CITY OF POMONA
COUNCIL REPORT
September 9, 2024
To: Honorable Mayor and Members of the City Council
From: Anita Gutierrez, City Manager
Submitted By: Andrew Mowbray, Finance Director/City Treasurer SUBJECT: ADOPTION OF A RESOLUTION APPROVING THE FISCAL YEAR 2024-25 STATEMENT OF INVESTMENT POLICY FOR THE CITY OF POMONA RECOMMENDATION:
It is recommended that the City Council adopt the following resolution:
RESOLUTION NO. 2024-117 – A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA, CALIFORNIA, APPROVING THE 2024-25 STATEMENT OF INVESTMENT POLICY FOR THE INVESTMENT OF PUBLIC FUNDS BY THE CITY TREASURER EXECUTIVE SUMMARY:
The Fiscal Year 2024-25 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.
FISCAL IMPACT:
None.
PREVIOUS RELATED ACTION:
On August 7, 2023, City Council approved the Fiscal Year 2023-24 Statement of Investment Policy and reaffirmed the City Treasurer appointment.
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 specific changes to the policy are as follows:
The relevant changes from Senate Bill 882 (effective 01/01/2024) was incorporated:
Section VIII(A). Updated language for pass through securities (ABS/MBS/CMO) to align with the passage of SB 882.
Added two terms in updated Glossary based on best practices of FAQs. Fiduciary: A person or organization that acts on behalf of another person(s) or organization that puts their clients’ interest ahead of their own as they are bound both legally and ethically to act in the other’s best interests. Paydown: A reduction in the principal amount owed on a bond, loan, or other debt.
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.
Prepared by:
_____________________________
Jordan Solis
Senior Accountant
ATTACHMENT(S):
Attachment No. 1 – Resolution No. 2024-117, with Fiscal Year 2024-25 Statement of Investment Policy as EXHIBIT “A” Resolution – Adoption of the Statement of Investment Policy for Fiscal Year 2024-25