Title
City of Sacramento Investment Policy and Delegation of Investment Authority to City Treasurer
End
FileID
File ID: 2024-01055
End
Location
Location: Citywide
End
Recommendation
Recommendation: Adopt a Resolution approving the investment policy governing the investments and management of City of Sacramento pooled funds and delegating authority to the City Treasurer to manage the investment of pooled and non-pooled funds.
End
Contact
Contact: Stacy Hussey, Chief Investment Officer, (916) 808-7746, shussey@cityofsacramento.org; John Colville, City Treasurer, (916) 808-8297, jcolville@cityofsacramento.org; Office of the City Treasurer
End
Presenter
Presenter: None.
End
Attachments
Attachments:
1-Description/Analysis
2-Background
3-Resolution
4-Exhibit A-City of Sacramento Investment Policy
End
Description/Analysis
IssueDetail
Issue Detail: The City Treasurer annually presents to the City Council for its consideration and approval the investment policies governing the investment of funds held in the City’s pooled treasury funds. The policies govern the City’s investment practices and are set forth in an Investment Policy document. The Investment Policy was last approved by the Council on January 23, 2024, by Resolution No.2024-0021. The proposed Investment Policy is attached as Exhibit A to the accompanying Resolution.
Section 73 of the Sacramento City Charter vests the City Treasurer with authority to deposit and invest funds of the City treasury, subject to the annual delegation of investment authority from the City Council to the City Treasurer pursuant to Government Code section 53607. In accordance with Government Code section 53607, the City Treasurer recommends that the City Council delegate to the City Treasurer the authority and responsibility of investing funds held in the City’s pooled treasury and non-pooled funds for the next twelve months in a manner consistent with the approved Investment Policy.
End
PolicyConsiderations
Policy Considerations: Sound investment practices are facilitated by the preparation of written governing policy statements. The proposed Investment Policy includes the primary objective of preserving the safety of principal which is followed by the objectives of meeting the liquidity needs of the City and obtaining a fair rate of return on investments. The proposed Investment Policy adopts the full range of authorized investments set forth in Government Code section 53601 and related provisions. The delegation of investment authority from the City Council to City Treasurer allows the City Treasurer’s Office to continue the prudent and efficient investment City funds and is consistent with the intent of the City Charter regarding the duties of the City Treasurer.
End
EconomicImpacts
Economic Impacts: None.
End
EnvironmentalConsiderations
Environmental Considerations: None.
End
Sustainability
Sustainability: None.
End
Commission/Committee Action
Commission/Committee Action: None.
End
RationaleforRecommendation
Rationale for Recommendation: The prudent management of the City’s treasury pools is enhanced by the adoption of an Investment Policy setting forth the parameters under which such funds are invested. The delegation of investment authority from the City Council to City Treasurer allows the City Treasurer’s Office to continue the prudent and efficient management and investment of City funds.
End
FinancialConsiderations
Financial Considerations: The Investment Policy sets forth the three primary objectives of the City’s investment of the pooled funds. In order of priority, the objectives are preservation of principal, meeting the liquidity needs of the City, and achieving a rate of return on investments commensurate with satisfaction of the other two objectives. Such prudent management of funds is critical in allowing the City to cover the expenditures in the operation of the City and its myriad of activities as set forth in the City’s approved budget and various Council actions. The delegation of investment authority from the City Council to City Treasurer allows the City Treasurer’s Office to continue to support the City’s cash flow needs in an effective and efficient manner.
End
LocalBusinessEnterprise
Local Business Enterprise (LBE): Not applicable.
End