Finance Highlights 2011 0909 - Laserfiche WebLink

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Staff has also issued a RFQ for an underwriting firm. After review, Wedbush Securities, Inc. met the criteria and staff will be asking Council to approve the team of the Financial Advisor (PFM), the Underwriter (Wedbush), and the Bond Counsel (Jones Hall). Mr. O'Leary also explained to the Committee the fee schedule of the Financial Team. Recommendation to Council The Committee recommends City Council approval of the Resolution Authorizing Issuance of Pension Obligation Bonds, filing the required validation actions to refund the side fund obligations to the City to the California Public Employees Retirement System; and the Designation of the Financial Advisor, Underwriter, and Bond Counsel for Pension Obligation Bond Financing. 2. Discussion Regarding 2010 -11 Year -End Preliminary Budget Review Mr. O'Leary provided an update on the 2010 -11 budget performance for all City funds through June 30, 2011 and asks that the Finance Committee recommend a total budget adjustment for all funds in the amount of $1,890,000; General Fund adjustment amounts to $8,300. Mr. O'Leary stated that the General Fund revenue is projected higher than the FY 2010 -11 Adopted Budget, largely attributed to a correction and increase in the Sales Tax, but also increases to Property Tax, Utility User's Tax, Emergency Communication (911), and other taxes as well. Recommendation to Council The Committee accepted the report and recommends City Council approve the Resolution of the Recommended Budget Amendment Adjustments. 3. Discussion Regarding Investment Report, Quarter Ended June 30, 2011 Mr. O'Leary provided an overview of the City's portfolio and explained that the value was approximately $92.0 million. Of this amount, $63.9 million is in the Local Agency Investment Fund (LAIF) and $28.1 million is in the Chandler Asset Management program. The Chandler Investment Report indicates that the City is in compliance with all provisions of the City's Investment Policy. Mr. O'Leary focused on the overview and informed the Committee that the strategy recommended by Chandler will to continue to gradually lengthen the average maturity of the portfolio to capture higher interest rates. 4. Public Comments Mr. Craig Bettencourt (Prager, Sealy & Co.) informed the Committee that his firm had provided a RFQ for the opportunity to be the Underwriter of the bond issuance but was disappointed that he was not provided an interview to explain his submittal and answer any questions. Mr. O'Leary stated that there were three criteria staff looked for when selecting the Underwriter: experience, cost, and the marketing of bonds. Mr. O'Leary stated that Wedbush fit the criteria. 5. Committee Member Comments The Committee thanked and welcomed Mr. O'Leary. Councilmember Gregory asked that Council continue to look at road improvements. 2