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
Approve the City of Fresno (the "City") Investment Policy for Fiscal Year 2014-2015
1. ***RESOLUTION - Adopting an investment policy for public funds for fiscal year 2014-2015
Body
RECOMMENDATION
Staff recommends that Council approve the accompanying Resolution to adopt the City Investment Policy (the "Policy") for Fiscal Year 2014-2015
EXECUTIVE SUMMARY
There are no changes in the Investment Policy from last Fiscal Year. 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 funds" that are 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.
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. There have been no changes, either in the FMC or in State Law regarding municipal investments during the last Fiscal Year. Consequently, there are no changes in the Investment Policy from last Fiscal Year.
The California State Government Code 53601 s...
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