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, and Special Guests, Kentucky League of Cities Financial Services Manager Steven Piekarski, PNC Vice President and Senior Investment Advisor Mark P. Snyder, PNC Senior Vice President of Institutional Asset Management William Seifrit. 

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

Committee Member Gibson moved to approve the minutes of the July 31, 2023 investment committee meeting, seconded by Committee Member Riggs, and the motion passed unanimously. 

Chairperson Nicholson introduced Mr. Piekarski, Mr. Snyder and Mr. Seifrit and asked that they comment on their investment philosophy, their successes with other cities, and to inform the committee of any pertinent information it may not know. 

Mr. Pickarski and Mr. Snyder spoke of their approach to investment advice for cities, reviewed the investment products, and of the advantage of pooling investments with other municipalities. 

There was a discussion of the city's investment policy and whether it should be amended. 

There was a discussion on the city's investment goals and what funds the city anticipates being available for short-term and long-term investment. 

There was a discussion on each fund's long-term performance and how it compares with similar investment products offered by other banks and investment companies. Mr. Snyder indicated that investment in S&P funds is limited to 40% of the portfolio by law which is the most aggressive investment strategy available to the city. 

Mr. Pickarski spoke about city financing available through KLC's Municipal Bond Pool. The bond pool allows cities to take advantage of KLC's AA- credit rating and economy of scale. 

The committee discussed the city's risk tolerance and anticipated market conditions over the next year. 

The committee discussed the current investment policy language and potential changes to it that would provide clarity and be less restrictive. 

Chairperson Nicholson proposed determining the city's cash flow requirements over the next two years and then developing an investment strategy based on those parameters. 

The committee agreed to reconvene in January 2024. 

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

The meeting was adjourned at 4.35 p.m.