Aug 13, 2026 Budget & Finance Commission

[A. CALL TO ORDER]

[00:00:02]

I'D LIKE TO CALL TO ORDER THE AUGUST MEETING OF THE REDONDO BEACH BUDGET AND FINANCE COMMISSION.

COULD WE START WITH A ROLL CALL? COMMISSIONER MARIN.

HERE. COMMISSIONER JESTE. HERE. COMMISSIONER ALLEN.

ABSENT. COMMISSIONER SHERBIN. HERE. AND CHAIR WOODHAM.

HERE. LET'S STAND AND SALUTE THE FLAG. READY? 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]

[E. BLUE FOLDER ITEMS - ADDITIONAL BACK UP MATERIALS]

AND THE 2ND WAS THE THE METER QUARTERLY REPORT.

SO DO WE HAVE TO APPROVE THE RECEIPT OF THOSE BLUE FOLDER ITEMS? YOU NEED TO MAKE A MOTION TO RECEIVE AND FILE THEM.

OKAY. CAN I HAVE A MOTION TO RECEIVE AND FILE THOSE 2? BLUE FOLDER ITEMS MOTION TO RECEIVE AND FILE SECOND.

ALL IN FAVOR? AYE. AND THE CONSENT CALENDAR IS NEXT.

[F. CONSENT CALENDAR]

MOVING ON TO ITEM H.1. I'M SORRY I ITEMS CONTINUED FROM PREVIOUS AGENDAS.

[I. ITEMS CONTINUED FROM PREVIOUS AGENDAS]

CHAIRMAN ALLEN IS WORKING ON LETTERS FOR BOTH OF THOSE, SO WE'LL KEEP THOSE ON THE AGENDA AND KEEP MOVING THEM FORWARD.

OKAY, MOVING INTO SECTION J ITEMS FOR DISCUSSION, WE BEGIN WITH THE CITY TREASURER'S 4TH QUARTER REPORT.

[J. ITEMS FOR DISCUSSION PRIOR TO ACTION]

WE'RE HERE TO PRESENT THE COMMISSION, OUR REGULAR REPORTING FOR THE 4TH QUARTER OF THE CITY'S INVESTMENT REPORT.

THIS IS A SUPPLEMENT TO YOUR REGULAR MONTHLY REPORTING.

YOU SEE, WITH US TONIGHT WE HAVE THE TREASURER'S REPORT ALL STAR EDITION.

WE HAVE WITH US TONIGHT OUR NEW CHIEF DEPUTY CITY TREASURER, SARAH MEACHAM, WHO DID A LOT OF WORK ON THIS REPORT AND HAS INCORPORATED MANY OF YOUR SUGGESTIONS FROM THE LAST MEETING THAT WE HAD INTO THE SLIDE PRESENTATION FOR YOU.

WE ALSO HAVE WITH US TONIGHT FROM MEEDER INVESTMENTS, OUR CHIEF INVESTMENT ADVISOR, GREG BALLS, AND MANAGING DIRECTOR PAULINA WU FROM MEEDER.

WHAT WE'D LIKE TO DO AHEAD TO GET STARTED TONIGHT IS INTRODUCE YOU TO CHIEF DEPUTY MEACHAM, AND WE'LL HAVE AN ECONOMIC UPDATE FROM GREG BALLS.

SARAH. IS THAT ON? WE'RE GOING TO START WITH GREG GIVING US A MORE CURRENT MARKET UPDATE.

THE ONE THAT YOU HAVE ATTACHED TO THE ADMIN REPORT IS FROM JUNE, AND GREG'S GOING TO GIVE US AN UPDATE THROUGH CURRENT, SO I'M GOING TO TURN IT OVER TO GREG. YEAH. DO YOU WANT TO RAISE THAT? GREG. YOU CAN RAISE THE PODIUM IF YOU'D LIKE TO.

YEAH. IF YOU DON'T RAISE THE PODIUM, THE SPEAKER ENDS UP BEING THERE YOU GO.

I THINK YOU GOT TO PRESS PUSH ON THE. OH, THERE IT GOES. THERE YOU GO. OH I SEE.

[00:05:02]

IF YOU HAVE ANY QUESTIONS AT ANY POINT IN TIME, FEEL FREE TO STOP ME, SIR, IF YOU CAN GO FORWARD.

SO WE DO HAVE WHAT WE CALL THE FIGEY OUTLOOK.

AND WHAT THE FIGEY OUTLOOK IS, IS BASICALLY YOU LOOK AT THE FED POLICY INFLATION GROWTH, EMPLOYMENT AND YIELDS.

AND THAT'S REALLY WHAT DRIVES WHAT HAPPENS WITH WITH THE THE PORTFOLIO AND HOW IT HOW IT PERFORMS. AND SO I THINK AN IMPORTANT ASPECT, ONE OF THE MOST IMPORTANT ASPECTS ARE THE 2 LAST BULLET POINTS.

THEY'RE SHORT TERM YIELDS ARE DRIVEN BY WHAT THE FED DOES.

WHEREAS LONGER TERM YIELDS ARE DRIVEN BY INVESTORS LONG TERM VIEW ON GROWTH AND OR INFLATION.

THE REASON WHY THAT'S IMPORTANT IS BECAUSE IT HELPS YOU UNDERSTAND WHY THE YIELD CURVE IS ACTING THE WAY IT IS ACTING.

AND WE'LL TALK A LITTLE BIT ABOUT THAT IN A MOMENT.

1 MORE SLIDE THERE, RIGHT THERE. SO A BIG ITEM THAT HAS OCCURRED OVER THE LAST QUARTER IS JAY POWELL IS NO LONGER THE FED CHAIRMAN. IT IS NOW KEVIN WARSH. HE HE ASSUMED THAT ROLE HE WAS CONFIRMED IN IN MAY.

AND SO I'M NOT GOING TO GO OVER THIS TOO MUCH EXCEPT TO SAY THAT THERE IS A CHANGE AT THE THE HELM OF THE FED AND AND THE WAY IT'S GOING TO BE INTERESTING HOW HE HE LEADS THE FED. HE WANTS TO HAVE LESS FORWARD GUIDANCE, FOR EXAMPLE, LESS MEETINGS.

HOW DOES THAT REALLY AFFECT THE MARKET? AND SO THAT'S WHAT WE'RE KIND OF WAITING TO, TO SEE.

AND, AND WE'LL, WE, WE HAVE A MEETING. OUR NEXT MEETING IS COMING UP IN SEPTEMBER.

THUS FAR, HIS LAST 2 MEETINGS, HE HASN'T REALLY GIVEN MUCH GUIDANCE AT ALL.

YOU KNOW, FOLLOWING SUIT WITH WHAT EXPECTATIONS WERE.

SO IF YOU GO TO THE NEXT PAGE THERE, SARAH. SO THIS IS THE FED FUNDS FUTURES.

WHAT THE MARKET EXPECTS THE WHERE THE FED FUNDS WILL BE AT A PARTICULAR POINT IN TIME.

AND SO BY THE END OF THE YEAR SPECIFICALLY. AND SO RIGHT NOW THE MARKET IS EXPECTING POTENTIALLY 2 HIKES BY YEAR END.

NOTICE BACK IN JANUARY THE END OF DECEMBER THE MARKET WAS EXPECTING 2 RATE CUTS.

NOW WHAT'S HAPPENING IN IRAN WITH ENERGY PRICES GOING HIGHER.

THAT HAS PUSHED THE MARKET TO EXPECT THE FED TO ACTUALLY HIKE RATES.

AND SO WHAT WE'VE SEEN ARE LONGER DATED RATES HAVE GONE HIGHER AS INVESTORS HAVE EXPECTED THE INFLATION TO ACTUALLY GO HIGHER.

AND WHEREAS THE SHORT TERM RATES STILL HAVEN'T GONE HIGHER OR EXCUSE ME, THEY'VE SEEN STAYED RANGEBOUND BECAUSE THAT'S WHAT THE FED CONTROLS.

AND SO WHAT THE MARKET EXPECTS IS AGAIN FOR THE FED TO HIKE RATES 2 TIMES BY THE END OF THE YEAR.

SO IF YOU GO TO THE NEXT PAGE THERE. SO THAT'S THE THE F OF THE FIGEY.

NOW THE BIG REASON FOR THAT EXPECTATION IS INFLATION.

SO IN THE GREEN THAT IS CPI IN THE THE ORANGE THAT IS WHAT WE CALL TRUFLATION.

AND JUST TO GIVE YOU SOME DIFFERENTIAL HERE. SO THE CPI IS TYPICALLY WHAT YOU HEAR OUT THERE IN THE MARKET.

AND THE THE FED HAS A 2% TARGET. WE ARE ABOVE THAT TARGET.

AND THE CONCERN THAT HAD BEEN HAPPENING IS WE.

BECAUSE OF ENERGY PRICES CPI HAS TRENDED HIGHER.

IT GOT UP TO 4.2% THAT YOU CAN YOU CAN SEE THERE.

AND WE BELIEVE THAT'S WHERE IT PROBABLY HAS PEAKED.

AND IT STARTED TO TREND LOWER AND IS NOW AT 3.4%.

NOW THE REASON WHY WE HAVE TRUE INFLATION THERE IS BECAUSE TRUFLATION IS MORE OF A REAL TIME DATA OF INFLATION IS SCRAPING THOUSANDS UPON THOUSANDS OF PRICES THROUGHOUT THE THE ECONOMY.

AND AS YOU CAN SEE, IT IS LOWER THAN CPI. NOW IF WE GO BACK TO 2020, NOTICE HOW TRUFLATION WENT HIGHER.

KIND OF LED WHAT CPI DID. AND NOW IT IS LOWER THAN CPI.

AND SO THERE ARE SOME WHO LOOK AT THAT AND SAY HEY WITH TRUFLATION WHERE, WHERE IT'S AT, WE WE FEEL THAT CPI COULD GO LOWER.

NOW WHY IS THIS IMPORTANT? WHY AM I TELLING YOU THIS? HOW DOES IT AFFECT YOUR PORTFOLIO? IT'S BECAUSE AS WE GO BACK TO THAT THAT FED FUNDS FUTURE YOU KNOW THEY'RE PRICING IN 2 HIKES.

THE QUESTION BECOMES IS THE FED REALLY GOING TO BE ABLE TO DO THAT.

BECAUSE IF THE FED DOES HIKE THAT'S GOING TO AFFECT YOUR OVERNIGHT FUNDS WITH WITH THE BANK LAUGH AND ALSO CAMP.

AND SO DEFINITELY KEEPING AN EYE ON THAT. THE 2ND TO THE LAST BULLET POINT, I THINK IS A REAL IMPORTANT FED CHAIR WARSH RECENTLY DISCUSSED USING MORE MARKET BASED INFORMATION. AND SO AGAIN, HE DOES WANT TO CHANGE SOME OF THE ASPECTS OF WHAT THEY LOOK AT AT THE FED.

IF YOU GO TO THE NEXT PAGE THERE SARAH. QUESTION.

YES. COULD YOU GO INTO THE DEFINITION OF TRUE INFLATION AND HOW THAT'S CALCULATED? WHAT ITEMS ARE CHANGED. YEAH. SO YEAH, SO TRUFLATION.

[00:10:04]

SO THEY'RE TAKING THOUSANDS UPON THOUSANDS OF BASKET OF GOODS.

AND SO THEY LOOK AT THE INTERNET. I MEAN THEY'RE JUST LOOKING AT PRICES IN REAL TIME.

AND SO IT'S A IT'S A IT'S A REAL TIME LOOK VERSUS CPI, WHICH IS A LITTLE BIT MORE BACKWARD LOOKING IN A DIFFERENT BASKET.

SO. IF YOU GO AS FAR AS GROWTH, THE ECONOMY IS STILL GROWING, 1.5% WAS FOR Q.2. AS YOU LOOK AT THE BLOOMBERG SURVEY ESTIMATES, THEY EXPECT I THINK THEY JUST SAY 2% JUST TO THROW A NUMBER OUT THERE.

BUT BUT YEAH, SO WHEN YOU LOOK AT THE ECONOMY, WE DON'T SEE THE ECONOMY SLOWING TO A RECESSION RIGHT NOW, ALTHOUGH WE ARE COGNIZANT OF THERE ARE CERTAIN PARTS OF THE ECONOMY THAT FEEL THAT WAY, ESPECIALLY THOSE IN THE LOWER INCOME.

IF YOU GO TO THE NEXT PAGE EMPLOYMENT. SO EMPLOYMENT, WE HAD THE MOST RECENT DATA COME OUT NEGATIVE.

WE HAD A NEGATIVE PRINT ON THE NON-FARM PAYROLLS.

HOWEVER EMPLOYMENT DOES REMAIN TO BE I MEAN IT HAS REMAINED TO BE RESILIENT VERY VOLATILE.

