Loading...
HomeMy WebLinkAboutCity Council Committees - Operations - 09/13/1995 OPE RATMONS COMMITTE]MINUTE S SEPTEMBER 13, 1995 COMMITTEE MEMBERS PRESENT: Jon Johnson-Committee Chair,Leona Orr STAFF PRESENT: Roger Lubovich,May Miller,Brent McFall, Susan Narick,Kelli O'Donnell, Ron Spang MEMBERS OF THE PUBLIC: None The meeting was called to order at 9:34 a.m. by Chairperson Johnson. milroval of Vouchers: All claims for the period ending August 31, 1995, in the amount of $1,644,477.18 were approved for payment. Council Meeting Schedule Committee Chair Johnson stated that Christi Houser had asked that the item be continued to the next meeting so that she could have an opportunity speak to it. City Attorney Roger Lubovich noted that the three versions of page two address the alternatives proposed to date. He stated that he would be willing to draft any other alternates for consideration. Committee member Orr stated that she thought the three alternates covered all of the proposals she had heard of. It was agreed that the item would be continued to the next Operations Committee Meeting. Investment Policy Adoption Director of Finance May Miller stated that the previous investment policy was vague but stated that the City would follow State guidelines. She explained that the Treasurer's Conference recommended the adoption of specific policies by cities and that a certification process has also been adopted. May noted that it is intended to seek certification for this policy and the board that reviews policies for certification helped in the drafting of this policy. May reviewed the items that were recommended to be included by the Government Financial Report with the Committee. She noted that the number one intent of our policy is to keep the City's funds safe. The second is to maintain a positive cash flow and the third objective is yield. She stated that after the policy is adopted work will be continued on procedures and checks and balances. May noted that the policy recommends the formation of a Investment Committee to meet quarterly to review investments and make recommendations. The Committee would consist of herself, May explained, Susan Narick, the Internal Auditor, Assistant Finance Director, Brent McFall, and a member of the Operations Committee appointed by the Mayor. May added that as an added bonus this policy would be available when selling bonds. During further review,May noted the restrictions on purchasing derivatives as outlined on page 7 of the ordinance as well as clearly stating repurchase agreements will not be used as a means of investing on page 8. Miller introduced Susan Narick who assisted in preparing the ordinance and reports and distributed handout. May explained that the handout contained a glossary of commonly used investment terms and reviewed the reports which are currently prepared. Narick reviewed page 17 with the Committee noting the range of maturity for the City's portfolio from overnight to 2019. She noted the average maturity of the portfolio is 3.16. On page 18 she noted that the average rate of return was historically calculated yearly though Finance is moving to a quarterly report. This report measures performance using the State Investment Pool as a gauge. City Attorney Roger Lubovich added that since there is more in the ordinance it is important that the policy is followed because with adoption it will become law. He noted that May felt comfortable with this. Orr stated that it speaks highly of our Finance Department that they are willing to set guidelines to follow. Johnson added that we have been fortunate to always have good finance people. McFall stated that if OPE RA.TICITS COMMITTEE MINE rE S, CONT. SEPTEMBER 1 . 1 A anything this policy errs on the side of safety which is good explaining that our policy will not allow the purchase of derivatives or the use of repurchase agreements which can be fine. He continued that since there is even a possibility of misuse it is better to stay away from them as a public institution. May noted that during the certification process there may be minor changes and asked what the process for adoption should be. Roger suggested that a motion should be made to recommend adoption of the proposed Comprehensive Investment Policy subject to final certification by the Municipal Treasurer's Association of the United States and Canada, after which the policy with recommended changes will be submitted to the Council for final action. Leona so moved,Johnson seconded and the motion passed 2-0. Orr thanked the staff for their work on this policy. Added Item Capital Improvement Calendar May Miller distributed a proposed calendar and asked the Committee if they preferred to have a workshop on October 3rd on the CIP or on an off Council night. She noted that it is tentatively planned to have a workshop on the preliminary budget October 17. Leona stated that she preferred a Council night since everyone is here anyway, Jon agreed. There being no further business, Committee Chair Johnson