SR-204-002
FINANCE:TREASURY:REB:F:\FINANCE\TREASURY\SHARE\INVPOL00
Council Meeting: February 8, 2000 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Recommendation to Revise City Investment Policy and Continue
Delegation of Investment Authority to City Revenue Manager/Treasurer
INTRODUCTION
This report recommends City Council approve a revised City Investment Policy and
extend the delegation of investment authority to the City Revenue Manager/Treasurer
from March 1, 2000 to February 28, 2001.
BACKGROUND
State law requires that the City adopt an investment policy and that the City Council
approve any material changes in the policy at an annual public meeting. Section 711
of the Santa Monica City Charter delegates to the Revenue Manager/Treasurer
authority for investing City funds. Section 53607 of the State of California Government
Code limits the authorization of the legislative body to delegate investment authority to
a one-year period, renewable annually.
The Council last approved the Investment Policy and continued delegation to the City
Revenue Manager/Treasurer on February 23, 1999. The City’s investment policy was
previously awarded the Municipal Treasurers Association of the United States and
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Canada Certification of Excellence Award and continues to adhere to these standards.
DISCUSSION
In conjunction with the annual renewal of investment authority, City staff proposes
revisions to the policy attachments. Shaded portions of the attachments indicate
proposed additions; strikeouts indicate proposed deletions. Specifically, staff proposes
the following changes:
1. Attachment B to Investment Policy:
The listing of City of Santa Monica financial assets specifically excluded from
coverage of the City Investment Policy has been updated to include the Earthquake
Recovery Redevelopment Project Area Tax Allocation Bonds, Series 1999 and the
Public Financing Authority Lease Revenue Bonds, Series 1999. Such assets are
excluded because their investment is governed by applicable bond documents
8. Attachment C to Investment Policy
Securities Lending Agreements have been added to the list of authorized
investments to reflect current State law. Investment constraints have been revised
to better reflect California State Code.
BUDGET/FINANCIAL IMPACT
There are no budget or financial impacts resulting from this staff report.
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RECOMMENDATION
Staff recommends that Council approve the attached Investment Policy, and continue
to delegate to the City Revenue Manager/Treasurer investment authority for the period
March 1, 2000 through February 28, 2001.
Prepared by: Mike Dennis, Director of Finance
Ralph Bursey, City Revenue Manager/Treasurer
Attachment: Revised City Investment Policy
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