Laserfiche WebLink
THE CITY OF 16 <br /> '°` .....*'"11.111; <br /> ' 'r"" CITY COUNCIL AGENDA REPORT <br /> pLEASANTON <br /> June 16, 2020 <br /> Finance <br /> TITLE: ADOPT A RESOLUTION APPROVING THE INVESTMENT POLICY AND <br /> GUIDELINES OF THE CITY OF PLEASANTON <br /> SUMMARY <br /> Pursuant to California Government Code Section(s) 53601 and 53635, the City's <br /> investment policy must be submitted to Council annually for adoption. There are no <br /> significant changes to the current investment policy. This report satisfies the legal <br /> requirement that the City Council adopt an annual investment policy. <br /> RECOMMENDATION <br /> Staff recommends that Council adopt the attached resolution approving the Investment <br /> Policy and Guidelines. <br /> FINANCIAL STATEMENT <br /> There is no direct fiscal impact in approving the Investment Policy and Guidelines of the <br /> City of Pleasanton. <br /> BACKGROUND <br /> California Government Code Section 53646 provides for the City Council to adopt an <br /> annual investment policy. The proposed investment policy for FY2020/21 and the <br /> adopting resolution are attached. <br /> DISCUSSION <br /> Aside from being legally required, an investment policy is important because it provides <br /> the framework for a prudent investment program and helps fulfill the City's fiduciary <br /> responsibilities. Specifically, a formal investment policy is necessary to identify investment <br /> objectives, define risk tolerance, assign responsibility, and establish control over the <br /> investment process. Safekeeping of cash and investments is one of the most important <br /> responsibilities of the City Council, City Manager and the Director of Finance. A well- <br /> developed investment policy serves as a working document that directs the investment <br /> activities of the staff and protects the government from potential losses stemming from <br /> unsuitable investment practices. <br /> As allowed by California Government Code 53601 (q) and to diversify the City's <br /> investment portfolio, staff is proposing to add highly rated "Supranational Organizations' <br /> ' A supranational organization is an international group or union in which the power and influence of <br /> member states transcend national boundaries or interests to share in decision making and vote on <br />