Hey, Kyle, are you there? >> Scott, can you hear us? >> I can hear you just fine. Um, I didn't actually have a link for police, so >> you had texted me and asked me what happened. >> Very good. Thank you.
>> Um, is Virginia actually there with you, too? >> I am. >> Hi, Virginia. This is Scott. I didn't mean to step on your toes on the Zoom link. >> I just thought it would be helpful. Um,
and we would interfere with the city less or take less of your time if we publicly noticed, but we just used our account so that you would have that information in advance. >> And that would definitely I don't have a
problem with it, but from my understanding, they connected that to the city clerk duties to make sure the Zoom link went out that way. Um, so I really personally, me don't have a a problem with that, but um, not to try to undo what they've already established
for the city clerk and our account. Um, >> I I I understand. I just wanted to apologize and >> because, you know, >> Yeah, I think it was just an oversight. She did not actually put them out there, which is why you didn't have them
because we had to go in and schedule the meetings. They weren't there. Um, I know she on a hand >> in the future. Then it's going to become three Zoom links on each quarterly meeting date. So it ends up being an additional task for somebody else and I was just hoping to save you that.
>> Right. Okay. >> So I just I also wanted to say thank you. Are you >> okay? We can start with her. Yes. You got to teach me all over the >> You got this.
>> All right. >> I'm so glad. [laughter] Thank you. Remind me, Brett. Now, what do I do? I said, "Bring it to order. Hit it." >> Yep. And then we start. No, >> you don't hit anybody with that.
>> Try not to. >> They pretty much take over the meeting there. Okay. Thank you. Thank you, Rick. Yes, sir. Appreciate it. We >> have to approve the minutes though. >> One of the first things we do. >> Yes, I saw it. >> And I say everyone had an opportunity.
>> Okay. >> Get the attorney on the law. >> Okay. Hi, I'm here. >> Oh, there you are. Very good. Thank you. >> No problem. >> Okay. >> Well, first I need to bring it to order,
right? >> Get the thing. >> Yeah. >> We bring this meeting to order. >> Got my attention. [laughter] Okay. >> So, the meeting has been called to order. Go ahead, Miss Cow.
>> Thank you, Chair Marcia Cardi. >> I'm here. >> Alan Bush >> here. >> Brett Dennis >> here. >> Chantel Pierre >> here. >> Chair, we have a quorum. >> Excellent. Can we proceed with the m uh with the meeting? Uh the first item is
the approval of minutes. Have everyone had an opportunity to review the minutes? May 27th, 2025? I'll make a motion that we approve as as written. >> Second. >> So moved.
>> Okay. >> All those in favor? >> All those in favor? >> I. >> Any naysay here? >> They are not here. So it has been approved. Can we move forward with Mr. Michael
Brennan with the BCA report? >> All right. Good afternoon. Um, >> I'll quickly start. So, I have a few handouts for you. >> Uh, the first one we'll go over is an updated investment policy statement. >> All I've passed out is just the red line
version of what we're changing. Um, and so you'll see at the very bottom of the front page, uh, adding section three. Uh and this is language from the state uh per legislation uh regarding prohibiting direct investments in companies or uh
firms that boycott Israel. So again, not something we have control of. It's been uh requested by the state, so we need to add it to our to our plan. The good news is it shouldn't impact any of your investments or it certainly won't impact how we uh manage your funds. Um but
again, just state directed. So wanted to make sure we update and are in compliance with that uh per state uh guidelines. So I will pause and allow you to review it, ask any questions and then uh make a motion to approve.