WHAT I REALLY LIKE TO LOOK AT IS ACTUALLY THE THE INITIAL JOBLESS CLAIMS AND THE CONTINUING CLAIMS. BECAUSE AS YOU LOOK AT THOSE NUMBERS, THOSE STILL REMAIN TO BE QUITE LOW, WHEREAS NONFARM PAYROLLS, IT HAS TRENDED LOWER. BUT A LOT OF THAT IS DUE TO THE LABOR SUPPLY.

WE ARE WE ARE A SHRINKING POPULATION RIGHT NOW.

AND SO WE DON'T NEED AS MANY JOBS TO KEEP US OUT OF WHAT WE CALL FULL EMPLOYMENT.

SO WHY IS THIS IMPORTANT? THE FED HAS 2 MANDATES.

STABLE PRICES ALREADY. TALK ABOUT INFLATION. AND THEN YOU LOOK AT EMPLOYMENT.

AND SO AGAIN I LOOK AT THE EMPLOYMENT PICTURE.

AND I DON'T I DON'T SEE A REASON WHY THE FED SHOULD REALLY BE AGGRESSIVE IN CUTTING OR OR AGGRESSIVE IN HIKING RIGHT NOW.

IF YOU GO TO THE NEXT PAGE THERE SARAH. RIGHT.

SO ON THE YIELD FRONT, THIS IS THE 2 YEAR NOTE.

WE'RE AT 4.2% IS THE AVERAGE. THAT, THAT, THAT IS, THAT IS THE RATE AS OF 812.

AND SO WE'VE COME OFF THE HIGHS THAT WE SAW BACK IN 2023.

BUT IF YOU LOOK AT WHERE WE WERE THE PREVIOUS ALMOST 20 YEARS, WE'RE STILL IN A PRETTY GOOD SPOT.

WE SEE WE SEE OPPORTUNITY IN INVESTING LONGER TERM 2 TO 5 YEARS WHICH WHICH THE CITY IS LOOKING AT DOING. IF YOU GO TO THE NEXT PAGE, THIS IS THE THE CHANGE IN THE SHAPE OF THE YIELD CURVE.

LOOKING FROM DECEMBER OF LAST YEAR TO A FEW DAYS AGO OR ON THE 12TH.

IT'S INTERESTING. AGAIN, THAT'S ALL WHAT'S HAPPENED IN IRAN.

AND IF YOU NOTICE THE 3 MONTH. I DON'T HAVE A POINTER TO SHOW YOU.

BUT IF YOU LOOK AT THE 3 MONTH THAT IS THAT HASN'T REALLY MOVED UP TOO MUCH.

BUT WE DO EXPECT IF THE FED RAISES RATES, THAT PART OF THE CURVE WILL GO HIGHER.

WHEREAS YOU KNOW, 2 YEARS OUT, 2 TO 5 YEARS, WHICH IS WHAT THE CITY CAN TYPICALLY BUY.

I THINK IT PROBABLY PROBABLY MOVES SIDEWAYS, BUT THERE'S, THERE'S DEFINITELY VALUE IN OUR OPINION, IN, IN INVESTING ALONG THE CURVE. GO TO THE NEXT PAGE THERE.

SARAH. THIS IS JUST SHOWING ANOTHER SNAPSHOT OF THAT 2 YEAR.

THE 2 YEAR AGAIN, LOOKS, LOOKS FAR MORE ATTRACTIVE NOW THAN IT HAS THE LAST COUPLE OF YEARS.

DEFINITELY WE TAKE THAT 4.2% OVER, YOU KNOW, THE 0.18% WE SAW AFTER AFTER COVID.

IF YOU GO TO THE NEXT PAGE THERE, I THINK THAT YEP.

YEAH. SO WHEN IT COMES TO THE, THE ECONOMY, IF I COULD JUST SUMMARIZE, THERE'S A LOT OF VOLATILITY.

WE DO, I DO THINK THAT THE FED HIKES AT LEAST ONCE IN SEPTEMBER OR OCTOBER.

I THINK THE 2ND ONE IS QUESTIONABLE. ALTHOUGH THE MARKET IS EXPECTING 2 HIKES THIS YEAR.

I THINK THE PORTFOLIO IS WELL POSITIONED RIGHT NOW TO TAKE ADVANTAGE OF OF THAT BY THE WAY.

AND SO WE'LL CONTINUE TO WORK WITH THE CITY AND TAKING THE OPPORTUNITIES TO TAKE ADVANTAGE OF THAT.

ANY QUESTIONS FOR ME. YEAH. WHAT WHAT HAS CHANGED, IF ANYTHING IN THE WAY OUR PORTFOLIO IS MANAGED BASED UPON WHAT YOU'RE WHAT YOU'VE JUST DESCRIBED. YEAH.

SO NOW, EUGENE, I DON'T KNOW IF YOU WANT TO JUMP IN HERE.

I WOULD SAY THAT THE BIGGEST ISSUE THAT WE'VE HAD THE LAST COUPLE YEARS IS WITH RESPECT TO CASH FLOW, BEING ABLE TO, TO INVEST OUT THE CURVE MORE. WHERE I THINK YOU'RE NOW AT A POINT IN TIME WHERE MAYBE LESS SPENDING AS FAR AS WHAT'S GOING TO GO OUT OF THE PORTFOLIO. AND IT GIVES YOU A GOOD OPPORTUNITY TO, TO TAKE ADVANTAGE OF THESE HIGHER YIELDS.

[00:15:01]

I THINK THAT'S A FAIR ASSESSMENT. THANK YOU GREG.

WE HAD OUR FUNDS, OUR ASSETS UNDER MANAGEMENT, WE WERE SPENDING OUT AND DOWN OUR ARPA FUNDS.

WE HAD SOME REVENUE CHALLENGES WITH OUR TOT. WE HAD SLOWER GROWTH WITH SOME REVENUE GROWTH, BUT SLOWER GROWTH THAT WE WANTED TO HOLD BACK AND RUN A LITTLE BIT SHORTER TO BE ABLE TO MAINTAIN CASH FLOW.

AND NOW THAT WE'RE SEEING SOME STABILIZATION IN THOSE THINGS WHERE THE ASSETS UNDER MANAGEMENT, A LOT OF THE DISTRIBUTIONS HAVE BEEN MADE AND SOME OF THE REVENUES HAVE STABILIZED, THEN WE'RE ABLE TO GO FURTHER OUT.

AND GREG HAS BEEN ANALYZING LONGER TERM BUCKETS FOR US TO BE ABLE TO LOCK IN MORE MORE YIELD WITHOUT SACRIFICING LIQUIDITY OR SAFETY. OKAY.

THANKS. I HAD A QUESTION FOR YOU, GREG, IF I MAY.

WHEN IT COMES TO CHAIRMAN WARSH SOME OF THE CHANGES THAT THEY MADE, IF I REMEMBER CORRECTLY, WERE THEY GOING TO STOP REPORTING MINUTES OR WERE THEY GOING TO STOP REPORTING THE DOT PLOTS OR MAKE CHANGE TO THAT? YEAH. SO I'M ACTUALLY NOT SURE ABOUT THE MINUTES, BUT ON THE DOT PLOTS, CHAIRMAN WARSH WANTS TO GET AWAY FROM THAT.

AND JUST SO YOU, FOR THOSE OF YOU WHO DON'T KNOW WHAT A DOT PLOT IS, EVERY QUARTER THE FED, EACH FOMC MEMBER SAYS THIS IS WHERE I THINK THE FED FUNDS RATE IS GOING TO BE AT THE END OF THIS YEAR, END OF NEXT YEAR AND THEN LONG TERM. CHAIRMAN WARSH HAS SAID, I DON'T WANT TO DO THAT ANYMORE.

IT'S POINTLESS IN HIS OPINION. IN FACT, THE LAST TIME THE ISSUE, THE DOT PLOT, HE.

HE DID NOT PARTICIPATE IN THAT. SO NOW THE MINUTES.

I'M NOT SURE ABOUT THE MINUTES.

YEAH. SO. OKAY. THERE ARE 2 THINGS. ONE IS THE DOT PLOTS.

THE OTHER IS THE COMMENTARY AFTER MEETING. YEAH.

SO NOT THE MINUTES. BUT LIKE THE PRESS CONFERENCE. YEAH. THE PRESS CONFERENCE. YEAH. AND ALSO HE WANTS TO REDUCE THE NUMBER OF MEETINGS.

AND PART OF THE REASON IS SPECIFICALLY THAT THE FED FINDS ITSELF IN A TRAP WHEN IT DOES THAT, BECAUSE IT SETS EXPECTATIONS. AND THEN THE MARKET HAS EXPECTATIONS.

AND THEN AND THEN IF IT DOESN'T DO WHAT THE MARKET EXPECTS, IT CAUSES ISSUES IN THE MARKETS.

SO HIS THOUGHT PROCESS BEHIND IT, AND AGAIN, NOT TO TRY AND GIVE YOU HIS MIND, BUT IT'S IF WE STOP DOING THAT AND GO BACK TO A MORE GO BACK TO MORE OUR GREENSPAN. ALAN GREENSPAN. THEN THERE'S A LITTLE BIT LESS BUILT IN VOLATILITY IN THE MARKET AND WHAT ACTUALLY STARTED TO HAPPEN A LITTLE BIT.

WHEN WE LOOK AT THOSE IS LIKE WE SAY, OKAY, THE FED PROJECTS HERE, THE MARKET SAYS, OKAY, WE'LL MAYBE GET TO HALF OF WHERE THAT IS OR 3 QUARTERS OF IT.

SO THAT'S WHERE THE MARKET IS SETTING ALL OF ITS RATES AND ALL OF ITS EXPECTATIONS.

SO THE FED ALMOST HAS TO OVERCOMPENSATE FOR THE MARKET DISCOUNT AND IT BECOMES RIDICULOUS.

AND THAT IN SO HE WANTS TO SORT OF TAKE THAT OUT IN THE MARKET.

THE QUESTION IS WHETHER OPACITY IS A MORE EFFECTIVE WAY OF MANAGING THOSE EXPECTATIONS THAN TRANSPARENCY.

AND AGAIN, YOU'VE SEEN IT, THE BLOOMBERG OR THE GREENSPAN YEARS WHERE IT'S LIKE GREENSPAN HAS NEW GLASSES.

WHAT DOES THAT MEAN? IS THAT ANY BETTER THAN SAYING, HEY, THERE'S A DOT PLOT THAT WE EXPECT AND WE DON'T MEET THOSE EXPECTATIONS? SO I THINK IT'S GOING TO KIND OF DEPEND ON WHAT THE ON HOW THAT'S HANDLED, HOW MUCH TRANSPARENCY BECOMES OPACITY.

AND I DON'T THINK, YOU KNOW, WARSH WILL GO BACK TO A COMPLETELY GREENSPAN STYLE FED.

BUT CERTAINLY HE WANTS TO GET RID OF SOME OF THE THINGS THAT CAUSE UNNECESSARY STATIC IN THE MARKETS.

ADDITIONALLY, HE WANTS TO TAKE ANOTHER HACKETT THE WAY WE LOOK AT INFLATION.

SO YOU'VE HEARD ABOUT PCE. PAULINE, IF YOU COULD MAKE YOUR COMMENTS IT'S BECAUSE WE'RE BROADCASTING TO THE PUBLIC.

OH, SORRY. ALL RIGHT. NO NO YOU'RE FINE, YOU'RE FINE.

SO THE OTHER PART IS WARSH IS LOOKING AT A DIFFERENT WAY OF LOOKING AT INFLATION.

SO YOU HAVE PCE WHICH IS PRICE CONSUMER OR PERSONAL CONSUMPTION EXPENDITURES, WHICH IS HOW MUCH CONSUMERS ARE SPENDING ON A REGULAR BASIS.

SO THAT CHANGES EVERY MONTH ABOUT WHAT THEY'RE LOOKING AT.

AND IT'S WHAT'S ACTUALLY BUYING CPI IS IS JUST A FIXED BASKET OF GOODS.

IT'S ALWAYS THE SAME EVERY MONTH UNLESS THE FED CHANGES THE COMPOSITION OF THAT BASKET.

SO NOW YOU HAVE TRIMMED CPI AND TRIMMED PCE, WHICH IS BASICALLY IF YOU TAKE THE CPI NUMBER AND YOU TAKE OFF SOME PORTION OF THE TOP OF IT AND SOME PORTION OF THE BOTTOM, THAT MEDIUM NUMBER ACTUALLY IS SUPPOSED TO MORE ACCURATELY REPRESENT WHERE PRICES ARE.

AND SO THERE'S 2 FORMS OF IT. YOU'VE GOT A CLEVELAND STYLE, WHICH IS CPI.

