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HomeMy WebLinkAboutApproved Minutes - September 14, 2023Finance Committee Regular Meeting Minutes September 14, 2023 Page 1 of 4 CITY OF NEWPORT BEACH FINANCE COMMITTEE SEPTEMBER 14, 2023 REGULAR MEETING MINUTES I. CALL MEETING TO ORDER The meeting was called to order at 3:03 p.m. II. ROLL CALL PRESENT: Will O’Neill, Chair Allen Cashion, Committee Member William Collopy, Committee Member Keith Curry, Committee Member Nancy Scarbrough, Committee Member ABSENT: Noah Blom, Mayor (excused) Joe Stapleton, Council Member (excused) STAFF PRESENT: Grace K. Leung, City Manager; Jason Al-Imam, Finance Director/Treasurer; Michael Gomez, Deputy Finance Director; Shelby Burguan, Budget Manager; Jessica Nguyen, Budget Analyst; Abigail Marin, Budget Analyst; Raymund Reyes, Administrative Manager/Fire Department; Theresa Schweitzer, Public Works Finance/Administrative Manager; and Brittany Cleberg, Administrative Assistant MEMBERS OF THE PUBLIC: Jim Mosher Charles Klobe Larry Tucker III. PUBLIC COMMENTS Chair O’Neill opened public comments on the consent calendar and non-agenda items. Larry Tucker commented on various aspects related to the City’s compliance with State housing mandates. Jim Mosher commented on Item 4A suggesting a correction to the subject minutes regarding the spelling of a name. Chair O’Neill closed public comments. IV. CONSENT CALENDAR A. MINUTES OF JULY 26, 2023 Recommended Action: Approve and file. MOTION: Chair O’Neill moved to approve the minutes of July 26, 2023, seconded by Committee Member Curry. The motion carried as follows: Finance Committee Regular Meeting Minutes September 14, 2023 Page 2 of 4 AYES: Cashion, Collopy, Curry, Scarbrough, O’Neill NOES: None ABSENT: Blom (excused), Stapleton (excused), ABSTAIN: None V. CURRENT BUSINESS A. ANNUAL REVIEW OF INVESTMENT POLICY Recommended Action: Review and discuss this report and recommend that the City Council formally approve the proposed changes by adopting a resolution. These changes are in furtherance of the City’s investment objectives. Committee and staff discussion ensued on clarification of the California Asset Management Program cash reserve portfolio, LAIF, addition of an authorized investment option, potential of allocating additional funds, accessibility of funds and ability to move between funds as the market changes, additional control over liquid cash, availability of funds for project needs and disbursements, and review of the recommended changes in the redline version included with the agenda report, Chair O’Neill opened public comment. Jim Mosher commented on various aspects of the proposed changes to the investment policy including the definition of maturity and requesting clarification regarding settlement dates and prohibited investments. Chair O’Neill closed public comment. Committee and staff discussion ensued on legacy holdovers, due diligence process best practices, review of the Orange County investment pool holdings, clarification as to the inclusion of the Los Angeles County pool, conduct of additional review of the investment information in January 2024, clarification regarding the City Council’s investment policy review timeline, MOTION: Committee Member Collopy moved to approve the Finance Committee’s recommendation to the City Council for annual review of the investment policy, seconded by Committee Member Scarbrough. The motion carried as follows: AYES: Cashion, Collopy, Curry, Scarbrough, O’Neill NOES: None ABSENT: Blom (excused), Stapleton (excused), ABSTAIN: None B. ANNUAL REVIEW OF INVESTMENT PERFORMANCE Recommended Action: Receive and file. Genny Lynkiewicz, Senior Portfolio Manager, representing the City’s investment advisor Chandler Asset Management, gave a presentation and provided a summary of the investment performance. Committee, staff, and consultant discussion ensued including comments regarding public opinion surveys on the current economic conditions, management of the bond portfolio, clarification of investment terms, the strategy for holding securities to maturity, City mandates for safety and liquidity of investments, strategy for investment of extra funds, short-term and Finance Committee Regular Meeting Minutes September 14, 2023 Page 3 of 4 long-term strategies for the investment of funds pursuant to the adopted policy, and noting the City does not invest in cryptocurrencies per California Codes and City policies. Chair O’Neill opened public comment. Charles Klobe commented on investments listed on page 27 of the agenda report. Larry Tucker commented on interest earned from cash investments versus securities with the same maturity and inquired regarding the data utilized for forecasting interest rates. Jim Mosher inquired regarding the current policy’s restriction on options for purchase of 10-year issues and the financial impacts to the City. Chair O’Neill closed public comment. This item was received and filed. There was no further action taken. C. INTERNAL AUDIT PROGRAM Recommended Action: Receive and file. City staff provided a presentation and summary update of the information provided in the publicly noticed agenda report. Committee and staff discussion ensued regarding enforcement and uniformity of property controls and reporting across Departments, the process for addressing non-compliance, work conducted with applicable consultants, addressing the potential for abuse and fraud related to overtime, changes to Police Department systems, Chair O’Neill opened public comment. Jim Mosher inquired whether there would be an opportunity for the public to review City purchasing policies, suggesting that they be posted to the City’s website. Chair O’Neill closed public comment. This item was received and filed. There was no further action taken. D. BUDGET AMENDMENTS FOR QUARTER ENDING JUNE 30, 2023 Recommended Action: Receive and file. Chair O’Neill opened public comments. Seeing none, Chair O’Neill closed the public comments. This item was received and filed. There was no further action taken. E. WORK PLAN REVIEW Recommended Action: Receive and file. A summary of items scheduled for upcoming meetings was provided as listed in the publicly noticed agenda report. Chair O’Neill opened public comments. Seeing none, Chair O’Neill closed the public comments. This item was received and filed. There was no further action taken.