2002 01 09 IAB Minutes INVESTMENT ADVISORY BOARD
Meeting
January 9, 2002
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 Chairman Osborne followed by the Pledge of Allegiance.
PRESENT: Board Members Osborne, Moulin, Olander, Lewis and
Chairman Mahfoud
ABSENT: Board Members Felice
OTHERS PRESENT: John Falconer, Finance Director and Vianka Orrantia,
Secretary
II PUBLIC COMMENT - None
III CONFIRMATION OF AGENDA
IV CONSENT CALENDAR
1. Approval of Minutes of Meeting on December 12, 2001 for the Investment
Advisory Board.
MOTION - It was moved by Board Members Lewis/Olander to approve the
Minutes of December 1 2, 2001. Motion carried unanimously
Investment Advisory Board January 9, 2002
Minutes
V BUSINESS SESSION
A. Transmittal of Treasury Report for November 2001
Mr. Falconer advised the Board that he recently rolled over $5 million in
commercial paper.
Board Member Osborne asked if there was a difference between
commercial bonds and commercial paper, other than the time frame.
Board Member Lewis replied that commercial paper is discounted.
Chairman Mahfoud -inaudible
Board Member Osborne asked would staff be able to extend maturity
from two years to five years, and if so, is this allowable by the State?
Mr. Falconer - inaudible. Board Member Osborne stated if the Board
stayed in the five-yield realm, and added commercial bonds, would the
rating be safer? Board Member Lewis advised the Board that the majority
of commercial bonds are triple "A" rated.
Board Member Osborne advised the Board that with the current rates, the
Board would possibly have to look at other options besides those in the
current investment policy.
Board Member Moulin - inaudible
Mr. Falconer -inaudible
Board Member Olander asked the status of the City Council's review on
the current budget. Mr. Falconer replied that the Council is scheduled to
review the budget the first meeting in February.
Board Member Moulin advised the Board that on page 5, of the
Treasurer's report, it appears that the Board is paying par for Fannie Mae
and Freddie Mac. Mr. Falconer advised the Board that staff is currently
paying at a discounted rate. Board Member Moulin asked if the schedule
should reflect th-e discounted rate that is being paid? Mr. Falconer stated
that on page 5 of the Treasurer's report the discount rate is reflected
2
Investment Advisory Board January 9, 2002
Minutes
V BUSINESS SESSION
A. Transmittal of Treasury Report for November 2001 (cont'd)
under Amortized Premium/Discount. Board Member Lewis suggested a
cosmetic change to the schedule. Board Member Lewis suggested
changing the heading "Par" label vs. a principal heading and another
minor cosmetic change from recap to investment change. Board Member
Moulin - inaudible. Mr. Falconer - inaudible. Board Member Lewis -
inaudible.
MOTION - It was moved by Board Members Moulin/Lewis to review,
receive and file the Treasurers Reports for November 2001. Motion
carried unanimously.
VI CORRESPONDENCE AND WRITTEN MATERIAL
A. Month End Cash Report and other selected Financial Data - December
2001
Board Member Osborne asked if there was plenty of commercial paper
with the ratings the City needs? Mr. Falconer - inaudible.
Board Member Osborne stated that looking at the budget vs. actual line
items and other revenues there is a decrease of ~ 1.5 million, and asked
if that is due to the current economy. Mr. Falconer replied that he would
have to look at the budget in more detail, but that he believes that the
actual revenues will be closer to budget at mid-year.
Board Member Moulin - inaudible.
Chairman Mahfoud asked why the Building and Safety Department had
such a big hit in their Capital and Expenditures? Mr. Falconer replied that
every year, in March and September, out of the Building and Safety
Budget, payment for the City Hall is made.
Noted and Filed
B. Pooled Money Investment Board Reports - October 2001
Investment Advisory Board January 10, 2001
Minutes
Mr. Falconer advised the Board that on page 13 of the Pooled Money
Report it does reflect Fannie Mae discounted rates.
Board Member Moulin - inaudible.
Additional discussion ensued regarding the extension of maturity from
two years to five between Board Members. In response to Board
Member Moulin, Mr. Falconer advised the Board that two different types
of software had been investigated, to track maturities and were deemed
to be too expensive.
Board Member Moulin - inaudible.
Board Member Olander asked what percentages or amounts would be
available for two to four year maturity? Mr. Falconer replied that staff
would have run some type of performa and come with an amount in the
City reserve if the City extended the maximum maturity length. Board
Member Olander - inaudible. Board Member Moulin - inaudible. Board
Member Lewis stated that you do not want to chase rates. Board
Member Moulin - inaudible. Mr. Falconer - inaudible.
Noted and Filed
VII BOARD MEMBER ITEMS - None
VIII ADJOURNMENT
MOTION - It was moved by Board Members Olander/Lewis to adjourn the meeting at
6:20 p.m. Motion carried unanimously.
Submitted by,
Vianka Orrantia
Secretary