Item No. 1.
| MEETING DATE: 12/18/2023 |
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| TO: | HONORABLE MAYOR/CHAIR AND COUNCILMEMBERS/DIRECTORS |
| FROM: | JIM SADRO, CITY MANAGER/EXECUTIVE DIRECTOR By: Mel Shannon, Director of Finance |
| SUBJECT: | APPROVE AND ADOPT THE ANNUAL INVESTMENT POLICY FOR CALENDAR YEAR 2024
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RECOMMENDATION:
That the City Council, Successor Agency to the Redevelopment Agency of the City of La Habra, La Habra Civic Improvement Authority, City of La Habra Housing Authority, and La Habra Utility Authority review, approve and adopt the City's Annual Investment Policy for implementation beginning January 1, 2024.
DISCUSSION:
Each year, the City Council is presented with the City's Investment Policy for review and adoption. This review is generally conducted each December and the approved policy is implemented effective January 1st of the following year. The proposed Investment Policy is compliant with state law and is consistent with the City's currently adopted Investment Policy. On occasion, the state passes and adopts new laws that amend the California Government Code (CGC), including sections in the CGC pertaining to permitted investments made by local governments and entities.
After consultation with the City's external fund managers at Chandler Asset Management, staff proposes modifying three sections of the City's current Investment Policy to remain in compliance with changes in the state code, as follows:
After consultation with the City's external fund managers at Chandler Asset Management, staff proposes modifying three sections of the City's current Investment Policy to remain in compliance with changes in the state code, as follows:
1. Section 1.39 Permitted Investments: An investment's remaining term or remaining maturity is measured from trade settlement date to final maturity. The purchase of a security with a forward settlement date exceeding 45 days from the time of the investment is prohibited.
2. Section 1.73 Reports and Communications: Per Senate Bill 1489, the timeline for a City Treasurer to render a quarterly cash, investment, and transaction report to the City Manager (referred to as the Chief Executive Officer by state code, Section 53646, b) and the City Council has been reduced from 90 days to 45 days following the end of the quarter covered by the report.
3. Appendix A, item #16 Summary of Investment Types & Restrictions: Senate Bill 882 updated the language clarifying that pass-through securities backed by Treasuries (Section 2) or Federal Agencies (Section 5) will be exempt from the limitations otherwise imposed on those backed by private/corporate securities, so long as they meet the specified limitations.
If approved by Council, these recommended changes will ensure that the City's Investment Policy remains in compliance with state law.
FISCAL IMPACT/SOURCE OF FUNDING:
None
GENERAL PLAN RELEVANCE/CITY COUNCIL GOALS & OBJECTIVES:
General Plan Relevance--ED 9 Fiscal Strength-Stability
City Council Goals & Objectives--Management of Public Revenues and Fiscal Assets by closely monitoring assets, revenues, expenditures, and fiscal trends to ensure the City's long-term fiscal stability.
City Council Goals & Objectives--Management of Public Revenues and Fiscal Assets by closely monitoring assets, revenues, expenditures, and fiscal trends to ensure the City's long-term fiscal stability.