Minutes - Investment - 2010-02-25•
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COSTA MESA SANITARY DISTRICT
MINUTES OF INVESTMENT OVERSIGHT COMMITTEE MEETING
February 25, 2010
CALL TO ORDER The meeting was called to order at 5:07 p.m. by Treasurer Marc Davis
ROLL CALL Committee Members Present:
Director Bob Ooten (rotating committee member)
Director Arthur Perry (rotating committee member)
Mr. Scott Carroll, General Manager
Staff Members Present:
Mr. Marc Davis, Treasurer
Ms. Joan Revak, Office Manager /Clerk of the District
Ms. Teresa Gonzalez, Accountant
NEW BUSINESS Review of Treasurer's Report
Mr. Davis reported that the District's portfolio was earning approximately
1.33% as of January 31, 2010, compared to LAIF earning approximately
0.56 %, and the duration of the District's underlying securities was 1.13 years.
During the month of January one security was called and two more securities
were subsequently called in February. It is expected that additional
securities will be called due to the interest yields of the callable securities
being around the 3% range. With the available cash funds from the called
securities two new investments were purchased in February. The recently
purchased securities are a Freddie Mac at a 5 year maturity and 3.0% yield,
and a federal home loan security at a 3.5 year maturity and 2.3% yield.
Mr. Davis stated that the District's philosophy is not to go out and do a lot of
speculation on the interest market. When investment funds become
available Mr. Davis reviews the District's cash flow requirements and invests
only the funds that will not be immediately needed and will go out and invest
these funds for as long as possible. The District holds the securities until
maturity or until called.
Mr. Davis made a reference to the Yield Curve Data of the January 31, 2010
Treasurer's Report and reported that the District is doing well compared to
the other benchmarks, being only below the 5 year and 3 year T- Notes.
Director Perry inquired how we compare to the School District and to the City
of Costa Mesa. Mr. Davis responded that he will provide City comparison
information on the next report.
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MINUTES OF INVESTMENT OVERSIGHT COMMITTEE MEETING February 25, 2010
Page 2
Update on Receipt of Annual Charge
The 4th tax apportionment was received in January. The annual charges
received as of January 31, 2010 by the Sewer and Trash funds were 56% of
the assessed annual charges, compared to 56% collected last year during
the same period. The general tax collected was 53% of the assessed
amount compared to 57% collected last year. The general tax collection is
lower this year due to Prop 1A withholding.
PUBLIC COMMENTS There were no items discussed under public comments.
ADJOURNMENT The meeting adjourned at 5:23 p.m.
Approved by:
ecretary, "Costa Nfiesa Sanitary District
�Boardtf Directors
Board of Directors