Auditor Selection Committee - Regular Meeting

Scott F, trustee.

Steve Collins, trustee. Courtney Fregals, Mariner Institutional.

James Reno, Mariner Institutional. Christie

Stoker, Foster and Foster.

I got the thumbs up. I had to go. And Paul Bonnelly,

the General Counsel for board.

Too much pressure, Terry.

Well, this one's easy. Pledge of allegiance.

For which it stands, one nation under God, indivisible, with liberty and justice for all.

All right. So I don't see any public comment. Do we have any? Moving on to approval of minutes for March meeting. Howard Burrows, trustee, motion to approve

the March. Do we have a motion?

Gustaf, second.

We have a motion

and a second. All in favor? Aye. All right. That's approved.

Moving on to consent agenda.

In your tablets and let me know if anyone needs more time getting to your tablets. The code is on the top right corner of the agenda that I passed out, right near the tablets. I'll give you a moment to load those. And then the only icon on the home screen should be the agenda packet. And the summary of payments is the first page of the consent agenda that starts on page five of 107.

Only one warrant full of invoices went to Salem Trust for payment this quarter. It was a lot of them. But nothing out of the ordinary, all your usual and customary expenses. We always, for every summary of payment or for every warrant, we make sure that the contract that is in effect matches the fee that is being charged invoice. So we've looked at everything.

But certainly, if you have any questions about any of the payments, please let me know. There are no new invoices for payment approval today. And then the third item under consent agenda is the fund activity report that's behind the invoices on page 21. Had a little bit of activity this quarter. Kevin Barnes entered drop June 1.

His calculation is still in progress, so I don't have any values to share there, but I don't think it should be that much longer. John Wallagora exited the drop back in March, but his December 31 as of 2024 balance was paid out to him initially, and he's all set up in collecting his payments. I spoke to him the other day. He's going to take the remaining balance of his share plan and the rest of his drop money after 2026 begins, just to spread it out for tax purposes. A VT member, David Eggleston, he started collecting a monthly benefits June 1 and then a few share about any of those or maybe somebody I missed that should have got something?

Did Jeff Cleary, he had contacted you

or He did. Yeah. He's on the last fund activity report. He was supposed to get a thirteenth check. Or no. Oh, he's on here. Yes. So he's the one who contacted me.

It must

have been shortly after March 15 or right after I submitted the other, the distribution spreadsheet. And he said, hey, you know, I think I was supposed to get one. And he sure was. And he was paid that out.

Okay.

Yeah, I was really glad he advocated for himself because if he wasn't on the schedule, I wouldn't have known to look for him. And he spoke up and he got his distribution.

Well, I had some other members contact me that are vested terminated. And I had told him, I said, you don't accrue a benefit until you retire. They're in their 40s or whatever they left. And so their money's parked. So anyway. All good.

Any questions or concerns? And if not, we'll just need a motion to approve the consent agenda.

Scott Duff, make a motion to approve the consent agenda as presented.

Do have a motion? Do I have a second?

I have a motion to second. All in favor? Aye. Motion carries. Moving into new business. This sounds like a fun conversation. Well,

Doug's not here, so it won't be lengthy. I am here on behalf of Doug. I guess I can explain it well enough. So first of all, the FRS did update the mortality tables. And every public plan in the state is required to use what FRS is using. They made their change with their 07/01/2024 evaluation. So the change will be made with their upcoming evaluation for tenonetwenty twenty five. What that means for you guys, not much as far as the members are concerned, but the mortality tables are going to project that are projecting. People are living on average two years longer, including public safety officers. And so there's going to be a short term funding impact on the city.

It's not the same mortality tables used in benefit calculations. So the members won't be affected, but there will be a short term impact for the city. Doug did let me know that if you guys want to see the funding impact in advance of the valuation, you could pay for a study, which would be $1,600 But since the change is going to happen anyway, you might as well just save the money and wait for it. That's just my opinion. But certainly, if you want to see it You have to do it, right?

You have to do We

can wait three months to figure that out

because we're be doing it in any way, right?

Exactly. The next meeting's September. So the valuation wouldn't be until December. So he could present it at the next meeting, but again, you're spending money that you have to do it anyway. So I just wanted to give you guys the heads up. Unless you're going to approve a study, there's no action. This is just information.

Do we know, Christy, like what has been like, this is technically a year ago now for FRS? Like has there been any impacts that you're aware of to other municipalities, closed plans specifically?

