30 seconds begins 30 seconds has begun staff is ready to move good morning welcome to the Ann Land and Bertha Henschel Memorial Funds Commission meeting the meeting is now called to order.

Will the clerk please read the roll call to establish a quorum thank you chair commissioner Beckman is absent Commissioner Ellis here Commissioner Hino Josa Commissioner Corb here Commissioner Macintosh here Commissioner Yanez is absent Commissioner Zemanudin here and President Smith here thank you we have quorum Thank you so in prior years um first of all I want to apologize for the uh little bit of a late start we found that we had some challenges in the old city hall and we moved over here to the to the council chambers um and now we are all set up and ready to go also if you have not signed in please sign in on one of the two white pieces of paper that's up here at the speaker's platform um at some point before you leave today in the prior years the commission has requested a brief presentation from each applicant for funding from the commission because the commission expects applications to contain all the information necessary for evaluations by the commission this year's presentations have not been requested however commission members may have questions for or request clarification from specific applicants I'd like to remind you if public in the chamber if you would like to speak on an agenda item other than what we may call you up for please turn in a speakership when the a slip when the item begins uh you will have two minutes to speak once you're called upon after the first speaker we no longer accept speaker slips for that agenda item so we will now proceed with today's agenda all rise please for the opening acknowledgments in honor of Sacramento's indigenous people and tribal lands to the original people of this land the Nasanon people the southern Maidu Valley and Plains Miwak Patwanwintu people and the people of the Wilton Rancheria Sacramento's only federal tribe may we acknowledge and honor the native people who came before us and still walk beside us today on these ancestral lands by choosing to gather today an active practice of acknowledgement and appreciation for Sacramento's indigenous peoples history contributions and their lives thank you please remain standing for the Pledge of Allegiance I pledge allegiance to the flag of the United States of America and to the Republic for which it stands one nation under God indivisible with liberty and justice for all thank you may be seated so my name is Talbot Smith I'm the president of the commission this year I'd like to welcome you today our first business is approval of the consent calendar clerk are there any members of the public who wish to speak on the consent calendar thank you president smith uh I have no speaker slips on this item thank you are there any commissioners who wish to speak on this item hearing none is there a motion and second for the consent calendar consent calendar includes approval of the meeting minutes from our last meeting is there commissioner who'd like to make a motion to approve the minutes from the last meeting commissioner ellis okay I make a motion to approve the commission meeting minutes from the last meeting thank you is there a second a second thank you so we have a motion by Commissioner Ellis and a second by Commissioner Macintosh will the clerk please call the roll call vote thank you President Smith Commissioner Beckman is absent Commissioner Ellis aye commissioner Hino Josa aye commissioner Corbes aye commissioner mackintosh aye commissioner yanez is absent uh vice president Zemanudin aye uh and

Thank you.

So we have a motion by Commissioner Ellis and a second by Commissioner Macintosh.

Will the clerk please call the roll call vote?

Thank you, President Smith.

Commissioner Beckman is absent.

Commissioner Ellis.

Aye.

Commissioner Hino Jose.

Aye.

Commissioner Corbes.

Aye.

Commissioner Macintosh.

Aye.

Commissioner Yanez is absent.

Vice President Zemanuden.

Aye.

And President Smith.

Aye.

Thank you.

The motion passes.

Thank you.

We'll now proceed to the discussion calendar.

The first item on the discussion calendar is the uh city treasurer's annual report and 2024 funding recognition recommendations.

Is there a staff presentation?

Good morning.

There we go.

My name is Stacey Hessey, and I am the Chief Investment Officer in the City Treasurer's office.

City Treasurer John Colville had a conflict arise, so I am here to present on his behalf.

So if you can just bear with me here while I try to get to the page I'm supposed to be on.

I think I'll do it this way.

Okay, sorry about that.

Um so what I'd first like to do is just touch on a couple brief items in your agenda package, which is the fiscal year report, which goes from June 30th to June 30th.

What we'll do later in the presentation is kind of update you where the markets have gone in the last few months, and that's our October to October update.

So on the June 30th report, um, the page I have up right now is page 10, and you will see that the account for the year had an annual return from June to June of 3.04%.

And this compares to the all equity iShares portfolio, which we used to only use as a benchmark in the plan of negative 3.71%.

We have listed a few other benchmarks just for uh comparison purposes because I know some of the commissioners wanted to have that there.

Um so the current portfolio has about had at June 30th had about a 38 percent weighting to fixed income, and that is higher than is normal.

And the reason is um they will fluctuate as equities go down, the fixed income weighting will go up, and this will change quite a bit throughout the course of the fiscal year.

So currently the fixed income is generating a 4.37% yield as of June 30th when this report was done.

We were able to go back and add a custom blended benchmark, which we think we mentioned last year, which was a combination of the I shares of 75% and 25% in a fixed income benchmark, just so that we could get a benchmark bogey that was a little closer to what the portfolio actually looked like.

So that blended portfolio had an annual return of two point negative 2.77% for the year.

So it's hard to look at, we always say it's hard to look at returns for one year, so we like to look at a little bit longer time period.

So if we continue on in the report to page 12 of the, I believe it's 12.

Page 12 in your report, you'll see the longer time frames on here, and so we go out to three years and five years.

Unfortunately, we cannot go back to inception because some of these benchmarks were not around when this trust was originally set up.

But you can see um on across the longer term, the portfolio has performed very well across all of its benchmarks, and we have continued to structure the portfolio to be more insensitive to the movements in the market so that we see more stability even when the markets are moving in extreme high conditions and extreme low conditions.

So that's the plan for the portfolio is to keep it a little more level so that we can feel comfortable with the income that we're recommending every single year.

So on that note, this year we did recommend that we increase the grant amount by five thousand dollars to 170,000.

And this is the second back-to-back raise on the portfolio.

And if you go back in history, you'll see there were many years where the spend amount never moved.

So we're very happy that the work we've done over the last few years to add fixed income and to add stable funds flowing into the account that we're able to continuously raise that.

So are there any questions on the fiscal year report before I move on to the current reports?

No, okay.

Okay, so the next report is the one that's traditionally presented for October to October, and it does come out very late, so I apologize for that.

We have to wait for our accountants to close the books for October.

And that happened this year very late on November 9th.

And as you know, November 10th was a holiday.

So we tried to get it out as soon as we could so that you'd have time to review it.