CITY OF POMONA
COUNCIL REPORT
July 18, 2022
To: Honorable Mayor and Members of the City Council
From: James Makshanoff, City Manager
Submitted By: Andrew Mowbray, Finance Director/City Treasurer SUBJECT: ADOPTION OF A RESOLUTION APPROVING THE FISCAL YEAR 2022-23 STATEMENT OF INVESTMENT POLICY AND REAFFIRMING THE CITY TREASURER APPOINTMENT & ADOPTION OF A RESOLUTION AUTHORIZING THE CHANGE OF OFFICERS FOR LOCAL AGENCY INVESTMENT TRANSACTIONS RECOMMENDATION:
It is recommended that the City Council adopt the following resolutions:
RESOLUTION NO. 2022-107 – A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA, CALIFORNIA, APPROVING THE 2022-23 STATEMENT OF INVESTMENT POLICY FOR THE INVESTMENT OF PUBLIC FUNDS BY THE CITY TREASURER AND REAFFIRMING APPOINTMENT OF FINANCE DIRECTOR AS CITY TREASURER RESOLUTION NO. 2022-134 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA, CALIFORNIA, AUTHORIZING THE CHANGE OF OFFICERS TO ORDER THE DEPOSIT OR WITHDRAWAL OF CITY OF POMONA MONIES IN THE LOCAL AGENCY INVESTMENT FUND EXECUTIVE SUMMARY:
The Fiscal Year 2022-23 Statement of Investment Policy (Exhibit A) provides guidelines and parameters for the investment of idle cash and is annually approved and adopted by the City Council per Resolution (Attachment No. 1), if approved, will serve to constitute that adoption. Additionally, Section 2 of Resolution 2014-85, appointing the Finance Director as City Treasurer requires reaffirmation of appointment each year with the adoption of the Investment Policy.
Resolution 2022-134 (Attachment 2) is approving staff access to authorize withdrawal and deposits of the City’s Local Agency Investment Funds (LAIF) accounts. In order to participate in the investment program, LAIF requires a Resolution authorizing the deposit and withdrawal of funds as well as naming positions authorized to name individuals allowed to make those transfers.
FISCAL IMPACT:
None.
PREVIOUS RELATED ACTION:
On July 19, 2021, City Council approved the Fiscal Year 2021-22 Statement of Investment Policy and reaffirmed the City Treasurer appointment.
On June 17, 2019, City Council approved resolution 2019-74 approving the change of officers to order deposit or withdrawal of the City of Pomona Local Agency Investment Funds (LAIF) accounts.
DISCUSSION:
The City of Pomona conducts its investment activities in compliance with a Statement of Investment Policy, which is reviewed and adopted annually by the City Council. The policy has been formulated based upon the provisions of California Government Code Section 53601, et. seq., and the Statement of Investment Policy herein submitted is in compliance with that section of the California Government Code.
As submitted for consideration, the City’s Statement of Investment Policy is in full compliance with applicable State Law. Upon approval, the Statement of Investment Policy will continue to furnish the City of Pomona with a source document, assuring compliance with current State legislation, while providing staff with a tool by which to safely implement future investment decisions on behalf of the City, the Housing Authority, and the Successor Agency.
The City consulted Chandler Asset Management (CAM) on modifying the City Investment policy to allow different investment vehicles which would be advantageous in the current market climate. The current policy was restrictive whereas this new policy will allow for a variety of investments while still being in compliance with State regulations. The specific changes to the policy are as follows:
Authorized Investments
CAM recommends including pass through securities to the permitted investment list CAM recommends updating the language related to LAIF to allow for the increase in LAIF limits Investments not Approved
CAM recommends updating the list of not permitted investments removing CMO’s and mortgage pass-throughs as they are being recommended to add to the permitted investment list Risk Management
CAM recommends adding Supranationals and mutual funds to those investments exempt from the 5% Issuer limit Reporting
CAM recommends adding language requiring monthly transaction reports submitted to council In order to participate in the investment program, LAIF requires a Resolution as attached authorizing the deposit and withdrawal of funds as well as naming positions authorized to name individuals allowed to make those transfers.
Based upon the information contained herein, it is recommended that the City Council adopt the attached resolution approving the City of Pomona’s Statement of Investment Policy and reaffirming the City Treasurer Appointment.
Prepared by:
_____________________________
Dustin Andolsen
Accounting Supervisor
ATTACHMENT(S):
Attachment No. 1 – Resolution No. 2022-107
EXHIBIT “A” - Fiscal Year 2022-23 Statement of Investment Policy Attachment No. 2 – Resolution No. 2022-134
Resolution – Adoption of the Statement of Investment Policy for Fiscal Year 2022-23 & Adoption of Change of Officers for LAIF Transactions