AgdaPkt 2003-01-27 - Laserfiche WebLink

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-7c REPORT To the Honorable Mayor and City Council, To the Redevelopment Agency Board, To the Public Financing Authority, and To the Public Facilities and Infrastructure Authority From the City Manager January 27, 2003 Subject Updating the officers of the City of Redwood City, the Redevelopment Agency of Redwood City, the Public Financing Authority of Redwood City, and the Public Facilities and Infrastructure Authority of Redwood City to order the deposit or withdrawal of monies in investment accounts with the State of California Local Agency Investment Fund. Recommendation It is recommended that the City Council, the Redevelopment Agency, the Public Financing Authority, and the Public Facilities and Infrastructure governing commissions adopt resolutions updating the officers authorized to order the deposit or withdrawal of monies in the investment account with the State of California Local Agency Investment Fund. Background The State of California Local Agency Investment Fund (LAIF) is an investment fund operated by the State Treasurer for exclusive use by cities, counties, special districts, and other local agencies. As of September 2002, LAI F had over $44.6 billion of funds under its management. LAIF invests in a variety of taxable high quality securities and loans (U.S. treasuries, certificates of deposits, bankers' acceptances, commercial paper, corporate bonds, loans, and mortgages). The City and the Redevelopment Agency have made extensive use of investment accounts in LAIF for at least 20 years. LAIF currently limits public agencies to a maximum amount on deposit of $40 million per account with a limit of 15 transactions (deposits or withdrawals) per month. Because the resolutions for the City of Redwood City, the Redevelopment Agency, the Public Financing Authority, and the Public Facilities and Infrastructure governing commissions authorizing the deposit and withdrawal of monies from LAIF investment accounts were issued several years ago, LAIF is requesting the City to update the resolutions to assist in meeting their auditing requirements. Fiscal Impact Updating the officers authorized to order the deposit or withdrawal in the investment accounts with LAIF will continue to provide Finance staff with greater flexibility with which to manage the City's investments while maintaining the objectives set forth in the City's investment policy: safety of principal, liquidity, and interest earnings. Alternative Not adopting these resolutions will jeopardize the position of the agencies mentioned above to participate in LAIF, hence limiting liquid investment options.