2010 03 10 IAB MinutesINVESTMENT ADVISORY BOARD
MEETING
MARCH 10, 2010
CALL TO ORDER
Regular meeting of the La Quinta Investment Advisory Board was called to
order at the hour of 4:00 p.m, by Chairman Ross, followed by the Pledge of
Allegiance.
PRESENT: Board Members Moulin, Ross and Rassi
ABSENT: Board Member Park
OTHERS PRESENT: John Falconer, Finance Director and Monica Radeva,
Secretary
II PUBLIC COMMENT -None
III CONFIRMATION OF AGENDA -Confirmed
IV CONSENT CALENDAR
A. Approval of Minutes of Meeting on February 10, 2010 for the
Investment Advisory Board.
MOTION: It was moved by Board Members Moulin/Rassi to
approve the minutes of February 10, 2010. Motion carried
unanimously.
V BUSINESS SESSION
A. Transmittal of Treasury Report for January 2010
Mr. Falconer presented and reviewed the staff report advising the
Board that the annual cash balance for the City ended slightly over
5191 million, with an increase of S25 million due to the first
installment of property taxes received from the County of
Riverside. Mr. Falconer further advised that previously reported
page 8 reflects the temporary purchase of Federal Home Loan bank
GSE's in the amount of 519 million, which is due to mature in
April; upon maturity, these funds will be rolled over temporarily for
an August maturity, at which time the funds will be used to pay
result of the temporary 519 million investment, the overall portfolio
yield ended at .43% with the pooled investment yield at .46%, in
comparison to the previous year's yield at 1.23%, which reflects
the interest rate environment. Mr. Falconer also advised that the
City holds a Certificate of Deposit with La Jolla Bank; in February
the bank was acquired by OneWest Bank through an agreement
with the Federal Deposit Insurance Corporation (FDICI, which has
no affect on the City's CD. In addition, he advised that LAIF
recently increased their maximum from 540 million to 550 million
per account.
Chairman Ross requested that the following correction be made to
page 3, last paragraph, and third sentence:
The Treasurer plans to invest these funds in either short term Farm
Credit (GSE) or Federal Home Loan Bank ]~}'(GS.E) L..]
In response to Board Member Moulin, Mr. Falconer clarified that a
"bullet," is a type of investment and is similar to that of a T-Note
and is paid semi-annually. Mr. Falconer also clarified that the
balances on page 8 were the LAIF quarterly interest earnings for
the City and the RDA accounts.
General discussion ensued amongst the Board and Staff regarding
interest earnings and the scheduled payments dates of the pass-
through payments.
MOTION - It was moved by Board Members Moulin/Rassi to
approve, receive and file the Treasury Report for January 2010.
Motion carried unanimously.
B. Continued Discussion of the Investment Advisory Board 2009-
2010 Work Plan and 2010-2011 Investment Policy
Mr. Falconer advised that the Investment Policy was distributed at
the previous month's meeting for the Board's review and any
recommended changes would be discussed. He further advised
that staff made the necessary changes to the glossary according to
the MTA's glossary. Mr. Falconer further advised that after
considerable consideration to alternatives to LAIF, staff had no
recommendations at this time.
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Mr. Falconer advised of the minor changes made by staff to the
glossary: the definition of "Repurchase Agreement", the maximum
amount to LAIF as well as a few cosmetic changes.
The Board reviewed the changes/deletions to the 2010-2011 with
those changes being reflected in the draft investment policy.
MOTION - It was moved by Board Members Rassi/Moulin to
continue the review of the 2009-2010 Work Plan and the 2010-
2011 Investment Policy. Motion carried unanimously.
C. CMTA Conference -Sacramento, California, April 20 - 23, 2010
Mr. Falconer presented the staff report advising that the Annual
California Municipal Treasurers Association Conference will be held
April 20 - 23, 2010 in Sacramento, California. Mr. Falconer
further advised that the City does provide for one staff member
and two Board Members to attend.
In response to Chairman Ross, Mr. Falconer advised the Board of
his tentative travel plans. He further advised that if no Board
Members are able to attend, staff will bring back the Conference
materials for the Board to review.
MOTION - It was moved by Board Members Rassi/Moulin to have
two Investment Advisory Board Members attend the CMTA
Conference in Sacramento, CA. Motion carried unanimously
VI CORRESPONDENCE AND WRITTEN MATERIAL
A. Month End Cash Report and other selected Financial Data -
February 2010
Mr. Falconer presented and reviewed the staff report advising that
page 3 reflects the LAIF Performance reporting with the yields
currently at .53% with the average maturity at 222 days with the
City's average slightly below and the PMIA loan is at 17.65%. In
addition Mr. Falconer further advised that in February, the City had
its mid-year budget review; page 12 reflects the City's budgeted
projections, with a decline in the projected property taxes by 5%,
TOT taxes declined by 5% to 6% and sales taxes declined for the
year by 15%, which is a result of the current economy.
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In response to Chairman Ross, Mr. Falconer updated the Board on
the current status of the City's property taxes owed and clarified
why the City is considered a "teeter" city.
General discussion ensued amongst the Board regarding Prop 8 and
Prop 13 and their affects on current assessed value of City homes.
Noted and Filed
B. Pooled Money Investment Board Reports -December 2009
Mr. Falconer advised that page 1 reflects a comparison of the
pooled money with an increase in the state's pooled money from
December of 2008 at S59,947,044,000 to December 2009 at
$66,354,589,000.
Noted and Filed
VII BOARD MEMBER ITEMS -None
VIII ADJOURNMENT
MOTION - It was moved by Board Members Moulin/Rassi to adjourn
the meeting at 5:11 p.m. Motion carried unanimously.
Su itte ; - .~
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Vianka Orrantia,
Senior Secretary
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