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>> GOOD AFTERNOON EVERYBODY.

[1. CALL TO ORDER]

[00:00:06]

THIS MEETING WILL BE CALLED TO ORDER AT 3:01 P.M.

GOOD AFTERNOON COMMITTEE MEMBERS.

WELCOME TO OUR FOURTH AND FINAL QUARTERLY MEETING FOR 2023.

MAY I HAVE A ROLL CALL. >> TREASURER TAYLOR.

>> HERE. >> HOLLY AGUILAR.

>> HERE. >> COMMISSIONER BRUCH.

COMMISSIONER BRUCH. I BELIEVE SHE'S ONLINE.

I'LL COME BACK.

MR. ROBERT VIDAL.

>> HERE. >> MR. KELLY RING RIGHT.

CHAIR HEIL. >> PRESENT.

>> DIRECTOR CASSANDRA HER RARA AND COUNTY MANAGER JOHNSON.

>> I THINK DEPUTY COUNTY MANAGER IS SITTING IN BY ZOOM TODAY.

>> WONDERFUL. I KNOW CHRISTOPHER DANIEL DID SAY HE WOULD NOT BE JOINING TODAY.

COMMISSIONER BRUCH, WAS THAT YOU? OKAY FOR THE RECORD, CHRISTOPHER DANIEL IS NOT PRESENT, AND I DON'T BELIEVE CASSANDRA IS GOING TO BE HERE TODAY EITHER.

ALL RIGHT. WE WILL MOVE ON TO APPROVAL OF THE AGENDA.

[2. APPROVAL OF AGENDA ]

MAY I HAVE A MOTION TO APPROVE THE AGENDA?

>> SO MOVED.

>> MAY I HAVE A SECOND. >> SECOND.

>> ROLL CALL.

>> TREASURER TAYLOR.

>> YES. >> HOLLY AGUILAR.

>> YES. >> COMMISSIONER BRUCH.

MR. ROBERT VIDAL. >> YES.

>> MR. CANCEL A WAYNE RIGHT.

>> YES. >> CHAIRMAN HEIL.

>> YES. >> OKAY.

[3. APPROVAL OF MINUTES]

APPROVAL OF MINUTES.

MINUTES WERE SENT OUT EARLIER THIS MONTH.

ALL OF THE COMMITTEE MEMBERS SHOULD HAVE RECEIVED IT.

AND HOPEFULLY YOU HAD A CHANCE TO REVIEW THEM BEFORE THE MEETING.

MAY I HAVE A MOTION TO APPROVE THE AUGUST 1ST, 2023,

MINUTES. >> SO MOVED.

>> A SECOND?

>> SECOND.

>> ROLL CALL.

>> I WANT TO SAY HELLO AGAIN TO EVERYBODY.

GLAD TO SEE EVERYONE HERE.

HERE IN PERSON AND THOSE IN THE ZOOM CALL OR THE WEBEX.

I'M ALSO PLEASED TO REPORT IT'S BEEN A VERY SUCCESSFUL YEAR IN THE SANDOVAL COUNTY TREASURER'S OFFICE FOR 2023.

[5. STATUS OF THE TREASURER’S OFFICE]

I WOULD LIKE TO ACKNOWLEDGE SPECIAL GUESTS WITH US TODAY.

TODAY WE HAVE OUR TWO JUNIOR COUNTY TREASURES, DANNY IS A SENIOR AT RIO RANCHO HIGH SCHOOL  BOTH GIRLS CAME ON BOARD LAST MONTH, THEY WERE SELECTED IN SEPTEMBER OF THIS YEAR AFTER SUBMITTING ESSAYS ON WHY THEY WOULD LIKE TO PARTICIPATE IN THE PROGRAM. THEY WE WERE ACTUALLY PLANNING TO SELECT ONE JUNIOR AND ONE SENIOR, BUT SINCE WE DIDN'T RECEIVE SUBMISSIONS FROM JUNIORS, WE SELECTED TWO SENIORS.

I'M HAPPY TO HAVE THEM ON BOARD.

I FEEL THEY HAVE BEEN LEARNING A LOT.

IT'S A LOT OF INFORMATION TO TAKE IN, BUT IT'S AN EXCELLENT OPPORTUNITY FOR BOTH TO HAVE HANDS ON EXPERIENCE IN LOCAL GOVERNMENT.

THEY'RE PRESENT TO OBSERVE AND HOPEFULLY GAIN INSIGHT INTO INVESTMENTS IN GOVERNMENT AND HOW IT BENEFITS OUR COUNTY.

