[singing] [singing] Merry Christmas. Merry Christmas. Merry Christmas. The light work on Green light comes on. Okay, good morning everyone. Can Can the folks online hear me?
Somebody could chime in or give me a good morning. >> Yes. >> Perfect. Thank you so much. Um we I'm I'm gonna go ahead and start the meeting off. Um our our chair, the elected chair, as you know, passed away um this year and we
haven't had another meeting since that. Um and I wanted to take just a minute before we really kick off the meeting um to thank all of you. I mean, we had breakfast here today. I do that every year to say thank you for all the work the committee does, our adviserss that are here, my team, the bankers, the
extended team. We couldn't do what we do without you. And I say this every year, every meeting I always say this, but I feel a little even more thankful this year. Um, having lost Rick, you know, it touches everybody's heart. So, I just wanted to say thank you to all of you before we get started today.
Okay. So, we have a number of things on the agenda. Um, Mr. Dumar is on his way. Um, he'll be here any minute. He's technically the vice chair, so he'll take over the meeting as soon as he gets here. I talked with the other committee members here. they're fine with me kind of running the meeting. So, I'll get it
started. Um, we'll start off with welcome. I already welcomed everybody, but the introductions if you could go around the room and then we'll touch the people that are online. >> Jack Warner committee >> and George El Moore committee. >> Uh, Bill Bo, committee.
>> Richard Pangeli, PFM Asset Management. >> Leanne Evans, treasurer. Heather Frederick, chief financial officer. >> Laura, how PFM financial adviserss, >> Kristen Yaki, Treasury Department. >> Christy Price, Treasury Department. >> Kristen Var Garcia, Office of the
General Council. >> Okay. And also in the room, if you all want to just market. >> Okay. And then online, Mr. Coner is online as a committee member. And we have uh Miss Gloria Branch. She is a school board member that was recently,
as of November, appointed as the board representative for the committee. So, we'll be seeing her at future meetings. Thank you for joining us, Miss Branch. And when you when you have a moment, I'd like to get with you and walk you through some of the things we do to answer any questions you may have after the meeting today. >> Absolutely. Thank you so much.
>> Okay. Okay. And then we also have, if I can go through the list of who all's here. I know Tom Kai from Bank of America is here. Frank Leo from JP Morgan is here. I saw TJ White House join us from JP Morgan. Michael
Steinbrook from PFM has joined us. Is there And I see a couple of phone numbers. Does anybody else online want to chime in if I've missed you? >> Draper. Good morning. Okay. I'm sorry. Could you say your name
again? >> Doug Draper with BA Securities. Good morning. >> Okay. Good morning, Doug. >> Hey, Nathaniel as well from Bank of America. >> Okay. Nathaniel Johnson. Thank you very much. Okay. So, first thing is the agenda.
I've got that up on the screen for everybody. We'll be going through the agenda. Obviously, we'll do the minutes very quickly. I'm going to jump into a discussion about arbitrage and yield restriction. A great way to start a Friday morning is dealing with arbitrage and yield restriction. Um then we have the quarterly investment reports, the
annual investment report, the annual debt report, and we will need to go ahead and elect a new chair and vice chair for FY for the fiscal year 26. So the minutes um I sent those out to committee members. They're on the table.
There any questions on the minutes? >> No. I get a motion to accept the minutes. >> Second. >> All All approve. All approving. >> Any opposed? >> I the minutes pass.
>> So, we're going to jump into arbitrage and yield restriction. I'm going to start off by saying I am not an expert at arbitrage and yield restriction. Of all the things that I do in my job, this is the one that I really heavily rely on the folks at PFM for PFM asset management. Michael Steinbrook is our
main contact with this. Um and we also our bond council um Greenberg Tri has a tax attorney Vanessa Lowry that we work with very closely. So arbitrage very simply put we borrow tax exempt then we invest a taxable rate and when
interest rates rise after we borrow a debt issue there's a significant spread in the yields and we end up with what's called positive arbitrage. we've made money by borrowing and you can do that. It's not a bad thing, but the IRS has some rules around arbitrage and we're
going to get into that a little bit. The other term is yield restriction. I get them mixed up in my head. They're very similar, but yield restriction is really checking to make sure that our investment rate is under what they call the arbitrage yield on the bonds. And
that's determined when we borrow the money. So we look at both those things to make sure we stay in compliance with the with the tax laws. So there's there are tax codes that prevent the abuse of tax exempt borrowing and they want to make sure that we're not borrowing more
than necessary. We're not issuing debt earlier than required and we're not keeping the debt outstanding longer than we need to. And the IRS does this to make sure that we're they want to limit the amount of money we earn by borrowing tax exempt. Any excess earning has to be
rebated to the IRS. So our process, we're required by the tax code to do these calculations every five years. We actually do them every year. PFM is under contract to do it every year so that we know if there's an issue. Um, if we have an arbitrage
rebate requirement and a yield restriction requirement on a debt issue, you have to pay the higher of the two. You don't have to pay both because they are very similar. So, every year we do that and we take part of the interest earnings for each debt issue and set it aside for what we
expect to have to pay for that arbitrage or yield restriction rebate. Um, and then every five years when it gets within one year of that five-year window, it's actually recorded as a liability in the fund. Prior years, it's recorded at the governmentwide. So, it's recorded in the financial statements.
PFM gives us the calculation every five years along with the required IRS form, the sampled cover letter. Um, and then we make the payment as soon as possible. It just runs like clockwork without an issue. And it's reviewed by our external auditors every year to make sure we're doing it. So, so far all of this is
really boring. and you're wondering why I brought it to you. Um the recent calculations I mean very simply put in 2020 2122 we were able to borrow at very low interest rates. Interest rates have gone up significantly. So the estimated payments we have recorded right now um
for the 2020s um the payment was $611,000. We've already paid that one. Um the 2021 AS we have the money set aside 795,000. 2022BS is 1.8 million. um that money is set aside and the QCIB um was done in
2010. It didn't follow the every five-year rule because it was done as a balloon payment at the end. So, it only gets calcul we do have to make the payment at the end. The five-year rule doesn't doesn't apply. So, we had set aside we have $163,000
um based on the calculations we received from PFM. So, we made the payment for 2020s. This last one, the Q skip, is why we're here talking today because it's different. I didn't realize, I mean, I understood the Q skip is different and what the Q skip, all of you were here
when we did that back in 2010. It was part of the era, the American Recovery and Reinvestment Act. It was a program. There was the qualified school construction bonds, which was a tax credit instrument that we could sell to the to the banks. And then there was a Build America bonds, which we layered on
top, and it made the bonds taxable. and the federal government gave us a subsidy that was the difference between the taxable and tax exempt rates. The problem is it's a taxable bond. So the normal rules we have for arbitrage and yield restriction and yield restriction
is what applies here. We can't follow the normal process. And we didn't know that. I didn't know that until we got to the point that we were ready to make the payment. And I had a phone call with Michael Steinbrook and they brought in our tax attorney to walk me through the fact that this is very different. um
because it's taxable, we can't follow the normal rules, but we know we need to make the payment. So then it comes up with what do you do and how do you do it? So what we've been told is the only way to do it is using the VCAP process, which is voluntary closing agreement program. We've never done that before.
