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HomeMy WebLinkAbout2025-11-20; Investment Review Board; Minutes; Regular SessionINVESTMENT REVIEW BOARD Regular Meeting Minutes Nov. 20, 2025, 2 p.m. CALL TO ORDER: 2:04 p.m. ROLL CALL: Ganelin, Rubinstein, Veiga, Peacox Council Chamber 1200 Carlsbad Village Drive Carlsbad, CA 92008 PLEDGE OF ALLEGIANCE: Board Member Rubinstein lead the Pledge of Allegiance. APPROVAL OF MINUTES: Minutes of the Special Meeting held Oct. 16, 2025. Motion by Board Chair Peacox, seconded by Board Member Veiga, to approve the minutes as presented. Motion carried 4/0/0/1 (Frieda absent) PRESENTATIONS: None. PUBLIC COMMENT: None. CONSENT CALENDAR: None. PUBLIC HEARINGS: None. DEPARTMENTAL REPORTS: 1. ANNUAL WORK PLAN: Review draft and adopt a resolution approving the Work Plan for calendar year 2026. (Staff contact: Katie Schroeder, Treasury Department) Recommended Action: Adopt a resolution approving the Annual Work Plan for calendar year 2026 Finance Director Zach Korach presented a PowerPoint presentation overview the municipal code requirement and proposed annual work plan for calendar year 2026. Board Member Rubinstein confirmed the information was audited and was informed by Finance Director Korach that investment reports are prepared monthly for City Council, combined quarterly for the Investment Review Board, and annually audited by an external audit firm. Board Member Veiga inquired about the process of modifying the work plan and was informed by Finance Director Korach of multiple options for additional requests. Motion by Board Chair Peacox to approve the Annual Work Plan for calendar year 2026, seconded by Board Member Veiga. Motion carried 5/0. 2. QUARTERLY INVESTMENT PORTFOLIO REVIEW: Receive a presentation on the investment portfolio's balances, activities and compliance standards for the first quarter of fiscal year 2026. (Staff contact: Katie Schroeder, Treasury Department) Recommended Action: Receive the presentation Finance Director Korach presented a PowerPoint presentation summarizing the quarterly investment portfolio. Board Member Rubinstein inquired what CAMP was and was informed by Finance Director Korach it was a pooled investment fund. Board Member Veiga inquired about the out of compliance securities, the updated of the investment policy, and process of ensuring compliance. Board Chair Peacox discussed that securities were inherited and considered secure at this time to hold to maturity, that the policy updates were approved by City Council and reviews of purchases have levels of review. Finance Director Korach also commented that the relationship with brokers has been revised to provide compliant offerings. Board Member Rubinstein confirmed with Board Chair Peacox that no purchases of securities are made without his knowledge. Board Member Frieda inquired about the brokers used by the city and the vetting process of the brokers. Finance Director Korach provided information on how broker relationships are reviewed and Board Chair Peacox responded to the vetting process of becoming a broker for the city. Board Member Veiga inquired as to the day-to-day process of selecting investments and if resources are adequate for decisions. Board Chair Peacox provided an overview of his decision-making process, and spoke to adequacy of resources, as well as weighing the cost benefit analysis of desirable resources. Board Member Veiga inquired as to the best practice of the liquidity measure. Board Chair Peacox replied that the current measure is considered conservative and will be brought to the board for discussion at a future meeting. Board Member Veiga inquired as to why the security weighted yield is less than pooled cash. Board Chair Peacox replied to the structural differences that result in short-term changes of pooled cash yields versus the long-term security ofthe city's portfolio. Board Member Rubinstein suggested the rating requirements of pooled cash fund investments may also be attributed to the varying yields. Board Chair Peacox replied that the rating requirement will be brought to the board of discussion at a future meeting. Board Member Veiga inquired about holding securities to maturity. Board Chair Peacox replied that the investment policy is to hold securities to maturity unless factors indicate it is in the best interest of the city to sell. Board Member Ganelin inquired about the forecast of interest income and budget. Finance Director Korach replied that revenue is conservative, is implemented into the budget and is presented to the City Council. Board Chair Peacox replied to the methodology of making decisions based on yield to maturity rather than income. Board Member Veiga inquired to the use of benchmarks and peer cities. Board Chair Peacox replied peer comparison is not a best practice and evaluation of an appropriate benchmark will be brought to the board of discussion at a future meeting. Board Member Rubinstein confirmed limited possibility to adjust the total portfolio yield. Board Chair Peacox further confirmed the structured control to impact the portfolio yield. Board Member Veiga inquired about the staff support and corporation between Treasury and Finance Departments. Board Chair Peacox replied to explain how staff provide data regularly to support his decision-making process. Board Member Commentary and Request for Consideration of Matters Inquiry by Board Member Ganelin if the Section 115 Trust is in the purview of the Board's advisory obligation. Finance Director Korach replied that if the City Attorney's Office approved of the discussion topic, a presentation could be agendized for a future meeting. Inquiry by Board Member Veiga if the consideration of outsourcing has been considered. Board Chair Peacox replied that it is a consideration as a resource. Motion by Board Member Veiga to bring forward a presentation on the overview of existing resources, as well as prospective options for additional resources, seconded by Board Member Ganelin. Motion carried 5/0 Board Member Rubinstein requested that custody and brokers be disclosed in the motioned resource item. Staff Comments: None. Adjournment: 3:00 p.m. ~ s.~ 11/24/2025 Katie Schroeder Senior Accountant