SO YOU TAKE THE TOP 8% OFF. YOU TAKE THE BOTTOM 8% OFF AND THE MIDDLE IS WHAT YOU'RE TRIMMED INFLATION IS.

AND THEN THERE'S THE DALLAS STYLE TRIMMING. AND THAT IS WITH PCE.

AND THAT'S A WEIRD ONE. I THINK IT'S LIKE 24% OFF THE TOP AND 16% OFF THE BOTTOM.

AND SO YOU GET THIS REALLY NARROW MEDIAN AND THAT REPRESENTS PCE.

AND THAT'S WHAT WHAT WARSH FAVORS IS THIS TRIMMED LOOK AT INFLATION.

[00:20:02]

A REAL REIMAGINING ABOUT 2 THINGS. WHAT THE FED'S ROLE IS, YOU KNOW, IS IT NARROW? IS IT WIDE? HE WOULD ALSO LIKE TO SEE THE FED ITS MANDATES NOT CONFLICT BECAUSE OFTENTIMES FULL PRICE CONTROL AND FULL EMPLOYMENT ARE CONFLICTING MANDATES. SO HE WOULD LIKE TO SEE THAT BECOME LESS.

LIKE TAKE ONE AWAY OR MAKE ONE LESS. AND, AND ALSO TAKE A LOOK AT THE WAY THAT THE FED IS REPORTING DATA AND LOOKING AT DATA, WITH THE GOAL BEING, I THINK TO MAKE SURE THAT THE FED IS NOT IS INDEPENDENT, BUT ALSO STILL HAS LEVERS TO PULL THAT IT HASN'T HAD IN THE RECENT PAST WITH ALL OF THE FINANCIAL DISRUPTIONS THAT WE'VE HAD IN THE PAST DECADE.

WHAT WHAT IS THE, THE GUIDANCE THAT WARSH WANTS TO DO AWAY WITH? NORMALLY YOU WOULD, YOU WOULD THINK THAT. THE FED SPILLING THEIR GUTS ABOUT THEIR THEIR APPROACH TO THE MARKET, WHAT THEY THINK IS GOING TO HAPPEN WOULD BE, WOULD BE PRODUCTIVE.

HE APPARENTLY THINKS THAT SOME OF THAT CAUSES VOLATILITY IN THE MARKET AND HE WANTS TO GET THAT OUT.

BUT IS THAT HIS PRIMARY OBJECTIVE OR HIS, HIS REASON FOR WANTING TO BE LESS OPEN TO THE PUBLIC, I GUESS. YEAH, I WOULD SAY SO. 1, I'M GOING TO PREFACE BY SAYING LIKE, I DON'T KNOW WHAT GOES ON IN HIS MIND.

SO MY THOUGHT ON WHAT THAT IS THOUGH IS THAT THE VOLATILITY THAT IT CAUSES, IT'S NOT NECESSARILY JUST THE VOLATILITY.

IT'S THE POSITION THAT IT PUTS THE FED IN SOMETIMES.

AND A GOOD EXAMPLE IS THIS IS THE 2% INFLATION TARGET, RIGHT? LIKE IF YOU SAY WE'RE GOING TO BE AT 2%, IF YOU GUYS REMEMBER AGAIN, THINK 5 YEARS AGO WHEN INFLATION, INFLATION, THE INFLATION TARGET WAS AT 2%, IT WAS ACTUALLY LOWER THAN 2%.

MAYBE THIS IS LIKE 8 YEARS AGO, BUT EMPLOYMENT WAS STILL SLOW.

GROWTH WAS STILL SLOW. BUT THE FED COULDN'T DO ANYTHING BECAUSE IT WAS LIKE, WELL, YOU HIT YOUR TARGET. WHEN ARE YOU GOING TO START MOVING RATES? YOU'VE HIT YOUR TARGET, YOU'VE HIT YOUR TARGET. AND SO YOU'VE GOT ALL THIS NOISE FROM THE MARKET ABOUT THE TARGET AND ABOUT WHEN YOU SET THESE HARD TARGETS THAT THE FED HAS NO FLEXIBILITY OR THEY GET THE MARKET GETS VERY UNEASY ABOUT IT. SO YOU SAW A CHANGE FROM A HARD 2% TARGET TO A LONG RANGE TARGET LIKE AN AVERAGE.

IF YOU LOOK AT AVERAGE OVER TIME, WHAT DOES INFLATION LOOK LIKE? AND THE FED IS GENERALLY, I THINK, TRYING TO GET AWAY FROM SOME OF THOSE HARD TARGETS.

AND THIS IS PART OF THAT TENDENCY IS TO NOT LOCK THE FED INTO, WELL, YOU MEAN THIS THEN THIS DECISION HAS TO HAPPEN.

AND TO GIVE THEM FLEXIBILITY BECAUSE OF ALL OF THE INTERVENTION IN THE MARKET THAT GOES ON, NOT JUST THE FED BUT BY OTHER CENTRAL BANKS. GREG, SORRY. DO YOU. OH NO. YOU'RE FINE. I THINK THE OTHER THING TOO IS THINK ABOUT IT.

I DON'T KNOW IF I THINK A LOT OF LIKE SPORTS IF YOU'RE WATCHING BASKETBALL, FOR EXAMPLE, HE'S BASICALLY HAS SAID, YOU KNOW, OFTENTIMES THE MARKET IS LOOKING AT THE REF, WHICH IS THE FED AND THEY'RE NOT WATCHING THE MARKET.

YOU KNOW, THEY'RE NOT WATCHING THE ECONOMY, WHICH IS THE, YOU KNOW, THE PLAY. HE SAYS IT'S NOW TIME FOR YOU TO TAKE YOUR EYE OFF THE REF AND LOOK AT WHAT'S GOING ON. AND SO I THINK HE'S KIND OF USED THAT ANALOGY AS WELL.

SO DEFINITELY WANT US TO GO MORE MARKET APPROACH AS OPPOSED TO LIKE HAVING EVERYONE LOOK TO THE FED FOR EVERYTHING.

BUT DO YOU DO YOU THINK THAT'S A VALID POINT? I MEAN, POWELL ALWAYS HUNG HIS HAT ON ON DATA DEPENDENCY.

AND THE DATA THEY WERE LOOKING AT WAS THE ECONOMY.

SO I'M, I'M NOT SURE THAT I UNDERSTAND WHAT WARSH IS TRYING TO DO OR TRYING TO GET AWAY FROM.

BECAUSE WHETHER YOU AGREE WITH SOME OF THE DECISIONS THAT THE FED MADE UNDER POWELL IT'S HARD TO SEE HOW THEIR FOCUS ON THE ECONOMY WAS NOT A TRUE FOCUS ON THE ECONOMY AND WHAT MAKES THE ECONOMY WORSE.

SURE. AND THIS IS WHERE IT BECOMES LIKE PAULINA MENTIONED.

IT'S LIKE WE'RE NOT WE CAN'T GET IN THE HEAD OF WARSH AND WHY I MENTIONED IT'S GOING TO BE REALLY INTERESTING TO SEE HOW EVERYTHING PLAYS OUT.

AND SO I, I DON'T I DON'T KNOW WHAT YOU THINK ON THAT, PAULINE.

OH, SURE. I THINK ONE OF THE OTHER THINGS TO THINK ABOUT IS IN YEARS PAST YOU'D HAVE A MORE, A FED THAT IS MORE ALIGNED, LIKE UNANIMOUS VOTES, 1 DISSENT OR 2 DISSENTERS IN JUST IN THE PAST YEAR, YEAR AND A HALF YOU'VE HAD THE MOST THE FED, THE MOST SPLIT FED YOU'VE EVER HAD.

SO, FOR INSTANCE, WHEN YOU TALK ABOUT DATA DEPENDENCY, THE MEMBERS OF THE FED ARE SEEING THE DATA DIFFERENTLY.

AND SO IT MIGHT ALSO BE, AND THIS IS JUST ME SORT OF THINKING OUT LOUD A REACTION TO HERE'S THE DATA, YOU KNOW, CHAIR, YOU KNOW, FED GOVERNOR GREG SEES IT.

HE WANTS TO VOTE FOR A HIKE. BUT FED GOVERNOR PAULINA WANTS TO VOTE FOR STAYING OR CUT.

AND YOU'RE AND YOU'VE GOTTEN I THINK THE LAST FED VOTE WAS THE IT WAS A SPLIT, LIKE THE BIGGEST SPLIT YOU'VE EVER SEEN IN A FED.

[00:25:02]

AND SO IF YOU HAVE TO PUT OUT SOMETHING AS A COHESIVE.

DOES THAT REPRESENT WHAT THE FED THINKS? WELL, OBVIOUSLY IT DOESN'T IF THE FED IS SPLIT.

SO I THINK THERE'S PART I THINK THAT'S PART OF IT AS WELL. OKAY.

THANKS. THANK YOU. OKAY. ALL SET. THANK YOU. COMMISSIONERS.

WE'LL CONTINUE ALONG WITH OUR PRESENTATION WITH OUR CHIEF DEPUTY AND THE QUARTERLY REPORT.

THANK YOU. EUGENE. PLEASE FEEL FREE TO STOP ME ALONG THE WAY IF YOU HAVE QUESTIONS.

SO, AS EUGENE MENTIONED I TOOK THE OPPORTUNITY AS I WAS PUTTING THIS TOGETHER TO REIMAGINE IT A LITTLE BIT.

I ATTENDED THIS MEETING LAST MONTH AND I SAW SOME, I THINK, EASY AREAS TO IMPROVE THE LOOK AND FEEL OF THIS REPORT AND WHAT WE'RE PROVIDING TO YOU. SO AS I GO THROUGH IT, YOU'LL SEE THAT IT'S A LITTLE BIT DIFFERENT THAN YOU'VE SEEN IN THE PAST.

I WILL ADDRESS THOSE THINGS AS I TOUCH ON THEM, BUT IT ALSO IS A GOOD PAIRING TO THE ADMIN REPORT, WHICH GIVES YOU MORE OF THE ACTUAL DATA. AND WE'RE GOING TO LOOK AT MORE VISUALS IN THE PRESENTATION.

SO THE INVESTMENT OBJECTIVES FOR CALIFORNIA PUBLIC AGENCIES ARE EXTREMELY IMPORTANT.

SAFETY, LIQUIDITY AND YIELD. THEY ARE ACTUALLY PRESCRIBED BY THE CALIFORNIA GOVERNMENT CODE BY 53,600.5.

SO WE THE CITY, HAVE TO FOLLOW THESE IN THIS ORDER.

AND WE CERTAINLY TAKE THAT TO HEART, FOCUSING QUITE A LOT ON THE SAFETY AND LIQUIDITY THAT IS OF ULTIMATE IMPORTANCE.

THOSE COME BEFORE YIELD. AND THEN THIRDLY, YIELD OR RETURN ARE THE FINAL OBJECTIVE.

THIS AGAIN HAS BEEN IN HERE JUST SOME INVESTMENT REPORTING GUIDELINES.

IT'S FORMATTED A LITTLE BIT DIFFERENTLY, BUT JUST TO KEEP IT CONCISE, WE'RE GOING TO KEEP IT IN THE PRESENTATION FOR INFORMATIONAL PURPOSES.

IT'S A GOOD GUIDE FOR FOLKS WHO ARE LESS FAMILIAR WITH PUBLIC INVESTING, WHAT THEY SHOULD BE LOOKING AT, WHAT THEY SHOULD CARE ABOUT, AND WHAT'S IMPORTANT TO ASK IN THE REPORTING TO MAKE SURE YOU'RE DOING GOOD OVERSIGHT.

THIS IS A NEW CHART THAT I WANTED TO ADD IN HERE, BECAUSE I THINK IT HELPS PROVIDE A STRONG PERSPECTIVE ABOUT WHAT THE CALIFORNIA GOVERNMENT CODE ALLOWS AND HOW SAFE THAT REALLY IS. SO WHAT YOU'RE SEEING HERE IS A CHART ON THE LEFT HAND SIDE.

YOU CAN SEE ALL THE NAMES OF THE VARIOUS INVESTMENT TYPES BOTH ALLOWED IN CALIFORNIA GOVERNMENT CODE.

AND THEN BEYOND THAT 1ST BLACK LINE IN THE MIDDLE YOU SEE SORT OF THE UNIVERSE OF POTENTIAL INVESTMENTS.

AND ABOVE THAT LINE IN THE GREEN AREAS IS WHAT IS ALLOWED BY CALIFORNIA GOVERNMENT CODE FOR PUBLIC AGENCIES.

EVERYTHING IN RED IS PROHIBITED. NOT ALLOWED BY CODE, NOT ALLOWED BY THE CITIES POLICY.

