REPORT TO THE CITY COUNCIL
June 23, 2016
FROM: MICHAEL A. LIMA, Controller/Finance Director/(ex-officio)Treasurer
Finance Department
BY: GREGORY S. WILES, Treasury Officer
Finance Department
SUBJECT
Title
Approve the City of Fresno Investment Policy for Fiscal Year 2016-2017
Body
RECOMMENDATION
Staff recommends that Council approve the accompanying Resolution to adopt the City Investment Policy (the "Policy") for Fiscal Year 2016-2017.
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 a specific Fund has invested in the City-wide Pool. There is one change in the Investment Policy from last Fiscal Year. The State Treasurer's Office has raised the limit for the Local Agency Investment Fund (LAIF) to $65,000,000 per account. The Investment Policy has been amended to increase the limit for LAIF deposits. Also, the investing duties for an Accountant-Auditor II position in Treasury have been clarified.
BACKGROUND
Although State Law no longer requires it, good cash management necessitates a detailed plan for handling cash resources. 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 that pertain to the City's investment program.
Government Code Section 53601("Section 53601") sets forth certain parameters that govern a local agency's investment program. This Law states that "The legislative body of a local ag...
Click here for full text