I haven't seen any of the it's going to take effect with the next valuation, So I haven't seen anything. And none of my boards have elected to move forward with a study because they're all in the same place as you guys. Like, wow, we have to do it. So we'll we'll wait and see.

All right.

A couple that have been forwarded to the study, but they haven't presented yet. So I don't have any

insight. Okay.

Yeah, the study doesn't seem like the most popular action item because it's just spending more money to see how much more money the city is going to have to spend. So anyway, any questions I can relay to Doug on your behalf? No. Okay. All right. That's all fine.

So we just

need a motion to approve that?

No. Okay.

Perfect. And moving on to reports.

So we'll share actually some organizational updates really quick with you. I do have my colleague James Reno here with me today. So due to some of the growth we're experiencing as a firm and some history I have working with different kinds of plan types overall, being kind of pulled away from the government pension market and put to work in other places, mostly government DC plans and private sector DC plans overall. So with kind of just some reorganization and changing of responsibilities internally within our team, James Reno is going to be taking over the role that I serve for the board going forward. I'll still be with you toward close to the end of this calendar year.

But then James will essentially be your primary. We work in the same office together. We're in the Winter Park office. He works a lot with Carrie as well and lots of other plans. So we'll still continue to all work very closely together. And I'll keep tabs on you all. You all are not going to get rid of me. So I'm still going to be very involved, but he will be the face of what Mariner will be delivering to you after probably next quarter or so overall. So I'll let James kind of introduce himself, and then he's going to walk you through the market environment, and I'll then get into the performance.

Yes. So first off, it's very good to meet everyone. I'm very excited to start working with your plan and start contributing. But I'm Jim Trino with Mariner. I come in with over five years of industry experience, all this in institutional investment consulting and servicing for public pension plans just like yours. I'm also a CFA charter holder, and I have a background in economics from the University of Georgia, in case there are any Bulldog fans without doubt.

Go Buckeyes.

Go Gators. No. Yes.

But in all seriousness, it's very good to meet you all, and I'm excited to start contributing to your portfolio. So we'll jump into the market environment. As Jorge said, I'll cover the market environment today. Results. But before we get started, despite all the volatility we've seen, you'll see that the plan has held up very well, and we have no major changes for today's meeting. So we'll just open up the book to Page three, and all of you should also have a market handout chart I'm use to help me talk about tariffs today.

Okay.

And it's the quarterly report.

Yeah, the quarterly, yeah.

So Yeah. And I'll just open up with some broad strokes as you all

Big book.

Big book.

The fact. It

can confuse you all with the multiple. So I don't usually have one hand up, but activities happened between the March. I also brought them the thinner May updated performance.

Well, was going ask

the last two meetings we've had the update. You usually, we don't get that, but I know the market has been very negative. So is that something to say that we've rebounded a little better or just to say because that I know I keep on saying our meetings are a few months past our quarter. So we're almost under another quarter. So you're going to continue to do that or just

I usually usually continue to do it if there's been a lot of if it's been a very newsworthy market environment overall. And we just had very active markets the past six months. I've been bringing the flash reports by all means. And that's something we can certainly also talk about your meeting schedule. I know before

We used to do like May.

Yeah. And with my involvement, it was always kind of tied to and Carrie's involvement before that, it was tied to some other plans that we were servicing in the area. That link no longer exists, at least from our end. So if toward the end of this year, as you're looking toward the 2026 calendar schedule, if you wanted to look at things, Krissy, maybe Paul also It doesn't matter to me.

It's just weird me that we're over marked. We're talking about March 31. We don't make we're doing a knee jerk reaction having a meeting right away and go, we need to change everything. But it is weird to talk about old news, it almost seems like. And then that's where the 05/31/2001 you have here updates us.

Yeah. It's all relevant.

Yeah. Okay. So we can talk about that in our next meeting when we go back to maybe a month out instead of three months or two months out. Yeah. Okay. So really,

since 2022, we've been talking about interest rate policy with the Federal Reserve and when we can hope to get some relief on that front and the Fed start cutting those interest rates. But really, for the 2025 and it's not this is even old news because tariffs have been the whole year, at least until this past week with the Iran Israel conflict. But really, throughout 2025, we've seen the narrative dramatically shift towards trade policy and uncertainty around tariffs. And we've gotten a lot of head fakes from the Trump administration. It's been this on and off roller coaster.

