um I want to um welcome we have a new member to the board it's shirle FAA welcome Shirley yay thank you for your Shirley as a resident who is volunteering her time to be on our pension board so we appreciate it very very much the rest of us is kind of mandatory I'm pointed I know everybody else goes we don't want want to give it to to commissioner Williams years no would take this job I don't know why we've got great great interest here um Pam if you could do the roll call please okay Patricia drpot here Dennis Small here M Williams here Shirley here and Bill public comment you're the one and only the okay consent agenda approval of minutes we have the quarterly meeting minutes from November 16th 2023 approval of expenses we had Burgess Chambers to invoices Sterling Capital One invoice truest two invoices and one retiree Alec Robinson if if I could please get a motion to approve the consent agenda and move to approve the consent agenda and include the item that wasn't on the consent agenda to accept Alec Robinson as retiree and a second second thank you so moved old business none new business um presentation from Blake miton uh Sterling Capital our quarterly report yes good afternoon we'll be reviewing the fourth quarter um very very strong uh period for the markets for both stocks and bonds but before I get into that um let me just back up a little bit and talk about I want to share with you guys some pretty important news uh about a week and a half ago um truis Financial announced that they are selling Sterling Capital um to Guardian group uh for $70 million they anticipate that the deal should close later this this year um really excited about uh the opportunity to to get completely away from the bank recall as uh we were talking over the last couple of years as Sun Trust and BB&T merged into truest I was really excited to under the new truest to move back to the institutional Investment Management side with Sterling Capital uh which was the uh BB&T subsidiary um this is sort of one more step uh further in that direction in in kind of getting away from the the bank thinking and ideology and their control over uh how we manage money and how we take care of our clients so so to give you a little background on on Guardian they're a global institutional investment manager they've got offices in Canada United States and London um they uh have indicated that they are going to leave Sterling alone and run us as a complete uh wholly owned subsidiary so 100% of the employees the portfolio managers the Traders Ops people client service everybody that currently work for Sterling um is involved in the deal and the transaction so we're pretty excited about that too cuz we know TR could have certainly found some other partners where that may not have been the case um which has happened in some other mergers uh with Investment Management industry so uh pretty excited about that what what it really means I think for for my clients which are U mostly Florida Municipal um pension plans such as yourself is it really should be a non-event u because we went through so much time and effort to kind of update all the documentation and paperwork with the truest uh merger that really it's as simple as it's probably going to be a one-page consent of authorization transferring Investment Management Authority from truest over to Guardian we're going to work with your lawyers at Harrison and and triggerman and Tusan and Ken and his group uh to make sure that he's comfortable with all of that language but that's what we anticipate so we're really looking forward to kind of a very smooth uh smooth transition so we'll be completely separate from trist yes from on the investment management side trist will still be the custodian and the administrator for the plants just as they are today they'll still handle all the pension payments so that TR send out the pension um once you retire you'll still get your funds from your pension your dispersement every month from truest so Ben would have still had to reti correct yeah correct so skip it really should be business as usual again because we we really kind of as we updated all the documentation with the truest merger we kind of separated the administrative functions with truus the investment functions with Sterling and all the documentation says that so it should be very very Blake don't try to gloat too much over this last quarter okay it wasn't all great just 99% of it it really you know if I'm going to sit up here and take all the blame for 2022 I'm I'm sure going to gloat at least a little bit this year no I I I tease as you guys know my crystal ball is not any better than anybody else's but um just for the edification of of the new trustee again my name is Blake might and I work for Sterling Capital we manage about 2/3 of of the pension plan here for the general employees we manag specifically the US Equity piece along with the fixed income portions of the plan and then uh with the recommendations of your consultant Mr Cole and and burges Chambers and Associates you've augmented um our core allocation is what I'll call it with other outside asset classes that we don't necessarily have in-house at Sterling uh or under the old truest umbrella um so we've kind of got an outset allocation that's very very Diversified but we manage about 60% so I I'll keep my comments to basically us equities and fixed income I'm and let Larry talk about the bigger picture but really all of it was pretty good skip as you'll see here in a minute so with that let's Dive Right In over to tab two starting on I believe it's page five yes page five of the blue blue book material and here is the the market review or attribution or what I affectionately call the scorecard at the top of the table we have all of the the stock market indices starting with the indices which are the US benchmarks and then we have the msci or the international benchmarks as well and then down at the bottom we've got all of the Bloomberg fixed income um targets so um to give you an idea again just a phenomenal period for the quarter which is that second column you see the Russell 3000 or that first row under equities up a little more than 12% uh for the year that left uh the Russell 3000 just under 26% so really solid return there um unfortunately it doesn't we don't have to go too far if we go all the way back to the three-year number it drops down to about 82% which is still very solid uh but that obviously incorporates the very challenging year that was 2022 in that three-year annualized number U but good solid uh numbers out of of the US market couple of things that worth noting is um we saw a bit of what we would call a broadening out of of the rally for most of 2023 as you guys recall it was really dominated by those Magnificent Seven or those us large tech companies the other 493 or in the case of the Russell 3000 the other 2,993 companies really didn't participate nearly uh as much as those big seven did but we did see a bit of a a broadening of that during the quarter um but growth still did a little bit better as we continue down you'll see the Russell top 200 growth up about 14% for the quarter 200 value was only up 8% again good solid numbers but still leading led by growth uh a little little bit um but we did see a bit of a broadening so we saw small and midcap also participate and we can see that if we look at the Russell benchmarks whether it be the Russell 2000 the small cap benchmarks or the midcap indices um all up double digits all very solid U very strong performance to finish the year so again we we anticipate as we look at our crystal ball you know we we think we will get uh some more broadening uh of that of the rally uh we think it's going to be choppy we think the ups and downs that we've seen just this week alone are are probably pretty indicative of what we're going to see for 2024 because we're still right where we've been for the better part of the last year and a half which is we're dependent on the FED we're dependent on the interest rates we're in this wacky environment that Larry alluded to where bad news is received well and the market goes up and good news a strong jobs number and good economic numbers are bad because that means the fed's going to um uh going to keep rates unchanged for longer so we're really in kind of a very unusual environment but you we're still playing it pretty close close to to our targets and you'll see that when we look at the allocation versus our benchmarks um and not a whole lot of strong conviction one way or another we still have exposure to large growth large value but we do think large value should start to do a little bit better um and as the economy continues to broaden out and the markets start to reward some of those areas that just candidly didn't go up as much um in 2023 and look pretty cheap by comparison to some of those those large cap tech companies that are looking pretty rich uh at this point so lastly down on the bottom I I don't want to forget about fixed income CU that's a big piece of the portfolio and it was a phenomenal quarter uh as you can see the Bloomberg aggregate was up over 65% at 6.82 that erased the year-to-date deficit that we came