Agenda Report
Fullerton City Council
MEETING DATE: august 1, 2023
TO: CITY COUNCIL / SUCCESSOR AGENCY
SUBMITTED BY: Ellis chang, director of administrative services / city treasurer PREPARED BY: Ellis chang, director of administrative services / City treasurer SUBJECT: california class JOINT POWERS AUTHORITY INVESTMENT POOL AS additionAL investment option
SUMMARY
To inform City Council of California CLASS Joint Powers Authority Investment Pool as an additional investment option to manage the City’s working capital.
RECOMMENDATION
Receive and file.
CITY MANAGER REMARKS
No recommendation.
PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statement:
Fiscal and Organizational Stability.
FISCAL IMPACT
No additional budgetary impact. The addition of California Class as an investment option in conjunction with Local Agency Investment Fund (LAIF) enables the City to maximize yield while ensuring safety and liquidity.
DISCUSSION
City Council approved Investment Policy updates on February 27, 2023. One update added investments in Joint Powers Authority Investment Pools. The City’s investment advisory firm, Public Trust Advisors, created California CLASS, a Joint Powers Authority Investment Pool in California in 2022. California CLASS meets the City’s authorized investments requirements outlined in the Investment Policy. California CLASS also complies with California Government Code Section 53601(p), which authorizes California Cities to invest in shares issued by a Joint Powers Authority.
The Investment Advisory Committee (IAC) reviewed California CLASS on July 20, 2023 and supports the Treasurer’s recommendation to add this investment as a supplement to LAIF to manage the City’s operating working capital.
The City invested in LAIF to provide returns on its operating working capital. The City created an “Enhanced Cash” portfolio to take advantage of US Treasury yields. The Treasurer intends to close out the City’s individualized “Enhanced Cash” portfolio as investments mature and transfer funds to California CLASS to support daily liquidity while optimizing interest earnings with the priority on safety with the addition of California CLASS. The Treasurer will utilize both LAIF and California CLASS, along with funds in City operating accounts to manage the City’s working capital.
Attachments:
Attachment 1 – California CLASS Features and Benefits
Attachment 2 – California CLASS Product Comparison
cc: City Manager Eric J. Levitt
California Class Investment Option
August 1, 2023 - Page 2