YES, I HEAR YOU, RICK, I HEAR YOU. THANK YOU, THANK YOU. [A. CALL TO ORDER] [00:00:04] COULD I HAVE A ROLL CALL? COMMISSIONER MARIN HERE. COMMISSIONER JESTE. HERE. COMMISSIONER ALLEN. HERE. COMMISSIONER RAMCHARAN. ABSENT. COMMISSIONER SHERBIN. ABSENT. COMMISSIONER TURNER. HERE. AND CHAIR WOODHAM. HERE. LET'S STAND AND SALUTE THE FLAG. I, I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS. ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL. [D. APPROVE ORDER OF AGENDA] CAN I GET A MOTION TO APPROVE THE ORDER OF AGENDA? MOTION TO APPROVE. SECOND. ALL IN FAVOR? AYE. I DON'T THINK THERE ARE NO BLUE FOLDER ITEMS. CORRECT. THAT IS CORRECT. NO BLUE FOLDER ITEMS. OKAY, THEN THE CONSENT CALENDAR. CONSENT CALENDAR CONSISTS OF TWO ITEMS, THE MINUTES AND THE [F. CONSENT CALENDAR] AFFIDAVIT OF POSTING. DO I HAVE A MOTION? CAN I GET A MOTION TO APPROVE THE CONSENT CALENDAR? MOTION TO APPROVE. SECOND. ALL IN FAVOR? AYE. APPROVED. THERE ARE NO EXCLUDED CALENDAR ITEMS. PUBLIC PARTICIPATION ON NON-AGENDA ITEMS. DO WE HAVE ANY SPEAKERS ONLINE OR? NO ONE ONLINE AND NO ECOMMENTS. OKAY. WE'LL ADDRESS AFTER THE. RICK. CAN YOU HEAR THE MEETING? I CANNOT HEAR THE MEETING. PARDON? WE CAN HEAR YOU NOW. HI, THIS IS NILESH. CAN EVERYONE HEAR ME? WE CAN HEAR YOU. CAN YOU HEAR US? YES. THANK YOU, THANK YOU. WHO? JUST WHO WAS ON? WHO JUST SPOKE? IT WAS NILESH. NILESH. ALL RIGHT. GOING INTO [J. ITEMS FOR DISCUSSION PRIOR TO ACTION] ITEMS FOR DISCUSSION. J.1 THE CITY TREASURER'S REPORT. EUGENE, YOU ARE UP. THANK YOU CHAIR WOODHAM. EUGENE SOLOMAN, CITY TREASURER FOR REDONDO BEACH. WE HAVE WITH US TONIGHT ONLINE RICK PHILLIPS FROM MEEDER INVESTMENTS AND NILESH MEHTA HELPING US WITH OUR INVESTMENT REPORTS AS WELL. I WILL GO AHEAD AND GET RIGHT TO THE REPORT. THIS IS OUR Q3 REPORT FOR THE 25-26 FISCAL YEAR. IF WE COULD ASK JACOB IF YOU COULD PUT THIS UP FOR US REAL QUICK. OTHER STUFF. SHOULD BE UP FOR US, JACOB. OKAY. SORRY. WRONG BUTTON. THERE WE GO. OKAY. FOR 25-26 QUARTERLY REPORT. TREASURER'S REPORT. TREASURER PORTFOLIO SUMMARY, INVESTMENT REPORTING GUIDELINES, INVESTMENT REPORT BY MEEDER INVESTMENT IS ATTACHED TO YOUR AGENDA ITEM. PORTFOLIO SUMMARY, INVESTMENT POLICY COMPLIANCE, INVESTMENT ACTIVITY REPORT AND ECONOMIC MARKET UPDATE IS ALSO ATTACHED TO YOUR AGENDA ITEM. WE'LL REVIEW OUR INVESTMENT REPORTING OBJECTIVES AND GUIDELINES, OUR POLICY COMPLIANCE, QUARTERLY PERFORMANCE, CASH FLOW ANALYSIS, MATURITY, DISTRIBUTION