I. RECOMMENDATION:
Financial Services Director recommends the City Council Adopt Resolution No. 3953 approving the annual submittal of the City’s Investment Policy.
II. BACKGROUND:
Government Code Section 53646(a) requires that a public entity’s investment policy be reviewed annually by the governing body or an investment committee. An investment policy should identify the parameters of the investment function with the primary objectives being safety, liquidity and yield, in that order.
Portfolio Monitoring & Compliance
The Government Finance Officers Association (GFOA) recommends that an agency's investment policy explicitly require periodic reporting. Consistent with GFOA best practices, the Financial Services Department will continue to prepare quarterly summary investment reports within 45 days after the close of each quarter, with an Annual Investment Report prepared and filed within 60 days of year end. Quarterly and annual reports have been, and will continue to be, presented to City Council as an informational item. The City’s Financial Services Director is identified in the attached resolution as authorized to invest funds and otherwise do all things necessary to implement the Investment Policy.
III. DISCUSSION:
All financial investment instruments are constantly monitored and assessed for safety, liquidity and yield. The City’s idle funds have historically been in principal safe investments that protect its pooled cash, such as money market accounts, rolling Certificates of Deposit through Multi-Bank Securities in various FDIC insured accounts, the State of California's Local Agency Investment Fund (LAIF), Union Bank. Adoption of this annual policy will allow staff to continue to ensure continued compliance, safety of principal, sufficient portfolio liquidity, and an acceptable yield for the City's idle cash balances.
IV. ALTERNATIVES:
None.
V. FISCAL IMPACT:
None. |