Print Back to Calendar Return
    24.    
City Council Regular
Meeting Date: 06/13/2017  
Submitted By: Elizabeth Carlock, Finance Manager

SUBJECT:
STATEMENT OF INVESTMENT POLICY, POST-EMPLOYMENT BENEFITS TRUST INVESTMENT GUIDELINES AND DELEGATION OF INVESTMENT AUTHORITY
RECOMMENDATION:
Adopt a resolution entitled:  A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHINO HILLS, AMENDING THE STATEMENT OF INVESTMENT POLICY, ADOPTING THE INVESTMENT POLICY GUIDELINES FOR THE CITY’S PUBLIC AGENCIES POST-EMPLOYMENT BENEFIT TRUST AND DELEGATING INVESTMENT AUTHORITY FOR THE CITY'S INVESTMENT PORTFOLIO FOR THE 2017-18 FISCAL YEAR.
 
BACKGROUND/ANALYSIS:

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):
  • 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.
Public Agency Post-Employment Benefits Trust
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.
ENVIRONMENTAL (CEQA) REVIEW:
This proposed action is exempt from review under the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq.; “CEQA”) and CEQA regulations (14 California Code Regulations §§15000, et seq.) because it does not involve any commitment to a specific project which could result in a potentially significant physical impact on the environment; and constitutes an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. Accordingly, this action does not constitute a “project” that requires environmental review (see specifically 14 CCR § 15378(b) (4-5)).
FISCAL IMPACT:
There is no fiscal impact caused by this agenda item.
 
REVIEWED BY OTHERS:
This agenda item has been reviewed by the City’s Investment Management Consultant, Chandler Asset Management, and the City Attorney. 
Attachments
Resolution and its corresponding Exhibits A and B

AgendaQuick©2005 - 2021 Destiny Software Inc., All Rights Reserved