HomeMy WebLinkAboutCity of Huntington Beach Investment Advisory Board - Annual CITY Of HUNTINGTON BEACH
INVESTMENT ADVISORY BOARD
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ANNUAL REPORT TO THE CITY COUNCIL
FOR THE PERIOD:
OCTOBER 1, 2016 TO SEPTEMBER 30, 2017
Item 1 . - I H B -10-
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.
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 the
Fiscal Year 2016-17, 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 (appointed 1/17/2017) Lyn Semeta
Mark Ellett (appointed 4/3/2017) Erik Peterson
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 recommendations regarding:
- The City's Investment Policy Statement
- Investment strategies and opportunities
- Relevant governmental legislation
- Quarterly investment reporting and compliance
3) Quarterly meetings
Board and City Treasurer Activities
The meetings of the Board for the 2016-17 fiscal year ending September 30, 2017 were open to
the public, as required by Government Code 54950, and were held on the following dates in City
Hall:
October 20, 2016
January 19, 2017
April 20, 2017
July 20, 2017
The Annual Study Session was held on February 6, 2017.
HB -1 1_ Item I. - 2
The City Treasurer attended the LAIF conference in Sacramento in October of 2016, the California
Municipal Treasurer's Annual Conference in April of 2017, and the Huntington Beach Chamber of
Commerce 30th Annual Economic Conference in April of 2017.
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 2016/17 fiscal year, the
Investment Advisory Board reviewed matters pertaining to the City's investments in the following
areas:
• Reviewed the annual Investment Policy Statement and recommended modifications.
• Discussed cash management and ensured sufficient liquidity to meet the next six months'
estimated expenditures.
• Reviewed risk-return analysis as it relates to safety, liquidity and yield.
• Participated in presentation of the City's Supplemental Retirement Pension investments by
City's benefits consultant.
• 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.
Based on the information reviewed by the Investment Advisory Board for the period October 1,
2016 to September 30, 2017, 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.
Item 1. - 3 H B -12-
Joint Study Session
Investment Advisory Board/
Huntington Beach City Council
February 5, 2018
Alisa Cutchen , CCMT, CPFIM
City Treasurer
City of Huntington Beach
Investment Advisory Board
o Governed by Chapter 2 . 110 of Municipal Code
A oActs 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
Investment Advisory Board Members :
• Rob Sternberg - - Appointed by Patrick Brendan
• Jennifer Handy - - Appointed by Jill Hardy
• Scott Dowds - - Appointed by Barbara Delgleize
• John Piekarski - - Appointed by Mike Posey
• Lydia Dupont - - Appointed by Billy O'Connell
• A.J . DiLiberto - - Appointed by Lyn Serneta
• Mark Ellett - - Appointed by Erik Peterson
3
Investment Advisory Board Meetings :
Meetings are held quarterly. For FY16/ 17 :
October 19 , 2016
January 18 , 2017
April 19 , 2017
July 19 , 2017
Open to the public per the Brown Act
Annual Study Session
---- -- --YV
FY 2016/2017 Annual Report :
• Reviewed quarterly investment reports prior to
presentation to City Council
� • Reviewed and updated City's Investment Policy.
Recommended additional investments as
allowable per CA state code + maximum
investment amounts and percentages
• Reviewed / discussed City's other investments
including Supplemental Retirement Plan ,
Section 115 Trust
CD
FY 2016/2017 Annual Report :
• Confirmed liquidity availability / discussed short-
term investment options including LAIF
• Presentation by Benefit Financial Services
Group as consultant for City's Supplemental
' Retirement and Deferred Compensation Plans
• Discussed current events, economic/ market
conditions, governmental regulations
• Reviewed compliance — No exceptions identified
Portfolio summary at FYE 9/30/ 17 :
Book Value: $ 196 . 9 million
Portfolio Composition : 75% Federal
Agencies , 19% Corporate Bonds , 3% LAIFI
IBRID 3%
Annual Earnings : $2 . 75 million
+20% increase over previous fiscal year
Fiscal Year Effective Rate of Return : 1 .30%
Versus 9/30/17 Benchmark: 1 .21
(12-mo. moving avg. 2 Year CMT)
s
CD
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