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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. I 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