WELCOME LADIES.

(APPLAUSE) WE ALSO HAVE OUR BANK REPRESENTATIVES WITH NEW MEXICO BANK AND TRUST PRESENT TO HELP US ANSWER ANY QUESTIONS THAT THIS COMMITTEE MAY HAVE THROUGHOUT OUR PRESENTATION.

WE HAVE MR. STEPHEN MONTOYA AND MR. MIKE SANCHEZ WITH YOU.

THANK YOU FOR BEING HERE WITH US.

IN REGARD TO OFFICE STAFF, AS YOU SEE IN THE FLOWCHART, WE HAVE SOME EXTREMELY HARD WORKING EMPLOYEES BRINGING IN THE MONEY AND ENSURING THAT WE ARE FULFILLING OUR STATUTORY REQUIREMENTS.

AS YOU SEE IN THE FLOWCHART, WE CURRENTLY HAVE ALL OF THE POSITIONS FILLED IN TIME FOR THE 2023 TAX SEASON APPROACHING NEXT WEEK.

WE HAVE TWO HIGH SCHOOL INTERNS FROM CUBA HIGH SCHOOL THAT JUST BEGAN WORKING IN OUR OFFICE ON MONDAYS.

IT WILL BE MONDAYS ONLY FOR ABOUT FOUR HOURS, AND IT WILL BE THROUGHOUT THE ENTIRE SCHOOL YEAR.

[00:05:01]

THESE STUDENTS ARE WORKING FOUR HOURS AND WE HAVE ONE THAT IS GOING TO BE WORKING IN THE VAULT AREA AND ONE WORKING UP FRONT WITH TAX RESEARCHERS SO THAT ONE IS LEARNING THE ACCOUNTING SIDE OF IT AND THE OTHER WILL HAVE MORE OF THE HANDS ON CUSTOMER SERVICE EXPERIENCE.

BOTH STUDENTS ARE BEING COMPENSATED BY THE CUBA SCHOOL DISTRICT AND NOT THE COUNTY.

THAT'S A PLUS FOR US AS WELL.

ARE THERE ANY QUESTIONS SO FAR REGARDING THIS? OKAY. GREAT. NEXT THE 2023 TAX ROLL WAS RAN ON OCTOBER 1ST, 2023.

AND THE TAX BILLS ARE MAILED, BEING PREPARED TO GET MAILED OUT NO LATER THAN NOVEMBER 1ST.

WE JUST FOUND OUT IT WILL PROBABLY BE OCTOBER 30TH OR THE 31ST.

OUR TAX ROLL HAS INCREASED BY $15 MILLION THIS YEAR, WHICH ATTRIBUTES FROM NOT ONLY THE NEW PARCELS THAT WERE ADDED TO OUR TAX ROLL, BUT AN ADDITIONAL PIT THAT WAS ADDED.

MORE INFORMATION ABOUT THAT IS GOING TO ACTUALLY BE FOLLOWED UP HERE MOMENTARILY BY CHIEF DEPUTY MCPARLIN AND HOLLY AGUILAR.

WE HAVE ADVERTISED THIS TAX SEASON IN THE LOCAL NEWSPAPERS AS WELL AS DIGITAL STREAMING AND PODCAST CAMPAIGNS TO BOOST TAXPAYER ENGAGEMENT.

MY OFFICE IS OFFERING A NEW FORM OF COMMUNICATION TO TAXPAYERS VIA TEXT MESSAGING.

IT'S A SERVICE BY THE NAME OF ENGAGE BY CELL.

THIS SEASON WE'RE GIVING TAXPAYERS THE OPTION TO RECEIVE TEXT MESSAGE REMINDERS REGARDING PROPERTY TAX ACCOUNTS.

MESSAGING REGARDING POTENTIAL LATE PAYMENTS WILL BE SENT TO THOSE WHO OPT IN TO RECEIVE REMINDERS IN AN EFFORT TO CURVE TAXPAYERS BECOMING DELINQUENT.

BY USING THIS FEATURE, WE HOPE TO CUT DOWN THE COST SIGNIFICANTLY WHEN IT COMES TO FRIENDLY REMINDERS WE MAIL OUT IN MARCH. IN ADDITION, BASED ON THE CONVENIENCE AND SIMPLICITY OF THIS NEW TEXT MESSAGING SERVICE, THE TEXT MESSAGES ARE LIKELY TO COMMAND MUCH HIGHER AND FASTER RESPONSE RATES THAN OTHER APPROACHES SUCH AS EMAIL.

