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HomeMy WebLinkAboutMinutes_Investment Advisory_07/29/2008 MINUTES VILLAGE OF TEQUESTA INVESTMENT COMMITTEE MEETING JULY 29, 2008 Call to Order and Roll Call The meeting was called to order and roll call was taken by Village Clerk Lori McWilliams. Present were: Chair Michael R. Couzzo, Jr., Finance Director Joann Forsythe, Committee Member Abby Roeloffs, and Village Clerk McWilliams. Discuss Investment Strategies The July 29, 2008 investment cash report was reviewed. Approximately $6 million was with Bank of America; Y2 million with National City, $4.1 million with the State Board in the A fund and $358,000 in the B Fund, making total cash $11,200,000. Investment options discussed were a 7 -month CD that would yield $10,000; possibly investing in Florida League of Cities pool. Ms. Forsythe was requested to find out what that pool was offering. Current status of the State pool was discussed. Chair Couzzo suggested possibly spreading the money in Bank of America to other banks in the community. The safety ratings of local banks were reviewed. It was noted that banking charges needed to be considered, since earnings could be drastically reduced just from the bank fees. Chair Couzzo suggested the best way to do this would be to put out an RFP to the local banks. Funds could be kept in 3 or 4 banks for diversification and to be a good neighbor, with only one being used for working accounts. Reconciliations for accounts that were not the primary checking account would be simple just the amount of interest earned. The RFP would have to list all services now being charged for by Bank of America. All banks would come in with their charges for an operating account, and the Village would decide which bank they wanted to use for the operating account and which other banks they would keep extra funds in to earn interest. The goal was to spread the funds around to various banks. Finance Director Forsythe expressed concern regarding how she would know where to place funds as they came in, and was advised the RFP was the first step in getting started, and the distribution would be decided later according to what each bank offered. The Village Clerk was to obtain RFPs from other municipalities Fund B was discussed, which was recovering; and there were maturities of 6 months left. The committee requested information on the Florida League of Cities pool at the same time they looked at the banks. Current bank CD rates and terms were discussed. The frequency of meetings of the committee was discussed. A couple of meetings would be required when the RFP was done. After the budget was approved, the INVESTMENT COMMITTEE MEETING JULY 29, 2008 Page 2 committee might need only to meet if it was amended, or regarding a big expenditure such as the bridge. Finance Director Forsythe pointed out that having money in CDs with various terms would slow things down since the money would not be instantly available if the Council wanted to spend for something, and those time frames would give time to think about what they wanted to do. The Village was in a good position because it had money to invest. Finance Director Forsythe requested direction regarding what to tell banks when the RFP went out since they would question whether the Village planned to move their operating account; the Village Manager responded they should be told that was an option. An investment policy was discussed, and it was concluded that this was not the time to get an investment manager involved. Consensus was to hold quarterly meetings of the Investment Committee, before the Manager prepared the quarterly report for the Village Council. The cash and investment report would be sufficient so long as the direction was to stay in cash and certificates of deposit. The next meeting was set for October 15, with the RFP due by October 1. Consensus was not to move funds until after the RFP. ADJOURNMENT There being no further business to come before the Committee, the meeting was adjourned. Respectfully submitted, cf, � Lori McWilliams, CMC Village Clerk Note These summary minutes are prepared in compliance with 286.011 F.S. and are not verbatim transcripts of the meeting. A verbatim audio record is available from the Office of the Village Clerk. All referenced attachments are on file in the Village Clerk's office.