Minutes - Investment - 2011-10-27•
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COSTA MESA SANITARY DISTRICT
MINUTES OF INVESTMENT OVERSIGHT COMMITTEE MEETING
October 27, 2011
CALL TO ORDER The meeting was called to order at 5:00 p.m. by Treasurer Marc Davis
ROLL CALL Committee Members Present:
Vice President Jim Ferryman (rotating committee member)
Director Jim Fitzpatrick (rotating committee member)
Mr. Scott Carroll, General Manager
Staff Members Present:
Mr. Marc Davis, Treasurer
Ms. Teresa Gonzalez, Accounting Manager
Ms. Joan Revak, Clerk of the District
Public Present: None
NEW BUSINESS Review of Investment Report
Mr. Davis reported the District's investment portfolio is in compliance with its
liquidity limitations which require a minimum of 20.00% of the portfolio must
mature within one year. The percentage of the portfolio maturing in less than one
year as of September 30, 2011 was 34.05 %. One home loan earning 2% was
called at the beginning of the month and one Fannie Mae earning 1.8% was
called during the month. Those were replaced with three additional investments.
The District purchased $1 M Fannie Mae which is a step -up security, meaning it
starts at one interest rate and over time that interest rate will increase.
Mr. Davis stated the District has adequate operating reserves necessary to meet
its obligations for the next six months. The portfolio is budgeted to earn an
average rate of 1.100% for the year ending June 30 2012. The portfolio has
earned a weighted average interest rate of 1.205 %.
The District's investments were discussed. The benefits of the Committee were
discussed and the Committee will propose disbanding the Committee at the
regular Board of Directors meeting with quarterly reports.
PUBLIC COMMENTS There were no items discussed under public comments.
ADJOURNMENT. The meeting adjourned at 5:24 p.m.
Approved by _.
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Secretary, Costa esa" aritary District
Board _of Dir - ctors
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President, Costa Mesa Sanitary District
Board of Directors