Los Alamos County Advisory Board Meeting - November 19, 2025

The Los Alamos County Advisory Board convened on November 19, 2025, to approve meeting minutes, establish the 2026 board schedule, ratify the annual report to the governing body, and receive performance reviews for the Permanent Investment Fund and the City's operating portfolio. Clerk Davis provided a procedural update regarding the consolidation of investment advisory contracts from PFM to Government Portfolio Advisors (GPA), effective October 1, resulting in cost savings. The board unanimously approved the meeting items, including the schedule and the annual report.

Consent Calendar

• Amendment to Minutes: The board approved an amendment to the August 27, 2025, regular meeting minutes, specifically changing the term "hallway roadblock" to "separate roadblock" and updating a file reference to a hash.
• Approval of Minutes: The corrected minutes for the August 27, 2025, regular meeting were approved unanimously (5-0).

Public Comments & Testimony

• No public comments were solicited or recorded during this session.

Discussion Items

• Establishment of 2026 Board Meeting Schedule: Clerk Davis proposed a schedule comprising four meetings to occur quarterly on Wednesday afternoons or evenings at 6 p.m. The proposed dates were February 18, May 27, August 26, and November 18, 2026.
• Annual Report to the Governing Body: Clerk Davis presented the letter outlining the board's activities and chair assignments for 2024. A clerical error identifying the report as "2024" was noted as having been corrected to the proper year prior to presentation.
• Permanent Fund Performance Review: Stephanie Yara introduced Deanne Woodring and Frank McDonald of Government Portfolio Advisors (GPA) following the consolidation of advisory contracts. Ms. Woodring presented the portfolio status, noting:
  • The portfolio started with $10 million in January 2023 and is now valued at over $15 million.
  • The strategy maintains a target allocation of 60% equities and 40% income, which is considered a standard growth model.
  • Two new asset products (a real estate fund and a real asset growth fund) were added in May 2025 to provide diversification; these are currently reported within the equity category but may be carved out as a separate asset class during the next policy review.
  • The board operates within a 20% cash equivalent target, though the current portfolio shows a 39% equity allocation, requiring minor rebalancing.
  • Ms. Woodring highlighted market volatility attributed to the AI bubble but stated the fund remains well-positioned for long-term growth.
• Operating Fund and Liquidity Components: Deanne Woodring provided an update on the city's operating funds, noting:
  • The city is in a decreasing interest rate environment, with the 3-month bill rate dropping from 4.62% to 3.93% by the end of the quarter. The Fed funds rate was lowered to a range of 3.75% to 4% in October.
  • The operating fund portfolio is yielding approximately 4% (specifically 3.96% on the core account and 4.06% on the operating fund alone).
  • The portfolio composition at the end of the quarter was 58% US Treasuries, 12% agencies, and 17% bank deposits, with a weighted duration of 1.22 years against a maximum policy limit of 7 years (managed internally to 5 years).
  • The fund generated approximately $3.4 million in income on a quarterly basis and reported an unrealized gain of $1.8 million at the quarter's close.
  • Ms. Woodring confirmed the portfolio is outperforming the 0-5 Treasury benchmark, which returned 3.90% over the trailing year, while the investment portfolio returned 4.05%.

Key Outcomes

• 2026 Meeting Schedule Approved: Unanimous approval (5-0) of the dates: February 18, May 27, August 26, and November 18, 2026. Meetings will be held on Wednesdays at 6 p.m.
• Annual Report Approved: Unanimous approval (5-0) of the 2024 Annual Report to the governing body in its corrected format.
• Permanent Fund Policy Review Scheduled: The board agreed to conduct a policy review and potential asset class adjustment (specifically regarding real estate and real assets) at the August 2026 meeting.
• Portfolio Status Acknowledged: The board accepted the performance reports for both the Permanent Fund and Operating Fund, acknowledging the successful consolidation with GPA and the positive financial returns despite market volatility.