AND FISCAL IMPACT TONIGHT. REMEMBER THE KEY INVESTMENT OBJECTIVES FOR MUNICIPAL INVESTING. THE CITY TREASURER MAINTAINS THE CITY'S CASH FLOW WHILE EARNING A COMPETITIVE RATE OF RETURN ON THE INVESTMENTS WITHIN THE CONSTRAINTS OF THE CITY'S INVESTMENT POLICY AND STATE LAW. PRIMARY CONCERN SAFETY. PROTECTING THE PRINCIPAL LIQUIDITY. PROVIDING NECESSARY LIQUIDITY TO COVER BOTH ONGOING AND UNEXPECTED CASH NEEDS AND YIELD MAXIMUM EARNINGS. RECOGNIZED NEED FOR SOCIAL SAFETY AND LIQUIDITY, AND SUBJECT TO RESTRICTIONS SPECIFIED BY STATE STATUTES AND THE LOCAL GOVERNING BODY. ALWAYS REMEMBER WHOSE MONEY IT IS. IT IS THE COMMUNITY'S MONEY AND NOT OURS, AND WE ACT ACCORDINGLY IN RESPONSIBLE STEWARDSHIP CAPACITY AND INVESTMENT MANAGERS. OBJECTIVE IS TO EARN A REASONABLE RATE OF RETURN ON THE CITY'S INVESTMENTS WHILE PRESERVING CAPITAL IN THE OVERALL PORTFOLIO. IT SHOULD NEVER BE AN INVESTMENT MANAGERS GOAL TO EARN MAXIMUM RETURNS ON THE CITY'S PORTFOLIO, [00:05:03] AS THIS WOULD EXPOSE THE CITY TO AN UNACCEPTABLE LEVEL OF RISK. CONSIDERING OUR GUIDELINES, FAILURES IN INVESTING OCCUR WHEN EITHER POLICIES ARE NOT CLEAR, POLICIES OR INAPPROPRIATE POLICIES ARE NOT FOLLOWED, OR OVERSIGHT WAS INADEQUATE. SO QUESTIONS FOR YOU TO ASK. DID YOU REVIEW THE INVESTMENT POLICY? DO YOU UNDERSTAND THE CITY'S INVESTMENT PROGRAM? DO YOU RECEIVE AND REVIEW PERIODIC INVESTMENT REPORTS? ARE THEY CLEAR, CONCISE? ARE THEY READABLE? DO YOU FULLY UNDERSTAND THEM? IF YOU CAN'T, THIS IS MORE LIKELY TO BE BECAUSE THEY'VE BEEN PRESENTED POORLY AND MAY IN FACT REFLECT PROBLEMS THAT ANY TECHNICAL PROBLEMS WITH YOUR ABILITY TO UNDERSTAND THEM BECAUSE IT'S TOO COMPLEX. IT'S THE JOB OF YOUR STAFF TO MAKE THEM READABLE AND UNDERSTANDABLE. AND IF THE CITY'S PORTFOLIO IS GENUINELY THAT COMPLEX, PERHAPS IT SHOULDN'T BE. SO IN LOOKING AT OUR POLICY COMPLIANCE, YOU'LL SEE THE LISTING OF COMPLIANCE STATUS. WE HAVE HERE AN ISSUE THAT WE'VE DESCRIBED BEFORE AND EXPLAINED BEFORE WHERE YOU SEE OUR CORPORATE ISSUER CONCENTRATION. IT SHOWS AS NONCOMPLIANT. WE ARE IN COMPLIANCE. THIS IS SOME FACTOR OR FEATURE OF CLEARWATER IN THEIR REPORTING. THE COMPLIANCE IS REQUIRED AT THE TIME OF PURCHASE, NOT AT THE TIME OF YOUR HOLDINGS WHEN THIS REPORT WAS CREATED. WHEN WE PURCHASED THE SECURITY WITHIN THE CORPORATES, WE WERE IN COMPLIANCE WITH THE CORPORATE. WE'VE CHECKED WITH GFOA, WE'VE CHECKED WITH GIOA AND OTHER STATE AGENCIES, AND WE