Board quarterly meeting. It's Monday, September 16th, 2024. Roll call please. Drill Mone. Here. Drill Sviger. Here. Drill Sviger. Here. Drill Sviger. Here. All right. Give me a few public comments. Seeing none, we'll move to three approval of minutes. Make a motion to approve the quarterly meeting minutes for June 10th, 2024 Rokal New business one is the post 2024 2025 budget. Yeah. And I assume there's a chance to look at that. Basically, this budget is not something we're trying to get to. This is a budget based on the state of the plant that we do this. We try to come up with a budget that's reasonable, but also builds in potential for anomalies, such as what we have today, which is an accessibility here, and some kind of an actual aerial study that goes above normal planning and administration issues. So that's pretty much what we've tried to stay somewhat in line with where we were taking into account for CPI adjustments and things like that. And, basically, come up. But, after all of that, we've only increased the budget estimate of $2000. Okay. So, there's many questions. I'll be happy to discuss those. budget estimate $2000. Okay, so any questions? I'll be happy to discuss those. Otherwise, we can go ahead and do that. Do we have any questions? Please ask. If not, we'll look for a motion. I'll make the motion to approve the schedule of the spenders budget to actual as of July 31, 2024 for the 2024 2025 budget. A second. Yes. Roku. Hey, Joe Mahoney. Yes, Miles Lullard. Yes. Charles Geiger. Already 200 and Brian James. Yes. All right. Yes, I was weller. Yes, yes, yes. Yes. Moving to two proposed 2025 meeting dates. So today what we have proposed for meeting dates probably at the same time one day. So the web app was proposed September 8th. rate is not going to work for the town. So we've had to change that to September 8th. And then also the proposal was made to change the times of the meetings to condescent. So we already have approval from basically you go from 10 o'clock to be the general 11 30 would be police and one 30 would be fire. Which that so time is going to actually be the same fire is going to try to move up to 11 30 and you guys will stay at one 30. So just the one date will change 11 11 30 would no no there's going say at 1.30 fireflies moving up to 11.30. All right I'll look for a motion to prove this days as revised. I make a motion. We prove those dates as revised. Second the motion. Local. Joe Money. Yes. Second the motion Yes Moving to new business three update on trustee terms David and Miles were appointed to be 225. That's all being handled to the town. I think we'll do that now. I hope to get that as well. And if you want to move down to the coming of the fifth trustee, we try to do this at the last meeting, but we didn't have four, which were a key chance how to happen to be as on a vote. Now we might be able to determine if the trustee supports you. So I'll let them make a motion for the fifth trustee. Make a motion to vote on the fifth trustee. There's a reelect, Charles Dagger. You're okay with that second. Brent. All right, Rokall. All right, Joe Lone. Yes. I also all heard of Charles Dagger. Yes, that's a very good time. So, so moved. Congratulations. Thank you, gentlemen. All right, so that covered up with the fifth trust. So you will move it on to five reports and we'll add, say, a little trust here before we get to Marin. Good afternoon. Good afternoon. Good afternoon. I'll be brief. I'm going to wear a new shirt. Just to give you an update last time, I'm just going to show you a short, but I'm going to retire when you're in trouble. I'll keep that off. If everybody would want to wear a right shirt, or wear a new shirt, you're going to get rings on of the other companies. So one thing I have to do is spend what we spend. After we've been in the interior of the event, we'll make sure that the next meeting will start to take the call. The basic call for getting more, you have to be set at 20. We're working with a maintenance squad, and we're going to get a minute, so we'll do that in a while, so we'll let it rotate a little bit to zero. but the letter will take more equipment to the room. And then the best thing for the last few years is that you know, you know, they've been asking for this year, the previous year. So that's in the works, but we'll keep that nothing on that. And if that's anything's going to do with your business, you have currently only moving on to a different role, so at the end, we're not going to have to a different role. Do that, be on, but we have to be on. We're moving on to a different role. Do that, be on. I think we'll change. I think we'll change. We're moving on to a different role. We're moving on to a different role. We're moving on to a different role. We're moving on to a different role. We're moving on to a different role. Do that, be on. All right next up is mail-in or institutional. John, do you mind grabbing that mic there? So if you open up your phone to appear to be on the team. Read some number on the right hand corner. So notice that there's a door to the roof there. Yes, it's a key part of the door. It's on the floor. And a minute is right below there. That's what we want to make sure we keep that up. We're actually down negative about 3%. So I'll show you a second here. But there really is a handful of stocks. I've already said that if you had to excuse them, I would have had a kind of high range of all sorts of two of that. In the yellow or orange is international. You can see there are the emerging markets that have heard one. And more to the orange, which is better. I'll show that to you for our managers. Then for this quarter, in the red, on, so I'm not going too much, but