Agenda Report
Fullerton City Council
MEETING DATE: november 19, 2024
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: city INVESTMENT POLICY UPDATES
SUMMARY
City Council consideration of City Investment Policy updates.
PROPOSED MOTION
Approve 2024 Investment Policy updates.
ALTERNATIVE OPTIONS
Approve the Proposed Motion
Other options brought by City Council.
STAFF RECOMMENDATION
Staff recommends the Proposed Motion.
CITY MANAGER REMARKS
The City Manager supports the investment policy updates.
PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statement:
Fiscal and Organizational Stability.
FISCAL IMPACT
No direct fiscal impact from action items in this agenda report.
BACKGROUND AND DISCUSSION
2024 Investment Policy Updates
The California Debt and Investment Advisory Commission (CDIAC) is an arm of the State of California Treasurer’s office that provides information, education and technical assistance on debt issuance and public fund investments to local agencies. CDIAC provides occasional updates to the types of investments in which local agencies may invest. The proposed updates to the Investment Policy follow local agency guidelines.
The first primary update (Section 8: Authorized Investments) increases the maximum issuer limit for Joint Power Authority Pools from 25% to 40% to enable the City to increase investments in this security type during periods when working capital balances are elevated due to property tax distribution timing. The second primary update (Section 8.K. Asset Backed Securities) conforms language relating to Asset Backed Securities to CDIAC guidelines which limits maturity of securities not guaranteed by an agency to a maximum five years. The second primary update has no impact as the City does not hold any asset backed securities. The other updates are administrative.
The Investment Advisory Committee did not meet quorum for its October 18, 2024 meeting. The members present reviewed the proposed updates and supported the Investment Policy updates.
Attachments:
Attachment 1 – Proposed 2024 Investment Policy Redline
cc: City Manager Eric J. Levitt
2024 Investment Policy Updates
November 19, 2024 - Page 2