THE ORANGE AREAS ARE PERMISSIONS THAT ARE ALLOWED BY CODE, BUT REQUIRE SPECIAL ACTION OF A CITY COUNCIL OR THE LEGISLATIVE BODY.

RICK'S NOT ON THE PHONE, BUT I PUT IT IN HERE FOR HIM.

TECHNICALLY, YOU ARE ALLOWED TO BUY FUTURES OF TREASURIES, AGENCIES, THINGS THAT THE CODE ALLOWS.

THE CITY DOES NOT PERMIT THOSE, BUT I FOOTNOTED THAT.

SO I JUST HOPE THIS IS A REALLY HELPFUL QUICK LOOK AS A REFERENCE PIECE.

IF YOU'RE SUPER INTO PUBLIC INVESTING IN CALIFORNIA, YOU CAN PRINT THIS OUT AND HANG IT ON YOUR WALL.

IT'S A VERY NICE PIECE TO HAVE. JUST AS A QUICK LOOK.

AND I WOULD SAY THAT THE CALIFORNIA GOVERNMENT CODE GIVES US EXTREMELY STRONG, SAFE GUARDRAILS THAT WE OPERATE WITHIN.

SO THE STATE CODE OVERLAYING THAT ON TOP OF WHAT WE DO IN THE POLICY IS ALREADY VERY SAFE INVESTMENT POLICY COMPLIANCE.

WE ARE ALWAYS WORKING TO ENSURE THAT WE KEEP THE PORTFOLIO IN COMPLIANCE WITH THE CALIFORNIA GOVERNMENT CODE AND THE INVESTMENT POLICY.

THIS IS THE READOUT FROM THE METER INVESTMENT REPORT.

AND YOU CAN SEE THAT AS OF JUNE 30TH, 2026, THE END OF THE 4TH QUARTER, EVERYTHING WAS IN COMPLIANCE.

HERE IS WHERE WE GET INTO SOME NEW INFORMATION.

SO I WANTED TO TAKE MORE OF A HISTORICAL LOOK BACK ON THE PORTFOLIO.

AGAIN, IN THE ADMIN REPORT, YOU HAVE I THINK 4 FISCAL YEARS WORTH OF DATA TO LOOK AT.

SO I TOOK A SLIGHTLY LONGER LOOK BACK HERE. IT'S ABOUT 10 YEARS.

EUGENE MENTIONED THE PERFORMANCE OF THE ASSETS UNDER MANAGEMENT OF THE PORTFOLIO OVER TIME.

AND YOU CAN SEE THAT VOLATILITY HERE. THE THING I WOULD ACTUALLY POINT OUT IS THAT 90 MILLION LOOKS TO BE OUR AVERAGE SORT OF EYEBALLING IT.

[00:30:06]

AND THEN OVER ON THE RIGHT HAND SIDE IS THE SECTOR ALLOCATION OF JUST THE SECURITIES PORTFOLIO.

SO THIS EXCLUDES THE CASH IN THE BANK. SO THE TOP THERE, YOU CAN SEE A LITTLE ORANGE SLICE WE USED TO HAVE BACK IN 2022, SOME NEGOTIABLE CDS IN THE PORTFOLIO. WE'VE MAINTAINED THAT LIGHTER ORANGE COLOR, THE CORPORATE ALLOCATION IN THE PORTFOLIO.

YOU CAN SEE THE FEDERAL AGENCIES ALLOCATION HAS DECLINED A BIT AS WE HAVE UTILIZED MORE IN TREASURIES AND LAIF. AND SO YOU CAN SEE THERE THAT THE TREASURY IS IN GREEN REALLY I'M SORRY, THE LAIF, WE'VE REALLY ACTUALLY ADDED A LOT TO THE LIQUIDITY IN THE PORTFOLIO.

SO THAT VERY LIGHT AT THE BOTTOM IS THE MONEY MARKET FUND.

THE DARKER BEIGE IS CAMP. SO WE HAD THAT FOR A PERIOD OF TIME IN 2025 WHEN THAT YIELD WAS HIGHER THAN LAIF.

AND NOW WE'VE MOVED THAT LIQUIDITY BACK TO LIFE.

SO POST JUNE 26TH, WE'VE GOT MORE OF A LAIF BALANCE IN THERE NOW.

OKAY. SO THAT'S THE SECTOR ALLOCATION OVER TIME.

CAN I ASK A QUESTION REAL QUICK? YES PLEASE. YEAH.

I KNOW YOU KNOW, IN JUNE OR WHAT HAVE YOU. WE KIND OF GOT BACK TO OUR AVERAGE AT 90, BUT WE'RE STILL IN A PRETTY STRONG DOWNWARD TREND.

AND A COUPLE OF DIFFERENT MONTHS IN THE LAST YEAR HAVE KIND OF THE LOWEST WE'VE SEEN SINCE 2020.

JUST HOW DO WE FEEL ABOUT THE TRENDS? DO WE THINK IS THAT, YOU KNOW, AN ANOMALY? DO WE THINK WE'RE GOING BACK UP? BECAUSE I THINK YOU HAD MENTIONED EARLIER THAT YOU MIGHT START BUYING FURTHER OUT ON THE CURVE NOW BECAUSE YOU'RE MORE COMFORTABLE WITH OUR CAST POSITION. I THINK THAT TREND HAS HAS LEVELED OUT AND WE'LL SEE SOME IMPROVEMENT OVER THAT AS SOME OF OUR REVENUE STREAMS COME ONLINE IN THE NEXT 18 MONTHS. WE'LL HAVE PROBABLY AN INCREASE IN TOT MAY HAVE A CHANGE IN OUR UT TAX AND YOU'LL SEE A LITTLE BIT MORE REVENUE FROM PROPERTY TAXES AS WELL.

SO I THINK WE'RE, WE'RE COMING BACK TO OUR MEAN AND IT'S STABILIZED.

I FEEL CONFIDENT IN THAT. YEAH. AND I RAN SOME AVERAGES ACTUALLY ON THIS DATA.

SO THE 10 YEAR AVERAGE IS 90.4 MILLION. THE 3 YEAR AVERAGE IS 89.9.

AND WE ENDED JUNE AT RIGHT AROUND 8990. SO WE'RE RIGHT BACK AGAIN IN THAT SWEET SPOT.

AND AS GREG MENTIONED, WE'RE LOOKING A LITTLE BIT FURTHER OUT THE CURVE.

WE'VE SEEN THE ONE TIME MONIES GO OUT THE DOOR.

THEY'RE NOT COMING BACK. SO THAT FLUCTUATION IS OVER AT THIS POINT.

AND WE'RE ACTUALLY GOING TO KICK OFF A CASH FLOW PROJECT NEXT WEEK THAT WILL SUPPORT OUR ABILITY TO INVEST LONGER AND WILL INFORM THAT.

SO I'LL BE WORKING WITH FINANCE TO BUILD A MODEL TO FORECAST OUR CASH FLOWS.

AND THEN LOOKING AT THE JUNE 3RD. SORRY. THE QUESTION THE QUESTION OF INVESTING LONGER.

YEAH. ANY IDEA WHAT RANGE OF INCREASE IN AVERAGE MATURITY YOU'RE ENVISIONING WITH THAT STUDY? YEAH. SO I USED TO MANAGE MONEY FOR PUBLIC AGENCIES FOR ABOUT 20 YEARS.

AND THE TYPICAL STRATEGIES THAT WORK FOR CALIFORNIA PUBLIC AGENCIES, BECAUSE WE CAN ONLY INVEST UP TO 5 YEARS, TEND TO BE A 0 TO 5, 0 TO 3, A 1 TO 3, A 1 TO 5.

SO THOSE COULD BE THE MATURITY RANGES THAT WE WOULD USE.

AND I WOULD, YOU KNOW, WE THINK COLLECTIVELY ABOUT THE OVERALL PORTFOLIO, BUT WHEN YOU'RE THINKING ABOUT THE SECURITIES PORTFOLIO AND ITS DURATION.

IT'S AROUND 0.75 YEARS RIGHT NOW. WE JUST MADE SOME REINVESTMENTS THAT I THINK ARE GOING TO BRING THAT OUT TO A YEAR, BUT I WOULD PERSONALLY LIKE TO SEE US GET TO 1 AND A HALF OR 1.75 YEARS.

THAT'S THAT 1 TO 3 DURATION OR AVERAGE MATURITY, BECAUSE THE LIQUIDITY THAT WE KEEP IN CAMP AND ARE STILL GOING TO PULL THAT DOWN, AND OUR OVERALL AVERAGE WILL STILL BE LESS THAN THAT 15175.

IF WE CAN GET THE SECURITIES OUT THAT FAR. AND THAT'S A VERY, VERY TYPICAL COMMON STRATEGY TO HAVE FOR CITIES AND OTHER PUBLIC AGENCIES. AS LONG AS WE KNOW AND ARE COMFORTABLE WITH OUR CASH FLOWS.

YEP. AND THEN THE POSITIONING AS OF JUNE 30TH, YOU CAN SEE HERE ON PAGE 7 ABOUT 46% OF THE PORTFOLIO IN LGIP. SO AGAIN, THROUGH THAT CASH FLOW ANALYSIS OVERALL WE SHOULD LOOK TO BRING THAT ONE DAY IN THAT 0 TO 1 YEAR PERCENTAGE DOWN A LITTLE BIT.

THAT WHOLE PIECE UNDER A YEAR SHOULD BE LESS THAN THAT.

BUT AGAIN, THE CASH FLOW ANALYSIS WILL DRIVE AND INFORM THAT 17% IN TREASURIES AND 27% IN AGENCIES AND STILL 8%

[00:35:10]

SO YOU'RE LIKELY TO SEE THE TREASURY SECTOR OF THE PORTFOLIO GROW UNLESS WE FIND ADDITIONAL CORPORATE OPTIONS.

WHICH ONE OF THE REINVESTMENTS WE JUST MADE WAS A CORPORATE. AND THEN THE MATURITY DISTRIBUTION OVER ON THE RIGHT HAND SIDE, YOU CAN SEE WHAT WE HAVE IN 1 DAY. SO THAT'S THE MONEY MARKET FUND AND LAIF AND CAMP ADDED UP TOGETHER.

WE HAVE ABOUT 38% IN SECURITIES UNDER A YEAR.

A LARGE PORTION OF THAT IS THAT 10 YEAR, SORRY, $10 MILLION INVESTMENT THAT COMES DUE IN JANUARY.

AND WHEN WE REINVEST THAT, WE'RE GOING TO BREAK IT UP INTO SMALLER PIECES SO WE CAN SPREAD IT MORE ALONG THE CURVE AND DO A BETTER LADDERING.

SO THAT WILL HELP EXTEND AND ALSO SORT OF, YOU KNOW, BUILD OUT LIQUIDITY OVER TIME.

WHAT'S THE CURRENT SPREAD BETWEEN TRIPLE-A CORPORATES AND TREASURIES? I DON'T KNOW ABOUT TRIPLE-A. WE JUST BOUGHT. IT DEPENDS A LITTLE BIT ON THE DURATION.

SO IF THE FURTHER OUT WE GO, THE GREATER SPREAD YOU'RE GOING TO SEE.

WE PURCHASED A 5 YEAR CORPORATE THAT HAD A PRETTY GOOD SPREAD BETWEEN THAT AND LET'S SAY EVEN A 2 YEAR.

I BELIEVE THE CORPORATE WAS 4.8. WHAT WAS IT? WELL, I THINK WE BOUGHT IT WITH LIKE A 53 OR 54 BASIS POINT SPREAD.

YEAH. IT WAS, IT WAS 0.553. YEAH. YEAH. SO THE DIFFERENCE BETWEEN THAT THE CORPORATE AND THE TREASURY WAS 50 BASIS POINTS. DO YOU EVER COMPARE THESE RETURNS WITH WHAT THE NEIGHBORING CITIES ARE GETTING AND WHAT WHERE THEY'RE INVESTING, LIKE TORRANCE OR LONG BEACH OR MANHATTAN BEACH? NO, EVERY CITY IS DIFFERENT. EVERY PORTFOLIO IS DIFFERENT.

THE CASH NEEDS FOR EVERY ORGANIZATION ARE DIFFERENT.

THEIR CASH FLOWS ARE DIFFERENT. SO IT WOULDN'T REALLY BE A GREAT LIKE FOR LIKE COMPARISON BECAUSE OF THE VAGARIES OF ALL OF THOSE THINGS THAT I JUST MENTIONED. IT'S WORTHWHILE DEFINITELY SPEAKING WITH OUR PEERS IN DIFFERENT COMMUNITIES TO SAY, THIS IS WHAT WE'RE SEEING. WHAT ARE YOU SEEING? LOOKING FOR ECONOMIC TRENDS, LOOKING FOR INVESTMENT IDEAS THAT ARE WITHIN GUIDELINE, WITHIN CODE.

