TITLE
Recommendation to request that a City Council study session be held by the City Council not later than November 18, 2008 to review the 2008 Local Agency Investment Guidelines, the City's investment policy and portfolio.
DISCUSSION
California Local Agency Investment Guidelines
The California Debt and Investment Advisory Commission and the California State Treasurer have issued Local Agency Investment Guidelines to assist local government in safely and effectively investing public funds. These guidelines provide an update of all statutory changes that impact local agency investing, including the legal obligations of elected officials for oversight of investment policies.
These guidelines came as a result of the aftermath of the 1994 Orange County investment pool bankruptcy that prompted numerous reports, special hearings, and committees to assess what went wrong and suggest measures to avoid similar problems in the future.
The Local Agency Investment Guidelines (treasurer.ca.gov/cdiac/LAIG/guideline.pdf <http://www.treasurer.ca.gov/cdiac/LAIG/guideline.pdf>) were updated this year and provide essential information concerning the fiduciary responsibility of the City Council regarding investment policy and oversight.
In light of the current financial crisis and the announced loss of $20 million of the City's investment pool, it is critical that the City Council be provided with a review of these updated guidelines and their contents through a study session and an assessment of whether or not our investment policy, process and portfolio are in line.
TIMING CONSIDERATIONS
Request study session by November 18, 2008.
FISCAL IMPACT
NOne.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
Gerrie Schipske
Councilwoman, Fifth District