TO:Andrew P. Powers, City Manager
FROM:Jaime Boscarino, Finance Director
DATE:January 14, 2025
SUBJECT: Annual Appointment of City Treasurer and Adoption of Investment Policy
RECOMMENDATION:
1. Adopt resolution reconfirming Jaime Boscarino as City Treasurer until January 31, 2026, and approving City’s Investment Policy.
2. Find that this action is not a project as defined under the California Environmental Quality Act.
LEVINE ACT ITEM: No
FINANCIAL IMPACT:
No Additional Funding Requested. Minimal staff time to complete staff report, resolution, and Investment Policy is included in the Adopted FY 2024-25 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 16, 2024.
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 14, 2025
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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(s) in the Policy. The current Policy was adopted by City Council on January 16, 2024.
DISCUSSION/ANALYSIS:
The City does not have an elected Treasurer as is common in a general law city.
City Council has historically appointed the Finance Director as the Treasurer. The Finance Director performs the duties and responsibilities of the Treasurer, including the investment of City funds and oversight of banking services.
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.
There are no changes to State law affecting the City’s Policy or investment practices this year. While Assembly Bill (AB) 2618 amended California Government Code Section 53601.8 pertaining to the use of private sector placement entities (Placement Entities) such as Certificate of Deposit Account Registry Service (CDARS), Placement Entities are not an approved investment option in the City’s Policy.
With a Placement Entity, funds are deposited at a member institution and the deposit is automatically divided into smaller amounts under the Federal Deposit Insurance Corporation (FDIC) insurance limit. The smaller amounts are then placed into deposit accounts at other network banks, allowing the depositor to benefit from the FDIC insurance coverage across multiple institutions while working directly with a single bank.
Rather than use Placement Entities, the City uses FDIC-insured negotiable certificates of deposit or the State of California’s Local Agency Security Program which requires financial institutions collateralize all local agency deposits in excess of the FDIC insurance.
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 its August 1, 2024, and November 7, 2024, meetings. The Committee recommended no changes to the Policy (Attachment #1) this year.
Staff recommends City Council adopt the resolution (Attachment #2) reconfirming Jaime Boscarino as City Treasurer and approving the Policy.
Annual Appointment of City Treasurer and Adoption of Investment Policy January 14, 2025
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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: Ryan LaSalle, 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\2025\Administration\011425 Treasurer Inv Policy Staff Report.docx