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HomeMy WebLinkAbout2024-10-24; Investment Review Committee; ; Overview of the City of Carlsbad Treasury DepartmentMeeting Date: Oct. 24, 2024 To: Investment Review Committee From: Zach Korach, Finance Director / Deputy City Treasurer Staff Contact: Katie Schroeder, Senior Accountant katie.schroeder@carlsbadca.gov, 442-339-5246 Subject: Overview of the City of Carlsbad Treasury Department District: All Recommended Action Receive a presentation overview of the City of Carlsbad Treasury Department. Executive Summary Staff will provide a presentation of the City of Carlsbad Treasury Department and the policies, procedures and operations it is responsible for. Discussion & Fiscal Analysis This action has no fiscal impact. Environmental Evaluation This action does not require environmental review because it does not constitute a project within the meaning of the California Environmental Quality Act under California Public Resources Code Section 21065 in that it has no potential to cause either a direct physical change or a reasonably foreseeable indirect physical change in the environment. Exhibits None. INVESTMENT REVIEW COMMITTEE Oct. 24, 2024 Item #2 Page 1 of 1 Staff Report City of Carlsbad Treasury Department Zach Korach, Finance Director/Deputy City Treasurer October 24, 2024 ( City of Carlsbad TREASURY DEPARTMENT OVERVIEW FY 23-24 Q4 – Investment Review •Treasury Management Functions •Public Investment Objectives •Allowable Investments •Investment Policy •Checks and Balances {city of Carlsbad TREASURY MANAGEMENT FUNCTIONS •Arrange for banking services •Accounting for each day’s banking activity and investment activity •Forecast cash flows •Invest inactive cash in accordance with Investment Policy •Internal controls •Reporting for transparency {city of Carlsbad PUBLIC INVESTMENT OBJECTIVES Safety Liquidity Yield (city of Carlsbad ALLOWABLE INVESTMENTS •Federal agencies •Corporate notes •Certificates of deposit •Mortgage-backed securities •Municipal bonds •Pooled money investment accounts {city of Carlsbad INVESTMENT POLICY (APPROVED ANNUALLY BY THE CITY COUNCIL) •Fixed maturity (no equities) •Buy and hold •Maturity ladder Within one year - no less than $279.3 million or two-thirds of approved operating budget ($419.0 million) No maturity beyond five years {city of Carlsbad CHECKS AND BALANCES •Annual statement of Investment Policy approved by the City Council •Monthly, quarterly, and annual investment reports to the City Council •Quarterly review by the Investment Review Committee •Independent audit to check compliance with Investment Policy {city of Carlsbad CONTACT Katie Schroeder, Senior Accountant katie.schroeder@carlsbadca.gov City Treasurer treasury@carlsbadca.gov {city of Carlsbad