Agenda Section Consent
Agenda Item #
Report # 97-
Staff Report
Council Meeting Date:
REPORT PREPARED BY
: John Thornberry, Administrative Services DirectorDEPARTMENT:
Administrative ServicesSignature
REVIEWED BY CITY MANAGER
qSignature
ITEM FOR COUNCIL CONSIDERATION:
REVIEW OF QUARTERLY INVESTMENT RESULTS AND CERTIFICATIONS CONCERNING COMPLIANCE WITH INVESTMENT POLICY AND CASH FLOW NEEDS FOR THE NEXT SIX MONTHS
I. Background:
On October 12, 1995 Senate Bills 564 and 866 were signed into law effective January 1, 1996.
SB 564 repealed and rewrote California Government Code Section 53646 mandating cities and other local agencies to adopt a written investment policy. Further, this policy and any changes shall be considered at least annually by the Council at a public meeting. In addition it calls for quarterly reports concerning the City’s financial holdings, a statement of compliance with the policy and a statement concerning the City’s ability to meet its cash flow needs in the ensuing six months.
SB 866 added to CGC 53600 subsection 53600.3 the "prudent investor" standard, subsection 53600.5 mandating and prioritizing the three objectives of investing public funds (i.e. safety, liquidity and yield) and subsection 53600.6 declaring the deposit and investment practices of local agencies to be an issue of statewide concern.
I. Critical Issues:
III. Impact / Implications:
A. Policy:
B. Financial:
As of September 30, 1997 the City had the following investments:
Local Agency Investment Fund $3,419,844.37
Bank of Montecito General Checking 162,163.83
Total $ 3,582,008.20
During the quarter ending September 30, 1997 the City’s investment portfolio earned $51,726.24, an annualized return of approximately 5.68%
Attached for your review are statements from LAIF and Bank of Montecito as of September 30, 1997.
I certify that all portfolio investment transactions executed for the quarter ended September 30, 1997 have been made in full compliance with the Statement of Investment Policy adopted April 14, 1997 per Resolution No. 4370.
I further certify that the City of Carpinteria will meet all expenditure obligations which might reasonably be anticipated for the six month period ending March 31, 1998
C. Economic:
D. Legal:
This report has been prepared in compliance with California Government Code Section 53646.
IV. action options:
Receive and file the report
V. Attachments:
Montecito Bank & Trust bank statement
LAIF statement
VI. Principal parties expected at meeting:
Unknown
Recommendation:
Receive and file the report