THIS IS DEFINITELY A TEST RUN TO SEE HOW SUCCESSFUL IT IS BEFORE DECIDING IF WE WANT TO CONTINUE THIS GOING INTO NEXT YEAR.

ANY QUESTIONS REGARDING THE NEW CAMPAIGN WE'RE DOING? NO? OKAY.

NEXT WE HAVE STARTED OUR THIRD ANNUAL THANKSGIVING FOOD DRIVE IN COLLABORATION WITH CHECKER BOARD FOOD PANTRY.

THIS SERVES HUNDREDS OF FAMILIES DURING THE HOLIDAY SEASON WHO NEED EXTRA HELP WHEN IT COMES TO PUTTING FOOD ON THE TABLE.

EACH YEAR, IT'S BECOME MORE AND MORE SUCCESSFUL THAN THE YEAR BEFORE.

WE ANTICIPATE A BIGGER TURNOUT DUE TO THE INCREASED COST OF LIVING.

WE HOPE TO COME TOGETHER IN HELPING WITH THE NEEDED DONATION ITEMS. WE HAVE A LIST OF THOSE ITEMS AVAILABLE ON OUR WEBSITE.

AND HAS BEEN SENT TO MEDIA OUTLETS IN HOPES THEY WILL ASSIST IN GETTING THE INFORMATION OUT IN A TIMELY MANNER.

THE FOOD DRIVE IS TAKING PLACE OCTOBER 16TH THROUGH NOVEMBER 17TH AND FOLLOWED BY OUR TOY DRIVE TAKING NOVEMBER 27TH THROUGH DECEMBER 22ND.

NEXT IS AN UPDATE ON OUR LETTER OF CREDIT.

ON SEPTEMBER 29TH, WE RECEIVED OUR RENEWED LETTER OF CREDIT FROM FHL BANK IN TOPEKA.

AS YOU SEE ON THE PRESENTATION, IT IS IN THE AMOUNT OF $135 MILLION WHICH IS SET TO EXPIRE MARCH 29TH, 2024.

WE HAVE MET WITH NMBT LEADERSHIP DURING OUR FOURTH QUARTERLY MEETING ON OCTOBER 11TH, AND REASSURED THE BANK BALANCES BEGIN TO NEAR THAT TOTAL, THEY WILL EXTEND AN ADDITIONAL LETTER OF CREDIT TO MAINTAIN OUR COLLABORATE RATIONALIZATION.

WE HAD A SHORT CONVERSATION WITH MYSELF AND TREASURY OPERATIONS MANAGER AND WE'RE ANTICIPATING THAT THAT TOTAL IS ACTUALLY PROBABLY GOING TO EXCEED THAT $135 MILLION.

SO, JUST AS A HEADS UP WITH THAT.

OUR NEW MEXICO BANK BALANCES AS YOU WILL SEE IN YOUR PACKETS ARE GENERAL FUND IS SITTING AT 50.4 MILLION.

TAX PAYMENT ACCOUNT IS AT $2 MILLION AND THE TOTAL BALANCE OF ALL ACCOUNTS ARE 58.3 MILLION.

BE ASSURED THAT THE $2 MILLION YOU SEE IN THE TAX PAYMENT ACCOUNT RIGHT NOW WILL GO UP SIGNIFICANTLY IN THE NEXT FEW WEEKS AS WE BEGIN OUR COLLECTION 2023 COLLECTIONS.

ARE THERE ANY QUESTIONS REGARDING THOSE BANK BALANCES? OKAY. NO QUESTIONS. NEXT CHIEF DEPUTY MCPARLIN WILL PRESENT AN UPDATE ON OUR 2023 TAX ROLL AS I MENTIONED EARLIER AND TREASURER OPERATIONS MANAGER HOLLY

[00:10:07]

AGUILAR WILL FOLLOW UP WITH BONDED DEBT SCHEDULE AND GRT UPDATE.

>> GOOD AFTERNOON.

AS TREASURER TAYLOR STATED, WE PROCESSED THE TAX ROLL ON OCTOBER 1ST.

THIS YEAR, $172,064,558.30 WAS CHARGED TO THE TREASURER TO COLLECT FOR 2023 TAXES.

I WOULD LIKE TO THANK CC BACA CHAVEZ AND TREASURY AND COLLECTION SUPERVISOR ANNETTE CHAVEZ FOR WORKING WITH ME TO ACCOMPLISH THIS TAX.

