2011 09 14 IAB MinutesINVESTMENT ADVISORY BOARD
Meeting
September 14, 2011
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 Chairperson Spirtos followed by the Pledge of Allegiance.
PRESENT: Chairperson Spirtos, Board Members Mortenson, Blum,
Donais and Park (4:04)
ABSENT: None
OTHERS PRESENT: John Falconer, Finance Director and Vianka Orrantia, Senior
Secretary
II PUBLIC COMMENT - None
III CONFIRMATION OF AGENDA - Confirmed
IV CONSENT CALENDAR
1. Approval of Minutes of Meeting on July 13, 2011 for the Investment Advisory
Board.
Board Member Spirtos requested that the following correction be made to page
2, Item V. Consent Calendar, "Motion" should read as follows:
Motion — It was moved by Board Members Blum /Spirtos to
approve the Minutes of June 8, 2011 rd er l 1...I
MOTION - It was moved by Board Members Blum / Donais to approve the
Minutes of July 13, 2011 as amended. Motion carried unanimously.
1
V BUSINESS SESSION
A. Transmittal of Treasury Report for June and July 2011
Mr. Falconer presented and reviewed the staff report for the month of
June advising the Board that the cash balance had increased by $28.9
million ending the month at $190.1 million. Mr. Falconer further advised
that the increase in net proceeds was due to the Governor's
consideration to eliminate the Redevelopment Agencies; as a result the
City issued two taxable bonds giving flexibility for cash if needed. Mr.
Falconer also advised that issuance of the bonds does not impact the
City's credit rating.
The two bonds issued by the City were for Project Area No. 2 for
$6,000,000, with a commitment from the City to Torre Nissan for
upgrades and improvements of $1,500,000; and the Housing Authority
Project Area No. 2 for $28,850,000 for capital improvements and the
purchase of several properties in the Village. The titles of these
properties were transferred from the Redevelopment Agency over to the
City.
Mr. Falconer advised that page 7 reflects the maturity of existing bond
proceeds with staff rolling over the proceeds into mutual funds. The
portfolio continues to remain the same at .53 %, with investments
remaining in money market funds.
Mr. Falconer advised the Board that during the City's audit an unrealized
gain of $269,103, which was reflected in the Financial Statements as
interest income under GASB 31 marking to market requirements, was
reported by the auditors and due to GASB 31 Standards the gain would
have to be reported.
General discussion ensued amongst the Board and staff regarding GASB
31.
In response to Chairperson Spirtos, Mr. Falconer clarified the footnote on
page 9 in reference to the Museum expenses.
In response to Board Member Blum, Mr. Falconer clarified the difference
between taxable and non- taxable bonds.
2
MOTION — It was moved by Board Members Blum /Park to review,
receive, and file the Treasurers Report for June 2011. Motion carried
unanimously.
Mr. Falconer presented and reviewed the staff report for the month of
July advising the Board that page 2 reflects a decrease in the LAIF
balance due to the transferring of funds into a Rabobank interesting
bearing account, which allows the City same day liquidity; as well as a
reinvestment of a CD which was rolled over to One West Bank. Mr.
Falconer further advised that the portfolio was down by $3.4 million due
to the following expenditures: $1.2 million in Police expenses, $1.09
million in franchise fees paid to Burrtec, $570,000 for one time retiree
costs, $407,000 for general liability coverage as well as various capital
improvement projects costs.
Mr. Falconer commented that the bank service costs for the month of
July were $1,631 which resulted in a net decrease of approximately
$400 from the prior month due to the implementation of the new bank
contract. He also commented that Rabobank is currently paying 51 basis
points and as the City's current commercial paper investments mature
the funds would be reinvested into the Rabobank interest bearing
account.
MOTION - It was moved by Board Members Mortenson /Blum to review,
receive, and file the Treasurers Report for July 2011. Motion carried
unanimously.
VI CORRESPONDENCE AND WRITTEN MATERIAL
A. Month End Cash Report — August 2011
Mr. Falconer advised the Board of a decrease on page 2 to the LAIF account due
to the payment of the debt service payment due on September 1, 2011. Mr.
Falconer further advised that the current average daily yields were at .37 %,
with both the U.S. Treasury Bills and Note rates at historical low.
Noted and Filed
N
B. Pooled Money Investment Board Reports - May and June 2011
Mr. Falconer commented that the LAIF portfolio activity was slightly down from
the previous year and they had extended their maturities out to 237 days.
Noted and Filed
VII BOARD MEMBER ITEMS - None
VIII ADJOURNMENT
MOTION - It was moved by Board Members Blum /Park to adjourn the meeting at 4:38
p.m. Motion carried unanimously.
itted
Vianka Orrantia
Senior Secretary
4