REPORT TO THE CITY COUNCIL
November 20, 2014
FROM: MICHAEL A. 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
Title
Authorize advances of money to the Joint Powers Financing Authority (the "JPFA") for investment with the Local Agency Investment Fund (the "LAIF") and accept a Demand Promissory Note from the JPFA evidencing those advances (Council action)
1. RESOLUTION - Authorizing advances to the Joint Powers Financing Authority for investment with the Local Agency Investment Fund, and approving a promissory note from the Fresno Joint Powers Financing authority (Council action)
Body
RECOMMENDATION
Staff recommends that Council adopt the attached Resolution authorizing advances of up to fifty million dollars ($50,000,000) to the JPFA for investment in the LAIF, and approve and accept a Demand Promissory Note from the JPFA.
EXECUTIVE SUMMARY
The State Treasurer's Office provides a safe and liquid investment alternative in LAIF. This is one of the approved investments contained within the City's Investment Policy. LAIF allows a California agency to invest a maximum of $50,000,000 in its account with LAIF. Both the City and the JPFA qualify as independent agencies, each authorized to have a separate account at LAIF. By lending $50,000,000 to the JPFA, and requiring the JPFA to pay its LAIF interest earnings to the City as interest on the loan, the City effectively doubles the amount it can invest in LAIF. Additionally, by utilizing an open-ended demand promissory note with no maturity date, the City places itself in a position to call the note and demand the return of its funds any time it wishes.
BACKGROUND
LAIF offers an investment option available to local public agencies that provides access to professional money management by the State Treasurer'...
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