HomeMy WebLinkAboutItem 5h. Re-authorize investments in the Local Agency Investment Fund (LAIF) and assign Authorized Officers Item 5h
Department: Finance
Cost Center: 2001
For Agenda of: 5/17/2022
Placement: Consent
Estimated Time: N/A
FROM: Brigitte Elke, Finance Director
SUBJECT: RE-AUTHORIZE INVESTMENTS IN THE STATE OF CALIFORNIA LOCAL
AGENCY INVESTMENT FUND (LAIF) AND ASSIGN AUTHORIZED
OFFICERS
RECOMMENDATION
Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis
Obispo, California, authorizing investment of monies in the Local Agency Investment
Fund and assigning Designated City Officers” for deposits to, and withdrawals from, the
fund.
DISCUSSION
Background
The Local Agency Investment Fund (LAIF) began in 1977 as an investment alternative
for California’s local governments and special districts and it continues today under the
State Treasurer’s Office. The enabling legislation for the LAIF is Section 16429.1 et seq.
of the California Government Code.
This program offers local agencies the opportunity to participate in a major portfolio, which
invests hundreds of millions of dollars, using the investm ent expertise of the State
Treasurer’s Office investment staff at no additional cost to the taxpayer. The use of LAIF
allows the City to achieve a higher rate of return on a temporarily high cash balance than
the City could earn through its banking services. At the same time, LAIF maintains a high
degree of liquidity since funds from LAIF can be deposited and withdrawn within 24 hours.
The City of San Luis Obispo has participated in LAIF since 1977. The participation
requires the governing body to adopt , by resolution, the designation of the fiscal officers
who are authorized to deposit and/or withdraw funds from LAIF (Attachment A).
The current Resolution No. 10393 (2012 Series) (Attachment B) was adopted by the City
Council in 2012. Several of the positions then authorized have since been eliminated and
an updated resolution is necessary. In order to fully benefit from LAIF’s investment yields,
it is imperative that money can be moved expeditiously (i.e. Safety, Liquidity, Yield,
Compliance) while maintaining organizational flexibility to utilize the short-notice liquidity
through the system. To do so, staff recommends that the following positions are
authorized to access LAIF and transact on the City’s behalf:
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Item 5h
Administration Finance
City Manager Director of Finance/City Treasurer
Assistant City Manager Accounting Manager/Controller
Senior Accountant
Revenue Analyst
The positions recommended were selected based on their involvement in the City
Treasury, investment postings, and revenue collection in addition to establishing the
needed redundancy for the organization to effectively manage its cash for maximum
return on investment.
Previous Council or Advisory Body Action
The City Council last updated the governing resolution for LAIF on September 4, 2012 –
Resolution No. 10393.
Policy Context
The City’s investment policy requires the City to invest its reserves and short -term cash
to maintain safety and liquidity while maximizing yield.
Public Engagement
This item will be review during a public session of the City Council and the public is invited
to comment prior to or during the meeting.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to the recommended
action in this report, because the action does not constitute a “Project” under CEQA
Guidelines Sec. 15378.
FISCAL IMPACT
Budgeted: n/a Budget Year: 2021-22
Funding Identified: n/a
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $ $ $ $
State
Federal
Fees
Other:
Total $ $ $ $
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Item 5h
Updating the resolution that authorizes staff to invest in LAIF will have a positive fiscal
impact as it utilizes LAIF’s attractive yields for the City’s short-term investments while
maintaining optimal liquidity and flexibility for day-to-day operations.
ALTERNATIVES
The City Council could choose not to update the LAIF resolution. This is not
recommended as only the City Manager and the Director of Finance will have access to
the system and permission to transact.
ATTACHMENTS
A - Draft Resolution adopting the authorized fiscal officers to transact with LAIF.
