Loading...
1997 11 12 IAB Minutes INVESTMENT ADVISORY BOARD Meeting November 12, 1997 I CALl TO ORDFR Regular meeting of the La Quinta Investment Advisory Board was called to order at the hour of 5:30 P.M. by Chairman Sales, followed by the Pledge of Allegiance. PRESENT: Board Members Brown, Frame, Irwin, Lewis, Osborne and Chairman Sales ABSENT: One (1) Vacancy OTHER PRESENT: John Falconer, Finance Director and Debbie DeRenard, Secretary II CONFIRMATION OF AGI=NDA- Confirmed III PURLIC COMMFNT - None IV CONSENT CAI FNDAR A. Approval of Minutes of Meeting on October 8, 1997 for the Investment Advisory Board. MOTION - It was moved by Board Members Lewis/Osborne to approve the Investment Advisory Board minutes of October 8, 1997. Motion carried unanimously. V. BUSINFSS SFSSION A. Transmittal of Treasury Report for September 1997 Mr. Falconer advised that he worked with Board Member IrWin and together they rearranged the cash flow analysis. Some of the detail was deleted to allow for the page to be more legible and meet the objectives for showing net changes. MOTION - It was moved by Board Members Lewis/Osborne to approve, received and file the Treasury Report for September 1997. Motion carried unanimously. Investment Advisory Board November 1 2, 1 997 Minutes B. Investment Plan Mr. Falconer advised that the major change from last month was to look at a snapshot of what the rates on investments were on a certain day. He further advised that he spoke with one of the Broker/Dealers to gain some information on spreads. Board Member Frame advised that for fifteen dollars per year the City can receive a Federal HR417 that is distributed weekly. This report shows the day, prior week and prior month for all rates. In response to Mr. Falconer, Board Member Frame advised that he would send him information on the HR417. Board Member Irwin commented that in regards to the Broker Dealer current market quotes attached, they were not as consistent as he thought they would be. Board Member Frame added that it was nice to be able to review the quotes. He further advised that the City has certain investment vehicles and it's helpful to be able to review the spreads. Mr. Falconer advised that if the Board has certain benchmarks that they would like to see displayed they can be incorporated into the report. Mr. Falconer advised that on the LAIF report the effective yield is listed and can be summarized. He further advised that he could obtain information from the Internet that would be more timely. Chairman Sales advised that for this fiscal year it looks like the City is covered. Mr. Falconer advised that there might be up to three million maximum that would need to be invested as a result of receiving the property tax proceeds. Board Member Irwin advised that if the City obtains 73 basis points - that would be good experience. Investment Advisory Board November 12, 1 997 Minutes BOard Member Osborne advised that guidelines could be put in place so that no more than three million is invested, no more than one million on any one note and maturity time is less than 30 days and A1 P1 rated. Mr. Falconer advised that on the October 8th staff report on page 5, it lists the LAIF cash balances and the months that funds might need to be invested. Mr. Falconer advised that in purchasing commercial paper, the broker/dealer presents an inventory list of available investments for the day. In response to Chairman Sales, Mr. Falconer advised that with the current Interest rates, investing in 2 or 5 years would not make a difference. He further advised that he would invest as far out as possible and doesn't see the need to invest greater than two years at this time. In response to Chairman Sales, Mr. Falconer advised that he would be the Staff person that would review and choose an investment in commercial paper. Board Member Irwin stated that when the City reviews the investments for commercial paper, he would also like the treasuries and T-bills reviewed during the process. MOTION - It was moved by Board Members Osborne/Brown to accept the Investment Plan dated November 12, 1997 as submitted by Staff. Motion carried unanimously. VI CORRFSPONDI=NCE AND WRITTI=N MATI=RIAI A. Month End Cash Report - October 1997 Noted and Filed B. Pooled Money Investment Board Reports -July and August 1997 Noted and Filed 3 Investment Advisory Board November 1 2, 1997 Minutes VII ROARD MEMBFR ITEMS A. Next Board Meeting Date MOTION - It was moved by Board Members Lewis/Brown to cancel the December meeting and have the next scheduled meeting on January 14,. 1998. In response to Board Member Osborne, Mr. Falconer advised that he would call each City and request a copy of their treasurers report and present it to the Board in January. VIII ADJOURNMENT MOTION - It was moved by Board Members Lewis/Brown to adjourn the meeting at 6:30 P.M.. Motion carried unanimously.