into the quarter with so we finished 2023 with about a 5 a half% return which was pretty much in line with what we thought when we started the year thinking 4 to 6% was a pretty reasonable expectation and we got it we certainly didn't see it going down 2 or 3% for the first 9 months and then roaring back like it did but we'll certainly take that as well so really from that perspective both US stocks and fixed income had very very strong periods and you'll see that reflected in the numbers here in a minute as we kind of look into our crystal ball I I alluded to our uh what we think is going to be the most important variable which is the Fed but I didn't really get into what we think is going to transpire and it's probably uh the rates are going to stay put for a while we're not going to see that decrease Patricia I'm sorry if you can push that refi to next year that might not be the worst idea cuz at least in our opinion right now based on the current economic data that we have uh it's probably looking like uh later in the year or early next year before the FED lowers rates um again that could change obviously with economic data but um you know we're going to take Mr pallet his word he said he wants to get inflation down to that 2% number and as we all know that last little mile is always the hardest as the saying goes not that I've ever run a marathon Investments you don't want the rate to drop when you got to go out for debt you don't want those High rates so it's like I don't know what I want yeah and it's it's tough so if they do start cutting sooner than expected candidly that probably means some things are going awfully wrong in the economy um and and we may not wish that on ourselves for just a couple of interest rate decreases um so from that perspective that there's kind of the Silver Lining if you will so with that as you guys uh know and for the edification of new trustee the rest of my first section goes into a lot more detail on the various asset classes and why we think what we think and a lot of the economic variables that that we factor into our thinking I don't usually go into a lot of detail there unless there's any specific questions or comments on on any of that um usually dive right into the performance and talk about how our piece of the plan did but before I do let me just stop and open it up see if there's any questions or comments on the bigger picture or the truest sale of Sterling any of the the topics that we've T discussed so far nope okay review performance in a little more detail starting on the next tab page 19 I wish we could get the font just one or two sizes larger wouldn't hurt but first page is the the portfolio overview um we got the cash flows down at the bottom and the pie chart there you can see we're about 53 almost 54% in U in US Stocks with the remainder in fixed income and cash we started our fiscal year October 1st at a little over 18.16% million um had net contributions of 345,000 when we factor in the city's annual contribution there had income of a couple hundred, capital appreciation of a little over a million and a half so the port our piece of the portfolio stood at just over 2 20.2 million at the end of the year so good solid absolute um performance in dollar terms and then over on the next page we can put that into [Applause] percentages got the bar chart at the top but I I'll talk about the portfolio trailing returns right there in the middle uh the dark blue is us uh for the the month we were up 4.87 a little ahead of our our targeted Benchmark there which is a blend of that Russell 3000 and Bloomberg aggregate for the quarter we were slightly behind it but still up 9.4 versus 9.5 9.6 and then for the one year up 15.3 versus 15.9 so good solid outperform absolute performance for the year um we were slightly below the Benchmark but I will gladly take a 9o 4% return When the Market's up 9 and a half so um and then obviously since we've transitioned over to Sterling you can see that factors in a lot of 2022 and that that good strong 2023 number goes down to about 2 and a half% but uh still about 3/4% ahead of our Target there looking at the various pieces of the the puzzle at least for the quarter equity's actually slightly outperformed it was the bond piece of the portfolio um that did a little bit worse but again 6.6% when the bond Market's up 6.8 and a quarter um again we came into the quarter of being a little conservative and that's kind of reflected in that very slightly less than Benchmark performance there for that time period really the rest of my book goes into a lot more detail on the various uh aspects of the portfolio um I'll just touch on a couple because I know we're just 60% of the plan and Larry Larry's report will cover all of it but over on page 21 we got some of what I call the geeky financial statistics uh we can see how much uh risk we're taken to get that return up there at the top under the risk measurements the two that we followed most closely are standard deviation and beta those were just measures of volatility make sure we're not taking too much risk and you can see both of those are slightly less than the index which is meaning we take a little less risk than than the Benchmark and then the other two that are most important in my mind are uh out towards the the right hand side the up capture and down capture that'll give us an idea of how we do when the Market's up 1% we we expect to be up 099 and vice versa if the Market's down 1% uh we only capture about 90 6% of the downside so those are kind of the numbers we like to see don't want to put too much emphasis on those numbers cuz it's only been a year and a half or so since we transitioned so those will be a lot more meaningful when we have a full Market cycle to to to gauge Us by over on page 22 is the allocation again nothing are shattering here real close to our targets um our our investment policy Target is about 52% in stocks and 48% in bonds and you can see we're about 53 54 um and that's really just more of a function of stocks doing so good this quarter um we probably a lot closer to our targets as we sit here today cuz we usually trim the first couple of weeks of every quarter to get back in line and then the rest of this section goes into great detail on each and every asset class and how they did relative to their benchmarks you know again the sum of it all is we were up about 9 9.4 when the market was up 9.5 so um good solid performance from most of the funds no issues or concerns with any of the the products or asset categories in our opinion and then I'm going to finish up on the very first page of the appendix this is what I call Skip's favorite chart because he wants to know how we did over a long period of time not just how we've done since Sterling got here so what we tried to do was take the historical returns under truist and sunrust Link those to the Sterling returns over the last year and a half or so to give you a picture of how your plan is done over the last three years 5 years 10 years in those longer terms and as you can see um again for the 357 and 10 all well above the Benchmark um and then the Inception uh is a little bit skewed cuz we've changed allocations so many times over the years I don't I'm not sure that number is all that relevant anymore but um so again guys in in conclusion really solid period great start to our fiscal year um probably knockwood I was looking today um not including today's pretty strong markets our piece of the portfolio is probably up another percent or so uh so that 95% fiscal year return for 3 months is probably closer a 10 and 1/2 as we sit here Midway through February um so we certainly need to get all the way to September 30th but um we're certainly off to a very very good start for fiscal uh 24 so with that I'm going to shut up and stop talking you guys look like you're about to fall asleep on me but I get that too I get that all the time me no no no I'm teasing any any questions comments thoughts now when the num it looks great you know you're into the a little not into it yet but I mean had a few more days to wrap yourself around the uh ownership change but is there still absolutely no indication of any Personnel changes on the investment side correct every team stays the same absolutely 100% no no announced folks skipping moving anything and we don't anticipate it well and it's the asset allocation group because you guys do have investment Advisory Group and Raleigh is all completely 100% intact okay we actually had a call yesterday morning okay and it was business as usual we just talked about you know the February updates based on the January 30th numbers we get together every month and you know kind of set our asset allocation there's a team in Raleigh that that helps us with all the variables um and overweighting and underweighting various aspects of the asset classes um really no change uh this month was kind of status quo well as always guys thank you very much thank you you right next is uh Larry Mr Larry Cole from Burgess Chambers uh with the quarterly report all righty thanks well hello again good afternoon um again for the newer trustees uh our our role is yeah it's the white book doesn't