IT'S CERTAINLY WORTHWHILE SHARING IDEAS WITH OUR COLLEAGUES, BUT WHEN IT COMES TO THE ACTUAL INVESTMENT ITSELF, EACH CITY IS ITS OWN UNICORN. THEY CAN'T BE THAT FAR OFF, BUT I THINK IT'S A GOOD IDEA TO COMPARE IT EVERY NOW AND THEN JUST TO SEE HOW WELL WE'RE DOING. I WOULD RESPECTFULLY DISAGREE WITH THAT.

AND MORE IMPORTANTLY, A GENTLEMAN NAMED BEN FINKELSTEIN, WHO I ADMIRE, WHO USED TO BE THE MANAGING DIRECTOR OF BEAR, WOULD SAY THAT YOU HE DESCRIBED THE COMPARISON BETWEEN CITIES AND THEIR INVESTMENTS.

THE IDEA THAT YOU WOULD COMPARE 1 CITY TO THE OTHER AS, AND I QUOTE BEN HERE NONSENSE.

THERE'S A PRACTICAL. SORRY, I'M TRYING TO WAIT FOR MY MIC TO.

COME ON. YEAH. THERE'S A PRACTICAL CONSIDERATION HERE THAT GETTING THE DATA TO ALIGN WITH WHAT YOU'RE DOING IS HARD TO DO, BECAUSE WE ALL DO EVERYTHING DIFFERENTLY BEHIND THE SCENES.

AND SO GETTING APPLES TO APPLES DATA WOULD BE VERY HARD.

AND YOU DON'T REALLY WANT TO COMPARE YIELDS BECAUSE YIELD IS A POINT IN TIME.

AND WE STARTED INVESTING DIFFERENTLY THAN THEY STARTED INVESTING.

SO IF YOU'RE GOING TO DO A COMPARISON, YOU REALLY HAVE TO DO IT ON A TOTAL RETURN BASIS BECAUSE THAT'S ACTUAL, ACTUAL PERFORMANCE AND GETTING TOTAL RETURN PERFORMANCE FOR A PUBLIC AGENCY THAT IS NOT YOUR AGENCY WOULD BE VERY DIFFICULT TO DO BECAUSE MOST OF US DON'T CALCULATE IT AT ALL, EVEN THOUGH IT EXISTS. BUT TO TO THAT POINT, WE'RE GETTING RETURNS SOMEWHERE IN THE IN THE 2 AND A HALF TO 3% RANGE, RIGHT? YES. THE YIELD ON THE PORTFOLIO AT THE END OF THE QUARTER, SORRY, THE EFFECTIVE RETURN THAT'S SHOWN IN THE REPORT WAS 305.

SO I'M LOOKING FOR THE YIELD. THE YIELD WAS 341.

SO YEAH ABOUT THREE AND A HALF. SO WITH WITHIN YOUR COHORTS I'M DO YOU KNOW OF CITIES THAT THAT THAT CAN GO FOR HIGHER YIELD. I'M TRYING TO GET SOME IDEA OF FOLLOWING ON THE PREVIOUS QUESTION OF THE DIFFERENCE BETWEEN.

I WOULD SAY OURS IS A IS A RELATIVELY RISK AVERSE PORTFOLIO WITH LIQUIDITY AS THE KEY CONCERN.

WHAT IS THE BOGEY? IF IF WE SAID TO HECK WITH THAT, WE CAN, WE CAN GO LONGER THAN 5 YEARS AND WE CAN TAKE SOME RISK.

[00:40:07]

I'M NOT I'M NOT SUGGESTING THAT WE CHANGE. IT'S JUST IT WOULD BE INTERESTING TO KNOW IF THE DATA IS AVAILABLE, WHAT THE RETURN IS FOR SOMEONE THAT LIKE ORANGE COUNTY YEARS AGO.

THAT'S NOT A NOT A MODEL WE WOULD ASPIRE TO. BUT ARE WE GIVING? ARE WE FOR SAFETY CONCERN, SAFETY AND LIQUIDITY? ARE WE GIVING UP A HALF PERCENT OR IS IT 2 OR 3%? THAT WOULD BE. AGAIN, I'M. IT'S KIND OF USELESS INFORMATION BECAUSE WE'RE NOT GOING TO CHANGE THE PORTFOLIO.

NO ONE'S NO ONE'S SUGGESTING THAT. BUT IT WOULD BE INTERESTING TO KNOW WHAT WHAT THE LIQUIDITY AND SAFETY IS COSTING US IN THE WAY OF OF RETURN.

I'D LIKE TO MAKE 2 COMMENTS AND I'LL HAND IT BACK OVER TO SARAH FOR THAT.

1 IS WE HAVE A LOT OF STALE SECURITIES IN OUR PORTFOLIO STILL WHERE WE'RE SEEING COUPONS BELOW ONE AND A HALF OR EVEN BELOW 1.

AND UNTIL THOSE AGE OFF, WE'RE GOING TO SEE SOME OF OUR YIELD WEAKENED.

YEAH. THE 2ND PART OF THAT, I WOULD SAY, IS THAT WHEN YOU LOOK AT A CITY THAT HAS A CASH FLOW SURPLUS AND THERE'S NO SURPLUS BUT A CASH, A BETTER CASH FLOW CONCERN THAN US, OR LACK THEREOF, THEY CAN GO OUT LONGER ON THE CURVE WITH MORE MONEY, AND THAT'S GOING TO GENERATE A BETTER YIELD.

YEAH. WE HAVEN'T BEEN IN THAT POSITION. SO IF YOU WANT TO USE AND WISH JASMINE WAS HERE WITH US TORRANCE AS AN EXAMPLE, PRIOR TO A SALES TAX INCREASE, TORRANCE'S PORTFOLIO, THEY HAD TO STAY SHORTER OR THEY NEEDED MORE CASH FLOW NEEDS.

THEY PASSED A TAX SALES TAX INCREASE. THAT HAS BEEN A SIGNIFICANT BOON TO THEM, AND HAS FREED UP A LOT MORE CAPITAL FOR THE TREASURER'S OFFICE TO ENSURE, EXCUSE ME, NOT ENSURE INVEST.

AND BY BEING ABLE TO INVEST MORE SIGNIFICANTLY LONGER TERM ABLE TO HELP THAT YIELD CURVE.

AND SO I THINK THAT'S HAMPERED US IF THAT'S THE RIGHT WAY OF CATEGORIZING IT IN THE SCENARIO THAT WE'RE DESCRIBING.

CITY FROM CITY AND HOW THAT CASH FLOW AND HOW THE COMPOSITION OF THE PORTFOLIO MAY AFFECT THE NUMBERS THAT WE'RE TALKING ABOUT.

YEAH. AND SO AS WE'RE LOOKING TO REINVEST SOME OF THESE UPCOMING MATURITIES, WE'RE LOOKING IN THAT 2 TO 3, 3 TO 4 AND 4 TO 5 YEAR RANGE TO SORT OF FILL IN A LITTLE BIT OF THAT LADDER.

WHAT HAPPENED TO MY LAST PAGE? THERE WE GO. SO THE LAST PAGE HERE IS THE FISCAL IMPACT.

THE INTEREST EARNED FOR THE FISCAL YEAR 2526 WAS $2,381,298.

THE APPROXIMATE CALCULATION FOR THE INTEREST THAT WOULD BE ASSOCIATED WITH THE GENERAL FUND WAS 1.4 MILLION. WE WERE JUST A LITTLE BIT SHY OF THE BUDGETED INTEREST EARNINGS FOR THIS YEAR, WHICH WAS SUPPOSED TO BE 1.5.

AND I THINK THAT'S EVERYTHING I HAD FOR THE PRESENTATION.

CHAIR WOODHAM, YOU HAD ASKED A QUESTION AT THE LAST MEETING ABOUT CAMP VERSUS LAIF SO I CAN ADDRESS THAT NOW IF YOU'D LIKE.

MOST OF THE DATA THAT I PROVIDE OR THE WRITE UP IS IN THE ADMIN REPORT, BUT I'M GOING TO FOCUS ON THE BLUE FOLDER ITEM, WHICH DIDN'T MAKE IT INTO MY REPORT, UNFORTUNATELY.

I THINK RICK PHILLIPS MAY HAVE ADDRESSED SOME OF THIS ON THE PHONE LAST TIME, BUT THE BIGGEST DIFFERENCE BETWEEN LAIF, LOCAL AGENCY INVESTMENT FUND AND CAMP TO ME IS THEIR UNDERLYING STRATEGY.

THAT IS THE BIGGEST DIFFERENCE IN THE RESULTS THAT YOU GET AS AN INVESTOR.

FOLKS MAY OR MAY NOT KNOW THIS. I ACTUALLY WAS THE PROGRAM ADMINISTRATOR FOR THE CALIFORNIA ASSET MANAGEMENT PROGRAM FOR 6 YEARS WHEN I WAS WORKING AT PFM.

FROM 2017 TO 2023, I RAN CAMP. SO LAIF IS RUN BY THE STATE TREASURER'S OFFICE.

THEY, THEY HAVE THEIR OWN CODE. IT'S LIKE A 16,000 SOMETHING.

[00:45:01]

AND THEY ACTUALLY DO NOT FOLLOW 53 601. THEY FOLLOW AN ENTIRELY DIFFERENT SECTION OF CODE.

THAT SECTION OF CODE IS ALSO WHAT ALLOWS CITIES AND OTHER PUBLIC AGENCIES TO INVEST IN LAIF.

LAIF TENDS TO RUN AROUND 260 TO 280 DAYS OF AN AVERAGE MATURITY.

AND FUNDS LIKE CAMP, THEY'RE BOTH LGIPS BUT THEY LOOK AND FEEL VERY DIFFERENT FUNDS LIKE CAMP, WHICH IS RUN BY A JOINT POWERS AUTHORITY. FOLLOW MOST OFTEN GASBY 79.

AND SO THAT PROVIDES A LOT OF RULES AROUND AVERAGE MATURITY, AVERAGE LIFE.

THE AVERAGE MATURITY FOR CAMP MUST BE UNDER 60 DAYS.

THE AVERAGE LIFE MUST BE UNDER 90 DAYS. THESE ARE ALSO RULES THEY FOLLOW TO GET THE TRIPLE A RATING FROM S&P.

SO CAMP IS REPORTING TO S&P WEEKLY ON THEIR UNDERLYING SHARE PRICE, THE UNDERLYING HOLDINGS, THE RISK IN THE PORTFOLIO TO MAINTAIN THAT TRIPLE A RATING, CAMP TENDS TO HAVE WHEN AT THE END OF LAST YEAR THEIR AVERAGE MATURITY WAS AROUND 40 TO 50 DAYS. BECAUSE THEY ALL KNEW THE FED WAS GOING TO BE CUTTING.

SO THEY WERE LOCKING IN AS MUCH AS THAT YIELD AS THEY COULD.

AND THEN YOU CAN SEE HERE, THEIR UNDERLYING HOLDINGS ARE VERY DIFFERENT.

LAIF TENDS TO FOCUS MORE ON GOVERNMENT SECURITIES.

THEY BUY A LOT OF TREASURIES AND A LOT OF AGENCIES.

THERE WILL BE SORT OF A SMATTERING OF CREDIT IN THIS PORTFOLIO.

THE OTHER THING THAT HAPPENS IN THE LAIF PORTFOLIO, WHICH IS A LITTLE BIT HARD TO UNDERSTAND, IS THAT THEY LOAN MONEY OUT. THEY LOAN MONEY OUT TO OTHER PUBLIC AGENCIES.

I DON'T THINK THOSE LOANS ARE TRANSPARENT TO US AS INVESTORS IN LAIF, BUT THEY'RE A VERY SMALL PORTION OF THE PORTFOLIO.

BUT THAT'S SORT OF A LEGACY THING THAT'S ALWAYS BEEN GOING ON FOR CAMP.

CAMP FOLLOWS 53 601, JUST LIKE THE CITY DOES.

BUT EVERY INVESTMENT IN THE CAMP LIQUIDITY PORTFOLIO HAS TO BE UNDER 397 DAYS, AND THEN THOSE AVERAGES ARE UNDER 60 OR UNDER 90.

AND YOU CAN SEE HERE IT'S CONSIDERED A PRIME PORTFOLIO.

IT'S GOING TO LOOK LIKE A PRIME MONEY MARKET FUND OR ANOTHER PRIME LGIP THAT FOLLOWS GASB 79.

SO YOU KNOW, THEY'RE GOING TO MAX OUT THEIR INVESTMENTS IN NEGOTIABLE CDS AND COMMERCIAL PAPER.

THE REPO IN THIS IS ALL BACKED BY GOVERNMENT SECURITIES.

