ÿþ<html> <head> <title> </title> <meta http-equiv="imagetoolbar" content="no"> <meta http-equiv="Content-Type" content="text/html; charset=iso8859-1"> <SCRIPT LANGUAGE="JAVASCRIPT" src="../../../Scripts/Rollover.js"></SCRIPT> </head> <body bgcolor="#FFFFFF" text="#000000" link="#3250FF" alink="#FF0000" vlink="#CC00FF"><nobr> <div style="LEFT: 0px; POSITION: absolute; TOP: 0px"><IMG src="actuarySymbol.jpg" border=0></div> <div id="_25:158" style="position:absolute;top:96;left:25"> <span id="_12" style="font-size:12px;font-family:Helvetica;color=#000000">The Segal Company </span></div> <div id="_25:190" style="position:absolute;top:116;left:25"> <span id="_12" style="font-size:12px;font-family:Helvetica;color=#000000">2018 Powers Ferry Road, Suite 850, Atlanta, GA &nbsp;30339-5003 </span></div> <div id="_25:212" style="position:absolute;top:136;left:25"> <span id="_12" style="font-size:12px;font-family:Helvetica;color=#000000">T 678.306.3100 F 678.306.3190 &nbsp; www.segalco.com </span></div> <div id="_25:258" style="position:absolute;top:176;left:25"> <span id="_15" style="font-size:15px;font-family:Times;color=#000000"><i>January 21, 2005 </i></span></div> <div id="_25:315" style="position:absolute;top:206;left:25"> <span id="_15" style="font-size:15px;font-family:Times;color=#000000"><i>Board of Trustees </i></span></div> <div id="_25:346" style="position:absolute;top:226;left:25"> <span id="_15" style="font-size:15px;font-family:Times;color=#000000"><i>Fire and Police Pension Fund, San Antonio </i></span></div> <div id="_25:378" style="position:absolute;top:246;left:25"> <span id="_15" style="font-size:15px;font-family:Times;color=#000000"><i>311 Roosevelt Avenue </i></span></div> <div id="_25:410" style="position:absolute;top:266;left:25"> <span id="_15" style="font-size:15px;font-family:Times;color=#000000"><i>San Antonio, Texas 78210 </i></span></div> <div id="_25:454" style="position:absolute;top:300;left:25"> <span id="_15" style="font-size:15px;font-family:Times;color=#000000"><i>Dear Board Members: </i></span></div> <div id="_25:498" style="position:absolute;top:330;left:25"> <span id="_15" style="font-size:15px;font-family:Times;color=#000000"><i>We are pleased to submit this Actuarial Valuation and Review as of October 1, 2004. &nbsp;It summarizes the actuarial data used in </i></span></div> <div id="_25:528" style="position:absolute;top:350;left:25"> <span id="_15" style="font-size:15px;font-family:Times;color=#000000"><i>the valuation, establishes the funding requirement and analyzes the preceding year s experience. &nbsp; </i></span></div> <div id="_25:572" style="position:absolute;top:380;left:25"> <span id="_15" style="font-size:15px;font-family:Times;color=#000000"><i>The census information on which our calculations were based was prepared by the Plan and the financial information was </i></span></div> <div id="_25:604" style="position:absolute;top:400;left:25"> <span id="_15" style="font-size:15px;font-family:Times;color=#000000"><i>provided by the Auditor. &nbsp;That assistance is gratefully acknowledged. &nbsp;The actuarial calculations were completed under the </i></span></div> <div id="_25:636" style="position:absolute;top:430;left:25"> <span id="_15" style="font-size:15px;font-family:Times;color=#000000"><i>supervision of Leon F. (Rocky) Joyner, ASA, MAAA, Enrolled Actuary. &nbsp;</i></span></div> <div id="_25:680" style="position:absolute;top:460;left:25"> <span id="_15" style="font-size:15px;font-family:Times;color=#000000"><i>This actuarial valuation has been completed in accordance with generally accepted actuarial principles and practices. &nbsp;To the </i></span></div> <div id="_25:710" style="position:absolute;top:480;left:25"> <span id="_15" style="font-size:15px;font-family:Times;color=#000000"><i>best of our knowledge, the information supplied in this actuarial valuation is complete and accurate. &nbsp;Further, in our opinion, </i></span></div> <div id="_25:742" style="position:absolute;top:500;left:25"> <span id="_15" style="font-size:15px;font-family:Times;color=#000000"><i>the assumptions as approved by the Board are reasonably related to the experience of and the expectations for the Plan. </i></span></div> <div id="_25:786" style="position:absolute;top:530;left:25"> <span id="_15" style="font-size:15px;font-family:Times;color=#000000"><i>We look forward to reviewing this report at your next meeting and to answering any questions. </i></span></div> <div id="_25:825" style="position:absolute;top:550;left:25"> <span id="_15" style="font-size:15px;font-family:Times;color=#000000"><i>Sincerely, </i></span></div> <div id="_25:878" style="position:absolute;top:570;left:25"> <span id="_15" style="font-size:15px;font-family:Times;color=#000000"><i>THE SEGAL COMPANY </i></span></div> <div id="_25:936" style="position:absolute;top:590;left:25"> <span id="_15" style="font-size:15px;font-family:Times;color=#000000"><i>By: &nbsp;</i></span></div> <div id="_424:936" style="position:absolute;top:610;left:90"> <span id="_15" style="font-size:15px;font-family:Times;color=#000000"><i>____________________________ </i></span></div> <div id="_924:936" style="position:absolute;top:610;left:425"> <span id="_15" style="font-size:15px;font-family:Times;color=#000000"><i>____________________________ </i></span></div> <div id="_426:968" style="position:absolute;top:630;left:90"> <span id="_15" style="font-size:15px;font-family:Times;color=#000000"><i>Garry Spinks </i></span></div> <div id="_924:968" style="position:absolute;top:630;left:425"> <span id="_15" style="font-size:15px;font-family:Times;color=#000000"><i>Leon F. (Rocky) Joyner, ASA, MAAA </i></span></div> <div id="_426:1000" style="position:absolute;top:650;left:90"> <span id="_15" style="font-size:15px;font-family:Times;color=#000000"><i>Benefits Consultant </i></span></div> <div id="_924:1000" style="position:absolute;top:650;left:425"> <span id="_15" style="font-size:15px;font-family:Times;color=#000000"><i>Vice President and Actuary </i></span></div> <div id="_924:1025" style="position:absolute;top:670;left:425"> <span id="_15" style="font-size:15px;font-family:Times;color=#000000"><i>Enrolled Actuary No. 02-4066 </i></span></div> <div style="BORDER-RIGHT: #000000 0px solid; BORDER-TOP: #000000 2px solid; LEFT: 25px; WIDTH: 776px; POSITION: absolute; TOP: 710px" > </div> <div style="LEFT:400px; POSITION: absolute; TOP: 740px"> <a onmouseover="HilightMouseMove('PREV',2);" onmouseout="HilightMouseMove('PREV',1);" href="page0001.htm"> <a onmouseover="HilightMouseMove('NEXT',2);" onmouseout="HilightMouseMove('NEXT',1);" href="page0003.htm"> <IMG src="../../../App_Themes/Images/NextPage1.gif" border=0 name=NEXT /></a> </div> </nobr></body></html>