THERE ARE MULTIPLE STEPS AND IT'S A LENGTHY PROCESS AND ONE OF THE MOST IMPORTANT JOBS DONE IN THE OFFICE TO COLLECT.

THREE HEADS ARE DEFINITELY BETTER THAN ONE.

IT'S BEEN EXCITED TO WITNESS THE AMOUNT CHARGED TO THE TREASURER TO COLLECT INCREASE YEAR OVER YEAR.

THIS IS OUR LARGEST INCREASE SO FAR.

I REACHED OUT TO THE CHIEF ASSESSMENT OFFICER, ED ALONA IN THE ASSESSOR'S OFFICE TO INQUIRE WHY SUCH A LARGE INCREASE.

HE INFORMED ME IT IS MANY FACTORS ALL TOGETHER ACCOUNTING FOR THE INCREASE OF THE TAX ROLL TO INCLUDE BUT NOT LIMITED TO, OF COURSE, MAIL LEVY RATES, INCREASE IN VALUES, INCREASE OF PARCELS AND THE ADDITION OF A PID.

ONE NEW PID WAS ADDED THIS YEAR.

PARCEL COUNT FOR 2023 IS AT 148,845, WHICH IS AN INCREASE OF 565 NEW PARCELS ON THE TAX ROLL.

THE PRINT FILE WAS SUCCESSFULLY SUBMITTED TO THE VENDOR ON OCTOBER 4TH, AND EXPECTED TO BE MAILED BY NOVEMBER 1ST IF NOT SOONER.

IF TAXPAYERS ENROLL FOR ESTATEMENTS, THEY WILL BE EMAILED BY NOVEMBER 1ST, IF NOT SOONER.

ALBERTO, OUR TAX RESEARCHER WILL CONTINUE HIS OUTREACH COLLECTION EFFORTS IN VISITING OUR MORE RURAL COMMUNITIES.

WE HAVE INCLUDED THE FIRST HALF OUTREACH CALENDAR WITH OUR TAX BILL AND SHOULD ANY UNFORESEEN CIRCUMSTANCES ARISE AND WE HAVE TO CANCEL A DAY AND TIME AT A SPECIFIC LOCATION, WE WILL RESCHEDULE FOR ANOTHER DAY WITHIN FIVE BUSINESS DAYS.

AND WE ARE JUST EXCITED TO START ASSISTING THE TAXPAYERS OF SANDOVAL COUNTY.

ANY QUESTIONS? OKAY.

>> WHAT PERCENTAGE OF OUR TAXES ARE PAID THROUGH MORTGAGE COMPANIES?

>> I WILL HAVE TO CALCULATE THAT AND GET IT BACK TO YOU, BUT IT IS A LARGE PERCENTAGE.

WE GET LARGE BATCH FILES THAT WE PROCESS.

>> IF THERE ARE NO FURTHER QUESTIONS, TREASURY OPERATIONS MANAGER HOLLY AGUILAR WILL GIVE HER PRESENTATION.

>> GOOD AFTERNOON.

I WOULD LIKE TO START WITH OUR FINAL TAX MAINTENANCE SCHEDULE FOR TAX YEAR 2022.

THE SLIDE SHOWS TAX MAINTENANCE SCHEDULE RUN PRIOR TO THE GENERATION OF THE NEW 2023 TAX ROLL.

WE ENDED THE TAX YEAR WITH A 97.63 PERCENT COLLECTED ON 2022 TAXES.

WE HAVE NINE YEARS LEFT TO COLLECT THE REMAINING 2.37 PERCENT.

OUR TEN YEAR COLLECTION RATE IS AT 99.38 PERCENT.

ON THE NEXT SLIDE YOU WILL SEE THAT DURING THE LAST FIVE YEARS, WE'VE MAINTAINED OVER 97 PERCENT COLLECTION RATE ON OUR FIRST YEAR OF COLLECTIONS, AND OVER 99 PERCENT COLLECTION RATE ON TEN YEARS CHARGED TO THE TREASURER.

DOES ANYONE HAVE ANY QUESTIONS? OKAY. MOVING ON TO GROSS RECEIPTS TAX.

FOR THE FIRST QUARTER OF FISCAL YEAR 23/24, WE'VE COLLECTED $7.1 MILLION IN GROSS RECEIPTS TAX.

THAT IS 1.4 MILLION MORE THAN WE RECEIVED IN THE FIRST QUARTER OF 22/23 AND 3.7 MILLION MORE THAN IN THE FIRST QUARTER OF 21/22.

