2019 Board of Finance - Laserfiche WebLink

Home Browse Search

CITY OF SOUTH BEND OFFICE OF THE CLERK the Investment Report. If you open to the third (3rd)page of that packet, you will see all the listed Investment Officers and Advisors of the City of South Bend. The Investment Officers are me, Dan Parker the City Controller, and Rahman Johnson, the Director of Treasury. The Investment Advisors of the City of South Bend are 1St Source Bank and Paul Gifford, the Chief Investment Officer of 1st Source Corporation, is here with us today. Eric Clapsaddle and Amy White are also with 1"Source but they are not here with us today. The authorized investment amount is also listed which is a maximum of$185 million invested with 1St Source Bank. That was increased by $10 million as of January 31st,2017. That was largely driven by the fact that we were building up quite a large cash balance and we wanted to move some of that into investments and put a little bit more interest on that. He continued, If we keep turning to page five (5) of the packet, this is the City of South Bend's Investment Policy. This is fairly standard and fairly similar to what you all have seen in the past. There is one (1) substantive change that I want to point out. It is right at the beginning under the Scope of Responsibility that applies to this Investment Policy. This policy is actually the responsibility of the City Controller. That is actually a change from the past where this Policy was defined as being the responsibility of this Board of Finance. In doing some reviews, again,coming in and trying to figure out what this Board was all about, that is not statutorily within the scope of the Board of Finance. It does, statutorily, fall with the City Controller to control the investments of the City. I do want to say that this change is one (1) step in, hopefully, a larger discussion we can have with the Common Council as a whole. What we want to do is the statute allows the City to adopt an Investment Policy and for the City's fiscal body to adopt an Investment Policy. We want to pursue that avenue with the Common Council as opposed to the Board of Finance. Other than that, one (1) change, this is the same policy that it has been in the past and it is very largely governed by State Law. Paul Gifford, Chief Investment Officer for 1" Source Bank with offices located at 100 North Michigan Street, stated, All of you will be able to find, I believe it is on page eight (8) of your reports, a nice red dot showing the portfolio. You will see the current portfolio value is currently just under $185 million. That really has to do with how interest rates have changed since we last met with you. Every investment in here falls within the State's guidelines. Basically, it's pretty clear-cut. You can buy treasuries, agencies, CDs and Indiana Municipal Bonds. We do everything but the Indiana Municipal Bonds. The City also has the ability to invest the portfolio in certain depository institutions within the State of Indiana that allow you coverage over the $250,000 coverage from the FDIC at the Federal Level.You will see in the top five(5)holdings at the bottom of the first(1St)page there,such as Key Bank,Lake City and JP Morgan are all approved depository institutions in the State of Indiana. Councilmember Jo M. Broden arrived at the meeting at 3:42 p.m. Mr. Gifford continued, So, we are able to put larger dollar amounts in that portfolio. If you look in the upper right-hand corner, the portfolio talks about the estimated annual income. It is kind of fun to come in front of you. Some of you have been here for the last four(4)or five(5) years. That number used to be $1 million and with the maturity that is going to happen over the weekend on January 25th, that is a number that could be over $4 million for the first (1st) time in earnings projected for the next year. Given where interest rates are today, I would expect that portfolio to continue moving up closer to $4.5 million or more by the time we get to this time next year. The next several pages are the actual individual holdings and I would be glad to explain any of those, EXCELLENCE ACCOUNTABILITY INNOVATION I INCLUSION EMPOWERMENT 455 County-City Building 227 W.Jefferson Bvld South Bend,Indiana 46601 p 574.235.9221 f 574.235.9173,TTD574.235.5567 vw,iw.southbendin.gov 2