>> I just have one question. Yes, this is not retroactive. this effective like today or >> so when it's approved it'll go into effect in 31 days I believe in 30 or 31 days it'll be effective um but it's not changing any of your investments or
anything like that so it's just going forward uh say we were to hire a large cap manager that invests in individual stocks um they would have to acknowledge this language and make sure that any of the any of the investments
they're directly buying are not boycotting Israel So to my knowledge, the only large name uh that you might recognize is Unilver. Uh they own Ben and Jerry's and that was a company that was boycotting Israel. So that would be an example of a security
we wouldn't be allowed to hold directly. >> Okay. No further questions. >> Is there a need to vote for this reported or? >> Yes. Yeah, you'll have to move it and vote on it just to approve. Um, assuming
you don't have any issues with with adding link >> and we have a motion, please. >> I'll make a motion that we approve this uh amendment policy. >> I'm sorry. >> No. >> Any questions? >> Second. >> Second. >> Okay, cool. >> And then that's when I say any questions
after the first and second. >> All in favor? >> Any questions before I say all in favor? >> All right. All in favor? >> I >> I >> Thank you. It has been moved and approved. >> All right. Thank you. And uh we'll get a signature on the final IPS um after the
meeting. Uh the next thing I have for you is this handout. And this is just a quick update. So it's actually been quite a while since we met. We uh we missed the second quarter uh report which I'll cover just briefly. Uh and then obviously the third quarter report ends in September 30. So a lot has
happened since the end of September. Uh so this market overview uh covers kind of what what's been going on in the markets since the end of September as well as a little bit of forward looking what we can expect or hope to expect going forward. So on page two of the handout you'll see this chart right here
uh and this is an update on markets through uh the week ending November 21st. So the week before Thanksgiving uh and what you'll see is we had a great October uh markets performed very well. However, November rolled around and markets started to trade lower. Uh the
big reason for that and you'll see in a few few slides is a lot of the large uh tech AIdriven companies have gotten very expensive. Their valuations are what we call a little bit frothy. Uh and I think investors have taken notice of that and
we've seen those sell off uh over the past couple weeks. So Nvidia is the big name. It's led markets the past few years. Uh they're the big name in the AI semiconductor space. uh they sold off by about 15% from their all-time highs recently. Uh a name like Tesla who falls
in the magnificent seven so that's those seven uh large cap tech growth companies that have led markets the last couple years sold off by about 25% uh from its all-time highs. Uh and so you'll see in this chart for the week ending September 21st right in the
middle the markets were down about 2%. Now, fortunately, you know, the first three days of last week when the markets were open, uh, we rebounded significantly. We were up close to 4% last week alone, >> excuse me. So, as we sit [clears throat]
year to date, the markets are up about 18%. So, the S&P 500 is up about 18%. Um, however, you know, looking forward, we are a little bit worried. we started to get some labor data uh that was a little bit delayed by the government shutdown that's showing the labor
market's a little weaker than we had expected. Um but contrary to that we saw Black Friday and Cyber Monday um spending increase year-over-year. So Black Friday $6.4 billion were spent. Cyber Monday 11.8 billion were spent
which were all increases and all-time highs. Uh however, what's interesting when you dive into the numbers a little bit, we actually saw order volume. So the number of purchases made was actually down 1%. And so how do you get record high sales with lower volume? >> Increased prices.
>> Exactly. And so what we saw is the average selling price was about 7% higher than last year. Some of that is inflation, some of that's tariffs. Uh and so we'll talk a little bit about that in some upcoming slides as well. Uh the next page, page three, as I mentioned at the top of the market, we
are getting a little bit expensive. And so in that box, you'll see the second line down forward PE. PE is price to earnings. So that's how much you're willing to pay per dollar of earnings for companies. Um, and so that multiple you'll see at the [clears throat] the
very far right of that 22.9. So about 23 times that's saying right now investors are paying $23 per dollar of earnings for the S&P 500, the index, which is expensive. It's actually higher. So it's a higher valuation than we saw in the previous two market peaks in January of
2022, which you'll see just to the left of that last column, and then February of 2020. So again, we're starting to get more expensive and that's why we're seeing a little bit of volatility in the markets as people uneasy paying these valuations. Now, the good news is if we go all the way to the far left in 2000,
the.com bubble, we're not up to those valuation levels right now. So that's speculation. Uh we're we're certainly not at that level of exuberance, which is a good thing to see. And if you look at the next page, uh those top 10 companies, so it includes the Mac 7, which is Nvidia, uh
Alphabet, which is Google's parent company, Microsoft, Apple, Meta, which is Facebook's parent company, Amazon, and Tesla. Those seven along with JP Morgan, uh Broadcom, and Birkshshire Hathway. Those are the 10 biggest uh
companies by market cap in the S&P 500. They now account for over 40% of that entire index. So there's 500 companies in there. >> Those 10 account for over 40%. So again, it's got a very topheavy market right now. >> The good news on that chart on the right hand side of page four, you can see
their their market share 41.6%. Right below it, their earnings. So how much earnings they're contributing uh in the index is at 33%. Which that's a very strong number. So they're contributing about a third. Again, not quite this uh up to the 40%. uh but much different
story than what we saw during the dotcom bubble when a lot of those high-f flyers with high valuations didn't have the earnings and sales to support those valuations. So here there's a little bit of support for how highly valued they are and we saw the reason last week
