BACKGROUND:
Each fiscal year, staff presents the investment policy to Council for review and approval.
It is the policy of the City to invest public funds safely and in compliance with the requirements of the California Government Code to meet the daily cash flow needs while achieving a market rate of return minimizing the potential for losses arising from market changes or issuer default. This Statement of Investment Policy is intended to provide guidelines for the prudent investment of the City’s cash and to identify the City’s policies regarding the investment process. Investments of public funds shall be made in accordance with this Investment Policy. All participants in the City’s investment process shall seek to act responsibly as custodians of the public trust. Any investment transaction shall be avoided that might impair public confidence in the City’s ability to manage its assets or to govern effectively. Our primary investment strategy continues to be the safety of principal and the guideline to keep all investments made in accordance with the California Government Code.
DISCUSSION:
The City Council is required annually to both consider renewal of its delegation of investment authority to the Treasurer consistent with Government Code sections 56607 and 53608 and to review and consider any updates necessary or recommended by the Treasurer to the Investment Policy consistent with Government Code section 53646(a)(2). The policy incorporates the key investment policy components of the League of California Cities, the California Society of Municipal Finance Officers, the California Municipal Treasurers Association, the Government Finance Officers Association and the Government Accounting Standards Board ("GASB") Statement No. 40, Deposit and Investment Risk Disclosures. At Council’s direction, should there be any changes, staff reviews the City’s Investment Policy and current investments with the Finance Advisory Committee during its annual meeting to which the committee concurred with the policy and City Treasurer’s investments. This policy positions the City of Cathedral City to continue to provide the conservative stewardship of our funds, while maximizing earnings and maintaining liquidity of funds.
Staff has coordinated with the City Treasurer and we have determined there are no changes proposed to the investment policy.
FISCAL IMPACT:
None