HomeMy WebLinkAbout101524-06.7TOD Investment Policy October 15, 2024
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ADMINISTRATIVE STAFF REPORT 6.7
TO: Mayor and Town Council October 15, 2024
SUBJECT: Resolution No. 73-2024, re-approving the Town of Danville Investment Policy
BACKGROUND
The Town of Danville operates under an adopted Investment Policy (“Policy”) to ensure the
prudent and safe investment of public funds. The Policy is guided by, and fully complies
with, Section 53601 of the California Government Code (CGC) and is reviewed annually and
updated as needed by the Town Council. The Policy was last updated, reviewed and
approved by the Town Council on October 17, 2023.
DISCUSSION
The Investment Policy has been refined incrementally over the years to provide the most
clearly defined and strongest policy applicable for the Town. The Town’s Treasurer and
independent investment advisor have reviewed the Investment Policy this year and are
recommending no changes at this time. The priority of investment objectives is: 1) safety
of principal; 2) required liquidity; and 3) a prudent yield.
FISCAL IMPACT
None.
RECOMMENDATION
Adopt Resolution No. 73-2024, re-approving the Town of Danville Investment Policy.
Prepared by:
Lani Ha
Finance Director/Treasurer
Reviewed by:
Joseph A. Calabrigo
Town Manager
Attachments: A - Resolution No. 73-2024
B - Town of Danville Investment Policy
ATTACHMENT A
1.PURPOSE TOWN OF DANVILLE INVESTMENT POLICY October 157, 20243
This Investment Policy (Policy) is established by the Town of Danville to
develop a clear understanding for the Town Council, Town staff, citizens and
third parties of the objectives, policies and guidelines for the investment of
the Town 1 s funds which are not required for immediate needs. The
Investment Policy also offers guidance to investment staff and any external
investment advisers on the investment of the Town 1 s funds.2.OBJECTIVE
The Town of Danville 1 s cash management system is designed to accurately
monitor and forecast expenditures and revenues, enabling the Town to invest
and manage funds to the fullest extent possible. The Town attempts to obtain
the highest yield possible after the basic requirements of safety and liquidity
have been met.
The primary objective of the investment policy of the Town of Danville is SAFETY. Investments shall be placed only in securities described in this
policy, authorized by federal, state and local laws and regulations, and
managed in a manner that seeks to ensure the preservation of principal. An
adequate percentage of the portfolio shall be maintained in liquid, short-term
securities which can be converted to cash if necessary, to meet forecasted
disbursement requirements. The portfolio shall also be appropriately
diversified to avoid incurring unreasonable and avoidable risks regarding
specific security types or individual financial institutions. Maximizing
interest earned is a secondary objective once safety, liquidity and legality
have been assured. The investment portfolio shall be designed with the
objective of obtaining a total rate of return throughout economic cycles,
commensurate with government codes, investment risk constraints and cash
flow needs. 3.PRUDENCE
Except as provided in California Government Code subdivision (a) of Section
ATTACHMENT B