Meeting_Body
FINANCE, BUDGET AND AUDIT COMMITTEE
MARCH 20, 2025
Subject
SUBJECT: INVESTMENT POLICY
Action
ACTION: APPROVE RECOMMENDATION
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's Officials in Attachment B; and
C. DELEGATING to the Treasurer or their 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, to, review and approve the Investment Policy at a public meeting. Section 53607 of the Code requires the Board to delegate investment authority to the Treasurer on an annual basis. In addition, Section 10.8 of the Investment Policy requires the Treasurer to submit the Financial Institutions Resolutions to the Board annually for approval.
Background
BACKGROUND
Metro's Investment Policy allows for operating funds to be invested consistent with Board approved investment policy guidelines. The primary objectives of the Investment Policy, in priority order, are to maintain the safety of principal, to provide liquidity, and to achieve a return on funds invested. The Investment Policy, which was last updated on March 28, 2024, is updated annually to incorporate changes deemed necessary to meet Metro's primary objectives and to ensure it aligns with any changes in the California Government Code.
Discussion
DISCUSSION
Changes to the Investment Policy have been made to be consistent with the California Government Code, limit the number of nationally recognized statistical rating organizations to three, permit floating rate securities (limited to 10 percent maximum of total portfolio), and to add a new section in areas related to Environmental, Social, and Governance to promote potential investment opportunities in entities or proje...
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