SUANARY OFTHERESULTS OF THENINETEEN'IHANNUAL ACTUARIAL VALUATION

FEBRUARY 29,2008

COVERING THE PARTICIPATION OF CHRISTIAN COUNTY

IN THE MISSOURI LOCAL GOVERNMENT EMPLOYEES RETIREMENT SYSTEM

,DECECCELECELECEITECECCEECECECENCE Pages          OUTLINE OF CONTENTS                                                 -I-
                                        Summary of the Annual Actuarial Valuation Covering

                                                           Christian County

                                                                   Itenns

                      2 Cover Letter

                                               Financial Principles

                      3 Financing diagram
                      4 Actuarial valuation process

                                               Benefit Provisions and Data Furnished

                    5-7                        Benefit summary
                    8-10                       Summary of covered person data furnished

                                               Valuation Results

                     1 I Actuarial accrued liabilities and assets

                     12 Computed employer contributions
                     13 Comparative schedules

                  Missouri Local Government Employees Retirement System

ECEJECECECECCEECEECECECECEECEECCE Gabriel Roeder Smith & Company           One Towne Square  Last Year        248.799.9000 phone
                                Consultants & Actuaries                    Suite 800                          248.799.9020 fax
                                                                           Soutlifield, MI 48076-3723          www.gabrielroeder.com

                   June 13,2008

                   Christian County
                   Ozark, Missouri

                   Ladies and Gentlemen:

                  Submitted in this report U a summary of the results of the Nineteenth Annual Actuarial
                   Valuation, which determines the employer contribution rate(s) required to support, for your
                  employees, thebeneats providedby the Missouri Local Government Employees Retirement
                  System ("LAGERS").

                   Four participation in LAGERS was effective March I, 1989. The LAGERS provisions
                   reflected in the actuarial valuation are:

                                                                       This Year

                               Benefit Program                             L-9                   L-9
                               Final Average Salary                      3 years               3 years
                               Rule of 80 Adopted?                         No                     No
                               Member Contribution Rate                    0%                     0%
                               Contribution Refund Adopted?                No                     No

                   The date of the valuation was February 29, 2008. The valuation was based on data
                   furnished by your LAGERS administrative staff. The new employer contribution rates are
                   shown on page 12.

                   The financial assumptions and methods used to determine contributions are adopted system
                   wide by the LAGERS Board of Trustees, and are described in the system's Comprehensive
                   Annual Financial Report. In our opinion, they produce results that are reasonable.

                   The fundamental financial objective of LAGERS is to establish contribution rates which,
                   expressed as percents of active member payroll, will remain approximately level from
                   generation to generation ofMissouri citizens.

                   To test how well the fundamental objective is being achieved, annual actuarial valuations are
                   made, which adjust employer contributions, up or down as the case may be, for differences in
                   the past year between assumed financial experiences and actual financial experiences.

                   The actuaries submitting this report are Members of the American Academy of Actuaries
                   (Ali.A.A.A.) as indicated, and meet the Qualification Standards of the American Academy of
                   Actuaries to render the actuarial opinions contained herein.

                   Respectfully submitted,

                   Gabriel, Roeder, Smith and Company

                   Mita D. Drazilov, A.S.A., M.A.A.A.

                   Judith A. Kermans, E.A., M.A.A.A.

                   Missouri Local Government Employees Retirement System                                               -2-

E ECCECCECECE EC IEEE EEC EECECE CE CEO % OF START C}.'                                               i <INVESTMENT
                                                                                                      1 INCOME

              ACTIVE
                                                                                           LEVEL t CONTRIBUTIONS
              EMPLOYEE

              PAYS

                                                                                                      1 CONTRIBUTIONS:
                                                                                                            EMPLOYER
                                                                                                            AND EMPLOYEE
                                                                                                            COMBINED

                                                                               YEARS OF TIME

              CASH BENEFITS LINE. This relentlessly increasing line is the fundamental reality of
              retirement plan financing. It happens each time a new benefit is added for future retirements
              (and happens regardless of the design for contributing for benefits).

