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Video-1: youtube.com/watch?v=Wln2Md8Upw0

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All right, let's begin. >> We're going to call the uh Indian River Shores Department of Public Safety Pension Board of Trustees quarterly meeting to order. >> Okay, we'll start off with the roll call. Albert Yavino, >> present. >> Joe Jagustinino, >> present. >> William Gomez,

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>> present. >> Tom Vanderventor, >> present. >> And Fred Carter, >> present. >> We have a quorum. Um, I can go ahead and uh keep us moving here. Public comments. Do we have any public comments >> this time? Okay, seeing none, we'll move straight

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on into trusty term update. Um, most of you don't know this, but uh Kyle Smith was up for uh he has expired his term. So, in doing that, we put it out to all membership to see if anybody is interested in running against him. Um, somebody was somebody nominated Will

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Gomez. Um, so we had a runoff between Kyle and Will, and Will got the most votes. So Kyle, being that he's expired, he is now no longer on the board. And Will Gomez, is going to take over uh the new term uh which began uh when Kyle's ended in March. So he'll go March until

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uh the next term ends. So at this point with that, we lost our chairman. So the next we'll move straight in. By the way, everybody will congratulations. Happy to have you on the board. Um so with that we'll go ahead and move right into election of officers. Um we no longer have a chairman so we have to elect a

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chairman. Um and then if that removes a secretary then we have to elect a new secretary. So at this point uh the process is that anybody can make a nomination for chairman. Um if we get nomination a second and all in favor then we will go ahead and that'll be the chairman and we'll move on to the

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secretary. >> I'll start with a nomination for uh Albert IO for chair. Okay. So, nomination for Albert as chairman. >> I'll second that. >> Okay. So, I've got Will Gomez as the first and I have Tom inventor. Any other

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discussion? All in favor? >> I >> opposed. Okay. So, motion passes. Uh the new chairman is going to be Albert Aino. And uh right now we would go ahead and um take nominations for a secretary. If

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anybody has one, >> I'll nominate William Gomez, secretary. >> I'll second that. >> Okay, perfect. Any other discussion? All in favor? >> I. >> Any opposed? >> Okay, great. So, we have William as our

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uh secretary and Albert as our chairman. Um, if you want to keep going or if you want me to run it, I don't mind. No, go ahead. Okay. So, move for uh item number four, approval of minutes from January 27th, 2026. Do

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>> you have a motion to approve the agenda? >> I'll make that motion. >> Yes. >> I'll second. >> Okay. >> All in favor? >> I >> I It's unanimous.

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>> So, that was to approve the minutes. >> Yes, that was to approve the minutes. Yes. Yes. Okay. So, uh we're moving right down to old business. Nothing on there. And then we're going to move to uh item number six, the reports from the

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attorney, the consultants. First is from Foster and Foster, Doug Lozen, the actuary. Mr. Lozen. >> Okay. Assume I'm being picked up pretty well by this. Um this is a followup. um go back in

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time uh to assumption changes we recommended from an experience study last year and there was there was a deferral um of action. The board didn't make any

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decision on the recommended assumption changes from our experience study. As a reminder, we we go through these experience studies about every five years sort of as a true up. Um every five years we collect all the data from the

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town regarding salary increases, mortality, retirement turnover, everything that's happened in reality and compare that to what we were assuming from the prior experience study. So, this is about the third time we've

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gone through that exercise and so I went over the the results and the board deferred um for a number of reasons either because of busy agendas or me not having time to get back to a meeting to follow up. We're here today

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and um what I'm advising is when you approved the last valuation report the last meeting the only thing adopted of the assumption changes was mortality and that's because that's a statutory

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requirement. We had to do that but I wanted to incorporate the other changes but we hadn't made a decision yet. So, I'm here today to follow up on that and I'll give you the cliff notes high level. I I did not reprint the study,

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but I'll I'll give you the the gist. The the remaining assumption changes have to do with salary increases, retirement rates, and turnover. Again, the the recommendations we made were based on what's actually happened

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with the plan over the last 5 to 10 years. the impact is fairly minimal. Um, if you adopted all three of the recommendations, assumed higher salary increases,

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and then a revised assumptions for more for retirement and turnover, it would impact the funding requirements about 0.15% of payroll. So, in comparison, the the town's

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putting in over I think 20% of payroll or so. So it's it's a very minor change but it is something we recommend as the actuary because it's a standard practice that about every 5 years we review reality and make recommended assumptions

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and and I do know that auditors do like to see that you periodically do these kind of exercises. Um so that's my recommendation. I'm here back to answer questions and gauge the board's interest in

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incorporating these changes with the next report. >> Just for clarity, I want to make sure I got that statistic right. You said that it was going to be approximately a 0.1% >> uh 0.15% of payroll >> 0.15 >> approximately by all three all all in

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>> salary turnover retirement combined. >> Thank you. So there there's two ways we can run this. I could make a motion second it and then have a discussion or Mr. Lozen um I wasn't here for the last meeting and obviously Mr. Gomez wasn't

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here. Um if you can maybe recap what the percentage so you said 0.15 one5% >> that yeah of payroll so incorporating with the next valuation let's say the baseline for the town would be 20% of

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payroll the revised assumptions that I'm recommending would approximately make the town's requirement 20.15% of payroll Would this be a motion for them to incorporate all three? >> Uh yeah, there I don't think there's any

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reason to >> individually. You know, you can adopt all three assumption changes. Again, salary, retirement, turnover. Those are the only remaining recommended uh from that experience study and typically

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boards adopt them as a package. There are no further questions. I I propose and make a motion that we approve that second. Okay. Tom got it. >> Is there any further discussion?

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seems like a minimal change, especially if it's expected that these changes be made every so often as recommended. So for a very minimal change if we're covering the bases. Okay, we have a second motion. All in

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favor? I >> opposed. Okay, perfect. Thank you guys. Appreciate it. Thanks. I know you guys always have busy agendas, so was glad to get back here and I appreciate your time with it. >> Yeah, Doug, did you want to go over the

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um the cyber support? >> Uh yeah, there's one more item on the agenda for the actuary. Um >> page six starts it. >> Yeah, >> the tablet >> on the agenda. It's cyber security letter. Um I'll I'll just give you kind

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of a heads up. I'm thinking the board probably will want to defer action today just from my experience in the last week. We just sent out these letters in the last week or so and I've been presenting and there's a number of attorney questions that I think need to

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be resolved. Uh but I'll give you the gist of the letter. Uh we've recently partnered with a company called Fox Point Solutions. um their bread and butter, their their expertise

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is working for fiduciaries of pension plans and advising on how cyber secure the individual vendors are for those pension plans. And so they they go through an

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exercise of submitting a survey with about 12 different metrics to all the different vendors for the purpose of establishing, hey, are vendor A, B, and so on, are you cyber secure? Do you have

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practices in place that would avoid you having to make a claim on your cyber insurance? That's the that's the gist of what that company does. Um if the board approves then they would this pension board then

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we would inform Fox Point and then they would submit surveys to each of the vendors of this pension plan to fill out that survey and then you would get a report back and for ease it's it's colorcoded you know red green yellow.

