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1997 05 14 IAB Minutes INVESTMENT ADVISORY BOARD Meeting May 14, 1997 I CALL TO ORDER Regular meeting of the La Quinta Investment Advisory Board was called to order at the hour of 5:30 P.M. by Chairwoman Brown, followed by the Pledge of Allegiance. PRESENT: Board Members Osborne, Lewis, Rodriguez, Sales and Chairwoman Brown ABSENT: Board Members Frame and Irwin OTHER PRESENT: John Falconer, Finance Director and Debbie DeRenard, Secretary II CONFIRMATION OF AGENDA- Confirmed III PUBLIC COMMENT- None IV CONSENT CALENDAR A. Approval of Minutes of Meeting on April 9, 1997 for the Investment Advisory Board. Chairwoman Brown advised that Staff issued a revised copy of the Investment Advisory Board Minutes for April 9, 1997. MOTION - It was moved by Board Member Lewis/Sales to approve the minutes as amended for the April 9, 1997 Investment Advisory Board. Motion carried unanimously. Investment Advisory Board May 14, 1 997 Minutes V BUSINESS SESSION A. Transmittal of Treasury Report for March 31, 1997 In response to Board Member Sales, Mr. Falconer advised that he does invest funds to further diversify the portfolio. Mr. Falconer advised that a change to the Cash Flow Analysis (Page 8) has been made. The column at the bottom of the page that was requested by Board Member Frame at the last meeting was added. This column shows major changes from the previous report. In response to Board Member Osborne, Mr. Falconer advised that he doesn't foresee any cash flow problems within the upcoming 97/98 Budget. He further advised that he doesn't see the cash flow portfolio going below $20 million. MOTION -It was moved by Board Members Sales/Lewis to Review, Receive and File the Treasurers Report dated March 31, 1997. Motion carried unanimously. B. Fiscal Year 97/98 Investment Policies Chairwoman Brown presented the Staff Report and advised that she requested information from Staff regarding the City Council action on the LAIF percentages. She advised that the City Council reduced and approved the LAIF percentage at 40%, and questioned if any of the Board Members could recall any other discussions regarding LAIF. Mr. Falconer presented the Investment Policy and advised that all changed are "redlined." He advised that he has included as proposed additions, the State of California allowed limits on investable surplus funds and the City limitations on Pages 9, 10 & 11. He further advised that on Page 17 a column has been inserted to show State maximum surplus funds. This column will detail the maximum surplus funds, what the State allows and the City's maximums. On Page 21 under the Bond Trustee the Assessment Districts - First Trust has been added as an approved financial institution. Investment Advisory Board May 14, 1997 Minutes In response to Chairwoman Brown, Mr. Falconer advised that the Investment Policy mandates that a meeting be held with the City Manager, City Attorney, City Treasurer and the Investment Advisory Board to review the Investment Policy. In response to Chairwoman Brown, the Board members present unanimously agreed that the Investment Policy was a good policy. Board Member Sales questioned if the Board should agendize selecting or designating formal Board Member representation of the Investment Policy to the City Council. Mr. Falconer advised that this could be part of the motion. Board Member Lewis advised that when he was Chairman he attended the meeting when the Investment Policy was approved. Mr. Falconer advised that he will include representation at the City Council Meeting for the presentation of the Investment Policy as an agenda item for the June meeting. MOTION -It was moved by Board' Members Lewis/Osborne to continue the discussion of the Fiscal Year 97/98 Investment PolicY to the June 1997 meeting. Motion carried unanimously. C. FY 97198 Work Plan Chairwoman Brown advised the Board that Staff is requesting direction regarding the 97/98 Work Plan. In response to Board Member Sales, Mr. Falconer advised that'the City has a Staff Member that does help in the area of investment strategy. He further advised that all investment transactions are performed by the Treasurer. Mr. Falconer advised that one of the reasons that this item was placed on the agenda was so that staff could get an idea of any upcoming major expenditures by the Board so that they may be placed in the 1997/98 budget. Investment Advisory Board May 14, 1997 Minutes In response to Board Member Sales, Mr. Falconer advised that he views an investment strategy as defining the Boards feeling regarding investments. Board Member Lewis advised that developing an investment strategy would be the only major undertaking in the future. Board Member Sales advised that he thinks the time is coming when the Investment Advisory Board will only need to meet on a quarterly basis. Chairwoman Brown advised that she perceives a work plan as a plan for prioritizing future investments. Board Member Lewis advised that the Board needs to be careful not to start directing investment, but that to continue to act as an advisory board. If the City had an strategy that indicates what type of investment guidelines should be used, staff would have direction. Board Member Osborne advised that a table could be used that would indicate the type of investments, percentages and investment order that the Board feels should be used. In response to Board Member Sales, Mr. Falconer advised that investment projections have not been incorporated into the cash flow schedule of the Treasurers Report. He further advised that Staff analyzes within each month when the cash flow is going to be Iow/high. Chairwoman Brown questioned if Staff can come back to the Board in the future regarding managing the day to day investment, and how staff prioritizes investments. Board Member Lewis advised that he sees this agenda item as not so much as developing an investment strategy, but that Staff is asking for any projects that the Board is planning on addressing in the next fiscal year. So rather than work on the strategy at this meeting, the Board needs to give staff a list of upcoming projects. Chairwoman Brown advised that the investment strategy would be the next likely step. 4