File #: 18-141    Version: 1 Name:
Type: Consent Item Status: Passed
File created: 3/12/2018 In control: City Council/Public Finance and Economic Development Authority/Parking Authority/Successor Agency to the Redevelopment Agency
On agenda: 4/2/2018 Final action: 4/2/2018
Title: SUBJECT: Approval of an Update to the City's Investment Policy REPORT IN BRIEF Considers approving an update to the City's Investment Policy. RECOMMENDATION City Council - Adopt a motion adopting Resolution 2018-22, a Resolution of the City Council of the City of Merced, California, adopting Investment Policy.
Attachments: 1. Investment Policy 2016, 2. Resolution 2018-22.pdf

Report Prepared by: Venus Rodriguez, Finance Officer

Title
SUBJECT: Approval of an Update to the City's Investment Policy

REPORT IN BRIEF
Considers approving an update to the City's Investment Policy.

RECOMMENDATION
City Council - Adopt a motion adopting Resolution 2018-22, a Resolution of the City Council of the City of Merced, California, adopting Investment Policy.

Body
ALTERNATIVES
1. Adopt as recommended by staff; or
2. Refer back to staff with specific direction.

AUTHORITY
California Government Code Section 53646, subdivision (a)(2)

CITY COUNCIL PRIORITIES
As provided for in the 2017-18 Adopted Budget

DISCUSSION
Current investment law states that the Finance Officer may annually render to the legislative body a statement of investment policy, which the legislative body shall consider at a public meeting. Any change in the policy shall be considered by the legislative body at a public meeting.

A good investment policy drives the cash, treasury, and investment management functions of an agency. It serves as a guide for setting and achieving program objectives, defines rules and establishes benchmarks, and reduces the exposures to liability of the investment staff and the governing board.

On March 5, 2018, the City Council approved a Professional Service Agreement with Chandler Asset Management for Investment Advisory Services. The scope of service included the extensive review of the City's investment policy to ensure it appropriately embodies the City's investment objectives, risk profile and expected outcomes as well as applicable laws and industry best practices.

The City of Merced met with Chandler Asset Management to discuss and review all proposed changes to the Investment Policy. The revised modifications encompass changes to the California Government Code, include the latest California best practices and enhance the clarity and readability of the policy. A brief summary of the changes is below:

Scope
? Inclusion of language s...

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