REPORT TO THE CITY COUNCIL
June 21, 2018
FROM: MICHAEL A. LIMA, Controller/Finance Director/(ex-officio)Treasurer
Finance Department
BY: CORRINA BARBARITE, Treasury Officer
Finance Department
SUBJECT
Title
***RESOLUTION - Approve the City of Fresno (the "City") Investment Policy for Fiscal Year 2017-2018 (Subject to Mayoral Veto)
Body
RECOMMENDATION
Staff recommends that Council approve the accompanying Resolution to adopt the City Investment Policy (the "Policy") for Fiscal Year 2018-2019.
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 from the FY 2017-2018 Investment Policy: Section VI A (Standard Monthly Reports) has been updated to reflect the new content and formatting of the Monthly Investment Reports.
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 agency having monies in a sinking fund or monies in its treasury not required for the immediate needs of the local agency ...
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