Tariffs are on. We see the stock market pull back. Tariffs are off again. We see the stock market rebound. More recently, in early April, we had the Liberation Day announcements, right, where those reciprocal reciprocal tariffs, if you saw the chart with Trump, when those came in, those were so much higher than anyone expected. We saw a dramatic pullback in the stock market. But since then, we got a ninety day delay. And as of May, we've made progress with the European Union. And we've even got a lot of optimism around the negotiations with China. And you'll see that optimism in your May flash report as the stock market rebounded, the S and P 500 up over 6%.

So it's a very fast moving environment. But really, the thread, I think, that ties it together is we have to look at the past two years to understand the volatility we're seeing. We basically had two twenty plus percent run ups in the stock market two years in a row, a 60% cumulative return. So anytime we see optimism kind of getting carried away and getting ahead of itself, it's not really a matter of if, but when are we going to see some sort of pullback or correction. We just never know what the cause is going to be, right?

In 2020, it was the COVID pandemic. 2022, was this high inflation numbers and the Fed hiking interest rates. And now it's tariffs. So I brought a market handout today just so you all can see how we kind of think about market volatility and try to put a long term perspective on it. The blue what the blue is, and this is the S and P 500, the biggest, most profitable companies in The US. The blue is any time you see a 20 plus percent run up in those companies. The red is any time we've seen a 20% run down in those companies. The blue is called a bull market. The red, a bear market. I'm sure we've all heard those terms.

But you can see since 1945, really, there's a whole lot more blue than red. And bringing you all to recent history in 2020, the COVID pandemic, that didn't feel like a blip in investment history. But you can barely even see the red on the chart. And 2022, when we had the Fed hiking interest rates and really nothing worked, even the bond market was down significantly, which is usually a safe haven, you can see we've already overshadowed that with the blue already. So I say all that to say we want to keep a long term view when your pension plan that's well balanced like yours, time is really on your side.

So I'll cover one more chart. Page three looks like this. It's kind of a noisy chart. But this although it's noisy, this is one of my favorite handouts that we put out. So if you look at 2020 specifically, the red bar, it says negative 33.8%.

All that is saying is that at some point during 2020, you had about a negative 34% pullback at some point during that year. The blue bar is actually where you ended up. So although you had a 34% pullback for whatever reason, the COVID pandemic, you ended up with an 18% return. And since 1989 to 2024, you can see there's not one year without a red bar. And on average, we have about an 11% drawdown on any given year but still end up with a 13% return per year.

So just to summarize, volatility is a feature, not a bug. Anytime we're investing, we expect volatility. So any questions there? All right. So we'll just go to Page three, and I'm going give a quick backdrop for your overall plan's performance.

And that's the big book. So for the '5, because of tariff volatility, the S and P 500 domestic equity market down about 4%, again, due to progress with tariffs. Now year to date, it's positive, up 2.34%, so actually modest gain since end of last year. International equity as of end of last quarter was up about 5%. It's continued those gains. And last I looked, it was up about 15% to 16%. The Bloomberg US ag has stayed pretty constant throughout the year, around that 3% return. So really, now to this to where we're at in the year, positive across the board. So fast moving market. But that ties up the market environment before I pass it to Jorge.

Are there any questions there? No. Okay. Thank you all.

So with that, we'll kind of see what that's impacted your overall plan. So if we go to Page 12 still of the quarterly book, you'll see that in December, you're at $68,700,000 You ended last quarter at $68,100,000 So down about 600,000 but a lot of that and most of that was just negative cash outflows, right, from paying benefits and then a little bit of negative market performance. You'll see here on the couple of pages, you're just slightly negative from a return perspective overall. Don't worry, I'm going share with you what your number is as of yesterday. It's a lot higher.

Actually, won't make you wait for it. It's $70,300,000 is where you are now. So you're still $2,000,000 plus over where you were at the March with all this volatility, which we'll kind of get into the story of that here overall. So it's still doing very, very well despite all the noise in the markets. Page 14 of that report shows asset allocation.

If you recall last quarter, we were bumping up against the upper bound of domestic equity. And we didn't take any action. But then about a week after our meeting, we needed to raise cash because there were some drop payment benefits, some other things that needed to go out. So we raised about $375,000 of cash, and we said we were going to take it from domestic equity because that's where we were the most overweight. So that did occur about a week after our last meeting, that transaction.

