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HomeMy WebLinkAboutCity of Huntington Beach Investment Advisory Board (IAB) An CITY OF HUNTINGTON BEACH INVESTMENT ADVISORY BOARD (IAB) ANNUAL REPORT TO THE CITY COUNCIL FOR THE PERIOD OCTOBER 1, 2014 TO SEPTEMBER 30, 2015 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 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 recommendations regarding - The city's Investment Policy Statement - Investment strategies and opportunities - Relevant governmental legislation - Quarterly investment reporting and compliance 3) Quarterly meetings The Board members are appointed by a member of the City Council For the Fiscal Year 2014-15, members were as follows Name Council Member Rob Sternberg Jim Katapodis Lydia Dupont Billy O'Connell Scott Dowds Barbara Delgleize Jennifer Handy Jill Hardy John Piekarski Mike Posey Ron Sterud Dave Sullivan Alan Ray Erik Peterson Board Activities The meetings of the Board for the 2014-15 Fiscal Year ended September 30, 2015 were open to the public, as required by Government Code 54950, and were held on the following dates in City Hall October 14, 2014 January 14, 2015 April 21, 2015 July 16, 2015 The Annual Study Session was held on February 2, 2015 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 As required under Huntington Beach Municipal Code 2 110 040(b), for the 2014/15 fiscal year, the Investment Advisory Board has reviewed matters pertaining to the City's investments in the following areas • Reviewed the annual Investment Policy Statement • Discussed cash management and ensured that there was sufficient liquidity to meet the next six months' estimated expenditures • Reviewed risk-return analysis as it relates to Safety, Liquidity, and Yield • Reviewed new investment opportunities, as appropriate • Reviewed appropriate state and federal legislation as it may impact the City's investments • Reviewed any anticipated exposure to loss through the analysis of liquidity, credit & market value of investments • Reviewed Quarterly Reports prior to them being presented to the City Council • Reviewed quarterly compliance with Investment Policy No exceptions were identified Based on the information reviewed by the Board for the period October 1, 2014 to September 30, 2015, the Investment Advisory 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 Joint Study Session Investment Advisory Board / Huntington Beach City Council February 1, Zoi6 Alisa Cutchen, CCMT, CPFIM City Treasurer City of Huntington Beach Investment Advisory Board • Per Municipal Code : Acts in an advisory capacity to City Council and City Treasurer in matters pertaining to the City's investments Investment Advisory Board Members : • FY zoi4-15, members were as follows: • Rob Sternberg - - Appointed by Jim Katapodis • Jennifer Handy- - Appointed by Jill Hardy • Ala - Appointed by Erik Peterson • Ron Sterud - - Appointed by Dave Sullivan • Scott Dowds - - Appointed by Barbara Delgleize • John Piekarski - - Appointed by Mike Posey • Lydia Dupont - - Appointed by Billy O'Connell P" Investment Advisory Board Meetings : • Meetings are held quarterly • Open to the public per the Brown Act • Meeting dates for FY 2,014-15 : • October 16, 2,014 • Januaryi , Zol 5 5 • April Zi, Zoi5 • July 16, 2015 Annual Report : • 10/1/14 t0 01 : • Quarterly Investment Reports • Updated City's Investment Policy • Reviewed Compliance - No exceptions • Confirmed Liquidity Availability • Reviewed new/existing Investments • Current events, economic/market conditions, governmental regulations Portfolio Summary at FYE 9/30/ 15 : • Book Value : $202 .1 million • Portfolio Composition : 61% Federal Agencies, ZO% Corporate Bonds, i9% LAIF • Annual Earnings : si.98 million +34% increase over previous fiscal year • Month end 9/3o Effective Rate of Return : 1.09% • Versus Benchmark: 0.47% Investment Advisory Board • Conclusions : • City Treasurer has adhered to governmental regulations, and • Maintained and followed Investment Policy Statement guidelines and criteria : Safety Liquidity Market Rate of Return