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>> I think I've got the uh example on page 10. >> Yeah there there's a sample letter that I I won't cover here in this meeting. you can look at at your your leisure. Um, but it's a sample of what the report would look like. So, if there's all greens,

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then that vendor would have passed largely probably all of the questions in the 12 metrics, the 12 parameters. And clearly, if there's yellows or reds, then some of them didn't pass. and and clearly with the Reds, you know, maybe there's some serious security flaws, at

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least in the in the opinion of Fox Point. At that point, then the board meets with Fox Point for a presentation and then you can make a decision. Ultimately, it's not only your decision whether you want to go through this exercise, but

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then if you want to require of any of the vendors certain remedies that Fox Point might recommend. So, that's the gist of the proposal. It's it's fairly new coming out of our firm partnering with Fox Point, but at

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this point, um, I'll turn it over to probably before the board ask questions, I'll let turn it over to Bonnie. I think that'll be the most efficient way and and then we can do some Q&A. >> Yeah. So I I you know I think we we had some questions about you know just kind

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of the the value of the process if you're answering questions um you know and you and you're not necessarily having somebody come in and take a look at each of the each of the systems although that has its own issues right um you know how valuable this

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would be to the to the board of trustees um you know I think this is something you could request of each of the vendors to say, "Hey, um, you know, tell us about your security systems." I think, you know, the one of the downsides to to

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our system of finding out this information is that it's this is a public meeting and, you know, anybody can be in here. It becomes a public record. And so, um, you know, it's it's difficult to communicate that process.

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we there is um some exceptions to to to public records um for those kinds of things. Um so you might be able to get that information but I think you know we just had a lot of questions about what you know what actual

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work you would be buying in this particular case. Um the and I guess a lot of questions come to our mind is because you know we fill out um limited partnership agreements and we

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answer all the questions to the best of our ability, as honest as we can. And sometimes we answer the question wrong because the way the question is, we know the answer, right? But we don't know whether we're supposed to check yes or no. And so, you know, the data coming in

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is only going to be as good as the understanding of the people that are completing the the documentation because there's not going to be any backwards check of the information that's available. I think this does raise, you know, some very good questions about,

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you know, what we should be doing to make sure that your member data is protected where it resides. you've got, you know, essentially five people, maybe more, who who have access to to your

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data, right? You have um the attorney's office, you have the actuaries office, you have the administrator's office, you have the investment consultant's office, um you have the custodian, um who, you know, keeps all of your assets and makes your benefit payments. Um so those are

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all the places kind of that they would they would be reaching out to. Um the standards are probably different at each of those places about you know how they keep the data um safe for you all and

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you know while the investment consultant might not have any personal identifiable information they do have your financial information right they don't actually move any money so you know the level to which they are secure um is different than the level to which

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the the custodian and or the administrator who has all of the personal identifiable information, all of the financial information, um, you know, is probably a little bit different. Um it it certainly has um you

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know said that maybe we should ask these questions of of more than just the administrator and the consultant which which has kind of been when you know when we're doing an RFP we ask for information about you know what's your business continuity plan um what's you

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know h how are you making sure that the data is secure and you know we get a 100,000 foot look at at what types of things they're doing. Um, I think, you know, Doug is correct that it's something we should follow up

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on. It's something we should follow um with our with our vendors and and whether you retain Fox Point or someone else to do to do that process um you know is a is a decision probably for for

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a later time. Um yes, >> investment managers would also have access to the to the plan data or they have the financial they have the financial account numbers. that but we're so we have when when

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we're registered via a custodian custodian and we contract with an an external investment management fidelity let's say they is our plan just an account number or is it a it's actually the titled as our as our

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>> so it depends on whether or not you have a separate account or a mutual fund right so for our equities we're all mutual fund so we're just going straight through to the custodian they have the omnibus account there then hold the mutual fund. Now for Manning and a peer, right, they have a separate account that

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are managed in fixed income portfolio at your custodian. So they'll have that account number. Um >> so the the omnibus account of the custodian is not a we're not there's not a named entity within that. It's just uh it's the custodians.

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>> Yeah, I we can we can double check that, but I believe that's the case. Yes. just that just pointing out that would be six six entities, right? It's one of my one of my first thoughts is who are the entities that are involved here. >> You're absolutely correct. I should have listed the investment managers, but I

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you know, I kind of put them in a in a separate category because they don't really produce anything for you individually, right? They they trade >> they're likely they're likely targets. >> Exactly. >> They're potentially targets. You're

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correct. Um one other question that what is the responsibility of this the trustees of this board within the town's framework you know with regard to uh assuring you know that we are you know

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within these new guidelines by you know and that and the practice of other public entities which is a question I had like who are public entities that are >> so you you are a public entity yeah and you're one you're >> we're a all public entities.

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>> You are okay. You are but you know you are considered an officer for purposes of the state of Florida. Um the work that you do is is you know public money. Um you're taken care of. So you fall under the guidelines of the sunshine

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law. Um you know all of your information is public records. Um so you know you have very limited very very limited opportunities to speak outside of the sunshine. Um and that's really only in litigation or as I mentioned there there

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is some some limited ability to have a have a security discussion. You however don't have an enterprise. you you you're basically made up of those six groups who do the work for you

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and have si you don't have your own system. Um you don't have da d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d d da that you manage you contract with an administrative manager to manage that information. Um,

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and so you're when I first read this, I thought, well, this is really for an enterprise. It's really for the for that board to take a look at what they are doing, what they're trying to protect, someone who has their own pension office, bigger

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pension plans. I think the city of Tampa has its kind of its own pension office. Um, Palm Bay has its own pension office. They h they the board employs people. um you don't you don't have that kind of a of a setup here. I think the biggest

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risk um for you all is because not because none of you can can yourself direct a purchase or a sale. You can't tell the custodian

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move money to this other investment. So, so you have that level of protection. So, I think your biggest exposure and what and why we suggest that you that you buy cyber insurance was in the event that one of you one of those six providers is breached and you

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have to within 30 days notify all of the participants of the pension plan of the exposure. Give them the opportunity to get with a credit reporting bureau and and take whatever actions they need to take to protect themselves. And then

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additionally to have someone through the insurance um help you to figure out where the breach occurred and and how to prevent it in the future. So you have that insurance to help you with that process.

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Um we've had we've seen limited places where um signatures were stolen through an email um and used to to move money. Um, and as far as I know, it only happened

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at one one entity. So, so again, you're I think your exposures are limited because because you don't have a CEO, right? You don't have employees who make decisions for you.

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You have you have companies who would who would be responsible for those particular breaches. So I think I I think that's your biggest responsibility is to make sure that you have some way to um protect yourself and to get assistance in the event that

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there is a breach. >> Right. So in that in that sense in that sense it seems like this would be more germanine to to the our to our vendors >> and and how we're vetting our vendors. I think it is directed exactly to the vendors because

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you know they would need to answer the questions about what they're doing to protect their data your data at their space. >> So do you have an opinion on what we should do with this now? >> I think we should find out some more information. I I mean I'm not I'm not

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saying close the door. I think I think it it is a good discussion point. I think it's something we should follow. I don't understand enough about what it is that Fox Point does um to know whether it's going to be useful to you as a

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board of trustees. I I know that sometimes I log out of my computer at night and I log back on in the morning and things are different because there's been some kind of update that comes in. Well, how do we know that that new update at

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every space is has all of the loopholes closed, right? So, so is once a year enough? um do you ask you know your vendors to provide you with information from from

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actually their third party um IT companies or their internal IT company that you know they have met these standards from the department of labor. Um I just don't know enough again about Fox Point to give you an opinion about

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whether it's it's valuable to you all. But I but I do think the concept and talking about cyber security and what you need to do to make sure that your vendors are protecting your information is valuable. >> So okay, last last question. Sorry everybody. No, no.

