CITY COUNCIL STAFF REPORT
Meeting Date: June 05, 2023
TO: THE HONORABLE MAYOR AND CITY COUNCILMEMBERS
SUBJECT: ADOPT RESOLUTION NO. ___-23 APPROVING THE CITY OF PLEASANT HILL INVESTMENT POLICY EFFECTIVE JULY 1, 2023
AND DELEGATING INVESTMENT AUTHORITY TO THE ELECTED
CITY TREASURER
SYNOPSIS
California state law requires the City Treasurer to render a statement of Investment Policy annually to the City Council at a public meeting and the City Council to annually delegate investment authority to the City Treasurer. The Budget Committee reviewed the investment policy at its meeting of May 3, 2023 and recommended approval to City Council. The City Treasurer recommends the Council adopt the proposed resolution approving the City of Pleasant Hill Investment Policy attached to the resolution effective July 1, 2023 and delegating the investment authority to the elected City Treasurer.
DISCUSSION
Background
Government Code 53607 et seq. requires the City Treasurer to “render” annually to the legislative body of the local agency at a public meeting a statement of investment policy. The investment policy is intended as a guide with specific controls for safety, liquidity and, lastly, yields.
Analysis
In consultation with the City’s professional investment advisor, Kara Hooks - Chandler Asset Management, the City Treasurer and Finance Department reviewed the City’s investment policy to 1) confirm that it continues to comply with California Government Code and 2) continues to provide strong safeguards over the City’s investment program. While the City’s investment policy continues to be robust, it is recommended that the City add additional protections recognized as industry best practices. The following are the main proposed changes in the attached Investment Policy:
Delivery, Safekeeping of Securities, and Custody: It is recommended the City adjust the exceptions list to remove mutual funds are not included in the Authorized Investments section.
Internal Controls: It is recommended the City include language discussing internal controls to further emphasis methods to maintain safety of the portfolio. Prudence: It is recommended the City enhance the Prudent Investor Standard language to include the full quote from California Government Code. Money Market Mutual Funds: It is recommended the City make a minor edit to the sentence describing the amount allowed to be invested in Money Market Mutual Funds. Glossary: It is recommended the City include a Glossary section to enhance the clarity of the investment policy by defining terms that may be unknown to a reader.
PUBLIC CONTACT
Public contact was made through posting of the City Council agenda on the City’s official notice bulletin board, at the Pleasant Hill Senior Center, and at the Pleasant Hill Police Department.
The agenda and staff report are posted on the City’s web page.
RECOMMENDED ACTION
Adopt the proposed resolution approving the City of Pleasant Hill Investment Policy effective July 1, 2023, and delegating the investment authority to the elected City Treasurer.
ATTACHMENT(S):
Proposed Resolution
City of Pleasant Hill Investment Policy 2023 - Redlined City of Pleasant Hill Investment Policy 2023 - Clean
Prepared by: Andrew Kalinowski, City Treasurer