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Staff Report
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Subject: | Resolution of the City Council of the City of Rocklin Delegating Investment Authority to the City Treasurer and Adopting Legislative Policy No. 1 – Investment Policy |
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| Date: | June 25, 2019 |
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| Submitted By: | Kimberly Sarkovich, Assistant City Manager, Chief Financial Officer and City Treasurer
Mary Rister, Finance Manager
Ted Williams, Financial Analyst |
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| Department: | Administrative Services - Finance |
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| | | | | | | | Staff Recommendation: | Adopt a Resolution of the City Council of the City of Rocklin Delegating Investment Authority to the City Treasurer and Adopting Legislative Policy No. 1 – Investment Policy |
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| | | | | | | | BACKGROUND: | The City of Rocklin Legislative Policy No. l – Investment Policy, Section Xll, requires the Investment Committee to annually review the City’s investment policy to ensure its consistency with the overall objectives of preservation of principal, liquidity and return, and relevance to current law, financial and economic trends, and to meet the needs of the City of Rocklin.
California Government Code 53607 permits the City Council to delegate its authority to invest and reinvest City funds to the City Treasurer for up to one year.
Section Xll of Legislative Policy No. l - Investment Policy requires the City Council to annually adopt by resolution the City’s Investment Policy.
This year the Investment Policy has been updated with a minor change to reflect a change in state law. Specifically, any investments in asset-backed securities, such as mortgage backed securities, are required to have a maximum remaining maturity of five years or less. Further, the issuer of such a security is not required to be rated "A" or better, although the security itself must still have a rating of "AA" or better (section V. 1. (Q)) of the City of Rocklin Investment Policy.
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| | | | | | | | This Staff Report has been reviewed by the City Attorney for legal sufficiency and by the City Manager for content. |
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