File #: 2018-0607   
Type: Policy Status: Agenda Ready
File created: 9/6/2018 In control: Finance, Budget and Audit Committee
On agenda: 2/20/2019 Final action:
Title: CONSIDER: A. ADOPTING the Investment Policy in Attachment B; B. APPROVING the Financial Institutions Resolution authorizing financial institutions to honor signatures of LACMTA Officials, Attachment C; and C. APPROVING the Local Agency Investment Fund (LAIF) Resolution authorizing LAIF to honor LACMTA Authorized Signatures, Attachment D; and D. DELEGATING to the Treasurer or 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), Metro Red Line, Policy, Policy making, Resolution
Attachments: 1. Attachment A - Summary of Investment Policy Changes, 2. Attachment B - Investment Policy (redlined), 3. Attachment C - Financial Institutions Resolution (redlined), 4. Attachment D - LAIF Financial Institutions Resolution
Related files: 2019-0137
Date Action ByActionResultAction DetailsMeeting DetailsAudio
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Meeting_Body
FINANCE, BUDGET AND AUDIT COMMITTEE
FEBRUARY 20, 2019

Subject
SUBJECT: INVESTMENT POLICY

Action
ACTION: APPROVE RECOMMENDATIONS

Heading
RECOMMENDATION

Title
CONSIDER:

A. ADOPTING the Investment Policy in Attachment B;

B. APPROVING the Financial Institutions Resolution authorizing financial institutions to honor signatures of LACMTA Officials, Attachment C; and

C. APPROVING the Local Agency Investment Fund (LAIF) Resolution authorizing LAIF to honor LACMTA Authorized Signatures, Attachment D; and

D. DELEGATING to the Treasurer or 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.

Section 10.8 of the Investment Policy requires that the Treasurer submit the Financial Institutions Resolutions to the Board annually for approval. The Local Agency Investment Fund (LAIF) Resolution also requires updating due to staff title changes.

Background
BACKGROUND

Metro's investment policy allows for temporary idle funds to be invested consistent with Board approved investment policy guidelines. The policy is updated on an annual basis and was last updated March 1, 2018.

Discussion
DISCUSSION

The Board approves the objectives and guidelines that direct the investment of operating funds. Subsequent to the last approval in March 2018, our investment policy underwent two peer reviews. The first was performed by the Association of Public Treasurers of the United States & Canada (APTUSC). As a result they presented LACMTA with their Investment Policy Certificate of Excellence Award. The second was a peer review performed by the California Municipal Treasurer's Association (CMTA). CMTA determine...

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