STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of June 11, 2024
TO: Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Edwin Gato, Director of Finance
SUBJECT: Annual Approval of the City of Hercules Investment Policy RECOMMENDED ACTION:
Review and approve the City of Hercules Investment Policy.
BACKGROUND:
The investment of funds by a California local agency, including the types of securities in which an agency may invest, is governed by the California Government Code. The law requires that the legislative body of each agency adopt an investment policy, which may add further limitations than those established by the State. In addition, an agency’s investment policy must be reviewed annually, and any changes must be adopted at a public meeting.
Annual adoption of the City’s investment policy provides an opportunity to regularly review the policy to ensure its consistency with the overall objectives of safety, liquidity, and yield, as well as its relevance to current law and economic trends.
Analysis:
The City’s Investment Policy affirms the fiduciary responsibility to safeguard public assets and identify the opportunities for a systematic investment process. Priority is placed first on securing the safety of principal and the liquidity needed for payroll and other City obligations, then on yield of the investment.
The City’s Investment Policy is reviewed annually by the Finance Director and is attached to this report (Exhibit 1). The Policy has been developed in accordance with standards and policies established by the California Debt and Investment Advisory Commission (CDIAC) and the Association of Public Treasurers of the United States and Canada (APTUSC).
The Investment Policy requires staff to submit quarterly Investment Reports to the City Council. Investment Reports include investment summaries with the market value of securities and a statement confirming that current liquidity is adequate to meet expenditures for the next six months, as required by the California Government Code Section 53646.
Attachment 1 contains the City’s Investment Policy which is presented to the Council for annual approval. There are no changes to the policy recommended for the Council’s consideration.
FISCAL IMPACT:
This is an information report with no fiscal impact.
ATTACHMENTS:
Investment Policy
Date Page 1