But you can still see, by and large everything as of the March still very much in line with your policy ranges and bound. If we go forward to page 20 then, we'll just take a look at 3Q performance before we jump into that fast forwarding to the May. So as of the end of last quarter, you will see that quarterly performance in the first column down just slightly, like a quarter of a percentage point overall. But consistent with your overall policy benchmark, fiscal year, one year, three year, five year, you've always stayed very, very close to that policy benchmark overall. So no concerns there from a higher level portfolio standpoint.

We are a conservatively positioned portfolio, right, being more kind of fifty-fifty than sixty-forty or something else that you would see in traditional open type of plan. I will highlight something that James mentioned, The big run up we had international. If you look down at that quarterly column underneath total equity, look where domestic equity is down 4%, international equity was up 5%. That's almost a 10 percentage point gap between those. That's the first time that's happened, the biggest gap since about 2015 over almost ten years.

The last time the international has led US stocks and by such a significant degree. But even once you go out to the fiscal year period, one year, three year, five year, ten year, that disappears very, very quickly And you see that that US dominance continues to be a very strong force overall portfolio returns. Fixed income did very well. Alternative investments, but real estate continues to be positive now for a few quarters in a row. So all in all, everything's going well from a broader perspective.

Underneath the hood, active management has been mixed. On the next page, you do see value oriented names, right, have been doing well because we've been in a more value defensive oriented market. So Vanguard equity income has been outperforming overall. Your BlackRock has been outperforming. MFS has been doing Okay in line overall. But then Europe Pacific growth with some of that international disruption and kind of rotation there has continued to lag. And I know that's been a consistent theme over the past few quarters there as Europe Pacific growth. We did offset it. If you recall, toward the end of the last year, we started to hedge our bets there against Europe Pacific growth by adding in the developed index. And that has helped us out a lot within international equity.

You see there on the page, the difference in performance between your international index and Euro Pacific growth of a couple of 100 points, even in one year period, 500 points between Euro Pacific growth and the International Index. So we're keeping a close eye on Euro Pacific growth. They've recovered from periods like this in the past. They're a very well respected shop, a lot of diversification there. But it is something that if it does continue for the next couple of quarters, we might have to have a conversation about how we want to continue to see the structure of our international equity portfolio sleeve overall.

But for the time being, there's still a lot of confidence in the Euro Pacific growth team. Other than that, I did mention the core property fund was positive. And we still are getting about $40,000 a quarter in dividends paid out, not reinvested from ARA. So their dividend amount, income amount payment has remained consistent. So with that, we'll kind of go to the thinner book then and see what's happened since March June, just so you know, has essentially been flat.

Not a lot has happened in June. March was eventually sideways. So you're pretty much where you are right now as of the May. So you will see fiscal year to date on the top of page I'll go back first. We'll start on Page two, your asset allocation.

Still all within your balance and ranges, so no need for any rebalance activity at this time. We probably will need to raise some cash soon. And my recommendation actually will be to take it. I know we're getting close to the top end on domestic equity, but I would actually take it from the BlackRock multi asset income fund overall. I think while that fund has done a little bit better, it's something we're going to actually be looking at and talking about next quarter, is a review of how good multi asset income has served the portfolio overall.

And if you think back, it's been part of your portfolio for a very, very long time. But you think back to the reasons why you have a multi asset income portfolio. It's supposed to be so a fund manager has broad flexibility to essentially determine, are you going to be more equity? Are you going to be more fixed income overall? And above and beyond what we already decide from a broader asset allocation standpoint.

And what we've seen historically and this is not only BlackRock specific, but all funds that are structured this way is that while they do serve their purpose, they tend to underperform their benchmark on a pretty consistent basis. And because that benchmark then bakes into a policy benchmark, you're always having a consistent drag as a part of your portfolio against your overall policy benchmark. And in a certain sense, I'd rather if all they're going to do is invest in equities and fixed income well, I have equity in fixed income managers I'd rather have them be in the managers that we're picking already in those domestic international equity, fixed income bucket. And back on the envelope, when I actually look at what your domestic equity and your fixed income has done when I put that together and compare it to BlackRock, we've actually outperformed BlackRock over the intermediate or longer term period. So something we're going to do a deeper analysis and dive into next quarter as to maybe the efficacy of how that's been in your portfolio overall.

