Report to Mayor and City Council
Tuesday, January 24, 2017
Consent
SUBJECT:
Title
CONSIDER THE ANNUAL STATEMENT OF INVESTMENT POLICY- CITY OF CARSON, CARSON SUCCESSOR AGENCY AND CARSON HOUSING AUTHORITY
Body
I. SUMMARY
In accordance with the requirements of California Government code section 53600, The Statement of Investment Policy is being presented for the annual review and adoption by the City Council.
II. RECOMMENDATION
Recommendation
APPROVE and ADOPT the amended Statement of Investment Policy
Body
III. ALTERNATIVES
TAKE another action the Council deems appropriate.
IV. BACKGROUND
The Statement of Investment Policy establishes the prudent investment of funds and provides guidelines for suitable investments. This investment policy covers the investment of the following entities: City of Carson/Carson Housing Authority and Carson Successor Agency. It is the policy of the City of Carson/Housing Authority and Successor Agency to invest funds not required for immediate day-to-day operations in safe and liquid investments having a market-average rate of return (or better) while conforming to all state statues governing the investment of public funds. The ultimate goal is to enhance the economic status of the City, Housing Authority and Successor Agency while protecting its funds.
The investment policies and practices are based upon Federal, State, and local law and prudent money management. The following updates were made to the investment policy: 1. An increase in the percentage of reserve funds which can be invested under negotiable CDs. The current amount is 10% which shall be increased to 30% (government code maximum). This increase was made due to the rising interest rates in the negotiable CD market which will result in an increase in the rate of return on invested reserve funds. 2. A glossary of terms was added to aide in clarifying financial terms found in the Statement Of Investment Policy.
Under a separate agenda item the Council...
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