We will have a 15 minute public comment period.

Rob, do you want to read those slight roles concerning the public comment period and then we can see if there's anyone online?

Sure.

Before every meeting, we're required by state law to have a 15 minute public comment period.

Attendees will be limited to three minutes for their comments.

Any anybody online wish to make a comment, please come forward.

I think we're good to go.

All right.

Thank you, Rob.

With that being said, the public comment period is now closed, and we will call the meeting to order October 27, 2025, finance and audit committee meeting.

It will be three members present, one member absent.

Councilman Perez.

Two items on the agenda quarterly investment report through September 30th, 2025.

And we will review the financial policy.

I'll return the meeting over to Lou Batola, our senior accountant for the city of Melbourne.

Lou, the floor is yours.

Thank you, Mr.

Chairman.

Good evening, members of the committee.

He is our investment consultant with PFM asset management.

He is going to uh run the presentation of the quarterly investment report.

Umly thing I'd like to um start with um is just to advise the committee that I've reviewed the investment report.

Not a lot of change since last quarter.

Uh the only thing that really stuck out to me was a dip in the short end of the yield curve.

Um and and which means our existing investments um have earned a little bit in the form of um unrealized resturns, um, unrealized gains.

Um, but I will let Jeff elaborate on that and the other implications of that minor change in the yield curve, the rest of the yield curve looks almost identical to last quarter.

Um, and uh Jeff will also address um uh whether the recent changes in the investment policy have influenced changes in the portfolio.

Um I I don't want to give any spoilers, but um there weren't major changes as a result of that, which kind of demonstrates what we said last quarter with the changes was that the changes were to add flexibility and uh give BFM more tools, not that there were imminent changes required in the portfolio.

So with that, I'll turn it over to Jeff.

I'm gonna take a minute to um to share my screen and have Jeff run from there.

Thank you, Jeff.

And

Jeff, if you would on the loop did a similar introduction if you just introduced yourself, um, how long if you've been on this account.

Um and you you let us know whether you like questions during your um presentation or whether you would like them woven in whenever they whenever they come to someone's uh mine.

It's up is up to you.

Sounds great.

Thank you.

Well, thanks again for having me here.

Uh Jeff Fasina with PFM Asset Management.

Uh, this is my third quarter working uh on this particular account.

I've been with PFM asset management for about a year and a half, almost two years.

Uh before that, I was at the company called DuPont Capital Management in a similar role for 15 years and then uh started my career at Delaware Investments uh in Philadelphia uh before

that.

Um feel free to ask questions at any time.

Happy to answer them, and then uh we can kind of jump into the uh the presentation.

So uh you know start with the the wordy page real quick and uh we'll talk a little bit about what happened uh in the economy uh for the quarter.

Feel free to not read this until bedtime uh when you want to go to sleep.

We'll really focus on the summary uh on the top left.

And there's a few things going on in the market right now that I think are really important.

First, um we have the Fed, which is right now balancing labor with inflation.

So during the quarter, the Fed uh lowered interest rates for the first time in 2025.

Uh

the reasoning behind that was a softening in the labor market uh that had become more important uh than the impacts of inflation.

Inflation kind of easing in around 3%, which is above the 2% mark that the the Fed's going for.

Uh, but they have a dual mandate and and staying on top of that labor market is important.

So the Fed lowered rate for the first time.

Uh it is likely that this week they're going to make another 25-point basis, 25 basis point cut.

And it's also likely uh in December that there'll be one more cut.

So price in the market right now is another 50 basis points of rates coming down.

So that really sets kind of the stage for where we are from an investment standpoint.