Financial Advisory Board — Naperville, IL
Date: 2023-10-30

400 S. Eagle Street
 City of Naperville Naperville, IL 60540



 Meeting Agenda

 Financial Advisory Board

Monday, October 30, 2023 6:00 PM Naperville Employee University (NEU) Room




A. CALL TO ORDER:

B. ROLL CALL:

C. PUBLIC FORUM:

D. REPORTS:
 23-1227 Welcome new student representatives Soohyun Cho and Avyay
 Parmeswaran
 23-1216 Receive the 2023 3rd quarter investment report

 23-1218 Receive the 2023 3rd quarter budget report

 23-1228 Review the proposed 2024 Annual Budget and Capital Improvement
 Program

E. NEW BUSINESS:
 23-1217 Approve the minutes of the July 24, 2023 meeting

 23-1226 Approve the tentative 2024 meeting schedule


F. OLD BUSINESS:
 23-1224 Receive the update on the Fixed Income Money Manager selection
 process and discuss the recommendation to award services to the high
 scoring vendor(s)

G. ADJOURNMENT:
 Any individual with a disability requesting a reasonable accommodation in order to
 participate in a public meeting should contact the Communications Department at least
 48 hours in advance of the scheduled meeting. The Communications Department can
 be reached in person at 400 S. Eagle Street, Naperville, IL., via telephone at
 630-420-6707 or 630-305-5205 (TDD) or via e-mail at info@naperville.il.us. Every effort
 will be made to allow for meeting participation.



City of Naperville Page 1 Printed on 10/25/2023
Financial Advisory Board Meeting Agenda October 30, 2023




City of Naperville Page 2 Printed on 10/25/2023

400 S. Eagle Street
 City of Naperville Naperville, IL 60540



 Meeting Minutes - Final

 Financial Advisory Board


Monday, October 30, 2023 6:00 PM Naperville Employee University (NEU) Room


A. CALL TO ORDER:

 Chairman Soenke called the meeting to order at 6:00 p.m.

B. ROLL CALL:

 Also present: Raymond Munch, Deputy Finance Director; Melanie Smith,
 Accountant; Mike Piotrowski, Marquette Associates; Jesus Jimenez, Marquette
 Associates; Avyay Parmeswaran, Student Representative; Soohyun Cho,
 Student Representative
 Present 6- Mark Gizzo, Gautan Grover, Edward Harvey, Michael Soenke, Curtis Williams, and
 Jeff Walker
 Excused 1- Josh McBroom


C. PUBLIC FORUM:

 No speakers

D. REPORTS:

 Welcome new student representatives Soohyun Cho and Avyay Parmeswaran

 Chairman Soenke welcomed two new Student Representatives to the Financial
 Advisory Board - Soohyun Cho and Avysy Parmeswaran.

 Receive the 2023 3rd quarter investment report

 Mr. Piotrowski and Mr. Jimenez presented the third quarter (Q3) investment
 report. Mr. Piotrowski provided a summary of financial markets and the
 economy during the third quarter. Mr. Piotrowski noted that markets were down
 by about 3% across all sectors of the market. He also noted that the economy
 continues to be more resilient than anticipated, and is being propped up by a
 strong consumer that contributed to a 4.9% increase in GDP for Q3. Mr.
 Jimenez reviewed the investment portfolio, noting a market value of $229.5
 million as of Sept. 30, 2023. Year to date, the City has positive cash flow of
 $21.5 million. In Q3, the fixed income composite returned -0.7% (net of fees), a
 slight out performance to the benchmark of -0.8%. PFM performed better than
 Loop Capital in Q3, with returns of -0.6% and -0.9% respectively. Deputy
 Director Munch noted that the City continues to earn high interest on cash held
 in Wintrust Bank accounts, with current interest rates above 5%.



City of Naperville Page 1 Printed on 2/2/2024
Financial Advisory Board Meeting Minutes - Final October 30, 2023

 Receive the 2023 3rd quarter budget report

 Deputy Director Munch summarized the budget through Q3 of 2023.

 Review the proposed 2024 Annual Budget and Capital Improvement Program

 Deputy Director Munch provided an overview of the proposed 2024 Annual
 Budget.

E. NEW BUSINESS:

 Approve the minutes of the July 24, 2023 meeting

 Chairman Soenke called for a motion to approve the minute. Motion made by
 Williams, seconded by Gizzo. Motion approved by voice vote.

 Approve the tentative 2024 meeting schedule

 Chairman Soenke called for a motion to approve the tentative schedule. Motion
 made by Walker, seconded by Grover. Motion approved by voice vote.

F. OLD BUSINESS:

 Receive the update on the Fixed Income Money Manager selection process and discuss
 the recommendation to award services to the high scoring vendor(s)
 Deputy Director Munch provided a status update on the Fixed Income Money
 Manager request for proposals process. The City received proposals from 15
 qualified vendors. The top five vendors were interviewed. After the interview
 phase concluded, the RFP scoring committee ranked the vendors with the top
 two being Mesirow and PFM Asset Management. Loop Capital ranked third and
 would not retain a portion of the City's portfolio unless the manager relationship
 was expanded. The board discussed the merits of maintaining two money
 managers versus one or even three managers. There was consensus that
 keeping two managers is the best course. Moving to a one manager relationship
 is not preferred from a security perspective and a three manager relationship
 has no definitive benefits and results in higher costs. The board agreed that
 moving forward with Mesirow and PFM is recommended. The Board also
 concurred that the entire Loop Capital portfolio can be transitioned to Mesirow,
 with the understanding that City staff will evaluate cash flow needs for 2024 and
 may direct a higher amount be held in cash.

G. ADJOURNMENT:
 Chairman Soenke called for a motion to adjourn the meeting at 7:35 p.m. Motion
 made by Harvey, seconded by Walker. Motion approved by voice vote.




 /S/Raymond Munch
 Raymond Munch
 Deputy Finance Director


City of Naperville Page 2 Printed on 2/2/2024
Financial Advisory Board Meeting Minutes - Final October 30, 2023




City of Naperville Page 3 Printed on 2/2/2024