REMAIN IN COMPLIANCE. THIS IS SIMPLY A FEATURE OF CLEARWATER THAT WE'RE UNABLE TO CORRECT AT THIS TIME. HERE YOU SEE OUR 25-26 PERFORMANCE. WE'RE WITHIN OUR THIRD QUARTER. OUR TOTAL INVESTMENT PORTFOLIO IS 77,897,000. WE ARE TRACKING ALONG SLIGHTLY SHY OF WHERE WE WERE FOR ASSETS UNDER MANAGEMENT FOR THE PREVIOUS FISCAL YEAR. BUT OUR INTEREST YEAR EARNED YEAR TO DATE IS TRACKING COMPETITIVELY. AND RIGHT ALONG WITH WHERE WE STOOD LAST YEAR. YOU SEE THE CONCENTRATION OF WHERE WE HAVE OUR MONEY IN BANKS, IN CAMP, OUR LOCAL AGENCY INVESTMENT FUND, OUR COMMERCIAL PAPER AND OUR CORPORATE NOTES. IT LOOKS LIKE THERE'S A LARGE INCREASE IN LAIF. I THINK YOU MAYBE TALKED ABOUT THIS LAST TIME YOU WERE HERE. THERE HAS BEEN AN INCREASE IN LAIF. WE INTERCHANGE MONEY FROM CAMP AND LAIF AND WHERE LAIF PERHAPS IS OUTPERFORMING CAMP, WE'RE ABLE TO MOVE FUNDS OVER. AND WHERE THE REVERSE HAPPENS WE DO THE SAME. IN ORDER TO STAY LIQUID, BUT MAINTAIN A COMPETITIVE AND REASONABLE RATE OF RETURN. SPEAKING OF THAT, ONE OF THE QUESTIONS I HAD, I REMEMBER OUR DISCUSSION OF OF LAIF AND CAMP, BUT FRANKLY, I COULDN'T EXPLAIN TO SOMEONE RIGHT NOW WHAT'S IN EACH OF THOSE. DO YOU HAVE A GLOSSARY THAT YOU ATTACH TO YOUR REPORT THAT WOULD GO INTO THAT? ALL THE OTHER ASSETS I'VE DEALT WITH AND I UNDERSTAND WHAT THEY ARE. SOMEONE FROM THE PUBLIC WHO WOULD PICK UP ONE OF THESE REPORTS MIGHT NOT KNOW, AS I CAN'T RECALL THE DETAILS OF CAMP AND LAIF. SO I THINK IT'D BE HELPFUL IF YOU COULD HAVE A ONE PAGER TO EXPLAIN WHAT EACH OF THOSE CATEGORIES OF INVESTMENTS ARE. THEY INVEST DIFFERENTLY AND HAVE DIFFERENT HOLDINGS. WE COULD SEE IF LAIF AND CAMP CAN PROVIDE US A SUMMARY OF THEIR INVESTMENTS FROM THEIR PORTFOLIO REPORTS. YEAH. I'M LESS CONCERNED ABOUT SEEING A LIST OF EXACTLY WHAT THEY HAVE, BUT JUST SAY WHAT WHAT THEY TELL, WHAT THEY INVEST IN AND WHY WE'RE USING THEM. SOME BACKGROUND FOR FOR THAT. BREAKDOWN OF PERCENTAGES OF THEIR INVESTMENT. YEAH. WHO ARE THEY, YEAH. AND I WOULD THINK THAT NILESH OR RICK MAY BE ABLE TO ANSWER THIS QUESTION. LAIF HAS THEIR OWN INTERNAL INVESTMENT POLICIES WITH REGARD TO PERCENTAGES THEY CAN MAKE AVAILABLE TO US. YEAH. RICK, DID YOU WANT TO GO OVER THAT A LITTLE BIT IN DETAIL? SURE. YEAH. JUST THE BASIC DIFFERENCE. AND WE COULD HELP PROVIDE THAT SUMMARY LIKE YOU'RE ASKING IS CAMP RUNS A LITTLE SHORTER, BUT THEY HAVE MUCH MORE CREDIT EXPOSURE, COMMERCIAL PAPER, CORPORATE BONDS, THINGS LIKE THAT. BUT