City Council
MEETING DATE: 4/25/2018
TITLE:
Title
Annual Approval of the City's Investment Policy
End
FROM:
Tami Scott, Administrative Services Director
RECOMMENDATION:
Recommendation
Staff recommends the City Council approve the updated investment policy.
Body
BACKGROUND:
Each year staff presents the investment policy to Council for review and approval. In 2004, we made a significant number of changes to our policy, mostly to comply with the requirements of State law. Those changes also expanded our investment options to align the city with various government, agency and highly-rated corporate investments. Since 2004, our primary investment strategy continues to be the safety of principal and the guideline to keep all investments made in accordance with the California Government Code. The last update to this policy was in 2015 when the investment maximum (limitation) was increased from $40 million to $50 million, and bond proceeds accounts no longer have deposit restrictions.
DISCUSSION:
In accordance with updates made to Government Code Section 16429.1 and Local Agency Investment Fund (LAIF) procedures, the City of Cathedral City's Investment Policy is updated on an annual basis. Currently, there are two updates proposed to the policy. The first is changing the Cathedral City Redevelopment Agency to Successor Agency under the "Purpose" header and second is increasing the insured deposits from $100,000 to $250,000 under the Federal Deposit Insurance Corporation "Glossary of Investment Terminology" header.
Our policy incorporates the key investment policy components of the League of California Cities, the California Society of Municipal Finance Officers, the California Municipal Treasurers Association, the Government Finance Officers Association and the Government Accounting Standards Board ("GASB") Statement No. 40. This policy positions the City of Cathedral City to continue to provide the conservative stewardship of our funds, while maximi...
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