REPORT TO COUNCIL
SUBJECT
Title
Action on the Investment Policy: Annual Statement and Annual Investment Policy Review and Approval
Report
BACKGROUND
Council Policy 017 Investment Policy: Annual Statement provides the framework and guidance for managing the City's investment portfolio. The City's Investment Policy expands on the Council Policy framework by providing further guidance and processes.
As part of the Annual Investment Policy (Investment Policy) review, staff reviewed Council Policy 017 Investment Policy: Annual Statement (Attachment 1). Although the City's Investment Policy had historically been updated and approved annually by Council, Council Policy 017 had not been updated for over 14 years, and reflected the City's Investment Policy dated January 2005.
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, City Council adopted an investment policy and the Director of Finance brings that policy to Council on an annual basis, particularly highlighting any changes to the policy, for consideration and approval by Council. In addition, the Investment Policy itself (Section P) requires annual approval by Council.
The Investment Policy is a written document that governs the selection of investments and provides staff with guidance for consistent, informed investment decision making. The policy is reviewed and updated regularly in order to encourage prudent investment decisions and to stay compliant with State and Federal laws.
DISCUSSION
Council Policy 017 Investment Policy: Annual Statement
Based on review of Council Policy 017, staff recommends to fully replace Council Poli...
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