THEY RUN SHORTER ON DURATION, ABOUT 40 TO 60 DAYS. LAIF RUNS A LOT LONGER. IT'S 250 DAYS, BUT THEY HARDLY HAVE ANY CREDIT EXPOSURE. SO IT'S REALLY A DURATION DIFFERENTIAL AND A CREDIT DIFFERENTIAL. SINCE INTEREST RATES HAVE COME DOWN, THE FED FUNDS RATE THE LAST FEW YEARS, LAIF BEING A LONGER DURATION, LIKE EUGENE SAID, HAS A LITTLE BIT HIGHER YIELD THAN CAMP RIGHT NOW. BUT WE COULD HELP WRITE A COUPLE PARAGRAPHS JUST TO EXPLAIN THE GENERAL DIFFERENCES. [00:10:04] DOES THAT SATISFY THE REQUEST? COMMISSIONER WOODHAM. I THINK SO. YOU MENTIONED COMMERCIAL PAPER. WE'VE GOT COMMERCIAL PAPER. THE QUESTION IS, WOULD WE EVER GET TO A POINT WHERE WE HAD ENOUGH INVESTMENT IN LAIF THAT WE ARE IN DANGER OF, OF OF EXCEEDING OUR, OUR COMMITMENT GUIDELINES TO SOMETHING LIKE COMMERCIAL PAPER? NOT WITH LAIF. WE HAVE A GREAT DEAL OF LATITUDE FOR A PERCENTAGE OF THE PORTFOLIO THAT CAN BE INVESTED WITHIN LAIF. WITHIN CAMP, IT'S LIMITED TO 20% OF THE TOTAL PORTFOLIO. SO IF WE HAD IF THE QUESTION IS, WILL WE REACH A THRESHOLD WHERE WE'RE EXCEEDING OUR INVESTMENT POLICY GUIDELINE FOR INVESTMENT IN LAIF, THEN IT'S UNLIKELY WE WOULD WE WOULD ACHIEVE THAT RESULT. YEAH. OKAY. MOVING ALONG THEN. YOU CAN SEE. I BEG YOUR PARDON? GO AHEAD. COMMISSIONER, MARIN, ON, I GUESS AGAIN, YOU SAID WE'RE KIND OF LIKE. RIGHT, JUST UNDER 78 MILLION AT THE END OF THE THIRD QUARTER. IS THAT IN LINE WITH YOUR PLAN? LIKE, DID CASH FLOW LOOK OR THE AMOUNT OF CASH WE HAVE ON HAND? IS THAT IN LINE WITH WHAT YOU ANTICIPATED AT THE END OF THE THIRD? IT'S TRACKING HISTORICALLY, AND THIS WAS THE THIRD QUARTER HERE IN THE FOURTH QUARTER IN IN IT'S NOT REFLECTED HERE, BUT IN THE FOURTH QUARTER, YOU'LL SEE ON OUR NEXT REPORT, WE RECEIVE OUR PROPERTY TAXES. SO YOU'LL TYPICALLY SEE MUCH MORE INFLOW IN THOSE PERIODS IN THE, IN THE SECOND QUARTER AND IN THE FOURTH QUARTER. BUT IT'S TRACKING HISTORICALLY. GOTCHA. BUT AGAIN, I THINK YOU HAD SAID WE WERE RIGHT AROUND 85 MILLION AT THE END OF THIRD QUARTER LAST YEAR. YEAH, I SEE ON THE NEXT SLIDE, IT WAS 84. SAME TIME LAST YEAR WAS 84. YOU'RE SEEING STILL SOME OF A DRAW DOWN HERE WHERE WE EXPERIENCED SOME OUTFLOW AND OUR CASH FLOW NEEDS, WHETHER IT BE FOR INSURANCE PREMIUMS, LAWSUIT SETTLEMENTS, DRAWDOWN BASED ON CIP OR OTHER FACTORS. GOT IT. HOW DO YOU AND STAFF REACT TO THE INVESTMENT RETURNS AND HOW DO YOU? I GUESS THE QUESTION IS WE'RE GETTING ABOUT 3.25% RETURN ON THE PORTFOLIO. AND IN A