BONDS AWAY

Playing catchup. Not much to report last two council meetings business pretty sparse.
Ruston Regular Council meeting Monday April 4, 2010 7pm.
PUBLIC COMMENTS
none
BUSINESS
Agenda item 1. Investment Presentation - Paul Jarvis with Time Value Investments
Mayor-
.Why are returns so poor?
.What would be average return of four million dollars over four years?
Paul- 40 minite mismash on selling bonds emphasizing three year bonds.
Mayor-
.You could talk all night long.
.Do you have any recommendations for us?
Paul-Two years makes no sense. Three years is better.
Mayor- Discuss internally bring forth resolution at next council meeting.
Paul-Money stays in USBank.
Mayor-to Paul, you and I will talk tomorrow 10am.
Paul-Bring go over account paperwork.
MAYOR'S TIME- Nothing at this time.
COUNCIL TIME-
Lyle-
.Thanks Chief Torbet for tree ceremony.
.Friends and relatives of Phil Parker in attendance.
.Thanks Bradley Huson for procuring trees.
.Thanks Beth Torbet, Karen Pickett for plaque in ground.
.Thanks Don Torbet for fixing microphones and speakers.
Adjourn 8:02
Note: Public speaker microphone comes in loud and clear. Still difficult to hear council members and just get snippets of some comments. Jane and Bradley almost impossible to hear.
Following is a followup email sent to the Mayor and Council Members regarding buying bonds and the pitfalls that are presented:

Bonds are very dicey right now. Standard and Poors just down graded USA credit rating to NEGATIVE. Could send interest rates out of sight. Congress is at a showdown with recession depression.
Bonds can go up and down.
Up if interest rates decline. Currently at bottom chances going up NIL.
Down if interest rates go up VERY LIKELY.
Never buy CALLABLE bonds only benefits seller usually offers slightly higher interest rate.
We are in a perilous time. Keep money in several banks or buy 6-month treasury notes. NOTE:6-months.
Three year notes are guaranteed to price decline at which time you sell at a loss or in three years get your original investment back less INFLATION.
Think of principle preservation not interest rates which theoretically capture price inflation.

Town of Ruston officials:
Mayor, Bruce Hopkins
Council, Bradley Huson, Jim Hedrick, Deborah Kristovich, Lyle Hardin, Jane Hunt
Attorney, Carol Morris
Planner, Rob White
Clerk/Treasurer, Myriah Mesa
Fire Chief, Don Torbet
Police Chief, Jeremy Kunkel
-30-