              LEVEL CONTRIBUTION LINE. Determining the level contribution line requires detailed
              assumptions concerning a variety of experiences in future decades, including:
                      Economic Risk Areas

                               Rates of investment return

                               Rates of pay increase
                               Changes in active member group size
                       Non-Economic Risk Areas

                               Ages at actual retirement
                               Rates of mortality
                               Rates of withdrawal of active members (turnover)
                               Rates of disability

               Missouri Local Government Employees Retirement System                                                -3-

CECELECEECEECCEECECEECEECCECEECE The Annual Actuarial Valuation Process For LAGERS                                     -4-
                  The financing diagram on the preceding page shows the relationship between the two
                  fundamentally different philosophies of paying for retirement benefits: the method where
                  contributions match cash benefit payments (or barely exceed cash benefit payments, as in the
                  federal Social Security program) which is thus an increasing contribution method; and the
                  level contribution method which equalizes contributions between the generations. Missouri

                  law requires the level contribution method.

                  The actuarial valuation is the mathematical process by which liabilities and the level

                  contribution rates are determined, and the flow of activity constituting the valuation may be

                  summarized as follows:

                  A. Covered Person Data, furnished by plan administrator, including:
                                 • Retired lives now receiving benefits
                                 • Former employees with vested benefits not yet payable
                                 • Active employees

                  B. + Asset data (cash and investments), furnished by plan administrator

                  C. +Assumptions concerning futurefinancial experiences in various riskareas,
                             which assumptions are established by the Board of Trustees after consulting with
                             the actuary.

                  D. + Thefunding method for employer contributions (the long-term, planned pattern
                             for employer contributions).

                  E. + Mathematically combining the assumptions, funding method, and the data.

                  F. = Determination of:

                                 Employer's financial position in LAGERS
                                           and

                                 New Employer Contribution Rates.

                   Missouri Local Government Employees Retirement System

Un3311333331116133133333333333333 following programs: Brief Summary of LAGERS                                         -5-
                                Benefits and Conditions Evaluated and/or Considered

                      _ Through February 29,2008
                                               (Section references are to RSMo)

                  Voluntao Retirement. Sections 70.645 & 70.600. A member may retire with an age &
                  service allowance after both (i) completing 5 years of credited service, and (ii) attaining the
                  minimum service retirement age.

                  The minimum service retirement age is age 60 for a general employee and age 55 for a police
                  or fire employee. Optionally, employers may also elect to provide for unreduced benefits for
                  employees whose combination of years of age and years of service equals 80 or more.

                  Final Average Salacy. Section 70.600. The average of a member's monthly compensation
                  during the period of 60 consecutive months (or optionally, 36 consecutive months) of credited
                  service producing the highest monthly average, which period is contained within the 120
                  consecutive months of credited service immediately preceding retirement.

                  Age & Service Allowance. Section 70.655. The allowance, payable monthly for life, equals a
                  specified percent of a member's final average salary multiplied by the number of years of
                  credited service. Each employer elects the percent applicable to its members, from the

                     L-1 Benefit Program: 1.00% for life

                     L-3 Benefit Program: 1.25 % for life

                     L-7 Benefit Program: 1.50% for life

                     LT-4 Benefit Program: 1.00% for life, plus 1.00% to age 62

                     LT-5 Benefit Program: 1.25% for Iife, plus 0.75% to age 62

                     LT-8 Benefit Program: 1.50% for life, plus 0.50% to age 62

                     LT-4(65) Benefit Program: 1.00% for life, plus 1.00% to age 65

                     LT-5(65) Benefit Program: 1.25 % for life, pius 0.75 % to age 65

                     LT-8(65) Benefit Program: 1.50% for life, pius 0.50% to age 65

                     L-9 Benefit Program: 1.60% for life

                     LT-10(65) Benefit Program: 1.60% for life, plus 0.40% to age 65

                     L-12 Benefit Program: 1.75 % for life

                     LT-14(65) Benefit Program: 1.75 % for life, plus 0.25 % to age 65

                     L-6 Benefit Program: 2.00% for life

                  The only LT benefit programs available for adoption after August 1, 1994 are the LT(65)

                  programs.

