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HomeMy WebLinkAbout06-23-2015 C7 City Treasurer DutiesCity of San Luis Obispo, Council Agenda Report, Meeting Date, Item Number FROM: Wayne Padilla, Finance Director/City Treasurer SUBJECT: RESOLUTION EXTENDING THE DELEGATION OF INVESTMENT AUTHORITY TO THE CITY TREASURER THROUGH THE 2015-16 FISCAL YEAR RECOMMENDATION Approve a resolution extending the delegation of investment authority to the City Treasurer through the 2015-16 Fiscal Year. Background The City Council has previously appointed the Director of Finance & Information Technology to serve concurrently as the City Treasurer and has delegated responsibility for making investment decisions on behalf of the City to the City Treasurer. Each quarter the City Treasurer meets with the Investment Oversight Committee to review the performance of the investment portfolio to ensure that the investments are managed in accordance with the City’s investment policy. To date, there have been no instances of non- compliance reported to the Oversight Committee. A copy of each quarterly investment report is also provided to the City Council for review at the time that it is prepared. As staff reviewed the current Investment Management Plan to identify potential changes to the existing guidelines, it was noted that California Government Code Section 53607 states that the Council’s delegation of investment responsibility to the City Treasurer must be renewed on an annual basis. This report and the accompanying resolution are intended to provide the City Council with the opportunity to extend this delegation of responsibility through the end of the 2015-16 Fiscal Year. CONCURRENCES The City Attorney and City Administration concur with the recommendation to extend the delegation of responsibility. FISCAL IMPACT Delegating responsibility for making investment decisions to the City Treasurer does not create a fiscal impact, however the delegation of responsibility to the City Treasurer ensures that timely decisions will be made with regard to the City’s investment portfolio and taking into consideration the City’s operational needs to maintain adequate liquidity to support its ongoing operations. 6/23/2015 C7 C7 - 1 Delegation of Investment Authority to the City Treasurer Page 2 ALTERNATIVES 1. The delegation of responsibility could be made to another member of staff having adequate knowledge of the City’s investment needs and the requirements imposed by the California Government Code (CGC). 2. If the Council declined to delegate this responsibility, then it would become the responsibility of the full Council to make the investment decisions on behalf of the City as directed by Section 53607 of the CGC. ATTACHMENT Resolution extending the delegation of investment authority to the City Treasurer through the 2015-16 Fiscal Year C7 - 2 R _____ RESOLUTION NO. (2015 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO EXTENDING THE DELEGATION OF INVESTMENT AUTHORITY TO THE CITY TREASURER THROUGH THE 2015-16 FISCAL YEAR WHEREAS, it is the policy of the City of San Luis Obispo for the Director of Finance & Information Technology to concurrently hold the position of City Treasurer; and WHEREAS, the City Council has previously delegated the responsibility for making investment decisions to the City Treasurer in accordance with California Government Code Section 53607; and wishes to extend the period of time for an additional year; and WHEREAS, the City Council has reviewed the outcome of the City Treasurer’s investment decisions and now desires to extend the delegation of investment authority to the 2015-16 Fiscal Year; NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. The above recitals are true and correct. SECTION 2. The City Council hereby extends the delegation of duties related making investments on behalf of the City to the City Treasurer for the 2015-16 Fiscal Year. SECTION 3. The City Clerk shall cause a certified copy of this Resolution confirming the delegation of investment authority to be forwarded to the City Treasurer. Upon motion of ___________________________, seconded by ___________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was passed and adopted this 2nd day of June 2015. Mayor Jan Marx ATTEST: ___________________________ Anthony Mejia City Clerk APPROVED: _____ J. Christine Dietrick City Attorney C7 - 3