look quite like this looks like that yeah this one should uh this is Burgess Chambers and Associates you'll hear me referred to as BCA also um we're the investment consultant we don't actually manage the money but we make recommendations to you on how this money should be managed and what managers should do it so um U Sterling has as as Blake mentioned has about 60% of the assets at one time years ago I think they had 100% when it was Sun Trust Sun Bank Capital Management so it's kind of evolved over the years they've sold investment arms and bought one sold one sold them out and I think we kid Blake he's he's worked for the same group now for 20 years or something and he's had 16 business cards or something you know they change names so often but you know he's still working for the same group so um the As Time evolved a lot of the asset classes we wanted to diversify the portfolio more into different asset classes and they didn't have them under their under their umbrella at at SunBank or all the firms that he's worked with in the past so recently recently last few years ago they kind of opened up they've got a whole different group in U I guess in Raleigh that does uh they will actually go outside of the Sterling umbrella to pick funds for some of the portion of the portfolio so we allowed at that time the board allowed them to keep the money keep managing that portion of the assets 60% of the assets and so you'll notice there's lots of different names in there but they're all kind of manage under the Sterling umbrella but outside of that the international piece the convertibles the real estate um the uh what we call infrastructure which is they're domestic stocks but they're focused on uh government infrastructure spending um I guess those are the four areas that that we that aren't under their umbrella we monitor the entire portfolio if they start struggling we don't like their numbers something goes on at the firm it's why I asked the question I ask we'll keep a close ey on that on your behalf that if there's turnover at the firm as a result of this ownership change you know ownership change raises flags all the time this one I think is a positive it actually takes the Sterling group out from under A bank's umbrella and they become a they're an investment firm and they'll uh Guardian owns a couple other firms that one of them I'm familiar with and they have left those people alone in other words they let them run their shop where they can benefit sometimes where the investment management firm benefits is through the uh in the back room they may be able to consolidate some things in the in the operating side administrative side or even the compliance side that could benefit the firm as a whole but uh usually leave the investment management teams intact and so you don't have any change in the in the way they manage the money so we'll keep an eye on that for you too and we would be the ones to make recommendations if we want to change managers we' got a manager in the lineup that just isn't doing very well we make that recommendation question yeah bill so I've always been a little confused he manages 60% who handles the money for the other 40% that I make recommendations to the board in in reality the board manages I mean the board has the say on everybody including Blake so I kind of look at at Blake and his firm as one manager out of maybe what we got six or so in in this portfolio now his one within that umbrella has 12 or something different funds that they put it in but we're holding them accountable for that portion of the money we hold each of the individual funds and managers accountable for that other 40% so I'm monitoring that constantly and I make recommendations for when we change so they are investing and handling the other 40% they have the they don't manage the like if you go that's good I'll just skip around bit I'm sorry no no that's a good question if you go to um go to page 12 of my report and it's not a concern able to understand it it is confusing and it is a different setup than we have I think I have this set up maybe in only two other plans that I work with so uh usually we have 13 or 14 managers uh in a pension fund um this one because of its history and how it kind of evolved where SunBank was managing 100% of the assets then they they stayed involved the whole time no matter what their new name was and St involved and as we Diversified more you know they were doing a good job so then they developed their own in-house capabilities to to evaluate outside funds so when you go through this you'll only see two products in here with Sterling's name attached to it or yes with Sterling's name attached to it even though he's Sterling that's the Sterling Equity income fund and the Sterling fixed income fund well Sterling actually Sterling actually manages that those funds they they are literally in there buying the stocks and the bonds bonds for those funds right the other funds Lumis sales Vanguard Federated hotus and Wy Touchstone Touchstone uh and the uh uh Russell midcap ey shares those are all managed by Sterling but a different group that looks at funds outside they're not actually picking the stocks for the Luma sales Luma sales picks those stocks and they're just evaluating the funds and deciding whether they want to put that Fund in their lineup so and then the ones that aren't under their umbrella would be and you don't have any way of knowing this by this report but it would be the convertible bond fund the I shares convertible Bond Cen and steers the Lazard Global infrastructure the American funds europacific and then the two real estate products the Schwab Reit and the predex fund those are two real estate products those are all products I've recommended to you over time to to diversify the portfolio more and you know if they had if they had at the time access to those maybe we would just let them do it but we do this all the time we have our lineup that we like you know that we recommend we're constantly we interview we being BCA we interview probably 100 managers a year when we're not out doing this we're doing a lot of due diligence on investment management firms we talk to a lot of them that we quite frankly a lot of them we'll never talk to again but you know we learn something usually in a half hour hour discussion and it might be that we never want to talk to him again but at least we learned something right um so we're doing the due diligence constantly on these asset classes too we familiar with some of these funds that they put in there too actually all of them to be honest with you we've used them in certain places also so it's a little bit of an overlap here it's a little different like I said than most plans we work with but as long as uh Blake and his group do continue to do a good job we'll you know we won't rattle the cage I think what Bill's asking is does somebody from Burgess Chambers decide what that lineup is going to be not the one that's under their um no the other 40 the other yes that's us that that's what he was asking I'm sorry long answer to a very short no no that was very helpful it's okay yeah we're the ones making the recommendations on on on your total lineup actually and the managers he's talking about are the ones that work for that fund yeah thank you much better explanation yeah so back to the report um so our report is covering the total portfolio so this is how the overall pendant fund up on page two the top of that page that's the uh that's just the various market indices and that's telling us how stocks did various stocks various bond funds or Bond indices how the stock and bond market do basically and you can see everything was up for the quarter the S&P 500 Index that's large cap stocks large large companies the Russell 2000 that's small cap companies smaller companies the E index that's International merging markets that's you know the developing Market kind of countries um Emerging Markets as it says you know they're smaller countries um and then you get into some Bond R so anyway that's just an over that's not plan specific that's just an overall look at the market for last quarter how it well it was hard not to make money last quarter everywhere made money bond funds were even up now remember bonds if you're already holding a bond and interest rates go down the value of the bond goes up so that's how you can see some pretty nice returns in bonds when rates go down which they did a little bit last quarter um this was the exct flip of last quarter's chart by the way if you looked at last quarters this chart was just the opposite everything was down except for Commodities and they were up so what happened in the quarter right in the mid quarter uh just to remind you if you did follow it that uh the CPI the inflation numbers came out lower than expected like 3.1 3.2% it got the market all excited that the Federal Reserve now would stop raising interest rates and would indeed start lowering interest rates because uh inflation was under control um I I said at the last meeting here I thought that was a little premature because the reason the the inflation number came down the CPI came down was uh Energy's included in that