55D - RESO - INVESTMENT POLICY - Laserfiche WebLink

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REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JULY 5, 2017 TITLE: ADOPT A RESOLUTION APPROVING THE CITY'S INVESTMENT POLICY WITH MINOR MODIFICATIONS (STRATEGIC PLAN NO. 4, 1) 1 /a CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 16' Reading ❑ Ordinance on 2 n Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Adopt a Resolution approving the City's Investment Policy, which includes the following minor modifications: A. Sets out requirement to establish written investment procedures in accordance with current industry standards. B. Allows the City to sell a security for the purpose of pre -paying a debt or contribution servicing obligation when it is financially advantageous (for the City) to do so. C. Amends existing language to comply with current statutory changes, changes in industry terminology, and recommended best practices. DISCUSSION In accordance with state law the Finance and Management Services Agency (FMSA) has annually submitted the City's Investment Policy (Policy) to the City Council. AB 2853 amended Section 53646 of the Government Code making the requirement to render a Statement of Investment Policy to the City Council permissive rather than mandatory. However, FMSA believes it to be both prudent and in keeping with the spirit of the City's Sunshine Policy that such documents continue to be regularly provided. The Executive Director of FMSA, as chief fiscal officer and ex officio City Treasurer, continues to render to the City Council an annual Statement of Investment Policy for approval and adoption by City Council resolution (Exhibit 1). The Statement of Investment Policy outlines the City's investment guidelines, rules, and practices. The primary goals of the City's investment policy are: 1) To assure compliance with all Federal, State, and local laws governing investment of monies. 55D-1