Placement: Resolutions
Action Requested: Motion / Vote
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Resolution 23-R08, Approve a Resolution to Revise City Council Directed Policy #2023-01 Investment Policy.
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Submitted By: Stephen Okiye, Finance Director, Finance Department
Strategic Plan Link: The City’s Mission to be financially responsible.
Executive Summary (General Business): Staff is proposing updates to the City Council Investment Policy to reflect a change in the competitive selection of investment instruments. Specifically, Section XII, Competitive Selection of Investment Instruments, added language for multiple bids, secondary market language, purchasing new issue securities with no competitive offerings and competitive solicitation language, Section XIII, Authorized Investment and Portfolio Composition, page 7, updated language to allow for circumstances where the maximum percentage per issuer and allocation limits might exceed listed percentages. Market fluctuations would not require liquidation or realignment of the portfolio, page 7-8, add “Asset- Backed Commercial Paper” to the portfolio and changed portfolio mix, on various pages - changed “date of purchase” to “settlement date”; and on page 15 added “Asset Backed Commercial Paper”. These changes will allow the City to maximize its portfolio options with our investment managers, while maintaining safety, liquidity and yield and staying within the guidelines of the investment policy.
Presentation Information: Stephen Okiye, Finance Director/City Treasurer; Karen Russell, Finance Investment Manager; and a representative from Public Trust will be available for questions.
Staff Recommendation: Move that the Council approve a resolution to revise City Council directed policy #2023-01 Investment Policy.
Alternate Recommendations:
1. Move that the Council amend the recommendation and approve a resolution to revise City Council directed policy #2023-01 Investment Policy.
2. Move that the Council provide staff direction.
Background: The Investment Policy is reviewed annually which enables staff to determine necessary changes in response to the investment market. This review has resulted in proposed amendments to the Competitive Selection of Investment Instruments and the Maximum Allocation and Individual Issuer Limit sections in the current policy. These changes will allow the City to continue to maintain safety, liquidity, and return.
Issues/Analysis: N/A
Financial Information: This revision will update Section XIII, Authorized Investment and Portfolio Composition. It will add “Asset Backed Commercial Paper” to our portfolio, and adjust the maximum allocation and Individual Issuer Limit for “State and/or Local Government Taxable and/or Tax Exempt Debt” from 3 years to 5 years and increase maximum allocation from 20% to 25%.
Special Consideration: N/A
Location of Project: N/A
Attachments:
1. Resolution 23-RXX - Draft
2. Exhibit “A” - Investment Policy #2023-01ccd Draft
3. Resolution 21-R29
4. Exhibit “B” - Investment Policy #21-01ccd
NOTE: All of the listed items in the “Attachment” section above are in the custody of the City Clerk. Any item(s) not provided in City Council packets are available upon request from the City Clerk.
Internal Reference Number: Legal Intake #9463.
Legal Sufficiency Review:
Reviewed by Sebastian Poprawski, Deputy City Attorney. Approved as to Legal form and sufficiency by James D. Stokes, City Attorney.