Finance Committee Agenda and Packet 2016 02 15

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City Council Finance Committee Meeting Minutes 01/19/16 Page 2 of 5 None. APPROVAL OF DESIGNATED PLACES FOR POSTING PUBLIC MEETING NOTICES The Committee approved the designated places as recommended. The listing of designated public places can be located in the packet of the January 19, 2016 Finance Committee Meeting. PRESENTATION FROM SCOTT PRICKETT, CHANDLER ASSET MANAGEMENT Scott Prickett reviewed global and national economic indicators. Mr. Prickett stated that the Fed increased rates in December 2015 as expected, but that he believes they will move for further increases cautiously based on mixed economic data. Mr. Prickett stated that while consumer confidence appears up and unemployment has remained at 5 %, wages have been flat, the manufacturing index has declined to its weakest level since 2009, and the housing sector remains volatile. Mr. Prickett stated that all of this leads to the measured, wait - and -see moves by the Fed. On the positive side, the City will be able to take advantage of some higher yields as they tick up. Ms. Julie Hughes reviewed the City's investment portfolio with the Committee. Ms. Hughes stated that Chandler always verifies its recommended investments with the City's investment policy, and that the City's investment philosophy aligns with Chandler in the conservative purchase of high quality investments. Ms. Hughes recapped the City's portfolio performance for the last quarter, noting a slight increase. City Manager Fleming asked about the City's portfolio holding of Exxon Mobile Corp., and whether or not it is a prudent investment given falling oil prices, divestiture, and overall global pressures. Ms. Hughes stated that not all energy sectors are anticipated to be down - graded based on the current decline in oil prices. Ms. Hughes stated that Exxon holds a AA rating and does not frequently offer shares. Chandler believes Exxon still offers value and was a good investment for the City that provided diversity to the porfolio. Ms. Hughes stated that Exxon represents only 5% of the City's portfolio. 3