rallied is we got Nvidia's earnings for the quarter and they announced they beat on sales, they beat on earnings and they beat on expectations going forward. So, uh they're expected to the uh market was expecting them to um produce about 62
billion in uh revenues for the fourth quarter, the quarter we're currently in. They set the expectations at 55 billion. So, uh they've rallied last week um based on those outperforming expectations. They're setting a high bar for themselves. So, hopefully they can
they can keep meeting those standards. Uh the next page, page five. Uh the benefit of your portfolio, we have a mix of actively managed and passive or index funds. Um index funds have been very hard to beat. Part of it is because like I just showed you, there's a large
concentration. And most active managers aren't willing to hold 10% in one company from a risk standpoint. That doesn't seem prudent to them. Well, the market holds what the market holds. And so names like Nvidia and Apple and Microsoft all garner, you know, five to 15% depending on what index you're
looking at of the index uh exposure. And the good news is the markets are very dynamic and change pretty frequently. This chart here on page five shows the top 10 by market capitalization in the S&P 500 going back
each decade. So most recently 2025 back to 1505 1995 and 1985. And the one thing you'll notice here is there's significant turnover in that top 10 on a decadeby- decade basis. So >> if you look back to 2005 only Microsoft
is still in the top 10 as we sit today. And even looking back just 10 years only four of those names are still in the top 10. JP Morgan, Birkshshire Hathaway, Microsoft and Apple. So the Broadcoms, Teslas, Meta, Alphabet, Amazon, Nvidia, those are all new entrance into the top
10. Nvidia is the largest company in the world right now. They weren't even in the top 10 10 years ago. So by having exposure to that index, you're also investing small pieces in some of these smaller companies like a Palanteer that you may have heard of that are making
huge moves and who knows in 2030 or 2035 may find themselves in the top 10. Um, one last interesting fact on this page. If you look at that 2015 column, you'll see the entire uh size of the S&P 500 by market cap was about 3.2 trillion in
2015. >> There are now four companies larger than the entire market was 10 years ago by themselves. >> So, the largest one, 4.4 trillion. >> Why? uh just the growth uh and uh
prevalence of technology and AI. >> Technology. Yeah. Okay. >> Yeah. And so Apple, Nvidia, Alphabet, and Microsoft are all north of that 3.2 trillion. Wow. >> In assets. And Tesla just recently uh
became the first automaker to eclipse one trillion in market cap. So not Ford, not GM, >> Tesla. So again, I think that's one of the benefits of using the approach of blending both active and passive. Um the active managers hopefully hold up a
little bit better when markets fell off. They have the higher quality names in their portfolio. But when markets are roaring and we don't know where the top performers are going to come from, uh the index takes advantage of that by having exposure everywhere. So, uh, interestingly enough, the MAG7, which
has led markets the past few years, only two of them are actually outpacing the S&P 500. So, Google's up about 67%. Nvidia's up about 34%. The market's up 18. All the other ones are up between 15 and 5% year to date. So, we are seeing
some broader uh performance in the in the markets, which we like to see. We don't want to see the markets carried by one or two names every year. uh which we have seen in uh 24 and 23. Uh and there's 25 companies that are currently outperforming Google. So Google's the
26th best performer in the S&P 500. So we've got 25 other companies that are outperforming it here today, which again is a little bit uh a little bit healthier of a market than just one or two names doing very well. Now, if we flip to the economy on page six, just want to quickly highlight the labor
market. I mentioned that we have started to see some cracks in the labor market. Again, we've had delayed reports uh because of the government shutdown on federal labor data. Uh so we finally got September numbers in a week or two ago and it did show an uptick in the unemployment rate. We went from 4.3 to
4.4 which is still a healthy number. Anything under 5% is considered full employment. So we're still well within that but we certainly don't want to see that continue to trend up. Uh, additionally, we saw continuing claims for unemployment benefits jump up uh to nearly 2,1,974,000
and that was a new cycle high. Uh, and so again, that just goes to show that maybe the labor market is not as strong as we had suspected it was. Uh, and gives a little more support for the Fed to potentially start cutting rates more aggressively. So, the Fed has cut rates
twice this year. Um there's an expectation we'll see another rate cut uh this month in December and then two or three more rate cuts uh next year. Now the Fed's mandate um is price stability which is inflation and full
employment. So if the labor market's weakening, it gives them support to start cutting rates. However, on the other side, if inflation and prices remain high or increasing, that supports the other case where they should remain neutral, not cut rates until prices
start to come down. So, again, a little bit of a conflict there uh in their mandate because we have seen inflation continue to tick up as we showed with uh the Black Friday and Cyber Monday pricing. Um but also we we'll get into tariffs which is have also had their
impact on on prices in the next couple slides. Um, page seven, uh, and there's just two more charts here, but page seven, just wanted to quickly highlight, um, the US economy is driven by consumption. Uh, over 70% of our GDP comes from
consumption. Uh, and so one thing we're keeping an eye on is the consumer uh, continues to be burdened by debt. So if you look at the bottom righth hand chart, um we've seen auto loans, delinquencies for auto loans, credit cards, and mortgages continue to tick up over the past few years. The big jump
we've seen recently has been student loans. And so if you recall, >> student loans were uh put on a moratorum during the pandemic and that lasted up until this year in May when the federal student loan office started to collect on defaulted student loans. And you can
see that orange line in that chart. It was roughly about 1% defaults. It's jumped up to over 13% considered in delinquency. Uh and not just past 30 days. Most of them are considered seriously delinquent past 90 days because that's that clock didn't start
