AGENDA REPORT
REQUEST FOR CITY COUNCIL ACTION
DATE: 8/1/2018
TO: Honorable Mayor and City Council Members
FROM: Administrative Services Department
SUBJECT:
Title
City Council consideration to adopt Resolution No. 2018-088 approving the City of Corona's Investment Policy
End
RECOMMENDED ACTION:
Recommended action
That the City Council adopt Resolution No. 2018-088 approving the City of Corona's Investment Policy.
Body
ANALYSIS:
The City of Corona, as with all local governments in California, maintains an investment portfolio to hold its inactive cash. The City's investments allow funds to earn a return while they are in the queue to be expended on City projects and services, pursuant to the City's adopted budget. The current balance of the City's investment portfolio is approximately $302 million. Through the City's contracted investment advisor, Chandler Asset Management, the City invests in a variety of instruments that provide a reliable yield over a duration of maturity between 3 months to 5 years to ensure that cash is available to meet the City's needs. Chandler Asset Management makes these investments according to the City's Investment Policy, with the oversight of the Treasury Committee, which is comprised of the City Manager, City Treasurer, and the Assistant City Manager/Administrative Services Director.
The City of Corona's Investment Policy is annually reviewed by the City Treasurer, the Administrative Services Department, and Chandler Asset Management, and adopted by the City Council pursuant to State law. The Investment Policy is a formal statement of objectives and constraints for the City's investment approach.
California Government Code 53600 et. seq. sets legal parameters around the degree of risk any municipal treasury can take in its investments. These parameters ensure that public investments are sufficiently diversified, of high credit quality, and have terms of length that enable the treasury to maintain liquidity an...
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