REPORT TO COUNCIL
SUBJECT
Title
Approval of the Annual Investment Policy for the City of Santa Clara, its Agencies and Corporations
Report
BACKGROUND
Section 904 of the City Charter states that the Director of Finance is required to "have custody of all investments and invested funds of the City government, or in possession of such government in a fiduciary capacity and have the safe-keeping of all bonds and notes of the City and the receipt and delivery of City bonds and notes for transfer, registration or exchange." In accordance with Government Code ?53646, the City Council adopted an investment policy ("Investment Policy"), and the Director of Finance brings that policy to City Council on an annual basis, particularly highlighting any changes to the policy for consideration and approval by the City Council. In addition, the Investment Policy itself (Section S) requires annual approval by the City Council.
Council Policy 017 (Investment Policy: Annual Statement) provides the framework and guidance for managing investment portfolio of the City of Santa Clara, its agencies and corporations (collectively referred to as "City"). The Investment Policy expands on this Council Policy by providing further guidance and processes.
The Investment Policy is a written document that governs the selection of investments and provides staff with guidance for consistent, informed investment decision making, which applies to all investable assets of the City of Santa Clara, its subsidiaries, the Successor Agency for the Redevelopment Agency of the City of Santa Clara, the Sports and Open Space Authority, the Stadium Authority, and the Housing Authority, except if otherwise specified. As required by Government Code ?53600.5, the Investment Policy also makes clear its investment objectives, which are, in order of priority, 1) safety of principal, 2) liquidity, and 3) return on investment. The Investment Policy is reviewed and updated annually in order to promote prudent i...
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