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Texas Agricultural Aviation Association | www.taaa.org
TAAA Newsletter
NOTICE OF INTENT
 
Please note that it is the intention of the TAAA Board of Directors to seek a change to the current provisions of the TAAA Bylaws that govern the investment of savings of the association.  Specifically, current bylaws limit the amount of money that the TAAA Board may cause to be invested in equity markets (the stock market) to $100,000.

The TAAA Board is proposing to change this limitation to an amount established by the Board of Directors.  This change is intended to give the Board more flexibility in allocating the association's reserve funds in a manner that has the potential to earn more than current low interest rates provide. 

The decision to invest funds in the stock market also carries a higher risk of loss of funds which is why the Board has been historically very careful with such investments.  The Board did instruct the investment of $100,000 into the stock market in October 2014.  Since that time, the investment firm selected by the Board to make these investments followed a conservative strategy, and that account is now worth $120,384.10.  This represents an annualized return of 6.4%, which is greater than the amount that would have been earned in money market type accounts.

The proposed bylaw change would allow the board to establish a higher threshold to put into the stock market.  Currently, TAAA has approximately $200,000.00 in reserve funds.  In the past, the Board has used these funds to support legislative initiatives such as the Tower marking bill, deal with periodic swings in association income, and support various initiatives of NAAA and NAAREF. 

This notice is being given at least 15 days in advance in accordance with TAAA Bylaw requirements, letting everyone know that the proposal will be considered at the Annual Membership Meeting in the Iris/Tulip Room on January 11 at 2:00 p.m.


 
Current Bylaw Provision

Article III, Section 6 (b)
3.     The Board of Directors shall periodically determine how to invest the case reserves and assets of the Association subject to the limitations of this Article. An amount up to $100,000 of such investments may include equalities, bonds, notes, certificates of deposits, or other such widely recognized investment mechanisms as the Board of Directors determines prudent. The balance of the funds in excess of $100,000 available for investment by the Association must be invested in such investment vehicles as are authorized by the Public Funds Investment Act, Art. 2256.001, et seq., Government Code, Texas Civil Statues Revised.
 
 
 
Proposed Change:

Article III, Section 6 (b)
3.     The Board of Directors shall periodically determine how to invest the case reserves and assets of the Association subject to the limitations of this Article. An amount up to $100,000 established by the Board of Directors of such investments may include equalities, bonds, notes, certificates of deposits, or other such widely recognized investment mechanisms as the Board of Directors determines prudent. The balance of the funds in excess of the amount determined by the Board of the Directors that is $100,000 available for investment by the Association must be invested in such investment vehicles as are authorized by the Public Funds Investment Act, Art. 2256.001, et seq., Government Code, Texas Civil Statues Revised.

QUICK LINKS
TAAA Website
NPDES PGP Compliance Tools 

MET-Marking Warning Tools

UPCOMING EVENTS
January 10-12, 2018
TAAA Annual Convention and Exhibition 
Galveston, TX. 
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TAAA | | lcampos@thetexascapitol.com | http://www.taaa.org
P.O. Box 684570
Austin, TX 78768