Item #04
Date: July 2, 2024
To: Mayor and City Council
From: Jennifer Styczynski, Finance Director
Jim Schaad, City Manager
Subject: Adopting the Annual Statement of Investment Policy Recommendation:
Pass a Motion to adopt Resolution 2024-XX adopting the Annual Statement of Investment Policy.
Rationale for Recommendation:
In accordance with Government Code Section 53646 (a)(2), the Treasurer or Chief Fiscal Officer may present a Statement of Investment Policy (Policy) each year for adoption. The purpose of the Policy is to enhance opportunities for a prudent and systematic investment process and formalize investment-related activities, which comprise of sound cash management, cash flow projections, cost effective banking and to enhance the economic status of the City while protecting its pooled cash resources.
Background:
The City of Marysville’s Investment Policy communicates the City Council’s investment objectives, delegation of authority, investment procedures and defines authorized and suitable investments for the City. The City Council last updated the Policy on July 18, 2023. As recommended by the State of California Government Code Section 53646(s)(2) and currently required under Policy Considerations – Investment Policy Review/Adoption, the City Treasurer has completed a review of the Policy for consideration and approval.
Discussion & Analysis:
The Treasurer has reviewed the Policy and modified a minor change to the authorized permitted investment types to be in line with Government Code Section 53601. The desired additional language to the first bullet point on page 7, in the Policy is noted in bolded, italicized text as follows:
• Any privately issued mortgage pass-through security, collateralized mortgage obligation, mortgage backed or other pay-through bond, equipment lease-backed certificate, consumer receivable pass-through certificate, or consumer receivable-backed bond (“mortgage pass-through and asset-backed securities”) that are not issued or Item #04
guaranteed by a public agency or insurer identified in Section 53601 subdivisions (b) or (f). Securities eligible for investment under this subdivision shall be rated in a rating category of "AA", its equivalent, or better by a NRSRO and have a maximum remaining maturity of five years or less. The purchase of securities authorized by this subdivision may not exceed 20 percent of the City's surplus money that may be invested pursuant to this section.
Fiscal Analysis:
None, there is no fiscal impact of this item.
Attachments:
1) Resolution No. 2024-XX
2) City of Marysville Statement of Investment Policy