Consent-General Government # 22.
Board of Supervisors
Financial Services
- Meeting Date:
- 12/05/2023
- Brief Title
- Approve County Investment Policy for Calendar Year 2024
From:
Tom Haynes, Chief Financial Officer, Department of Financial Services
Staff Contact:
Sou Xiong, Treasury and Revenue Manager, Department of Financial Services, x8212
Supervisorial District Impact:
Countywide
Subject
Approve the 2024 Investment Policy for the County. (No general fund impact) (Haynes/Xiong)
Recommended Action
Approve the 2024 Investment Policy for the County.
Strategic Plan Goal(s)
 |
In Support of All Goals (Internal Departments Only) |
Reason for Recommended Action/Background
Government Code Section 53646 provides that the County Treasurer (part of the Chief Financial Officer responsibilities) may render to the Board of Supervisors and any oversight committee a statement of investment policy, which the Board shall review and approve at a public meeting. The attached policy (Attachment A) was distributed to and reviewed by the Financial Oversight Committee during the November 15, 2023 meeting. The policy is now being submitted to the Board for approval.
Proposed revisions to the Investment Policy are highlighted in Attachment B.
Staff recommends a change to the County's investment policy in response to Senate Bill 882, which was passed in September 2023 and goes into effective on January 1, 2024. The bill made several changes to code, including a change to Government Code Section 53601(o), the section that governs the investment of public funds. Previously, code section 53601(o) allows investment in assets-backed and mortgage-backed securities. Investments made under this code section are required to have a credit rating of "AA" or higher, have a maximum remaining maturity of five years or less, and must not exceed 20 percent of the County's investment portfolio. The change to the code includes new language that exempts securities issued by the U.S. Treasury, federal agencies, or United States government-sponsored enterprises from the credit and diversification requirements.
Proposed revisions to the Investment Policy are highlighted in Attachment B.
Staff recommends a change to the County's investment policy in response to Senate Bill 882, which was passed in September 2023 and goes into effective on January 1, 2024. The bill made several changes to code, including a change to Government Code Section 53601(o), the section that governs the investment of public funds. Previously, code section 53601(o) allows investment in assets-backed and mortgage-backed securities. Investments made under this code section are required to have a credit rating of "AA" or higher, have a maximum remaining maturity of five years or less, and must not exceed 20 percent of the County's investment portfolio. The change to the code includes new language that exempts securities issued by the U.S. Treasury, federal agencies, or United States government-sponsored enterprises from the credit and diversification requirements.
Collaborations (including Board advisory groups and external partner agencies)
The policy was reviewed by the Financial Oversight Committee during the November 15, 2023 meeting. The policy was also discussed and reviewed by the County's investment advisor, Public Financial Management (PFM).
Competitive Bid Process/Vendor Performance
Not Applicable.
Fiscal Impact
Fiscal Impact (Expenditure)
- Total cost of recommended action:
- $ 0
- Amount budgeted for expenditure:
- $ 0
- Additional expenditure authority needed:
- $ 0
- One-time commitment:
- Yes
Source of Funds for this Expenditure
- General Fund
- $0
Attachments
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Tom Haynes | Tom Haynes | 11/22/2023 09:03 AM |
| Financial Services | KauXue Thao | 11/22/2023 02:19 PM |
| Financial Services | KauXue Thao | 11/22/2023 02:20 PM |
| County Counsel | Hope Welton | 11/27/2023 08:04 AM |
- Form Started By:
- sxiong
- Started On:
- 10/03/2023 08:36 AM
- Final Approval Date:
- 11/28/2023