That program was created to allow tax exe issuers to address tax compliance issues. You violated the tax code, you need to fix it. That's what this process is for. And technically we did violate tax code because we earned too much in we earned the interest that we shouldn't
have the yield restriction. But any other debt issue we just file the payment and we move on. We can't do that here. So this process requires the school board to offer a settlement agreement to the IRS and offer them the amount we think we owe. And the IRS will
have to review it and then we wait to hear back from them. If they accept it, we make the payment the way we expected to all along. But this is very different. So I wanted to bring it to the committee before I take it into the school board. Working with general counsel's office. Obviously it's not
normal. I've never brought a settlement agreement to the school board when I don't think the district has done it because it's usually related to lawsuits. There's no lawsuit here. We just need to make a required payment to the IRS. The only way to do it is through a settlement agreement. So I wanted to make sure we brought this to
the committee so you were aware of it. If you had any questions, happy to answer them. Mr. Steinbrook's on the phone in case you want to get in the weeds on arbitrage because I've told you just about everything I know about arbitrage at this point. Um, so are there any questions from the committee
or anyone in the group in the audience? >> Think you got off light. [laughter] >> Okay. Um, I would like the committee to I'd like to get a vote from the committee that you know we need to move forward with this. I need to take it to the school board. We usually anything that goes to the board, I always tell
them I've taken it to the finance committee. Board members can sit and listen to this committee to hear to the meeting to hear the discussion. Um rather than me going through this at a monthly board meeting, they can listen to it here and we'll offer to have meetings with them if they have any
questions to answer anything. >> Motion. Yes. So move. >> Okay. It's the 2010 is the only one that has to be done as a settlement. The other ones all have processes that we follow. It's it's a normal process that we do.
Um these other ones, the one in for 26 and 27, we have them recorded. We know we'll need to make them. We take the interest earnings we've earned on these bonds knowing we're earning too much money. The interest rates are higher than they were. And it's not a bad thing to be in this position to have earned
more interest. Okay? It's not a bad thing to have earned more interest than allowed. We just need to give it back and that's what we're doing. It's just with a QC there's not a good mechanism. Normally PFM does the calculation. The calculation's a little book very
detailed um with lots of lots of figures and rules and the laws are stated. They give us the cover letter in the form. We fill it out, sign it, issue a check and mail it. We actually FedEx it to the IRS so we make sure it doesn't get lost. Um they send us a note back a month or two later saying they've received it. Um
it's an easy process and everybody does it. >> It's just the two of 2010 QID because it's a taxable instrument. It doesn't work the same way everything else does. >> Yes. >> Wow.
Okay. Mr. Warner >> I have to ask. But >> if if if we didn't do this calculation and raise our hand, would would they would they have come after us on their own valition?
>> If it was the other cops issues, I would say I really don't know. On the QCIB, because it was a federal subsidy bond, we've heard the IRS is auditing all of them. They actually did a pre- audit review with us a couple years ago just to check to make sure the money was spent correctly. I expect they're going
to come back and audit these. The other ones, I would say maybe, maybe not. I don't know. I know the staff of the IRS has been reduced. I don't want to second guess the IRS. I also don't want to ignore something we know we need to do, >> of course. >> Y
any other questions? Okay. So, we're going to move on then. The next thing on the agenda is the quarterly reports. And we have two sets of quarterly reports. We have June and we have September. What I recommend do
and we also have the annual report. The annual report is based on June. So what I'd recommend is that we skip over the June quarterly reports and go directly to September which is the most more recent data. And then when we go to the annual report, we'll be focusing more on
June. Um I did want Richard to chime in to confirm that we were in compliance with everything. That's the big thing the committee needs to know that we were in compliance with everything and we were in compliance. Correct. >> We're in compliance. >> Um that's stated in the report, but if we're going to skip over it, I don't
want to skip this and not say that. So, we have the the two reports for June and we're going to go ahead and move on to September. That way, we can talk about what's going on in the markets now as opposed to what happened a few month several months ago. So, gonna give you the mouse. >> All right. Thank you.
>> You get started and then I'll pick it up again. >> Sure. Sure. So, um, uh, so, uh, I guess we'll jump in and talk about tariffs, which is, uh, kind of been the big, uh, story in the, uh, early part of the year. Um, uh, you
know, we saw a ramp up in tariff, tariff collection, uh, as we show in the 9:30 report, the, you know, effective tariff rate by the time we got to the end of June was, uh, around 12%. Um with uh with probably uh when everything settles
out uh the effective rate being somewhere in the you know 15 to uh you know 17% range uh depending on how you account for uh consumers making substitutions maybe buying different products uh that that might be a little
bit a little bit cheaper. So um so so it's significant revenue that's coming in uh $ 32 billion uh in uh revenue being collected. Um there is uh we've we've you know heard questions about the Supreme Court case about the uh a segment of the
tariffs. You know even if the Supreme Court rules against the administration on those tariffs uh there are other mechanisms for them to uh continue the tariffs. So, um, you know, really don't expect necessarily that we're going to see a a reduction or or peel back, uh,
of, uh, you know, of of these tariffs. Um, and we've largely seen to date that, uh, companies have, um, you know, adjusted, right? So if you go back to uh April when we had
liberation day uh the you know main story that we kept hearing uh coming out of companies were was uncertainty uh same thing from economists uncertainty what is the impact going to be um how how big of an impact are we going to see from uh from the tariffs and largely uh
that that sort of settled down um and and companies generally uh have done continue to do well uh I think uh with 90 plus% of the S&P 500 reporting uh you know we've seen um you know I don't know
something like 80% uh earning surprises to the uh to to the upside. So so companies have um relied on the uh massive buildup of inventories that they did prior to uh to to this year or prior to the tariffs. Uh they've changed
around their uh supply lines. um you know they've taken advantage of exceptions and exclusions uh to to tariffs uh to sort of manage uh manage this. So we're hearing kind of a lot less noise uh in the economy from that. You know that that being said um you
know economists in the Fed have said that you know absent these tariffs uh we we'd probably see inflation being something like you know point4 to half a percent lower uh if we took out uh those uh th those tariff effects.