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>> But so Doug, just if you could frame again like so this is something that your firm is recommending or you're just saying this is a new service because I I hear >> maybe I'm misinterpreting but I'm hearing two two different approaches here.

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>> Why why them? >> Yeah. >> Uh we became aware of this recently box point in this kind of program. >> Mhm. because we had recently acquired another actuarial firm uh in the patch

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harvest space and they were doing this. They u with the department of labor guidance um recommended that to the trustees for the tax department plans. Now, we understand half hourly is not the same as public sector pension, but we like

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the idea because we know that we have to go through SOP 2 compliance every year. We've gone through that exam. Um, we also have a lot of cyber insurance for all of our clients, you know, multiple millions of dollars. And

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so we became aware of this company Foxpoint that well we might have some suggestions in order to avoid vendors having to tap into insurance. So that's we like the our CEO liked the idea and asked if we would present it to our

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clients or individual pension boards to see if they were interested. >> So the function of Fox Point is purely to qualify these different vendors. If these if does Fox Point already have a list of vendors and in their in their scale their colorcoded scale or do they

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only submit that list to us for consideration if we were to retain their services? >> I don't know. This is very new. Uh I've only been presenting this for the last week or so. So I'm I'm learning on the fly with feedback from attorneys and

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boards and questions like you just brought up. >> Understood. And by any chance, just kind of to dovtail off that, um, would they be opposed if if they're going to present us with this itemized list of of what vendor offers what and how it measures up to their standards, would we then be able to have our own internal

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technologies cross reference that and verify how it links with our system or would you be able to shed light on? I think logically that makes sense, but I'm thinking that kind of question would be something that when you have a presentation by Fox Point, if you go through this, >> okay,

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>> you could puzzles that kind of a question along with others. >> Perfect. Thank you. >> We do standardly request um in the contract that vendors have cyber liability insurance at their space as

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well. And so we do have cyber liability insurance. >> Yes. So that's with each vendor with each vendor for >> renew umbrella over everything. >> You have your own. >> Right. That's what I'm wondering. >> And then we have a I think $5 million

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policy. I think Foster and Foster has a $2 million policy. >> So I just wonder what our premium is currently. >> What would happen to our premium if we were to retain this group? So just uh so you know so that is uh at the bottom of

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our agenda is renewal of your cyber and fiduciary uh liability policy. The last board that we presented this to had a great question. If we do retain this company, Fox Point, is there a chance we get a discount on our cyber fiduciary? So that question is being uh pitched right now. Uh Amtrust is one of the uh

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companies that does the the cyber um and I think fiduciary as well. So we are reaching out to see if that is a possibility. That was a good question that that board brought up. Um, so two separate things. The cyber liability is the liability part of it. This is the catch thing is before you need the cyber liability.

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>> Right. And so I'm just wondering if it was the insurance company that's in that business whether they see value in it enough value to give us a discount. >> That's what So that's what we just now from a meeting last week. That's what I was getting at. Yep. I just sent it to the analyst and she's going to reach out to the person she binds the coverage with um and ask if that is you know

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something. Um, I did send them some material like is on here so that they can have an idea of who Foxpoint is and they can start doing their own research. Um, because just us telling them this is what we're doing. They're >> and it' be interesting do their own research on that. >> It' be interesting to know whether the >> right >> cyber insurance liability insurance

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company would say well for Fox Point we'll give you 2% discount but if you use somebody else >> that's a very reasonable number. I don't think it's going to be a dramatic reduction. You know these are these are small numbers. number today is $1,400 for cyber. You know, 2% of 14, you know

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what I mean? It's not it's not a big number, but I do think that it was a good question and one that we're going to ask just to see. So, I could definitely report back to you on how that, you know, is going up the next >> and then we'd also need to know what uh Fox

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>> Point >> Fox Point what they would be charging. >> Yes. >> For comparison. Yeah. I I I think this obviously you said needs presentation and more discussion because I'd like to find out who this group is. Are there are there competitors? I mean we're

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insured, the funds are insured. Are we overinsuring oursel by doing this? Is anything that can work in conjunction with of a lot of the cyber security and things that we're doing with the town or not? I think will you talking about that? Or is it absolutely not? It's

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completely separate. Um, I'd like to know more about it before committing to anything, too. So, you want to make a motion to table this to the next meeting? Yep. >> I'll make a motion to table it till the next meeting. >> I'll second.

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>> All in favor? >> Well, let me ask any further discussion. Okay. All in favor? I I >> Motion passes. Okay. Thank you. Okay, we're uh item number two under the reports of attorneys consultants Mariner

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Institutional. Brad, what do you have for us? >> Afternoon everyone. We have our um March 31st quarterly report halfway through our fiscal year and um

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it was a negative quarter. um things were pretty stable up until the end of uh February and then um March was very very weak given uh Iran and what's going on over there. So if you flip to page three of the uh

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quarterly report, you can see what happened in the quarter for the various stock and bond indices. On the upper right hand side there in blue are the domestic equity. You can see uh S&P 500 was down 4.3%.

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Um you know we talked about in this past we you know benefited from not having international for the last decade but the last year it's worked against us as international equities have done meaningfully better than US equities and you know you can see that in the one year in the bottom right but for the

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quarter you can see in orange international equities that down about 1% so less than than going down less than uh what domestic equities did and then bonds were about flat a a little bit negative. Um you know given uh you know kind of

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particularly in March some interest rates uh the interest rates going up in in in uh light of kind of inflation expectations. Um so I mean that's the big wild card right now. What's going to happen there subsequently to this month has been

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incredible as we had the ceasefire and the market's very very optimistic. The S&P 500 is up um through yesterday over about 9% month to date. Um international stocks up 10%.

