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Minutes - Investment - 1997-07-10COSTA MESA SANITARY DISTRICT INVESTMENT OVERSIGHT COMMITTEE MEETING • JULY 10, 1997 CALL TO ORDER Meeting called to order at 3:15 p.m. by District Manager Rob Hamers. ROLL CALL Investment Oversight Committee is composed of seven (7) members: Committee Members: Ms. Susan L. Temple, Director of Finance /District Treasurer (absent) Mr. Marcus D. Davis, Assistant Director of Finance Mr. Jason P. Simpson, Revenue Supervisor Mr. Rob Hamers, District Manager Ms. Lois Thompson, Assistant Manager Boardmember Dan Worthington (rotating with other Boardmembers) Boardmember Arlene Schaefer (rotating with other Boardmembers) Staff Members Present: Reba Coulter, Accountant i TREASURER'S REPORT AT JUNE 30, 1997 Mr. Davis discussed the Treasurer's Report and market conditions: Mr. Hamers inquired whether staff would sell any of the current holdings if rates go higher. Mr. Davis discussed the investment philosophy of the District to be passive rather than that of active bond traders. The Policy's philosophy is to buy and hold to maturity. Mr. Davis stated that the District is beginning a period which is historically dry with no significant receipts until December. Discussion ensued between the members regarding LAIF and current rates offered in the marketplace. Mr. Hamers requested that the accountant create a bar chart on cash flows for the Board Members. The chart should demonstrate the revenue cycle of the District. INVESTMENT PORTFOLIO AUDIT AS OF DECEMBER 31, 1996 Mr. Davis discussed the report and highlighted item number 7 which discusses a recommendation to set a maturity limit for • money market mutual funds. Discussion ensued regarding the report and related issues. ' Mr. Hamers wanted to know what the District paid for this special audit. .; .. 1% MONEY MARKET MUTUAL FUNDS • Mr. Simpson presented four additional funds available on the market for investment of idle funds. Stagecoach Funds - Treasury Money Market Mutual Funds - 5.24 %; Milestone Funds - Treasury Obligations Portfolio - 5.33 %; First American Funds,. Inc. - Treasury Obligations Fund - 5.21 %; and Autumn Capital Investment Services - Vista Treasury Money Market Fund - 5.18 %. OTHER BUSINESS Discussion ensued between the members regarding the various money market mutual funds available. Mr. Hamers requested that the Investment Portfolio Audit be presented to the entire Board at their next regular meeting and that a member of Conrad & Associates be present to discuss the issues if so recommended by Ms. Temple. ADJOURNMENT The meeting adjourned at 4:00 p.m. • is President