Finance Committee Agenda and Packet 2017 10 16

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City Council Finance Committee Meeting Minutes 09/18/17 Page 2 of 13 PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA None. PRESENTATION FROM CHANDLER ASSET MANAGEMENT Scott Prickett and Julie Hughes from Chandler Asset Management, the City's Investment Advisor, presented to the Finance Committee an update on various economic indicators and on the performance of the City's investment portfolio. The key economic information provided by Mr. Prickett included: • No rate increase by the Feds is anticipated through year-end • Any policy changes by the current presidential administration could affect the market outlook and volatility • 2 -year and 10 -year Treasury yields declined due to long-term uncertainty • The Unemployment Rate increased slightly to 4.4% • The Consumer Price Index (CPI) increased 1.7% year -over -year in July • The Consumer Confidence Index remains strong • The Leading Economic Indicators (LEI) rose slightly and remains on a slow growth trajectory • The Gross Domestic Product (GDP) rose for second quarter and growth of 2.5% is anticipated for third quarter 2017 • The Treasury Yield Curve is anticipated to flatten without meaningful steps by the current presidential administration towards tax reform or other fiscal stimulus. Ms. Hughes reviewed the City's current Investment Portfolio and provided information on the portfolio objectives, strategies, and performance. These highlights included: • Our portfolio is benchmarked against the 2 Year Held -to -Maturity Treasury Index and the Bank of America/Merrill Lynch Blended 0-3 Year Treasure Index • Compliance with Colorado state law and the City's Investment Policy • Movement of the City's investments to shorter term investments to take advantage of rising rates and to protect principal • A small shifting towards short-term investments with high value • All City investments are in AAA or AA quality investments • The City's investments have continued to perform above the compared index with a historical purchase yield as of 8/31/17 of 1.14% The reports and corresponding narrative can be located in the packet of the September 18, 2017 Finance Committee Meeting. 3