REPORT TO COUNCIL
SUBJECT
Title
Action on a Resolution of the City Council of the City of Santa Clara Authorizing City Staff to Deposit and Withdraw City Funds in the State's Local Agency Investment Fund
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
The City of Santa Clara (City) has been a participant in the Local Agency Investment Fund (LAIF) since its inception in 1977. LAIF is a State investment pool administered by the Treasurer of the State of California in which cities and other local governmental entities may invest idle funds. By pooling the cash deposited by these local agencies, LAIF staff is able to invest through a diversified portfolio with savings on security purchase costs due to economies of scale. The pool invests in high quality securities to ensure the portfolio safety; however, the portfolio is managed so that any agency can withdraw up to all of its deposits on any given day, subject to certain restrictions. LAIF staff has managed to achieve exceptional yields over the life of the investment pool considering its emphasis on safety and liquidity.
California Government Code section 16429.3 protects the local governmental entities' funds from seizure, impoundment, loan or transfer by the State of California. If the State fails to adopt a budget, California Government Code section 16429.4 protects the rights of participating local agencies to withdraw funds upon demand. Such rights cannot be "altered, impaired or denied in any way," by any State official or State agency under this code section.
DISCUSSION
The City Council's authorizations with LAIF were last approved in 1977. An updated resolution is essential to update the authorized signer list for the account. The proposed resolution grants authority to the City's City Manager, City Auditor, Director of Finance, and Assistant Director of Finance, or their successors to initiate investment-related transactions with LAIF. These a...
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