City Council
259 N. Wilma Avenue
Ripon, CA 95366
MEMO
To: Honorable City Council
From: Lisa Roos, City Clerk & Finance Director
Date: 06/13/2023
Subject: Investment Policy - Update
RECOMMENDED ACTION:
This resolution amends the City of Ripon’s Investment Policy to be in compliance with the current California Government Code that was updated in 2020.
BACKGROUND:
The City of Ripon adopted an Investment Policy in 1996 and later amended it in 2003.
Staff recently reviewed the Policy and recommend the Policy be amended to address missing information and the 2020 California Government Code changes related to local agency investments.
DISCUSSION/ANALYSIS:
Generally, the City’s Investment Policy was updated to include the following changes:
1. The prior Policy did not identify the designated official for reviewing and reporting on investments. The Policy has been updated to designate the City Clerk in this role.
2. Changes to the list of authorized investments at the back were made to be consistent with the list of authorized and suitable investments in the Policy. For example, Shares of a Joint Powers Authority” and “Supranational Obligations” were explicitly added to the list of authorized investments even though these were referenced and allowed in the original Policy under Section 7.0 O, which authorizes other investments under Section 53601.
3. California Government Code section 53601, which deals with local agency investments, was updated in 2020 and some of the percentages and regulations changed. For example, no more than 10% of funds may be invested in certain types of investment, so this verbiage was added throughout the Policy; maximum maturity dates for Bankers Acceptances and Prime Commercial Paper changed, so this information was updated in the list of authorized investments; and Section 53601(c) regarding State Registered Warrants, Notes and Bonds was broken out into Section(c) for California only and (d) for the other 49 states, which renumbered all the other subsections.
Attached is a final version and a redline version of the Policy, which shows the changes from the originally adopted Policy to the proposed amended Policy.
FISCAL IMPACT:
N/A
Attachments:
1. Investment Policy 2023.06
2. Investment Policy 2023.06 - REDLINE
RESOLUTION NO. 23-28
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
RIPON AMENDING THE CITY'S INVESTMENT POLICY
WHEREAS, on June 18, 1996, the City of Ripon (“City”) Council adopted Resolution No. 96-63 adopting a formal investment policy for the City of Ripon; and WHEREAS, on August 19, 2003, the City amended that policy; and WHEREAS, the City is desirous of updating this policy to be in compliance with the current California Government Code Section 53601 and identifying the City Clerk as the designated official for reviewing and reporting on investments.
NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS:
1. The City Council does hereby adopt the above Recitals as true, and adopts them herein.
2. The City Council hereby amends the City of Ripon Investment Policy, as attached hereto in Exhibit “A” and incorporated herein.
3. This Resolution shall take effect upon its adoption.
4. The City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Ripon this 13th day of June, 2023, by the following vote:
RESULT: ADOPTED BY CONSENT VOTE [UNANIMOUS]
MOVER: Daniel de Graaf, Council Member
SECONDER:Leo Zuber, Vice Mayor
AYES: Michael Restuccia, Leo Zuber, Daniel de Graaf, Gary Barton ABSENT: Dean Uecker
THE CITY OF RIPON,
A Municipal Corporation
By ________________________________
MICHAEL RESTUCCIA, Mayor
ATTEST:
By: ___________________________
LISA ROOS, City Clerk