and gas prices came down quite a bit in the fourth quarter that didn't make any sense to me either because there was a war broke out in the midd East with with a good chance it was going to expand and and that's not an environment that usually you see oil prices come down they go up but they didn't it went down so I thought that was temporary anyway that that we might the core inflation which takes out food and energy was still at 4% back then so that was nowhere near the fed's target of two so I thought it might be temporary it turned out it was uh the numbers that came in just this week kind of spooked the market because it said hey inflation isn't under isn't done they're not done yet with inflation and the the hope that they would start lowering rates aggressively and 2024 went away so there's not that's not going to happen until probably later in the year and so the markets don't like that they want rates to come down so that's what's kind of spooked this the equity markets here lately uh the next page is the bond market on the top that shows everything was up and then the international on the bottom of that page everything was up so it's a good quarter um we do a um a policy review compliance page we this is all again for the new trustees you have an investment policy statement all of this is in that investment policy statement what we do is just kind of provide do a summary every quarter uh if there's any compliance issues we'll tell you um and and we'll we'll try we'll have to fix them if it's compliance related if it's just performance related that doesn't necessarily mean you firey that fund immediately we're evaluating those we understand what what why sometimes they underperform short periods of time and may say just stay patient so um so that's what that page is all about now on page six is a summary of performance this is net of investment manag management fees so this is after fees so you can see for the quarter we started off with a market value of 29 million2 uh the net contrib these are net contributions so this is money that came into the pension fund less money that went out of the pension fund for benefits fees or whatever so it was positive cash flow this quarter of 32,39 I believe that reflects the city's contribution that came in for the year that so we had a positive quarter we usually don't have have a positive year there's more money going out than coming in usually unless we have great earnings well and we do have enough earnings to offset it as you can see then the gain for the quarter was 2.6 million it was a great quarter uh and then the ending market value was up to 32.2 million the total fund returned 99.1% net of fees for the quarter and obviously that's a great quarter yeah SK for the edification of the newer members back on page five up in the green in the top there know like the second line or the fourth line you see that the actal Assumption rates 7.25% that means year over year trying to average 7.25 to keep the plan healthy when I came on 16 years ago it was 8% and we were sketchy hitting 8% and I I just continued to has to bring that down so that we have a better opportunity to meet that goal and not get in a position where we can't pay our retirees and now we got to raise you know property taxes and revenue sources against the residents Coco Beach just to pay the defined benefit pension plan so by bringing that Dumber down it actually um cost the city some money on a yearly basis but we won't end up in a big pinch in the downstream yes less of a chance you'll have a big surprise yeah yeah that's good point uh you have the actuary is actually here today and he'll be giving his report but you know an actuary makes a lot of assumptions you know payroll increase all this they make all the calculations to decide how much the city needs to put in to keep this plan healthy and or funded I guess is a better word and one of the biggest assumptions in there biggest impact assumptions is the earnings assumption rate so you know we are assuming this plan over the long term is going to make 7 and a qu% and we recommend the asset allocation to you based on that assumption rate you know this is what we think is the best asset allocation and then within that we'll suggest the managers to fill the slots of the asset allocation so this much in stocks this much in bonds this much in real estate you know this much in Alternatives whatever and then we'll recommend the manager ERS to fill those slots to you so that's that's a driving Factor you know if that was 8% we'd have to get much more aggressive you'd have less in bonds right now we have about 30% in bonds and so you know it's it's back in the day back in the day 20 years ago maybe you could have 60% stocks and 40% in bonds and expect to make 8% that hadn't happened since interest rates went down to zero so you had to get a little bit more aggressive and and a little bit more in stocks or other convertibles and some other asset classes um so again on page six if you go across the page then you can see the five years you can see how much the net payouts were about 4.5 million but the plan did earn over 12 million so even on a 5year basis this plan net of investment management fees is earned 8.8% the Assumption rate is 7 and a qu that's a good thing that's a nice spread um so that should actually lower you know if you if you do better than the than the Assumption rate if no other variables are off that should low help help the city's funding costs come down a little bit uh your asset allocation is on page seven that's a very complicated we got too much detail really on there I'll just summarize this for you there's about 40% in stocks domestic stocks about 10% in convertible bonds and which are bonds that are convertible into common stock they're a little less volatile than stocks 13.7% in international stocks we got a little over 4% in real estate which is combined of a direct real estate commercial uh investment and a um or fund a direct fund investment in commercial real estate and also what we call REITs which are really stocks that are related to real estate and then about 30 a little over 30% in stocks in a bonds and cash or bonds and money market fund so uh I'm not recommending any re this would be there are times when I come in and recommend rebalancing that we if we get a little out of whack with the long-term Target I'm not recommending any rebalancing here uh it does look like we have a lot more in in uh in midcap but uh when you add the two together small and midcap that's a 10% Target we're at about 14 but right now the valuations in small and midcap stocks are extremely attractive relative their historical valuations relative to large cap companies so small and midcap companies are very very cheap right now why is there Target allocation in large cap core Equity zero we don't really have a core we have it broken out uh between uh value and growth see the 12 and A2 and 12 A2 this is I need to change this chart actually CU we didn't break it down that much in the investment policy this is just trying to give you more information but darn those darn computer programs this chart just I just need to refresh it because it's not we don't need to get that detailed you really just want to know what have I got in stocks what have I got in bonds what have I got in real estate um and then another breakdown right below that no no reason to go there page nine just you can kind of look back at the history of how the allocation's gone we haven't made any major changes but we' shifted a few things around and uh here and there the market does a lot of it too now the next page page 10 this is gets into your actual returns these are gross of fees you can see the total fund did 99.2% for the quarter had a wonderful calendar year 14.6 that strategic model is kind of The Benchmark again that's all spelled out in the investment policy statement um the three-year number then includes 2022 which was one of the worst years I've ever I've been doing this for 40 years and is the worst year I've been involved in uh not only were stocks hammered in 2022 but Bonds were down 14% because of the rise in rate when the FED rais rates 11 times in 18 months market value of bonds goes down so the actual Bond returns were record lows never had a minus 14% year so that was a bad year that's included in that threee that's why that number is so low uh 4 years 6.4 but even with the worst year I can remember the 5-year number is still 99.3% per year gross of fees so it's done pretty well and then this is just a breakdown all this of the different asset classes that you are in and how each of those have done relative to their specific uh benchmarks and and that's one of the tools we use to evaluate how uh Sterling's doing and and how the other managers are all doing all your funds are broken out on the next page on page 12 which I already referred you to and you can see how they've all done on an absolute basis again a great year uh and a great quarter um where's the combined risk chart well let's go to I'll get there this is p go to page 14 first this one you usually like to look at too skip that's this the blue line is the market value of the assets