Minutes - Investment - 1998-07-09COSTA MESA SANITARY DISTRICT
INVESTMENT OVERSIGHT COMMITTEE MEETING
JULY 9, 1998
CALL TO ORDER Meeting called to order at 5:30 p.m. by District Manager Rob Hamers.
ROLL CALL Investment Oversight Committee is composed of six (6) members:
Committee Members:
Mr. Marcus D. Davis, Acting District Treasurer
Mr. Jason P. Simpson, Revenue Supervisor
Mr. Rob Hamers, District Manager
Ms. Lois Thompson, Assistant Manager
Boardmember Arlene Schafer (rotating 'with other Boardmembers)
Boardmember Art Perry (rotating with other Boardmembers)
TREASURER'S REPORT AT JUNE 30, 1998
Mr. Davis discussed the Treasurer's Report and the recent investing
activity of the District for the month of June in addition to April and May.
Mr. Davis noted that the District will not be investing long -term until the
assessments come in during December 1998. This time of the year cash
• flow is very limited and the I't installment on assessments are not due until
December.
PRESENTATION ON CORPORATE MEDIUM TERM NOTES
Mr. Simpson presented an outline to the committee regarding medium term
corporate notes and highlighted the following: (1) they are primarily
issued by corporations to finance operations; (2) they are unsecured
promissory notes; (3) purchased on basis of credit quality; (4) interest rate
spreads between Treasuries (benchmark) and corporation will widen when
credit quality diminishes; (5) and factors to consider when purchasing, (a)
government guarantees, (b) strong capitalization, (c) recession -proof
revenue streams. In addition, Mr. Simpson noted that ratings are
constantly reviewed by two major credit rating agencies (Standard &
Poor's and Moody's) for credit worthiness. General discussion ensued
regarding medium term notes.
OPEN DISCUSSION No discussion.
ADJOURNMENT The meeting adjourned at 5:57 p.m.
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Secretary, Costa Mesa Sanita District vice President, Costa Mesa 'Sanit�ar)yDtri
Board of Directors Board of Directors