BOARD MEETING DATE: March 17, 2000 AGENDA NO. 31
Approve AQMD Annual Investment Policy and Interim Delegation of Authority to Appointed Treasurer to Invest AQMD Funds
SYNOPSIS:
State law requires a local government entity annually to provide a statement of investment policy for consideration at a public meeting and to renew its delegation of authority to its treasurer to invest or to reinvest funds of the local agency.
COMMITTEE:
Investment Oversight, March 13, 2000, Recommended for Approval
RECOMMENDED ACTION:
Barry R. Wallerstein, D.Env.
Executive Officer
Background
Changes to the Government Code which took effect in 1996 require that a statement of investment policy be transmitted annually to the oversight committee and legislative body of a local agency for consideration at a public meeting. In addition, more recent changes to state law (Gov’t. Code Section 53607) now require that a local agency’s legislative body annually renew its delegation of authority to its Treasurer to invest or to reinvest funds of the local agency.
Board action on April 12, 1996 approved a recommendation to minimize AQMD investments in the Los Angeles County Pooled Surplus Investment Portfolio (PSIP), by directing staff to work with the Los Angeles County Treasurer (AQMD’s Treasurer) to make specific investments on behalf of the AQMD. This change in investment policy has required the development of an annual statement of investment policy specific for the AQMD. Sperry Capital, AQMD’s investment consultant, working with staff of the AQMD and the Los Angeles County Treasurer’s office, has developed the attached statement of investment policy. This policy sets forth the investment guidelines for the AQMD with the objective of ensuring that funds are prudently invested to preserve principal and provide necessary liquidity while earning a market average rate of return.
For the past 23 years the County of Los Angeles has provided treasury management services to the AQMD. These services are limited to the processing of payroll and accounts payable warrants and the investment of the AQMD’s cash balances. In April 1996 the Governing Board reviewed the treasury management options available to the AQMD and elected to continue with the services provided by Los Angeles County. In March 1999 the Governing Board approved Resolution 99-39 renewing its delegation of authority to the Treasurer of the County of Los Angeles.
However, the Investment Oversight Committee is currently reviewing various Treasurer options and will not likely conclude its review until after the March Governing Board Meeting. Staff, therefore, recommends continuing with Los Angeles County Treasurer’s Office until July 1, 2000 to allow completion of the review process. Staff will promptly report to the Board any recommendations and deliberations stemming from the Investment Oversight Committee’s current review of Management options. Finally, District Counsel has determined that there is no prohibition on changing Treasurer during the year subsequent to initial designation.
Resource Impacts
The cost associated with AQMD treasury management operations is included in the FY 1999-00 Budget.
1. AQMD Annual Investment Policy
2. Delegation of Authority Resolution
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