                  Benefit programs L-9 and LT-10(65) are not available for adoption after August 1, 2005.

                  Missouri Local Government Employees Retirement System

LECCLECCEECECEECECLECEECEECEECEE Benefit program L-11, available only to groups not covered by social security, provides for
                    2.5 % for life.

                    Subsequent to joining the System, the governing body can eIect to change benefit programs for
                    the employees, but not more often than once every 2 years.

                    Early Allowance. Section 70.670. A member may retire with an early allowance after both
                    (i) completing 5 years of credited service, and (ii) attaining age 55 if a general employee or
                    age 50 if a police or fire employee.

                    The early allowance amount, payable monthly for life, is computed in the same manner as an
                    age & service allowance, based upon the service and earnings record to time of early
                    retirement, but reduced to reflect the fact that the age when payments begin is younger than the
                    minimum service retirement age. The amount of the reduction is 1/2% of 1% (.005) for each
                    month the age at retirement is younger than the minimum service retirement age.

                    Deferred Allowance. Section 70.675. If a member leaves LAGERS-covered employment (i)
                    before attaining the early retirement age, and (ii) after completing 5 years of credited service,
                    the member becomes eligible for a deferred allowance; provided the former member lives to
                    the minimum service retirement age and does not withdraw the accumulated contributions.

                    The deferred allowance amount, payable monthly for life from the minimum service retirement
                    age, is computed in the same manner as an age & service allowance, based upon the service
                    and earnings record to time of leaving LAGERS coverage.

                    Deferred allowances are aIso payable any time after reaching the early retirement age, with the
                    reduction for early retirement noted on the previous page.

                    Non-Duty Disability Allowance. Section 70.680. A member with 5 or more years of credited
                    service who becomes totally and permanently disabled from other than duty-connected causes
                    become eligible to receive a non-duty disability allowance computed in the same manner as an '
                    age & service allowance, based upon the service & earnings record to time of disability.

                    Duty Disability Allowance. Section 70.680. A member who becomes totally and permanently
                    disabled from duty-connected causes becomes eligible to receive a duty disability allowance
                    computed in the.same manner as an age & service allowance, based upon the earnings record
                    to time of disability but based upon the years of credited service the member would have
                    completed had the member continued in LAGERS-covered employment to age 60.

                    Death-in-Service. Section 70.661. Upon the death of a member who had completed 5 years
                    of credited service, the eligible surviving dependents receive the following benefits:

                       (a) The surviving spouse receives an allowance equal to the Option A allowance (joint and
                    75 % survivor benefit) computed based upon the deceased members' service & earnings record
                    to time of death.

                    Missouri Local Government Employees Retirement System                                                          -6-

LECELECELECECCEECCEECECECEELECCE (b) When no spouse benefit is payable, the dependent children under age 18 (age 23 if they
                    are full-time students) each receive an equal share of 60 % of an age & service allowance
                    computed based upon the deceased member's service & earnings record to time of death.

                       (c) If the death is determined to be duty related, tile 5 year service requirement is waived
                    and the benefit is based on years of credited service the member would have completed had the
                    member continued in LAGERS-covered employment to age 60.

                    Benefit Changes After Retirement. Section 70.655. There is an annual redetermination of the
                    monthly benefit amount, beginning the October first following 12 months of retirement. As of
                    each October first the amount of each eligible benefit is redetermined as follows:

                       (a) Subject to the maximum in (b), the redetermined amount is the current amount increased
                    by a percentage determined by the LAGERS Board of Trustees. The aggregate increase to all
                    retirees is limited to 4% annually.

                       (b) The redetermined amount may not exceed the amount otherwise payable multiplied by
                    the ratio of the Consumer Price Index for the immediately preceding month of June to the
                    Consumer Price Index for the month of June immediately preceding retirement.

                    Member Contributions.            Sections 70.690 & 70.700.             Each member contributes 4 % of
                    compensation beginning after completion of sufficient employment for 6 months of credited
                    service.

                    If a member leaves LAGERS-covered employment before an allowance is payable, the
                    accumulated contributions may be refunded to the member. If the member dies, his
                    accumulated contributions may be refunded to a designated beneficiary.