in May. It started whenever they uh paid their last payment. So which could have been two 2020 or 2021. Uh, and the interesting thing is, you know, at first glance, you would suspect this is really just impacting probably younger adults
in their early 20s, uh, in their 20s, early 30s. It really covers the full age spectrum. There's a significant portion of 40 and 50 year olds that are still paying off their student loans and falling into that delinquency bucket. So again, that's just one other area of debt that's burdening the consumer where
they're having to allocate to these paying off credit cards, paying off student loans, paying off their uh car payments. That's not going to be going into the economy. It's just going to pay down debt. So certainly something we want to keep an eye on. >> But right now, the student loans can't
be discharged, right? The >> uh the forgiven. >> Is that what you're referring to? Or >> No, if they file bankruptcy, that that can't be discharged is what I understood. >> Yes, I believe so. I know the new administration was uh kind of changing some of the stipulation. So, one of the issues is
>> there was certain programs where if you went into public service, >> right, >> um you could get your loan forgiven after a certain time period, right, >> they've done away with that and they haven't replaced it with a new program yet. So, um but I do believe you're correct that uh you're
>> it's becoming more and more of a problem and it's not going away. >> Correct. >> Okay. >> Yeah. So certainly something we want to keep an eye on because if you know the consumer is not pushing the economy forward that could mean some turbulence going forward in the markets. And then lastly you know obviously the
big buzzword for this year has been tariffs. Um but what I will say is you know first there was an expectation that we would see a significant increase in prices from tariffs. we haven't seen the extent that we expected and part of that is because there's a disconnect between
the statutory rate so the rate that's stated by the government and the administration versus the effective rate what we're actually paying and so if you look at this chart uh you can see you know April 8th that was a liberation day when they came out on the white house lawn and had all those huge tariff
numbers uh the statutory rate that day was 30% on average now we've not come anywhere close to that uh and Part of that is we've postponed or been in uh deal negotiations to reduce and set up trade deals. Um
but again it caused quite a panic in the markets and so we actually had a money manager we met with he called it obliteration day not liberation [laughter] day because of the turmoil it caused in the markets. Uh but what you can see the actual effective rate is in that uh box at the very top left hand
side. The last line under January, February, March going all the way to August is the effective tariff rate. And you can see it's significantly lower than what that statutory rate was in April. We actually only had a effective rate of about 6%. >> Now it has been increasing each month.
As of the end of August, we were about 11%. >> But again, that's still well below the new stated rate at the end of September was about 19%. still quite a gap between uh 11 and 19. We're hoping that it stays at 11, maybe comes down a little bit uh
because at the end of the day, we're the ones who most likely end up paying some of those tariffs. So, some companies will eat a little bit, but again, they're beholden to their shareholders. Uh and earnings are top of mind, and so they're not going to eat those for an extended period and cut into their
earnings and see their stock prices fall. Uh the other news that we've seen recently is uh lower courts actually deemed the terrorists illegal uh under the IEPA so the International Emergency Economic Powers Act that the president
justified the terrorists with uh it was found illegal. So now it's in appeals at at the Supreme Court. Um so we don't we won't know you know at least through the end of this year probably early next year whether they are legal or illegal.
But what we have seen is several companies start to sue the government and the reason for that is they want to extend the period which they can receive refunds if the tariffs are deemed illegal. So the big news was yesterday Costco actually announced they're the
latest and biggest uh uh company that's actually suing the government because of this. And and really it comes down to they want to extend the period which they can calculate what tariffs they've paid and receive a refund if they are deemed uh
illegal. And it it creates an interesting problem because say Costco gets re they're deemed illegal, they get refunds for these tariffs. Well, at the end of the day, if we shopped at Costco and paid, we we're we're the ultimate ones that paid for it. So, how will will
we end up receiving refunds as well or will Costco just have a big jump in their bottom line because they received a big refund from the government? So, again, we have some time to to see how this plays out. Uh but certainly something we'll keep an eye on and keep you informed about. And then lastly, um,
so that's one of the reasons I think we're not going to see tariffs rise, uh, significantly over the next couple months is while this is being litigated, I don't think the administration is going to announce new or higher tariffs anywhere. Um, because of having to potentially unwind it. Uh, but also, we
reached a one-year trade deal with China in November. So, uh, that was really where we were seeing most of the tariffs impact uh, was with imports from China. And so we reached a trade deal with China for one year in November. And so I think that'll also help mitigate some
increases in tariffs that were expected. Um and so with that, we'll see what the Fed decides to do. Um again, they meet in a few weeks. Uh it's expected there's a a little bit better than a coin flip probability that they will cut rates again in December and then the
expectation is another two or three rate cuts in 2026. So that certainly does help the consumer. lower rates will help lower lower mortgage rates, no lower auto loan rates. Um, and so that will hopefully be a benefit for the consumer if that does take place. Um, with that,
I will conclude the market update uh and just pause for any questions before I jump into the June 30 report. I'll just cover your performance for the quarter and then we'll do a little bit deeper dive for September uh 30, your fiscal year end.
