Thursday, October 25, 2018

The Kentucky Association of Counties Leasing Trust held a Board of Trustees' meeting, pursuant to proper notice given in accordance with KRS 61.823, at 9:10 a.m. on Thursday, October 25, 2018 at 400 Englewood Drive in Frankfort, Kentucky.

The following Trustees were present: Chair Sue Carole Perry, Shelby Co. Clerk; Lynn Lane, Ballard Co. Clerk; Tommy Turner, LaRue Co. Judge/Executive; Amy Milliken, Warren Co. Attorney; and Gary Moore, Boone Co. Judge/Executive (via phone).

Others present were: Grant Satterly, Director of Financial Services; Brian Roy, Executive Director; Sue Blakeman, Assistant Director; Lonnie Campbell, Assistant Director; Kelly Mittler, Finance Officer; Jim Henderson, Deputy Director; Karen Basham, Chief Financial Officer; Rich Ornstein, Staff Attorney; R. J. Palmer and Keith Brock, Compass Municipal Advisors, LLC; Roger Peterman, Board Counsel; Becky Phillips, MCM CPAs & Advisors LLP; Roger Recktenwald, Director of Planning & Infrastructure; and Sonya Chesser, Executive Secretary.

Chair Perry called the meeting to order at 9:15 a.m.

Motion made by Lynn Lane, seconded by Tommy Turner, to approve the minutes of the September 27, 2018 meeting as presented. Motion carried.

Ms. Blakeman presented and discussed the following operational reports: check detail and deposit detail for September 2018; transactions by account as of September 30, 2018; and FY 2017/18 PAF budget for period July 1, 2018 - September 30, 2018.

Motion made by Amy Milliken, seconded by Tommy Turner, to approve the operational reports as presented.  Motion carried.

Ms. Blakeman presented a list of invoices to be paid for October 2018 totaling $39,936.68. She also included an invoice totaling $354,437.50 for the FY 2018/19 second quarter program administration fee and second quarter management fee payable to KACo bringing the total amount of $434,310.86 to be paid. Mr. Ornstein said the total amount of invoices includes a $250.00 board fee for Judge Moore for today's meeting. However, should Judge Moore be unable to participate, he asked that the board approve the bills including the $250 board fee contingent upon his participation in the meeting.

Motion made by Amy Milliken, seconded by Tommy Turner, to approve payments of the invoices totaling $434,310.86 including the $250.00 board fee for Judge Moore and contingent upon his participation in today's meeting. Motion carried.

Mr. Satterly presented and discussed the financial statement as of September 30, 2018.

Judge Moore joined the meeting at 9:35 a.m.

Mr. Satterly presented and discussed the investment report summary as of September 30, 2018 including the security position changes for the month of September and his personal view of the economic outlook for October.

Motion made by Tommy Turner, seconded by Lynn Lane, to approve the security position changes as presented.  Motion carried.

Mr. Satterly discussed the Fund's current investment policy for the board's review and recommended maintaining the current structure of the policy.  The board agreed to table the issue until the November meeting and asked Mr. Satterly to provide a copy of the current investment policy for their review.

Mr. Satterly presented and discussed the lease activity report for FY 2018/19 including the leases closed in the internal loan program. He said he would present a resolution at next month's meeting for the board's consideration concerning Clay County Fiscal Court.

Mr. Satterly provided an update on the Down Payment Housing Assistance Initiative.

Mr. Satterly said the KACo Executive Committee approved the concept of a new overnight investment program and authorized Mr. Roy to sign an agreement between KACo and Republic Bank upon review and approval of KACo's general counsel. He said the new program will be announced at the annual KACo conference.

Ms. Phillips presented and discussed the audited financial statement for years ended June 30, 2018 and 2017 including the Auditor's Communication report.

Motion made by Tommy Turner, seconded by Lynn Lane, to accept and approve the audit report as presented. Motion carried.

The next regularly scheduled meeting will be held November 29th at 9:00 a.m.

Motion made by Lynn Lane, seconded by Amy Milliken, to adjourn the meeting at 10:22 a.m.  Motion carried.