We'll begin with roll call, John Wendy. President and Jared Elmore. President, if everybody would please stand, I'd like to lead us in the United States of America and to the Republic for which it stands, one nation under God, indivisible with liberty and justice for all. Thank you, BCD. All right. Do we have any presentation from staff at this time? No presentation. Thank you. And have we received any public input? We have not received any input for this meeting. Thank you very much. On to regular business. First item is approval of the minutes from the August 22 meeting. Chair would entertain a motion to approve. Motion to approve. And all second and we'll call John Wendy. Proproof. And Chair, don't more approve. Motion carries 2-0. Second item, review of the August 2024 investment report. And I think we have Jenny with us. Is that correct? Yes, that's correct. And we also, I'm joined tonight by Carl Ming. So he's going to start off the presentation this evening with a brief economic update. So I'll go ahead and share my screen. Good evening evening everyone. Good evening. Welcome to you both. Thank you. Okay if you can I'll see that. Carl you could take it away. Thank you. Hopefully everyone can hear me. Thank you for that introduction Jenny. If anyone moving forward I'm more than happy to answer questions and help in any capacity be can consider me a conduit to Jenny moving forward with this group. So without further ado, I'll just give a quick economic synopsis for the last month. Of course, the biggest news of the month would be the Fed raising the interest rates. I'm sorry, lowering interest rates by 50 basis points. Wow, that would have been weird. But anyway, the Fed lowered interest rate by 50 basis points. Of course, the Fed has determined that the time has come to balance monetary policy between both price stability and full employment. So, the Fed generally made it very clear that the time to act to support the labor market is while it's still strong. So if we can go to the next slide, these are our slides. I'm sure you may by now be familiar, but non-farm payroll report you can see has been kind of on a downward channel. And the last couple reports have been surprised, surprised pretty significantly to the downside. We think the Fed is certainly paying attention to that. And before there is any meaningful deterioration in the labor market, up to this point, it has basically been normalizing. And the non-farm payroll is right about where it had been prior to COVID, but we do not want to see that dwindle or get any weaker. The unemployment rate ticked up to 4.2%, it actually ticked down. The unemployment rate ticked up to 4.2% and actually ticked down to 4.2 from being up to 4.3. And I think that the Fed has seen when we reached that 4% level, it gave all of the Fed Governor's pause and said, you know what, it might be time to start looking at the labor market, although it is strong, we need to support it. The last 26 months, monetary policy has been focused on price stability, and if we go to the next slide, we can see why. By both measures of the CPI and the PCI, the CPI on your left, peaked in June of 2022 at 9.1%, that was significantly higher than inflation we have had for the past decade. I mean, probably in the last 40 years, really. But when the Fed tightened monetary policy, it had the desired effects. And inflation quickly dwindled both on headline and core measures. If we look at PCE on the right that dashed line is core PC the core PC deflator and I bring that up because of course that is the feds preferred gauge for the 2% inflation target. They believe they've made sufficient progress and that is on his way down to 2% so it's time to focus on the labor market if we can move forward please. This is almost an antiquated slide at this point because of course the effective Fed Fund rate on the right is no longer above that 5% level. We are now in significantly lower in the 4.75 area and we'll probably see that as we move forward with these meetings go lower and lower toward the end of the year. The Fed has been reducing or allowing its balance sheet assets that's on the left here. And allowing those to roll off also in effect, drawing liquidity from the system. So what about these things mean if we go to the next slide. It means that by all measures of the yield curve, we can see the main takeaway here on the left that US Treasury know yields have met firm resistance at about 5%. And that's the level that Jenny has been reinvesting proceeds and adjusting for duration in the portfolio in this higher industry environment moving forward, but the two year, five year and 10 year firmly hit that five percent and have been going down. We are a lot lower on the yields now as we move into a looser monetary policy regime and kind of a probably lower in general interest rate environment moving forward. The yield curve has not had the inversion that it has exhibited for the longest yield curve inversion we have had pretty much on record. But after the Fed lowered rates, we saw the front end of the yield curve fall significantly. I think Jenny would probably be better to explain how that's affecting the portfolio, so I'll turn it over to her. Sure. Well, thanks, Carl, for that. And obviously, when we see yields come down, that means the value of fixed income securities goes up the prices. So our reinvestment rates are slightly lower. Before we were getting 4.5%, 5%, now we're getting more like 3.5% or 4%. But it's still quite a bit higher than what we were seeing during the pandemic when we saw historic lows. So are there any questions about the economy before we move on to the portfolio sections? No I think we're good to move ahead. Okay great we'll proceed. So just taking a look at the portfolio strategy we're obviously looking at safety liquidity and yield or the primary objectives. And we manage the portfolio according to the investment policy for the city and also California law. So we have a compliance report that shows that the city of TUSSEN is in compliance with all applicable rules as of August 31st. And then taking a look at the consolidated portfolio, this