STABLE ENVIRONMENT, THAT'S 70-75% OF THE TEN YEAR TREASURY. SO HOW DO YOU ON A MONTH TO MONTH AND QUARTER TO QUARTER BASIS GET COMFORTABLE WITH THE RETURNS THAT WE'RE GETTING? DO YOU HAVE A PEER GROUP THAT YOU COMPARE YOURSELVES TO? WE USE THE BENCHMARK THAT YOU SEE THERE, BUT EVERY PORTFOLIO IS DIFFERENT. EVERY CITY IS A LITTLE BIT DIFFERENT. THEIR CASH FLOW NEEDS, THEIR INVESTMENT NEEDS. SOME OF WHAT WE SEE CURRENTLY IN OUR PORTFOLIO IS A PRODUCT OF WHAT WE DID FIVE YEARS AGO. I THINK THE BEST EXAMPLE I CAN GIVE IS WE HAVE A SECURITY MATURING IN JANUARY OF 2027. THAT'S $10 MILLION WAS A FIVE YEAR NOTE, AND THE COUPON ON THAT IS MUCH LOWER THAN WHAT WE CAN ACHIEVE IN A MODERN DAY. SO WHAT WE DO AS A STAFF DURING THE COURSE OF THE YEAR AND EACH MONTH IS WE'RE ANALYZING OUR HOLDINGS AND SEEING IF THERE'S AN OPPORTUNITY THERE, WHILE NOT BETRAYING THE CONCEPT OF SAFETY AND LIQUIDITY BEING OUR PRIMARY CONCERNS. I'LL USE THAT, THAT NOTE, IT'S A $10 MILLION NOTE COMING DUE IN JANUARY AS AN EXAMPLE. YOU'LL SEE OUR DURATION HAS GONE WAY DOWN. A LOT OF THAT IS BECAUSE OF THE SIGNIFICANT PORTION OF OUR INVESTMENTS, UNDER OUR INVESTMENT ASSETS BEING TIED UP IN THAT $10 MILLION AND THAT COUPON, THAT DEPRESSES OUR YIELD AS WELL, BECAUSE THE COUPON ON THAT IS 1.37. SO IT'S AN ANALYSIS THAT WE'RE CONSTANTLY MAKE, LOOKING TO SEE IF THERE'S OPPORTUNITY FOR A SWAP, LOOKING IF THERE'S OPPORTUNITY TO GO OUT LONGER, AS WE'VE DISCUSSED HERE IN THE COMMISSION. OR DO WE WANT TO STAY SHORTER? AND WHAT'S THE COMPOSITION OF A PORTFOLIO? LONG ANSWER TO YOUR QUESTION. WE'RE RECONFIGURING AND ANALYZING IT ON A REGULAR BASIS. OKAY. THANKS. WE CAN SEE HERE THE 25-26 PERFORMANCE AND THE COMPARISON THERE, AS I POINTED OUT, VERY SIMILAR. OUR INTEREST EARNED YEAR TO DATE 1,699,108 IN THE THIRD QUARTER AND 25-26. AND YOU HAD IN THIRD QUARTER OF 24-25, 1,604,265. SO EVEN WITH FEWER ASSETS UNDER MANAGEMENT, WE ARE OBTAINING MORE PERFORMANCE IN OUR YIELD TO THE GENERAL FUND AND TO OUR POOLED CASH. HERE'S OUR CASH FLOW ANALYSIS. AND THIS COMMISSIONER, MARIN, AND I THINK SPEAKS TO YOUR QUESTION WHERE YOU SEE SOME OF THE FLUCTUATIONS. [00:15:04] YOU'LL SEE THERE WHEN WE HAVE DRAWDOWNS IN AUGUST AND SEPTEMBER, WE'RE USUALLY MAKING A LATE, NOT LATE, EXCUSE ME CALPERS PAYMENTS. WE'RE MAKING INSURANCE PAYMENTS. WE MIGHT BE MAKING OTHER REGULAR AP. OUR, OUR PAYROLL MIGHT FLUCTUATE DEPENDING UPON THE MONTH THAT THERE IS AND THE INFLOW OF