Meeting_Body
FINANCE, BUDGET AND AUDIT COMMITTEE
FEBRUARY 19, 2020
Subject
SUBJECT: INVESTMENT POLICY
Action
ACTION: APPROVE RECOMMENDATIONS
Heading
RECOMMENDATION
Title
CONSIDER:
A. ADOPTING the Investment Policy 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 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.
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 February 28, 2019.
Discussion
DISCUSSION
California Government Code sections relevant to Metro's Investment Policy were not amended during the 2019 California Legislative session. Therefore, the Investment Policy presented in Attachment A for Board approval is unchanged from the prior year. The Board approves the objectives and guidelines that direct the investment of operating funds.
Financial Institutions require Board authorization to establish custody, trustee and commercial bank accounts. The Financial Institutions resolution is presented as Attachment B.
To streamline this board report, the following reference materials may be found on the Internet:
Current Investment Policy: http://media.metro.net/about_us/finance/images/investment_policy.pdf
California Government ...
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