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Small cap stocks up 11% this month. Um and um so we you know basically recovered everything that we we lost and then some. And I'll give you some updates in terms of the the market values etc. But um and you know the big

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impact obviously oil prices have spiked up. You can see at prices at the pump right we went from before uh the uh I don't know war's the right term but you know we were in at least in Orlando around $3 and now it's about $4. So we

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had you know about a you know 33% jump in gas prices. You saw a barrel of oil go from what, you know, we got as low as $55 a barrel to over $110 a barrel. We're hovering around 100 right now. Um, and that start to bleed into inflation

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numbers. You saw a big jump up in March where inflation was for for January and February 2.4% year-over-year and it it bumped up to 3.3% in March. Um, you know, I think,

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you know, right now, you know, taking the geopolitical concerns and just the near-term volatility associated with that that that war, you know, the big thing coming into year is what what the Federal Reserve do this year and and the market was pricing in a couple more rate cuts. And given the, you know, the

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the rise in inflation, that's kind of off the table right now. I don't see anything happening. Um there was obviously a big issue with um um the new chairman being approved or appointed from uh uh Congress and the

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Senate, but it seems like um I think Senator Tillis came out and said that he's going to not like block that anymore because the investigation of of Chairman Palace is done in terms of his malfeasants on that new building. So, uh, it looks like he's going to get, um,

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approved. But I I, you know, it's going to be hard to see while we're in a war in the Middle East and you have oil prices where they're at of of any further rate cuts at this time. Um, so in terms of uh, you know, the S&P 500,

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the company performance, fantastic quarter, 85% of the S&P 500 beat expectations um, that have reported uh, last quarter. So, it continues to be strong. unemployment continues to be low um you know a little bit higher than it was at a low point but still at 4.3%

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national unemployment very very low but yeah that wild card you know is you know how how fast um can the hostilities end and we can get back to normal and get uh straight at Hormet's um back uh I guess open for business that's the big wild card about what's going to happen for

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the global economy I think Um, flip the page uh get to the plan results. Flip to page 14. So, this just shows you side by side of December 31st versus March 31st. So,

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we went from 21.4 to 20 million. We did have some cash outflows. Um so the number that I have for you given the recovery here is through yesterday we're at 20 back up to 20.8 million.

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Um and uh that that includes um last week we we had to raise about $300,000 to fund some lump sums um that went out of the pension as well. So I'm I may I have a rough estimate of a little over 5% uh month-to-ate return

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for the pension. So, we'll get into the performance later. Um, page 17 shows you the asset allocation. So, we're within policy limits for all asset classes. You can see we're a little over we were a little overweight domestic equity, which worked against us

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last quarter. Um, we're also a little bit overweight fixed income. you know, the big underweight is is to real estate where we're at six versus a 10 um percent, which again worked against us a little bit last quarter given the kind of positive returns from real estate

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relative to the S&P 500. Um I did want to point out to this, we've talked about this in the past, but we haven't gone through this chart all that much. on page 19. So this shows you our asset allocation relative to the median pension in that

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investment metrics all public fund. So you can see you know nothing for us in in global XUS that's international stocks. The average pension has about 15% of that. Um on the whole we're not terribly overweight equities relative of their pensions but we do have a a bet

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towards US versus international although we don't have like you know alternatives or p private equity like we talked about last week uh either. So um I just wanted to point that out in terms of kind of where the drivers of performance this quarter were. You know the average

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pension has 15% in international which was only down one. We have that in in in domestic equity which was down four. So, uh, we're going to look a little bit worse than that, but we should bounce back this quarter hypothetically. We'll see where it comes in. Uh, page 20 shows

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you all of the activity that happened in the quarter. So, you can see on net transfers two things. one uh per our discussion and your approval we uh terminated the MFS growth active fund and put that money um

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we couldn't get access to the um uh the Vanguard mutual fund because of the minimum we I don't know if you guys remember that we were going to do either the mutual fund or the ETF depending upon what we could get into um but we weren't able to get uh meet the $5

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million uh minimum for the mutual fund And so we put it into the um ETF. So you can see that in there. And then also we had a you know last quarter we also had a pretty big um uh lumpsum distribution that we needed. So we had to raise about

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470,000 which we took out of the uh S&P 500 index fund. Uh we had just shy of 97,000 come into the pension from members in the town. And then you can see that big outflow of

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benefits paid of $846,847,000. Management fees were just over 6,500. Other expenses of 36,000 and then you can see the uh dividends and income of about 79,500. The capital loss of of almost 700,000 in

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the period. And what that looks like from the performance perspective is on page 22. So we were down about 3% last quarter. That puts our fiscal year to date at 331 at negative 1.3 net of fees. Um but like

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I said, I'm I'm looking at something around a 5% return this month. So you know, we're at least positive fiscal year to date. Um you see our equities uh domestic equities were down about 4.8 8. I think that's to do a little bit of of the kind

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of the waitings between value and growth. You can see the value index was up 2%. Um, and then while we don't have a full quarter because we did it mid-c quarter, you could see the Russell 1000 growth was down 10% in the quarter. So there's a quarter of value stocks did relatively decent relative to to the

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growth stocks. That's kind of the opposite this quarter what you see. And you know, the market goes up. Growth stocks are up about 12% this quarter and value stocks are up about six. Uh page 23 shows you the fixed income

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managing to appear slight positive at um you know about 0.1% a little bit of outperformance versus the uh Bloomberg aggreate bond index. Um but the floating rate funds uh

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combined down a little bit negative.2% 2% you did see kind of in this uh downturn risk aversion you saw spreads widen a bit those are you know levered loan corporate bond fund uh you know below investment rates so they were you

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know the PGM did a little bit better um than the Aristotle on the whole that was down uh down a little bit and then page 24 shows you the real estate And we got about 1% there out of our

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real estate managers. Both were up about 1%. Story there has been the same it has been the last couple quarters. You know, after that two-year bare market where, you know, values went down about 20 25%. You know, for the last year or so, you know, probably now, you know, maybe

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going on six quarters, we basically been flat from a capital appreciation perspective and kind of clipping the REC coupon that is roughly around 1% per quarter. um hasn't been any real change there and it still you know we've had the 10-year rise a bit which works against real estate um you know it's not

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dramatic we went from I think December 31st the 10-year Treasury was at 4.15 and we're at about you know 20 basis points higher now so it's not dramatic but so I think you know in order to get kind of that next leg up for capital appreciation real estate I think you

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need to see the the longer term rates come down a bit Um but so tough quarter uh but you know I think you know with this recovery we should be you know looking better this quarter uh at least and and positive

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fiscal year to date. This is these are calendar you're reporting calendar >> calendar quarter >> say again >> calendar right these are calendar basis >> so this is yeah so this report is as of March 31st right

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>> yeah so the numbers when I said you know uh that I ran yesterday are unofficial I pulled the numbers from the custodial website >> um and kind of add the the cash that we paid out at lung last week to kind of give you that estimate of

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>> positive 5% returns but that is to be clear an estimate. >> Can you just uh briefly just to educate everyone bring me up to date um on our floating rate strategy and what what's comprised

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in those lever loans? >> What what is it >> what's what's the composition of those leverage loan portfolios? >> They seem >> you'd have to to dig into that and get back to you on that. they they seem to have the best three-year return of all alternatives. So, the annualized return.