I'm sure you're all aware that the red point is high rates on Wednesday, so they're helping to move into the hot more big, so positive, exciting things. At least they actually, 25% of it. Visually on page four, in the upper end camp corner, just look at the red and blue bars. And you can see there that the red bars are the top edge of the bar's techniques. So your manager MFS is right as this. You can see that's whether I'm 40% in this was weird. And then your value stocks are actually paying for your value, bank or an equity income. We can't just see that disparity with this one. So I'm trying to get all of this out. And then I'll turn on one more page to page six. And you have to have a name corner. You can see there are those with a name that you wanted to say to the students who are going to support this side this year. Microsoft's Apple on the video is the big one. I'm Amazon Facebook, Google, Viewed in the second and the last one, first, I heard Appleway, which is a warm office company. So recently, this company, it's called Microsoft. So you know, the largest value stock, or the value stock, the half of it, it's actually Apple. So, again, unfortunately for you all, you had a decent experience with these names here, which is why we are arriving so high. So, getting into your portfolio on the next 12th and 13th. Here, a parking corner as of June 30th, you see 16.5 million. As of this morning, we are just under 17.3. So we're out of the office. We have a strong quarter. Then you can see how we're allocated with high charts in this part. So we're doing the right, which are the athletes. Then you see the bonds, the real estate. And then we have a lot of tasks to go higher than normal, just because rates are currently at least either sold or not, but by no chance. So I'll come back to the red and the other discussion, but we did allow that to grow higher this year because there's a lot more we've on. And then we've got to go to have you. I'm very glad to have you. I'm very glad to have you. I'm very glad to have you. I'm very glad to have you. I'm very glad to have you. I'm very glad to have you. the So we started at 13.9. This book is shown in 16.5. And as of this morning we're at 17.3. And then from the returns on page 18 and 19. The year will be a quarter, top line on 18. Just 102% for the quarter. And then push your fist one year number at 17.6. And as of this morning, you're just under 20% so we're right there. We're sideways in here. We're pushing up on that 20% of the term numbers. Rank wise, you can see there, you know, for this fiscal year, that 14% and 14%, you know, basically 85% in all the other plans. That are not in the other plans. So, as you go down on the second column there, just looking at the bottom half of this page, we'll see the equity on the set we have. You can see there, good, the second for last one, or so, the S for that 40% it's at the OS for that over 40% that's where we have those second names but you can see there are the other bang or products we have the top one there is the bang right we still positive all the self-17 they did not have those second names for four behind that over 80% similarly the last one there is the extended market and it says small and mid cap. So on a normal year, you did better. You can see Americans, you can second column up 18% of the Trans-American right behind their own oil team. Then we round out with our bonds in our real estate, so your bonds in the real estate are integrity, you know, six and a half percent. You're still going out very well. And then your real estate manager, the only negative so far, this is a year down 80%. But we're getting close to the end of real estate that we're negative returns. So once I've been raised during a downwind site, see how much. And then hopefully it's $125. And we will see return to sort of the cost. So I will all of this recap here. This will be your right hand. We'll be showing you 17.6. You know, we just moved sideways from here. We're going to be somewhere close to 20. So I'll be able to go through what's removed then. And then I'll be reading your own internal benchmark, getting the average plants to different lengths. And then also, you're ranking very high, even though that was a big, about a hundred cents a month. I'm going to record we're going very well. I was like, I had a boy. So I'll pause there to see if there's any questions just on the overall leverage. No, thank you. Okay, so the last thing is just before this, you know know now that the fiscal year is coming to an end We did just have the state monies come in you know, so we do actually have over a million in cash right now So I will invest that according to your policies I would not sell them you know sends me an email either this week or next week that we have excess cash But I was asked I there's a handout at the back of your book. And this is just for clarification. This is not a recommendation at this time for myself. But I just wanted to kind of put more context around crypto or in particular, Bitcoin, which we seem to have been talking about here kind of every quarter. So a lot, I feel like we talked about this for two years. Obviously this year was the first year that a bunch of ETFs came out. I have on this handout the ones, you know, it might not be all of them that are available to us, but it is a good majority and you'll see here that the returns are all very similar. But there is now a vehicle for us to purchase with Salem if we want to get on that route. This is gaining a lot of traction. But right now, there's only some of the larger plans, not in Florida, but around the country, are putting some type of allocation to work. So again, I'm unaware of any public mariners