SO A LOT OF THE CAMP ALLOCATION TO GOVERNMENT SECURITIES IS ACTUALLY THE COLLATERAL OF THE REPURCHASE AGREEMENTS THAT THEY USE.

SO THOSE ARE THE MAJOR DIFFERENCES BETWEEN CAMP AND LAIF.

ARE THERE ANY QUESTIONS ABOUT THAT? THAT'S A THAT'S A GOOD CHART.

I'M GLAD YOU INCLUDED THAT. I WOULD SUGGEST WE IF WE HAVE ANYWHERE CLOSE TO THE 40 MILLION OR SO THAT WE HAVE IN LAIF NOW THAT THIS IS SOMETHING WE NEED TO SEE IN EACH, EACH THANK YOU. THANK YOU COMMISSIONERS. THAT'S ALL THAT WE HAVE FOR YOU TONIGHT.

IF THERE ARE NO FURTHER QUESTIONS, ANY FURTHER QUESTIONS? IF NOT, DO I HAVE A MOTION TO RECEIVE AND FILE THE TREASURER'S REPORT.

ASK FOR ECOMMENTS OR ANYONE ONLINE. OH, YES. THANK YOU.

THERE ARE NO ECOMMENTS AND THERE'S NO ONE ON ZOOM.

OKAY. MOTION TO RECEIVE AND FILE. ALL IN FAVOR? AYE. OKAY. YEAH. THE NEXT ITEM.

WITH. J.2 CONSIDERATION OF SALARY ADJUSTMENTS FOR MAYOR AND CITY COUNCIL.

I THINK WE'RE WE'RE RESTRICTING THIS TO THE CLERK, CITY CLERK AND CITY TREASURER.

DOES STEPHANIE WANT TO SAY ANY COMMENTS ON THIS TO INTRODUCE THE TOPIC OR.

OH GO AHEAD. JACOB, CAN YOU HEAR ME? YES, WE CAN HEAR YOU.

STEPHANIE. OKAY. GOOD EVENING. COMMISSION. MEMBERS.

APOLOGIES FOR MY ABSENCE THIS EVENING. I DID PREPARE PREPARE A VERY SHORT SLIDE PRESENTATION THAT JUST HIGHLIGHTS THE KEY POINTS OF THE ADMINISTRATIVE REPORT THAT YOU RECEIVED IN YOUR PACKET.

I'M HAPPY TO WALK THROUGH THOSE QUICKLY AND THEN JUST START THE DISCUSSION IF THAT WORKS FOR THE GROUP.

THAT'S GREAT. OKAY. OKAY. ALL RIGHT. SO WE'LL GO AHEAD AND GET STARTED.

I'M GOING TO JACOB, I THINK YOU CAN JUST START OUT ON THE FIRST SLIDE.

SO AS CHAIR WOODHAM MENTIONED, WE ARE DISCUSSING POTENTIAL SALARY ADJUSTMENTS FOR BOTH

[00:50:05]

YOU MAKE A RECOMMENDATION TO THE CITY COUNCIL, AND THE COUNCIL EVENTUALLY WILL CONSIDER AND VOTE ON THIS.

THE TIMING IS TO TAKE PLACE BEFORE THE FILING PERIOD FOR A REGULAR ELECTION.

AS YOU MAY BE AWARE, WE'LL HAVE AN ELECTION IN MARCH OF 2027 THAT WILL INCLUDE THE CITY CLERK, CITY TREASURER AND 2 OF OUR COUNCIL DISTRICT SEATS.

THIS IS IN MARCH. HOWEVER, OUR FILING PERIOD FOR THE SELECTION OPENS IN NOVEMBER.

SO BUDGETING, FINANCE COMMISSION IS A 1ST STEP.

WE TRY TO GET THIS DONE IN AUGUST. COUNCIL WILL LOOK AT THIS IN SEPTEMBER.

BECAUSE IT NEEDS TO COME BEFORE THEM THEY VOTE AND THEN IT'S, IT'LL BE AN ORDINANCE CHANGE.

SO THAT'S FOR 2ND READING, 30 DAYS TO BECOME EFFECTIVE.

SO ALL OF THIS JUST BACKS INTO THE TIMING BEFORE THE ELECTION.

AND IF YOU'LL OR, AND JUST A NOTE ON THE LAST CHANGES COUNCIL ASKED DIRECTED CHANGES IN 2022 WHERE THEY INCREASED SALARIES FOR MAYOR AND COUNCIL AND THE CITY CLERK, AND THERE WAS NO CHANGE TO THE CITY TREASURER'S SALARY.

YOU CAN MOVE FORWARD. JACOB AND STEPHANIE, A QUESTION ON THIS, THIS SLIDE CITY COUNCIL SEATS IN DISTRICT 3 AND DISTRICT 5.

THESE THAT'S NECESSARY BECAUSE 2 OR 3 YEARS AGO WHEN WE MADE THESE, THE INITIAL CHANGES, THOSE DISTRICTS COULD NOT COULD NOT BE AFFECTED BY THAT CHANGE. EXACTLY.

SO THE RULES ARE THAT YOU NEED TO SET ANY CHANGE TO THE SALARIES BEFORE THE, BEFORE THAT ELECTION CYCLE, AND THEN YOU CANNOT CONSIDER ANY CHANGES TO THAT.

DURING THAT 4 YEAR PERIOD. SO DO WE ARE WE IS IT NECESSARY THAT WE APPROVE FOR DISTRICT 3 AND DISTRICT 5 CITY COUNCIL SEATS THAT THEY BECOME THE SAME SALARY COMPENSATION AS THE OTHER DISTRICTS? YOU KNOW WHAT? THAT IS A GREAT QUESTION THAT I I'M ACTUALLY NOT SURE OF.

MAYBE WHILE THE COMMISSION'S DISCUSSING, I'LL DO SOME QUICK RESEARCH ON IT.

I AND ACTUALLY THE CITY TREASURER MAY KNOW. I BELIEVE EVERYONE IS AT THE SAME LEVEL AT THIS POINT.

AND THESE WOULD BE A LEADING THIS WOULD BE A LEADING CHANGE.

BUT I'LL CONFIRM THAT FOR YOU. OKAY. AND YEAH, THE CITY TREASURER IS AWARE HE CAN SPEAK TO THAT.

MY UNDERSTANDING IS THAT CURRENTLY ALL OF THE SEATS ON THE COUNCIL HAVE THE SAME COMPENSATION CURRENTLY.

THAT'S WHAT THE ORDINANCE SAYS. YEAH. OKAY, THEN.

OKAY. IF THEY ALL HAVE THE SAME COMPENSATION NOW, THEN.

WE WOULD NOT NEED TO DO ANYTHING ABOUT DISTRICT 3AND DISTRICT 5.

RIGHT. YOU COULD MAKE THE RECOMMENDATION. I BEG YOUR PARDON? STEPHANIE, DO YOU WANT TO ANSWER THAT? SURE. WE'LL PROBABLY SAY THE SAME THING.

I WAS JUST GOING TO SAY. I MEAN, YOU COULD MAKE THE RECOMMENDATION.

SO LET'S SAY THE COMMISSION FEELS THAT WE SHOULD INCREASE THE SALARIES FOR ALL MAYOR AND COUNCIL.

THIS WOULD BE THE 1ST OPPORTUNITY TO DO THAT FOR THESE SEATS THAT ARE COMING UP.

SO YOU COULD RECOMMEND, FOR EXAMPLE, THAT IN THE NEXT ROUND OF ELECTIONS THEY GET A 2% INCREASE.

AND THAT WOULD APPLY NOW TO THESE 2 SEATS AND OTHER SEATS IN THE FUTURE.

IS THAT CORRECT? TREASURER SOLOMON. YES, THE REASON THESE ARE COMING UP NOW IS THAT IT WOULD BE FOR THE INCOMING NOMINEES AND THOSE SEEKING OFFICE TO KNOW WHAT THE SALARY WOULD BE.

GOT IT. OKAY. OKAY. STEPHANIE, BACK TO YOU. OKAY, GREAT.

LET'S SEE. SO MOVING ON TO THE NEXT SLIDE. I JUST WANTED TO HIGHLIGHT HERE A COUPLE THINGS ABOUT EACH OF THE OFFICES UNDER CONSIDERATION.

AS WE DID IN THE LAST REPORT HR DOES A SALARY SURVEY TO KIND OF SHOW THE COMPARATIVE SALARIES FOR SIMILAR POSITIONS. IN OUR NEIGHBORING CITIES.

THESE SHOW THE SALARIES FOR CITY CLERKS. I JUST INCLUDED A COUPLE BULLET POINTS HERE.

1 I WANTED TO NOTE THERE'S A TYPO IN THE REPORT.

[00:55:02]

OUR CITY CLERK ALSO WANTED TO NOTE THAT REDONDO BEACH STANDS APART A BIT IN MORE CONSISTENTLY OPERATING OUR OWN ELECTIONS THAT ARE FULL STANDALONE ELECTIONS, INCLUDING WITH RANKED CHOICE VOTING, WHICH I BELIEVE WE ARE EITHER THE ONLY OR ONE OF 2 AGENCIES IN CALIFORNIA TO, TO IMPLEMENT. AS I NOTED, THE SALARIES LAST REVISED IN 2022 AND OUR CURRENT CURRENT SALARY, WHICH IS SHOWN THEIR MONTHLY SALARY IS BELOW THE MEDIAN.

IF YOU GO TO THE NEXT SLIDE JACOB. I ALSO JUST HAD A, JACOB ACTUALLY, AND OUR OTHER TEAM MEMBER PULLED THIS TOGETHER TO GIVE SOME IDEA OF REDONDO BEACH IN COMPARISON TO THE OTHER CITIES.

WE JUST PUT A TABLE HERE TOGETHER SHOWING THE POPULATION THE GENERAL FUND REVENUE BUDGET JUST KIND OF A MEASURE OF THE SIZE AND PERHAPS COMPLEXITY OF THE CITIES THAT WE'RE LOOKING AT.

I JUST WANTED TO MAKE A QUICK COMMENT ABOUT THE THE DATA USED ON, ON YOUR MEDIAN FOR CITY CLERKS SALARIES.

I QUESTIONED WHETHER THE PART TIME, WHEN YOU'RE DEALING WITH A MEDIAN, WHETHER THE PART TIME SALARIES SHOULD BE EXCLUDED COMPLETELY FROM CONSIDERATION WHICH IS WHAT I DID A LITTLE CALCULATION.

AND IF YOU DISCOUNT ALL OF THE PART TIME SALARIES, YOUR MEDIAN SALARY THEN BECOMES $16,310, UP FROM 13, WHICH IS, WHICH IS SUBSTANTIAL.

BUT I GUESS IF YOU'RE IF YOU'RE WONDERING ABOUT THE VALIDITY OF A MEDIAN WITH DATA THAT'S NOT COMPATIBLE, YOU MAY WANT TO TAKE A LOOK AT IT FROM THAT PERSPECTIVE.

THANK YOU. NO, THAT'S THAT'S A GOOD POINT. AND WHAT WAS YOUR FIGURE AGAIN? IT'S THE MEDIAN BECOMES THE $16,310. SO THERE WHAT IF WE ELIMINATE THE PART TIME SALARIES.

YOU'VE GOT LESS. SO WHEN YOU'RE ELIMINATING THE HIGH AND THE LOW AND YOU CONTINUE TO WORK TOWARDS THE MEDIAN.

THE NEW MEDIAN BECOMES THE $16,310, UP FROM THE $13,607, WHICH INCLUDES ALL OF THE SALARIES.

SO IN ESSENCE, THAT PUTS US EVEN LOWER THAN THE.

IF YOU'RE LOOKING AT FULL TIME. YES. IT MAKES IT MAKES IT IT MAKES IT SUBSTANTIALLY LOWER THAN THE MEDIAN.

BUT THEN AGAIN, YOU HAVE TO LOOK AT. IT'S NICE TO HAVE THE SIDE BY SIDE OF POPULATION AND REVENUE IN TERMS OF THE COMPLEXITY OF WHAT YOU'RE MANAGING.

ABSOLUTELY. CERTAIN CERTAIN ELEMENTS SHOULD ALSO BE CONSIDERED.

BUT I JUST WAS RELATING TO SHOULD WE MOVE ON TO THE CITY TREASURER, I GUESS, OR.

OR. OH, YEAH. OTHER QUESTIONS OR A QUESTION, I GUESS.