So, you know, keying in on inflation, uh, inflation recently has been relatively stable. It's still higher than the 2% target. Um, you know, kind of hovering in the 3% range. Uh, so still higher than where the Fed expects
it to be. But if you take out the tariff effects, uh, and if you look at something like the shelter component, which is one of the bigger biggest components of, uh, the CPI measure, we're actually seeing that come down, uh, as well. So, you know, estimates of where current
inflation is, uh, it might be somewhere in the 2.4 to 2.5% range, meaning that we're trending towards that, uh, that that that 2% target. Um so if we shift to the other side of the Fed's mandate uh beyond uh you know
price stability um the jobs market is where we've seen uh some some cracks and and and some concerns and was the uh probably the motivation for the Fed to start lowering interest rates which they did. Uh they started in September.
They've uh you know lowered rates by half a percent. We expect next week that they're going to lower it by another quarter point. Um uh the uh jobs market uh has definitely been softening up and the the data that we have been able to get both
prior to the shutdown and and kind of what we've seen sort of around the shutdown from other sources outside of the government uh you know all point in the same direction that things have softened up. Uh whereas last year we had you know uh you know 160,000 plus net
new jobs being added to the economy each month. Um in the summer uh right before that 930 cut uh the average for the three months over the summer was 29,000 uh net new jobs being uh being being added. So significant slowdown uh from
where we were uh before. Uh and that was concerning to the Fed. you know, they think in normal times we should see 100 to 150,000 net new jobs to uh to keep the inflation rate uh stable uh to not move the inflation rate. Um during the
periods a couple years ago, we had this kind of high immigration coming in. Uh that number was up to maybe 200,000 plus net new jobs that needed to be uh created to to soak up um uh you know soak up the employment and not move the employment rate. Um so there the this
lower is uh is is concerning uh or was concerning to the Fed and and helped uh motivate them to get back on track uh in lowering uh lowering the uh the interest rates. Um so from where we are now um you know
the consumer continues to be uh you know supportive of uh you know driving the economy forward. uh although we're we're seeing cracks uh at the lower end uh a lot of it is really being driven by the top you know 10 to 20% of income
earnings uh are still uh kind of driving uh you know consumer consumption. Um so you know looking at rising credit card debt uh student delinquencies you know the bottom part of the economy uh is you
know showing some signs of of of softening and and and weakening. Um but uh you know on the the sort of the growth side we expect as we go into next year that we'll have um you know the one beautiful bill uh will kick in. whether
we have fiscal stimulus coming from uh you know from from fiscal policy uh and then the Fed uh which has been easing uh is expected to be uh more dovish especially after after May and we get a new uh Fed chair uh and so we'll have
both fiscal and monetary stimulus uh you know sort of as a as a tailwind for for the economy uh and currently corporate fundamentals appear to be very very very strong and you know supportive of a you good economy going into uh in into next
year. Um so, you know, the Fed has projected in its last meeting, which I think that's the next slide here. Uh in their last meeting that, uh you know, they'd cut rates another uh quarter point next year. Um we'll get a new
updated dot plot uh next week. Uh so we can kind of see what the thinking is. Uh the Fed has been very divided uh this this year. Uh there's one camp that uh still has a lot of concern about inflation. Uh they still think that uh
the the you know companies were uh able to weather the storm this year because of that big inventory buildup and that we will see more impact from inflation uh as we go into the beginning of of next year. Uh and then you have another camp that's really focused on the
softening labor market and saying that there's more weakness in uh the economy. Uh in the last meeting we had a d you know uh two two dissents uh on uh one side you had um uh uh Kansas City uh uh
Fed President Schmidt who uh dissented that they shouldn't have cut uh and then you had uh Steven Mirren um you know saying that they should have cut you know cut cut more. So you have this you know big division uh in the Fed. Um the
projections from Fed futures are that they'll probably be on hold at the beginning of the year. Uh but that by the end of the year we'll see two more cuts uh taking them down to their 3% target. Uh which is where they project
or they've have been projecting uh the neutral rate is for uh you know for for the Fed funds rate. So that's a rate where they're neither stimulating the economy or uh or or restraining the the economy. So lower rates are anticipated and and
of course that's going to have a big impact uh on the district since your funds are very short and very impacted on where uh fed rate levels are. Um so from there I'll I'll kind of jump into the uh kind of what the markets
have seen or what they did over the quarter. Uh we've generally seen a tightening uh in in spread. So everything uh outside of uh treasuries uh corporates uh asset back securities uh going back to uh April we saw a big
widening in spreads around the uncertainty uh from liberation day uh and the potential impacts of the tariffs. Those spreads have since tightened up to you know multi-year uh kind of lows. Uh so that actually contributed to return but but also makes
it a little more challenging uh when we're rebalancing the portfolio going forward and trying to find uh corporates and asset backs at attractive levels to to buy into the portfolio. We've had to be much more selective uh and rely much more on the new issue market.
Um returns were good uh for you know fixed income uh for for for the quarter. Here we're showing uh you know what the quarterly periodic returns were uh which which again were were good uh and also
the one-year levels. Uh if I jump into sorry flipping here if I jump into your portfolio specifically let me go there. uh for the long-term portfolio.
Uh the um you know yield levels uh still reflecting uh kind of the higher interest rate levels over the past couple years uh with a yield on cost at 4 430. Um we did add uh to that uh to the long-term portfolio in in November.
Um and uh you know some sometimes it's good to get lucky. Uh as it turns out the day that we went into the market and we didn't plan this uh happened to be uh the high uh high water mark on the two-year over the past two years and again wasn't planned we just happened to
get lucky but uh because of that we were able to get uh yield levels that were uh 10 to 12 basis points above where we are at uh at current levels uh you know for for before that period or even after that period. So again, timing was was was good when we did that. We we
increased the core by 50 million. Uh and again, that's a measure to get some funds out of the curve and kind of uh lock in interest rates at current levels in anticipation of uh of yield levels going down um or continue to go down over the course of the next year.