plans that are doing this right now, but it is not going to go away, so I figured we, since we're going to keep talking about it, that we could just put more context around it to help our discussion out further. So this first page here is just really just, I listed all of them and I kind of listed on a month-to-month basis so far this year, kind of what these ETS have been doing. Kind of when I was going out there from an advisor standpoint, a lot of people will recommending the eye shares one. I don't know why, but that's one. That's the top one that I have listed there. But again, you'll see here from all of these that the returns are very, very similar. So they're all kind of doing the same thing. It just so happens that, you know, the big Wall Street firms, like I just happen to be recommending the eye shares more than that's for most of the assets. But if you just go to the top line there, obviously they just came out in January, so I don't have a return for the full month of January. But then you can see on a month, the month basis there is your left-hand right. Obviously February was a very good month for them. It was new to everybody, so everybody was buying these ETFs. And then you see the March return April negative pretty large, then May, June negative. So you can see the Q2-24. Since you only see me four times a year. That's what we would be dealing with. So we would like the first one. If you go to Q1, there's only one of them that had a quarter return. We saw a 64% that would be great. That's what we like to see. But the second quarter there down 15. And then so far this quarter they've been kind of flat a little bit negative. But that's what this asset class, even if you loved the long-term projections and where big corner overall is going to go on any given month-day quarter, there could be dramatic swings. Obviously we like the swings to the upside. Ultimately the only swings that happen are when they happen on 9.30. So I know you see me four times a year. You probably follow the portfolio every single day. But the only truly important time is when Doug comes and the books are closed on 9.30. So if we had one of these down quarters then, that could be pretty bad for us if we had a kind of an allocation year. But I can keep updating these items and add on a quarter. I'll send them to each month or quarter, but we're often running and there's a number of vehicles here. Just for perspective, the last line item there is the actual money market fund that you all currently have. So basically it's getting, give or take 1.25% per quarter. So since this money probably would just be in cash, a money market fund, if we ever did anything, just for perspective, that's where these money would be parts in what you'll be returning there. Obviously, a lot less boring and pretty consistent, getting 1.25% of quarter versus these other ones. OK. So the second one for our purposes here is kind of our discussion last time was what if we put a very small amount in, you know, about a half a percent, right? So I went back to October 1st of this year and give or take, we are at about $14 million. So a half a percent would have been $70,000. So in that example there, I piece together the spot price for October, November, and December, that 1 ETF that actually had a quarter return, and then just using the eye shares for the other quarter to kind of see what the returns would be. You can kind of see there in the table, kind of the fourth line item down. And then I kind of let our $70,000 in this example kind of run, getting those returns, and then kind of showing you the allocation of where we started, and then what your actual book value, you know, the 1231 set in our books, and what that hypothetical investment would be, and that allocation there. So, you know, the ones down below there is just some verbiage that if we have been doing this under this year, that Bitcoin return would have been 119%. Yes, we love that. That's very good. But it wasn't the money market fund getting us 3.78, which is 3.4% to that 5%. So obviously in this fiscal year, it would have definitely been beneficial to have that in there. I also thought right below there, just for perspective, if you take that half a percent allocation and I do the delta or the difference of earning that big coin for that 0.5% versus the money market, ultimately what would have done to our overall number? So the book I just showed you said, our fiscal year number for 630 was 17.6. And you can see there, it would have added 0.58. So if we would have had it in the portfolio, we would have had 18.8 there. So I know that's this year's example. But I also just wanted to show you since it is a volatile. If it went down 50% or God forbid that it for some reason I went to zero, I give you the examples there. Basically taking away some of the returns from all we had and you can see there. Interestingly, you know, I told you all ranks 14 amongst all public plans. You can see there that if we had it this year, we'd be ninth. And if we did not, it wouldn't change our ranking that much. So I found that actually pretty interesting. That give or take, it was kind of not making a big difference on where we are overall ranks. One thing on this page, I would like you to point out that our discussions have never come to this. But since this was a tremendous year, is if you let this sucker run, and I've seen articles where the projection of Bitcoin's at 56,000 today, it's going to a million, that is a whole heck of a lot of return. And everybody gets super excited about that. But I just realized the positioning that it would cause in your portfolio. And then when we talk about an initial investment of half a percent, it doesn't