ARE YOU GUYS MAKING RECOMMENDATIONS TO AS WE'RE LOOKING THROUGH THESE SALARIES, ARE YOU MAKING RECOMMENDATIONS TO THE CITY COUNCIL OR THEY'RE GOING TO HAVE THEIR OWN DISCUSSIONS OR HOW LIKE, I GUESS, HOW CAN WE HELP? OR ARE WE JUST LOOKING AT THIS TO JUST HAVE AN EYEBALL ON IT? SO THE COMMISSION WILL MAKE A RECOMMENDATION TO THE CITY COUNCIL AS TO HOW THEY SHOULD ACT ON THE SALARIES.

SO, AND I THINK THAT CAN BE AS DETAILED AS YOU WOULD LIKE TO MAKE IT.

YOU COULD SAY CITY COUNCIL SHOULD CONSIDER INCREASING.

CITY COUNCIL SHOULD INCREASE BY 1%. CITY COUNCIL SHOULD NOT INCREASE.

CITY COUNCIL SHOULD SET IT EQUAL TO EL SEGUNDO.

SO I THINK YOUR RECOMMENDATION CAN BE AS DETAILED OR AS NOT DETAILED AS YOU WOULD LIKE.

STAFF IN THIS CASE DOES NOT HAVE A RECOMMENDATION FOR YOU.

OUR ROLE HERE IS TO PRESENT THE INFORMATION AND THEN YOU'LL RECOMMEND MAKE THAT YOUR RECOMMENDATION TO COUNCIL.

THEY WILL HAVE THEIR OWN DISCUSSION AND VOTE ON IT.

AND CITY TREASURER MAY WANT TO ADD TO THAT AS WELL.

I THINK THAT'S AN ACCURATE REPRESENTATION OF WHAT THE TASK OF THE COMMISSION IS FOR TONIGHT.

ALL RIGHT. MOVING ON TO THE CITY TREASURER. SO OUR CITY TREASURER SALARY WAS LAST REVISED IN 2014. QUITE A WHILE AGO NOW. THIS UPDATED UPDATE COINCIDED WITH A CHANGE TO THE CITY TREASURER'S CHARTER RESPONSIBILITIES THAT CHANGED THE ROLE FROM FULL TIME TO PART TIME.

SO THAT SIGNIFICANTLY DECREASED THE SALARY AT THAT POINT.

WE DO HAVE A SALARY COMPARISON HERE, BUT AS THE REPORT NOTES, AND AS YOU CAN SEE IN THIS TABLE

[01:00:07]

IF YOU GO TO THE NEXT SLIDE, WE PUT THE SAME INFORMATION TOGETHER.

THIS IS EVEN MORE, I THINK RELEVANT THE GENERAL FUND REVENUE NUMBERS HERE AND LOOKING AT KIND OF WHAT THE CITY TREASURER IS OVERSEEING.

TREASURER SOLOMON, I THINK YOU MIGHT HAVE A LITTLE BIT MORE PERSPECTIVE TO ADD HERE IF YOU'D LIKE TO TOUCH ON THE ROLES, COMPARATIVE ROLES A LITTLE BIT, I THINK. THANK YOU.

FINANCE DIRECTOR, THE ROLES THAT YOU'LL SEE FOR, LET'S SAY OUR NEIGHBORING CITIES ARE SIGNIFICANTLY MORE LIMITED, SAY, THAN WHAT OUR ACTIVITIES IN OUR OFFICE ARE.

SO FOR HER, HERMOSA BEACH AND MANHATTAN BEACH, PART TIME CITY TREASURER ACTS CHIEFLY AS AN OVERSIGHT ROLE FOR THE PORTFOLIO.

THEY HAVE A FINANCE COMMITTEE THAT WORKS WITH THEM IN ORDER TO DO THAT.

I'M UNFAMILIAR WITH HAWTHORNE, SO I CAN'T SPEAK TO THAT.

IN TORRANCE. YOU HAVE A 2 PERSON DEPARTMENT SIMILAR TO WHAT WE HAVE HERE THE CITY TREASURER, A PART TIME PERSON AND A FULL TIME CHIEF DEPUTY TREASURER.

THAT PERSON THERE IN IN TORRANCE, THEY OVERSEE THE PORTFOLIO.

THEY ALSO HAVE A FINANCE COMMITTEE, BUT I THINK PRINCIPALLY THE TREASURER AND THE DEPUTY TREASURER OVERSEE THE PORTFOLIO AND TORRANCE.

FOR US OTHER THINGS THAT THE CITY TREASURER'S OFFICE PERFORMS FOR THE CITY.

TO GIVE YOU AN IDEA OF PERHAPS WHAT WE DO, I THINK, WHICH WOULD BE IMPORTANT.

WE WORK WITHIN OUR WE CREATE OUR OWN BUDGET AND WE WORK IN COORDINATION WITH THE FINANCE DEPARTMENT FOR THE BUDGET, WITH THE CITY. PROVIDING OR WORKING TOWARDS REVENUE PROJECTIONS AND OTHER MATERIAL INFORMATION THAT MIGHT HELP US FORMULATE OUR TOTAL PROJECTIONS OR BUDGET FOR THE NEXT YEAR. WE HAVE THE 1 PERSON, FULL TIME EMPLOYEE THAT IS MANAGED.

WE ARE WORKING WITH MEEDER TO MANAGE OUR INVESTMENTS GOING FORWARD.

WHEN WE HAVE MEASURE FP FUNDS THAT COME IN, WE'LL BE DOING INTERNAL MANAGEMENT OF THOSE FUNDS.

SO FOR AT LEAST THE NEXT 3 TO 4 YEARS, THE TREASURER'S OFFICE, WHOEVER IS SITTING IN THAT CHAIR STARTING IN 2027 FOR THE NEXT 4 YEAR TERM, WILL BE OVERSEEING AN ADDITIONAL $90 MILLION PORTFOLIO.

THE TREASURER'S OFFICE IS TASKED, ACCORDING TO CHARTER, WITH REVENUE AUDITS FOR OUR LEASES AND FOR OUR TOT AND FOR OUR UT AND OTHER REVENUE SOURCES WITHIN THE CITY THAT I DON'T KNOW IF.

I CERTAINLY DON'T SEE THAT IN HERMOSA, MANHATTAN.

I DON'T KNOW WHAT THE OTHER CITIES DO THERE. YOU HAVE A UT CONSULTANT THAT'S MANAGED THROUGH THE TREASURER'S OFFICE THAT HELPS US DO PROJECTIONS AND AUDITS ON AN ANNUAL BASIS AND ONGOING BASIS. OUR MONTHLY REPORTING TO YOU AS WE SEND OUT OUR INVESTMENT REPORTS AND OUR QUARTERLY REPORTING TO YOURSELVES AND TO THE CITY COUNCIL. WE HAVE OUR INVESTMENT POLICY THAT'S REVIEWED EVERY YEAR.

SUGGESTIONS THAT IS PRESENTED, CREATED IN OUR OFFICE, PRESENTED TO YOU AND PRESENTED TO THE CITY COUNCIL.

WE COORDINATE WITH OUR REVENUE COLLECTION WITH OUR FINANCE DEPARTMENT TO TRY AND DETERMINE CASH FLOWS, WHICH IS WE'VE TALKED ABOUT TONIGHT, SO CRITICAL TO HOW WE MANAGE OUR INVESTMENTS.

SO IT'S AN ONGOING COMMUNICATION WITH OUR INTERNAL OFFICES.

EACH DEPARTMENT REPORTS ON THEIR REVENUES AND THEIR EXPENDITURES.

WE WORK WITH FINANCE AND HAVE DISCUSSIONS. WE'VE GOT X NUMBER OF DOLLARS COMING UP.

WE'RE SEEING THIS THIS FALLING OFF. WE'RE SEEING THIS INCREASING.

SO THERE'S THAT CATEGORY THAT WE WORK WITH IN CASH FLOW, AND WE ARE HELPING OUT WITH THE BOND ISSUANCE.

IT'S NOT SOMETHING THAT WE DO ALL THE TIME. WE ISSUED A BOND, A LEASE REVENUE BOND IN 2021.

THIS WILL BE OUR FIRST GEO BOND THAT WE'RE ISSUING, BUT WE ARE COORDINATING WITH THE CITY AND REPRESENTING THE TREASURER'S OFFICE FOR ALL OF THOSE MEETINGS AND ALL OF THAT LOT, ALL OF THOSE LOGISTICS.

SO IT GIVES YOU AN IDEA JUST MOST OF CERTAINLY NOT A COMPREHENSIVE LIST OF WHAT THE CITY TREASURER'S OFFICE IS DOING HERE IN REDONDO BEACH, AS OPPOSED TO AT LEAST, SAY, 2 OF OUR NEIGHBORING CITIES IN HERMOSA AND MANHATTAN BEACH.

JUST A QUICK 1. WITH THE MANAGEMENT, YOUR MANAGEMENT ROLE WITH RESPECT TO THE THE THE BOND ISSUE.

WHERE DO YOU SEE THAT IN TERMS OF THE INCREASED TIME THAT IT MIGHT BE TAKING YOU TO ACCOMPLISH THOSE THAT ROLE? WELL, IT CERTAINLY WILL HELP HAVING THE FULL TIME DEPUTY WORKING ON IT.

[01:05:04]

YOU HAVE TO MANAGE THE CASH FLOW WITH THE DRAW SCHEDULE THAT THE CONSTRUCTION IS GOING TO HAVE.

YOU WANT TO MAKE SURE THAT YOU LADDER IT OUT APPROPRIATELY.

YOU WANT TO MAKE SURE THAT YOU'RE CONFORMING TO GUIDELINES FOR THE INVESTMENT OF THAT MONEY.

THERE'S GOING TO BE COORDINATION WITH THE FINANCE DEPARTMENT AND EXTERNAL PARTIES FOR THE REPORTING OF THAT ON AN ANNUAL BASIS, LET'S SAY THE CDIAC. SO WHILE I DON'T HAVE A EXACT NUMBER FOR YOU AND THE NUMBER OF HOURS, IT DEFINITELY WILL LEAD TO MORE TIME ON THE PART OF THE PERSON SITTING IN THAT CHAIR.

THANK YOU. YES, I WAS THAT'S WHAT I WAS [INAUDIBLE] INTERESTED IN.

OKAY, SO I THINK I THINK I JUST HAVE 1 MORE SLIDE ON HERE.

IF THERE ARE NO OTHER QUESTIONS ON THE CITY TREASURER'S OFFICE, 1 MORE OR YES.

OH, AND THIS IS JUST TO TOUCH ON AGAIN ON THE ELECTED OFFICIALS.

WE DIDN'T INCLUDE A COMPARATIVE SALARY HERE BECAUSE THESE WERE JUST INCREASED LAST REVISED IN 2022.

AND CURRENTLY THEIR SALARY IS ABOUT $20,000 A YEAR.

I'LL NOTE FOR THE ELECTED OFFICIALS AND MAYOR AND COUNCIL THEY ALSO RECEIVE THE SAME BENEFITS AS THE CITY'S EXECUTIVE TEAM WHICH ARE THE HEADS OF DEPARTMENT AND CITY MANAGER OR.

YEAH. AND THEN LAST. QUESTION, THERE ARE 2 ON THE COMPENSATION, HOW DOES THE DEFERRED COMPENSATION ACTUALLY APPLY TO THAT IS THAT IN ADDITION TO THE $20,000 A YEAR. YES. YES. OKAY. SO THAT THAT WOULD BE THE SALARY ONLY.

GOTCHA. AND DEFERRED COMP IS 12 FOR 12. SO IN EVALUATING THESE SHOULDN'T SHOULD WE NOT ADD THAT DOLLAR AMOUNT TO THE THE 20 K SALARIES THAT WE'RE LOOKING AT.

I MEAN, I'M JUST LOOKING FOR A BASIS FOR KIND OF MAKING SOME KIND OF COMPARISON TO UNDERSTAND WHAT THAT.

YEAH, NO MAKES SENSE. I THINK THAT'S A GOOD POINT.

WE, WE SHOULD CONSIDER THAT DEFERRED COMP IS 12%.

DEFERRED COMP IS 12% IN THE ORDINANCE. PARDON? IN THE ORDINANCE, IT SAYS 12%. YEAH. AND THEN YOU HAVE BENEFITS.

AND SAME THING WITH THE TREASURER AS WELL AS A PART TIME YOU GET FOR THE CITY TREASURER'S OFFICE AND FOR THE CITY COUNCIL.

THEY'RE PART OF THE PROFESSIONAL, CONFIDENTIAL AND MANAGEMENT, EXCUSE ME, CONFIDENTIAL MANAGEMENT GROUP, AND ENJOY THE BENEFITS OF THAT GROUP FOR THE PENSION AND HEALTH.

OKAY THEN, JACOB, I THINK WE'RE FINALLY GETTING TO MY FINAL SLIDE.

WHICH IS. OH OH, SORRY. THERE'S GOING TO BE 1 MORE SLIDE.

SO HERE'S THE IMPACT OF A 1% COST INCREASE ANNUALLY.

