TO:Andrew P. Powers, City Manager
FROM:Jaime Boscarino, Finance Director
DATE:January 16, 2024
SUBJECT: Annual Appointment of City Treasurer and Adoption of Investment Policy
RECOMMENDATION:
1. Adopt resolution reconfirming Jaime Boscarino as City Treasurer until January 31, 2025, and updating City’s Investment Policy.
2. Find that this action is not a project as defined under the California Environmental Quality Act.
FINANCIAL IMPACT:
No Additional Funding Requested. Minimal staff time to complete staff report and resolution is included in the Adopted FY 2023-24 General Fund Budget.
BACKGROUND:
California Government Code (Code) Section 53607 states that City Council may annually delegate the authority to invest and reinvest City funds to the City Treasurer. City Council last made this delegation to Jaime Boscarino on January 10, 2023.
The City Treasurer’s investment activities are guided by the City’s Investment Policy (Policy). The City first adopted a policy in 1986. The primary investment objectives, in priority order, are safety, liquidity, and yield. The City invests public funds in a manner that will provide the highest investment return, with the maximum security, while meeting the daily cash flow demands of the City.
In addition to reviewing the Policy annually, the City periodically submits the Policy to professional organizations for certification. The Policy was last certified in 2021 by the California Municipal Treasurers Association (CMTA).
Annual Appointment of City Treasurer and Adoption of Investment Policy January 16, 2024
8 8
0 Section 53646(a)(2) of the Code recommends that the Policy be submitted to City Council at a public meeting on an annual basis. This section also requires that City Council approve any change in the Policy. The current Policy was adopted by City Council on January 10, 2023.
DISCUSSION/ANALYSIS:
Staff has undertaken a thorough internal review of the current Policy. The review included a comparison of the Policy to State law and to recommended model investment policies drafted by the Association of Public Treasurers and CMTA.
Senate Bill 882 (Bill), the Local Government Omnibus Act of 2023, was approved by the Governor on September 8, 2023. The Bill makes a single substantive change related to local agency investments, correcting a conflict between the categories of permissible investments.
Government Code Section 53601(f) permits the purchase of federal agency and government-sponsored enterprise (Agency) debt and other instruments. There is no limit to the amount a local agency can invest under 53601(f) and there is no minimum rating requirement. Section 53601(f) includes pass-through securities guaranteed by the issuing Agency.
Section 53601(o) allows investment in pass-through and asset-backed securities.
Securities authorized under Section (o) must be at least “AA” rated and must not exceed 20 percent of the portfolio. No distinction is made between pass-through securities authorized under Section (f) and those issued by a private corporation.
Senate Bill 882 amends Section 53601(o) to distinguish securities issued or guaranteed by an Agency from those issued by a private corporation. Section (o) now excludes pass-through securities authorized under Section (f) from the 20 percent limit and minimum rating requirement. The City does not invest in the pass- through securities and the Bill does not affect the City’s Policy or investment practices.
The Investment Review Committee (Committee) is tasked with reviewing the Policy and recommending additional changes unrelated to statutory mandates.
The Committee reviewed and discussed the Policy at the August 10, 2023, and November 2, 2023, meetings. The Committee only recommends minor formatting changes to the policy (Attachment #1) this year.
Staff recommends that City Council adopt the resolution (Attachment #2) reconfirming Jaime Boscarino as City Treasurer and updating the Investment Policy.
Annual Appointment of City Treasurer and Adoption of Investment Policy January 16, 2024
8 8
0 COUNCIL GOAL COMPLIANCE:
Meets the following City Council goal:
C. Operate City government in a fiscally and managerially responsible and prudent manner to ensure that the City of Thousand Oaks remains one of California's most desirable places to live, work, visit, recreate, and raise a family.
PREPARED BY: Jane Adelmann, Debt and Investment Analyst Attachments:
Attachment #1 – Redline Investment Policy
Attachment #2 – Resolution Reconfirming City Treasurer/Adopting Updated Investment Policy
FIN:350-10\ja\H:\COMMON\Council\2023\Adminstration\011624 Treasurer Inv Policy Staff Report.docx