Uh return for the portfolio was uh 1.19% for the uh quarter and 4.24% 24% uh for uh for the year. Um you know not as high as uh as the prior year year uh again because the Fed has cut rates by
you know 150 basis points. Uh but still you know much better than we saw before you know the the the runup in rates. Um shifting into the short-term portfolio get there eventually. There we go.
Um so you know this portfolio is much shorter and it's much more tied to uh the district's cash flows throughout uh through throughout the year. Um you know the yield at cost level is four and a quarter uh at 930. Uh we are going to see that continue to drift down since
this part of the portfolio is very closely tied to uh what the prevailing Fed funds rate is. Uh we're at the part of the year where we're uh investing uh tax receipts. So, we'll be working with uh you know, Leanne and the team on uh on on getting those funds invested
before the market shut down at the end of December. >> Right. No, we're actually going to be talking hopefully this afternoon. I already sent a note. They've given me some rate indicators because we received tax revenues earlier this week. What we didn't expect is a special dist distribution in taxes today. That was
not on the calendar anywhere. I walked into the office and I got a note. We got an extra. And I'm not going to say how much money we received today, but over the last week, we've received a lot of cash that we need to get invested. Um, more than normal. I think a lot of people paid their taxes early this year. It's a higher percentage of what we
received than we have in prior years. So, that's good. It's easier to get things invested now than later in the month. So, Richard's comment was really pointed to me that we need to get this done. And we we sent a note yesterday getting the rates and we'll be working on that this afternoon probably to do it
on Monday and Tuesday of next week. >> So I'll pause there for any any questions. >> I don't see any questions. >> Think the Fed's going to cut interest rates, which most people do this next meeting. Uh
real simple question is do you do you go out on the curve or do you are are you or don't you and if shorty end of the market is is anticipated to go down nobody at least to my knowledge nobody
is thinks there'll be a wild spike it at the short end of the curve. So simple solution to everything is simply
move your move your uh your your average average maturity out a bit. I assume that's what your I assume that's strategy >> that that's a right. Well, yes and no. So, so, so you know, I think the
allocation that we did to the longer term portfolio um is the move to to effectively do what what you're saying. Um, but within the core portfolio, we actually have a relatively neutral duration uh position
of the portfolio relative to the benchmark. Um, you know, between now and, you know, after May, we can anticipate things are going to be very dovish uh with a with a new chair. Uh although that's still just one vote, but
the um between now and then, if we start seeing data that starts coming in that confirms kind of that other side of the Fed, we could see interest rates actually start trending up. Um right, we still have several months before we get to May and that point.
So, so we're actually positioned neutral relative to the benchmark in the core portfolio, but we know that the overall trend is rates going down, which is why we put more in the long long-term portfolio. >> Right. >> On the short-term portfolio, we're typically investing, we're lading out
based on when we need the cash. >> What we found this year is that we had extra cash in the short-term portfolio. And the question is, how much should we move to the core that could be invested longer than a year? So, we share all of our cash flow projections and I get when I we share data with PFM, they get a lot
of data from us. Um, we've tracked the cash flows by fund going back to like 2006 or seven to present with projections and sent all that up and said, "What do you think?" Um, they actually suggested doing even more than we did. And I was a little nervous to do
up to like a hundred million dollars more in the core. Um, the core portfolio is money that we don't access on a daily basis. So, it's the board contingency reserve, um, the health insurance fund, that type of thing.
If we get a hurricane, we'll have to tap that money. So, I'm hesitant locking something in that could be two or three years out when we need to pull that money back and we could end up with a loss. So, it I'm threading a needle as to how much to put in that core. I'd
love to put more in there, but it's a little nerve-wracking to put more and more in there knowing that when we pull the cash out, we could end up with with problems. So, we've increased the core. It was great timing. I I'd love to take credit for those things,
but in my mind, you do it when you need to do it and hope it works out. And so far, it has. So, we've we've increased that core. Um, some more money's out invested longer. the short term with the short-term money. We're trying to put it out as long as we can to take advantage of that.
>> The whole subject is so highly politicized these days. It's certainly you have to try to get in the inside the mind of the uh current administration and what they what they want and what >> right >> more conservative people might think is
a prudent >> approach. Right. >> It will be very interesting to see what happens in May. Yes, >> when there's a new Fed >> chair. >> Okay, any other questions there? >> Okay, let me grab this. I'll pull up the
district's quarterly report. And as you know, it's a little different. It's the same data. Um, we just look at the entire portfolio as a whole rather than the individual buckets. So, the interest history is is one that I always look at.
So blue is 25, orange was 24, 23. So you can see how much interest has gone up and the black line is 26. So you can see it's already starting to drop. And I've already warned Miss Frederick that I fully expect the interest revenue for this year. 26 will be less than last
year because interest rates have come down. We did lock in some rates. That's good. That'll help soften that blow. But we will see interest earnings will be less this year than it was last year. it could be less than it was in 24. Um we'll just have to continue to monitor
that. The total portfolio um as of September 30 is 1.8 billion. It's a lot higher than that today. Um as tax revenues come in that makes a big difference. Um we had 2% in cash. That's the school internal accounts. I can't
invest those. Um I never know how the schools in 182 schools are going to manage their cash. That's our cash bucket. um it's actually earning a very low amount of interest from the bank. It is earning some interest, but we treat that like cash. Um 66% in money markets and
and LGIPS and 32% in securities. Um the percent in securities has already gone up pretty significantly with amounts that we've invested and will be going up even more in the next week or so. But September 30 is really the low point in cash for us for these reports because we
haven't received any of the T property tax revenue yet for the year. um core portfolio the return Richard just went through that interest earnings were 27.3 million versus 29 for last year so again it's a
little less than last time um property revenues are coming in um we got a little bit in November a lot has come in in December if our friends from Wells Fargo were here they would have been bugging me today when are we moving the money out because it's a busy day for wire transfers this week um sales tax
collections um we're up to 1 point almost 1.5 billion versus the 1.13 we were expecting. The last tax revenues are earned in December for this sales tax and the last the money will come in in February. So we'll you'll start
seeing another window here for the new sales tax that's kicking in. We track them separately, but this one will be wrapping up. Actually, we'll probably wrap it up because it won't we will stop getting money here. We'll still have interest earnings on it until all the projects are done, but the new tax is
beginning to wind down. And the rest of this report is really showing same thing PFM is doing. It's just a little different way of looking at it. It looks at the entire portfolio instead of the buckets, but the data is still the same. Um, graphically how it's
invested. Um, you can see invested bank balances at 1.57, money markets, the local government pools, corporate notes and bonds and a lot in treasuries and the individual securities, which I'll skip over that. This is the sales
