REPORT TO THE CITY COUNCIL
June 23, 2015
FROM: MICHAEL LIMA, Controller/Finance Director/(ex-officio) Treasurer
Finance Department
BY: KAREN M. BRADLEY, Assistant Controller
Finance Department
GREGORY S. WILES, Treasury Officer
Finance Department
SUBJECT
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***Approve the City of Fresno Investment Policy for Fiscal Year 2015-2016
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RECOMMENDATION
Staff recommends that Council approve the accompanying Resolution to adopt the City Investment Policy (the "Policy") for Fiscal Year 2015-2016.
EXECUTIVE SUMMARY
The Fresno Municipal Code ("FMC") requires that Council annually approve and adopt an Investment Policy, and delegate its authority to invest City funds to the City Treasurer. State Law refers to "surplus money" that is not needed for current operations. Good cash management includes investing these funds, in accordance with an approved Investment Policy. Interest earnings on investments are allocated to all Funds based on the amount of cash the Fund has invested in the City-wide Pool. There is one change in the Investment Policy from last Fiscal Year. State Law now allows local agencies to invest in AA-rated issues of the International Bank for Reconstruction and Development ("IBRD"), the International Finance Corporation ("IFC"), and the Inter-American Development Bank ("IADB"). The Investment Policy has been amended to include these instruments as possible investments for the City's Portfolio.
BACKGROUND
Although State Law no longer requires it, good cash management necessitates a detailed plan for handling cash resources. The Fresno Municipal Code (the "FMC") therefore requires that Council annually adopt an investment policy for public funds. An investment policy establishes the objectives, guidelines, and types of investments for a government's public funds investment program. State Law does contain numerous other stipulations regarding the City's investment program. ...
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