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HomeMy WebLinkAbout10-13-2008 VC SPJ WS-M• • • MINUTES OF THE SPECIAL JOINT WORKSHOP SESSION VILLAGE COUNCIL AND AUDIT COMMITTEE OF NORTH PALM BEACH, FLORIDA OCTOBER 13, 2008 Village Council William Manuel, Mayor David Norris, Vice Mayor Darryl Aubrey, President Pro Tem Edward Eissey, Councilman T.R. Hernacki, Councilman Jimmy Knight, Village Manager Melissa Teal, CMC, Village Clerk ROLL CALL Audit Committee Tom Magill, Chairman Richard Podell, Vice Chairman Amy Dean, Member Christina Ivaldi, Member Emery Newell, 1st Alternate Bob Gebbia, 2nd Alternate Mayor Manuel called the meeting to order at 4:30 p.m. All members of Council were present. All members of the Audit Committee were present, except Mr. Talley, who had a meeting conflict, and Ms. Dean, who arrived at 5:20 p.m. All members of staff were present, except the Village Attorney. Finance Director Samia Janjua was present. CODE AMENDMENT REVISING INVESTMENT POLICY OF THE VILLAGE Mr. Knight distributed copies of the revised ordinance (document A); proposed investment policy (document B); example of core/operating funds investment detail, using FY 2009 Budget and proposed policy; information on NSRO (nationally recognized statistical rating organizations); and information on Wachovia Bank and the Evergreen Institutional Treasury Money Market Fund. Mr. Knight briefly reviewed the difference in core and operating funds and the specific allocations of each in the proposed ordinance. Mr. Knight explained investments with regard to the Village's undesignated reserve fund, and noted that from reserves an amount equal to 35% of the total budget is set aside for investment in core (long-term) funds, with any remaining monies invested in operating funds. Mr. Knight advised that one -twelfth of the annual budget would always be invested in operating funds. Discussion took place concerning revisions to the proposed ordinance. Mr. Knight stated that shaded areas in document A are items that have been changed or deleted. Discussion ensued on subsection (f)(1) regarding CAEL (Capital adequacy, Asset Quality, Earnings, and Liquidity) scores. Consensus was to leave this in the proposed ordinance as an additional benchmark. Discussion was held on subsection (0(2), in which Morningstar fund performance was deleted and Moody's and S&P were added. Minutes of Special Joint Workshop held 10/13/08 Page 2 of 2 • • • Discussion ensued on the table inset on page 5 of the proposed ordinance regarding the requirement that no more than 33.33% of operating funds be invested in registered money market funds. It was decided that the ordinance should be revised to include language establishing an investment committee consisting of the Audit Committee, Village Manager, and Finance Director, with a quorum to consist of three members of the Audit Committee, along with the Manager and Finance Director. Both the Village Council and Audit Committee determined that it is necessary to hire an investment advisor. Subsection (p) on page 7 was changed to require quarterly investment reports. Subsection (s)(2) on page 8 was revised to specify that the investment policy shall be reviewed by Council on an annual basis during its Goals and Objectives meeting, prior to the budget process. Discussion took place concerning having the investment committee assist with the investment management process, in addition to the investment advisory firm mentioned in subsection (t). Concern was expressed about possible liability because neither the Finance Director nor any Audit Committee members hold the designation of CFA (Chartered Financial Analyst.) After further consideration, it was noted that ¶3 in subsection (e)(1) on page 3 provides for protection from being held personally responsible for an individual security's credit risk or market price changes. ADJOURNMENT With no further business to come before the Council, the meeting adjourned at 6:00 p.m. • Melissa Teal, CMC, Village Clerk