HomeMy WebLinkAbout01-26-09 Board of Financec~
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Board of Finance
City of South Bend, Indiana
2009 Meeting Minutes
Council Member Thomas LaFountain called to order the January 26, 2009 Board of Finance at 4:53
p.m. in the Council Informal Meeting Room.
Persons in attendance included: Council Members Dieter, Henry Davis, Jr., LaFountain, Puzzello,
Varner, Oliver Davis, Kirsits, Rouse and White; Mayor Stephen Luecke,City Controller M.
Catherine Fanello, City Attorney Charles Leone, Tom Price, Rita Kopola, Martha Lewis, Jamie
Loo of the South Bend Tribune, and Council Attorney Kathleen Cekanski-Farrand.
Council President LaFountain noted that the Board of Finance meeting was called pursuant to the
Meeting Notice of January 22, 2009 (copy attached).
Election of Board of Finance Officers:
Council President LaFountain stated that the first item of business was the election of the Board of
Finance offices for the positions of President and Secretary.
Council Member LaFountain opened the floor to nominations for President of the Board of Finance.
Council Member White made a motion, seconded by Council Member Dieter that 3`d District
Council Member Thomas LaFountain continue to serve as the Board's President for 2009. There
were no further motions for President. The motion passed.
Council Member LaFountain opened the floor to nominations for Recording Secretary of the Board
of Finance.
Council Member Dieter made a motion, seconded by Dr. Varner that 4~` District Council Member
Ann Puzzello continue to serve as the Board's Secretary for 2009. There were no further motions
for President. The motion passed.
Review of the Annual Investment Report for Calendar Year 2008 & Financial Information by
the City Controller:
Board President LaFountain then called for a review of the written report of the Investment Officer
(City Controller) which summarizes the City of South Bend's investments during the 2008 calendar
year and a review of the City of South Bend's overall investment policies.
City Controller M. Catherine Fanello noted that she provided earlier to the Council a draft of the
42-page document entitled "Board of Finance of the City of South Bend, Indiana Annual
Investment Report for the Year Ended December 31, 2008" with that report being dated January
26, 2009 (copy attached).
Board of Finance
January 26, 2009
Page 2
Ms. Fanello highlighted various portions of the report and noted that:
• In 2008 interest income was approximately $6.3 million compared to $7 million in 2007
• South Bend has a 2-year agreement with 1St Source Bank
• Projected interest income for 2009 may be at 2002-2003 levels which were approximately
$1.3 in 2002 and $861,000 in 2003
• All city dollars are invested in overnight sweep accounts which received a federal funds rate
plus basis points usually
• RFPs for banking will go our soon
• If a financial institution is on a "credit watch" she will not recommend investing with them
• There will be little competition on interest rates
• 2% is the current CD rate
• All deposits are covered by the Indiana Deposit Insurance
• All interest earnings are treated as miscellaneous revenues
Following general discussion, Council Member LaFountain adjourned the Board of Finance
Meeting at 5:03 p.m.
of
Board of Finance
Thomas LaFountain, President
Secretary
Attachment