FOR THE COUNCIL MEETING OF DECEMBER 20, 2022
COUNCIL AGENDA REPORT
TO: City Council
FROM: City Manager
Prepared by: Director of Finance
SUBJECT: AUTHORIZING INVESTMENT OF MONIES IN THE LOCAL AGENCY
INVESTMENT FUND (LAIF) FOR THE CITY
RECOMMENDATION:
That the City Council adopt a Resolution authorizing the investment of City of Santa Maria monies in the Local Agency Investment Fund (LAIF) and assigning officers authorized to deposit or withdraw monies in the LAIF.
BACKGROUND:
The Local Agency Investment Fund (LAIF) is a voluntary investment alternative for California's local governments and special districts authorized by the California Government Code Section 16429.1. The LAIF is a pooled investment fund managed by the State Treasurer's Office with oversight by the Local Agency Investment Advisory Board. There is no minimum investment period, with a maximum of $75 million for any agency. The LAIF offers high liquidity because deposits can be converted to cash in 24 hours and interest is not lost. All interest is distributed to those agencies participating on a proportionate share. State law prohibits the LAIF from impounding any depositor's funds and prohibits the fund from declaring bankruptcy. State statutes define and authorize the permissible investments of the fund.
The California Government Code states that monies placed for deposit in LAIF are in trust in the custody of the State Treasurer and cannot be borrowed or be withheld from the City. Further, the right of the City to withdraw its deposited money from the LAIF upon demand may not be altered, impaired, or denied in any way by any State official or agency based upon the State's failure to adopt a budget by July 1st of each new fiscal year.
DISCUSSION:
The City currently has an investment account at LAIF. The Office of the State Treasurer requires the City to file a new Resolution authorizing the investment of monies into LAIF and to update the City of Santa Maria officers authorized to order the deposit or withdrawal of monies from these accounts. A new Resolution is required at this time to add and update the titles of the officers to include: Director of Finance, Assistant Director of Finance, Revenue Manager, and Accounting Manager.
Fiscal Considerations:
Providing updated resolutions will prevent delays in making transactions that occur from time to time, in order to meet the City's cash flow needs and be in compliance with the City's Investment Policy.
Impact to the Community:
None.
MARY HARVEY
Director of Finance
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF SANTA MARIA, CALIFORNIA, AUTHORIZING THE INVESTMENT
OF CITY OF SANTA MARIA MONIES IN THE LOCAL AGENCY INVESTMENT
FUND (LAIF) AND ASSIGNING OFFICERS AUTHORIZED TO DEPOSIT OR WITHDRAW MONIES IN THE LAIF.
WHEREAS, the LAIF is established in the State Treasury under Government Code section 16429.1 et seq. for the deposit of money of a local agency for purposes of investment by the State Treasurer; and
WHEREAS, the City Council of the City of Santa Maria hereby finds that the deposit and withdrawal of money in the LAIF, in accordance with Government Code section 16429.1 et seq., for the purpose of investment as provided therein is in the best interests of the City.
NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Santa Maria, California, as follows:
1. Authorizes the deposit and withdrawal of City of Santa Maria monies in the LAIF in the State Treasury, in accordance with the provisions of • Section 16429.1 of the Government Code, for the purpose of investment as stated therein, and verification by the State Treasurer's Office of all banking information provided in that regard; and
2. That the following City of Santa Maria officers, or their successors in office, shall be authorized to order the deposit or withdrawal of monies in the LAIF.
Mary Harvey
(NAME)
Jennifer Tomaszewski
(NAME)
Angie Hernandez
(NAME)
Director of Finance
(TITLE)
Assistant Director
of Finance
(TITLE)
(SIG' ATURE)
Revenue Manager ari/S4:4 lI e2vns nr,.Jr2re
(TITLE) (SIGNATURE)
Racel Cota Accounting Manager
(NAME)
(TITLE) (SIGNATURE)
3. The Chief Deputy City Clerk is hereby authorized to make minor changes herein to address clerical errors, so long as substantial conformance of the intent of this document is maintained. In doing so, the Chief Deputy City Clerk shall consult with the City Manager and City Attorney concerning any changes deemed necessary.
Mayor
ATTEST:
Chief Deputy City Clerk
APPROVED AS TO CONTENT:
ROVED AS TD RM:
City Attorney
Dep r�Tment Director
an
City ger