DATE:
July 18, 2023
TO:
Mayor and City Council Members
Chair and Board Members, Hesperia Water District
FROM:
Rachel Molina, City Manager
BY:
Casey Brooksher, Assistant City Manager
SUBJECT:
Designation of Officers for Local Agency Investment Fund
RECOMMENDED ACTION
It is recommended that the City Council adopt Resolution No. 2023-40 and the Board of Directors of the Hesperia Water District adopt Resolution HWD 2023-13, authorizing the investment of monies in the Local Agency Investment Fund (LAIF) for the City of Hesperia.
BACKGROUND
Pursuant to Chapter 730, Section 16429.1 of the California Government Code, the City of Hesperia and the Hesperia Water District have invested funds with the State Local Agency Investment Fund (LAIF) for many years. As referenced in the City’s Annual Statement of Investment Policy, LAIF is part of the Pooled Money Investment Account that was created by statute and governed by a five-member board chaired by the State Treasurer. Under Government Code Section 16429.3, funds deposited with LAIF are precluded from being transferred or seized by any State agency. The funds under the direction of the City and its component units are pooled for investment purposes and investments with LAIF are made under the adopted City and Water District resolutions. Although pooled for investment purposes, the funds are accounted for separately to ensure the proper allocation of investment interest to each respective fund. LAIF provides competitive rates and offers flexibility in drawing funds, free of penalties for same day available cash, in order to pay peak cash flow obligations.
The initial authorization to invest with LAIF was provided to the Water District in 1986 via Water District Resolution 86-4 and to the City of Hesperia in 1988 via City Resolution 88-37. Over the subsequent years, the LAIF resolutions have been updated to reflect the signatures of the officer titles in effect at the time, including Resolutions 2002-75, 2018-19, 2021-33, HWD 2002-18, HWD 2018-08, and HWD 2021-14, with the most recent change in 2021 reflecting the officer titles of City Manager, Assistant City Manager, and the Director of Administrative Services.
ISSUES/ANALYSIS
The 2021 resolutions have now become outdated, and new signatures are needed to replace the officer titles that are no longer in effect. The attached resolutions are in the required format prescribed by LAIF and include the titles of City Manager, Assistant City Manager, and Deputy City Manager/City Clerk as officers who will have authorization to direct staff to perform the ongoing investment operations with LAIF.
FISCAL IMPACT
Adoption of these resolutions will allow monies that are not required for immediate use to continue to be invested with LAIF.
ALTERNATIVE(S)
Provide alternative direction to staff.
ATTACHMENT(S)
Resolution No. 2023-40
Resolution HWD 2023-13
City of Hesperia STAFF REPORT City of Hesperia STAFF REPORT City of Hesperia
STAFF REPORT
City of Hesperia
STAFF REPORT
Staff Report to the Mayor and City Council Members
Chair and Board Members, Hesperia Water District
Designation of Officers for Local Agency Investment Fund July 18, 2023