Is it really needed overall? So for all those reasons why and it's only half a percentage point we'll probably have to read, I say, let's start taking it from BlackRock now because we might have some other action on BlackRock coming up soon overall. So I bring that for the board's consent that if we do need to raise cash to take it from BlackRock multi asset income fund.

Do you need a

motion for that?

Yes. It would be good to have a motion for that. Just so we have authorization if Salem tells us we need to raise cash, that we have board direction to take it from BlackRock.

Chair, would entertain a motion to do as directed, take liquidate BlackRock if we need to raise any cash.

Scott, as stated.

All right.

We have a motion?

I second.

We have a second. We have a motion to second. All in favor? Aye. All right. Motion carries.

And if it's anything like we have the past couple of quarters, it will equal about 05% or so, dollars 350,000, 375,000. It's a small amount of your total portfolio. So now we can move to page five, your performance. So fiscal year to date, you're up 2.2%. You're ahead of your policy benchmark.

Again, most of that driven by fixed income outperformance and some of your other Vanguard equity income outperformance overall and then an overweight to domestic equity. As we've seen domestic equity really rebound April and into May overall, we've seen that big, big rebound in domestic equity overall. So very happy with the way the broader portfolio is performing from an absolute basis continue to stay consistent with the benchmark peers. Page six, we also see below equity income continues to be a good driver. MFS growth has been keeping more in line here more recently with some of this recovery we've seen in the market overall.

So continue to watch MFS growth. They actually also added a new portfolio manager that just started this month overall. So now instead of two managers, have three managers there. So we'll see what impact that has on maybe some positioning overall within MFS. But something our research team is keeping a very close eye on is the new third manager that was added to MFS growth.

All of your fixed income is doing well. Again, Euro Pacific growth did bounce back at least a little bit here in May, did outperform by over a percentage point or so. So we'll continue also to keep an eye on the Euro Pacific growth trajectory. But all in all, I know we'll have a deeper conversation next quarter about BlackRock. But any questions on performance or all, results holdings of the portfolio?

Going forward, it's still staying volatile. It just seems to be highs and lows and just riding the wave.

Yeah. I expect a lot of volatility until even before things started to really heat up with Iran and Israel and all these other things recently. The tariff uncertainty, just between tariffs, debt ceiling and the budget bill overall, there was enough uncertainty in that to keep us volatile, think, all the way through September. September. And there's still a lot of uncertainty around that overall.

Now you add in this geopolitical component, which I feel like it's like a summer thing. It always gets too hot there in the desert and they start going crazy. Every summer is just a different version of it, even though this year is a little more serious than the past couple summers overall. But yes, I do see a lot of volatility continuing on, at least till we get more certainty into the tariffs and into what kinds of tax cut spending is going to happen because that will then impact what the Fed does. That will impact then inflation expectations, which also will impact what the Fed does.

And because such a Fed driven market, we're not going to have a lot of clarity until then. I think summer into September, October are still going to be primed for volatility.

Moving on to Paul.

Well, it's a boring Friday, and I've got nothing that I need to report on.

It's kind

of nice.

That was very quick. Moving on to Chrissy. All

right. Well, I don't have a ton of items. Financial disclosure forms, Howard currently is the only one who has filed. So Scott and Terry and David, make sure you guys get that done. I will email you the link to do it online. I'll do it before I even leave City Hall today. Just log in, and hopefully all your information from last year is still there. And you can just click through and submit. Is it that easy, Howard?

That easy.

Okay. Does the county remember, I know it's no longer mail, but they used to send it to me in the mail. Now actually have to go out. Did you actually have to go? You had no alert, right?

Yeah. I've heard

The alert came from Chris, that's all.

The alert came from me. I thought the state would send emails, the Florida Commission on Ethics. But I think don't that they have. And so I've just been kind of checking periodically. The cutoff is July 1, but they don't start filing until September. So just when you see my email, file it, do it real quick, and then you'll be good to go.

The state did send something out. I was correct.

Oh, did? Okay.

They did. They did. I'm just

I've heard some people say they got it, and others say that they never did. So whether you get something or not, you'll get something from me today. Just click the link and log in and file. Your state annual report, that's the next thing on the agenda. That was approved without any issue on May 21. So next time we meet, the state money should be already deposited. Those amounts get published in early August, and then the checks get mailed out in mid to late August. So as soon as I have that information, I'll send you an email and let you know how much the plan is entitled to receive this year. And then the annual conference. You guys are all going. Although Howard, are you going? Or did No. Because I think we canceled your

I don't

know if

I'm doing bottles, if I'm doing diapers, or if I'm not sure.