seem like much, right? Half a percent here or there, that's kind of put on quote play money. It's not making an overall effect, but if this thing had returns like it did to start this year, one quarter or 56% and then 64. That quickly goes over to your percent of your funds. And then not only do we make a decision to invest in Bitcoin, now we have to worry about how do we position it and how do we monitor it. And this current fiscal year, the monitoring will be to the upside. Do we let it run or do if it gets over a percent, do you cut it back. But you would also have to do it on the other side that if for some reason it was down 50%, do you believe in it, do you keep adding to it? You cut bait. So that is the one part that all of the projections are nice, but that's a whole other animal of, do we have a policy in place where we say saying that it automatically does that for us or do we just look on a quarterly basis which is for this asset class is pretty long, you know, a couple months to make any unnecessary adjustments. So I just had questions for us. Obviously if we go down this route the first one is, do we do it? The next one would be what percent? I kind of gave some very simple examples because the math kind of worked out nicely for me. What vehicle? They kind of chose that for us. Now we have an easy ETF that can be purchased. And we have daily valuations on that investment vehicle. So the number three is kind of taken care of for us. The fourth one would be currently Marinor. I'm not recommending this, but we would have to have some criteria of which, you know, I happen to choose eye shares because we would want some type of processing in place that we would, you know, share that we did our due diligence and that we selected Bitcoin ABC, you know, so we would have to have that in place. And then five and six are kind of the unknowns just because of the return potential and the volatility returns is how would we position this and monitor it. We're up 100% in between quarters. Does it automatically just rebalance back into a range or you know if it jumps at 2% of our fund do we let it go then that's a lot more risk than the original up 0.5 you know or do we automatically cut it back to 1% you know so we would have to determine that and then also the unintended risk you know right now it's a buzz word it is gaining a lot of traction, more on the private side, but institutional they are doing it. So the first ones for the door can always get a bloody. So do we want the risk of basically non-investment risk that something happens where yes, if we believe in the long-term perspective, you had that one bad quarter that happens on 9.30, and our book value that Doug has to use for the valuation is our Bitcoin values now down half of what it was before. And then that costs us 0.3% on our overall number, and then it gets in the cities all mad, the newspapers, and then the boards mad, and everybody is upset, and then it becomes a larger issue. Sure. So I'll pause there for questions, but I feel like that's further than I have gone with any other client before. But it is not going away. But if we do choose to continue to go down this route, that is just some of the things that we're going to have to address. And it kind of opened my eyes doing this is the allocation effect of seeing it in real time this year. It went from the .5 which we were okay with to no matter two quarters. It's 1.2% of your funds. So I think that in how we would handle that, we have not discussed that. So I'll stop talking there just to see if there's any thoughts or questions from the trustees that are here. So if it goes to zero, it doesn't really affect the fun immensely. Correct? After the show. I just showed you, yes. I mean, is that fair to say? Right. I don't like using absolute terms, but from what I showed you that's the yes, I mean that fair to say I don't like using absolute terms but from what I showed you here The absolute number and where you rank I think that is a good conclusion, but it is real dollars that if Like any any investment right? You know in 2022 we didn't go to zero, but we lost a lot of money Sure and hence the city had to contribute more money, so It doesn't from a return standpoint and where you rank what I showed you here that is a good conclusion but there are dollars and cents that any investment we make not just potentially this one that returns are negative that means the city contributes well it'd be similar to real estate yeah okay what 7% there I believe. But it was 10% at one time. No I'm glad we scale back. Yeah it's. Right now I am maybe not in the next years. Okay I'm so it's really I guess the analogy where you made like it will be upset with us is because of this backload of nature of digital assets. Bitcoin is easily political. It's easy to get there quick. And with anything, you are stewards of this money here. And even though if you have the data to back it up, I would say you guys are in strong standing to make sure we have that first. And you all should be worried about diversification and the overall numbers is what ultimately matters not just one investment Because right now it doesn't look like we should be in real estate, you know, but two years ago It was up those are best performing and really saved the plan, right? You know, so you all look at it holistically together But it is just one of those hot blood and items that can you know be used against you very quickly Even though the long-term perspectives that can be used against you very quickly. Even though the long-term perspectives, prospects look good. So like I said, I think, unless there's a motion to actually invest in one of these here, I could come back each time and