Minutes - Investment - 2007-12-13•
COSTA MESA SANITARY DISTRICT
MINUTES OF INVESTMENT OVERSIGHT COMMITTEE MEETING
December 13, 2007
CALL TO ORDER The meeting was called to order at 5:30 p.m. by Treasurer /Finance Director
Marc Davis
ROLL CALL Committee Members Present:
Director Arthur Perry (rotating committee member)
Mr. Rob Hamers, Manager /District Engineer
Staff Members Present:
Mr. Marc Davis, Treasurer /Finance Director
Ms. Joan Revak, Board Secretary /Program Manager /Clerk of the District
NEW BUSINESS Review of Treasurer's Report
Mr. Davis reported that the District's portfolio is earning approximately 4.1 %
as of November 30, 2007. The average maturity of the portfolio investments
is approximately 5 months. The District has approximately $9 million
invested. The District plan has been to hold the current securities until they
mature. The next security will be maturing in May 2008 in the amount of $1
million. While all prior securities have been allowed to mature in order to
provide adequate available cash for the purchase of a district yard, beginning
with the maturity in May 2008, the District will start to invest in securities
outside of LAIF. While LAIF's interest rate is attractive given the current
market, it is prudent to diversify the portfolio.
Mr. Hamers inquired as to the financial outlook for the near future. Mr. Davis
responded that given the recent subprime meltdown, it appears that the Fed
will continue to ease interest rates. This will add market value to the
securities currently being held by the District, but will also result in lesser
interest rates when the District is back in the market.
Mr. Davis discussed the recent run on the State of Florida investment pool,
which is similar to LAIF. The Florida state pool lost approximately 30% of its
assets to withdrawals by local governments. The reason for the withdrawals
was that it was reported that a portion of the pool's investments were in
securities that were backed by subprime mortgages. This could equate to
losses to the pool. Mr. Davis informed the Committee that per statements
from LAIF in response to the run on the Florida pool, LAIF reiterated that it
does not invest in the types of securities that were backed by subprime
mortgages.
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K41NUTES OF INVESTMENT OVERSIGHT COMMITTEE MEETING
PUBLIC COMMENTS There were no items discussed under public comments.
ADJOURNMENT The meeting adjourned at 5:50 p.m.
Approved by:
Secretary, .Costa Mesa Sanitary - District
Loard of Directs s
December 13, 2007
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President, Costa Mesa Sanitary strict
Board of Directors