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Finance and Management Services <br />www.santa-ana.org/finance <br />Item # 32 <br />City of Santa Ana <br />20 Civic Center Plaza, Santa Ana, CA 92701 <br />Staff Report <br />July 18, 2023 <br />TOPIC: Adoption of the Resolution Authorizing the Investment of Monies into California <br />Class Prime Fund <br />AGENDA TITLE: <br />Adopt a Resolution Authorizing the Investment of Monies in the California CLASS Prime <br />Fund <br />RECOMMENDED ACTION <br />Adopt a Resolution Authorizing the Investment of Monies in the California CLASS Prime <br />Fund. <br />DISCUSSION <br />The investment policy adopted on July 6, 2023 added California Cooperative Liquid <br />Assets Security System (California CLASS) as an allowable investment instrument. The <br />approval of this Resolution would be the final requirement to start investing of City of <br />Santa Ana monies in the California CLASS Prime Fund. The California CLASS, <br />sponsored by Cal Cities and the California Special Districts Association, is a local <br />government investment pool. The investment program is a Joint Powers Authority (JPA) <br />created pursuant to the California Joint Exercise of Powers Act and is governed by a <br />Board of Trustees comprised of special district and city finance professionals. <br />The Prime Fund is managed by the California CLASS in compliance with the <br />requirements of California law, specifically California Government Code Section <br />53601(p). The investment objectives of the Prime Fund are to preserve principal, <br />provide daily liquidity, earn a competitive rate of return, and maintain a stable Net Asset <br />Value. The Prime Fund accrues net income daily and pays net income a pro rata basis <br />monthly. <br />Currently, the City participates in one other investment pool, the Local Agency <br />Investment Fund (LAIF). While California CLASS operates in a similar manner, the <br />short-term securities portfolio offers the opportunity to optimize interest earnings, while <br />not sacrificing safety or liquidity of the funds. The investment committee staff conducted <br />a thorough investigation of the proposed pool to ensure it meets the requirements of <br />City's Investment Policy. To expand diversification of the City's investments, staff <br />