DATE: January 26, 2021
TO: Mayor and City Council
FROM: Director of Finance
SUBJECT
Adopt a Resolution Accepting the Fiscal Year 2021 Statement of Investment Policy and Delegation of Authority
RECOMMENDATION
That the Council adopts a resolution (Attachment II) reaffirming the updated Fiscal Year 2021 Statement of Investment Policy and Delegation of Authority.
SUMMARY
There was a recent change to California Government Code 53601 (“Code”) that governs the investment of public funds. AB998 was chaptered on September 28, 2020 and took effect January 1, 2021. Staff recommends an update to the City’s Statement of Investment Policy (the Policy) as the additional language included is meant to provide clarification on management assets in commercial paper and investments in securities issued or backed by the U.S. government that could result in a zero or negative interest accrual if held to maturity. Additional language from the Code revision and general modifications are included in the “Summary of Proposed Changes” (Attachment III) and the redline version of the Policy (Attachment IV).
ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution
Attachment III Summary of Proposed Changes
Attachment IV FY 2021 Statement of Investment Policy