dating back to um December of 2018 in this chart the green line is the net cash flow so you see the green Line's kind of tapering down meaning more money is going out than coming in the blue line is the market value each quarter so this is these are quarterly plot points so this shows Market volatility right so at one time we were actually up over 36 million in 2021 in the plan and then you see what happened to 2022 we we lost a lot of money in about 18mon period there the plan got hit there was just nowhere to hide everything went down but then it's coming back pretty nice and as you can see we're up to uh what 30 was 32 32 a little over 32 million almost 33 million and we're probably over 33 million as we sit here today it's gone up just a little bit more um so heading back up north after a disastrous 2022 page 15 is this the chart you're referring to skip oh yeah fli I was slipping through there and that's the one I was looking not the I saw the individual ones I missed that one so uh I usually don't spend a lot of time yeah but for the new yeah for the new trustees what this does is tell us um it's a risk reward chart so the 5-year risk reward the triangle is The Benchmark again that's the mo the that's spelled out in your investment policy this is what we're trying to match or beat and the blue circle is actually your portfolio so your total fund has done slightly better than the model if you look over to the right there on the top your return has been 9.26 your uh the target if we by itself was 8.87 so a little bit better we'd have been happy just to match it but that's good we beat it and then the standard deviation is a measurement of the risk now we did have a little bit more volatility than the Benchmark but we got rewarded a little bit for it with a little bit higher return we'd rather be the ideal spot everybody's goal is to be in that top left quadrant that would mean less volatility and higher return hard to get there that's what we shoot for so we'd like to see that blue dot move over there but if it's going to be to the right we'd like to see a little bit more return we did get a little bit more return now the threeyear does do look as good we got a little less return and a little less again that's 2022 it just blew a lot of Statistics out of the water so I'm not too worried about that that's a shortterm aberration I think and we're we're moving back in the right direction you saw the one year return was excellent uh another nice chart you might like is page 16 that's going back to 2005 looking at your fiscal year returns your fiscal year ends on uh September 30 so it's not a calendar year it's a fiscal year and these are your your fiscal year returns again you have a 7.25% uh assumption rate that the actuary is using I think you're going to earn on average 7.2 uh you've pretty much done that uh Doug will probably have longer term numbers but I think you're above that on the longterm periods uh even our 5-year number is above that despite a minus 18% year in 2022 so you can see everything's fairly well we did back in the financial crisis of 2008 2009 you know that was a rough per period Then things are pretty smooth and then you get to 21 and 22 and again I've been doing this 40 years never seen it that kind of volatility we got from a 21.6% positive return to a minus 18% negative return and you know that didn't end Investments 101 when I was in college so you you just got to wave your way you got to kind of put the noise aside and still focus on the longterm in periods like that and you come back well you had a great fiscal year last year of 11 up nine already for the quarter we're probably up up 10 as we sit here today A little over you know whether we hold on to that through September who who knows who knows but um that just shows you the kind of volatility we've been in and then there's a lot of charts at the end here that I'm not I don't usually cover with you we use a lot of this information to determine uh if changes need to be made you can see uh there just a lot of data here on risk and reward upside Market capture like when the market goes up how does this fund do or how does this category do in your portfolio versus the market if it goes down does it protect well and down markets we look at all that stuff when we're trying to evaluate whether we need to switch managers or make changes so there's there's one of those charts for every asset class you're in and um I think with that I'm done so you have uh you'll have this book every quarter from us which again is the whole plan as a new trustee if you have any question questions I want to give me a call patri has my number please feel free to call me um just you can't have another trustee in the room under the sunshine laws if you make a call it's just one-on-one we can talk about anything but if you have any other trustees in there we we're kind of limited to what we can discuss so with that skip did you bet a money on the Super Bowl I actually did not your money though you did I did 5 minutes before I was with my my daughters and their son-in-laws and my son both sons-in-laws son-in-laws um right about 10 minutes before the Super Bowl they told me I said well I'd like to make a bet but DraftKings won't let you bet in Florida they said oh you can go to Hard Rock Hard Rock bet bet hard rock or something there's an app Hard Rock so right before Super Bowl I'm opening this app up and I put some money on the Chiefs and I won What About You Blake it it paid even because my kid had me do the same thing and I put 50 on the Chiefs and it straight up that's exactly what I did I put 50 on the Chiefs the money line was even okay well I put 50 on the Chiefs I put them to with the spread and without the spread and then yeah let me get you my point so Doug did you bet on the Super Bowl I'm from Michigan so no my Lion's almost made it okay all right what do you ask so okay why do we ask I I ask because on the day well the night of and the day after the election where do you think the mark where would you bet the market will go if Biden wins and where would you bet the market will go if Trump wins cuz that's going to be it'll be after our fiscal year which is the good thing say vetting is an appropriate term there because it really is a crapshoot there's no statistical evidence and we've had this conversation I know I've had it view but for the edification of everybody else there's no statistical significance on a democrat in power winning Republican winning any of that the only statistical evidence that shows any kind of correlation to market performance is if all three houses line under one party and it doesn't matter whether it's Republican or Democrat if you have the house Congress and the president all being one party and the logic goes that they'll have an easier time getting their agenda pushed through so it's a little more predictable outcome because you can tell all right you know Republicans are pro energy maybe I'll buy some energy stocks right it should be a good environment for that the Republicans carried all three houses but there's honestly there's nothing that says the Democrat does this the market does this or vice verse of the Republic I was asking I didn't ask about the statistical evidence I'm saying if if you were going to bet which way the mar would go on either it's just that it's sort of you know throwing a dart at the board but I bet the most participants would be looking for a change in the overal office okay that's what my $25 thank you Larry um next is the uh Actuarial evaluation report presented by Mr Doug loen from Foster and Foster mine I'll come a little closer and yeah have a seat here my report is on the iPads and I know they went blank so if you quickly tap the button at the bottom and then hit it again once the screen comes on you'll see a touchpad and the the password is 436 022 Trisha has paper I I also kept mind good else good nice to see everybody and I I made my introductions to two new trustees here my I'm the actuary I'm with Foster and Foster so among other things that we do for the uh for the trust fund we work for the pension board by the way we we do work on behalf of the trust fund but we were hired by the pension board we do this big report every year it's called the valuation the pension valuation but we also do the benefit calculations for the members if the city is in negotiations and they want to see say say some benefit improvements or benefit changes for the pension plan we run those numbers um and we do also the uh the governmental accounting schedules gby uh for and that goes to Patricia and sends it along to the auditor Yeah question skip or no okay so I just wanted to get you an idea of what my job is as the actuary the big picture of what an actuary does is we put dollar values on risk so the actuaries work not just for pension plans but they're out there doing other things in the world um like when you get your insurance premiums and that'd be any type of insurance you know auto insurance Hazard insurance for the house uh flood insurance life insurance it's actuaries who look out into the future for many years out and try to anticipate what events might happen and put dollar