1 STAFF REPORT
DATE: June 21, 2022
TO: Honorable Mayor and Council Members
FROM: Krystle Ang Palmer, City Treasurer
SUBJECT: Approval of the 2022 City of Burbank Investment Policy
RECOMMENDATION
Approve the 2022 Investment Policy as proposed.
BACKGROUND
As part of the City Council’s annual review of the City’s Statement of Investment Policy and, in accordance with the requirements of the Cali fornia Government Code, the City Council will adopt the City’s Statement of Investment Policy, inclusive of amendments, on an annual basis.
DISCUSSION
Aside from date, name, and other minor changes, the following proposed changes to the Policy are worth noting (page references are to pages of the Investment Policy):
• Page 16, Exhibit A: Liquidity
o The liquidity calculation was updated to reflect numbers from the 202 1-22 budget. The necessary liquidity for 202 2, calculated at $ 101 million, increased from $96 million in 2021.
• Page 6, Section I: State and Local Agency Obligations o Added language from the California state code, clarifying that out -of-state municipal bonds may include “ bonds payable solely out of the revenues from a revenue- producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states.”
• Page 18: Exhibit C: List of Qualified Brokers from which the City May Purchase Investments
CITY
TREASURER
2 o One of our current brokers, Kevin Webb, recently changed firms, switching from Piper Jaffray to Robert W. Baird. With this move, he completed an updated Broker-Dealer Questionnaire from the City of Burbank . He also submitted his firm’s financial statements which were reviewed by the City Treasurer’s Office. Given his extensive industry knowledge and experience, the City Treasurer recommends the City retain Mr. Webb’s services.
This report was discussed by the Treasurer’s Oversight Review Committee (TORC) and the Fiscal & Treasurer’s Review Group (F&TRG). The TORC members are:
• Darin Guggenheimer, CEO, Gain Federal Credit Union
• Norelyn Kurasz, former CEO, Cedar Sinai Federal Credit Union • Richard Martin, CPA
• Scott Rife, retired Senior Vice President, Boston Private Bank and Trust • David Escobar, First Vice President, UBS Financial Services
The F&TRG members are:
• Council Member Bob Frutos
• Council Member Nick Schultz
• City Manager Justin Hess
• Assistant City Manager Judie Wilke
• Financial Services Director Jennifer Becker
• Chief Financial Officer of Burbank Water & Power Bob Liu
FISCAL IMPACT
None.
CONCLUSION
The 202 2 Investment Policy as proposed complies with the current State statutes governing the investment practices of local government entities located within the State of California.
ATTACHMENT
Attachment 1 – Proposed 2022 Investment Policy
Attachment 2 – Proposed 2022 Investment Policy (Redline)