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So, >> yeah. Yeah. So, we had good timing there, right? So, we put that into the portfolio to remind the board we, you know, basically >> um it was a way to lower our total fixed income portfolio duration back in 2022

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when rates were starting to go up. So, we took 5% out of our core bonds and put it into that. >> Um because floating rate basically doesn't have any duration exposure, right? you're taking credit risk but not interest rate risk. uh uh because they reset every quarter the the interest

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rate based upon what's going on in in so um and it was a good yeah it was a good good move back then um as we've had basically three years straight if you think about 2022 >> um maybe the last couple months there

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was like spreads widened a bit but starting in September of 2022 the market just went off and you had spreads just tighten for the last three years which has benefited those securities. Um, as no one's been really worried about credit risk. Now, we're in a little bit

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of different you have a war going on. You have a lot of rhetoric about um uh uh you know, direct lending and and and private uh private debt that's going on out there. Um that um you're starting to hear, you know, you're not seeing a lot

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in the data, right? Defaults aren't really moving that much. You've seen a couple high-profile ones, but on the aggregate, you haven't seen a whole lot of increase in um bankruptcies and in loan defaults at this point. Uh but

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there's a lot of lot of uh I wouldn't say newspaper Inc., but I'm dating myself, right? There's a lot of uh headlines out there on, you know, the coming storm in private debt and um and what's going to happen there. There's a lot of uh private debt funds that

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invested heavily in software companies. And if you follow the markets, software companies, you know, valuations have got tanked over the last couple months as everyone thinks AI is going to basically eat software. Um but to get into the nitty-gritty of what

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they hold, Tom, I I need to get back to you. I I don't know all the exposures um off the top of my head. Well, the peer the peer group is is peer index is bank loans. These are these are bank loans. >> That's correct. >> Yeah, that's what

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>> we're not seeing I mean actually >> this isn't this isn't private credit. So this isn't these are you know there's a you know these are mutual funds >> liquidatable >> right? So they're you know one day it it's not like we're locked into these. We can get rid of them whenever we want. Um,

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>> oh actually if you listen to all the bank reports in the last two weeks, I mean the credit is like you know squeaky clean. >> Even America American Express call I was on that call being squeaky clean like better credit than they've had you know in since you know 2019. >> Yeah. So we're not seeing any erosion,

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you know, of >> and yeah, I was actually reading the the Capital One Discover one and who has a lot of exposure to to to like, you know, unlike like Wells Fargo and JP Morgan, right? That's like direct. >> It's not the American Express customer. >> Yeah, exactly. And they're and they they

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they're reporting very very clean numbers and not taking a whole lot of loans. So, it's there's yeah, there's a disconnect between a lot of the I think the headlines um and then what's you know what what at least what they're reporting thus far in terms of um loss

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reserves and things of that nature, >> right? >> Yeah. Just I mean anecdotally because I I I'm sit on your side of the table sometimes this week. I mean I was doing a lot of you know calls this week with you know

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boards and you know if you actually take through this past Friday you know the whole uh international outperformance in the on trailing 12 month basis has completely eroded in the last like you know 6 weeks um the S&P 500 and growth

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stocks have you know far outperformed you know the euro stocks 50. Um and the other the other key thing that was that's happened in the last week we went through a major rotation where value stocks um basically kind of the bloom

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came off the rose because people got you know we're afraid of capital spending and AI it's happening today you know so it vacasillates you know you know dayto day hour to hour what what have you tomorrow you have three big companies reporting um but you know I think that

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that that rotation basically lasted from the end of October through um March 31st and now it's completely swung back the other way. And I don't I don't think you know that we we should be making our investment decisions based on you know a quarter or you know one like one one or

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two quarters of of trend. Um, so I think and I and and just to to that point and something I've never really I never really spent time looking at Brad is on page um on page get to the right spot here. Um page 31

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in the handout. Um maybe you know if we we look at our you know we had a a legacy of of being completely you know a value manager in terms of our equity allocation and um you know when we look at page 31 now

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upper right hand uh corner rolling three years which to me I've always believed like rolling three and rolling fives are the best way to evaluate you know uh returns for portfolios that um I think

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that that looks pretty good to me, you know, because it looks like we're up in the, you know, first and second quartile on on a growth grow below average. You know, you're right. Right. For a long time up until when was it 2021, 2022, we had, you know, a very conservative posture of only having

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>> managing the peer managing a value portfolio as well as the bonds. And then we kind of diversified and and you know we stumbled a little bit because we picked a couple bad managers but I think you know the move to put 80% into the S&P 500 index fund a few years ago is a

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prudent one and um yeah it kind of speaks to that's a good >> the other the other big factor has been the the dollar you know since the tar tariff policies last this past April >> um tariff tantrum or liber liberation

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day whatever you want to call it. um you know the dollar I guess on the euro is basically devalued probably almost 15%. You know 12 to 15%. Versus like the euro and so that you know automatically if

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you had if you were invested in in euro stocks in your in the you know um euro currency you would have seen you know a you know a gain on that just on the exchange rate. So you know we don't know

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we don't know if that uh devaluation of the dollar will continue. >> So >> right I think that's >> I mean I think I guess the question the question would be like would we want to >> put money seems to me like in you know allocate to international now and I

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guess my my view would be no at this point that wouldn't conclude that. Yeah. >> Yeah. It just if you know I think we have the best businesses in the world, right? Not not that there there's some good internet but on the whole I think

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it's structurally I think you know you know the question as a board is do you have are you okay with the bet relative to other pensions right it's worked out for the decade but this year has been bad right we would have been much better

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off um um you know I think you know there's a lot of variables that that you're talking about that I I have zero ability to predict what's going to happen with the dollar and that's a driver of of the relative performance for a US investor um uh in international

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stocks. Um and while they're still cheaper statistically than the S&P 500 in terms of the the the PE multiple, right, it's certainly not as cheap as it was 18 months ago before you had this 40% rise

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in international stocks either. So um I always said cheaper for a reason, >> right? We don't they don't have the productivity and the managerial science that we do, you know, here in our country. I mean >> is are our our cash our receipts and dis

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dispersements category? That's our cash. >> Correct. >> Okay. And is that in a what is that what is the yield? What is that invested in? >> I'd have to look it up, but it's somewhere in the high threes right now. It's in a a Goldman Sachs money market mutual fund. >> Okay.

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>> So, it's not in it's not in a uh like a >> BDP >> a bank bank deposit >> bank deposit or what is it? Bank BDP. >> Yeah. >> Can you confir >> I can pull it up right? >> Yeah. Can you confirm that? >> I know what the ticker is. >> Right. So, that's like a like is a a

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government >> Exactly. Yeah. It's a Treasury obligation fund. Um it's very very conservative. It's not in >> like you you know there's different flavors of money market right you could go into something that has all repos and

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um you know like you know CDs etc. I always recommend and recommend it to the board when um uh Sound Trust asks just go into the the you know you you might give up a couple basis points that return but in a 2008 scenario you feel

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good that you're not going to break the buck unlike you know some of the the the money markets at that time. Um, >> so so our allocation out of of uh real estate which I'm looking at a net

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transfer out of principle that's on page 21 that basically went into cash but then it got kind of like >> that 3.3%. >> Right. Okay. Good. Great.

