Fullerton City Hall - 303 West Commonwealth Avenue
Third Floor - Room 301
Administrative Services Department Conference Room
Chairman Greenwood called the meeting to order at 4:15 p.m.
|Members present:||Jim Armstrong, City Manager|
Victoria Beatley, Citizen Member
Steven Foeller, Citizen Member
John Greenwood, Chairman, Citizen Member
Chris Meyer, Director of Administrative Services/Treasurer
|Members absent:||F. Richard Jones, M.D., Mayor|
Chairman Greenwood introduced and welcomed new member Steven Foeller.
Chris Meyer and Victoria Beatley were the only two members present who were in attendance at the February 10, 2000, meeting. The other two members in attendance at the February 10th meeting, Virginia Han and Marlies Diamond, had both resigned from the Committee in the interim. Therefore, Ms. Beatley motioned for approval and Chris Meyer seconded. The other members present abstained. The minutes were approved.
Mr. Meyer distributed to the committee members an updated status report of the investment portfolio as of June 8. He pointed out that there had been a significant change since the April 30 report, stating that just prior to the City Treasurer retiring, the City had come close to reaching the maximum ($20 million) invested with LAIF. He stated that $5 million had been moved out of LAIF into other investments: $2 million into Bankers Acceptances and $3 million into Treasuries. Mr. Meyer also pointed out that no further investing would be done until the results of the Federal Reserve meeting were known.
Ms. Beatley asked if the $20 million was the City's internal limit, because it was her understanding that LAIF had increased the maximum investment amount to $30 million. Mr. Meyer indicated that the $20 million limit was based on the City's information that the maximum investment amount allowed by LAIF was $20 million. Mr. Meyer stated that it would be necessary to confirm with LAIF the maximum amount and to revise the City's Investment Policy accordingly.
Mr. Meyer had invited Glenn Steinbrink, the City's Fiscal Services Manager, to attend the meeting and explain to the committee this year's Tax and Revenue Anticipation Note (TRAN) issue. Mr. Steinbrink explained the purpose and background of the City's TRAN issuance and informed the committee that this year's issue would be a 15-month TRAN of $4.675 million, and that it had been priced very favorably with a borrowing rate of 4.55% and an investment rate of 7.36%, and will generate approximately $143,000 in interest income for the City over the 15-month period.
Mr. Meyer reviewed the proposed change to the Investment Policy for submittal to the City Council and asked if anyone had any questions or comments. City Manager Armstrong pointed out that, before the Investment Policy was finalized, LAIF needed to be contacted to confirm the maximum allowable investment was $30 million. He pointed out that he would not be opposed to revising the Investment Policy to allow for the increased investment amount of $30 million.
Mr. Meyer motioned to transmit to the Council the Investment Policy with the proposed revision, as well as with the proposed increase to the LAIF investment amount to $30 million if confirmed by LAIF. Mr. Foeller seconded. Motion was unanimously approved.
Mr. Meyer distributed copies of the recruitment flyer for the City Treasurer/Investment and Revenue Manager position, indicating there was a filing deadline of June 30. He pointed out that the City typically advertises through the League of California Cities and the California Municipal Treasurers Association (CMTA). He further explained that the selection process would involve both the City Council and City staff.
A question was raised about the selection of a new Chairman and Vice Chairman. Mr. Armstrong pointed out that no action could be taken by the committee since it had not been published as an agenda item. Mr. Armstrong suggested that the selection be placed on the agenda for the next meeting.
With no further business, Mr. Meyer motioned to adjourn the meeting. Mr. Foeller seconded. Motion was unanimously approved.
Meeting adjourned at 4:38 p.m.
Remaining meetings for 2000: August 24 and November 16