Finance Committee Agenda and Packet 2016 10 17

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City Council Finance Committee Meeting Minutes 09/19/16 Page 2 of 7 The second correction is to paragraph 2 under Non -Profit Grant Program which is corrected to add, "Finance Committee Member Stolzmann stated her opinion that the City should abide by the Code as it presently exists." The Finance Committee Members approved the August 15, 2016 meeting minutes with the above amendments. PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA None. CASH & INVESTMENTS — PRESENTATION FROM INVESTMENT ADVISOR Mr. Scott Prickett and Ms. Julie Hughes of Chandler Asset Management, the City's Investment Advisor, presented to the Finance Committee an economic update and reviewed the status of the City's investments. Mr. Prickett presented the Finance Committee the most recent economic data regarding employment, housing, manufacturing, and consumer confidence, stating that Federal Open Market Committee (FOMC) will be meeting September 20-21 but that it is doubtful any change in policy or rates will occur until the end of the year. Ms. Hughes reviewed with the Finance Committee the performance of the City's investment portfolio through August 31, 2016, noting that Chandler Asset Management is in full compliance with State law and the City's investment policy, and seeks to choose investments that are safe, provide liquidity, and achieve the highest rate of returns. Ms. Hughes stated that the City's investments in U.S. Corporate Debt and Commercial Paper were increased slightly to take advantage of some high quality rate opportunities. Ms. Hughes also stated that the City will have some good reinvestment opportunities as some existing investments will mature later this year. Ms. Hughes stated the City's Rate of Return on its investments for the last 12 months was 0.79%, and 0.64% for the last 2 years as compared to the 2 -Yr. Held -To -Maturity Treasury Index, which gained 0.64% and 0.48% respectively. City Manager Fleming and the Chandler representatives discussed FNMA ratings and risks, the European Markets, and the policies of some firms issuing negative bonds in an effort to hedge the deflationary environments in Europe. 3