Okay. >> So, with that, we can just quickly jump in. You have two reports. One on the front says June 30. >> So, we'll go to that first and we will just look at page six. And I will quickly or excuse me, page five. And I'll quickly highlight here. The first
bullet for the quarter ending June 30, the plan earned 1.6 million or 7.2% 2% 7.1% net of investment fees which was right in line with your strategic model at 7.3. You ranked in the top 23rd percentile of other public pension funds
across the country. And your best performers were your actively managed large cap growth fund by Voya. It was up 18.6% for the quarter. Then your index fund for large cap growth, the Fidelity large cap growth fund was up just under 18%.
And then UPUPAC, which is your actively managed international uh it was American Fund Europacific Growth, they changed their name in August uh to UPUPAC EUPAC. Um that was up 13.4% for the quarter. So fantastic quarter.
And the good news is we can close that report and jump into the September 30 is you followed up one good quarter with another. And so if you go to page five of the September 30 report, and this ends your fiscal year, remember October
1 uh to September 30 is your fiscal year. For the quarter ending September 30th, you earned another 1.4 million or 5.9%. And right in line with your strategic model, which was up 5.9%. And you actually did even better on a ranking standpoint, ranked in the top fifth
percentile of other public pension funds >> compared to 23rd >> in the prior quarter. >> Yeah. continuing improving. Uh, and the big performer here, large cap growth did well, but your best performer was actually your convertible bond fund. It was up 11.6% for the quarter, followed
by your index fund and large cap growth up 10 and a half%. And then small cap, uh, you're in the spider S&P 600. Small cap was up 9.2%. And I'll pause there. That's a great number for small cap, 9.2%. However, if you flip back to
page three in this report, you'll see at the very top uh in those those blue bars at the very top. The first one is the S&P 500. It was up 8.1% for the quarter. >> The next one, the Russell 2000, that's another small cap index that we look at.
It includes 2,000 names instead of 600. >> It was up 12.4%. So, our small cap index underperformed. What's the difference between the 2000 and the 600? The 600 has criteria that companies they include in their index have to have positive
earnings for the most recent quarter as well as on average for the past four quarters. So, it's a higher quality index. They have to be profitable companies they include. The Russell 2000 does not have that criteria. Roughly 40% of the companies in the Russell 2000 are
considered not profitable. So, have negative earnings. Those are the companies that rallied last quarter difference. So, >> right, >> while I'm disappointed we didn't generate that 12% return, >> right? >> I think with potential volatility on the horizon, I'd rather be in a higher
quality index with >> quality companies >> than a a riskier, more volatile index like the Russell 2000. So, but again, something we'll keep an eye on. If it's a continual trend where the 2000 continues to outpace the 600, then we may make a change there. But right now,
I'm certainly not recommending that. Uh, and then back on page five, the second bullet for the one year. So, this is your entire fiscal year, you're in 2.5 million or 11.4%. And just trailed your uh, strategic model, which was up 11.8%. Ranked in the top 21st percentile and
led by your uh, large cap growth index fund, which was up 25.6%. Your large cap growth actively managed fund, which was up 24%. And then the EyesShares convertible bond fund that was up 22.4%. So again, fantastic fiscal year. For the
three and fiveyear periods, you're in 8.3 and 7.9 million. The reason you earned a little bit less over a longer period, keep in mind 2022, we had that negative year where we lost money, right? >> So that's included in that five-year number. But for the three-year, you annualized returns of 14.3% and then for
the fiveyear annualized returns of 8%. Um, so very happy to see that. The last bullet here you'll see, and you'll see this in the report, you had a negative cash balance at 9:30. So, keep in mind, this is just a snapshot. We take everything as of 9:30. So, there was a dispersement of benefits and expenses on
9:30 that overdrew the cash account. It was settled the next week. Um, so there was no issue, but again, it always looks a little weird when there's a negative uh number for a market value. So, wanted to give you that context. Um, and then if you flip over to page nine,
wanted to highlight these are all the numbers I just went over, uh, except for the far right column. So, we can go back even further. I went over the the quarter 1, three, and fiveyear numbers, but for the past decade, you started with 16.7 million in total assets 10
years ago. You've paid out 6.2 2 million in benefits and expenses over the past um nine years on a net basis. So that includes contributions and then what you've paid out. You've generated 14.4 million in investment gains. >> And so we finished the quarter just shy
of 25 million in total assets at 24 million 858,000 with annualized net returns of seven and >> a half. And then if we flip over to page 13, um, at this time, no recommendations to
make any changes in terms of your asset allocation. We're pretty much in line across the board with all your targets. So on page 13, you'll see those gold bars. >> That's our target allocation as spelled out in the investment policy statement. So that's what the number we want to be
allocated to. Uh, and it'll fluctuate depending on what the market does, where we may be underweight or a little overweight. And so you can see here slightly overweight US equities, slightly underweight cash because of that negative u that distribution in September 30, but otherwise you're pretty much right in line with