We canceled your registration, though? Okay. I just saw your name on the list of attendees. Let's just

keep it off this. I would love to, but it's not going to

be feasible, honestly.

You're on the list. I'll just make sure that everything has been refunded. I think maybe it's like $50 the plan won't get back, but everything else, we'll make sure that you're not going. But Scott, you're good to go. Terry, David, do you guys need anything before you go?

No, ma'am.

Okay.

Were you at the host hotel, Howard? You were? Never mind then.

Are are you guys at the host hotel?

No. Oh, okay.

I went down the street, which is all good. It's not far, but it's just obviously to be able to go back and forth is a little less convenient than being there.

Yeah. It's all good. That's what

you were delinquent.

Well, you end up having to Uber

or Just

save receipts or anything. If you need to Uber or you do anything, then you need to be reimbursed for those kinds of things for the inconvenience of not being in the hotel. Just let us know. And then the other thing I put in

Yeah, you're going be there?

I'll be there. I'll be there. I might be there a little bit Monday.

Okay. Yeah. And I'll send you all my contact information so we can connect and stuff. Good. Cool.

The only other thing in your packet, it wasn't FPPTA, but I get emails from all kinds of education organizations. I did receive some stuff from NCBIRS, which is the National Conference on Public Employee Retirement Systems. And they have an alternating conference. One is a public safety conference, which I thought was going be this year. And I got excited for you guys. And it turns out that this is not the year that that conference is happening. But instead, this is very exciting, they have a financial, actuarial, legislative, and legal conference, the fall conference. Very exciting stuff. That will be in October in Fort Lauderdale. They're opening a brand new Omni, and that's where they're having it.

So if you're interested in trying something different with a different organization

That's from the Division of Retirement, right?

That's the

same Nope. This

one

is National Conference on Public Employee Retirement Systems, or NCBIRS.

Oh, NCBIRS.

So I haven't heard anything from the Division of Retirement yet, but this one is there in your packet if you want to look. I mean, it's not for a while, but they seem to have some good stuff. So just keep me posted if you ever want to attend. And that's all I have today.

I have one other question, Christy. We have, obviously, four board members when Caskey resigned that's still vacant. Just It's advertised. Right. It just stays vacant until it's filled, right?

Because it's a city appointed seat. So somebody's got to apply.

It's not

a citizen. It's the city appoint well, city appointed, which I guess has to be a citizen, right?

It just has to be one member. Or it just has to be a citizen of Of Northport. Yeah.

And Sarah, they apply online, and then counsel considers them at a certain time? Or as soon as they get one, they look at it? Once

someone applies to the position, if it's only one person, it'll go on a consent agenda. Once the commission approves it, then we'll be on the board. If it's more than one person, they'll deliberate on the Okay. I usually will be the person that applied

first. Okay. All right. Thank you. So yes, still nothing. I do keep my eye on it. And I

know you'll let me know, too. We've offered it to other board members on other boards. It's been brought up in other conversations too. I know a couple of people were thinking about it. And there is a new college student that was thinking about joining you guys.

Well, GREGORY

in the past, typically when a citizen gets on there that doesn't have any vested interest, they don't stay very long. But

we got four guys.

So just wanted to know how

it rolled.

All right. Thank you.

Was it. Okay.

Moving on to old business and discussion and actions. I do have something that was brought to my attention from the city finance. They were emailing between chief Titus regarding our percent of contributions versus actual dollar amount for the city's the cost of the city for our plan. And there was a question about I believe we changed from percent of payroll to a defined amount, correct, last year?

I'd have to look. Okay.

Can look.

I

think it's even before that. Okay.

Well, according to their calculations, there was a for twenty twenty five's budget, the city was responsible for $1,100,000 roughly. And in 2026, it was going to be $1,000,000 yes, just over $1,000,000 So the question was, are those numbers accurate that they're going to be paying less in 2026? Was there a short term do we need to make up for a short term loss there due to some actuarial problem? I can't recall. Why is the question there was why is twenty twenty five's number higher than twenty twenty six's going forward?

That is such a Doug question.

I was going to say that's a Doug I

didn't know he wasn't going to be here. I didn't know

if somebody here would know.