we could keep on looking at our further. And then maybe at some point there was a recommendation for me to do it. But ultimately, if I'm not recommending it now, I'm just providing data. And then if the board through that data feels so inclined to invest in one of these or gives me a further direction, then we can have further discussion on allocation and policy around that allocation. Yeah I think it can be conservative. We look at the numbers again next next meeting. Okay so I'll just continue to kind of update this and then it goes to any new information that comes out and then yeah we'll just keep going and if there's updated from Mariner as a whole then things can change quickly but we'll have a good fiscal year next year we'll just keep going and there's updated from Mariners a whole thing. So we'll have a good fiscal year next year. We'll be in good spirits. Appreciate it, Joe. All right, next up is Pedro. OK, good afternoon, everyone. Can you hear me okay? Yes. Okay. So really, first, I guess, let me go by, by some items on the agenda. There was a question with respect to the, I guess to the ordinance or the requirements for serving as a trustee for serving as a council appointed member. I don't know how much detail you want me to get into, but essentially obviously as you guys are aware of your board to close the five trustees, two of the trustees by statute and by your local ordinance are to be elected by the police officers, those who are members of the plan. Two of the trustees are required to be appointed by the city and they must be city residents. They must live within the perimeter of the city of Edwarr. And then lastly, the fifth trustee can essentially be the only requirements are really alive and willing, right? So there is no residency requirements. There's no requirement that they be a police officer. The only requirement is that their willingness to are of enable. So I know there was some questions about potentially who could be appointed and I know I had some emails going back and forth but you know I don't know if there's anything further on that or if you have if anybody has any questions or if you want me to touch on anything else but really it was just more of an update in terms of what the requirements are. No, we appreciate that. There was some confusion in reference to an applicant in the city per for. That's been cleared up since then. Yeah, that's perfect. And then on here, I know we discussed that last meeting the the restatement we had made a couple of changes to that. I believe that that we sent it over to the city. So we'll keep and enter the actuary for the impact statement, but we can we'll keep you posted on that front in terms of where where it stands Okay Thank you, Pedro there All right, moving on to six old business Seeing none moving to seven consent agenda for motion. I make a motion to approve the consent to genders advertise Thank you that motion. And, Rokal. Good, Joan Honey. Yes. I was Waller. Just, Joel Skiger. Yes. Brian Guess. Yes. Good. Moving to eight staff reports. Foster and Foster. So as far as the up to this ability at the Davis, all of them returned. So we had nothing else to say about that. So we did do that nearly. So I think it's good for the sure. So that on the agenda. The next thing is update on state money. So last year, we received sort4,29,205. This year is $271,642, which is an entry of $7,042,000. And that seems to be kind of across the board, in most cases, at least numbers are going up. So the state money is a roll right into the education. Yes sir. The ten-year case. So the only thing we have on for right now is the vision retirement. 53 annual police officers and firefighters, sent your conference. It's going to be November 13th or 15th, and that's going to be close by. They tend to be shores. I guess that's normally held in Orlando, but they've moved it, which makes them close with the UL. Am I included the packet, the flyer, in the agenda packet that I sent you? This is a free class foot on by the state. Doesn't cost anything. Everything you need to register is right on that flyer. And as far as the feedback that I've had, including Pro Pedro and from plenty of trustees that I've probably put this before, very good class, the first day is kind of really geared toward newer trustees. But there's a lot of meat on the bone. So, it's a lot of food. So, what else would there be? So, it's a good food for the state. Mm-hmm. Or anything else? Really good. Real quick. So, your fiduciary liability policy is going to be expiring soon. And the city did go ahead and get quotes on that. It is cheaper usually with the city, getting several quotes from, or for all of the plans under the city. So we would need a motion to approve that renewal. The premium actually decreased by $27.12 for the same coverage. What exactly would you be seeking for the motion? Just a motion to approve the renewal of the fiduciary liability policy. The whatcher? fiduciary liability policy. The whatcher? fiduciary liability policy. You can say so moved. fiduciary. So moved. In second. In the roll call. Good morning. Yes. My floor. Yes. Charles Geiger. Yes. Brian. Yes. I'm on the move. All right. Anything else? All right. Move else? All right. Move on to nine. Trustee reports discussion action. Does anybody have any other? I have a report. That's a good report. All right. We'll promotion to a job. Good. All right. How much of that 21 George? All right. Everybody take care. Thank you. Thank you. I'm going to be there. I'll be there. How much of that 211 George everybody take care. Thank you. You guys going to be there. See you next week at the STP T.A. All right, buddy. All right, good. Bye bye. All right. It's over time.