CASH FROM OUR TOT, OUR REGULAR REVENUE SOURCES THAT ARE PAYING ON A MONTHLY BASIS, BUT MORE SPECIFICALLY, OUR REVENUE SOURCES THAT PAY TWICE A YEAR, LIKE PROPERTY TAX. THE SECTOR ALLOCATION, OUR LGIP OUR AGENCIES, TREASURIES, OUR CORPORATE BONDS AND MONEY MARKETS. WE HAVEN'T SEEN A GREAT DEAL OF BENEFIT IN TAKING MORE CREDIT RISK AND GOING OUT FOR MORE CORPORATE BONDS. THE SPREADS HAVEN'T SEEMED TO TO BE THERE. SO WE'VE BEEN MORE FOCUSED ON AGENCIES AND TREASURIES WHEN WE'VE HAD OPPORTUNITIES TO REINVEST. AND OUR MATURITY DISTRIBUTION, I THINK YOU'LL SEE THIS CHANGING A LITTLE BIT IN OUR NEXT QUARTERLY REPORT TO YOU. WE HAD AN OPPORTUNITY TO GO OUT AND PUT SOME FUNDS INTO LONGER BUCKETS INTO THE THREE AND FIVE YEAR VENUES. SO YOU'LL SEE A LITTLE BIT MORE OF THAT 2 TO 3 YEAR OR 3 TO 5 YEAR OUT WHEN YOU GET OUR NEXT REPORT. INTEREST EARNED YEAR TO DATE. AS MENTIONED, 1,699,108 GENERAL FUND CONTRIBUTION IS 60%, APPROXIMATELY 01,019,465. AND THE REMAINDER GOING TO OUR POOLED CASH. WE HAVE BUDGETED AND TARGETED $1.5 MILLION CONTRIBUTION FROM OUR INVESTMENT EARNINGS INTO THE GENERAL FUND. THAT CONCLUDES TODAY'S SLIDE. TODAY'S PRESENTATION. I'M HAPPY TO ANSWER ANY QUESTIONS THAT YOU MIGHT HAVE. GO BACK TO THAT PRIOR SLIDE ONE SHOWING THE ALLOCATION TO THE GENERAL FUND OF 60%. THAT, I THINK AT EACH MEETING I MENTIONED THAT AS A CURIOUS QUESTION. YOU'RE SAYING THAT THE THE GENERAL FUND HAS ABOUT 60% OF THE PORTFOLIO, RIGHT? THE GENERAL FUND, THE CONTRIBUTION OF OUR INTEREST IS 60% TO THE GENERAL FUND. OKAY. BUT BUT THAT WOULD IMPLY THAT THAT THE THAT THE GENERAL FUND ALWAYS OWNS HAS A 60% INTEREST IN YOUR PORTFOLIO. AND I FIND IT IT CAN'T BE THAT. IT ALWAYS IS 60%. IT VARIES FROM TIME TO TIME, DOESN'T IT? IT CAN VARY FROM TIME TO TIME, BUT THIS IS THE CONTRIBUTION TARGET THAT WE'VE MADE NILESH I DON'T KNOW IF YOU WANT TO SPEAK TO HOW WE HAVE COME UP WITH THE IDEA OF ALLOCATING THE 60% AND THE REMAINDER TO POOLED CASH. YES. SO COMMISSIONER, IT'S AN APPROXIMATE 60%. SO IT VARIES. THERE IS A FLUCTUATION. THE REMAINING 40% IS ALLOCATED TO OUR OTHER FUNDS. BUT IT'S IT IT GOES UP AND DOWN. THERE'S CONSTANT FLUCTUATIONS. THIS IS JUST AN APPROXIMATE BECAUSE WHAT WE DO AS A DEPARTMENT IS WE HAVE TO BUDGET HOW MUCH WE'RE GOING TO BE CONTRIBUTING TO THE GENERAL FUND EACH FISCAL YEAR. SO, FOR EXAMPLE, THIS FISCAL YEAR, WE PREDICTED THAT WE'LL BE EARNING ABOUT 1.5 MILLION. THAT'S GOING TO BE CONTRIBUTED TO