01-22-24 Board of Finance - Laserfiche WebLink

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CITY OF SOUTH BEND OFFICE OF THE CLERK Councilperson Canneth Lee-Aye Councilperson Ophelia Gooden-Rodgers-Aye Councilperson Karen L. White-Aye Vice President Sheila Niezgodski-Aye Councilperson Troy Warner- Aye Board President Sheila Niezgodski, presiding opened nominations for the Secretary of the Board of Finance. Councilperson Troy Warner nominates himself for Secretary, seconded by Councilperson Canneth Lee. No other nominations were presented. Councilperson Canneth Lee-Aye Councilperson Ophelia Gooden-Rodgers-Aye Councilperson Karen L. White-Aye Vice President Sheila Niezgodski-Aye Councilperson Troy Warner- Aye Councilperson Warner was elected Secretary of the Board of Finance. Board President Sheila Niezgodski,then gave the floor to the presenters. City Controller's Annual Investment Report Kyle Wills,City Controller for the City of South Bend with offices on the 12th floor of the County- City Building presented. He introduced the report, discussed investment review meetings and investment officers, and then turned it over to the representative from First Source Bank. Erik Clapsaddle, 100 N. Michigan Street, South Bend Indiana 46601, continued the presentation. Mr. Clapsaddle, is Vice President and Senior Fixed Income Portfolio Manager at First Source Bank. He spoke on the investment portfolio of the City. The market value is $2 million for the portfolio. The City owns treasury notes and government agency notes in the portfolio. In 2016, the estimated income for the city was $1.8 million for the year. The portfolio has an unrealized loss of$746,330.22. Since 2016, its gone from $1.8 million to $6.2 million. Expected interest rates are supposed to drop for the year 2024,which will affect the portfolio. Last year,First Source Bank started buying U.S. Treasury notes because they were yielding at the same rate or higher than market certified deposits. The maturities for each item in the portfolio are staggered to account for market changes, Board President Niezgodski thanked the presenters and opened the floor for Council questions. Secretary Warner asked why we didn't see the twenty (20%) gain that the market saw last year and why the City's portfolio was only in fixed income. Erik Clapsaddle responded that legally the City is required to be in fixed income and that in the parameters the CDs need to be eighty (80%) zero to two (0-2) years and twenty percent (20%) two to five (2-5) years. The City is allowed to buy government agencies, treasury CDs, state of EXCELLENCE ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT 455 County-City Building I227 W.Jefferson Bvld South Bend,Indiana 46601 p 574.235.9221 f 574.235.9173 TTD574.235.5567 www.southbendin.gov