PREPARED BY: J. KELLY SESSIONS DATE OF MEETING: 06/05/17
SUBJECT:
TITLE
RESOLUTIONS OF THE CITY COUNCIL OF THE CITY OF SAN PABLO AND THE SAN PABLO LOCAL SUCCESSOR AGENCY BOARD ADOPTING AN INVESTMENT POLICY FOR FISCAL YEAR 2017/18
Label
CITY MANAGER RECOMMENDATION
Recommendation
Adopt Resolutions
BODY
COMPLIANCE STATEMENTS
Council Priority Workplan Compliance Statement:
General Fund Reserves Protection/Fund Balance (City Council, City Manager) and Develop/Update City Financial Policies (Finance) are policy items under the adopted FY 2015-17 City Council Priority Workplan, effective October 1, 2016.
CEQA Compliance Statement
This is not a project as defined by CEQA.
BACKGROUND
Government Code Section 53646 allows the Treasurer or Chief Financial Officer to render annually to the City Council and the Local Successor Agency (LSA) Board of Directors a statement of investment policy, and requires that any change in the policy be considered at a public meeting. The Investment Policy was last considered and approved by the City Council and LSA Directors on June 6, 2016 (Resolutions 2016-198 and LSA2016-004).
In compliance with this Government Code section and following the recommendations from Insight Investment (formerly known as Cutwater), the City's/LSA's investment advisor, Staff proposes approval of the FY 2017/18 Investment Policy including the following update:
* Remove the reference to having authority to invest only in securities and obligations authorized in the applicable California statutes, and replace it with the authority to invest only in United States Treasury securities, United States Agency securities and United States Instrumentality securities.
The reason for this change is that the Securities and Exchange Commission (SEC) increased restrictions for Money Market funds that claim to have a stable net asset value (NAV). In the last recession, some money market funds that had corporate exposure had the NAV's drop below one dollar per...
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