Finance and Management Services
www.santa-ana.org/finance
Item # 10
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
June 18, 2024
TOPIC: Annual Statement of Investment Policy
AGENDA TITLE
Adopt a Resolution Approving the City’s Annual Statement of Investment Policy 2024- 2025; Receive and File Annual Statement of Investment Policy 2024-2025
RECOMMENDED ACTION
1. Adopt a Resolution approving the City’s 2024-2025 Investment Policy.
RESOLUTION NO. 2024-XXX entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING THE CITY’S STATEMENT OF
INVESTMENT POLICY
2. Receive and file the Annual Statement of Investment Policy 2024-2025.
GOVERNMENT CODE §84308 APPLIES: No
DISCUSSION
In accordance with State law, the Finance and Management Services Agency annually submits a resolution approving the City’s Investment Policy (Exhibit 1) and the Annual Statement of Investment (Exhibit 2).
The investment policy outlines the following primary goals:
•To assure compliance with all Federal, State, and local laws governing the investment of monies;
•To provide for the safety of principal;
•To provide for the maintenance of sufficient liquidity; and •To provide an investment return within the parameters of the Statement of Investment Policy and Investment Portfolio guidelines.
The investment policy applies to all financial assets of the City with the exception of individual employee retirement contribution funds and deferred compensation, which are specifically excluded. Bond Proceeds are restricted and are invested in compliance with this investment policy following the specific requirements of their applicable bond resolutions. Finance investment staff continuously evaluates the City’s policy with
Annual Statement of Investment Policy
June 18, 2024
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regards to industry standards and best practices to determine if any newly adopted state rules or regulations are required to be incorporated within the document or if any industry enhancements are recommended. The current investment policy was previously submitted to the California Municipal Treasurers Association (CMTA) for review and to receive re-certification. CMTA re-certification was received May 31, 2022.
The submission for re-certification should be considered only every 3 – 5 years.
The recommended changes this year are related to the May 7, 2024 approval of the Investment Manager and Portfolio Services agreement. The proposed changes have been limited and generally of a non-substantial nature, and will enable the implementation of these investment services. These changes, which are listed below, have been incorporated into the recommended City of Santa Ana Investment Policy Statement for 2024-25.
These changes continue to reflect updated certification organization requirements mirroring the policy consensus of the APTUS&C and CMTA. The changes include, but are not limited to the following updates:
•Updated Section 5 - The Executive Director may engage the services of external investment management advisors to assist in the management of the City’s investment portfolio in a manner consistent with the City’s objectives •Updated Section 7 – Updated language on Authorized Brokers Staff recommends that City Council adopt a Resolution approving the City’s 2024-25 Investment Policy.
ENVIRONMENTAL IMPACT
There is no environmental impact associated with this action.
FISCAL IMPACT
There is no fiscal impact associated with this action.
EXHIBIT(S)
1. Resolution
2. Annual Statement of Investment Policy
Submitted By: Kathryn Downs, Finance and Management Services Agency Executive Director
Approved By: Alvaro Nuñez, Acting City Manager