Meeting_Body
FINANCE, BUDGET, AND AUDIT COMMITTEE
MARCH 15, 2023
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 the Board, on an annual basis and at a public meeting, review and approve the Investment Policy. Section 53607 of the Code, requires the Board to 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 on February 24, 2022.
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 Investment Policy Changes is presented as Attachment A.
Although not required by CA Gov't code, a Staff has also added a restriction against investment in fossil fuel companies, tobacco or tobacco-related companies, and companies in support of the production of weapons, military systems, or nuclear power. Staff incorporated the Socially Responsible restriction to the investment policy for the longer term social and environmental benefits of the local community.
Financial Institutions require Board authorization to ...
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