Agenda Item Wording:
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Authorize Investment Authority - Approve Resolution Number 2025-44 adopting the City of Visalia’s annually updated Investment Policy and delegate authority to invest funds for the City to the Finance Director/Treasurer for fiscal year 2025-26.
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Prepared by: Jason Montgomery, Finance Manager jason.montgomery@visalia.gov, 713-4425. Renee Nagel, Director of Finance and Technology, renee.nagel@visalia.gov, 713-4375.
Department Recommendation: Staff recommends that Council approve and adopt the annually updated Investment Policy for fiscal year 2025-26 and continue to delegate authority of the investment program to the Finance Director/Treasurer, Renee Nagel.
Summary:
The City of Visalia’s Investment Policy and the Delegation of Authority to invest funds for the City must be adopted annually. The City’s Investment Policy insures the City is investing public funds in a manner which will provide the greatest security with the maximum investment return while meeting daily cash flow demands and conforming to all state and local statutes governing the investment of public funds. Staff is recommending that Council adopt the policy for fiscal year 2025-26 which has no changes from the prior year. The Investment Policy is attached.
Background Discussion:
Authority to manage the City’s investment program is derived from the City’s Charter. On November 21, 1983, Council delegated responsibility (Resolution 83-96) for the investment program to the Finance Director (Treasurer), who establishes written procedures for the operation of the investment program consistent with this investment policy. Procedures should include: safekeeping, repurchase agreements, wire transfer agreements, banking service contracts, and collateral/depository agreements. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Treasurer.
The Treasurer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. Annually, Council will review and adopt by resolution the Investment Policy, in which Council will delegate responsibility for the investment program to the Finance Director/Treasurer.
Authority To Invest Funds
According to California Government Code Section 53607, the authority to invest funds of a local agency may be delegated for a one year period or until the delegation of authority is revoked. As in past years, staff recommends assigning Finance Director/Treasurer, Renee Nagel, with City investment responsibility.
City Investment Policy
It is the policy of the City to invest public funds in a manner which will provide the greatest security with the maximum investment return while meeting daily cash flow demands and conforming to all state and local statutes governing the investment of public funds.
The City’s investments are diversified by the various maturities, call structures, and credit types which are allowed by the City’s Investment Policy and California Government Code Section 53600 et seq.
Annually, staff reviews the policy (as required) and proposes changes that reflect changes to the federal, state, and local investment statutes. This year there are no proposed changes to the Investment Policy.
Fiscal Impact: n/a
Prior Council Action: The City of Visalia Investment Policy and Delegation of Authority to invest funds for the City are adopted annually. Council last approved these items on June 17, 2024.
Other: n/a
Alternatives: n/a
Recommended Motion (and Alternative Motions if expected):
recommendation
Move to approve Resolution No. 2025-xx approving the Investment Policy and Delegating Authority to invest funds for the City to the Finance Director/Treasurer, Renee Nagel.
Environmental Assessment Status: n/a
CEQA Review: n/a
Deadline for Action: 6/16/2025
Attachments:
Attachment #1, City of Visalia Investment Policy Attachment #2, City of Visalia Resolution 2025-44 approving the Investment Policy and Delegating Authority to the Finance Director/Treasurer