adjourned the meeting at 10:00 a.m. Page 2 OPERATOONS COMMITTEAMINUTE S SEPTEMBER 13, 1995 COMMITTEE MEMBERS PRESENT: Jon Johnson-Committee Chair,Leona Orr STAFF PRESENT: Roger Lubovich,May Miller, Brent McFall, Susan Narick,Kelli O'Donnell, Ron Spang MEMBERS OF THE PUBLIC: None The meeting was called to order at 9:34 a.m. by Chairperson Johnson. Approval of Vouchers: All claims for the period ending August 31, 1995, in the amount of $1,644,477.18 were approved for payment. Council Meeting Schedule Committee Chair Johnson stated that Christi Houser had asked that the item be continued to the next meeting so that she could have an opportunity speak to it. City Attorney Roger Lubovich noted that the three versions of page two address the alternatives proposed to date. He stated that he would be willing to draft any other alternates for consideration. Committee member Orr stated that she thought the three alternates covered all of the proposals she had heard of. It was agreed that the item would be continued to the next Operations Committee Meeting. Investment PohQz Adoption Director of Finance May Miller stated that the previous investment policy was vague but stated that the City would follow State guidelines. She explained that the Treasurer's Conference recommended the adoption of specific policies by cities and that a certification process has also been adopted. May noted that it is intended to seek certification for this policy and the board that reviews policies for certification helped in the drafting of this policy. May reviewed the items that were recommended to be included by the Government Financial Report with the Committee. She noted that the number one intent of our policy is to keep the City's funds safe. The second is to maintain a positive cash flow and the third objective is yield. She stated that after the policy is adopted work will be continued on procedures and checks and balances. May noted that the policy recommends the formation of a Investment Committee to meet quarterly to review investments and make recommendations. The Committee would consist of herself, May explained, Susan Narick, the Internal Auditor, Assistant Finance Director, Brent McFall, and a member of the Operations Committee appointed by the Mayor. May added that as an added bonus this policy would be available when selling bonds. During further review,May noted the restrictions on purchasing derivatives as outlined on page 7 of the ordinance as well as clearly stating repurchase agreements will not be used as a means of investing on page 8. Miller introduced Susan Narick who assisted in preparing the ordinance and reports and distributed handout. May explained that the handout contained a glossary of commonly used investment terms and reviewed the reports which are currently prepared. Narick reviewed page 17 with the Committee noting the range of maturity for the City's portfolio from overnight to 2019. She noted the average maturity of the portfolio is 3.16. On page 18 she noted that the average rate of return was historically calculated yearly though Finance is moving to a quarterly report. This report measures performance using the State Investment Pool as a gauge. City Attorney Roger Lubovich added that since there is more in the ordinance it is important that the policy is followed because with adoption it will become law. He noted that May felt comfortable with this. Orr stated that it speaks highly of our Finance Department that they are willing to set guidelines to follow. Johnson added that we have been fortunate to always have good finance people. McFall stated that if OPERATICWS COMMITTEE MINVrES, CONT. a„ . S1R�PTVM >H R 1 _ 1 995 anything this policy errs on the side of safety which is good explaining that our policy will not allow the purchase of derivatives or the use of repurchase agreements which can be fine. He continued that since there is even a possibility of misuse it is better to stay away from them as a public institution. May noted that during the certification process there may be minor changes and asked what the process for adoption should be. Roger suggested that a motion should be made to recommend adoption of the proposed Comprehensive Investment Policy subject to final certification by the Municipal Treasurer's Association of the United States and Canada, after which the policy with recommended changes will be submitted to the Council for final action. Leona so moved,Johnson seconded and the motion passed 2-0. Orr thanked the staff for their work on this policy. Added Item Camital Improvement Calendar May Miller distributed a proposed calendar and asked the Committee if they preferred to have a workshop on October 3rd on the CIP or on an off Council night. She noted that it is tentatively planned to have a workshop on the preliminary budget October 17. Leona stated that she preferred a Council night since everyone is here anyway, Jon agreed. There being no father business, Committee Chair Johnson adjourned the meeting at 10:00 a.m. Page 2