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>> It's almost as bad as Northern Trust. >> The worst. Um the the the transfer out of to make sure I'm reading that on a on a fiscal basis on page 21,

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>> the transfer out of principle of $426,000. So, um, a few quarters ago, if you remember, we decided to put an additional redemption in for both managers, and Principal basically paid it off, right? And I told you guys it might take a few quarters. Well, Principal had enough liquidity that they

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they paid it all off, >> right, >> right away. >> Um, Intercontinental still is is is not in that that mode as you can see the difference there. But, so that was so that just got we got it wired to the R&D account. We used that to pay >> pay benefits. >> That's that's what I that's kind of

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where I was going with that. because we had, if I recall correctly, we had kind of kicked that can down the road and said as a board that we were going to reconsider, you know, real estate investments at some point, but but now that that allocation has been depleted

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by transfers basically. >> Dispersements, right? >> I mean, we can always put money to work there, but in terms of like the plumbing, but >> it wouldn't be coming out wouldn't be coming out of cash now. See, we we we've had to pay $1.1 million out in benefits

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on the fiscal yeartoday benefits cuz we had some big >> and we knew that was coming. So, we decided just to let it sit >> Shaw Benham and um Villers vacation. Those were >> Yeah. So, we just had a couple last week. We had a big one in the first quarter as well where we had to pay out a big one. So, yeah. So that all just

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went out and >> um again, so right now, you know, if we wanted to reallocate from another area into real estate, we have that flexibility. >> Um it's not a screaming by to me right now in terms of what I'm hearing from the our research and and talking to the

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real estate managers. So I'm not going to recommend that to you, but we have that ability whenever, but I just we just need to take it from equities or fixed income. Um, we could I mean we could have a little bit of cash right now, but I mean we're we're pretty much

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in line with where we typically are about 1 to 2% as my fellow trustees here said. So the the leverage loan investments that we have those are in daily redeemable funds. >> Yes. Mutual fund. So we can be tactical

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with those if we wanted to. >> Yeah. Yeah. >> And that's why, you know, a few quarters ago was early, but you know, we took that down from 5% to 2 1/2%. >> As spreads came back in, right? You know, we were getting sofur plus 6% back

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in 2022 and it's come down to sofur plus three or four. Um, and but so we have that ability. We can we can get rid of it or we can add to it at any time. And it's not like a private fund where, you know, if we were to make an investment in a private debt

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fund, you know, it might took two years to get invested. That's not the case with these. >> But even as a floater, since the Fed hasn't cut rates, it's sustaining a fairly high rate because the short rates are still sticky. >> Yeah. Right. Any other questions?

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So just a quick observation uh if you might make it. So on n page 19 where you show uh pension fund allocations it's pretty heavy duty for alternatives combined with private equity isn't it?

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Yeah, I will note we have the population, right? So, you'll note for alternatives, you know, there's approximately a little over 400 funds that have reported so far. Um, 200 have

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alternatives. So, so not so 7% is of the 200, not of the 400. Does that make sense? So, of the funds that report alternatives, they have around on average 7%. Half of the sample size don't have alternatives. Does that make sense? Yeah, it makes a little more >> those equal weighted or dollar weighted

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based on the on the size of the of the plans. You don't know. >> So, these will these will be market value weighted and these are all self-reported from, you know, we put your data into a database and other consultants do that as well. >> So, it's going to be based. >> So, you have if you have multi-billion

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dollar plans in there, they're getting dollar weighted in terms of the construction of those medians. And >> that's right. >> Okay. Yeah. So, you could be very biased. So you have no idea how to interpret that. >> Yeah, I I get what you're saying. Yeah. Yeah. So this would be So this sample

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would count CalPERS equally to Indian River Shores. >> Oh, would count. Yeah. So it's not Yeah. Yeah. >> So it's not dollar weight. >> It's just if there's 400 pension funds, it's Yeah. You're one and they're two. >> Okay. Well, that's more meaningful than Yeah.

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>> Yeah. Exactly. Yeah. Okay. Well, any questions? >> I appreciate your time. Thank you. >> Thank you. >> Okay, we go to item number three, Bonnie. >> Yeah. So, another in the line of things

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that three years ago we probably wouldn't have talked to you about. Um, so there is a regulation from the Department of Justice on making sure that your material that you place out on the web is um, a ADA compliant and

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people who are not cited or people who cannot hear um, are able to access it to the same extent that that everybody else can. >> It's page 35. the the regulations um were to go into effect for um cities

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that have populations of more than 50,000 last Friday and for uh cities that have less than 50,000 population next year at the same time. They've just extended both like last Monday, April

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20th, they extended it one year for each of those categories. So we have some time to really consider this. I think the important takeaway for for your pension board is that as we enter into new contracts or amend contracts, we

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want to add provisions to the contracts for our service providers um to say um you know you need to make your documents web compliant. Um even if it costs money to do that. um you all don't have a web

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page yourself, but there are some documents that the town has to uh put on the on their web page. And so to the extent that they don't have a vendor that can convert these documents into something that's ADA compliant, I'm

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guessing they would ask us to make those documents ADA compliant. So there's there's five documents that you have to put out there. One of which is the actuarial evaluation. Um there's another document that's kind of like an actuary evaluation that you have to prepare for the state. Um the 112664

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report is what you see on the cover page. Um there is a one-page summary that you have to provide a link and and I think that's ADA compliant because it's at the state level that you link to. Um there is another document that you have to produce that's a comparison

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between your um actuarial assumed rate of return and your actual rate of return. Um that's generally just a a one pager um that you get from your investment consultant. And then the last one is your actual expenses which can

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come from either the city's consolidate the town's consolidated annual financial report. um it can come from the administrator. Um there are various places that you can get it and and I think it's actually in the actuary evaluation. Um so so that data all has

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to be web compliant. Um so I think that's again the biggest place that you all will have that needs to to come into compliance. The web page that's available for you through your administrator is behind a a a password. there's members who go into it are the

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only people who can see that material. Um you don't have a a public facing web page. So this will be something that we talk about. Um so I'm I'm assuming that Indian River Shores will be in compliance in 2028 which is the under

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50,000 population. I'm sorry, we can't we can't hear you. >> I apologize. Uh I was just uh clarifying the the date to him and and it's my understanding that most websites at least when you create new websites that they automatically have that function

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built in. I'll have to look more into it myself. But if it's just a we talking about a transcription or for the auditorially disabled, >> there are certain things that need to be done. >> I I can tell you that I have taken a

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class and like I know I know about this much of it because a lot of it had to do with coding and computers and when I went to school yeah >> you know computers were just becoming the thing. Um so we didn't get a lot of

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coding uh but there are certain codes and and I think that software is becoming better at making things compliant initially. Um you can go through a process with um the Microsoft

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Office and the Adobe >> but it's not necessarily the beall and endall because there can be some things that are not compliant. >> Correct. So we just need to make sure and charts and graphs are really hard, right? >> Um we don't have a lot of pictures in

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our world. Um we don't have a lot of sound that that we provide to participants, but we are really heavy on the charts and graphs. >> Understood. >> And so that's really hard to make health cited people who are not cited

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>> understand what we're trying to >> Absolutely. >> Okay. I'll I'll confer with a friend of mine. he is a programmer. I I have some mild programming knowledge, but um I'll confirm with him just to see what his thoughts on it are. And then I'll >> I know that early on,

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>> this is probably three or four years ago, um Foster and Foster had a vendor would do their evaluations and I think it was like $1,500 per per valuation if I'm remembering correctly. >> Is that to make each document compliant, you mean? Or

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>> $1,500 for the entire book? So 40 45 pages or so to make it make to make it compliant. >> Um I have talked to some actuaries now who are talking about bringing that inhouse because the software has become so much better. Y

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>> but their vendor was charging them now eight like $8 a page to get that done. >> Okay. So, um I think that the technology will meet with our requirements at at some point, but we also want to make

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sure that if if you you don't have to go out and get a vendor to convert it that that you would pay for it through through your your service providers. >> Absolutely. Understood. Thank you. >> The the memo that we have online says

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April 26, 2027. It's 2028. it. So, it is now 2028. Okay. And that happened last Monday. >> Great. So, put that you add that in the minutes. >> And then Bonnie, can you if you're going to handle this for us, will you give us

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an estimate as far as what it's going to cost for you to do it? >> I'm not going to add it to everybody's contract. Just as they come up for renewal, >> add it into to to people's contract. >> Okay. Thank you. Um the next memo is just about your financial reporting. Just a reminder

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that you have to file online by July 1st. Um your financial disclosure information will you have your first reporting requirement is now. Um you have 30 days from from your uh beginning to serve on the board of trustees. Um

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and then um that will fulfill your requirement for this year. But next year by July 1st, you'll have to file it. Again, you have the opportunity to pull up what you've filed in previous years and just make changes to that. You don't have to recreate the document from the beginning.

