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HomeMy WebLinkAboutInvestment Committee Minutes 2017-05-01 INVESTMENT COMMITTEE MEETING MINUTES May 1, 2017 The Investment Committee held a regular meeting on May 1,2017 at 4:02 p.m.at City Hall in Friendswood, Texas. The following members were present: Bob Bozka Larry Collison Allan Rasmussen Cindy Edge, Investment Officer Katina Hampton, Deputy Investment Officer 1. Committee meeting minutes from January 1, 2017 were reviewed and approved, unanimously, after a motion by Larry and second by Allan. 2. Committee reviewed and discussed the quarterly investment report. - Allan shared that yield on 10-year treasuries went down to 2.291o; but seem to be moving back up and is currently at 2.3%. - Cindy shared that no long-term securities were called in March 2017 or April 2017; stating this was the first time no calls have occurred in her tenure as Investment Officer. - Allan expressed that home sales(new home builds)are not down and that existing home purchase market is not seeing any decrease either. - Cindy explained that she held to the plan of maintaining the diversification of the City's investment portfolio between the pools, securities and cash on hand in the depository account. This structure has worked well for the City. - Bob asked if the last page of the investment reports,as reflected,was based on full maturity dates vs. call dates of the securities. i. Cindy replied,yes and explained that this quarter's report did not include the chart reflecting maturity by call date; but that future reports would include the information. - Bob asked if it is true that there is$25 million of the portfolio in the investment pools. I. Cindy replied yes, but that the majority of is bond proceeds which are restricted until used to pay vendors for the General Obligation bond projects approved by voters in 2013. - Bob asked about the portfolio make-up for the Texas Class investment pool. I. Cindy share information from the most recent Texas Class statement(51.7% commercial paper,42.6%asset backed commercial paper, 3.2%repurchase agreements, 1.3% U.S.Treasuries and 1.2%CD's). - Bob asked about the diversity of the City's portfolio and how the investment policy addresses diversification. i. The City's investment policy specifies that no more than 50%of the portfolio can be investment in a single investment pool. ii. Bob suggested considering or reconsidering, in the next investment policy review,the 50%limit in one local government investment pool. - As a committee, Bob suggests a decision be made about whether or not to invest more in Texas Class'Government instrument for safety purposes, even at a lesser yield. i. If the Texas Class Government Fund is considered a separate pool,a suggestion was made to shift funds to Texas Class Government Fund for future bond issuances. ii. Maybe consider shifting back to an almost equal amount in the investment pool instruments. iii. iv. Bob suggested revising the Quarterly Investment Report's Consolidated Cash in LGIPs to include Texas Class Government balances. Committee reviewed the current investment return/yield for TexPool as 0.6222% TexPool Prime as 1.06%,Texas Class as 1.00%and Texas Class Government as 0.6300% and recommended splitting the investment portfolio to maximize yield. Committee discussed information on the LoneStar Investment Pool (V Public) Government Overnight(0.71%). Discussion continued on rates on the investment instruments available to the City. Bob stated that the City's portfolio is in good shape and that Investment Officer(s) should keep pushing the long-term securities to take advantage of a little higher yields and to continue the laddered approach to fixed rate securities. Larry motioned, Bob seconded and the Committee unanimously voted to adjourn the meeting at 5:20 p.m. At the conclusion of the meeting, Cindy shared with the Investment Committee that she would be retiring from the City at end of May 2017. I. The Committee members offered their best wishes to Cindy and thanked her for her dedicated years of service to the City. Minutes approved by: Katina Hampton Investment Officer Date Approved: January 22, 2018 INVESTMENT COMMITTEE MEETING MINUTES July 24,2017 The Investment Committee held a regular meeting on July 24, 2017 at 4:04 p.m. at City Hall in Friendswood,Texas. The following members were present: Bob Bozka Larry Collison Allan Rasmussen Katina Hampton, Investment Officer Rhonda Bloskas, Deputy Investment Officer 1. Committee meeting minutes from May 1, 2017 were reviewed. - Larry made a motion for Investment Officer to revise the meeting minutes based on the Committee suggestions and present for approval at the next Investment Committee Meeting. 2. Committee reviewed and discussed the quarterly investment report. - Katina reported that, again during the quarter ended 6/30/17, no long-term securities were called. - Bob shared that the Industry is more focused on short-term investments for a little higher yields over extreme safety. The goal and focus of the City's portfolio has been on extreme safety. - With it being Rhonda's first time to attend the Investment Committee meeting, Bob explained the Committee's purpose and its members'expertise (broker, banker and accountant)which result in a good balance of perspectives in regard to the City's investment portfolio. - The Committee discussed investment pools are not always the highest rating investments; but are a good option for safety and modest return yield. - Katina shared that work is being completed related to the projects funded by general obligations bonds. This will impact the balance of the Texas Class investment pool. - Also mentioned was the previous relationship between the City and MBIA to take advantage of the arbitrage analysis services once offered by the agency. This is no longer the case. - Committee suggested regular review of the make-up of the investment pools in order to invest in only the safest options available in each individual pool. - Government-type pools are the highest quality. Committee believes it is in the best interest of the City's portfolio to invest in government-type pools. This strategy sacrifices return for safety. - The Committee suggested giving consideration to investing equally in the investment pools; keeping safety and liquidity in mind. - Government agency pools are a good option. Committee suggested that pooled cash funds in the Texas Class Investment tool be divided between the regular account and the government account. - Committee asked that the Quarterly Investment Report chart of Investments by Potential Call Date be reflect days to maturity from the call date. Larry made a motion to accept the Investment Report for quarter ended 6/30/17. Allan seconded the motion and it carried unanimously. 3. Committee completed its annual review of City's Investment Policy based on revisions presented by Katina. - Bob motioned and Larry seconded to accept the Investment Policy revisions as presented. The motion passed unanimously. 4. Larry motioned,Allan seconded and the Committee unanimously voted to adjourn the meeting at 5:10 p.m. Minutes approved by: Katina Hampton Investment Officer Date Approved: January 22,2018