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SECTION 115 TRUST FUND In June 2018, the City Council approved the investment of $28.0 million of various reserves into a Section 115 Trust Fund to help smooth the pension liabilities which are expected to grow in the long run. The investment is made into two separate portfolios, the first one for $6.7 million into a Conservative portfolio which is available to pay the annual unfunded liabilities if necessary, and the second one for $21.3 million into a long-term Capital Growth portfolio. In February 2020, City Council authorized Finance staff to deposit to and withdraw from the Conservative portfolio an additional amount up to the total annual required CaIPERS payment. In March and June 2020, two additional $5.0 million contributions were deposited into the Conservative portfolio for a total of $16.7 million deposited into the Conservative portfolio. As presented in the chart below, the Conservative portfolio balance was $18.24 million at the end of September 30, 2023, an increase of $0.03 million from the prior quarter. The Conservative portfolio investment return for the quarter ended September 30, 2023 was 0.25 percent, and the inception-to-date annualized return was 3.03 percent. Conservative PARS plan Account Balance $20 5 3$17.32 18.17518.32518.57$18.55518.66 $17 5 $17.48 .69 $18 18.14$17.6 517.67518.03518.21$18.24 $16 $14 S11.8`a S12 0 $10 $7.23 58 56.70 56.74 $6.67 $6.94 $7.06 $7.11 56 $4 S2 s0 � O O O O ti ti rl N N N N M M M N N N N N N N N N N N ti C C. 8 CL CL ^ a a rt ^ v a 3 N O � N G � V1 O � J'.