B - Resolution No. 10393 (2012 Series)
Page 1015 of 1284
Page 1016 of 1284
R ______
RESOLUTION NO. _______ (2022 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AUTHORIZING INVESTMENT OF MONIES IN
THE LOCAL AGENCY INVESTMENT FUND AND ASSIGNING
DESIGNATED CITY OFFICERS
WHEREAS, pursuant to Chapter 730 of the statues of 1976 Section 16429.1 was
added to the California Government Code to create a Local Agency Inve stment Fund in
the State Treasury for the deposit of money of a local agency for purposes of investment
by the State Treasurer; and
WHEREAS, the Council of the City of San Luis Obispo does hereby find that the
deposit and withdrawal of money in the Local Agency Investment Fund in accordance
with the provision of Section 16429.1 of the Government Code for the purpose of
investment as stated therein is in the best interest of the City of San Luis Obispo ; and
WHEREAS, the City has participated in the Local Agency Investment Fund since
1977 and has updated its resolution most recently in 2012.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Luis
Obispo that:
SECTION 1. The Council does hereby re-authorize the deposit and withdrawal of
City of San Luis Obispo monies in the Local Agency Investment Fund in the State
Treasury in accordance with the provisions of Section 16429.1 of the Government Code
for the purpose of investment as stated therein, and verification by the Stat e Treasurer’s
Office of all banking information provided in that regard.
SECTION 2. The following City of San Luis Obispo officers or their successors in
the office shall be authorized to order the deposit or withdrawal of monies in the Local
Agency Investment Fund:
Administration Finance
City Manager Director of Finance/City Treasurer
Assistant City Manager Accounting Manager/Controller
Senior Accountant
Revenue Analyst
Page 1017 of 1284
Resolution No. _____ (2022 Series) Page 2
R ______
SECTION 3. Resolution No. 10393 (2012 Series) is hereby rescinded and
replaced with this Resolution.
Upon motion of Council Member ____________, seconded by Council Member
______________, and on the following roll call vote:
AYES
NOES
ABSENT
The foregoing resolution was adopted by ______ day of _____________, 2022
___________________________
Mayor Erica A. Stewart
ATTEST:
__________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
__________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of San Luis Obispo, California, on ______________________.
___________________________
Teresa Purrington
City Clerk
Page 1018 of 1284
RESOLUTION NO . 10393 (2012 Series )
A RESOLUTION OF THE CITY OF SAN LUIS OBISPO AUTHORIZING
INVESTMENT OF MONIES IN THE LOCAL AGENCY INVESTMENT FUN D
WHEREAS,Pursuant to Chapter 730 of the statutes of 1976 Section 16429 .1 was added
to the California Government Code to create a Local Agency Investment Fund in the Stat e
Treasury for the deposit of money of a local agency for purposes of investment by the Stat e
Treasurer; an d
WHEREAS,the Council of the City of San Luis Obispo does hereby find that the deposit
and withdrawal of money in the Local Agency Investment Fund in accordance with th e
provisions of Section 16429 .1 of the Government Code for the purpose of investment as state d
therein is in the best interests of the City of San Luis Obispo .
NOW, THEREFORE, BE IT RESOLVED that the Council does hereby authorize th e
deposit and withdrawal of City of San Luis Obispo monies in the Local Agency Investment Fun d
in the State Treasury in accordance with the provisions of Section 16429 .1 of the Governmen t
Code for the purpose of investment as stated therein, and verification by the State Treasurer's
Office of all banking information provided in that regard .
BE IT FURTHER RESOLVED,that the following City of San Luis Obispo officers o r
their successors in office shall be authorized to order the deposit or withdrawal of monies in th e
Local Agency Investment Fund :
Katie Lichtig, City Manage r
Michael Codron, Assistant City Manage r
Charles Bourbeau, Director of Finance and Information Technolog y
Vacant, Finance Manage r
Jennifer Thompson, Revenue Superviso r
Sallie McAndrew, Accounting Superviso r
Upon motion of Council Member Smith, seconded by Council Member Carter, and on th e
following roll call vote :
AYES :Council Members Ashbaugh, Carter and Smith, Vice Mayor Carpenter an d
Mayor Marx
NOES :Non e
ABSENT : None
R 10393
ATTACHMENT B
Page 1019 of 1284
Resolution No . 10393 (2012 Series )
Page 2
The foregoing resolution was adopted this 4th day of September 2012 .
ATTEST :
Maeve K edy Gr'!e s
City Clerk
J .r pristine Dietric k
City Attorney
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