,631.60 1.9% 0.0%
c Cash - Treasury Securities $0.00 0.0% 0.0%
d Fixed Income - Corp Bonds $9,162,420.30 16.6% 0.0%
e Alternative - Real Estate $1,761,875.90 3.2% 0.0%
f Equity - Common Stock $12,658,598.53 22.9% 0.0%
g Equity - International $7,244,004.50 13.1% 0.0%
h Fixed Income - Govt Participations $12,093,083.39 21.9% 0.0%
i Alternative $1,564,070.00 2.8% 0.0%
j Alternative $9,790,021.61 17.7% 0.0%
k Select Asset Classification 0.0% 0.0%
l Select Asset Classification 0.0% 0.0%
m Select Asset Classification 0.0% 0.0%
n Select Asset Classification 0.0% 0.0%
Total $55,328,682.39 100.0% $0.00 0.0%
Asset Allocation
Fixed Income $21,255,503.69 38.4% $0.00 0.0%
Equities $19,902,603.03 36.0% $0.00 0.0%
Cash Equivalents $1,054,608.16 1.9% $0.00 0.0%
Alternatives $13,115,967.51 23.7% $0.00 0.0%
Total for Investment Assets $55,328,682.39 100.0% $0.00 0.0%
Other Assets
Other
Receivables $153,534.80
Accrued Interest and Dividends $153,929.39
Payables (enter negative amount) -$26,971.82
Total Assets $55,609,174.76 $0.00
11/18/2011 Asset Classification Page 4
Texas Local Fire Fighters' Retirement Act - Annual Report 2009
Midland Firefighter Relief and Retirement Fund
December 31, 2009
Revenues for Reporting Year
Contributions Percent of Salary Amount
Fire Fighters' Contribution
City Matching Contributions as a Percent of Salary
Total Contributions 0.00% $0.00 $0.00
Interest or Dividends on:
Corporate Stocks & Bonds
Treasury Bonds, Notes & Bills
International Investments
Accrued Interest and dividends:
At the end of the year
At the beginning of the year
Change in Accrued Interest (Year End Balance - Beginning Balance) $0.00
Other
Realized and Unrealized Appreciation / (Depreciation)
Total Interest or Dividends $0.00 $0.00
Miscellaneous Revenues $0.00
Total Revenue $0.00
Contribution Rate History Total Contribution Rate History
Year FF City Total
1997 13.2% 14.0% 27.2%
1998 13.2% 16.0% 29.2% 35%
1999 13.2% 16.0% 29.2% 30%
2000 13.2% 17.0% 30.2%
25%
2001 13.2% 17.0% 30.2%
2002 13.2% 18.0% 31.2% 20%
2003 13.2% 18.0% 31.2% 15%
2004 13.2% 18.0% 31.2%
10%
2005 13.2% 18.0% 31.2%
2006 13.2% 19.0% 32.2% 5%
2007 13.2% 20.2% 33.4% 0%
2008 13.2% 20.2% 33.4% 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
2009
11/18/20110.0% 0.0% 0.0% Revenues Page 5
11/18/2011 Revenues Page 6
Texas Local Fire Fighters' Retirement Act - Annual Report 2009
Midland Firefighter Relief and Retirement Fund
December 31, 2009
Disbursements (or Expenses) for Reporting Year
Benefit Expenditures Count Amount
Monthly Payments for Service & Early Ret. Benefits
Paid on Disability (On-Duty)
Paid on Spouses Benefits
QDRO Payments
Paid on Children's Benefits
Paid on Disability (Off-Duty)
"DROP" Lump Sum distributions
Refund of Contributions
Lump Sum Death Benefit
Total Benefits 0 $0.00 $0.00
Non-Benefit Expenditures Amount
Actuarial Fees
Audit Fees
Bank Trust Fees
Investment Consultant Fees
Investment Managers' Fees
Travel Expense
Education & Training
Professional Memberships
Fiduciary Insurance
Physicians' Fees
Legal Fees
Administrative Salary Expense
Furniture and Equipment
Office Overhead
Miscellaneous (postage, checks, etc.)
Other (indicate type of expense)
Total Non-Benefit Expenditures $0.00 $0.00
Total Disbursements $0.00
11/18/2011 Disbursements Page 7
Texas Local Fire Fighters' Retirement Act - Annual Report 2009
Midland Firefighter Relief and Retirement Fund
December 31, 2009
Net Income
Total Revenue $0.00
Total Expenses $0.00
Net Income (Total Revenues - Total Expenses) $0.00
Comparing End of Year Assets
Calculated End of Year Assets (Beginning Assets+Total Revenues-Total Expenses) $55,609,174.76
Total Assets at Year End $0.00
Difference (Calculated Year End Assets - Computed Year End Total Assets) $55,609,174.76
Data Review Needed
Approximate Rate of Return for the Year -100.00%
Number of Active Fire Fighters During the Reporting Year
Financial Information Attested to By: Date
Signed:
, Chairman
Signed:
, Vice-Chairman
Signed:
, Secretary
Report Prepared By Date
Signed:
11/18/2011 Signature Page 8