DATE:
July 15, 2025
TO:
LaTanya Bellow, City Manager
FROM:
Sharon Friedrichsen, Finance Director
Brian Moura, Finance Consultant (RGS)
SUBJECT:
Resolution Of The City Council Of The City Of Emeryville Amending The City Of Emeryville Investment Policy To Provide Quarterly Investment Reports Recommendation
Staff recommends that the City Council approve the resolution amending the City Investment Policy to provide for Quarterly Investment Reports to the City Council.
Background
City Funds are invested in accordance with the City’s Investment Policy, which follows the requirements outlined within California Government Code Section 53601 that governs local government agency investments in California. The City’s Investment Policy places a high priority on ensuring the safety of principal investments first and then ensuring that the liquidity needs of the payments for City obligations are met prior to considering any yield on investments, consistent with State law.
California Government Code Section 53646 requires a Statement of Investment Policy to be submitted annually to the local agency legislative body for consideration at a public meeting. The City Council reviewed and updated the Investment Policy on September 3, 2024. City staff intends to bring forward a comprehensive review of the Investment Policy in September/October for Council’s consideration. However, at this time, to coincide with the new fiscal year, staff recommends a technical change in the reporting frequency.
California Government Code Section 53607 states that “the authority of the legislative body to invest or to reinvest funds of a local agency, or to sell or exchange securities so purchased, may be delegated for a one-year period by the legislative body to the treasurer of the local agency, who shall thereafter assume full responsibility for those transactions until the delegation of authority is revoked or expires, and shall make a monthly report of those transactions to the legislative body. Subject to review, the legislative body may renew the delegation of authority pursuant to this section each year.” The City’s current Investment Policy includes a requirement for monthly reports on investments to be made to members of the City Council by the Finance Director, acting as the City’s Treasurer. However, California Government Code Section 53646(b)(1) allows for quarterly reporting to the legislative body. Many local government agencies report quarterly.
The proposed revisions to the “Reporting” section of the Investment Policy replace the current language below pertaining to monthly reporting to quarterly. In addition, the updated reporting requirements adhere to California Government Code Section 53646.
Current Investment Reporting Policy:
The Treasurer shall submit to each member of the City Council a monthly report. The report shall contain a complete description of the portfolio, including the types of investments, issuers, maturity dates, par values and current market values. The report will also include a certification of the following:
All investments meet the requirements of the City’s investment policy.
Sufficient investment liquidity and anticipated revenues are available to meet the City’s budgeted expenditure requirements for the next six months.
Proposed Investment Reporting Policy:
The Treasurer shall review City Investments and provide Quarterly Investment Reports to the City Council that include the face amount of cash investments, the classification of the investments, the name of the institution or entity of investments, the rate of interest, the maturity date, the current market value and accrued interest due for all securities.
The report will also include a certification of the following:
All investments meet the requirements of the City’s investment policy.
Sufficient investment liquidity and anticipated revenues are available to meet the City’s budgeted expenditure requirements for the next six months.
The quarterly reports will be submitted to the City Council within forty-five (45) days following the end of the quarter covered by the report as per Section 53646 (b)(1) of the California Government Code. The quarterly reports shall be placed on the City Council’s meeting agenda for its review and approval. If there are no Council meetings within the 45-day period, the quarterly report shall be presented to the Council at the soonest possible meeting thereafter.
Fiscal Impact
Adoption of the proposed revisions to the City Investment Policy will have no direct fiscal impact. However, changing the frequency of the reporting to quarterly will increase efficiency within the Finance Department and encourage more transparency by including the reports on a Council meeting agenda as an informational report.
ADVISORY BODY REVIEW
The Finance Department goals outlined within the 2023-25 and 2025-27 City Budgets include revising the City Investment Policy to provide for Quarterly Investment Reports as proposed in this Council Report.
PREPARED BY: Brian Moura, Finance Consultant (RGS)
REVIEWED BY: Sharon Friedrichsen, Finance Director
Approved and Forwarded to the
City Council of the City of Emeryville:
LaTanya Bellow, City Manager
Attachments
Draft Statement of Investment Policy (Redline)
Draft Resolution
Exhibit A- Statement of Investment Policy (Clean)
Amend City Investment Policy – Quarterly Investment Reports City Council Meeting | July 15, 2025
City of Emeryville
CALIFORNIA
MEMORANDUM