HomeMy WebLinkAbout10-Consideration of - a)Review of Investment Policy, b)Delegation of Authority to TreasurerAgenda 1
T U KEE D 11 N E
Public Utility District
ACTION
To:
Board of Directors
From:
Robert Mescher
Date:
December 04, 2013
Subject:
Consideration of:
a) Review of the Investment Policy
b) Delegation of Authority to the Treasurer
1. WHY THIS MATTER IS BEFORE THE BOARD
Only the Board can modify the District's investment policy and delegate authority to
the Treasurer to perform the duties as described in the District's investment policy.
2. HISTORY
The Board reviews the District's investment policy annually. The investment policy was
last reviewed on December 5, 2012 and it was not revised.
Each year, the Board delegates authority to the Treasurer to perform the duties as
described in the District's investment policy in accordance with Section 53607 of the
California Government Code. On December 5, 2012, the Board delegated authority to
Robert Mescher, District Treasurer, to invest District funds for FY13 according to the
District's investment policy.
Section 53607 states, "The authority of the legislative body to invest or to reinvest
funds of a local agency, or to sell or exchange securities so purchased, may be
delegated for a one-year period by the legislative body to the treasurer of the local
agency, who shall thereafter assume full responsibility for those transactions until the
delegation of authority is revoked or expires, and shall make a monthly report of those
transactions to the legislative body. Subject to review, the legislative body may renew
the delegation of authority pursuant to this section each year."
3. NEW INFORMATION
Attachment 1 is Section 3.20.012 of the District Code describing the District's
investment policy. Based upon a review by the District Treasurer, the policy continues
to meet the needs of the District. No revisions to the policy are proposed.
Attachment 2 provides a brief summary of the District's investments. Most of the
District's cash has been invested in California's Local Agency Investment Fund (LAIF),
which has continued to yield less than 0.4% annually. On May 1, 2013, the Board
authorized investment up to $10 million in Placer County Treasurer's Investment
Portfolio (PCTIP), which has yielded over 1.0% annually; almost three times more
yield than LAIF. Attachment 3 illustrates the benefit of investing in PCTIP.
4. FISCAL IMPACT
There is no fiscal impact associated with this item.
5. RECOMMENDATION
A) Review the District's investment policy as described in Section 3.20.012 and
provide comment.
B) Delegate authority to Robert Mescher, District Treasurer, to invest District funds for
FY14 according to the District's investment policy.
Robert Mescher Michael D. Holley
Administrative Services Manager General Manager