HomeMy WebLinkAboutCC AG PKT 2004-07-12 #F 64, 4 5a 55
AGENDA REPORT
DATE: July 12, 2004
TO: Honorable Mayor and City Council
THRU: John B. Bahorski, City Manager
FROM: Pamela Arends -King, Director of Administrative Services/Treasurer
SUBJECT: 2004/2005 Investment Policy and Investment Guidelines
SUMMARY OF REQUEST:
Approve the 2004/2005 City of Seal Beach Investment Policy and Investment Guidelines
for investing public funds.
BACKGROUND:
The City of Seal Beach adopted a Budget and Fiscal Policy June 25, 2001 which
compliments' the annual Investment Policy that is adopted annually due to AB 1073,
which the State Assembly adopted in 1987. AB 1073 mandates that cities adopt an
Investment Policy Resolution outlining the type of investments into which a city may
place its idle funds. Additionally, as a result of the Orange County bankruptcy,
legislation in the form of Senate Bills 564 and 866 reinforces that a local agency treasurer
must file an annual investment policy with the governing body, and requires the treasurer
to file a quarterly report on investments. The City of Seal Beach has elected to prepare
Investment Reports on a monthly basis and will continue to do so. Senate Bill 566 says
that the treasurer investing public funds is a trustee and has a fiduciary responsibility to
the Prudent Man Rule which states "Investment shall be made with judgement and care,
under circumstances then prevailing, which persons of prudence, discretion, and
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intelligence exercise in the management of their own affairs, not for speculation, but for
investment, considering the probable safety of their capital as well as the probable
income to be derived." The Resolution for Council approval has been prepared in
accordance with Government Code Sections 53646(a) and 53600, 53600.5, 53601, and
53635 and guidelines published by the California Municipal Treasurer's Association.
The Resolution provides for safety and liquidity in maximizing the City's investment
portfolio.
Agenda Item F-
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' July 12, 2004
2004/2005 Investment Policy and Investment Guidelines
The City's investment policy was reviewed two years ago by Lance, Soil & Lunghard
LLP's (independent audit firm) to ensure the investment policy was in compliance with
State Government Code. The review noted the City was in compliance with State
Government Code. Also, the State requires the City to send a copy of the investment
policy and treasurer's report to the State's Debt and Investment Advisory Committee
after the investment policy is adopted by the Council. The City has not had any negative
feedback from the Debt and Investment Advisory Committee regarding the investment
policy.
RECOMMENDATION:
Approve a Resolution adopting the 2004 /2005 Investment Policy and Investment
Guidelines pursuant to Senate Bills 564 and 866.
a tw` i/ .__.'
Pamela Arends -King
Director of Administrative Services/Treasurer
NOTED 7D D APPROVED:
011/
Joh . B. Bahorski
9 if- Manager