AND THIS, I BELIEVE INCLUDES THE TOTAL IMPACT ACTUALLY, JACOB, CAN YOU JUST CLARIFY WHAT THIS 1% INCLUDES? IS THIS SALARY ONLY OR SALARY PLUS ANY FRINGE THAT WOULD INCREASE WITH SALARY.

YEAH. THIS IS THIS IS SALARY AND ALL FRINGE. AND THE 17 THE MAYOR AND COUNCIL MEMBER TOTAL I BELIEVE IS ALL 6 COMBINED, NOT 1733 EACH.

YES. THAT DOES MAKE SENSE. YEAH. AND THAT'S AN ANNUALIZED NUMBER ANNUALIZED.

AND THAT WOULD BE YES. AGGREGATE. YEAH. SO GENERALLY WE TRY TO PROVIDE THE IMPACT OF A 1%.

SO IT'S KIND OF A BASELINE IF YOU WANT TO THINK ABOUT YOU KNOW, INCREASES IN PERCENTAGE TERMS. AND I THINK THAT MAY BE THE LAST SLIDE OF INFORMATION FOR YOU.

AND AGAIN, YOUR YOUR WHAT WE'RE ASKING YOU TO DO TONIGHT IS DISCUSS AND MAKE A RECOMMENDATION TO COUNCIL.

I HAD DISCUSSED WITH THE CHAIR PRIOR TO THE MEETING THAT POTENTIALLY THE COMMISSION MAY WANT MORE THAN TONIGHT TO DISCUSS AND DECIDE THIS.

WE DO HAVE A SPECIAL MEETING SCHEDULED FOR 2 WEEKS FROM NOW TO LOOK AT THE AUDIT.

IF I CAN MAKE SURE THAT WE HAVE QUORUM THAT NIGHT.

I THINK WE'RE HAPPY TO MOVE THE VOTE ON THIS TO THE 27TH.

[01:10:02]

WHAT'S YOUR LEVEL OF CERTAINTY ON THE QUORUM 2 WEEKS FROM NOW.

SO I HAVE 3 CONFIRMED AND 1 LIKELY CONFIRMED.

SO I HAVEN'T HEARD COMMISSIONER MARIN I BELIEVE WE DIDN'T HEAR FROM.

YEAH, I DON'T THINK I RESPONDED, BUT I SHOULD BE THERE. YES. OKAY.

SO WITH COMMISSIONER MARIN, WE SHOULD BE GOOD TO GO FOR THE 27TH.

OKAY. MAY I MAKE A COMMENT? DIRECTOR MEYER. YES.

SO WHEN YOU'RE CONSIDERING WHAT YOU'D LIKE TO DO HERE.

ONE THING I KNOW FROM MY PREVIOUS TIME ON THE BUDGET AND FINANCE COMMISSION, AND I'M WATCHING THIS UNFOLD AT CITY COUNCIL IS IT DOESN'T HAVE TO BE, SAY, 1% FOR ALL 4 YEARS. YOU MIGHT BE ABLE TO DO 1% FOR EACH YEAR.

YOU MIGHT BE ABLE TO DO 2% FOR EACH YEAR. YOU MIGHT BE ABLE TO STAGGER IT.

IT MIGHT BE 1 IN THE FIRST 2 YEARS AND THEN NOT FOR THE 3RD AND 4TH YEAR.

YOU DO HAVE THAT LATITUDE IN MAKING THAT RECOMMENDATION.

IT DOESN'T HAVE TO BE A 1% OVERALL. IT CAN BE BROKEN DOWN BY YEAR.

BUT WE ARE NOT ABLE TO HAVE IT APPLY TO AN INDEX LIKE THE CPI.

AND SO IT NEEDS TO BE A TANGIBLE PHYSICAL, TANGIBLE NUMBER THAT'S CALCULABLE AT THIS POINT.

CORRECT. BUT I BELIEVE YOU CAN APPLY CPI. OKAY.

BEG YOUR PARDON. I STAND CORRECTED. YEAH. DID I INTERRUPT ANOTHER SPEAKER? YEAH. NO, NO. SO I'M MY UNDERSTANDING IS THEN THERE COULD BE AN INDEX THAT WE SAY IT COULD BE EQUAL TO CPI, 90% OF CPI SOME OR SOME OTHER INDEX THEN WOULD BE ALSO ACCEPTABLE.

I THINK WE CAN CERTAINLY MAKE THAT RECOMMENDATION. YEAH. THAT WOULD GIVE US A LITTLE MORE FLEXIBILITY IN TERMS OF NOT BEING ABLE TO PREDICT WHAT THE FUTURE INFLATION LOOKS LIKE. YEAH. AND IT ALSO WOULD BE A VERY, I WOULD THINK, A FAIR WAY TO DO IT, BECAUSE IF THE INFLATION DOES INCREASE MORE OR LESS THEN IT, IT WOULD IT BE SELF-ADJUSTING.

YEAH. BUT ALSO THEN CAN, CAN HAMPER FUTURE BUDGETS IF INFLATION, YOU KNOW, ESCALATES AGGRESSIVELY. OKAY. WHAT ARE YOUR THOUGHTS? ARE WE READY TO MAKE A DECISION TONIGHT? DO YOU WANT TO KICK SOME FIGURES AROUND AND THEN COME BACK IN 2 WEEKS AND MAKE THE FINAL DECISION.

WHAT? WHAT'S THE FEELING OF THE COMMISSIONERS? I'D LIKE MORE TIME TO TO LOOK AT IT MYSELF BEFORE I CAN MAKE A RECOMMENDATION.

OKAY. SAME. I DIDN'T HAVE ENOUGH TIME TO FORM AN OPINION.

THAT'S MATERIAL. IT WOULD ALSO GIVE US A COUPLE MORE WEEKS TO SEE, TO LOOK AT THE PERFORMANCE OF THE TREASURER BEFORE WE REALLY MAKE ANY.

YEAH, EXACTLY. SEE HOW THOSE NEW INVESTMENTS GO.

VIJAY. WHAT DO YOU THINK? I LIKE THE IDEA OF CONNECTING IT WITH THE CPI. I THINK IT MIGHT BE A GOOD IDEA.

IT SHOULD BE ACROSS THE BOARD. YOU CANNOT PICK AND CHOOSE AND THEN STAGGER.

I DON'T THINK THAT MAKES ANY SENSE. YOU'RE NOT CHANGING IT.

I'M HARD PUT WITHOUT HAVING ANY TYPE OF PERFORMANCE.

YOU KNOW I'M USED TO A LITTLE BIT DIFFERENT KIND OF OF ADJUSTMENTS THAT HAVE TO TIE IN MORE WITH, SAY, THE PERFORMANCE OR AN INCREASE IN RESPONSIBILITY OR SOMETHING LIKE THAT.

AND NOT HAVING THAT, IT'S DIFFICULT FOR ME TO LOOK, BE LOOKING AT A POSITION AND SAY, BECAUSE IT'S A POSITION, WHAT SHOULD WE DO OTHER THAN MAYBE DOING AN INDEX ONE AND SAY, WHATEVER THEY'RE GETTING NOW, WE CAN ASSUME IT'S FAIR, WHATEVER THEY NEED TO GET BECAUSE OF CHANGES IN THE ECONOMIC CONDITIONS, THEN THEY'D BE ENTITLED TO THAT. NO. IN THIS DISCUSSION, ARE YOU THINKING OF JUST THE 2 POSITIONS, CLERK AND TREASURER OR CLERK, TREASURER AND CITY COUNCIL AND THE MAYOR? WE HAVE THE ABILITY TO DO ALL. YEAH, I'D SAY EACH PROBABLY LOOKING AT EACH ONE THAT WAY AND THEN IN A DIFFERENT WAY.

ALSO AN ALTERNATE WAY. NO, NO FIRM THOUGHT ABOUT THAT ONE WAY OR THE OTHER, ONLY TO BE PRESENTING THAT AS AN ALTERNATIVE.

OKAY, SO I'M SENSING A PREFERENCE FOR THE INDEX SOMEHOW RELATED TO CPI AND GIVING US 2 ADDITIONAL WEEKS TO, TO THINK ABOUT IT. YEAH.

AND, AND TO YOUR POINT, WHETHER IT SHOULD APPLY TO ALL THREE DIFFERENT GROUPS, OR IF YOU ONLY THINK 1 OR 2 OR THINGS OF THAT NATURE.

SO I THINK WE CAN HAVE A MORE MATERIAL DISCUSSION IN 2 WEEKS.

IF, IF THAT IS THE CONSENSUS, THEN I GUESS I WOULD ENTERTAIN A MOTION TO CONTINUE THIS TO

[01:15:05]

YEAH. PARDON ME. JUST ECOMMENTS. NO. ECOMMENTS AND NO ON ZOOM.

THANK YOU. I'M SORRY, DID YOU SAY THERE ARE NO.

NO COMMENTS? NO COMMENTS. OKAY. SO I GUESS MOTION TO RECEIVE AND FILE AND TO CARRY OVER TO OUR NEXT MEETING IN 2 WEEKS.

OKAY. HAVE A SECOND. SECOND. ALL IN FAVOR? AYE.

AYE. OKAY. WE WILL CARRY IT OVER UNTIL. AND I THINK THAT'S THE COMPLETES OUR AGENDA.

WE NOW MOVE TO RECOMMENDATIONS TO STAFF. CAN YOU COULD YOU MAKE A MOTION TO CONTINUE THE THE OTHER 2 ITEMS. THEY ARE STILL ON THIS AGENDA. J.3 AND J.4. YEAH.

YEAH. SO WE HAVE TO MAKE A MOTION. I GUESS MOTION TO CARRY OVER J.3 AND J.4 TO THE NEXT MEETING.

ALL IN FAVOR? AYE. OKAY. GOOD. SUGGESTIONS TO TO STAFF.

[K. COMMISSION REFERRALS TO STAFF]

AS YOU KNOW WE WE AND OTHER COMMISSIONS HAVE BEEN AFFECTED BY THE 2 MEETING RULE OR THE 3 MEETING RULE.

AND WE'VE LOST A COUPLE OF PEOPLE BECAUSE OF THAT.

I WOULD I, I'M GOING TO BRING THIS UP. I'M GOING TO AGENDIZE THIS FOR THE NEXT MEETING.

BUT I WOULD I WOULD BE IN FAVOR INSTEAD OF US HAVING MONTHLY MEETINGS TO GO TO A QUARTERLY MEETING SCHEDULE WITH THE ABILITY TO CALL SPECIAL MEETINGS IF NECESSARY. I'D RATHER HAVE A 3 HOUR MEETING 4 TIMES EACH YEAR THAN, THAN A 1 HOUR MEETING 12 TO 14. YEAH. JUST A, JUST A CONCERN THAT A LOT OF THE MEETINGS THAT WE HAVE ARE RELATIVE TO DECISIONS THAT THE CITY COUNCIL NEEDS TO MAKE AT SPECIFIC POINTS IN TIME IN THE YEAR.

YEAH. SO WE CAN WITH, WITH THAT'S A SCHEDULE THAT I THINK WE NEED TO BE SENSITIVE TO IN TERMS OF CHANGING OUR, OUR MEETING AGENDA. AND WE COULD, WE COULD CERTAINLY DO THAT. WE COULD LOOK AT, AT THE TIMING, THE BUDGET ISSUE AND OTHER ISSUES THAT REQUIRE SOMETHING FROM US SO WE COULD SCHEDULE A A FEWER NUMBER OF MEETINGS THAN, THAN 12. AND 1 CONSIDERATION MIGHT BE, THOUGH, AS AN EXAMPLE, IF WE NEEDED.

IF I MAY COMMISSIONER SHERBIN I BEG YOUR PARDON FOR THE INTERRUPTION.

I THINK THE WAY WE SHOULD GO ABOUT THIS IS TO GO AHEAD AND IF YOU'RE ALL IN AGREEMENT TO HAVE THIS CONVERSATION IT WOULD BE MORE APPROPRIATE TO HAVE IT AFTER IT'S AGENDIZED THAN TO DISCUSS IT NOW PLEASE. YEAH.

OKAY. I APOLOGIZE FOR THE INTERRUPTION. SO WE'LL WE'LL, I'LL AGENDIZE THAT IN THE SEPTEMBER MEETING.

WE'LL DISCUSS POSSIBILITIES OF WHAT WE CAN DO.

OKAY. PERFECT. YEAH. OKAY. GOOD. ANYTHING ELSE FOR STAFF? NOTHING FOR ME. OKAY. THEN I WOULD ENTERTAIN A MOTION TO ADJOURN.

MOTION TO ADJOURN. ALL IN FAVOR? AYE.

* This transcript was compiled from uncorrected Closed Captioning.