everything. So we're comfortable with that positioning right now. Uh and we'll revisit again next quarter should we need to make any adjustments. The next page, if we go to page 16, this highlights at the very top your total fund performance followed by the
strategic model in the gold bar. And then below are all the individual investments that you have allocations to. And so at this time no again no recommendations to make any changes. Um you can see right in the middle of the page that spy SPDR S&P 600 small cap ETF
as I mentioned the difference in return there uh is those unprofitable companies in the index. Um, one thing that we I may look at next quarter and bring a recommendation for is your actively managed large cap value, which is right in the middle. The Verdice Seridex large
cap value fund. It's an actively managed fund. It's struggled a little bit. You can see here it underperformed the benchmark by about 1% uh for the one-year period, but it's been in line across the board. A little outperformed in uh the three-year period, a little
underperformance in the 5year, and then right in line for the 10 year. I think there's some other great large cap value managers out there that do a good job and may complement it well. Uh so depending on what their performance looks like next quarter, I may bring a recommendation to uh split uh take about
half of their so about one and a half million half of their allocation and fund a new uh large cap value manager that complements them in some of those periods where they do underperform. Um but other than that again very happy your index funds have done extremely well.
If we look at page 17, um, no issues here. American uh, realy advisors, your private real estate fund had rebounded. So, it was up four and a half percent for the one-year period after a few uh, years of private real estate underperforming. Uh, so happy to see
that rebound. Uh, the only other area that we may look at is your bonds. The Verdice sites total return bond fund, it's been right about uh, at the index in terms of performance. And so another thing I'll look at next quarter, uh maybe bring in some options that can add
a little bit of outperformance where they've kind of just really been at the index. Uh but other than that, uh no recommendations this quarter. Uh just a few thoughts that I'll leave you with uh as we look forward for next quarter and starting 2026. So uh with that, I will
conclude my report and just open it up for any questions or discussions. >> I have a question. >> Yes, sir. Um the minutes reminded me that we had made a a we took a recommendation of changing uh from Europacific growth to Fidelity
International Index. How did that perform after? >> So you can see that on page 17. Yep. Uh we split out the uh about half of UPUPAC to the Fidelity International Index. Okay. So it performed in line with the index which is developed markets that
MSEI >> UPAC actually out outperformed for the quarter and the main reason for that if you flip all the way back to pay >> H3 the third and fourth bar at the very top the MSI ET you can see was up 4.8% for
the quarter right next to it the MSI emerging markets index was up 11%. So that index we invested in is just developed markets. So it excludes countries like China and India. Those company or countries outperformed in the fourth quarter. Europacific will hold
anywhere from 20 to 40% of their portfolio in emerging markets. So that's what led to their outperformance. So again, that's part of the reason why we didn't do a full map over to a new fund >> because we we're not market timers. I'll be the first one to tell you that. We don't have a crystal ball. Um longer
term, Europe Pacific has been an outperformer. they've struggled recently and so we wanted to add a little bit of index exposure exposure so you were at least getting the market return and part of your portfolio >> with the upside of keeping Europeacific for quarters like this where they had the potential to outperform and add some
value there. So, um, you know, from a timing standpoint, I'd say, you know, wasn't ideal that the index underperformed, but we got the index return, right? So, you didn't lose money, right? >> We just didn't make as much as if we would have stayed entirely in UPAC. So, uh, but great question.
>> Okay. >> So, um, can we make a motion to accept the report? >> I'll make a motion to accept the report as given. >> All in favor? I >> I >> no nays.
>> It has been accepted and approved. >> Thank you. >> Thank you for the report. >> Financials would be the next item. >> The >> Oh, well actually resource center. I believe >> the re the attorney goes next.
>> Okay. Oh, all right. I'm sorry. >> Hello. Good afternoon. Um I apologize. I'm having an issue with my camera, so I cannot get it to turn on. Um, I'm sorry about that. Uh, I just have a quick reminder. Um, I have already reminded Kyle about this, so she's certainly
aware. Um, but December 15th is the deadline for the one uh, chapter 112 uh, Florida statute report that is now required. Um, this is something that was implemented in 2023 and it is done every
other year. So December 15th is the upcoming um deadline. Um in order to be in compliance with this, Kyle will um upload a form that we have provided for her along with your recently updated investment policy statement. Um and that
should satisfy this requirement. So Kyle is certainly aware. Um you do have that updated investment policy statement that was just um accepted today. So the form that we provided and that new statement will be uploaded and there shouldn't be
any issues with that. Just wanted to make you all aware that um your providers you know are on top of this requirement. >> Thank you. >> I did um we did not meet last quarter.
