2012 05 09 IAB MinutesINVESTMENT ADVISORY BOARD
Meeting
May 9, 2012
I 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: Board Members Mortenson, Blum and Spirtos
ABSENT: Board Member Park and Donais
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 April 11, 2012 for the Investment Advisory
Board.
MOTION - It was moved by Board Members Blum /Mortenson to approve the
Minutes of April 11, 2012. Motion carried unanimously.
V BUSINESS SESSION
A. Transmittal of Treasury Report for March 2012
Mr. Falconer presented and reviewed the staff report for the month of March
advising the Board that the portfolio had decreased by $7.74 million ending the
month at $172.94 million. The primary reason for the decrease was due to a
debt service payment that was due on March 1" in the amount of $6.8 million,
in addition to $2.5 million in Capital Improvement Projects. The projects
consisted of $1.76 million for the Coral Mountain apartments and $302,000 for
the Adams Street Bridge Project. Mr. Falconer also advised that the average
maturity had increased by two days ending the month of March at 74 days.
Mr. Falconer further advised on the purchase of two commercial paper pieces
totaling $10 million and one Federal Home Loan Bank Discount Note totaling $9
million. The overall portfolio performance had a two basis point decrease from
the prior month and ended the month at .35 %. Mr. Falconer noted that at this
time last year, the portfolio was yielding .45% which reflects the current
interest rate environment. Mr. Falconer further noted that despite the low
market rates, the City's portfolio continues to remain steady with current
investments in Rabobank, LAIF and two -year T -Bill, but will see a decline in
November upon maturity of the two -year T -Bill.
In response to Board Blum, Mr. Falconer advised on the City's upcoming budget
and the dissolution of the redevelopment agency's impact to the City's finances.
General discussion ensued amongst the Board and staff regarding the City's
budget.
In response to Chairperson Spirtos, Mr. Falconer clarified that the capital
projects funds listed on page 8 of the report represents "improvement" funds
and developer deposits that have been collected for future capital projects. (Mr.
Falconer noted that these funds are to report the capitalization of the City's
assets according to GASB standards.) Mr. Falconer further clarified that the
funds will remain until the completion of the projects, and /or future projects;
and the City's requirements have been satisfied.
In response to Chairperson Spirtos, Mr. Falconer advised that staff will review
and make any necessary corrections accordingly to the T.O.T. for the month of
August reflected on page 9 of the report and report back to the Board at the
next scheduled meeting.
Chairperson Spirtos requested a title correction be made to page 8, first column,
listed under revenues, Redevelopment Agency should now read Successor
Agency to the Redevelopment Agency.
MOTION — It was moved by Board Members Mortenson /Blum to review,
receive, and file the Treasurers Report for March 2012. Motion carried
unanimously.
VI CORRESPONDENCE AND WRITTEN MATERIAL
A. Month End Cash Report — April 2012
Mr. Falconer presented and reviewed the month -end cash report for the month
of April advising the Board that the Wells Fargo SilverRock Resort Sweep
Account ended the month at $37,000 netting its first profit. He further advised
that LAW remained at 36 basis points and Treasuries slightly increasing in price.
In response to Chairperson Spirtos, Mr. Falconer advised that the information for
the Pooled Cash is derived from page 2 of the Treasurer's Report.
Noted and Filed
B. Pooled Money Investment Board Reports — March 2012
Noted and Filed
VII BOARD MEMBER ITEMS
General discussion ensued amongst the Board and staff regarding City's forecasting.
Chairperson Spirtos reported on the City of La Quinta's birthday celebration and the
proposed cuts to the City's budget.
General discussion ensued amongst the Board and staff regarding "Gann" limits.
VIII ADJOURNMENT
MOTION - It was moved by Board Members Blum /Mortenson to adjourn the meeting at
4:54 p ctv: upon carried unanimously.
Vianka Orrantia
Senior Secretary