Investment Committee Minutes

MEETING MINUTES

Attending In-Person: Mayor Doug Farnsley; Council Member Don Gibson, Committee Members Bill Brab, Susan Nicholson, Dennis Riggs; City Attorney F. Chris Gorman; City Clerk John S. Carter 

Chairperson Nicholson called the meeting to order at 3:00 p.m. 

Committee Member Riggs moved to approve the minutes of the June 20, 2023 investment committee meeting, seconded by Committee Member Brabb, and the motion passed unanimously. 

The committee discussed the city's investment options and compared interest rates and term options for Republic Bank's certificates of deposit and the various Kentucky League of Cities Investment Pool [KLCIP] products. 

Chairperson Nicholson and Committee Member Brabb provided an overview of the rate, term, and potential risks of the KLCIP's money market account and "enhanced income fund". 

Chairperson Nicholson recommended that the city invest a significant portion of the city's funds in the KLCIP money market account to retain liquidity. 

Mr. Brabb indicated that the city's primary investment concern should be investment yield, protection of principle, and effective allocation. 

Committee Member Brabb moved that the committee recommend to the mayor that the city reinvest funds redeemed from Republic Bank CDARs to be evenly invested between KLCIP's money market fund and enhanced income fund, seconded by Committee member Riggs, and the motion passed unanimously. 

Chairperson Nicholson recommended that the committee invite and meet with representatives of KLC and PNC at the next committee meeting to learn details about long-term investment options available for reinvesting the $1 million CD set to mature in 2024. 

Committee Member Brabb recommended that the city have KLCIP slowly invest interest earned from the enhanced income fund into an S&P 500 fund, then follow its performance over several periods with an expectation to invest additional funds should it perform positively. The committee discussed the city's current investment allocation, the amount of funds available for both long and short-term investments, and the history of the city's monthly cash flow requirements.

 
The committee tentatively decided to meet next on Monday, November 13th at 3:00 p.m. The city clerk is to invite representatives from KLC Investments and PNC to attend the next meeting. 

Chairperson Nicholson indicated that she will be reviewing the city investment policy and will make recommendations on any potential changes at the next meeting. 

The Committee Member Brabb moved to adjourn the meeting, seconded by Council Member Riggs, and the motion passed unanimously. 

The meeting was adjourned at 3:53 p.m.