OKAY. ON OUR DEBT SCHEDULE, OUR DEBT SCHEDULE REALLY HASN'T CHANGED MUCH IN ACTIVITY SINCE THE BEGINNING OF THE FISCAL YEAR.

WE WILL SEND OUT PAYMENTS ON OUR 2023 AND 2021 GEO BONDS NEXT WEEK.

ARE THERE ANY QUESTIONS? OKAY. THEN I WOULD LIKE TO TURN THIS MEETING BACK OVER TO TREASURER TAYLOR AT THIS TIME.

>> CAN I HAVE, ASK A QUESTION?

>> YES.

>> REAL QUICK. SO, I DIDN'T GET THE MEMO ON THE UNIFORMS, BUT THERE ARE TWO OF YOU 

[00:15:04]

(LAUGHTER) TWO OF YOU ARE OUT OF UNIFORM.

I LIKE THE NUMBERS AND I THINK I'M IMPRESSED WITH THEM.

YOU MIGHT HAVE HEARD WE'LL START A QUALITY JOURNEY NEXT YEAR.

I THINK THESE MEASURES ARE PROBABLY EXCELLENT.

I DON'T KNOW COMPARED TO OUR PEERS, BUT IT WOULD BE GREAT TO SEE THE NUMBERS COMPARED TO OUR PEERS AND ALSO THOSE NUMBERS ROLLED UP AT THE END OF SOME PERIOD QUARTERLY OR ANNUALLY FOR OUR OUTCOMES REPORT COUNTY WIDE.

IS THAT FAIR TO ASK? >> DEPUTY COUNTY MANAGE, YES THAT IS FAIR TO ASK.

I CAN REACH OUT TO OTHER CLASS A COUNTIES AND GET AN UPDATE AS FAR AS THEIR COLLECTION RATES GO AND HOW MUCH THEIR TAX ROLL INCREASED THIS YEAR AS WELL. AND I CAN EMAIL YOU WITH THAT INFORMATION ONCE WE COLLECT IT.

>> THAT WOULD BE GREAT. THANK YOU.

>> YOU'RE WELCOME. THANK YOU.

ARE THERE ANY OTHER QUESTIONS REGARDING THE UPDATE IN REGARDS TO THE STATUS OF THE TREASURER'S OFFICE? NO OTHER QUESTIONS? ALL RIGHT.

WE'RE GOING TO HOPEFULLY MOVE QUICKLY THROUGH THE STATUS OF THE COUNTY INVESTMENTS.

[6. STATUS OF COUNTY INVESTMENTS]

WE HAVE MR. GARRETT CUED, HEY, ON THE WEBEX TO JOIN US AND GIVE AN UPDATE.

BEFORE THAT, I'LL LET HOLLY AGUILAR BEGIN WITH A PRESENTATION OF THE OVERVIEW OF OUR INVESTMENT SUMMARY.

>> OKAY.

ON OUR INVESTMENT SUMMARY, YOU WILL NOTICE WE HAVE A TOTAL OF 57.3 MILLION INVESTED AT THIS TIME.

WE HAVE BEEN ALLOWING MATURITIES TO STAY LIQUID IN THE CASH MANAGEMENT FUND FOR THE LAST SEVEN MONTHS, SEVERAL MONTHS.

AS PREVIOUSLY INFORMED BY COUNTY FINANCIAL ADVISOR ROBERT BURPO, WE NEED TO DEPOSIT FIVE MILLION OF ARPA FUNDS INTO THE GENERAL CHECKING ACCOUNT BY DECEMBER AS PART OF THE EFFORT TO FUND THE COURTHOUSE ADDITION.

WE HAVE MOST OF THAT LIQUID AND TWO MORE MATURITIES COMING THAT WILL GET US THERE.

WE WILL BE ABLE TO TRANSFER THE FUNDS WITHIN 24 HOURS OF THE REQUEST.

ANY QUESTIONS? OKAY.

I WOULD LIKE TO TURN OVER THE INVESTMENT PORTION OF THIS MEETING TO GARRETT AT GPA AT THIS TIME.

>> HI GOOD AFTERNOON. CAN YOU HEAR ME OKAY?

>> YES WE CAN HEAR YOU.

THANK YOU. >> ALL RIGHT.

PERFECT. SORRY I COULDN'T MAKE IT DOWN IN PERSON AS PLANNED THIS WEEK.

AN ILLNESS CAUGHT HOLD OF ME.

APOLOGIES.

HOPE TO SEE YOU SOON. I'LL ATTEMPT TO SHARE MY SCREEN TO GO THROUGH THE REPORT.