includes Chandler managed strategies of the one to five portfolio, which is about 75 million the liquidity strategy, which is a one year maximum, which is about 25 million, and also about $80 million in liquidity managed by city staff. So we did see over the course of the month of August, we saw some money go out that was a withdrawal of about $7 million, which is typical this time of year when we're not into our tax receipts season yet. So we typically see out more outflows than inflows this time of year. So we saw the portfolio go from $190 million to about $184 million over that timeframe. We have on an overall basis, including your liquidity, you've got a duration of about eight tenths of a year. So it's a lot shorter than the one to five or the one to three-venge mark, but it's also keeping liquidity that the city might need for some of the capital projects and things that are in the works right now. So looking at the overall asset sector allocation for the portfolio, you've got about almost half in liquidity. You've got about 33% in US Charteries and Agencies, so about a third, and then high quality corporates comprise and CDs about 20% of the overall portfolio. So you've got a nice, diverse, very conservative mixture of assets overall. The maturity distribution shows that you've got about 63% of the portfolio of half a year maturity or less. So six months or so. So when we've been reinvesting, we've been targeting the five year part of the curve for the most of the Chandler managed assets to try to lock in some of those higher yields that we were seeing. And then looking at performance on the bottom of the slide that you can see on a consolidated basis. When we're looking at the one-to-five benchmark that's about two and a half year duration when you're looking at the one-to-three benchmark it's about 1.75 duration. So obviously these assets are quite a bit shorter on an aggregate basis but because of that because we saw rates go so high you know on an annualized basis since inception going back to December of 2020, I mean, you've been outperforming the benchmark significantly, both on a total return and a realized basis. So getting, you know, since inception, about 2% on a realized basis and about 1.2% on a total return basis. I've seen quite a bit higher yields over the past couple of years. Obviously, we've seen rates come up a lot higher. So we beat the benchmark on a total return basis in the two-year sector. But obviously, now that we're short the benchmark on a consolidated basis, the longer-term strategies are going to start to look a little bit better. But still very impressive, 5.7% over the last year on a total return basis. So yields are much higher, there's more income for the city on all these assets, and so that's going to be very helpful going forward. The maturity distribution, you've got about 100 million, a quarter of a year or less, and then as I mentioned, we've been targeting in the 1-5 strategy, getting out in the five-year part of the curve to get that duration where it needs to be. So speaking of the 1-5 portfolio that Chandler manages, this slide is focusing on that, particular strategy. So you can see that there was an increase in the amount of assets of about 5.6 million to 75 million. And that's primarily because we moved 5 million over from the liquidity strategy. We've got the green light. We worked very closely with city staff to ensure that you have enough liquidity to meet upcoming needs. And so we got the green light to move 5 million dollars into the 1-5 strategy and lock in some higher yields in the month of August, while yields were a little bit higher. So that brought the duration to about two. So it's moving higher. You know, again, the benchmark is about two and a half. So we're still short the benchmark, but moving in the right direction. And we have a heavily, you know, focused strategy on corporates in this. We have about about 48% and corporates, about 49% in U.S. triadries and agencies, and about 3% in cash. So we're kind of focusing on, you know, some of those areas right now where we see value and looking at the performance for the Chandler Manage portfolio. Here we've got about 1% annualized returns. But over the past year we've been getting about 6.5%. And part of that is the income that you're getting that's a lot higher than it used to be. And another part of that is that drop in yields that we saw causing the value of the securities that you own to be higher. So we've been able to beat the benchmark in terms of the total return for the strategy over the last year. And then taking a look at transactions, just to show you what we were doing with that $5 million that we transferred over. So we were able to lock in some yields over 4% in some high quality corporates, Eli Lilly and Honeywell opportunities, and then also five year treasuries, they drop below 4%, but they've come even lower now. So we were able to lock in about 3.8% at the time of these purchases in mid-August. So that concludes our presentation. Are there any questions for us? I don't have any at this time. No, very clear. Thank you both. Excellent presentation. I've been watching the balance between our rates and the other central banks and trying to figure out where the funds are going to flow. But it's anybody's guess at this point, so we just write it out. But you guys have been doing great managing our portfolio so far and all indications are that's going to continue so we sincerely appreciate your help and your presentation. Thank you. Thank you so much. Thanks for having us. Thank you. All right. Chair would entertain a motion to approve the investment report. Motion to to approve and I will second roll call John Wendy Who prove Jared Elmore approve motion carries to zero This time are there any comments from staff No comments from staff at this time. Thank you very much and My fellow mini member nothing go right. Short sweet to the point. We will adjourn to our next meeting, which will be sometime in November. Date to be determined here in Chambers at 5 p.m. I suppose. Thank you all. Have a good evening. Take care, Jenny. Take care, Carl. Thank you.