Loading...
HomeMy WebLinkAbout09-04-2014 c4 authorizing investment of monies in the local agencey investment fundcounci l j acE►,aa REpourt• Meeting Dat e 09-04-201 2 Item NumberC4 CITY OF SAN LUIS OBISP O FROM :Charles Bourbeau, Director of Finance and Information Technology Prepared By :Jennifer Thompson, Revenue Superviso r SUBJECT :AUTHORIZING INVESTMENT OF MONIES IN THE LOCAL AGENC Y INVESTMENT FUN D RECOMMENDATIO N Adopt a resolution authorizing the City of San Luis Obispo to deposit and withdraw money to and from the Local Agency Investment Fund (LAIF) in the State Treasury . DISCUSSIO N The Local Agency Investment Fund (LAIF) began in 1977 as an investment alternative fo r California's local governments and special districts and it continues today under the Stat e Treasurer's Office . The enabling legislation for the LAIF is Section 16429 .1 et seq. of th e California Government Code . This program offers local agencies the opportunity to participate in a major portfolio, which invest s hundreds of millions of dollars, using the investment expertise of the State Treasurer's Offic e investment staff at no additional cost to the taxpayer . This in-house management team is comprise d of civil servants who have each worked for the State Treasurer's Office for an average of 20 years . The use of LAIF allows the City to achieve a higher rate of return on temporarily high cas h balances than the City could on its own while maintaining a high degree of liquidity .Funds in LAIF can be withdrawn in one day . In 1977, Resolution 3305 was adopted by the City Council authorizing City participation in LAIF . Resolution 3305 authorizes the deposit of surplus cash balances in LAIF and agrees to deposit or withdraw money in the Fund for the purpose of investment in accordance with the provisions fo r Section 16429 .1 of the Government Code . This resolution also designates by name the City Treasurer and the Finance Director at that time to deposit and withdraw money in LAIF . Although neither of these employees has worked for the City in many years, LAIF continued to allow the Cit y to deposit and withdraw and change authorized signers by letter without informing the City of th e need for an updated resolution . As the result of a recent audit of its practices, LAIF is no w requiring that participant agencies have current resolutions . It is,therefore, necessary to update the resolution in order to give current staff the ability to mak e changes to the authorized signers and to maintain the City's current relationship with LAIF . The updated resolution authorizes the Director of Finance and Information Technology, Financ e Manager, City Manager, Assistant City Manager, Revenue Supervisor and Accounting Superviso r and their successors to deposit and withdraw monies in LAIF . All of these positions, except the Accounting Supervisor, are currently authorized LAIF signers . Adding the Accounting Supervisor will give staff greater flexibility to make LAIF transactions during vacations and flex days . C4-1 Authorizing Investment of Monies in LAIF Page 2 •Designating authorized signers by position rather than name will make changes, when staff changes , easier in the future . FISCAL IMPAC T Updating the resolution that authorizes staff to invest in LAIF will have no fiscal impact . ALTERNATIVE S The City could choose not to update the LAIF resolution . This is not recommended as it would not allow the City to continue investing with LAIF . ATTACHMENT S 1.Current Resolution . 2.Resolution Authorizing Investment of Monies in LAIF . t:\c ,ui ■.ldgeu,i lu.w~..l~,~..lt-ua-~lbull ~unze tn .otl .)\ww wil oy~i,u C4-2 Attachment 1 RESOLUTION NO .3305 (1977 Series ) • A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO AUTHORIZING PARTICIPATIO N IN THE LOCAL AGENCY INVESTMENT` FUND IN THE STATE TREASURY OF THE STATE OF CALIFORNIA . BE IT RESOLVED by the Council of the City of San Luis Obispo as follows : 1.That the City authorizes the deposit of surplus cash balances in the Local Agenc y Investment Fund and agrees to deposit or withdraw money in the Fund in accordanc e with the Provisions of Section 16429 .1 of the Government Code for the purpose of invest - ment as stated therein . 2.That the following City Officials are authorized by this resolution to order ; the deposit or withdrawal of money in the Local Agency Investment Fund . J . H . Fitzpatrick, City Treasure r R . C . Muravez, Finance Directo r On the Motion of Councilman Petterson ,seconded by Councilman Jorgense n and on the following roll call votes : AYES : Councilmen Dunin, Gurnee, Jorgensen, Petterson and Mayor Schwart z NOES : None • ABSENT : Non e the foregoing Resolution was passed and adopted this 19th day of .Apri l 1977 . ATTEST : 4 1 •iBy ..Allen Grimes ,a‘ Approved as to form : WENDT, MITCHELL, SIN HEIMER , de la MOTTE &LILL E City Attorney Approved as to content : R 3305 C4-3 Attachment 2 RESOLUTION NO. (2012 Series ) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISP O AUTHORIZING INVESTMENT OF MONIES IN THE LOCAL AGENC Y 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 ; and WHEREAS,the Council of the City of San Luis Obispo does hereby find that the deposi t 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 or thei r successors in office shall be authorized to order the deposit or withdrawal of monies in the 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 , seconded by and on the following vote : AYES : NOES : ABSENT : The foregoing resolution was adopted this day of_ 2012 . Mayor Jan Marx • C4-4 Resolution No . (200x Series ) Page 2 ATTEST : Maeve Kennedy-Grimes City Clerk APPROVED AS TO FORM : J .Christine Dietrick J . Christine Dietric k City Attorney C4-5 Page intentionally lef t blank .