Permanent Fund Committee Meeting Minutes September 13, 2007

Session 07-02 a Regular Meeting of the Permanent Fund Committee was called to order at 6:04 p.m. on September 13, 2007 by Dennis Novak at the Homer City Hall Cowles Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska.

PRESENT: COMMITTEE MEMBERS: REGINA HARVILLE, JO JOHNSON, MATT NORTH, DENNIS NOVAK, BETH WYTHE

APPROVAL OF AGENDA

The agenda was amended under New Business Item A – Request for Proposal to Invitation for Proposal. The amended agenda was approved by consensus of the Committee.

PUBLIC COMMENTS REGARDING ITEMS ON THE AGENDA

None.

APPROVAL OF MINUTES

None.

VISITORS

None.

STAFF & COUNCIL REPORT/COMMITTEE REPORTS/BOROUGH REPORTS

None.

PUBLIC HEARING

None.

PENDING BUSINESS

None.

NEW BUSINESS

A. Recommendations for Drafting Request for Proposals (RFP) for an Investment Account

Ninety-five percent of the total distribution is designated by ordinance to be allocated to a Permanent Fund (the Fund). The remaining five percent of the total distribution is designated to be allocated to an investment fund, the proceeds of which will be distributed on an annual basis for the benefit of non-profit organizations (the NP fund).

The proposed investment strategies are for sixty percent of the funds to be invested in income funds, and the remaining forty percent to be invested in growth funds.

The investment objectives of the income portion of the funds (60% - fixed/bondable) are:

1. Net gains will be allocated on an annual basis for distribution.

2. Principle of the Fund may be used as a source of loan funds for city capital projects pursuant to HCC 3.12.070. Therefore, investment strategies must take into consideration the possible need for liquidity.

The investment objectives of the growth portion of the funds (40% - equity) are:

1. Net gains will be retained in the fund as they are recognized, with the objective of growing the fund balance.

The City Council is also requesting recommendations for the periodic redistribution of the funds to maintain the sixty/forty balance, ensuring adequate income continues to be available for distributions as the fund balance continues to grow.

B. Investment Options for 5% Windfall or Settlement Funds

The remaining five percent of the total distribution is designated to be allocated to an investment fund, the proceeds of which will be distributed on an annual basis for the benefit of non-profit organizations (the NP fund).

C. Developing an Informational Meeting on Investing for the Permanent Fund Committee and City Council.

It was suggested the top three proposers would be invited to a council meeting to present their proposal.

D. Permanent Fund Committee Member Vacancy

The Committee discussed the possibility of adding another member. Advertisement for the vacant seat will commence.

INFORMATIONAL MATERIALS

None.

COMMENTS OF THE AUDIENCE (3 MINUTE TIME LIMIT)

There was no audience.

COMMENTS OF THE CITY STAFF

None.

COMMENTS OF THE COUNCILMEMBER

None.

COMMENTS OF THE CHAIR

Chair Novak had no comment.

COMMENTS OF THE COMMISSION

There were no comments.

ADJOURNMENT

There being no further business to come before the Committee, Chair Novak adjourned the meeting at 8:01 p.m. The next Regular Meeting is scheduled for Thursday, October 11, 2007 at 6:00 p.m. in City Hall Cowles Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska.

______________________________
JO JOHNSON, CMC, CITY CLERK

Approved: _____________________