Meeting_Body
FINANCE, BUDGET AND AUDIT COMMITTEE
FEBRUARY 16, 2022
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 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 review and approve the Investment Policy on an annual basis and at a public meeting. Section 53607 of the Code requires that the Board delegate investment authority to the Treasurer on a yearly 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 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 on February 25, 2021.
Discussion
DISCUSSION
The Board approves the objectives and guidelines that direct the investment of operating funds. Changes to the Investment Policy have been made to incorporate updates to the California Government Code. A redlined version of the investment policy is presented in Attachment A.
Financial Institutions require Board authorization to establish custody, trustee, and commercial bank accounts. A redlined version of the resolution is presented in Attachment B. Changes reflect position title changes.
To streamline this board report, the following reference materials may be found on the Internet:
Current Metro Investment Policy:
https://cdn.beta.metro.net/wp-content/uploads/2021/12/02111807/2021-Investment-Policy-Final.pdf
California Government Code: Sections ...
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