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File #: 19-496    Version: 1 Name:
Type: Consent Item Status: Passed
File created: 8/20/2019 In control: City Council/Public Finance and Economic Development Authority/Parking Authority
On agenda: 9/16/2019 Final action: 9/16/2019
Title: SUBJECT: Adoption of Resolution Approving an Update to the City's Investment Policy Which Includes Modifications Related to Authorized and Suitable Investments and Prohibited Investment Vehicles and Practices REPORT IN BRIEF Considers approving an update to the City's Investment Policy. RECOMMENDATION City Council - Adopt a motion adopting Resolution 2019-58, a Resolution of the City Council of the City of Merced, California, adopting Investment Policy.
Attachments: 1. Current Investment Policy-redlined, 2. Resolution with Investment Policy 2019-XX

Report Prepared by: Venus Rodriguez, Finance Officer

Title
SUBJECT: Adoption of Resolution Approving an Update to the City's Investment Policy Which Includes Modifications Related to Authorized and Suitable Investments and Prohibited Investment Vehicles and Practices

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

RECOMMENDATION
City Council - Adopt a motion adopting Resolution 2019-58, 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 2019-20 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.

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 April 2, 2018, the City Council approved major revisions to the City's Investment Policy based on what is allowed by California Government Code, California best practices and to ensure it appropriately embodies the City's investment objectives, risk profile and expected outcomes.

Due to some changes in California Government Code, as well as updates with latest California best practices, staff is recommending minor changes to the Investment Policy. The redlined version is attached. A brief summary of the changes is below.



Authorized and Suitable Investments

? Section O. includes some deletions and additions:

o AB1770 became effective January 1, 2019, it made language specifying the credit r...

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