values on them and then figure out okay well if if the person who wants to buy the insurance um wants to pay a premium uh what are we going to tell them how much is the premium that's what an actuary does is we calculate those kinds of numbers it's really a combination of Finance Theory and probability so for a pension plan our job is to give you a report every year that once approved the city has an adjusted contribution requirement for the pension plan we will change the requirement every year a little bit ideally a little bit either up or down to tweak the contribution requirement so that as members terminate U throughout any point in their career and are either do a benefit or do a refund of their own contributions we're telling the city exactly how much should go into the pension plan to be invested with Larry's input with Larry's advice and how it should be invested so that when the when the bill comes due for those benefits the money is there in the trust fund that's our job is to keep it actuly sound so this is the big report we do every year here and because we have uh a couple of new trustees I'll go into a little bit more detail than than I do in a normal year just to kind of like actu 101 to show you in kind of a big picture of how we do this um yeah go ahead skip so we can like he could say we need to go from 7.25 to 7.5 based on what he's thinking okay and that's what we would normally do if he says go down we go down but we can say we want to lower to seven that's when the hair on Patricia's neck stands up because then all of a sudden to keep from talking to Doug in the Actuarial they're saying well if you're going to go to seven then the city needs to put in this much more money every year to still meet your targets okay what what he's going to tell us is where we're at now based on how he feels that the city should be contributing out of the out of the funds that come into the city to keep the program home is that a good so each employee pays 5% of their income into the pension program and so Doug is going to look at how much of those contrib go in how much is the program earning an interest and how much is it going to need to spend between now and what a 100 years from now and what's the Delta and that's where he comes up with that Delta is what we have to contribute as a city to make that kind of make that Gap to get the fund 100% funded and there's other factors that go into it um and correct me if I'm wrong Doug right now we're not 100% funded it's because it's looking at all of that loss that we took on interest earnings in fiscal year 22 because there's a fiveyear rolling smooth yes so we've got another couple years before that huge loss from 22 falls off so we still look like we're in a bad position but but in another 3 years that will change again so let me a very good comments thank you TR I appreciate that let me let me get into I when I had you fire up the iPads there's a normal page I start on I'm going to start on a different page if you can get to different pages of the PDF by swiping right and go to it shows page nine at the lower right and at the top it it shows comparative summary of principal valuation results so this this starts real high level and then I'll get down in a few more details and I promise I'm going to try and make this short and not overwhelm you with details because learning this stuff is a it's a big curve actuaries we have to study this stuff when we're young and able to devote all of our time in the world to it without families and so on it takes takes about 5 to 10 years of going through exams to understand this stuff so look at the very bottom um under the word total on this page and the leftand column you see that 4,962 th000 that is the actuary's opinion of how much you would need to invest today as a lump sum we we'll round it off call it 41 million assuming that wherever you invest it you can get EX perfectly 7.25% invest return in the future if you could do that in in theory every future check that would ever be cashed from the pension plan would be covered so initially when you put in that $41 million in the first year while you're expecting to get that 7.25% return some people are going to come knocking and say give me my pension benefit those people are going to be the retirees first of all and if you look under item um a towards the top annual rate of payments you can see those are benefit payments um in in payment status service retirees beneficiaries and disability and that's about um we'll call it $2 million a year roughly so right away out of that that 41 million that you would invest 2 million's coming out every year but then we're we're turning right back around and we're getting 7.25% interest on that 41 million and so it grows so in that case what's happening is the ass is what you invested is actually growing faster than the benefit payments going out but over time new people will be retiring and coming to get paid their check and other people will be leaving and taking a refund and the whole time those assets are growing but you have more and more people coming in and drawing down on it until eventually the last person to ever cash the check in theory would be the exact amount left of that 441 $41 million that's growing all of those years at 7.25% interest yes sir so pardon the ignorance you say invest 40 40 million today y we're investing about 30 right now yes the total plan value yep 32 that's what you have taking away cash or whatever but yep okay just to wrap my head around it okay I got it so that's why you have a contribution requirement that's a perfect segue we need 41 million to pay every future check but if you look under Item B I know you see two different asset values there one says 28.9 million and the other sh is 31.5 for the purpose I'm covering here we use the actual roial value that's a 4-year average that's a 4year smoothing we're using that 31.5 so that tells me just do simple math we need uh about $9 million there a $9 million deficiency there right well that's that's perfectly fine because that 41 million I said is for every future check there's still people who were hired by the city in the last couple of years have a long waste of retirement so we don't need all $41 million today so that's why I tell the city they need to put in something every year to be invested because we have 31 million in eventually we're going to need that 41 million plus so we need these extra contributions every year to be invested at 7 and a qu to pay for those future checks that are coming due you don't want to be 100% at any given time that's like telling newlyweds you know in their 20s you need to pay the house all at once you know you're 25 you need to be 100% invested in your house like well that's great but you don't need to that usually take out a 15 to a 30-year loan right that's how we fund the pension plan is we fund it really it's a little more conservative than that it's about 15 years on a between 12 and 15 years that we try to fund this deficiency so um with that let me have you swipe over to page 12 and let me show you the fact that okay we need 41 million to pay for every future check and we've got 30 some million in the bank Mr actuary what do you tell the city they actually need to come up with every year to fund that deficiency over that 12 to 15 years and this is the breakdown page so if you look in the left hand column under uh at the top pension cost the first number you see is normal cost 11.09 percent that's a percent of payroll by the way that is the amount that actuar we've calculated based on the the average age and the average past service and the average salary for every member in the plan we actually look at every single active employee in the plan and look at their age pass service and salary and the benefits the city has agreed by ordinance to pay for pension and we calculate you need 11.09% of payroll going into the pension plan total to be invested to 7 and a quarter and that will cover future retirees going into payment status this a good point to tell them 7 and A4 plus the 5% contribution brings you up closer to that 11 uh well it's 11 Allin um there is a reimbursement under there a small number administrative expense 67% of payroll that's just a that's a reimbursement every year they paying the actuary you're paying the attorney paying the investment consultant added up its 67% of payroll but just think of it purely as what is the cost kind of Miss what I said if you look at your expected member contribution then you look the expected City contribution that's bigger than your your projected annual 11.9% it is and and that's a good thing yeah I'm going to get to that exact point shortly where it comes in um in in a perfect world let's say you had no debt no past service you have no unfunded liability and you have no administrative expense what is what do you need to put in every year to fund for people that are Marching through their career towards retirement they're going to get a pension we need that 11% of payroll to go in every year the members put in five so in theory that would leave the city at 6% of payroll in a perfect world you have no past debt and you have no administrative