Loading...
1995 01 11 IAB Minutes INVES~4EIq? ADVISORY BOARD MINI~ES JANUARY 11, 1995 I ~&T.T. TO ORDER Regular meeting of the La 0uinta Investment Advisory Board was called to order at the hour of 5:30 P.M. by Chairman Lewis, followed by the Pledge of Allegiance. PRESENT: Board Members Gilreath, Irwin, Sales and Chairman Lewis ABSENT: Board Member Brown OTHERS PRESENT: Thomas Genovese, City Manager, John Risley, Accounting Supervisor, Debbie DeRenard, .Secretary II CONFIRMATION OF AGENDA Confirmed III PUBLIC COMMENT None IV CONSENT CALENDAR A. Approval of Investment Advisory Board Minutes of December 14, 1994. MOTION - It was moved by Board Members Gilreath/Irwin tO approve the Minutes of December 14, 1994. Motion carried unanimously. V BUSINESS SESSION A. Transmittal of Treasurers Report dated August 31, 1994. Board Member Irwin commented that much effort was taken to prepare and review the statements and he is very 'grateful for the effort. john Risley advised that it was a joint effort between himself and Account Technician Geniene Croft. In response to Board Members Sales, Mr. Risley advised Investment Advisory Board 2 January 11, 1995 Minutes that the bank reconcilement balances. MOTION - It was moved by Board Members Irwin/Gilreath to approve the Treasurers Report dated August 31, 1'994. Motion carried unanimously. B. Transmittal of Treasurers Report dated September 30, 1994. MOTION - It was moved by Board Members Irwin/Gilreath to approve the Treasurers Report dated September 30, 1994. Motion carried unanimously. C. Transmittal of Treasurers Report dated October 31, 1994. Board Member Sales questions why the Treasurers Reports do not balance. Mr. Risley explained the October Treasurers Report to Board Member Sales, noting the pooled cash adjusting entry. MOTION - It was moved by Board Members Sales/Gilreath to approve the Treasurers Report dated October 31, 1994. Motion carried unanimously. D. Transmittal of Treasurers Report dated November 30, 1994. In response to Board Member Sales, Mr. Risley advised that he would provide a Balance Sheet as of Decembe~ 31, 1994 for the Board. MOTION -It was moved by Board Members Sales/Gilreath to approve the Treasurers Report dated November 30, 1994. Motion carried unanimously. VI ~OARD MEMBER COMMENTS Board Member Sales advised that he is still concerned whether the City is in compliance with the Investment Policy. He advised that he read the memo from John Risley explaining the Investment Policy being in compliance. It appears that Mr. Risley may have been looking at total available assets versus available fUnd investments. Mr. Risley advised that in reviewing the Investment Policy, the maximum percentage, it interprets in context of the total portfolio. Investment Advisory Board 3 January 11, 1995 Minutes Board Member Sales advised that he interprets it as total portfolio, and the total portfolio would exclude things that you do not have any control over, as far as investments are concerned. Thomas Genovese, City Manager advised that in theory the City would have control over restricted investments. They are restricted because the bond indentures say you must follow certain guidelines, we flow into their process. The City could find other types of investments. Board Member Sales advised that it was the understanding of the Board that the City has no control over the restricted cash items. Mr. Risley advised that the use of the funds are restricted, but the direction ~of investment of the funds within the guidelines can be changed by the City. The City can choose another trustee to handle the funds within the parameters of what can be invested. Board Member Sales advised that at one point the Board agreed that the City was out of compliance with the Investment Policy. Chairman Lewis advised that at the time the Investment Advisory Board thought the City was not in compliance with Investment Policy, the City had most of their funds invested in LAIF. He further advised that he did not recall the City having the funds in the construction account. Mr. Genovese advised that the funds have been in the Construction since 1992 and are derived from the 1992 Project Area NO. 2 Bond issue. In response to Board Member Sales, Mr. Risley advised that the Bond Proceeds are from the Project Area No. 2 Redevelopment Agency Agreement. This Agreement is with TDC for the development of the Infrastructure at the Walmart Center. In response to Board Member sales, Mr. Genovese advised that this infrastructure will be required as soon they produce the Owner Participation Agreement (OPA). Board Member Irwin advised that the Internal Revenue Services places a lot Of time-period complex requirements as to hOw funds such as these are reinvested. The onus is not placed on the City directly, but rather on the City's investors. Investment Advisory Board 4 January 11, 1995 Minutes In response to Board Member Irwin, Mr. Genovese advised that the City does take advice from Bond Counsel. He further advised that this very issue was recently reviewed. The City is not in any danger at this point in relation to this project. Mr. Risley added that the City engages professionals from Municipal Financial Services for Arbitrage Services on the Bond Issues. Board Member Irwin commented.that after reviewing the 1992/93 LAIF report he feels comfortable with the City investing in LAIF. Mr. Risley advised that at the next meeting he will bring back a recap of the indenture agreements and what is available to be invested. Mr. Genovese added that Staff will determine what'the yield restrictions are. Discussion continued with Mr. Risley advising that he would bring back the investable funds and a summary of any restrictions that are in the trust agreement and/or the tax restrictions. Board Member Sales requested a copy of the final report of the Arbitrage. The Board Members thanked Mr. Genovese for being present. Mr. Genovese advised that the Finance Directors position should be filled by the first of March. 'VII ADJOURNMENT MOTION - It was moved by Board Members Sales/Gilreath to adjourn the meeting. Motion carried unanimously.