April 16, 2009               2:00 P.M.

Members in Attendance:
            Edward J. Leonard, Franklin County Treasurer
            John O'Grady, Franklin County Commissioner
            Don Brown, County Administrator
            Zach Talarek - Seniro Budget Officer, OMB – representing Commissioner Brooks
            Ken Wilson, Director, OMB – representing Commissioner Brown
            Shawn Rieder, Interim Director, OBM for Clerk of Courts – representing Clerk Mary Ellen O'Shaughnessy

Guests in Attendance:
            Dennis Yacobozzi – President, United American Capital Corporation
            Kevin Klingel – Vice President, United American Capital Corporation
            Emily Perkins, Investment & Cash Management Officer, FCT

Call to Order –
Treasurer Ed Leonard called the meeting of the Franklin County Investment Advisory Committee (IAC) to order at 2:10 p.m.

Approval of Minutes –
The first order of business was to approve the minutes from the January 21, 2009 meeting. Don Brown moved to approve the minutes and Ken Wilson seconded the motion. Minutes were approved.

Economic Outlook –
At this time, Treasurer Leonard turned the meeting over to Dennis Yacobozzi to present an overview of the Economic Outlook.

Review of the Strategy and Core Portfolio Report –
Mr. Dennis Yacobozzi
The investments of the County are in compliance with the Ohio Revised Code. The market is near or at the bottom with a little tone of positive regarding growth. This however seems to be a little premature as the market is of the opinion we are in a bottoming process. Equities are up but way off from where they began their descent.

• Unemployment at 8% but will go much higher before stabilizing.
• Inflation not a concern yet – they think interest rates will remain low for balance of the year, maybe 1st half 2010.
• Portfolio – the Fed is involved with Treasury with aggressively buying back treasuries, various federal agencies, mortgage backed securities and asset backed such as credit cards.
• The huge stimulus will be funded by massive borrowing. On the positive side, we’ve seen the yield spread compressed.
• Consumers still being very cautious and not spending.

At this time Mr. Yacobozzi reviewed the graphs that were handed out to attendees. He noted that the portfolio was evenly distributed through the four agencies and that UACC does not believe in buying treasuries at this point – too expensive.

Note that the market value is quite significantly higher than book value because the County owns US Treasuries, which are the safest, highest quality assets that are available for investments. Yield spread between agencies and treasuries are still attractive although they have compressed here lately. Most importantly, the County has stayed away from credit risks.

Liquid Portfolio
Treasurer Leonard then asked Emily Perkins to review the liquid portfolio summary as shown in the handouts.

• 1st Quarter Income - $6,153,319.33
• Income YTD 3/31/09 - $6,153,319.33
• As of March 31, our average daily balance was $437,546,234.97 because we just had our settlement. Our final balance was $189,251,375.72 after disbursement.
• Bid Franklin program has moved from $8 million to $4 million for time being.
• Reviewed list of banks holding CD’s; also our Money Market, High Net Worth Saving Accounts and Cash Accounts. Noted that we have a lot of interest from the local banks.

Mr. Yacobozzi pointed out that in March 2008 the book value of the portfolio was $460 million and in March 2009 it was $620 million due to a significant move of cash from liquidity to the core. Very favorable.

Investment Strategy -
Mr. Klingel reviewed the Bonds Proceeds Portfolio handout noting that an increase in bond proceeds showed an additional $20 million in new money, which was for the new court house, worked into the portfolio – now back up to $90 million after having been $78 million at the end of December.

• Cash balance of the money market - $5 million
• Purchases of $30 million (integrating the new $20 million into the portfolio at that time.
• Interest realized during the quarter $423,446.49
• Capital gains of $14,000.00

Mr. Yacobozzi reviewed the Core Portfolio handout showing the complete inventory of investments, purchases, sales/calls and interest history. The graphs show that we have 60% in non-callables, 31/32% in callable federal agencies. Risk profile show small amount of bonds maturing; bulk of county’s money is out beyond two years.

Future Meeting –
With no further discussion, Treasurer Leonard set the next meeting date as July 16, 2009 at 2:00 p.m.

Special Presentation –
A presentation with handouts on the proposed purchase of Ohio Air Quality Development Authority Bonds in support of the development of the golf course at the Bedford Landfill – now Central Park of Gahanna was presented to the IAC committee by the following:

Joel Teaford, Executive Director of Central Ohio Improvement Corporation
Agent, Jamie Sisto, Principal, Value Recovery Partners
Agent, Ralph Griffith, Principal, Value Recovery Partners
Sadicka White, Development Director, City of Gahanna

The Treasurer noted to the committee that Ohio law does not permit us to purchase these bonds because of the 30 year duration.

After the presentation, Treasurer Leonard asked for a motion to adjourn the meeting which was made by Commissioner O’Grady. Meeting adjourned.

Submitted by Janet Brown

Minutes were approved on July 16, 2009