THE FUND. OF COURSE, OUR INVESTMENT RETURNS ARE WAY, WAY HIGHER THAN THE 1.5 MILLION, BUT THAT GETS ALLOCATED AND DISBURSED ACCORDINGLY. BUT THIS IS JUST A WAY FOR US TO SEE IF WE'RE ON TARGET. ONE OF THE QUESTIONS THAT YOU HAD MENTIONED EARLIER IS, WHAT DO WE DO TO TRACK OUR PERFORMANCE? THIS IS ONE OF THE THINGS THAT WE DO. SO AS YOU CAN SEE, IF YOU DIVIDE THE 1.5 MILLION BY EACH QUARTER, WE ARE EXPECTING TO MEET OR BEAT THAT THIS FISCAL YEAR. THAT MAY NOT ALWAYS BE THE CASE BECAUSE OF THE FLUCTUATIONS IN THE INTEREST RATES. BUT THAT'S WHY WE TRY TO BE AS CAREFUL IN OUR ANALYSIS FOR THE BUDGETING PART OF IT. I THINK THE FINANCE DIRECTOR HAS A COMMENT ON THAT AS WELL. YES. YEAH. I'LL JUST SAY, WHEN WE ACTUALLY DO THE INTEREST ALLOCATION MONTH BY MONTH, WE ARE DOING IT BASED ON ACTUALS. SO I THINK, YOU KNOW WHAT MR. MEHTA IS SAYING IS THAT'S A BUDGET. SO WHEN WE DO THE INTEREST ALLOCATION, WE LOOK AT THE TOTAL FUND AND EACH FUND'S KIND OF PERCENTAGE OF THE TOTAL ASSETS AND WE ALLOCATE IT ACCORDINGLY. SO THE ACTUAL IT MAY NOT BE THE 60%, BUT IT'S PRETTY CLOSE. THAT'S UNDERSTANDABLE. AND THAT THAT I WOULD SUGGEST TO YOU USE THE TERM APPROXIMATELY 60% HERE, BECAUSE WHEN I READ THIS, IT IMPLIES THAT IT IS 60% AND IT IS ALWAYS 60%. WE HAVE APPROXIMATELY WRITTEN RIGHT THERE ON THE SLIDE. [00:20:03] YEAH. MAY I RECOMMEND SOMETHING? SO IN WHAT I SEE OTHER MUNICIPALITIES DO, AND THIS IS A STANDARD PROCESS AND I IT MIGHT BE REQUIRED TO ON A MONTHLY BASIS. THE ACCOUNTING TAKES THOSE NUMBERS FROM INVESTMENTS AND THEY ALLOCATE IT TO DIFFERENT FUNDS. SO THEY CREATE A LITTLE REPORT SAYING THIS, THIS MUCH OF IN OUR BUDGET, WE HAVE THIS MUCH MONEY IN A GENERAL FUND, THIS MUCH MONEY IN ENTERPRISE FUND, ETC. AND THEN YOU CAN CALCULATE HOW MUCH OF THAT COMES FROM THE INTEREST. SO THAT'S A STANDARD PROCEDURE OR PROCESS THAT I'VE SEEN IN MONTHLY REPORTS IN STAFF REPORTS THAT THEY. BUT THAT'S DONE BY ACCOUNTING. SO THEY TAKE YOUR NUMBERS THE INVESTMENTS AND THEN ACCOUNTING DOES THAT. SO IF YOU PROVIDE THAT, THAT WILL THAT WILL BE A MORE ACCURATE NUMBER BECAUSE I AGREE WITH COMMISSIONER WOODHAM, AND IT WILL TELL YOU EXACTLY WHAT IT IS. WE CAN COORDINATE THAT ON A QUARTERLY BASIS WITH FINANCE. YEAH. THAT GETS BACK TO A POINT I HAVE HAVE RAISED BEFORE. AND THAT IS IT WOULD BE HELPFUL ON A QUARTERLY OR ANNUAL BASIS AND NO LESS FREQUENTLY THAN ANNUALLY TO LOOK AT WHO OWNS HOW MANY DOLLARS OR WHAT PERCENT OF YOUR 