City Council Agenda Report
Meeting Date: June 6, 2023
From: Scott Williams, Director of Finance
Department: Finance
Submitted by: Joaquin Leon, Deputy City Treasurer
Subject
Annual Statement of Investment Policy for Fiscal Year 2023-2024 Recommendation
Adopt Resolution No. 2023-12 approving an Annual Statement of Investment Policy for Fiscal Year 2023-24 and delegating investment authority to the Director of Finance/City Treasurer.
Background
The Annual Statement of Investment Policy (Investment Policy) sets forth the course of action necessary to guide the decision- making of the City Council, Director of Finance/City Treasurer, and those authorized to make investment decisions in the administration of the City’s investment portfolio. The existing Investment Policy is in compliance with the California Government Code and is a restatement of relevant sections applying to investment activities. The Investment Policy is designed to ensure that the administration of surplus funds is performed in accordance with the “prudent investor standard” pursuant to California Government Code Section 53600.3. As such, capital preservation is of paramount importance; therefore, the City does not engage in speculative activities.
Pursuant to California Government Code Section 53646(a)(2), the City Treasurer may annually render to the City Council an Annual Statement of Investment Policy which the City Council shall consider at a public meeting. Staff made one minor change to Section 10.2 – Quarterly Report of Investments, which changed the submittal requirement of the quarterly report from 30 days to 45 days following the end of the quarter covered by the report. This change was necessary in order to meet internal administrative deadlines for timely reporting. The proposed Investment Policy conforms with California Law and is to be adhered to and attested by the Independent Certified Public Accounting firm that performs the certified annual audit of the City's financial statements.
Fiscal Impact
There is no fiscal impact associated with this report.
Attachments
1. Resolution No. 2023-12
2. FY 2023-24 Investment Policy (redline)