HomeMy WebLinkAbout08-13-2015 IOC MinutesCITY OF SAN LUIS OBISPO
INVESTMENT OVERSIGHT COMMITTEE
MINUTES
August 13, 2015
1:30 PM
Council Hearing Room 990 Palm Street
San Luis Obispo, California
MISSION: As set forth in the Investment Management Plan, this committee is responsible for reviewing
the City's portfolio on an ongoing basis to determine compliance with the City's investment policies and
for making recommendations to the City Treasurer (Director of Finance and Information Technology)
regarding investment management practices.
CALL TO ORDER
A meeting of the Investment Oversight Committee was called to order on Thursday, August 13, 2015, at
1:30 p.m. in the Council Hearing Room at 990 Palm Street, San Luis Obispo, California, by Chairperson
Padilla.
ROLL CALL
Committee Members
Present: Committee Members Steve Barasch, Michael Codron, John Ashbaugh, Vilma
Warner, and Chairperson Wayne Padilla
Committee Members
Absent: Committee Members Katie Lichtig and Jan Marx
Others Present: Al Eschenbach, Independent Auditor and ex- officio member, Carlos Oblites, Public
Financial Management (City's Investment Advisor); Heather Goodwin, Deputy City
Clerk
PUBLIC COMMENT
None.
1. REVIEW OF INVESTMENT OVERSIGHT COMMITTEE MEETING MINUTES OF
MAY_ 14, 2015
MOTION BY COMMITTEE MEMBER CODRON, SECOND BY COMMITTEE MEMBER
WARNER, CARRIED 4 -0, (COMMITTEE MEMBER ASHBAUGH ABSTAINING) to
approve the Investment Oversight Committee Meeting minutes of May 14, 2015.
Investment Oversight Committee Minutes — August 13, 2015 Page 2
2. PRESENTATION OF THE QUARTERLY INVESTMENT REPORT ON PORTFOLIO
PERFORMANCE
City Treasurer Padilla distributed the Quarterly Investment Report and City Investment Advisor
Oblites reviewed the contents of the report and summarized the portfolio's performance and
responded to inquiries from the floor and Committee.
Following discussion, MOTION BY COMMITTEE MEMBER ASHBAUGH, SECOND BY
COMMITTEE MEMBER WARNER, CARRIED 4 -0, (COMMITTEE MEMBER BARASCH
ABSTAINING) to confirm the Quarterly Investment Report, for the period ending June 30, 2015,
is in compliance with the City's Investment Policy.
3. DISCUSS THE FUTURE INVESTMENT STRATEGY IN LIGHT OF POSSIBLE
FEDERAL RESERVE BANK ACTIONS AFFECTING INTEREST RATES AND THE
RESULTS OF THE RECENT CASH FLOW AND LIQUIDITY ANALYSIS
City Treasurer Padilla distributed the Portfolio Review Report and City Investment Advisor
Oblites reviewed the contents of the report and responded to inquiries from the floor and
Committee.
Committee Member Barasch discussed and distributed hard copies of a document entitled "City
of San Luis Obispo's Estimated `On- Demand' accounts compared to other City budgets as of
June 30, 2015" and responded to inquiries from the floor and Committee.
Leslie Halls, San Luis Obispo, suggested that the City invest in Certificate of Deposits (CD) with
higher rates of return; opined that the City should consider paying off long term debt.
In response to public inquiry, City Treasure Padilla explained that the staff continues to analyze
the City's liquidity and outstanding debt; stated that each debt is analyzed on its own merit.
Following discussion, the Committee received and filed the Portfolio Review Report.
4. DISCUSSION OF THE 2015-16 ANNUAL CASH LIQUIDITY REQUIREMENT EQUAL
TO 3 MONTHS OF OPERATING COSTS BASED ON THE MOST RECENTLY
ADOPTED ANNUAL BUDGET
City Treasurer Padilla explained the responsibility of the City Treasurer's delegated investment
authority for making investment decisions under the City's Investment Management Plan; stated
that the City Treasurer is required to report to the Committee within 60 days of the end of the
fiscal year regarding the City's liquidity requirements; advised that the current liquidity
requirements are based on three months or 25% of the annual operating budget of the City with a
resulting value of $23,244,784.
Committee Member Ashbaugh left at 2:40 p.m.
Investment Oversight Committee Minutes — August 13, 2015 Page 3
5. ITEMS TO BE ADDRESSED AT A FUTURE MEETING
City Treasurer Padilla noted that the following item will be presented at a future meeting:
• Continued discussion regarding policy decisions made about the City's core asset levels
including how to maximize return and determining what is the optimum amount of
invested cash.
ADJOURNMENT
MOTION BY COMMITTEE MEMBER CODRON, SECOND BY COMMITTEE MEMBER
BARASCH, CARRIED 4 -0, to adjourn at 2:49 p.m.
Heather Goodwin
Deputy City Clerk
Approved: 02/25/2016