I REALLY JUST WANT TO TOUCH ON THE MARKETS.

AS PREVIOUSLY MENTIONED, THERE WAS NOT A LOT OF INVESTMENT ACTIVITY GIVEN WHAT YOUR SPENDING NEEDS ARE.

OTHER THAN A GRADUAL UPTICK IN  LOW YIELDING SECURITIES, THERE IS NOT A LOT TO REPORT.

WE'LL GO THROUGH THE HIGH LEVEL.

WE HAD AN INTERESTING TIME THIS LAST QUARTER.

CONFLUENCE OF EVENTS SENT LONGER TERM YIELDS HIGHER.

YOU SEE THE GREEN TWO YEAR NOTE, THAT WAS STABLE AFTER WE REBOUNDED FROM THE LOWES IN MARCH AND APRIL AND MAY AS A REMINDER, THAT IS WHEN WE HAD THE SECOND, THIRD AND FOURTH LARGEST BANK FAILURES IN HISTORY.

SO FOR THEY HAVE STEMMED THAT.

YIELDS REBOUND BUT THE RISE IN LONGER TERM YIELDS IS THE REAL STORY THIS QUARTER.

THIS NEXT CHART SHOWS THE INTEREST RATE CURVE, THE STORY WAS TWOFOLD.

IT WAS MOSTLY RELATED TO A RESILIENT ECONOMY THAN ANYONE FORECASTED.

THAT MEANS THE INTEREST RATE CUTS WE THOUGHT THE FEDERAL RESERVE WOULD DO ON THE COURSE THE NEXT 12 TO 24 MONTHS AS THE ECONOMY SOFTENED, THEY'RE LESS LIKELY TO OCCUR OR LESS LIKELY TO OCCUR AT THE PACE WE THOUGHT.

JUST A MATHEMATICS OF BONDS, IF YOU CAN EARN FIVE, FIVE AND A HALF AND ROLL IT OVER, ALL OF A SUDDEN WE THINK THE RATES WILL STAY HIGHER LONG, LONGER HAVE TO BUOY UP TO COMPENSATE INVESTORS FOR WHAT WE PERCEIVE IS A LONGER ABILITY TO ROLL THE SHORT DATA PAPER HIGHER YIELDS.

THE OTHER THING IS NOT A GOOD EVENT.

WE WILL TALK ABOUT IT IN A SECOND.

THAT IS THE DEFICITS AT THE FEDERAL LEVEL ARE GETTING QUITE LARGE.

WE'RE FORECASTING A $1.7 TRILLION DEFICIT.

THIS IS BAKED INTO THE CAKE WITH ENTITLED AND A GROWING INTEREST COST COMPONENT AS WELL.

I WON'T BELABOR IT NOW.

WE'LL TOUCH ON IT LATER.

PARTLY GOOD NEWS AND PARTLY NOT GREAT NEWS.

IT IS INTERESTING.

INFLATION CONTINUES TO PROGRESS LOWER.

WE WILL GET MORE READINGS OUT OF THE FEDS PREFERRED CORE PC MEASURES.

[00:20:02]

ALL SIGNS POINT TOWARD HEADING BACK TO THE MID 3 PERCENT RANGE.

THE MONTH OVER MONTH, WHICH IS WHY I'M SHOWING THREE, SIX AND 12 MONTH MOVING DATA  LEADING US LOWER IF YOU TAKE CORE CPI EXCLUDING HOUSING, WE KNOW IT'S A COOLER HOUSING MARKET THAN THE 12 MONTHS BEFORE THAT.

THAT INFLATION RATE IS 1.8 PERCENT WHICH BACK AT THE FED'S TARGET.

DESPITE THE STRONG ECONOMY AND SEEMINGLY TIGHT LABOR MARKETS, INFLATION RATES CONTINUE TO MOVE LOWER AND WE THINK IT WILL TREE TRACE TO THE FED'S 2 PERCENT AREA OVER THE NEXT 12 TO 24 MONTHS WITHOUT A RECESSION.

THAT IS WHERE THE DYNAMICS ARE.

IF WE GET ONE THING WRONG ABOUT THAT, IT HERE IN WAGE GROWTH.

WE'RE IN A TIGHT LABOR MARKET WHICH IS DRIVEN BY DEMOGRAPHIC FACTORS, YOU HAVE THE 55 PLUS COHORT LEAVING THE LABOR MARKET AND THERE NOT ENOUGH 25 TO 55 YEAR OLDS TO MAKE UP FOR THE COHORT THAT IS WALKING AWAY.

