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HomeMy WebLinkAboutInvestment Committee Minutes 2015-04-27 INVESTMENT COMMITTEE MEETING MINUTES
April 27, 2015
The Investment Committee held a regular meeting on April 27, 2015 at 4:15 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 were approved, unanimously, after Bob Bozka made a motion and
seconded Larry Collison.
2. Committee discussed old business.
- Cindy will send the City of Friendswood Volunteer Guidebook to committee members
electronically for review and asked that members sign and return the acknowledgment
page of the document to the City Secretary's Office.
- Bob asked if Cindy had been able to contact brokers about the fees/mark-up charged
when securities are purchased.
- Cindy shared with the committee that the most recent purchased securities statement
did not reflect fees/mark-up amount. When asked about fees/mark-up when making
the securities purchase,the brokerage firm representative did not give specific
amounts; but stated that, depending on the securities volume purchased,fees can vary
for the firms.
- Investment Committee members recommend formally asking each of the City's
authorized broker/dealers to provide the fees/mark-up for securities purchases.
- Bob explained how the fees/mark-up are disclosed when new bonds are issued and that
fees/mark-up are passed through to buyers when repurchases of the bond securities
occur.
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3. Committee reviewed and discussed the quarterly investment report.
- Cindy explained that she continues to seek opportunities to purchase callable securities
with at least 1-year maturities. They provide a respectable yield and liquidity for the
portfolio.
4. Bob recognized the new Investments by Potential Call Date chart included the report and asked
for an explanation its message.
Cindy explained that the chart reflects the number of days from purchase date in which
the securities of the portfolio can be called.
Bob commented that a chart reflecting the number of days from the end of the quarter
would be a useful investment tool.
Committee members agreed and Cindy will develop the chart as suggested.
5. Larry asked about future bond issuances by the City for the projects approved by voters in 2013.
- Cindy explained the City's plan to issue the bonds in 3 parts in 2015, 2017 and 2019 to
ease the burden on tax payers, prevent significant spikes in the debt service portion of
the City's tax rate and manage the project workload for the City's existing staff.
6. Allan Rasmussen shared with the committee that loan demand is the life blood of banks in
today's economic market as interest rates remain low.
7. Bob explained that home mortgage backed bonds are likely to be devalued over time as interest
rates increase in the future.
8. Cindy shared with the group that, currently,the City's depository contract request for proposals
(RFP) is being advertised with the deadline for submissions on Tuesday, May Stn
- Committee members shared that many banks are no longer actively seeking public
funds accounts. Those institutions that do so recognize public funds accounts as a
special niche in the banking industry.
9. Meeting adjourned at 5:00 p.m.
Minutes approved by:
Cindy S. Edge
Investment Officer
Date Approved: July 27, 2015