HomeMy WebLinkAboutInvestment Committee Minutes 2018-01-22INVESTMENT COMMITTEE MEETING MINUTES
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The Investment Committee held a regular meeting on January 22, 2018 at 4:14 p.m. at City Hall in
Friendswood, Texas. The following members were present:
Larry Collison
Katina Hampton, Investment Officer
Rhonda Bloskas, DeUuL� Irivestment OffiCer
Allan Rasmussen was absent.
1. • meeting minutes from May 1, 2017 and July 24, 2017 were reviewed.
- Bob made a motion to approve both sets of minutes and Larry seconded the motiom
- motion • unanimously
2. The Committee reviewed and discussed the quarterly investment reports for the periods ending
September 30, 2017 and December 31, 2017.
- Katina reported that during the two quarters under review five long-term securities had
either been called or matured.
- Bob stated that rates are up just enough that securities are likely not to be called. Rates
have been increasing since July and there is a good likelihood that rates will increase in
the future. However, ten-year rate really hasn't moved in the last ten years, overnight
lending rate is up, stock market has increased. Suggestion made to take advantage of
the increased yields on short-term investments.
Katina stated that the investing strategy was to keep investments as liquid as possible
due to Hurricane Harvey. She will move funds from Wells Fargo operating account to
the investment pools. This will still allow the use of these funds if the need arises since
FEMA is a reimbursement grant,
Katina also discussed the loss of tax revenue due to homes lost during the storm.
There was discussion on the bond funds and how this money is spent and the question
was asked why there was still money in the'2006 and 2009 water sewer bonds. Katina
explained how the money is set aside for specific projects and these fund should be
depleted in the next year.
The Committee stated that they like the schedule "Investments by Potential Call Date"
because it shows the City has been purchasing securities that are not immediately
callable as well as the schedule "Investments by Potential Call Dates" as you don't want
everything callable in a year. It was stated that the schedule "Investments by Maturity"
is irrelevant because all securities are 36 months; but it was more important that the
maturities are laddered.
Discussion tools place regarding the difference between the Texas Class pool and Texas
Class Government pool. Bob suggested that investing in the government peals could be
a better value and is the safest option,
The relationship with Wells Fargo was discussed as well as the net credit earnings. It
was reiterated to move money from Wells Fargo to maximize interest earnings and to
be cautious not to let Wells Fargo get too heavy.
Larry made a motion to accept the Investment Reports for quarters ended 9/30/17 and
12/31/17. Bob seconded the motion and it carried unanimously.
3, The Committee set upcoming dates for quarterly meetings as follows,1
1 8 and October 1
4. Larry motioned, Bob seconded and the Committee unanimously voted to adjourn the meeting at
B: 0 p.m.,
' ..h F
Katina Hampton
Investment Officer