CITY OF HUNTINGTON BEACH
INVESTMENT ADVISORY BOARD
ANNUAL REPORT TO THE CITY COUNCIL
FOR: 2022
INVESTMENT ADVISORY BOARD (IAB)
Establishment of Board
The Investment Advisory Board was created to act in an advisory capacity to the City Council and City Treasurer in matters pertaining to all of the City’s investments by the City Council in May of 1995 by Resolution #3284. The Board is governed by the City’s municipal code chapter 2.110 and is subject to the open meeting law (“Brown Act”).
Board Membership
The Investment Advisory Board shall consist of up to seven members. Each City Council member may appoint one member of the Board to serve the same term as the City Councilmember.
For 2022, the members were as follows:
Name Council Member
Sean Heymann (Chairperson) Dan Kalmick
Syndia Attardo Kim Carr
Scott Dowds Barbara Delgleize
Mark Ellett Erik Peterson
Dennis Kelly Natalie Moser
Rita Pitcher Mike Posey
Monica Erskine Rhonda Bolten
Investment Advisory Board: Duties
The duties of the IAB as defined in the municipal code include:
Preparation of an Annual Report to be submitted to the City Council Review and make recommendations regarding:
The City’s Investment Policy Statement and compliance with this statement Investment strategies and opportunities
Relevant governmental legislation
Quarterly investment reporting
Attend quarterly meetings
Investment Advisory Board: Activities
The two major activities of the Board consisted of reviewing each quarterly investment report and reviewing the City of Huntington Beach Investment Policy annually, prior to their presentation at a City Council meeting.
The meetings of the Board for the period from January 1, 2022 to December 31, 2022 were held via Zoom according to Covid-19 protocol on the following dates:
January 20, 2022
April 21, 2022
July 21, 2022
October 20, 2022
Due to Covid-19, the Annual Report from 2021 was provided to the City Council on 2/7/22 via email, rather than presenting in person.
As required under Huntington Beach Municipal Code 2.110.040(b), the Investment Advisory Board reviewed matters pertaining to the City’s investments as follows:
Reviewed the annual Investment Policy Statement.
Discussed cash management and the maintenance of continued sufficient liquidity to meet estimated expenditures.
Reviewed risk-return analysis as it relates to safety, liquidity and yield.
Reviewed and discussed relevant economic activity and policy.
Reviewed appropriate state and federal legislation as it may impact the City’s investments, including updates to the California Government Code Section 53601.
Reviewed any anticipated exposure to loss through the analysis of liquidity, credit & market value of investments.
Reviewed quarterly reports prior to presentation to the City Council.
Reviewed quarterly compliance with Investment Policy. No exceptions were identified.
Additionally, at the direction of the City Council, the Investment Advisory Board discussed the issue of whether limiting investments in fossil fuels would affect the City portfolio’s investment return. A response was sent to the City Council via email on July 28, 2022.
Conclusions
Based on the information reviewed by the Investment Advisory Board for 2022, the Board acknowledges that the City Treasurer has maintained compliance with all requirements in the City’s Investment Policy and related governmental regulations, and has managed the City’s investment portfolio in a prudent and suitable manner.