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>> And I think the city already got you set up with the Department of Ethics. Um so you should be able to go on and log in. >> Fantastic. I'll offer but I'm pretty sure when you came on the >> we're all due this year though >> everybody by July 1st right >> and it's electronic right

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>> it is electronic right you have to go online so I can't help you with getting online >> no I did it last year I just can remember if I did it paper first and then did it electronically or not >> first year you were here probably was paper and last year was was electronic >> okay thank you

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>> confer with you on that >> what's the site IDC or something. >> The electronic financial disclosure management system. >> Yeah. >> Have half have my memo. >> Okay. >> Um it's there. Gotcha. >> Yeah. If not, if you want, just send me an email. I'll send you the link.

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>> Should should we expect a prompt from >> the state anyway or no? >> No, they may send you an email. I >> was not thinking about this at all. >> They don't send letters. >> I think last year I got one. >> I think they send out emails, but I can't but I can't be sure. I'm not. >> If you want, I'll just send everybody the link. If you could, that'd be great.

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>> I'll send everybody the link. >> Okay. >> Yeah, I'll send everybody the link. This way, everybody has it. You just click right on it. Send the link to the Department of Ethics. >> July one deadline. >> July one deadline. >> I'll probably send it to you next week. >> Thank you. >> Yep. >> Fives don't begin to acrew until September 1st, but

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>> just one question. When do they have to file form one or form six? >> Form one. They file form one. >> Okay. Has that lawsuit been resolved? >> I'm sorry. >> There was a lawsuit over 500. Yes, >> it's been resolved.

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>> We filed for six year. >> Uh the next item is share plan distribution review. So, um we had some confusion about the distributions that we uh we made to the to the most recent retirees.

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And so we kind of wanted to just have a discussion about what the ordinance says and um and ultimately our conclusion um about it. So um the the share plans essentially are available for

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distribution to those people who are members in the plan on September 30th. So you get you get a distribution and you get an allocation of the earnings of the pension plan uh based on what the p the plan has earned and you get a prata

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share of that earnings. >> Um you go >> I'm sorry I couldn't hear you. You get a what? >> You get a prrata share of the earnings and it's allocated on September 30th. So it takes so you know we get the report about six weeks when you all accept it

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about six weeks after the end of the quarter and then the document or the the calculations are done to determine what the balances are. So so you're looking at eight weeks >> yeah give or take

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>> um to get the distribution. So, so at that point, you know, people who leave after September 30th, um who don't leave on September 30th can, you know, they'll their distribution should be available um within 8 weeks after the end of the

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fiscal year. So, so that's how it will be done in the future. Um you know, everybody's balance as of the prior September 30th will be paid to them. um administratively

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um if they if they leave between September 30th and um 8 weeks later um it won't be until after the 8 weeks, but everybody else should be able to be paid their their balance at that time because there won't be any earnings after

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September 30th. >> Yeah, it's just a timing issue. somebody leaves on October 2nd, we have to wait to go through the whole valuation process. You know, probably a couple months later, at which time the share plan gets updated and then so they might start

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getting antsy. It's like I left in October and it might be December, January. But those who leave say in, you know, like March, April, very quickly, we'll be able to get them their prior September 30th balance because it's already been done. So, it's just a

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timing issue, but it's such a small plan. Unless you've got members leaving right in that October through December time period, there there won't be any waiting. It just be an administrative. We'll get them set up for their first check from the defined benefit and then the share plan will happen at the same time.

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>> Did you go over the holdback issue or >> No, we don't we don't need to do a holdback. >> So, we're not going to >> Okay. Yeah, >> they would just get their balance as of September 30th. Okay. >> And there's so there's no earnings after that period. >> Okay.

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>> Until the next allocation and earnings distribution, >> right? >> Um and then the drop plan you all had decided to do the quarterly quarterly um allocations of earnings and so members would be able to again we have to get we

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have to get the the balance or the report of the earnings. It takes about six weeks from the end to you know for you to get the information and then another four weeks or so to get the calculations um from from the actuary but you know people would be able to get

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them on a quarterly basis >> and you all remember that you decided that the last meeting the policy where the drop updates would be quarterly which Bonnie just mentioned. >> Yeah. >> And neither was I. Yeah, the um up until

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the last meeting, the drop updates were being done annually. >> And so, of course, members in the drop plan like that's a long time to wait. So, >> they made requests of the pension board, >> uh, hey, can we get them more frequently? And so, the board approved

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quarterly updates. Mariner gets us the quarterly returns, typically about six weeks after the end of a quarter, and then we'll update. And that's that's how we handle 99% of drop plans in the state quarterly.

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>> So is it safe to say that the issues with some of the other members that have recently left and again this is just third party information. So um withholding 10% for up to a year etc

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etc. That that's all been resolved. >> Yes. because they don't get any earnings after the end of the end of the quarter. >> Okay? And that scenario is is very standard with most plans is to to hold back that 20%. But with this plan, it

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wasn't being done historically, so we're not going to to do. >> So, we're going to put a communicate out via uh Mr. Gomez to the members that you're going to get your quarterly drop statements. You're going to get your drop, excuse me, I misspoke. You're going to get your drop statements

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quarterly and then once a year as we've been doing, we get the um >> share balance, >> right? The share plan distribution. >> Yes. >> Plus or minus 10 weeks. >> Well, yeah. >> Now, as far as the timing on drops, just

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know you're taking notes, right? But roughly mid May, mid August, mid November, midFebruary, just give or take. That way, because I know they're getting antsy if the market goes up 10%, but hey, you know, and if it's down 10%, they're like, hey, you

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know, everybody wants their drop right away. So, May, August, November, February, >> mid, >> mid, give or take um should be the expectation. Okay. >> So, I also wanted to let you know that

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um we have the new special tax notice which came out which is um the IRS safe harbor notice. So, in the end of 2022, there were some substantial changes that were made to um exceptions from the

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early retirement um to to rollovers for um public safety officers um that we wanted to get out right away. Um this special tax notice, which has all of the IRS language in it, came out the

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beginning of this year, so three years We have waited to get this information. In the meantime, we made some changes to the special tax notice to let our members know um some of the changes that

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were there, but we, you know, we put in lawyer language like be sure to check with your tax advisor, but these were the changes that were made to the Internal Revenue Code. Um we have the new IRS recommended language, and if we follow this language, we're deemed

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compliant. So, so we have updated that document for distribution to your members. So, this is something that we give to members when they get a refund of contributions. This is the what we give them if they take a share account distribution. If they take a drop distribution, this is the document that

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they get um in order that they know exactly, you know, how to how they will be treated in that process. So, that's just for your information. It's actually a good document. Um, if you have specific questions about how to how to manage withdrawals,

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it works really well. >> And that's all I have for you unless you have questions. >> I did just add on there legislative update. I didn't know if anything new had come down at all or if there's nothing to report at all >> on No. >> Okay. Okay. Nothing on the legislative update.

