MEETING DATE:
November 26, 2024
SUBJECT:
Title
RESOLUTION NO. 2024-9382 - REPEALING RESOLUTION NO. 2023-9249 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
Not 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 of the local agency at a public meeting.”
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 the following revisions to the current investment policy previously reviewed and approved by City Council on December 12, 2023:
- Section VIII Authorized Investments Subsection L - Revisions will make this section applicable to Local Government Investment Pools (LGIP) generally rather than the California Asset Management Program (CAMP) specifically. This would allow the City to invest in additional LGIPs outside of CAMP if appropriate.
- Section XVI Reporting - Revisions will simplify language regarding monthly reporting to better reflect the California Government Code. Monthly investment reports provided to Council will be unchanged.
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 2024-9382
2) Exhibit A - City Investment Policy
Prepared/Submitted by: Jeffrey Jorgenson, Accounting and Treasury Manager
Reviewed by: Donna Apar, Finance Director
Approved by: Michelle Bender, City Manager