tax report um as of September 30 and it shows the revenues coming in the expenses to date um at 918 million. Open purchase orders are 117 million. um interest earnings net of the fees that were on that line of credit that we
closed back in 2023 um is at 82 almost $82 million. So when we talk about interest earnings and we're going to talk about the annual interest earnings in a little while in the annual report that is comprised of interest for the general fund for the capital funds for the sales tax for all these individual
buckets and the money is spread out across all the all the funds. So while we did earn a lot of interest, it's not all sitting in the operating budget. It's spread out through all the funds based on the balances they had at that time. So that takes care of the quarterly
reports. Any questions there? If not, we're going to move on to the annual reports. Okay. I do want to give credit Christy Price and and Kristen Yakir here. They prepare all these reports. Used to be me doing a
lot of it. It's great having a team and being able to spread the work around. Um, it's also helps us make sure we're more accurate. It's not one person doing it. There's a team of us reviewing everything. So, the annual report. Um, and this is just the executive
summary. I tried to copy tried to copy what we did with the debt report, but a summary of what we did. Um, we started the the policy dates back to 1972. It was last updated. Um it it's in the process of being updated. It was updated
about five years ago and we're in the process of updating. The committee has seen that. We brought in the changes to you. Um we're just in a queue to get all the policies through to the board on what we're doing. There are no significant changes. Um the biggest change, and we talked about this at a
previous meeting, rather than having just a core and a short-term investment pool, we're going to have a core a short-term and an overnight pool. So the money markets and local government pools that are overnight functions will be separate and we can focus then on a benchmark that's more applicable to
short-term funds. I think it's going to be a better measurement. So as soon as we get that through the board, these reports will change and you'll have three portfolios that we're looking at. So we do focus, you know, that here's the overnight short-term core investments. Um we have a lot of bank
accounts. Um, we don't get into banking too much, but I do want to make sure the committee is aware of all the tools and things that we do. We manage all 180, I think it's up to 189 bank accounts. Um, we monitor all of them. All of them have fraud prevention tools on them with
positive pay. Um, for FY25, there were 598 almost 600 payment exceptions that came through. Um, that means they didn't match what we expected. 110 of those were returned. So, I have someone in my office. There's actually two people.
We're monitoring every payment that goes to the district bank accounts. And there are frequent attempts to steal money from the district. Um, that's part of the job of our office is monitoring those. I saw one that came through this week. Somebody was paying an MX bill on our payroll account. It was returned,
but it was a big MX bill. So, somebody um was getting creative and somehow got our bank account payroll, got their bank account, and tried to pay their MX bill through our account. So, we have tools in place that prevent that from happening. Um very seldom does something
get through that that's not caught. And when we do, we work with legal to help resolve those, but most of them are caught. Um 25 started with interest rates at five and a quarter to five and a half. It was cut as as Richard went through. interest rates have dropped
significantly. Um the latter approach was used. So it's really helped us. Our interest earnings for FY25 held on really strong even though there were interest rate cuts because we had invested longer out and we had that core portfolio in place.
So we have um here's the total core portfolio was 118 million and with a market value of just over that um the core total return for the year was 5.67% based on the benchmark that was just slightly higher for the year. Um
duration of the portfolio is 1.65% versus the benchmark of 1.76. Um and that's all been changed since se in September that we just saw but this was June. total interest earnings for the year was 118 million versus $ 107 million in 2024. Again, that money is
spread against a lot of funds. Um, a lot of it sales tax, a lot of its capital. Um, the money is spread around based on where the balances were kept. I mentioned the different companies that we work with, where the bank accounts are, the list of board members on the first
second page and the list of the committee members were the people that were in place over the term of this report. So I kept Rick Miller here as the chair. He was here through the entire year mo almost to into June. So I kept him on here. Um the board members
are listed as they were for 2025. We do have a change here. the actually this doesn't show it but Miss Bril is still the chair. Um Mrs. Andrews declined to run for vice chair. The new chair is Matthew Lane. Um so the bottom line here you know we
offer our sincere appreciation to the finance committee for their ongoing support and expertise. Um I'm not sure you all realize how much I rely on you and your comments. You ask you're very thoughtful. you ask a lot of really good questions and over the years you've helped us improve what we do
dramatically and we really do appreciate I appreciate and the school board and and this the district staff really appreciate the work that you do for us. So this is a June 30 report um the highlights there and I'm going to turn it over to Richard to let him talk a
little bit about June and the whole year from PFM's perspective. Um the property tax collections were just slightly slightly higher than last year. Um, those tax collections also include some prior year tax revenue. That's why it's over 100%. We never collect the full
100%. Um, some people always pay late. So, this includes prior year taxes from last year. Um, sales tax collections. It's it's really the same information we just went over except it was for June. And I think I'm going to turn it over to Richard now because this is our version
and right behind it is yours. Um, not sure exactly what you want to talk about for June, but >> I have no idea. >> You want to skip over the market update because it's outdated. >> I think so. Yeah, I think so. So, we'll just show kind of the portfolio as it looked uh at that point. And, you know, Leanne kind of already touched on that.
Um, uh, kind of what the the details look like. The, you know, yield on cost was at a 430. Uh, that's going to continue, you know, drifting uh drifting down on the portfolio as rates are are are coming down. Um returns were of
course much higher because we're coming from a much higher uh yield environment. It's actually kind of interesting to compare that. We had a four handle uh on the 930 number that you just saw and it was uh you know 5.57
uh for the look back year uh in uh in in June 30. Uh and unfortunately you know that's going to keep uh coming down here to the extent the Fed keeps uh cutting uh cutting interest rates. But um but yeah, the last couple years fiscal years uh have been very strong for uh returns
in uh the long portfolio. >> I have to say even if four and 3% that's so much better than the 0.25 we had for several years. So while I I'm sorry the rates are coming down, it's still so much better than it was just a few years ago. So I'm thankful we're earning interest at all.
>> Yeah, it's great. and and critically or most importantly, you know, keeping the funds earning above inflation, which is is kind of the goal for uh the overall goal for the the reserves. um uh for the long-term portfolio uh and this is the one uh you know I'll kind of
touch on uh you'll recall a couple meetings uh one of the policy changes that we did do is to uh separate out this uh portfolio and and uh identify a specific uh index that we'll use for uh this portfolio going forward um which
will more closely tie it to where we actually manage it. It's typically about uh uh uh uh 90day or or one quarter um uh uh average duration uh and then the index will uh reflect that uh going forward now and separated from that
shorter shorter term overnight uh LGIP uh index that the policy currently has. um you know the uh portfolios were uh you know in line or you know in in compliance with uh with the policy uh at uh at 6:30.
