City Investment Policy
Annually, Staff reviews the City's Investment Policy and makes changes for conformity with the State of California's Government Code. Additionally, the City Council adopts the City’s Statement of Investment Policy for the fiscal year and delegates authority for the investment of City funds. The annual adoption of the investment policy and delegation of investment authority are required by Government Code §53607 and §53646, respectively. These requirements are also part of the City’s Investment Policy.
The following revisions have been made to the City’s Investment Policy for the 2017-18 fiscal year (see Exhibit A):
Public Agency Post-Employment Benefits Trust
- Section XIII, AUTHORIZED INVESTMENTS, Sections (h), (l) and (p),
- Modify wording throughout this section where long-term rating minimums are included to specify that they must be in a rating category of “A” or higher; to provide clarification and consistency with Government Code §53601.
- Section GLOSSARY OF INVESTMENT TERMS
- Add a Glossary of Investment Terms (Attachment "C" to Exhibit A) to define terms, abbreviations and language related to the investment of City funds.
On September 13, 2016, the City Council approved the adoption of the Public Agency Retirement Services (PARS) program to address net position unfunded liabilities through a City-controlled Trust and authorized an initial contribution of $5,000,000. This program provides an alternative to sending funds to the San Bernardino County Employees’ Retirement Association (SBCERA). Annually, the City Council must adopt the Investment Guidelines for the PARS invested funds (see Exhibit B, PARS Investment Guidelines). Additionally, the City Council must annually delegate its investment authority for the Post-employment Benefits Trust program to its appointed City Treasurer by ordinance or resolution pursuant to Government Code §53607.
It is recommended for the 2017-18 fiscal year, that the City Council adopt the amended Investment Policy and the Investment Guidelines. Additionally, it is recommended to continue to delegate investment authority to the City’s Finance Director/City Treasurer. This annual adoption and delegation does not preclude the City Council from revising the investment policy, the Trust investment guidelines, or changing the investment authority delegation during the fiscal year.