TITLE
Recommendation to adopt the Statement of Investment Policy for Calendar Year 2024 pursuant to Section 53646(a) of the State of California Government Code. (Citywide)
DISCUSSION
In accordance with the State of California Government Code, Section 53646, et seq., the City Treasurer must present to the City Council an annual Statement of Investment Policy (Investment Policy). The Investment Policy for the City of Long Beach (City) is based on policies recommended by several professional organizations, including the California Municipal Treasurers’ Association and the Government Finance Officers Association.
The attached Investment Policy for Calendar Year 2024 (Policy) aligns with the California Government Code Section 53601, which governs investments by local agencies. The following key updates were included:
1. Removed reference to three separate pooled investment portfolios (short-term, intermediate and long-term) along with their respective benchmarks, as the City Treasurer will consolidate into one pooled investment portfolio to better manage funds according to the cashflow needs of the City, while continuing to maintain safety of principal as the topmost investment priority. Also updated is the definition of ‘Investment Pool’ in Appendix D to show just one pooled investment portfolio going forward.
2. Updated benchmark section and listed four examples of nationally recognized benchmarks, which closely reflect the characteristics of the investments in the Pool.
3. Updated Federal Agencies definition in Appendix D, adding Federal Agricultural Mortgage Corporation (Farmer Mac), as Farmer Mac is one of the most commonly traded agency securities, and is permissible under the California Local Agency Investment Guidelines.
The Investment Policy was reviewed and approved by the Investment Advisory Committee, composed of the Deputy City Auditor, Principal Deputy City Attorney, City Treasurer, City Controller, and designated representatives from the Harbor and Utilities Departments. The key updates are detailed in Attachment A.
This matter was reviewed by Principal Deputy City Attorney Richard F. Anthony on August 28, 2023 and by Revenue Management Officer Geraldine Alejo on September 12, 2023.
TIMING CONSIDERATIONS
The Government Code requires the City Council’s annual adoption of the City’s Investment Policy.
FISCAL IMPACT
This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. There is no fiscal or local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
KEVIN RIPER
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
THOMAS B. MODICA
CITY MANAGER