                    The Iaw governing LAGERS also has a provision for the adoption of a non-contributory plan
                    in which the full cost of LAGERS participation is paid by the employer. Adoption of the non-
                    contributory provisions may be done at the time of membership or a later date; however, a
                    change from contributory to non-contributory or vice-versa may not be made more frequently
                    than every 5 years. Under the non-contributory provisions there is no individual account
                    maintained for each employee and no refund of contributions if an employee terminates before
                    being eligible for a benefit.

                    Employer Contributions. Section 70.730. Each employer contributes the remainder amounts
                    necessary to finance the employees' participation in LAGERS. Contributions to LAGERS are
                    determined based upon level-percent-of-payroll principles, so that contribution rates do not
                    have to increase over decades of time.

                    Missouri Local Government Employees Retirement System                                                         -7-

CLECLECECEECEELECCECEECECEECEECE There were 48 retirees and beneficiaries with total annual benefits of $246,153 reported as of
                    February 29,2008.

                                                                 Christian County

                              Retirees and Beneficiaries Added To and Removed From Rolls
                                                             Comparative Schedule

                                       Added to Rolls *                   Removed from Rolls                          Year End
               Valuation                            Annual                                Annual                               Annual
                   I)ate         Number             Benefits           Number            Benefits           Number            Benefits
                2/28/2003 5 $19,172                                                           $                  33 $165,846
                2/29/2004 5 15,805                                                                               38 181,651
                2/28/2005 2 26,168                                            1 15,104                           39 192,715
                2/28/2006 1 9,863                                             1 896                              39 201,682
                2/28/2007 4 20,519                                                                               43 222,201
                2/29/2008 5 23,952                                                                               48 246,153

                              * Includes post-retirement adjustments.

                              # DolIar amounts will not always add up, due to rounding.

                     Benefits to retirees and beneficiaries are paid out of the Benefit Reserve Fund, which is a
                     pooled fund over all employers. When a member retires, employer and member assets are
                     transferred to the pooled Benefit Reserve Fund in order to pay the lifetime benefits to the
                     retiring member. Therefore, the assets and liabilities associated with the above retirees and

                     beneficiaries are not included in this report. However, the pooled Benefit Reserve Fund is
                     more than fully funded, assuring that all promised benefits will be paid to existing retirees

                     and beneficiaries.

                     Missouri Local Government Employees Retirement System                                                            -8-

UJU3313JJ32]33133313JJ33U33333333 Duty Disability        Christian County             Annual Benefits                  -9-
                             Retirees and Beneficiaries on Rolls as of February 29,2008
                                  By Disbursing Fund and Type of Benefit Being Paid

                                        Type of Benefit                Number

                                Service Early & Deferred
                                  Life Option 33 $188,294
                                  Option A 5 19,290
                                  Option B 2 7,331
                                  Option C 4 17,059
                                  Beneficiary Receiving 2 6,006
                                  Totals 46 237,980

                                  Life Option 1 6,805
                                  Option A
                                  Option B
                                  Option C
                                  Totals 1 6,805

                                Non-Duty Disability
                                  Life Option
                                  Option A
                                  Option B
                                  Option C
                                  Totals

                                  Beneficiary receiving
                                  Total Disability 1 6,805

                                 Death-In-Service
                                  Spouse Receiving 1 1,368
                                  Children Receiving
                                  Totals 1 1,368

                                 Totals 0            ». I .....             48-···; '- .· *. ' $246,153

                                     # Dollar amounts will not always add up, due to rounding.

                   Missouri Local Government Employees Retirement System

CELLIZECCELEECECCECCELECITEEPERECE Division Number Annual Christian CountyAge                 Service       Number of
                            Active and Vested Former Members as of February 29,2008

                                                           Active Members

                                                                             Averages *

                                                                 Annual                                   Vested Former
                                                 Payroll           Pay                                       Members
                   General         125          $3,530,202       $28,242       46.7 yrs.       6.0 yrs. 40
                    Police 60 1,856,919                            30,949       36.0           3.5 37

                          * These items are included for their general interest, but are not used in the valuation.

