I now call the meeting of order.

The time is down four o'clock.

Well the clerk please call the ball.

Councilmember Vierras Walton.

Present.

Councilmember Aguilar.

Present.

And Mary Gonzals is excused from today's finance committee meeting.

So we have announcements.

Will the clerk make the public comment announcement?

After each agenda item is presented, the chair will ask for committee member comments and then take public comment.

You will have two minutes for your comment and countdown timer will appear for the convenience of the speaker and attendees.

So we'll go to item 2A 25-258, 2025 Q and OPEP trust and pension trust investment report through March 31st, 2025.

So the assistant finance director Felicia Silva will present this item.

Next slide, please.

And so for the OPEC trust, that's other post-employment benefits, primarily related to retiree medical.

And again, the goal here is to invest certain funds that we then set aside for longer term liabilities associated with those retiree medical costs.

The value from our OPEC trust increased slightly from 22.3 million to 22.6 million.

And one year returns of 5.49% with inception to date returns of uh 4.4.53%.

And then the other thing that I would uh just note is uh the city did not make any contributions this fiscal year to the OPEP trust.

And also I would like to point out that the returns, if you look at the staff report, and if you've looked at the um the report from um PFM, the first quarter returns were a little sluggish related to some uncertainty with regard to public policy, for example, tariffs and other concerns regarding potentially entering into another inflationary environment.

So that's our OPEP trust, and then we also have the pension trust and the pension trust increase in value from 32.8 million and a slight increase to 32.85 million.

And I do just want to note that these values are um again their net of uh city contributions, it includes investment returns as well as um net of any administrative costs.

So again, slight increase there but primarily flat.

Um and then one year return of 5.38%, and then an inception to date 2.19%.

So the pension trust is a is a younger um program, I believe it was established in 2021.

Um, and again, the the purpose is setting aside these funds.

In this case, we're um talking about pensions and the unfunded long-term liabilities, so that we can use these funds that can help us pay down those uh liabilities as the city deems appropriate based on budgetary or other financial conditions.

Again, uh want to note that the first quarter here, which again is January through March 2025, a little bit of sluggish returns.

You can see it's about um 0.22 percent um returns, and the the culprit here is the domestic equities market, and um I did reach out to our um investment management firm, PFM, and uh he said we'll we'll see some good volatility if you will, in terms of um a rebound in the fourth quarter.

So we'll be seeking uh that information.

Um they'll they'll be getting that to us in the next couple of weeks.

The other thing I just want to point out is that um council did approve a contribution to the pension trust um as part of our year-in report, and that was in March.

That is not reflected here yet.

We typically um take care of that as part of um our year-in transactions, etc.

So you'll see that small contribution, it was a little under 500,000 in one of the future reports, and with that um here to answer any questions you might have.

Um let's see.

Do we have well we will go to um any committee questions?

I don't have any questions.

I don't have any questions on this either.

Um we'll go into uh public comment.

No speaker cards have been submitted.

Wonderful.

So um Felicia, thank you for the uh um the presenting this this item.

I know that we have we're we'll get the next quarter will be April, May, June.

April, May, June.

Um, and that'll also take us through the entire fiscal year.

Um let me see if I can tell you when we already have that on the agenda.

And if I may, there is um yeah, let's see, the yes, we have it for October.

Um, so that next report will be in October with a pretty packed agenda in September.

So that was the next best time.

Um, and what are we looking at with regards to the ending of the fiscal year with regards to the pension and the OPEP?

I know that we had some slight increases um we anticipate increase on both pension and open and that particular quarter.

I would hesitate to get in front of our investment management um firm, but um I did want to just make sure that we weren't experiencing a downward trend that was lingering.

Um so still seeing some volatility as he mentioned, but um on on a positive note, and the other thing I just want to mention, um, I didn't get a chance to mention it earlier, but when we are looking at these um investment portfolios in particular for for OPEP and pension, we're really looking at a longer horizon, right?

So we don't want to panic if we have a couple of um months or a year even of negative returns.

We'll be looking at it over a longer horizon.

Thank you for that.

I should have been using the mic.

Forget about that sometimes.