Um, if you want me to step through this part of the presentation, >> um, you can't you can I think we're still good on time, but uh, one of the things that I wanted to mention, we talk about compliance. We're monitoring to make sure we're compliance with policy every time we do a TR transaction. PFM
also is checking that and I had the opportunity a couple years ago now to go up there. There was a due diligence call, due diligence meeting for Florida Palm for the investment advisory committee that was up in their office in Harrisburg and I happened to be on vacation and I was up near there. So I
went over and took part in that and got to see their office and I got to see them do a trade and they tried to do a trade that wasn't in it wasn't ours. They were using a city or a county as an example, but they tried to do a trade outside the policy. It blocked them. So
even if the trader um is not paying attention, the system would block them to make sure that they're checking that we're in compliance with everything all the time. So it would be very hard for us to be out of compliance with our policy. >> Yeah. Yeah. The policy gets coded in as you know kind of a a language and each
trade is checked pre you know pre-trade and post trade to make sure everything is in in compliance and then that's done electronically and then there's a trade desk uh check um at the end of each day for every portfolio. and then uh a separate uh compliance team is monitoring all of the transactions. So
it is very hard to have something go uh out of compliance. >> Um to touch >> well the rest of this this isn't really the same information for September. It's just old, right? >> Yes. >> Okay. So let's if the committee is comfortable with this, we could set
aside the rest of the annual report and move on to the annual debt report. And just as a reminder, these annual reports will go to the board. They're going to the board in December. We're required by policy to present those to the board each year. So, they'll be getting this. The annual debt report.
Um, you've seen this every year. And I I I go through this and it's there's I'm going to focus on the changes from last year because otherwise it's it could be very boring. Um, it's exciting to me. It's there's a lot of work that goes into this and we do actively manage our
debt portfolio. Um, one of the changes we had, um, we did a we did a debt issue, um, a refunding. The largest cops issue we'd ever done at the district was done in 2025, refunding the 2015 BC's and D's um, that made and we'll talk
about that trade in just a few that transaction in just a few minutes. But it did change the total and at this is one of the things I highlight on the report every year again thanking the finance committee and since the committee was established when it came from the in when it went from the investment committee to the finance
committee and you started looking at debt that was in 2001 which was right after I started actually so it lines up with how long I've been here um we've done 92 debt and hedge transactions totaling 8.8 8 billion. Um, present
value savings is now up to $194 million that we've been able to save through active management. Um, some of those transactions, some of the hedges, the variable rate debt that went along with them, we would never have been able to do that without the support of the committee, the good questions you asked,
the thoughtful questions that forced us to do things better and better each time. So, that's a big number of of dollar amount of savings, and you all should be very proud of that. Um, I do list all of the companies that we do business with. We have a new list
of underwriters. The other thing that changed this year is we, um, changed our investor relations website. I'm going to see if I can go to this. I haven't brought this up for the committee to see it. Let's see. Let me do this way. Copy
the link. Go to the other screen. I just think it'd be good for you all to see. Um, good. In case you ever go out and look, it's got these disclaimers where they're
tracking so we can see how many people go into the debt report into this and and what they're looking at. Um, it's not bringing up the picture yet or it's still thinking on it. Um, it's got a picture of the front of our building there, but it it lists it's a it's a really good one-stop shop for everything
related to debt. Um, it has, if you go to the bond archive, it lists every single transaction. And here's that last one that we did that was $275 million. You can click on the details as a little disclaimer again. Um, but from there, you can official statement.
You can get the information on the bonds it refunded. All this information is readily available to the public. Um, it's helpful for rating agencies, investors to be able to find this. We're using a platform called Bond Link, um,
that does this for a lot of governments throughout the country. So, they can go and people that have a subscription, which is free to everybody to use, they can go out and they can pick these are the bonds we're monitoring and get emails on them. Um, and they can could do comparisons looking at Palm Beach
schools versus Hillsboro schools, for example, and get a lot of information there. So, it's it's a nice tool. We implemented that over the over the course of the past year, and I don't think I'd ever shown that to the committee. So, I just wanted to point that out. It does have if we're doing a
bond sale and there's not anything out there right now, um it would have a highlight of new new deals so that people could look to see what's out there. It's just a way to make the information more readily available to the public. >> Yeah. And I wonder if uh if anybody else
any other members of the committee are interested, but I would be interested in getting having them send me a print copy of the >> official statement. >> I can do that >> for the bond for the 2025 bond issue. >> I only have one. We don't print very
many of them. I can send it to you electronically very easily. >> Okay. Well, that'll be good. Okay. Thank you. >> Yep. Absolutely. Can I'll make a note. We only get two of those each year. We the the cost of printing g has gone up significantly and we ended up with boxes
of books that nobody used. So now we only get ones in the official transcript and then I have one in the office. >> That's fine. >> But I can send it to you electronically. I can also send you the link to where you can go poke around and pull any of them that you like. >> Just send it to me if you would please. I will. Thank you.
>> But that is a really good tool if you're interested in what any government entity is doing. There's a lot of information out there. We go through the history of debt. I used to get lots of questions from the public, from board members. Why are we issued debt? Why do we have this big debt service payment that we have to
make every year? And so when we started doing the debt report, I added the history in here because it spells it all out. I mean back in the first cops issue was done in 1994 and our average enrollment in school capacity our school high schools were at 180 28% of capacity
um very overcrowded. We went through a period where we were opening a lot of building a lot of schools. Um we financed a lot of them. Um we've also replaced a lot of schools over the years and that has helped us bring the schools into the current environment of
education. you know, we're providing all the materials they need. It's also addressed all the old um safety violations and they call them comprehensive safety inspection violations. Um there's a lot of things that happened and that's why we borrowed money and we still have to pay all that
back. Um the debt service is going down and we'll see that chart in just a few minutes. But I go through the history really from 1994, all the heavy student growth, the finance committee starting in 2001, um replacing all the old wood aortables
with new buildings. We did the sales tax in 2004. We were at that time we thought we were going to borrow 334 million to help build schools and we ended up over the same period of time borrowing 798. Um, somehow whenever we do a sales tax
and we're spending a lot of money on buildings, construction costs manage to go up at the same time. I guess it's the law of supply and demand that kicks in. So, every time we go out to b to build a lot of schools, all of a sudden the prices go up. So, we've dealt with that back in 2006 and 8 um we deal we're
dealing with it now as well. Um, this shows the schools that were financed whether it was new or replacement seats. the replacements replacing schools. Obviously, this is what happened, you know, over this period of time between 1995 and 2011.