expense members put in five City puts in six so the question is well Doug you're showing expected City 11.59% a payroll that is mostly due to the unfunded liability payment that's think of that as your debt your mortgage payment for the house so if you go up just a couple of rows you see that 4.83 we are part of the city's contribution requirement is 4.83% of payroll for the unfunded liability payment those those are things that have happened in the past either with benefit changes or you fell short on your assumptions let's say in years when you didn't get your seven and a quarter like like Patricia said a few minutes ago in fiscal 22 you fell every plan fell short of the seven and a quarter by a lot it was a negative return we're phasing that in over four years um also the last two years the city did something thing that I I've seen every city without exception do around the in Florida they gave big salary increases we expect pay increases of about 5% a year and the last two years here it's been double digits there there's a bidding war going on in Florida municipalities are trying to get Workers for General employees police and fire and with inflation and with with the cost of housing going up you know think about the rule of thumb what how what percentage of your income should be a mortgage payment it's 25 to 30% right well in most places in Florida it's going to be hard to find a house for Less Than 3 or 400,000 so what does that what does that mean you need to you need to make about 100 Grand and governmental salaries were not at 100 Grand a few years ago they're getting there if if it didn't happen then governments would not be able to hire people they wouldn't be going doing something else so that's why I see bigger than expected salary increases the last two years here as I've seen everywhere else that has a part to do with why the unfunded liability payments almost 5% of payroll is these are things we didn't expect to happen we didn't expect a negative return on investments in fiscal 22 and we didn't expect double digit salary increases the last two years that's why the City's requirements gone up a bit that's why the city's requirement is not in that perfect world of 6% of payroll it's that 11 plus right now we have to pay down things that have happened in the past that we didn't expect so where we go from here part of what I do is the actuary is that okay I'm asking you to improve this today this report and when you do Patricia has a new contribution requirement if you look in this page you would be approving a 7.59% of payroll for fiscal 2425 and last year was 9.19 that's the true up that's why you have to go through and see the actuary every year I need to give you this true up number and I will tell you that when I'm if we could roll forward get in a time machine and come back one year from now when that 11.59 goes to the right hand column and I'm going to give you a new number it's probably going to be higher because fiscal 22 investment loss is still phasing in now we we do have investment gains we had an investment gain in 23 and we had a nice investment gain in 21 but 22 was a bad year when you factor them all in it's going to be below your seven and a quarter your four-year average is going to be below for a few more years eventually we'll get through it but before then and this will be for Patricia my guess is that 11 point 59 is probably going to get in the 14% of payroll range that's my best guess today next year now here's where I'll caveat it a bit that's given the way payroll is today to the extent that the city is growing and hiring new people coming in the cost of a new employee is 6% a payroll because they don't come in with any past service I showed you that 4.83% of payroll for the unfunded liability the more that you can grow the more that you can hire people to come into the city you're you're going to help the pension plan their 5% contribution is going to help pay down the unfunded liability faster this is where you've heard in general like with with discussions on the economy with Social Security growth is good you've heard Elon Musk says he said I'm doing my part to help the country I have what nine or 11 kids I think he says growth you want you need more people you need more people at the bottom in society or in a pension plan to to be there to take the place of those who leave at the top and draw down and draw pension growth will be good because a new hire to the city is 6% of payroll Patricia will be funding the 11.59 in this next year there's no doubt and when new people come in she's going to be applying that 11.59 but I'm telling you actual that person's only a 6% and so what will happen is I will come back the next year and show that the city's contribution is beginning to stabilize because of that growth so I don't know if you're planning and hiring new people um my guess is maybe but mostly attrition okay well I just wanted to bring it up we don't really have any current discussion for adding any FTE I see that happening it's pretty stable here it's 135 134 matter of fact we've actually been doing a little bit of reduction okay in Staffing um I mean like rock ledge they were so behind in salaries this year the average was between 4 and 42% increase in wages and Rock Ledge did nine they're so behind us they're having a hard time H are you guys did um 13 and a half in 22 and 14.8 in 23 I mean that's my calculation I know you have a slightly well different number in mine but it's because you're looking in the aggregate but just in terms of Citywide all employees affected it was 4 and a half but you're looking at how much the total wages have increased well did you do steps as well so everybody gets a cola plus a step no she did 2 and A2 well what was it last year for 23 4 and A2 I think last year I thought it was but it was over it was she still stepped it so there was there was one at like two or 2 and a half and then the other was um she did the same thing for fiscal year 24 she did a 2 and 1 12% in January 2 and a half 2% in I think it's May so it's 45% total for the year but that's not how you look at it it's just the increase percentage wise between total wages paid and total wages paid so it's not a Citywide what what is everybody getting across the board it takes into account everything yep okay so I think I'm hitting my limit for keeping you focused because I understand I've done this for many years and then before that I had to take a lot of math in college so I'm not going to get you down in the weeds where I'm at any more than I have I I hopefully gave you some insight into what I do every year and when you approve this report kind of a general sense of what you're approving and that it makes sense and why you need to see me every year because I have to refine this we are we are projecting everything into the future until every last check is cashed as I mentioned using assumptions I'm using the seven and a quarter for investment we're not going to change that every year we're not going to say oh last year you did well so we're going to increase it and the next year you did worse so we're going to decrease it we we lock it in we lock in salary increase we assume five because longterm that's about right we understand there's going to be times when the city needs to give more we have life expectancy assumption mortality all of these assumptions are built in so we come back every year and measure what happened compared to all of those assumptions and then we do this fine-tuning every 5 years uh I'll come back and say that we need to do a bigger study on the invest on all the assumptions the last time we did that was in 21 so we don't need to do that again for another two years or so so are you saying that you're saying next year it's probably going to be 14 it's getting there I don't think it'll be there next year in two to three years I think it'll be there but are you saying that if the employee puts in five the city needs to put in nine um no I mean 14 from the the members will always stay at five I'm meaning the city will go the city will go from 11 plus right now to roughly 14 right but the 5% is off of the 14 you take off at the 14 right no so they put in 14 okay yes but but in in 3 years from now we should see that number starting to decrease three years three years the the biggest I'm going to call call it a spike here because we're using a fouryear average is it five I I think it's five yeah let me let me double most I use are four some are five let me just double check Patricia said five earlier that's I think I think we're fine uh it's four here four yeah okay well then we should two years from now we should see starting to go down cuz we've already got two years of good return actually in in 2 years you're going to see a a spike and then in 3 years you'll see it go back down and let me tell you why fiscal 21 was a really good year you got 21% investment return and one year later you got a19 that's a four 40% swing in one year's time a positive 21 compared to a 19 the smoothing works great but there's there's a downside to it too the reason the smoothing works great is because we we at we spread out over time gains and losses to try and