1 STAFF REPORT
DATE: April 9, 2024
TO: Honorable Mayor and Council Members
FROM: Krystle Ang Palmer, City Treasurer
SUBJECT: Approval of the 2024 City of Burbank Investment Policy
RECOMMENDATION
Approve the 2024 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 California Government Code, the City Council must vote to 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 numbers listed refer to pages of the Investment Policy):
• Page 5, Section C: Non-negotiable Certificates of Deposit o Added language to clarify that “ Under Section 53653 of the California Government Code, treasurers may waive collateralization requirements for that portion of deposits insured pursuant to federal law, such as Federal Deposit Insurance Corporation (FDIC) and National Credit Union Administration (NCUA) insurance.”
• Page 6, Section H: Money Market and Money Market Mutual Funds o Added language from state code to clarify that exchange- traded funds (ETFs) are not a permissible investment for local agencies CITY
TREASURER
2 • Page 16, Exhibit A: Liquidity
o The liquidity calculation was updated to reflect numbers from the FY 2023- 24 budget. The necessary liquidity for 202 4, calculated at $124 million, increased from $115 million in 2023.
• Page 18: Exhibit C: List of Qualified Brokers from which the City May Purchase Investments
o One of our current brokers, Susan Munson, recently changed firms, switching from Cantor Fitzgerald to Academy Securities. With this move, she completed an updated Broker-Dealer Questionnaire and submitted her firm’s financial statements which were reviewed by the City Treasurer’s Office. The City Treasurer recommends the City retain Ms. Munson’s services. Ms. Munson has extensive industry experience with over 30+ years of experience, and she is active in the Cal ifornia investment community. Academy Securities is also veteran- owned and operated, with a social mission of helping recruit and train military veterans so they can transition into meaningful careers in finance.
o One of our current brokers, John Doke from UBS, has changed his area of focus and is now only serving wealth management clients. He recommended that his colleague, Chris Pocino, take over as coverage for the City of Burbank. Due diligence was performed on Chris Pocino, and he completed an updated B roker-Dealer Questionnaire, as well as submitted his firm’s financial statements. The City Treasurer’s Office reviewed his documents and recommends that the City approves his application.
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
The F&TRG members are:
• Council Member Konstantine Anthony
• Council Member Zizette Mullins
• City Manager Justin Hess
• Assistant City Manager Courtney Padgett
• Financial Services Director Jennifer Becker
• Chief Financial Officer of Burbank Water & Power Joe Lillio
3 ENVIRONMENTAL REVIEW
This activity has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and as such, is not a “project” subject to the requirements of the California Environmental Quality Act (CEQA) 14 Cal. Code Regs § 15378.
FISCAL IMPACT
None.
CONCLUSION
The 202 4 Investment Policy as proposed complies with the current State statutes governing the investment practices of local government entities located within the State of California and should be adopted by City Council.
ATTACHMENT
Attachment 1 – Proposed 2024 Investment Policy
Attachment 2 – Proposed 2024 Investment Policy (Redline)