WAGE GROWTH IS DECLINING.

WE EXPECT AS WE MOVE FORWARD BECAUSE WAGE GROWTH LAGS INFLATION, YOU SEE REALIZED INFLATION AT THE GROCERY STORE AND PEOPLE ASK FOR HIGHER WAGES.

I'M SURE YOU DEALT WITH THAT.

A LOT OF UNION CONTRACTS HAVE BEEN INCREASING.

GOING FORWARD NOW THAT INFLATION IS IN THE THREE4 PERCENT CATEGORY, WE EXPECT THAT TO ROLL OVER.

I'M NOT CONVINCED IT WILL GO BACK TO THE 2 PERCENT AREA WE SAW PRECOVID BECAUSE OF THE DEMOGRAPHIC TIGHTNESS.

IF INFLATION STAYS STICKIER WITHOUT A RECESSION, IT IS GOING COME FROM THE FACT WE DIDN'T ROUND TRIP WAGE GROWTH BACK TO A SUSTAINABLE LEVEL FOR THE FED'S GOAL AND THAT REQUIRES THE FED TO GET AGGRESSIVE.

THAT'S NOT A NEAR TERM RISK.

IN 12 MONTHS, YOU MAY HAVE THE FED NEEDING TO DO MORE IF IT HASN'T BEEN FIGURED OUT.

LASTLY, THIS IS THE SLIDE ABOUT THE DEFICITS.

IT'S ALARMING AT THE BOTTOM.

IT SHOWS WHAT IS DRIVING THE INCREASE.

A LOT WAS A DECREASE IN REVENUES.

PREVIOUS YEARS HAVE BEEN BANNER YEARS AS WE HAD THE MARKETS THE EVERYTHING BUBBLE WHEN COVID AND STIMULUS CAME OUT, CRYPTOCURRENCY, BOND, STOCK, EVERYTHING SEEMED TO SURGE, YOUR HOUSE, EVERYTHING SURGED TO NEW HEIGHT HEIGHTS.

THERE WERE A LOT OF CAPITAL GAINS TAXES BEING PAID.

WE UNWOUND THE BUBBLES WHERE BOTH STOCK AND BOND MARKET WERE DOWN 20 PERCENT.

IT IS PART DRIVEN BY THAT AND PARTLY BY LESS WAGES  AS WE SIT HERE TODAY, WE HAVE OVER A TRILLION DOLLARS ANNUAL DEBT BURDEN AT THE FEDERAL LEVEL THAT ACTUALLY SURPASSES OUR ENTIRE DEFENSE SPENDING WHICH IS OUR LARGEST DISCRETIONARY CATEGORY.

THAT GOING TO GET BIGGER.

AS WE MATURE LOW YIELDING SECURITIES AND REPLACE THEM WITH HIGHER, THE TREASURY IS PAYING THAT ON THE OTHER END AND YIELDS BACK HIGHER ACROSS THE CURVE IT WILL GET MORE COSTLY.

NEXT YEAR WE WILL SEE ONE AND A QUARTER TO $1.3 TRILLION ANNUAL INTEREST EXPENSE BURDEN WHICH IS GETTING DIFFICULT TO SUSTAIN.

MOVING TO THE PORTFOLIO.

THIS IS A HIGH LEVEL SNAPSHOT.

A MENTION OF WHERE THE CASH LEVELS ARE COMPARED TO INVESTMENTS.

GOOD NEWS IS YOUR BOOK YIELD IS CLOSING IN ON YOUR MARKET YIELD.

YOU DON'T HAVE RESIDUAL UNREALIZED LOSSES AND CATCHING UP QUICKLY WITH THE MARKET.

COMPLIANCE REPORT HERE.

OBVIOUSLY THAT IS IMPORTANT TO FOLLOW POLICY AND STATUTE.

WE TAKE THAT SERIOUSLY.

THE NEXT TWO PAGES SHOW YOU ENDED THE QUARTER AND THE WHOLE TIME DURING THE QUARTER YOU WERE IN COMPLIANCE WITH THE NECESSARY MEASUREMENTS THERE.

THIS LOOKS AT YOUR PORTFOLIOS ACROSS THE CHANGES, THE BENCHMARKS AND THE VARIOUS TITLES FOR THEM.

CASH CORE INVESTMENTS IS THE ONE WE'RE HELPING MANAGE.