But he always did that, whatever the amount was when they switched the dollar. He said he would always compare it to the funding floor of 18%. And it was always going to be more

Yeah, well over that. So they just wanted the city was asking whether or not that was correct. I'll refer them to Doug. Just wanted to before I did that, I wanted to see if anybody had a reason before I sent that out.

Okay. Yeah. And I think I would just need to look at the two reports. So you're saying in the past, there was a they were using a percentage of payroll, and now they want their funding requirements expressed as a dollar amount.

What Do know if we they want both? Did through Doug probably over a year ago, I believe. A long time.

Okay. So they want the dollar amount, not the percentage of payroll?

They're asking why they're receiving one versus the other because there was a concern about whether or not we would be less solvent based off of using the different numbers. So as long as the dollar amount that they're getting is accurate, that's all they need. I just want to make sure that there's no confusion there on

the city side.

I'd

question the dollar amount because it's lower in one year than the next?

Yes. So they were worried that because in 2026, going forward, the number is dropping. It's going from 1,100,000.0 to $1,000,000 and then the percent of payroll. Because on the city side, they're still calculating that, It's going from 31% to 29%. So there was a concern that if that trend continues, then we'd be there'd be an issue. But as long as they're getting those numbers accurately from Doug, then I can't imagine it'd be a problem.

Who should I put Doug in touch with in finance? That was Irina. Oh, Irina? Okay.

Am I is that what you got from that? Right?

Okay. When, like, I always think when phosphor

Okay. Phosphor think I have her. It's Irina and

it was Kimberly. But but doesn't mean it's a bad thing.

Irina is No, I think

there was some sort of short term fall that we need to make up for

because of

the switch. There was something else that happened at the same time, and I can't recall what it was.

She's the finance director now?

I think it was because we lowered our rate of return at the same time. I think that was what might have caused it.

And that changes that big time, yeah. And that's

why I say

I think those changes might have concurrently. I just remember when we switched from a percentage, Doug had recommended doing the number. Whatever the number is would be a question to Doug of why it's high on loan. That just depends on our positive negative gain on investment. Our plan is actually diminishing as well. So that's changing, right? That's all Yeah.

Percent of payroll is going

look all kinds of awkward.

That was their question is that as it continues to do that, that their contribution would be gaining, it'd be higher, right?

If you get better investment, then no, I would think. But you're saying just because you're shortening it, it would go higher? I don't if I don't have that answer.

Yeah, think it's all dependent

on Let's

see if he's

going in Telmucher drawing. There's so many variables that

I know, like I say, Titus has grabbed me a few times, I just told him, I said, hey, that's why you have actuaries that punch numbers.

Yeah, so I just wanted to ask, like I said, while we're all here, if somebody had a clear answer on that. If not, we'll just get with the actuary and make sure that everything's solid there. But I imagine we're good. But let him check up on it.

I'll see if he's in a meeting or anything today. Oh, no. He's on vacation. We can't call him. But I will I'll let him know that this came up and put him in touch with Irina and copy you, keep you in the loop.

That'd be great.

Okay.

Thank you.

I don't think we have anything else. So the next meeting is September 19. September '19.

Yeah, my son's birthday. Okay. And you guys prefer this room, correct? Or do you prefer chambers?

This room would be great.

I like

this room. Definitely.

Yeah, the chambers seem What's

it like slapping the gavel on the desk up there? This will go.

We can get you a gavel for in here, David. I got you.

Here if you want it. This whole time?

She's been waiting to

Do you think we can use this room for the next two meetings? Is it

Yeah. If you don't want this room, I can have them switch it over from the chambers to over here.

Didn't we just we think we went to the chambers because this room wasn't available.

Yeah. Never used to go over there.

The training is up going here.

Yeah. And that we got bumped a couple of times.

I like this. I like that we can all see each other and get Paul. We can see Paul and Yeah.

Much better. Awesome.

Okay, cool.

So 02:44 next time.

Nobody arrives. We have

no public Or

do I

need to send a follow-up email to Yeah, that's

a pleasure.

About this room or you're just going

to go home?

Like 09:45.

I was hoping to go a little later so I

can change maybe lunch.

Now I can't.

I said my coverage goes to eleven.

No, I'm Rob. Gonna Don't leave me.

Oh, gosh.

All right. Did we adjourn?

I just wanted to make sure you

didn't have anything else you

were Oh, nope. Nope. Nope. Nope.

Just Meeting's adjourned.

All

right. Thank you, guys.