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HomeMy WebLinkAbout01-23-86 WS MINUTES OF THE COMMISSION WORKSHOP MEETING HELD JANUARY 23, 1986 .' PRESENT: Mayor lson, Commissioners Rodgers; Bateman; and Hager, City Attorney Tom Lang, City Manager Griffin, Finance Director Poston, City Auditor Eldon McDirmit and City Clerk Helen Cat1"~cl)"l. ABSENT: Commissioner Cox. Meeting called to order at 7:35 p.m. by Mayor lson. REPORT ON STATUS OF GIC INVESTMENTS - ATTORNEY LANG Atty. Lang explained the difference to the Commission between the GNMA Certificates and the GIC investments. There will be a hearing on January 28, 1986 and he explained that this would be the next milestone in determining the value of the certificate the city has and what real value will be placed on it as of this time. The Mayor and Commissioners asked what percentage he thought they had of getting back on the certificate. Atty. Lang stated that as of this moment he can only say maybe 80 to 100 cents on the dollar. He explained that the attorney handling the case is Atty. Hood with Cobb and Cole and he has three clients, therefore the cost is being split three ways for the attorney's fees. Recall, Cobb and Cole were affiliated with Swann and Haddock. e The City had a $100,000.00 Certificate with received $14,325.29 in interest since it was February of 1984. GIC aV"ld ha!s pU1"~chased i"n REPORT ON GENERAL FINANCIAL INVESTMENTS - FINANCE DIRECTOR IVAN POSTON . Mayor lson asked Mr. Poston about the Texas Investments and Mr. Poston explained that there were five investments totalling $400,000.00. The monies were moved and invested in several different banks. Comm. Rodgers questioned why the full Commission was not involved and not told about moving the monies. He stated he had not found out until 7:00 a.m. this morning when the bank president called upset and told him what was going on. Commissioner Bateman stated he was concerned with a bank president who did not address the full Commission. Mayor lson explained that we had $400,000.00 with the potential to lose and he counseled with Mr. Poston, Mr. Griffin, Atty. Lang and Kruppenbacher, and invited Jim Reed but he was unable to meet with Mr. Reed and he felt time was of the essence. Mayor lson also expressed concern of raising a potential panic on the Texas GNMA firm, if the subject was discussed in public. The Mayor felt this may have Jeopardized the City's investments even more. The monies have to be guaranteed by the FDIC, the Mayor felt. By investing $100,000.00 each in separate banks, this is 1 . COMMISSION WORKSHOP JANUARY 23, 1986 PAGE 2 assured. We do not know, around this procedure. at this time if there is a way The Commission had been provided with a rundown of the current investments of the City of Ocoee along with a proposed policy for investments and copies of the Florida State Statute that govern investments by municipalities. One of the main concerns explained by City Manager Griffin is that only $100,000.00 per earmarked account is insured by the FDIC. Cornelia Whitaker, Vice President of Orange Bank, explained to the Commission that 50~ of the City money 15 cClllater~alized by "secur~ed investments" OY"I aY"lythiY"lq Y"IC.t cover~ed by FDIC. Alsc., if the City will "ear~mar~k" mcnr,ies fOI.~ different types of accounts, then each account up to $100,000.00 would be federally insured. The Commission questioned this interpretation. DISCUSSION OF PROPOSED FINANCIAL INVESTMENT POLICY . City Manager Griffin and Finance Director Poston had prepared a proposed investment policy for the City of Ocoee. Comm. BaternaY"1 stated that the basic statement should be: "~lll deposits must be fully insured by the FDIC, FSLIC or by the U. S. Gover~Y"lfneY"lt," t heY"1 get i nt 0 the "Y"I it t y gr~ i t t y" and na i 1 down. He further stated that he was in favor of keeping the monies in baY"d.{s withiY"1 the City, but Y"IOt if it .Jeopar~dized funds. Commissioners Rodgers and Hager both agreed that they would like to keep the monies within the City if they can legally. Mayor Ison also stated that he wants the monies insured dollar for dollar. Comm. Rodgers asked if the State Statute 166.261, paragraph 'c' meant the monies could be "collater~alized". ~Jtty. Lang explaiY"led that if you do w"~nt to use a collateralized investment you only identify collateral as secured by the creditor. Comm. Rodgers stated that he would like Jim Reed, President of Orange Bank, to sit down with Atty. Lang and Mr. Poston and work out the problem, see if accounts can be earmarked and find out where we are. Mayor Ison asked Cornelia Whitaker if she would get with Jim Reed and advise him of the Commissioner's request. She stated they would appreciate having a list of total dollar amount of investments. what is earmarked and how. Mr. Ivan Poston stated that nothing was pressing as of the moment. Atty. Lang reminded the Commissioners that they have approximately $400,000.00 in the bank at this time that is 50~ collateralized and not fully insured. OTHER DISCUSSION ON THIS MATTER . The Commission decided to call a Special Session on February 5, 1986 at 7:30 p.m. and decide what to do about the $401,460.76 that is not insured, and to come up with an i::: . COMMISSION WORKSHOP JANUARY 23, 1986 PAGE 3 investment POlICY. The Commission indicated that tney were in favor of the City Commission having the responsibility of designating the public depositories and having a mandatory review each year. Meeting adjourned at 9:05 p.m.. MAYOR ISDN CITY CLERK e . ~