1987.05.26_FAB_Minutes_RegularTOWN OF HIGHLAND BEACH, FLORIDA
FINANCIAL ADVISORY BOARD
MINUTES OF REGULAR MEETING
Tuesday, May 26, 1987 9:30 A.M.
A meeting of the Financial Advisory Board was held at 9:30 A.M. on
Tuesday, May 26, 1987, at Town Hall.
Members present included Richard Brunton, Ben Cohen and Reese James.
-Member Walter Peklenk was on vacation. Town Manager Hugh D. Williams
was also present throughout the meeting and Mayor Stewart joined the
meeting at about 10:30 A.M.
The Minutes of the May 12, 1987 meeting were reviewed and, upon proper
MOTION, it was noted to amend the Minutes to add:
"The April 1, 1987, memo from the Finance Director regarding
the 1980 Sewer Revenue Bond Sinking Fund was reviewed. The
Finance Director recommended that the "Sinking Fund" be con-
verted from a 5-1/2% savings account into a higher paying
Certificate of Deposit and that the excess in the account
representing some $4,243. be transferred to the pooled cash
of the Sewer System. Some concern was expressed as to the
terms of the Bond Resolution and Mr. Brunton agreed to review
(` this aspect and report at the next F.A.B. meeting."
With the above amendment, the Minutes of the May 12, 1987 meeting were
approved as written.
Under the subject of Correspondence, there was a memo from the Town
Manager regarding the 1972 G. 0. Bond Issue and accompanying correspond-
ence from the Finance Director and The NCNB National Bank as the paying
agent for this issue. NCNB became the paying agent as a result of a
series of mergers with previous paying agent bankers and is now
proposing as the result of yet another merger, to either transfer the
paying agent role to the newly merged entity or that the Town establish
another paying agent source. Inasmuch as Manufacturer's Hanover Trust
has had a role in the existing arrangement, the Town Finance Director
has recommended direct arrangements with Manufacturer's Hanover with an
annual savings in cost of approximately $750. While the F.A.B. is in
general accord with the proposal it was believed prudent that prior to
such action, an opinion should be sought from the Town Attorney as to
whether such action would be in violation of any requirements of the
Bond Indenture. This matter will again be considered at the next F.A.B.
meeting.
The meeting then proceeded with the agenda items.
TI -
Minutes of Financial Advisory Board Regular Meeting
May 26, 1987
Page 2 of 2
INVESTMENT POLICY
An amended draft of this proposed policy as prepared by the
Town Manager was reviewed in considerable detail. In general,
the F.A.B. is in accord with the general concept and the pro-
visions for the security of the funds involved. In the course
of the ensuing discussion, it was agreed that the Town Manager
would prepare a new draft proposal that would incorporate
several changes that were felt to be essential in strengthen-
ing the document. ,- This matter will be followed up at the
next F.A.B. meeting.
1980 SEWER REVENUE BOND SINKING FUND RESERVE
This discussion is a follow-up to our May 12, 1987 Meeting.
A review of the Bond Indenture does not present any obstacle
to the recommendation of the Finance Director and Town Manager
to convert the Funds from a 5-1/2% savings account into a
Certificate of Deposit as provided by "Certified Public
Depository" established under Florida Statute Chapter 280.
Following further discussion, the F.A.B. endorsed the proposed
-v' action and recommends its approval by the Town Commission.
Due to the hour (11:40 A.M.), it was moved and voted to adjourn with the
next meeting being scheduled for Thursday, June 4, 1987 at 9:30 A.M.
Re ctfully submitted,
Reese E. James, Chairman
REJ/amk
cc: FAB Members
Town Commission
Town Manager
Finance Director