HomeMy WebLinkAbout06-20-2017 Item 06 Resolution Extending the Delegation of Investment Authority to the City Treasurer Through the 2017-18 Fiscal Year Meeting Date: 6/20/2017
FROM: Xenia Bradford, Interim Director of Finance
Prepared By: Rico Pardo, Accounting Manager/Controller
SUBJECT: RESOLUTION EXTENDING THE DELEGATION OF INVESTMENT
AUTHORITY TO THE CITY TREASURER THROUGH THE 2017-18
FISCAL YEAR
RECOMMENDATION
Approve a resolution extending the delegation of investment authority to the City Treasurer
through the 2017-18 Fiscal Year.
Background
The City Council has previously appointed the Director of Finance 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 (IOC) 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 IOC. A copy of each quarterly investment report is also provided to
the City Council for review at the time that it is prepared. The City currently uses an outside
professional fund manager, Public Financial Management (PFM) to manage the City’s
investments. PFM was selected through a competitive process and manages investments for
public agencies throughout the United States.
Staff reviewed the current Investment Management Plan to identify potential changes to the
existing guidelines and none are being recommended., 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 2017-18 Fiscal Year.
ENVIRONMENTAL REVIEW
The requested is not a project as defined under the California Environmental Quality Act.
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CONCURRENCES
This recommendation is consistent with the City’s Investment Management Plan and California
Government Code Section 53607.
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.
ALTERNATIVES
1. The delegation of responsibility could be made to another member of staff having adequ ate
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. This is not recommended as investment decisions must be timely
made and must be consistent will all applicable policies and laws and investment decisions
should be based on the advice and counsel of professional fund managers who are informed
by complex analytical research and a current and through understanding of relevant financial
markets.
Attachments:
a - Delegation of Duties Resolution
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R _____
RESOLUTION NO. (2017 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, EXTENDING THE DELEGATION OF
INVESTMENT AUTHORITY TO THE CITY TREASURER THROUGH
THE 2017-18 FISCAL YEAR
WHEREAS, it is the policy of the City of San Luis Obispo for the Director of Finance 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
2017-18 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 2017-18 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 adopted this 20th day of June 2017.
____________________________________
Mayor Heidi Harmon
ATTEST:
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Resolution No. (2017 Series) Page 2
R _____
____________________________________
Carrie Gallagher
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, this 20th day of June 2017.
____________________________________
Carrie Gallagher
City Clerk
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