Resolution 2024-### Page 1
RESOLUTION 2024-###
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN PABLO ADOPTING AN INVESTMENT POLICY FOR FISCAL YEAR 2024/25
WHEREAS, Government Code Section 53607 requires a legislative body to delegate investment authority annually;
WHEREAS, Government Code Section 53646 states that the Treasurer or Chief Financial Officer may annually render to the City a statement of investment policy;
WHEREAS, if so rendered and if there are changes to the policy, the policy is required to be reviewed and approved at a public meeting;
WHEREAS, best management practices dictate, and the Investment Policy requires, that the City continue to review and approve its Investment Policy annually;
WHEREAS, the City’s Investment Policy was last reviewed and approved on June 15, 2020 for Fiscal Year 2020/21;
WHEREAS, following the recommendation of the City 's/LSA’s investment advisor, Insight Investment, Staff proposes to add a section to allow investment in Asset Backed Securities (ABS). An ABS is a financial security, typically a bond or note, which is backed - or collateralized - by a pool of assets, such as credit card receivables, home equity loans, and auto loans. An ABS is similar to a mortgage-backed security except that the underlying securities are not narrowly based on mortgages but are more broadly based assets. The reason for proposing the use of ABS is to provide an alternative to corporate debt and to further diversify the portfolio;
WHEREAS, Insight Investment opines that the proposed Policy is consistent with the restrictions in the current California Government Code and the City’s overall investment objectives of:
1. Preservation of capital and protection of investment principal.
2. Maintenance of sufficient liquidity to meet anticipated cash flows.
3. Attainment of a market rate of return.
4. Diversification to avoid incurring unreasonable market risks.
NOW, THEREFORE, BE IT RESOLVED that the foregoing recitations are true and correct, and are included herein by reference as findings.
BE IT FURTHER RESOLVED that the attached Investment Policy is approved and adopted, and supersedes the Investment Policy approved by Resolution 2020-075 on June 15, 2020.
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Resolution 2024-### Page 2
ADOPTED this 17th day of June, 2024, by the following votes:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
ABSTAIN: COUNCILMEMBERS:
ATTEST: APPROVED:
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Dorothy Gantt, City Clerk Patricia Ponce, Mayor