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No, I think they're they're delaying the property tax stuff till the next special session. Couple of signs rightfully so. Okay. Um, any other discussion on these uh reports, gentlemen? >> All right, we'll move on to um Troy, a

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review of the cyber security policy and the fiduciary liability policy. >> Sure. Um so we do this um I think your policies are each year. Um so the cyber security policy uh estimate came in at the same as last year. Um so that is the

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actual liability part of it that if something does happen that the that cyber liability insurance would kick in. So if there's no questions about that, I'd ask for a motion to bind to the coverage um at the same rate as last year. >> Nothing's changed in the policy coverage

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wise. I'll make a motion uh to renew the cyber security policy. >> I'll second a motion. >> All in favor? >> I >> I Okay. And the same scenario uh your uh fiduciary policy al also came in I think

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it was uh $15 more than last year. So it's $4,9151. I think last year was like uh $4,69 or something. Nominal uh concern. I'll make a motion to uh renew that fiduciary liability policy as well.

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>> And I'll second that. >> All in favor? >> I. >> Any opposed? >> Passes. We have the update on the state annual report. >> Yep. So, uh we prepare the annual state report uh for you every year and we send

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it to the state um which we have done. it has been sent and then usually in mid August is when we hear back how much money you're getting back from the state. Um so just wanted to report that that has been uh filed and uh the first meeting after um the August uh time when

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it comes out I'll report back to you kind of what the the amount is. Uh let's see. So that's that. And then moving straight down to educational opportunities there's uh two coming up. FPBT annual conference uh June 28th through July 1st is coming up. that's

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already opened. If you're interested in going to that conference, I would get with me immediately. Send me an email. Um I'm going to send you our analysts have been nice enough to to create a flyer with a um what's the scan thing that you do? Um >> QRC code >> that that your QR code >> the QR code, I'm sorry.

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>> So basically the analyst is the one that that signs you up for the class and it sends you the confirmation. Um and then you book your own hotel uh pay for that yourself, track your um hotel cost, your mileage, and your food. Um, and then, uh, but from that QR code, there's some

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questions that have to be answered before we register you. So, if you want, I will when I send you the link to the ethics department, I'm going to also send you that uh, attachment, too, so that all you got to do is do it with your phone. You can uh, send it directly to the analyst and she'll know to sign

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you up. Okay. Um, so that one is the most popular one. That's the summer big conference. I would recommend if you want to go to that within 15 to 20 days, I would get that in because that hotel will book. So, you can still possibly get in, but you'll be at a hotel down the road. Instead of walking out of your

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room and falling downstairs, you'll have to get an Uber or something. So, I recommend that you do this sooner than later. The second one is going to be I just put this on even though it's way out just for planning purposes for you. Um, it's going to be uh the trustee school September uh 27th through the

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30th. that's also in Orlando. So, and I will I'll send out that QR code for that one as well as we get closer. Other than that, that's all I have uh for my report. Okay, last item. Well, almost last item,

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the consent agenda. I'm going to make a motion for approval of one, two, and three unless anybody has any or we can have a discussion after um an approval on it. >> So, make a motion to approve the the

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consent agenda items 1, two, and three. >> Seconded. >> Was that Will? Sorry. >> Second. >> Any discussion on it? Um I'm just going to want to make a comment that I realize that the invoices

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seem a little higher based on um the activity of people leaving and phone calls and other things that occurred right >> probably. I mean that's >> okay >> it will just so you know in general so when we group all three of those items

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in together as the consent agenda we just get one vote instead of doing a uh for each one the fund activity report at the very end um that's going to be on page just so that you know what you're looking at that is anybody who's left the plan whether it's a retirement a drop exit uh if you're not vested and

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you get a refund um so all of that is listed on there um it's just our it's our running tab of what what's coming out of the plan. So, we had two two big ones that left U, which is why Brad has to now scramble to, you know, to pay for those. So, you have a share balance and

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a drop balance uh times two. So, you've got four lump sums coming out at one time, which is why he has to then scramble to move money. Okay. So, and Will, if you have any question about anything today, feel free to, you know, call me. We'll go over it. Okay.

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All right. So, I have um a motion a second. We got this all approved. >> All in favor? >> I opposed. >> Approve the consent agenda. U trustee reports, discussion, and action. >> So, will this is the time when because

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of the sunshine law, you guys cannot discuss anything that's supposed to be discussed here amongst yourselves outside of this meeting. This we put at the end. Um, if there's something that came up during the meeting that you thought about that you want to discuss with the board, this is the time to do it. But outside of a meeting, um, other

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than a meeting time or a date, there should not be any discussion about anything that's going to go on uh that requires, you know, to be put in the sunshine in the in the light. Okay? So, that's that's the way that that goes. >> I know it's tempting, but you really need to not talk about anything that's going to that should be talked about

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here. >> Okay? Or that's scheduled to be talked about here. Sorry about that. >> Do you have uh our administrative balance? Did I Is is that in here or what are the the the balance that we

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used to pay these pay the um these warrants and other services that we're getting >> the balance? I don't know what you mean. >> Isn't there >> isn't there a line item like what we have money set aside to pay? We don't have we don't set aside the money but

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you do create an administrative budget. >> Yeah. Do we have a balance or >> I don't keep a balance. I don't do that. >> So we just set we just set the the budget for the year and then at the end of the year we get a total of what we spent. >> Right. >> Okay. >> Yeah. I I believe there's always margin added.

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>> Yes. >> Because it's an exercise the state requires and there's there's a hassle if you go over because then you have to redo it and send it before council. So there's always margin, >> but other than that, it's just a it's

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just an exercise. >> Okay. >> The budget is the budget. >> Now, I do check it um before Julie, I'll check it before meetings just to make sure nothing looks egregious. So there's nothing at this point that overall we're nowhere near, you know, going. So even if we get close on a line item or we go

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over one line item, uh as long as we don't go over in the total, that's that's what our biggest concern. >> If you want an estimate of that, >> the budget, he can send you the budget. you can send you what you >> I >> I have it from before. I just wasn't was curious if this is were something more updated with with some of the uh

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>> things that we're looking at and fees that were like we weren't expecting to have a consulting a consult for a uh >> um >> cyber security >> the cyber security stuff and things like that. That's all >> on page 20 and 21 of the quarterly report

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>> under the other expenses column that basically is all of that. So if you like while it's not line item, it gives you a sense for what the fiscal year to date amount spent on all of your service providers. >> Okay. Versus what we budgeted for. >> Right. >> Rocket. All right. That that's what I

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was asking. I appreciate it. Thank you. >> Anybody any other discussions? Any other business? No. Okay. Next meeting is set for Tuesday, July 28th, 2026 at 2 p.m. Everybody good with that? All right. And we are adjourned.

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>> Beautiful. Thank you.