MEETING DATE:
December 14, 2021
SUBJECT:
Title
REPEALING RESOLUTION NO. 2020-8837 AND ADOPTING THE CITY’S ANNUAL INVESTMENT POLICY
Body
Recommendation
Recommendation
ADOPT the City’s annual investment policy.
Body
Board or Commission Action
Not applicable.
Relevant Council Strategic Theme
Planning for the Future
Good Governance
Relevant Department Goal
No applicable.
Executive Summary
California Government Code Section 53646(a)(2) declares that the Treasurer or Chief Fiscal Officer “may annually render to the legislative body a statement of investment policy, which the legislative body of the local agency shall consider at a public meeting. Any change in the Policy shall also be considered by the legislative body”.
Under the City’s current investment policy, an annual review of the policy is required.
Discussion
Annual adoption of the City’s Investment Policy provides an opportunity to regularly review the policy and ensure its consistency with the overall objectives of safety, liquidity, and yield, and its relevance to current law and economic trends. This annual review is placed on the City Council’s agenda each calendar year.
The process of developing, reviewing, and monitoring the investment policy serves as an important tool of communication among the Finance Director, the City Manager and the City Council. It also increases the probability of improved performance when it is part of a disciplined approach to the overall investment process. The policy itself is neither a protection against investment losses nor a guarantee of good performance. When a policy is put in place, state law recommends that investments be monitored and measured against the standards contained in the policy and the results reported to the governing body and other officials (California Government Code Section 53646 (b)(2)).
During this review period, Staff is recommending revising Section VIII Authorized Investments of the current investment policy previously reviewed and approved by City Council on December 8, 2020 to update the limitation for Mortgage Pass-Through Securities, Collateralized Mortgage Obligation, and Asset-Backed Securities as permitted by California Government Code section 53601(o) which would align with best practices set forth by the Government Finance Officers Association and California Debt and Investment Advisory Commission.
Environmental Review
Not applicable.
Fiscal Impact
Review and Adoption of the City’s Investment Policy will not result in any fiscal impact.
Attachment(s)
1) Resolution 2021-8959
2) Exhibit A - City Investment Policy
Prepared by: Donna Apar, Assistant Finance Director
Submitted by: Lisa Fowler, Finance Director
Reviewed by: Michelle Bender, HR/Risk Director/Deputy City Manager
Approved by: Jack Griffin, City Manager