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Anaheim, CA 92805
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CITY COUNCIL AGENDA REPORT
City of Anaheim
DEPARTMENT OF FINANCE
DATE: DECEMBER 5, 2023
FROM: FINANCE DEPARTMENT
SUBJECT: 2024 INVESTMENT POLICY
ATTACHMENT (Y/N): YES ITEM # 05
GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
That the City Council, by Motion, approve the 2024 Investment Policy for the City of Anaheim.
DISCUSSION:
Government Code Section 53646 mandated that annual investment policies and quarterly reports be rendered to the legislative body. Assembly Bill (AB) 2853, which was signed on September 29, 2004, amends Government Code Section 53646 to remove the requirements; the rendering of these documents is optional. Although the Annual Investment Policy and Quarterly Reports are no longer required, we believe it prudent to continue providing the legislative bodies with these documents.
One change, along with the date is proposed. Currently, the City of Anaheim Investment Policy reflects a 10% investment limit in one Mutual Fund, however, the State Treasurer’s Office has provided clarifying language whereby California Code allows for the investment of up to 20% of the City’s portfolio in one Money Market Mutual Fund (MMF). It is recommended that the Investment Policy reflect this allowance to take advantage of conditions where larger yield differentials could earn greater returns. The City only invests in U.S. government MMFs. These suggested changes are highlighted in Section 11.14 “Authorized Investments” of the proposed 2024 Investment Policy for the City of Anaheim.
It remains the City’s priority to be mindful of safety, liquidity, and yield (in that order) as this or any change to the City’s Investment Policy is contemplated.
The attached Investment Policy, effective January 1, 2024, has been reviewed by the City’s Budget, Investment and Technology (BIT) Commission.
IMPACT ON BUDGET:
There is no budgetary impact.
2024 Investment Policy
December 5, 2023
Respectfully submitted,
Deborah A. Moreno
Finance Director/City Treasurer
Attachment:
1. Investment Policy