PENSION COMMITTEE

REGULAR MEETING

AUGUST 3, 2006

TOWN HALL 9:00 A.M.

CALL TO ORDER: The meeting was called to order by Bill Kirkpatrick at 9:00 AM.

MEMBERS PRESENT: Bill Kirkpatrick, chair; George Warner and Ham Wilson members; and Tom forma of Merrill Lynch.

APPROVAL OF MINUTES OF REGULAR MEETING OF 5/4/06: Minutes of the May 4, 2006 meeting were approved as written.

INVESTMENT REVIEW AND DECISIONS:

The sale of the General Motors bond approved at the 5/4/06 meeting was completed at a price of 92+. After fees, the total return of the Town Pension Plan was 5.5% for fiscal 2005-06.

After a lengthy review of asset allocation, anticipated retirements, and the management changes at the Levin Investment Management Company, it was moved and unanimously approved to reallocate the Town pension assets as follows: Merrill Lynch (new manager $225,000, Goldman Sachs (new manager) $225,000; Marsico $227,000, NWQ $123,000—all equity managers—and the remainder, approximately $384,000 for the short term/bond portfolio.

Bill Kirkpatrick distributed and we reviewed the Fire Department plan as of 6/30/06. The year-to-date return was 3.26%, in line with the investment markets. The funding is good and the asset allocation is appropriate.

NEW BUSINESS: There was none.

NEXT MEETING: The next regular meeting is scheduled for November 2, 2006 at 9:00 AM.

ADJOURNMENT: The meeting was adjourned at 10:20 AM.

Respectfully submitted,

Hamline C. Wilson, Clerk