Meeting_Body
FINANCE, BUDGET AND AUDIT COMMITTEE
JANUARY 18, 2017
Subject/Action
SUBJECT: INVESTMENT POLICY
ACTION: ANNUAL ADOPTION OF INVESTMENT POLICY AS REQUIRED BY CALIFORNIA GOVERNMENT CODE
Heading
RECOMMENDATION
Title
CONSIDER:
A. ADOPTING the Investment Policy as revised in Attachment A.
B. APPROVING the Financial Institutions Resolution authorizing financial institutions to honor signatures of LACMTA Officials, Attachment B; and
C. DELEGATING to the Treasurer or his/her designees, the authority to invest funds for a one year period, pursuant to California Government Code ("Code") Section 53607.
Issue
ISSUE
Section 53646 of the Code, requires that the Board, on an annual basis and at a public meeting, review and approve the Investment Policy. Section 53607 of the Code, requires that the Board delegate investment authority to the Treasurer on an annual basis.
Measure M sales tax revenues will be subject to the guidelines in the attached investment policy as part of special revenue funds that consist of all local sales tax revenue.
Section 10.8 of the Investment Policy requires that the Treasurer submit the Financial Institutions Resolution to the Board annually for approval.
Discussion
DISCUSSION
The Board approves the objectives and guidelines that direct the investment of operating funds. The proposed revision expands our investment choices by allowing the purchase of equipment receivables as noted in the Investment Policy, Attachment A, Footnotes to Section 5.1A, footnote k.
Financial Institutions require Board authorization to establish custody, trustee and commercial bank accounts. In accordance with the Investment Policy, staff reviewed and updated the resolution to reflect position title changes. See Attachment B.
To streamline this board report, the following reference materials may be found on the Internet:
Current Investment Policy: http://www.metro.net/about_us/finance/images/investment_policy.pdf
California Gove...
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