keep the city's funding volatility even where the downside comes in is in two years we will no longer be using any part of the fiscal 21 gain that 21% falls off it's fully recognized but you have one more year of the negative 19 that's going to be a big year that that year alone could be 3% of payroll so when I say you're going towards 14 it might mostly happen in one year which is two years from now that's going to be the worst year 2027 it'll be the 20 to replace it it'll be the 25 valuation so it'll be the 26 27 funding year is when you should expect a spike can we look at have a look at one more page page 2 page 29 29 there you go okay four years yep investment return so say annualized rate of return for 4 years is only 4.72% because of that big 19% drop last year y but what are he saying let's say we add 2024 the get S the repter 2025 get our s and a quarter sooner or later that 20 plus which is like 3 times 7.25 it's going to drop off right and you're St going have to live with the almost 3 * 7 bad year right so the good year goes away yeah yeah let me let me give you a sense of this everybody's assuming we're not going to have another good year but if we get another 21% year it'll help it would help good luck with that um so so his job is to look at this and legally bound to give us the right information and he gets to be be the one that puts this the data into the Gatsby which is a federal requirement is that correct Patricia Che again the Gatsby is a federal requirement G well gby is is the government Accounting Standards Board it's not exactly Federal it's just the um who pays it I don't actually know who pays gby you don't pay it no you just have to follow it but we do mandatorily have to you have Auditors tell you you have to submit it's a national stand it is National but it's not a like OSHA kind of yeah yeah so just from your perspective but the OSHA is under the federal government but gasby is not under federal government but res of Their Own generally accept but the G but the gasby requirements are we mandatorily have to follow based on the Attorney General so and the audit the audit General so what what happens is at the state level you have state leg legal requirements that require government entities to adhere to the government ACC standards boards and it's just like non-government entities have to follow the the the Financial Accounting Standards Board the fby so it's it's its own entity it's an independent private sector organization yeah it's its own entity not affiliated with another government entity but we do by state law and every single state in the United States require government agencies to follow and adhere to the government Accounting Standards Board okay got it which is a convoluted way to say legally we have to whether we want to or not so that that's what our when we hire our Auditors our cpaa firm to come in they're following that they're following the audit General they're following the Attorney General they're following Federal they're following state laws I mean there's a lot of things that we have to lot of levels that we have to follow and adhere to including Doug and Larry and Blake we're all we're all required to follow these regulations lot of rules so get enough information today it shle shle are you going to come back yes I will I have a quick question sir I understand it but you you're a perfect person to ask I get a lot of employees asking me how much does the city contribute on my behalf and I understand it's not like that how would you answer that I think maybe dep it depends so last year you the Divine benefit that you're promised when you retire under the current rules they're just asking in a simplistic so last year last year it was 9.19% last year it was 9.19% for the upcoming well that's for this year this year's budget the upcoming budget for fiscal year 2425 that amount that the city's going to contribute on their behalf is 11.59 if you are in the police or fire pension it's even higher you can tell them for General employee like remind them hey you're putting in 5% of your pay tell them the city's putting in more than double that okay that's a good I'm looking for something simple like that that's it because they all think not all you think okay we're doing five what are they doing you can also tell them that their benefits promise that whatever they ACW at any particular date and time can never ever be taken away there's there's no guarantee for the future you don't want to let them think like nothing can ever happen but you can tell them at any point in time their benefit that they've recruited that date is Promised by law and can never be reduced and by the way the city's putting in a little more than double what you are I like that yes thank you and in the foreseeable future that will be a true statement yes and in a couple years you can tell might be busy maybe that number will come down we fig years it's already given you good news for the current year so far so if we annualize this quarter we're going to do 30 36% but Blake said he could do You' already yep you've already get this plus you've already hit the seven for the year and then some it could go to cash well CDs there you go CDs from this point forward and you're done all right I'm done I did have one more question I think I understand it the it was like 208,000 for bested employees yes is that mean that was they left and that's they weren't here 5 years so that's what they got paid out but the 5% 208 yes I think yeah that number is the annual payments that we expect those who left vested but will draw at a later date okay all right we expect to pay them in total $28,000 a year all of those employees all combined they'll come in at different points in time to draw okay that's what the 208 comes from okay I I make motion to accept the ACT report a secondment thank you um that concludes new business informational item oh we we had a we we didn't vote do we need to vote Yes sorry all those in favor please say I I those opposed vot carries some things you can do by consensus sorry giving Larry Direction you know I'm new based on his advice new you've been here ever since I been I caught it okay I'll restate that I'm young still learning um informational items we already did discuss Sterling Capital um they have attached I think to this the press release yes P um uh annual Financial disclosure form one oh yeah um so the disclosure form one is you're talking about the elected officials elect so that's the um elected officials and board members we have to file a financial disclosure [Music] um do they have to do that form everyone has to do F1 you do no we do a form form one you're the form six guy I know all form I put that off as until they come to the news who does so so you should be getting an email for the board members except for the commissioner should be getting um an email from the city clerk about how to file your form one and it's due what March 3 real simple compared to what it's it's a very simple form um for us that's just just a financial disclosure the state wants to make sure that we're not personally inappropriately gaining from our position on the board um our commissioners our elected officials have to file now a form six it's much more um informative is that the one that's scaring everybody or a lot of people away yeah it is because it's um the form six is for us it's just do an insider trading with people that you are known to do business with on the and give contracts to in on as your job as a elected official and then you put down that you got $2.5 million in that company it ain't going to look good or 25,000 you know $2.5 in there still for us it's just basic you know they're just looking to see is your income your debt your assets do they make sense you know it it's not it's not that it's not that invasive to us but it kind of is to the elected officials now that and that's a new change for them but for us it's it's still the form one it's not that bad um form one you have to put everything that you we are yeah including household items that are worth over $1,000 do what what was the last part you said everything you own that we do or you do commissioner everything I own that's worth more than ,000 I have to itemize oh my gosh W for for us it's it's much more simplistic it's just you know what are what are your major debts what's your major assets it's it's not that big a deal you getting a paycheck from anybody you're getting a pension from anybody and that's going to be a public record for yes all that's why people are quit cuz they know they're going to get caught I haven't done anything I don't worry I've never even taking a campaign cont we will see I'm Jing um and the other thing is is that previously we did those on paper we'd fill them out on paper and mail them in now the state is requiring they'd be done electronically which is why you'll get the email from the city clerk she'll send you the link and get you set up so that you can do that electronically it's not that it's not that bad for us it still doesn't feel great but it's not that bad he what you get um next quarterly meeting is May 16th 2024 and we're adjourned thank you thank you good