Item No. 12
| MEETING DATE: December 7, 2020 |
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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 ADOPTION OF ANNUAL INVESTMENT POLICY FOR CALENDAR YEAR 2021 |
RECOMMENDATION:
That the City Council, Successor Agency to the Redevelopment of the City of La Habra, La Habra Civic Improvement Authority, City of La Habra Housing Authority, and La Habra Utility Authority review and adopt the City’s Annual Investment Policy for implementation on January 1, 2021.
DISCUSSION:
The City Council is presented with the City’s Investment Policy for review and adoption on an annual basis. This review process is generally conducted in December and the approved policy is implemented beginning January 1st of the following year.
The proposed Investment Policy (Attachment 1) is consistent with the currently adopted Investment Policy; however, staff proposes one modification offered after consultation with the City’s external fund managers at Chandler Asset Management. Staff recommends revising policy language in Section 1.3.4 to specify that, effective January 1, 2021, investment in any security not issued or backed by the US government that could result in a zero interest accrual if held to maturity be prohibited. This proposed change to the policy is permissible and consistent with California Government Code Section 53600, et seq., governing public investments.
The proposed Investment Policy (Attachment 1) is consistent with the currently adopted Investment Policy; however, staff proposes one modification offered after consultation with the City’s external fund managers at Chandler Asset Management. Staff recommends revising policy language in Section 1.3.4 to specify that, effective January 1, 2021, investment in any security not issued or backed by the US government that could result in a zero interest accrual if held to maturity be prohibited. This proposed change to the policy is permissible and consistent with California Government Code Section 53600, et seq., governing public investments.
FISCAL IMPACT/SOURCE OF FUNDING:
None
GENERAL PLAN RELEVANCE:
ED 9 Fiscal Strength-Stability