                  A vested former member is a person who terminated employment after 5 or more years of

                  LAGERS service, with rights to a deferred benefit commencing at age 60 (age 55 for police

                  and fire members). Former members who terminated with this employer and now work for

                  another LAGERS-covered employer are also included in the above right-most column.

                  Missouri Local Government Employees Retirement System                                              -10-

CCLIZEECELEECLECCECITEEECELEECEECE General of future years. Meaning of Actuarial Accrued Liabilities Actuarial               Unfunded
                    "Actuarial Accrued Liabilities" are the present value $ of plan promises to pay benefits in the
                    future allocated to service already rendered --- a liability has been established ("accrued")

                   because the service has been rendered, but the resulting monthly cash benefit may not be
                    payable until years in the future. Accrued liability $ are the result of complex mathematical

                    calculations, which are made by the plan's actuary (which is the name given to the specialist

                    who makes such calculations).

                    'Unfunded Accrued Liabilities" are the difference between' the accrued liabilities and the

                    assets on hand. The assets credited to your account in the Employer Accumulation Fund and

                    the Members Deposit Fund were reported to the actuary on a cost basis. For actuarial

                    valuation purposes, the actuary adjusted the reported cost basis assets to a market related

                    value ("actuarial value of assets"). Unfunded accrued liabilities were amortized over a period

                                                              Christian County

                     Employer Accumulation Fund (EAF) and Members Deposit Fund (MDF)
              Actuarial Accrued Liabilities and ActuariaI Value of Assets as of February 29,2008

                           Accrued                    Reported Assets (Cost Basis)                        Value of            Accrued
                          Liabilities            EAF                MDF                 Total              Assets            Liabilities
          Division (1) (2) (3) (4)=(2)90) (51 (6)=(1)-(5)
                           $4,193,977          $2,139,877            $628,998          $2,768,875         $3,270,041            $923,936
           Police            1,749,560           1,399,693             239,295          1,638,988           1,935,645            (186,085)

                    Missouri Local Government Employees Retirement System                                                    -11-

LECCEECECLECECECECECEELEECELECLE Division Service        Christian County            Prior            Total Employer
                                   Employer Contributions to the Retirement System
                                                  For the Ensuing Fiscal Year

                                       Employer Contributions Expressed as %'s of Active Member Payroll
                                                 Current Cost

                                                             Disability             Service
                                       Retirement           Retirement               Cost            Contribution Rate

                     General                10.0%               0.5%                  1.8%                  12.3%
                     Police                  9.8                 0.5                 (0.7)                    9.6

                  The current cost for service retirements was determined by financing each member's

                  retirement benefits over the period from the member's date of hire until the member's

                  projected date of retirement (entry age actuarial cost method). The current cost for service

                  retirements is credited to the employer's account in the Employer Accumulation Fund.

                  The current cost for disability retirements represents the value of disability benefits in excess

                  of members' accrued service retirement benefits, and was determined system-wide using a

                  modified terminal funding method. The current cost for disability retirements is credited to

                  the system-wide pooled Casualty Reserve Fund.

                  The prior service cost is computed by financing the unfunded accrued liabilities over a period

                  or periods of future years. If the prior service cost is negative, it is used to partially offset the

                  current cost. The prior service cost is credited to the employer's account in the Employer

                  Accumulation Fund.

                  Missouri Local Government Employees Retirement System                                              -12-

LECLECELECECELECELECITITEECEPECECE Valuation Number Annual Christian County           Service     Vested        Employer
                                                          General Division

                                    Employer Contributions - Comparative Schedule

                                                    Active Members

                                                                      Averages *

                                                           Annual                                 Former       Contribution
                 Date                       Payroll          Pay          Age                    Members           Rate
               2/28/2003        119         $2,643,740      $22,216     44.4 yrs.     4.4 yrs. 16 9.0%
               2/29/2004        I22          2,894,149       23,723     45.5          4.7 19 9.2
               2/28/2005        106          2,561,965       24,169     46.9          5.5 29 9.5
               2/28/2006        118          2,874,775       24,363     47.4          5.6 32 12.8
               2/28/2007        126          3,192,405       25,337     47.4          5.7 33 12.7
               2/29/2008        125          3,530,202       28,242     46.7          6.0 40 12.3

                  * These items are included for their general interest, but are not used in the valuation.

