DATE: November 16, 2022
TO: Council Budget and Finance Committee
FROM: Director of Finance
SUBJECT: Investment Portfolio Review and FY 2023 Statement of Investment Policy Update
RECOMMENDATION
That the Council Budget and Finance Committee reviews and comments on the FY 2021-2022 Year-End Portfolio Review (Attachment II) and recommends Council approval of the proposed updates from the City’s portfolio manager, PFM Asset Management, to the Fiscal Year 2023 Statement of Investment Policy (Attachments III and IV).
SUMMARY
This report provides an overview of the FY 2021-2022 year-end City investment portfolio. Staff is recommending that the Committee reviews the Fiscal 2023 Statement of Investment Policy.
BACKGROUND
The City’s Statement of Investment Policy (the Policy) requires that Council approve any staff-recommended changes to the Policy. This year’s Policy has recommended changes under Policy Section X; Investment Instruments, to address recent California Government Code (“Code”) changes that will go into effect on January 1, 2023. A detailed summary of the proposed changes is available in Attachment III. Staff worked in conjunction with the City’s portfolio manager, PFM Asset Management, to review the policy.
DISCUSSION
As part of the overview of the FY 2021-2022 year-end investment portfolio, staff reviewed and evaluated the need for any changes to the Policy. In conjunction with the City’s portfolio manager, staff recommends that the Committee recommend approval of the FY 2023 Statement of Investment Policy (Policy).
STRATEGIC ROADMAP
This is a routine operational item and does not relate to any of the priorities outlined in the Council’s Strategic Roadmap.
FISCAL IMPACT
There is no fiscal impact to the Committee receiving this report.
PUBLIC CONTACT
The Revised Statement of Investment Policy (Attachment IV) will be presented to the full City Council on December 6, 2022, for adoption.
Prepared and Recommended by: Nicole Gonzales, Deputy Director of Finance Dustin Claussen, Director of Finance
Approved by:
________________________________
Kelly McAdoo, City Manager