70 OR $80 MILLION PORTFOLIO. I KNOW THERE ARE LOTS OF FUNDS THAT LOTS OF GROUPS THAT RECEIVE MONEY, THEY PUT IT IN, IN, IN THE THAT FUND. BUT IT'D BE HELPFUL FOR US TO KNOW WHO OWNS WHAT PERCENT OR WHAT DOLLAR AMOUNT OF THAT TOTAL PORTFOLIO. UNDERSTOOD. THAT'S WHEN THEY DO THAT REPORT. THAT'S THAT GIVES YOU THAT. YEAH. SO THAT REPORT, IF WE HAD SUCH A REPORT, IT WOULD TELL US EXACTLY THAT. WE COULD HAVE SOMETHING REFLECTED FOR YOU FOR YOUR NEXT QUARTERLY REPORT. OKAY. THANKS. ANY OTHER QUESTIONS? OKAY. WELL, IF THERE'S NOTHING ELSE FOR US, THEN WE WILL LEAVE YOU TO PUBLIC COMMENT AND TO RECEIVE AND FILE OUR REPORT. ANY PUBLIC COMMENTS ON THE TREASURER'S REPORT? NO. ONE ON ZOOM. AND ONE SECOND. NO ECOMMENTS. ALSO, WE NEED TO BACK UP A MOMENT. THE CONSENT CALENDAR INCLUDED MINUTES FROM THE LAST MEETING. WE NEED TO ADDRESS THOSE MINUTES AND DECIDE WHETHER TO ACCEPT THEM OR NOT. HAVE YOU ALL HAD A CHANCE TO LOOK AT IT? IF IF IF NOT, RAISE QUESTIONS IF YOU HAVE. COULD I GET A MOTION TO ACCEPT THE MINUTES FROM THE LAST MEETING? IS THAT A MOTION? YEAH. SECOND. SECOND. ALL IN FAVOR? AYE. OKAY. MINUTES ARE ACCEPTED. DID WE NEED TO ACCEPT AND FILE THIS ONE? YES. YES, WE DO THAT ALREADY. YEP. OH. GOOD POINT. CAN I GET A MOTION TO ACCEPT AND FILE THE TREASURER'S REPORT? MOTION TO ACCEPT AND FILE. SECOND. ALL IN FAVOR? AYE. THANK YOU COMMISSIONERS. THANK YOU. OKAY. ITEM J.2 AND J.3 CONCERNED THE LETTERS THAT WE HAVE BEEN TALKING ABOUT SENDING TO CITY COUNCIL. WE KEEP THESE ON THE AGENDA JUST TO REMIND OURSELVES THAT WE NEED TO DO THAT. SO I HAD PROMISED THAT I'M GOING TO WRITE THEM. AND THE PROMISE IS IN MOTION. I HAVE NOT I HAVE NOT HAD TIME TO DO ANYTHING. I UNDERSTAND. NO. NO PROBLEM. WE'LL KEEP KEEP THEM ON THE AGENDA FOR NEXT MEETING. JUST TO REMIND OURSELVES. YES. THANK YOU. COMMISSION REFERRALS TO TO STAFF. [K. COMMISSION REFERRALS TO STAFF] FIRST OF ALL, THERE'S NO OTHER AGENDA ITEM, SO WE CAN'T ASK FOR OTHER NEW BUSINESS. OKAY. COMMISSION REFERRALS TO STAFF. I DO NOT HAVE ANYTHING TODAY. OH, SORRY. PARDON THE INTERRUPTION. NO, NO, ECOMMENTS NOT ON ZOOM FOR J.2 OR J.3. OKAY. NOTHING FOR ME. SO MAKE SURE J.2 AND J.3 STAY ON THE AGENDA. RIGHT. OKAY. WE MAY HAVE A RECORD SHORT MEETING TONIGHT. IF THERE ARE NO REFERRALS TO STAFF, I WOULD ENTERTAIN A MOTION TO ADJOURN. MOTION TO ADJOURN. SECOND. ALL IN FAVOR? AYE. WE'RE ADJOURNED. * This transcript was compiled from uncorrected Closed Captioning.