YOU CAN SEE WE'RE UNDERWAY DURATION, WE'RE WINDING DOWN A FEW MATURITIES THERE AND WE'LL REENGAGE IN VESTING.

THAT SPENDING CAME AT A GOOD TIME.

WE SEE HIGHER YIELDS IN THE THREE TO FIVE YEAR AREA.

AS WE BEGIN TO ENGAGE IN THE MARKET AGAIN, THAT WILL BE QUITE A GOOD TIME.

THIS LOOKS AT VARIOUS ASSET CLASSES.

NOT MUCH TO REPORT.

THIS IS A LACK OF ACTIVITY AND A WINDING DOWN OF POSITIONS THAT DROVE THE CHANGES DURING THE QUARTER.

THIS SHOWS OVERALL BALANCES.

JUST SLIGHTLY HIGHER YEAR OVER YEAR.

PRETTY TYPICAL. NOTHING ALARMING OR NOTEWORTHY HERE.

[00:25:04]

THIS IS A PRETTY FUN REPORT IF YOU LOOK AT THE MIDDLE COLUMN THAT IS YOUR EARNED INCOME BY MONTH.

YOU CAN SEE THE RAPID RISE IN INTEREST RATES AND BOTH WHAT WE'RE DOING HERE AT GPA BUT ALSO WHAT THE TEAM DOES THERE NEGOTIATING WITH LOCAL BANKS TO GET INTEREST RATES UP TO MARKET LEVELS AND YOU'RE EARNING SIGNIFICANTLY MORE MONEY ON A MONTH OVER MONTH BASIS, AND WE EXPECT THAT TO CONTINUE BARRING A MAJOR CORRECTION IN THE RATES MARKET WHICH DOESN'T APPEAR TO BE ON THE TABLE ANY TIME SOON FROM WHAT WE CAN TELL.

THIS IS THE LAST SLIDE I WANT TO FOCUS ON.

THE BOOK YIELDS ON THE TOP RIGHT BOX, AGAIN YOU'RE SEEING RAPID IMPROVEMENTS.

ONCE WE ENGAGE THAT CASH CORE ACCOUNT AFTER WE FIGURE OUT THAT SPENDING NEED IN THE NEXT FEW MATURITIES, THAT WILL ACCELERATE RAPIDLY GIVEN MARKET YIELDS ARE IN THE FOUR AND A HALF TO FIVE AND A QUARTER FOR THE SECURITIES WE PURCHASE FOR YOUR PORTFOLIO.

I DON'T THINK I NEED TO READ THE REST GIVEN IT IS UNCHANGED BASED ON WHAT WE'RE DOING THIS QUARTER.

ANY QUESTIONS ABOUT THE PORTFOLIO, THE MARKETS OR ANYTHING ELSE IN THE REPORT? ALL RIGHT. WELL THANK YOU EVERYONE.

THANK YOU TREASURER TAYLOR AND I'LL TURN THE TIME BACK OVER.

>> THANK YOU GARRETT.

AND I, THERE IS NO OTHER QUESTIONS, THEN I FIRST DO WANT TO SAY BEFORE WE ADJOURN I MEANT TO MENTION EARLIER, THE REASON WE'RE WEARING THE SAME COLOR PINK IS IN SUPPORT OF BREAST CANCER AWARENESS MONTH.

WE WANTED TO SHOW OUR SUPPORT.

AND WITH THAT SAID, ARE THERE ANY OTHER QUESTIONS BEFORE WE ADJOURN?

>> WELL YOU COULD HAVE TOLD US AND WE COULD HAVE DRESSED IN THE SAME.

>> I'M SORRY.

>> I WAS GOING TO SAY, YEAH, I WOULD LIKE TO SEE THE CHAIRMAN IN THAT OUTFIT.

>> I'LL LOOK FORWARD TO SEEING COUNTY MANAGER AND YOURSELF.

(LAUGHTER) >> I'M OLD ENOUGH TO SELL OUT, SO SURE.

(LAUGHTER) >> OKAY.

WELL THEN WITH THAT SAID, MAY I HAVE A MOTION TO ADJOURN?

>> SO MOVED. >> WE HAVE A SECOND?

>> SECOND.

>> I WANT TO THANK YOU ALL FOR JOINING AND WE'RE ADJOURNED.

SEE YOU IN 2024, EVERYONE. >> THANK YOU.

>> THANK YOU. >> THANK GOD. >> THANK YOU SO MUCH COMMISSIONER BRUCH.

BYE EVERYBODY.

* This transcript was compiled from uncorrected Closed Captioning.