Um the other two PALA funds did um move forward and instruct my office to um put together a set of operating rules. Um those rules were brought to the other meetings today. There are going to be some additional changes uh before those
are voted on. If you would like me to do the same for this board, um I do highly recommend it. a lot of the um information and work has already been compiled. So, it would be um likely split um you know time moneywise with
the three boards. Um it shouldn't be difficult to to get those put in place. Um I certainly would recommend it. It really streamlines our process. Um you know, keeps us doing things as we should, but of course ultimately a
decision by the board. So, we would like to accept that. >> Okay. Excellent. Um, so I will >> Yes, I I would think we should Can we make a motion, please, to accept? >> Great. So, I for your review uh for the
next meeting. >> Okay. >> Motion to accept the guidance from U attorney Anna Clausner Parish. >> I'll second the motion. >> All in favor? I. >> Any nays? Much has been moved and approved.
>> Thank you. That concludes my report for today unless there are any questions. >> Um Anna, we do have a copy of the summary plan description and the proposed ordinance available on the screen. I know you can't see it. Provided to the uh board for the last
meeting. >> Okay. >> And um the ordinance is for the PLOP and the summary plan description. It's it's if you'd like to continue with that or wait until the um corrections or additions are made. >> Yes, let's wait um because hopefully
we'll be incorporating the the plop into the SPD as well. So, let's keep that on. Um once I know that that has um been approved and adopted by city council, I'll make those changes um so that they're reflected in the SPD.
>> Okay. Thank you. then we'll bring them back with the um no impact statement on that also from the actuary. >> Thank you. >> No problem. >> So we can move on to financials please.
>> I can go first for the resource centers. >> I keep I keep skipping you. I'm so sorry. No worries. >> Go ahead. Resource center. >> In the packet we've got a copy of the memo on the sock one type two audit. This is something we're very proud of.
It's very labor intensive. Um 18th consecutive year without any exceptions, >> right? >> And a copy of the certificate is in your packet also. >> Um my next item is not in your packet and I'm looking for some direction. I've
sent out the first group of alive and well letters. Um we have had 87 people reply. Five of them have moved and we do not have a forwarding address and I'm looking for some direction. The people who have not replied and we
didn't get anything back. I just send a second letter, a second request saying that you need to reply. I need something notorized that you are still with us. Five people have moved and I have no way
of contacting them. and other plans. What they do is turn off their pension payments. >> That gets their attention. >> That gets their attention. So, I was looking for the board's direction on how you'd like me to proceed with the five people. >> Well, they're required to update you. Is that correct?
>> That's correct. >> Okay. And this would get their attention. >> This would I'm in so much agreement with you. >> It seems rough though. >> I think I think it's quite direct and it will solve the issue, >> right? and you've already reached out to
try to >> correct correct >> the situation >> and this combats the fraud and we've had people collecting pensions for up to two years right >> when a person has been deceased. >> Good point. I got it. >> So, and it's very difficult to collect
that money back and cost the board money and hiring attorneys. So, it is drastic but it does save the fraud. >> Right. How long have you been trying to get in contact? um the five people that we had there no forwarding address was
just the one letter but there's no sense mailing a second letter if they've moved and there's no forwarding address because it's been so long since they moved the the mail will not be forwarded. I have a out of the way question. Do we um just a question. Do
we do things like skip skip trace that kind of thing? >> I don't know what that is. >> Oh, right. Okay. So, there's a way there are uh websites that you can go on and you type the name of the person and so forth and they will actually search
nationally uh where this person may now be located. Is there a fee for it using? >> It's a small fee. It's like $39, things like that. Not not enormous. >> But I just wanted to bring that to
>> We use the national databases for death notices. When someone passes away, the bank usually notifies us so we know to contact the next of kin or the beneficiary. >> So you're using that. >> So we are using that already.
Just to be clear, the letters are not going to them. So that a written check wouldn't go there. These are direct deposit folks. >> That's correct. They're all to direct deposit. >> Got it. Yep. >> So I I do have other accounts that the
parents have passed away and the children just take the money. >> Keep collecting. It is. >> Do you need a vote? >> All right. Just correction from the board >> to go ahead and turn them off.
>> I'll be the hard guy. >> Okay. You know what they are. >> I'd say let's get their attention, please. >> Okay. >> I agree. [laughter] Okay. And that's all I have. We can go into financials. >> All right. Well, please move forward.
>> That also you >> have. Yes. I have the um income imbalance statements just for you to receive. >> Yes, >> there are two different um warrants in here. The one from the last
meeting which is August 26th and um December 2nd. I have I can take one motion for both of them if you'd like to approve the financials. So the financials that I see here.