The next big story happened with the result with the reduction of our taxing authority. Um, you all know this story, but um the the state reduced our taxing authority for capital from 2 mills to one and a half. Um at the same time you had the great recession kick in and we went from the point from building
schools to barely having enough money to make our debt service payments in the capital budget. We actually had two years where we took part of the operating budget to help cover debt service payments. Um it's taken a long time to get to where this red line is the value of the two mills that we had
for capital back in 2008. Um the dark blue line is the actual tax revenue of what we've received. The green is what it would have been with two mills. So without the green is showing really the impact of the recession. When you layer
in the fact that the taxing authority went down, you can see it took several more years to get to where we had the same amount of money we'd collected back in 2008. Um it was 202122 when we got back to that. That's really the reason that the school district and many other school districts went out for
sales taxes in 2017. We didn't have enough money to maintain our schools and schools were falling into disrepair. Which leads the next section and then we talk about what happened with charter schools um that starting in 2017 and it
really kicked in um in 2024 25 when we started to really have to share Capital Outlet Village with charter schools. And then I'm just showing the value of the outstanding debt. Back in 2008, we had $2 billion outstanding. Um it
continued to go down until 2020 when we borrowed again. Um we didn't borrow any money. Other we did the QCI, but other than the QIB, there was no debt issued I guess from 2020 2010 till we got to 2020. Um and the 2020 the debt we've
been issuing since you know we've been shortening up the maturity so that it will mature sooner. So it's showing the decline of the outstanding balance of debt. We're readily paying it off. And then looking ahead this the gray
bars here show the the current debt service. The blue bar is what we're still planning to issue. Um and you see all of it is going to mature by 2040. used to be we'd go out for 25 years and we've really shortened that up. We're tried to keep it shorter. Um but you're
going to see starting in 2030 debt service will drop off and then it drops again and from 2032 on it stays pretty constant. What this is doing the way reason we've shortened up the maturity on the current cops issues is we want to give as much flexibility to the board in
the future. I had a board member years ago ask me what is the thing I worry about the most and it's the fact that we built so many schools in 20 2000 I guess 1996 through 2011 years we were opening 10 schools a year those schools are
going to hit 50 60 years old and have to be replaced we're keeping that in mind we need to make sure there's room to maneuver to borrow for new schools or replacement schools in the future um we are still tracking I'm never going to give it up The green line is showing
the one value the one and a half mills less the charters. This is the one the actually we did drop it off the value two mills. We took it off the one one and a half mills without charters. Um and just so you know you would think the charter schools it would be aligned. It
wouldn't have this couple of years where it's flat. Um that's happening because the state rolled in the amount we share with charter schools 20% one year 40 the next 60 the next 80. So when you get to 2028, you'll see these lines are running
parallel. We're estimating the number of students in charter schools, the number of students in our schools, and how that money would be shared on a per student basis. So as I mentioned before, the finance committees resulted in that savings of $194 million.
Um, and then after this, we start going through each type of debt. I'm not going to go through each one of these. There's very little change. The Kobe bonds, we're making the final payment. The lease, the final payment will be made in January 2020. Actually, the next one is 2026. The final payment comes up, I
think, in 2030. Um, we're not issuing that debt. The state does it. They actually make the payment on our behalf, but it runs through our books. So, those are running through. Um, the leases, we did make the final payment on the last equipment lease. Those are no longer there.
cops. I did want to pause here because we had some activity in 2025. Um we did that 2025A which is a refunding 200 almost $275 million. Um this resulted in present value savings
of 6.11% or $19 million over a period of I think it's five or six years. It's a pretty short window. >> Um so that money reduced our debt service payments um because we don't have to make them anymore. So it was a direct impact to the capital budget. So
that was a big win. We're very happy with the outcome of that transaction. Um during 2025, we transferred 413 million to the pay escro accounts. Every year debt service payments are due. We have to make them by June 30. The payment
actually happens on um August 1. So there's always money being sent up. But we have money in escrow accounts. The total amount outstanding as of August 1st is going to be 1.1 billion. So it's come way down from the two billion that you saw in 2008. Um it's it's really
dropped off. Qualified zone academy bonds. We we've paid all those off. The last payment was made. We probably could drop this off the report for next year. We haven't touched them and have no plans on doing these. We heard loud and clear from the committee um that these
this is these are tax credit bonds. The state has capacity to do that. You issue them in very small dollar amounts. Tremendous amount of work. Um the cost of issuance of those bonds is actually more than the savings we get from doing
them. And they're um challenging. There has to be a private match. They're just difficult to do. the committee. The last time we did one, you all told us, "Don't ever do these again. We have no intention of doing them again." Um, then we have the qualified school construction bonds. We talked about that
a little bit with the arbitrage today. Um, one of the things that I didn't mention earlier, that federal subsidy, you all recall when the when the federal government got in tight times, um, they have a process called sequestration. They promised to give us money to cover the difference between taxable and
taxexempt debt. Um, they've shrunk that down. They didn't they're not giving us everything they promised. Um if these come up again, unless we required to and sometimes we get forced into doing these, I wouldn't recommend doing them again. Um
it's nice to be able to issue debt with a really low interest rate, but a lot of it was because of promises made by the federal government that they didn't keep. So they're challenging and they're ch they continue to be challenging even now with arbit with with yield restriction payments. um that that final payment on that
transaction did happen August 1st, just a couple months ago. That's why we did the arbitrage calculation. Tax anticipation notes, we haven't done one since 2020. Um we may do one in the future, but it really depends on whether or not we need to borrow money for the
operating budget, and we've not needed to do that since 2020. So, um it's something we monitor and look at to see if we need to do it. If we need to do it, we'll come back to you and move forward with those. Those are a very easy transaction to do and sometimes if
you're lucky you can earn positive arbitrage that we get to keep because it's less than a one-year note. Um but at this time we don't need to do them. The hedges I've let the note here and I'll continue to leave the note. We terminated them all in 2018. Um we did
save $40 million with those. They were also a tremendous amount of work and the financial statements, the reporting has gotten significantly more difficult for those. I know all of the people in the accounting department cheered when we made the final payment. I'm looking to Heather because she was there and she