                                Accrued Liabilities and Assets - Comparative Schedule

                                                                                        Unfunded Accrued Liabilities

                                                         Actuarial                                           Percent of

                  Valuation           Accrued            Value of          Funded            Dollar            Annual
                     Date            Liabilities           Assets          Percent          Amount             Payroll
                  2/28/2003           $2,054,593          $1,033,795          50.3%          $1,020,798           38.6%
                  2/29/2004             2,440,984          1,391,447          57.0            1,049,537           36.3
                  2/28/2005             2,715,683          1,769,797          65.2              945,886           36.9
                  2/28/2006             3,229,090          2,222,667          68.8            1,006,423           35.0
                  2/28/2007             3,725,908          2,696,063          72.4            1,029,845           32.3
                  2/29/2008             4,193,977          3,270,041          78.0              923,936           26.2

                      Amortization of Unfunded Accrued Liabilities as of February 29,2008

                                                                            Remaining
                                                  Amortization             Unamortized
                                                      Period           Liability
                                                        21 $653,027
                                                         17 146,736
                                                        27 124,173

                  # The minimum amortization period is 15 years, except for liabilities arising due to adoption of the
                     Non-Contributory Refund provision. The maximum amortization period is 30 years, except in
                     certain cases. The periods shown reflect the remaining amortization periods for: (i) the employer's
                     initial liability and subsequent actuarial gains and losses; and (ii) benefit changes adopted by the
                     employer.

                  Missouri Local Government Employees Retirement System                                              -13-

- crucCECELLECEELECEELECENCEECHEED Valuation Number Annual Christian County           Service     Vested        Employer
                                                           Police Division

                                   Employer Contributions - Comparative Schedule

                                                    Actve Members
                                                                      Averages *

                                                           Annual                                 Former       Contribution
                 I)ate                      Payroll          Pay          Age                    Members           Rate
               2/28/2003 38 $990,654                        $26,070      36.0 yrs.    3.8 yrs. 17 6.5%
               2/29/2004 37 957,010                          25,865 37.3              4.6 19 6.5
               2/28/2005 48 1,151,637                        23,992      36.7         2.9 20 6.0
               2/28/2006 48 1,246,122                        25,961      37.8         3.0 29 10.0
               2/28/2007 58 1,561,390                        26,921      36.2         3.2 35 9.8
               2/29/2008 60 1,856,919                        30,949      36.0 3.5 37 9.6
                   * These items are included for their general interest, but are not used in the valuation.

                                 Accrued Liabilities and Assets - Comparative Schedule

                                                                                        Unfunded Accrued Liabilities
                                                         Actuarial                                            Percent of
                   Valuation           Accrued            Value of          Funded           Dollar             Annual
                      I)ate           Liabilities           Assets          Percent         Amount              Payroll
                   2/28/2003             $870,895           $869,320           99.8%              $1,575            0.2%
                   2/29/2004               962,772            989,090         102.7              (26,318) -
                   2/28/2005              985,208           1,111,996         112.9            (126,788) -
                   2/28/2006             1,210,416          1,328,639         109.8            (118,223) -
                   2/28/2007             1,493,926          1,620,577         108.5            (126,651) -
                   2/29/2008             1,749,560          1,935,645         110.6            (186,085) -

                       Amortization of Unfunded Accrued Liabilities as of February 29,2008

                                                                             Remaining
                                                   Amortization             Unamortized
                                                       Period                  Liability
                                                          21 ($269,252)
                                                          17 25,964
                                                          27 57,203

                    # The minimum amortization period is 15 years, except for liabilities arising due to adoption of the
                       Non-Contributory Refund provision. The maximum amortization period is 30 years, except in
                       certain cases. The periods shown reflect the remaining amortization periods for: (i) the employer's
                       initial liability and subsequent actuarial gains and losses; and (ii) benefit changes adopted by the
                       employer.

                    Missouri Local Government Employees Retirement System                                             -14-