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File #: 2016-0774   
Type: Policy Status: Consent Calendar
File created: 9/21/2016 In control: Board of Directors - Regular Board Meeting
On agenda: 1/26/2017 Final action: 1/26/2017
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.
Sponsors: Finance, Budget and Audit Committee
Indexes: Budgeting, Guidelines, Investment And Debt Management (Project), Measure M, Measure R, Policy, Resolution
Attachments: 1. Attachment A - 2017 LACMTA Investment Policy prelim, 2. Attachment B - Financial Resolution 01'17 prelim
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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