PENSION COMMITTEE

NOVEMBER 1, 2007

TOWN HALL 9:00 A.M.

CALL TO ORDER: The meeting was called to order at 9:00 A.M.

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

APPROVAL OF MINUTES OF REGULAR MEETING OF 8/2/07: Minutes of 8/2/07 were approved as written.

INVESTMENT REVIEW AND DECISIONS:

Tom Forma reviewed the 9/30/07 financial report and updated performance through October; technology performed well and growth outpaced value. After discussion and based upon Tom’s recommendation, a motion was made and seconded to the shift the portfolio a little more toward growth stocks, decreasing value equities. The motion to replace Blackrock Investment Management LCC with Neuberger LCG was unanimously passed. The large cash position and near term contributions will be maintained in order to fund upcoming retirements.

The Fire Department Fund is performing well, with a 7%+ return through nine months. No decisions are called for at this time.

PENSION STUDY COMMITTEE UPDATE:

Activity has stalled recently. Activity should resume after elections.

ANNUAL LETTER TO EMPLOYEES:

A draft of the letter as reviewed and modified slightly. A motion as made, seconded, and unanimously passed to have the letter printed and distributed to all employees.

OTHER BUSINESS: The following meeting schedule was adopted for 2008 (all meetings to be held at Town Hall at 9:00 A.M.):

January 31

May 8

August 7

October 30

ADJOURNMENT: The meeting was adjourned at 10:00 A.M.

Respectfully submitted,

Hamline C. Wilson, Clerk