was very happy they were gone. Um I don't know that we would do them again. The DoddFrank Act changed a lot of the rules that we play with with swaps and it makes it very hard for these things to be worthwhile at this point for governments. but they were very helpful in the past. Um, debt ratings have not
changed. I do want to point out standard and pores. Um, we had a rating from them because they they rated some of our older debt. We're not using them as a rating agency on current debt and the last one matured. So, when we do this report next year, you won't see a rating from S&P anymore because they don't have
they aren't rating any of our debt. So, we'll go down to just two on this report. Um, we do have really solid ratings. I keep hoping that we can get a bump up from one of the rating agencies, hoping. I'm not sure we'll get it, but we're always trying to do that. Um, we
compare ourselves to other school districts from throughout the state, and there are two that have a notch higher than us, and I'd like to be in that that bucket. So, um, we keep looking and we just we they're now very, um, mathematical formula driven and there's
differences between us and the other two districts. Um, one of them is is Orange County Schools and their sales tax revenue is double ours. I mean, it's just a significant amount of money they get and it makes a big difference. >> Are there any uh
certificates of participation for any school district in Florida that's rated AAA? >> No. >> So, you we we at the top of the pile here? >> There, as I said, there are two that are a notch higher than us. Um, they are double A for cops. I think they're at
double A3 double A. We're at they're double A2, right? Um I don't think a school district will ever get to be AAA because we don't control the funding mechanisms the state does. >> So Palm Beach County is AAA rated and every year I get a call after the League
of City meeting, why are we not AAA when the county is? >> Um and it's because they have more control over their taxes than we do. >> They have the ability to take people's houses away from them. Um, and then I'm not these are the
reports. Um, this first report and I know it is hard to read. Usually I print this out on legal or 11 by7 paper, but this is a report that I use. I active use this whenever we have a debt issue. It's got it's a snapshot of everything we have. It's how we manage our debt. We
also have I pointed it out. It's been there before, but I don't know that it was as important as given the presentation we talked about today. It shows the dates for the arbitrage calculations. We have that built in here. We're actively monitoring them. Um, we don't forget those. They're
they're out there. So, this that is the report that's required by the debt policy. Um, then I have a report that I really created for this committee. It lists all the debt issues we've done and the present value savings. So, it's got a count just counting each transaction. This is where I get those numbers that
were on the first slide of 92 transactions we've done with PV SA present value savings of $194 million. Um I do break it out how how much of it was done with how much we issued in new money debt, how much was refundings, how much was swaps, um and the totals. So
this is really to track all the work that this that we have all done together. And then this is another version of the report. Um it was actually requested years ago from a rating agency and it's something that we monitor. I know I
share this with the legal department frequently. It shows all the schools that were that are in the master lease that we issu we built with cops. Becomes very important when a school comes up or somebody comes up, they want to put a cell phone tower. You can't put a cell phone tower on land that is in the
master lease. So whenever there's a real estate transaction, Kristen's calling, what what do we have on this school? And we I send her the latest. And Kristen, this is the latest. I'll have to send it to you. It was just done. So this is through June 30. Um, but it lists every
school and it breaks down, you know, how much the value of the construction, what was asset, non-asset is typically used when we did a remodeling or something like that. We didn't incorporate the land into the master lease. Um, but it
lists it by deal and for each deal it lists subsequent refundings or restructurings that happened. And each time we do those, it's to save money and to reduce our cost of capital. So, there's all the cops issues. And the last um I always thank Laura How for
putting this together. This is Let me make this smaller. This is a schematic of all of our debt issues. And this is a big sheet of paper 11 by7 that's laminated in my office that we we pull out and scribble on because you can follow from each debt issue, you can
follow up to see where it was refunded and where where it's at and when it matures. Um it's a it's a nice tool that again these are tools that we use this the annual reports required as part of the policy but all the reports that go behind it are tools that we're actively
using. So it's a good summary for the committee and for the board to see what we do and how we do it. There any questions on the debt report? And we talk about what other people do. I'm not aware of anyone else that puts a report together like this. I always ask
the the bankers when they're here, have they ever seen anybody do and they shake their heads no. So, this is our creation and I'm very proud of it. Um the team did a lot of work on it this year to pull it together. >> I I propose that the finance committee commend the treasury operation and the
treasurer uh for the splendid work that you all continue to do year after year. It's really terrific. >> Well, thank you very much. >> Thank you. So, >> so all all in favor say I. >> Thank you very much. Um I think we only
have we have one other item on the agenda. Um and that is to elect a new chair and vice chair for the coming year. So I'll ask first if anybody's interested and then I'll say I'll take
nominations. I know it's hard. Rick Miller served as chair for many years. I try to make it very easy for you. Um, so it's not a lot of work. Sometimes I call you in advance of the meeting to walk through what's going to happen. But if it's a normal meeting, you just walk in like everybody
else. It's just running the meeting here. No, hear no volunteers. So, I'll accept nominations. I I'll propose that we elevate the current vice chair to chairmanship. >> That would be Mr. Dumar's
>> seems very like to me [laughter] >> second. [laughter] >> Is that okay, Mr. Dar? >> Okay. Any other nominations? All in favor of Mr. Dar I >> I >> Any opposed?
>> Okay, Mr. Dum Mars, thank you very much. >> Um, and so [laughter] >> I promise we'll make it painless. >> So now I need a volunteer. I need a nomination for vice chair. >> I think you did. You [laughter]
>> No, no, no. I know. But that I think I know more. But that's not true. >> Yeah, it is too. >> Well, the vice chair's responsibilities are to fill in when Mr. Dumar isn't here. >> Don't you think Jack would be or George? >> I already did this once.
>> Well, and you can confirm it was easy. >> Okay. All right. Thank you. All right, George. Okay. All right. >> Okay. So, did I see a nomination for Mr. Moore? >> Thank you very much. Yeah. >> Well, assuming someone seconds it. >> Any other?
>> Okay. Any other nominations? >> Okay. All in favor of Mr. Moore being the vice chair? >> I. >> Any opposed? >> Okay. Mr. Moore, Mr. Bars. Thank you very much. I promise we'll make it as easy as possible for you. Thank you very
much. We appreciate it. And with that, unless you have any other comments or thoughts, >> we can Mr. D Marsh, do you want to adjourn the meeting for a nice breakfast? >> Okay, thank you very much. Happy holidays. And again, thank you so much
for all the work that you do for us. We appreciate it.