HomeMy WebLinkAboutJune 11Finance and Investment Committee Special Meeting
Town of Los Altos Hills
Town Hall, Monday, June 11, 2012
The meeting was called to order at 4:00 pm by Chairman, Allan Epstein.
Members present: Allan Epstein, Jim Lai, Frank Lloyd, Jean Mordo, Bill Silver and
Roddy Sloss.
Members absent: Kjell Karlsson, Susan Mason, Stan Mok, and John Radford
Staff present: Rob Stout, Interim Part Time Finance Director, and Richard Lee,
Finance Manager
Guest present: Carlos Oblites, PFM Asset Management (town’s investment
advisor )
Public Present: Gary Waldeck (in audience)
Approval of minutes: Minutes of the March 5, 2012 regular meeting and April 26, 2012
special meeting were approved.
Report by Carlos Oblites on Town’s Investments
Mr. Oblites reported on the Town’s investments and handed out a package summarizing
investment activity for the calendar year to date through May 31, 2012. For the three months
ended March 31, 2012 the Town earned no income after adjusting for unrealized gains and
losses. At March 31, 2012 investments had an average maturity of 1.3 years and were earning
0.56% annually. As of May 31, 2012, the Town’s investments had an average maturity of 1.14
years with a yield of 0.44%. After discussion, the Committee unanimously recommended that 1)
new investments could include Federal Agency Notes; 2) the average maturity of investments
could be extended to an average of 1.8 years although no security maturity could be more than
three years. These changes are expected to improve annual yields because Agency yield is
presently an additional 10 bhps and extended maturity additional yield is presently
approximately 7 bhps.
Rob Stout and Richard Lee will review the Town’s cash flow requirements with Carlos Oblites.
Report by Jean Mordo on recent Council activities of interest:
A Committee comprising Jean Mordo, Ginger Summit and Town staff will study issues related
to private roads within the Town.
continued
Minutes June 11, 2012 Finance and Investment Committee Meeting page 2.
Report by Rob Stout on Finance Department Activities of interest:
Fiscal year end June 30, 2012 annual financial statement audit work will begin in August and
resume in November with a target financial statement issuance date in December 2012.
Discussion of proposed fiscal June 2013 annual budget.
Richard Lee handed out budget summary schedules and a list of changes from the prior draft of
the budget that will result in an approximately breakeven spending plan before non recurring
items. After the proposed changes and non recurring items, spending is planned to exceed
receipts by approximately $1.3 million.
Rob Stout explained that public agencies in California are not required to balance receipts with
spending annually provided that available reserves can absorb the spending excess.
Richard Lee explained that estimated receipts and spending after fiscal 2013 are based on
property tax income increasing by 2.5% and 2.3% in 2014 and 2015 and 3.3% a year thereafter.
Third party spending is assumed to increase by 1.5% to 3% per year after fiscal 2013.
Headcount is assumed to be stable and benefits are assumed to increase by 2.5%.
Sewer Fund budget schedules will be reissued to reflect formatting changes noted in the meeting.
Supplemental schedules for Parks and Recreation showing Barn and Other Parks and Recreation
activities comparing revenue and direct (out of pocket) expenses were requested for the next
budget update scheduled to issue to Council on Friday, June 15, 2012.
Presentations from the Floor:
None.
Proposed topics and dates for future meetings:
The FIC regular meeting scheduled for July 9, 2012 is canceled. The next FIC meeting is
scheduled for Monday, August 6, 2012 at 4 pm in to review Town fees.
Adjournment: The meeting adjourned at 5:10 pm
Respectfully submitted by Roddy Sloss, Committee Secretary