>> Okay. But I want to look at what about the state before we go that one. >> Certainly >> the statement of fidiciary net position. >> Yeah. You don't want to talk about that at all. >> They're they're just for you to receive. Um >> these are just the numbers so you know
what's going on of what's coming in and going out. >> Okay. And then I see the warrant payment of them. >> Then there's a cover sheet for the August one. You've received the full packet in the previous meeting, >> right?
>> And then the one for the December 2nd. >> We do have to approve the payment of the warrants. >> Yes, you do. Awesome. >> You are right. >> But we have not even in essence we have not approved the ones for August. >> You have not. >> Right. >> They they need to be ratified
>> as well. >> Yes, please. Well, I'm sure someone would like to make a motion of some sort. >> Make a motion to pay the warrants um dated Tuesday, August 26, 2025 in the
amount of $25,291. >> You can also do the December one at the same time if you'd like. and the warrants from the dated December 2nd, 2025 totaling $13,4648. >> Um, is there a second?
>> Mr. Wood, would you like to second it? >> That famous voice. >> I'll go ahead and second the motion. >> Okay. >> Oh, he did something. >> Okay. I'm sorry. Okay. Thank you, Mr. Bush. It has been um you know
second. All in favor? >> I >> I. >> Any nays? >> There are no naysay. It has been moved and approved. Is there Can we move on to number seven then? Benefit approval. >> Yes. Um
>> we also have two groups the August 26th and December 2nd. Um Mr. Bush is um part of that benefit approval. So he will need to recuse himself from the vote and I will send him the voter step form to
sign. >> We understand that. Thank you. We are currently reviewing the benefit approvals. We also will have to make a motion as well. Correct. >> Correct. >> I can ask questions.
>> So these are people that are qualified to start receiving benefit um payments. Correct. >> Okay. So before they start getting the payments, we have to approve >> um well they've already received the payments. Okay. Um this is a ratifying
their >> God bless you their refund or their dispersement. >> Okay. >> Um if they have a drop account >> um and they can periodically ask for some money from that drop account, those
um distributions are also recorded. >> Okay. >> But if you have any questions on any of the distributions, please ask. >> So we're ratifying August 26. Correct. >> And we're approving December 2nd.
>> Correct. >> Uh can we have a motion, please? >> Motion to ratify benefit approvals from the August 26, 2025. >> Second. >> All in favor? >> I
may I have it? >> I think we got a second out of turn. Should I make the the motion of second? >> Yes, please. >> Okay. I'll make a motion to second the your motion. >> Okay. >> You have to abstain, >> right? Because he can. Right. He's
>> right. Yes. So therefore, good point. Thank you for the observation. >> Do I need to second the second or >> No, we will not do that. Creativity here. [laughter] >> We will not do it. Well, let's stay.
Okay. All right. So, we have a motion and a second. Uh, all in favor? >> I >> I >> And we have to sign these as well. Is that correct? >> Yes. >> Now, who signs as secretary? >> I had you down as secretary. >> Okay. So, she signs and I sign. >> Correct. >> Excellent.
>> Okay. Thank you. >> All right. We will take care of that any public can we move on? Did you do the one for October 2nd as well? >> December 2nd. No, I did not. >> Cuz I only heard you do August 26th, >> right? because you said we needed to do
something different for December. We needed to approve Oh, that's what I heard. Is that right? Or have we ratified? >> You need to approve the TW today's 12 twos. >> Have we ratified >> ratified the old ones? Correct.
>> Motion to approve benefits dated December 2nd, 2025. >> A second. >> All in favor? >> I. And it's been moved and second and therefore approved. >> Thank you. >> You're welcome.
>> Are there any public comments from the people we cannot see? >> No public comments, chair. >> Thank you. >> You got to ask. [laughter] >> And are there other are there any other
businesses? >> Any other business? >> I had a quick item. The other two boards have requested an FAQ to distribute to members about their beneficiary forms and applying for pensions or questions
around it. Um they're we're going to produce an FAQ for each one of those boards and I would like to offer it up to this board. >> We of course accept it. >> Perfect. Thank you. >> Okay. The other item is um for the
training that's required um there are difference conferences available. Um the one from the state is a nocost one but I offer to the other boards as diversification of training. There is an
organization called FPPPTA Florida pension training that they do. They have specific classes, but there is a cost to join. Um, the other two boards, um, one is going to ask for more information, the other board would like
to join them. If you'd like more information on what they do, what classes, I could send it to you in between meeting and then next time we can vote on if you'd like to be a part of it. A lot of times they have or uh meetings in Orlando area, so it's not
very far for you, but they're really great classes specified for trustees. So if you'd like that information, I'll send it to you, >> please. >> Perfect. That's all I had, chair. Thank you. >> Okay. If there are no other business to
discuss or consider, I would like a motion for the meeting to be adjourned. >> Motion to adjurnn. Second. >> All in favor? >> I I could say I to [laughter]
the meeting is adjourned. Thank you.