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HomeMy WebLinkAboutJanuary 18Meeting Minutes Los Altos Hills Finance and Investment Committee Wednesday, 18 January 2006 Town Hall Council Chambers Members present: Jean Mordo, Craig Jones, Jim Lai, Frank Lloyd, Stan Mok, Doug Norby. Members absent: Wilf Corrigan, Karl Kneip, Lalla Stark. In Attendance: Sarah Ragsdale, Cindy Higby, Town Administration Chairperson Jean called the meeting to order at 6:05pm. Jim recorded the minutes of the meeting. The minutes of the 5 December 2005 meeting were reviewed. Craig requested that the minutes be revised to more fully reflect the decisions taken regarding changes to the Town’s Investment Policy. Jean accepted the action item to revise the minutes for presentation at the next meeting. Nsesa Kazadi of PFM Asset Management presented an update of the Town’s Investment Program. She reported that $9.5 million was transferred from the Local Agency Investment Fund (LAIF) and invested in the PFM CAMP Pool account on 14 December. She expected an additional $2 million to be invested in the CAMP Pool in the next 2 weeks, leaving a working reserve of $500,000 in LAIF. Taking into consideration the flat yield curve in the current financial markets, Nsesa proposed an initial bond portfolio with a short average maturity of 0.7 years. The investment objective is to shift towards a longer average maturity when the market exhibits a steeper yield curve. It was agreed with Nsesa that she would update the FIC in person on a quarterly basis, and that she would provide an email update at the intervening meetings. A.J. Major, Partner, Vavrinek, Trine, Day and Co. LLP, the Town’s auditing firm, reviewed the Town’s Comprehensive Annual Financial Report (CAFR) for the fiscal year ending 30 June 2005, A.J. Major reported that the Government Finance Officers Association of the United States and Canada awarded the Town with a Certificate of Achievement for Excellence in Financial Reporting for the year ended 30 June 2004. The Town also received a Certificate of Award for Outstanding Financial Reporting from the California Society of Municipal Finance Officers also for the year ended 30 Jun 2004. A.J. reviewed the audit firm’s Internal Control Comments letter with the Committee. Because of the lack of time at this meeting, Jean requested that Sarah prepare a response at the next meeting. We also agreed that each Committee Member would prepare for a detailed working review of the CAFR at the next Committee meeting. A. J. explained the accounting for the Town’s infrastructure. The Town currently uses a historical cost basis. In contrast the modified approach, also allowed, values the infrastructure by performing an assessment of its current condition. We agreed todiscuss using the modified approach at a future committee meeting. A Budget Review Sub-committee consisting of Jean, Stan and Doug was created to work with Sarah on the mid-year budget update. The first meeting will be Thursday 16 February at 6pm. All committee members are invited to participate. A review of the Charter City presentation will be scheduled for the next Committee meeting. Jim and Jean will form a sub-committee to make a proposal to the FIC. The meeting was adjourned at 7:35pm. Next meeting: Monday 6 February at 6:00PM at the Town Hall Minutes were approved as presented at the March 30, 2006.