HomeMy WebLinkAboutJoint Study Session between the City Council and the Investm City of Huntington Beach
File #: 19-042 MEETING DATE: 2/4/2019
Joint Study Session between the City Council and the Investment Advisory Board (IAB). The
IAB and City Treasurer will make a presentation of the 2018 Annual Report as it relates to the
City of Huntington Beach's investment management.
Roll Call of the Investment Advisory Board: Rob Sternberg, Jennifer Handy, Scott Dowds,
John Piekarski, Syndia Attardo, A.J. DiLiberto and Mark Ellett.
City of Huntington Beach Page 1 of 1 Printed on 1/30/2019
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CITY OF HUNTINGTON BEACH
INVESTMENT ADVISORY BOARD
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ANNUAL REPORT TO THE CITY COUNCIL
FOR: 2018
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INVESTMENT ADVISORY BOARD (IAB)
Establishment of Board
The Investment Advisory Board was created to act in an advisory capacity to the City Council and
City Treasurer in matters pertaining to all of the City's investments by the City Council in May of
1995 by Resolution #3284. The Board is governed by the City's municipal code chapter 2.110 and
is subject to the open meeting law ("Brown Act").
Board Membership
The Investment Advisory Board shall consist of up to seven members. Each City Council member
may appoint one member of the Board to serve the same term as the City Councilmember.
For 2018, the members were as follows:
Name Council Member
Rob Sternberg Patrick Brendan
Lydia Dupont Billy O'Connell
Scott Dowds Barbara Delgleize
Jennifer Handy Jill Hardy
John Piekarski Mike Posey
A.J. DiLiberto Lyn Semeta
Mark Ellett Erik Peterson
For 2019, the incoming member is:
Name Council Member
Syndia Attardo Kim Carr
Board Duties
The duties of the IAB as defined in the municipal code include:
1) Preparation of an Annual Report to be submitted to the City Council
2) Review and make recommendations regarding:
- The City's Investment Policy Statement
- Investment strategies and opportunities
- Relevant governmental legislation
- Quarterly investment reporting and compliance
3) Attend quarterly meetings
City Treasurer Activities
The City Treasurer attended and participated in various activities during the period October, 2017
— December, 2018 including (but not limited to):
• LAIF Update Webinar— October, 2017
• Various CSMFO/CMTA Orange County Chapter meetings
• VHB Tourism Summit— March, 2018.
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• Wells Fargo Bank "Treasury Insights" training — May, 2018
• CDIAC "Local Agency Investment Guidelines 2018 Update" Webinar— May, 2018
• Huntington Beach Chamber of Commerce Economic Conference — May, 2018
• CalPERS CERBT Fund Workshop - July, 2018
• CAMP Market Update: "What to Expect in a Rising Rate Environment" Seminar — October,
2018
The City Treasurer, in conjunction with the Orange County Auditor-Controller Eric H. Woolery,
CPA, presented an O.C. Taxpayer Watchdog Event "How to Read a Government Budget" in
December of 2017.
The City Treasurer received the "Orange County Taxpayer Watchdog Award" from the Orange
County Auditor-Controller Eric H. Woolery, CPA in November of 2017.
As well, in August of 2018, the City Treasurer was appointed by the Orange County Board of
Supervisors to the O.C. Treasury Oversight Committee to serve a three-year term.
Investment Advisory Board Activities
The two major activities of the Board consisted of reviewing each quarterly investment report and
reviewing the City of Huntington Beach Investment Policy annually, prior to their presentation at a
City Council meeting.
The meetings of the Board for the period from October 1, 2017 to December 31, 2018 were open
to the public, as required by Government Code 54950, and were held on the following dates in City
Hall:
October 19, 2017
January 18, 2018
April 19, 2018
July 19, 2018
October 18, 2018
The Annual Study Session for the previous year was held on February 5, 2018.
As required under Huntington Beach Municipal Code 2.110.040(b), the Investment Advisory Board
reviewed matters pertaining to the City's investments as follows:
• Reviewed the annual Investment Policy Statement.
• Discussed cash management and the maintenance of continued sufficient liquidity to meet
estimated expenditures.
• Reviewed risk-return analysis as it relates to safety, liquidity and yield.
• Reviewed and discussed relevant economic activity and policy.
• Reviewed appropriate state and federal legislation as it may impact the City's investments,
including updates to the California Government Code Section 53601.
• Reviewed any anticipated exposure to loss through the analysis of liquidity, credit & market
value of investments.
• Reviewed quarterly reports prior to presentation to the City Council.
• Reviewed quarterly compliance with Investment Policy. No exceptions were identified.
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Conclusions
Based on the information reviewed by the Investment Advisory Board for 2018, the Board
acknowledges that the City Treasurer has maintained compliance with all requirements in the
City's Investment Policy and related governmental regulations, and has managed the City's
investment portfolio in a prudent and suitable manner.
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Huntington , 8 ► h Ctyi iwCouncil
February 4 2019
Alisa Backstrom , CCMT, CPFIM
City Treasurer
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City of Huntington Beach
Investment Advisory Board
o Governed by Chapter 2 . 110 of Municipal Code
Acts in an advisory capacity to City Council and
City Treasurer in matters pertaining to the City's
investments
o Each City Council member appoints one member
to serve concurrent term
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nvestin--%lent Advisor BoardMembers
2018 Members:
A.J . DiLiberto Appointed by Lyn Semeta
Scott Dowds Appointed by Barbara Delgleize
Lydia Dupont Appointed by Billy O'Connell
Mark Ellet Appointed by Erik Peterson
Jennifer Handx Appointed by Jill Hardy
John Piekarski Appointed by Mike Posey
Rob Sternberg Appointed by Patrick Brendan
2019 Incoming Member:
Syndia Attardo Appointed by Kim Carr
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Investment Advisory Board Meetings
Meetings are held quarterly. For 2018 :
January 18
April 19
July 19
October 18
Open to the public per the Brown Act
Annual Study Session — 1st meeting Feb .
2018 Annual Report
Reviewed quarterly investment reports
prior to presentation to City Council
Reviewed and confirmed City's
Investment Policy
Reviewed / discussed City's other
investments
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r
2018 Annual Report
Confirmed liquidity availability / discussed
short-term investment options including
LAIF
• Discussed current events , economic/
market conditions , governmental
regulations
• Reviewed compliance — No exceptions
identified
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Investment Advisory Board
Conclusions :
City Treasurer has managed City funds as
a fiduciary with adherence to governmental
regulations , and
Maintained and followed Investment Policy
Statement guidelines and criteria :
Safety
Liquidity
Market Rate of Return through economic
and budgetary cycles
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