HomeMy WebLinkAboutInvestment Committee Minutes 2014-08-11 INVESTMENT COMMITTEE MEETING MINUTES
August 11, 2014
The Investment Committee held a regular meeting on August 11, 2014 at 4:10 p.m. at City Hall in
Friendswood,Texas. The following members were present:
Larry Collison
Allan Rasmussen
Bob Bozka
Cindy Edge, Investment Officer
Katina Hampton, Deputy Investment Officer
Meeting began with the introduction of committee members and city staff to Mr. Larry Collison (new
member).
1. Minutes from the May 215t meeting are reviewed and suggested revisions
2. Bob asked about arbitrage services by Texas Class. Cindy explained that the firm previously
handled the City's bond proceeds and arbitrage services.
3. Cindy will plan to perform an RFP for arbitrage and other related services available (this will help
to ensure that new SEC regulations are met and that the best value for services is obtained).
4. Bob asked if it would be helpful to the City if Texas Class were to get back into the business of
arbitrage service.
Cindy explained that having the City's bond proceeds invested with Texas Class and having the
firm handle the arbitrage obligations was helpful in the past.
5. Bob asked for explanation of the term bank qualified.
Cindy explained that bank qualified ensures that bonds issued are:
- Easier to sell in market
- Lower interest rate
-The$10 million per year debt issuance would include all taxing entities for Friendswood tax
payers
6. Cindy explained that she has received calls from individuals interested in buying bonds.This is
unusual; but good.
7. Bob explained that the City's investment policy is very restrictive to ensure security of the
portfolio.The laddered maturity dates conforms to the policy.
8. Allan received a forecast of possible interest rates of 1%in the near future.This is consistent with
what Cindy is seeing when purchasing securities as securities purchased in April and May were at
1.%.
9. Housing Market(Seller's Market)
-Allan explained the growth in the Houston,Woodlands,Conroe area;due in a large part to the
Exxon campus.
-Homes are selling at a premium and a lot more than the appraised values.Allan stated it is not
sure when or if values will"catch up".
10. Texas is an outlining factor in so many indicators such as, population, home sales,employment,
etc.
11. Larry shared that we could see interest rates go up; but inflation may also become an issue;
although not a major increase.
12. Bozka motioned to approve minutes with suggested revisions.Allan second. Motion passed and
minutes were approved.
13. Katina shared with the committee that the City earned our first Investment Policy Certificate of
Distinction from the Government Treasurers"Organization of Texas GTOT.
14. Meeting adjourned at 4:50 pm.
Minutes approved by: �/
Cindy S. Edge
Investment Officer
Date Approved: October 27, 2014