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HomeMy WebLinkAbout2025-10-16; Investment Review Board; 03; Overview of the City of Carlsbad Treasury DepartmentMeeting Date: Oct. 16, 2025 To: Investment Review Board From: Christian Peacox, 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. Fiscal Analysis This action has no fiscal impact. Environmental Evaluation The proposed action is not a “project” as defined by California Environmental Quality Act Section 21065 and CEQA Guidelines Section 15378(b)(5) and does not require environmental review under CEQA Guidelines Section 15060(c)(3) and 15061(b)(3) because the proposed action presenting an overview of the City of Carlsbad Treasury Department is an organizational or administrative government activity that does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. Any subsequent action or direction stemming from the proposed action may require preparation of an environmental document in accordance with CEQA or the CEQA Guidelines. Exhibits None. INVESTMENT REVIEW BOARD Oct. 16, 2025 Item #3 Page 1 of 1 City of Carlsbad Treasury Department Christian Peacox, City Treasurer October 16, 2025 TREASURY DEPARTMENT OVERVIEW •Governing Bodies •Treasury Management Functions •Public Investment Objectives •Allowable Investments •Investment Policy •Checks and Balances GOVERNING MANAGEMENT Functions and operations of the Treasury department are governed by various laws, bodies and policies, including: •California Government Code •Governmental Accounting Standards Board •City of Carlsbad Municipal Codes and Council Policies •City of Carlsbad Investment Policy –Investment Review Board TREASURY MANAGEMENT FUNCTIONS •Arrange for banking services •Invest inactive cash in accordance with Investment Policy •Accounting for each day’s banking activity and investment activity •Maintain appropriate cash flow •Reporting for transparency PUBLIC INVESTMENT OBJECTIVES Safety Liquidity Yield ALLOWABLE INVESTMENTS •Federal agencies •Corporate notes •Certificates of deposit •Mortgage-backed securities •Municipal bonds •Pooled money investment accounts INVESTMENT POLICY (APPROVED ANNUALLY BY THE CITY COUNCIL) •Fixed maturity (no equities) •Buy and hold •Maturity ladder Within one year - no less than $305 million or two-thirds of approved operating budget ($459 million) No maturity beyond five years CHECKS AND BALANCES •Investment Policy approved annually by the City Council •Monthly, quarterly, and annual investment reports to the City Council •Quarterly review by the Investment Review Board •Independent audit to ensure compliance with Investment Policy and accounting activities INVESTMENT REVIEW BOARD REVIEW The Board shall meet at least quarterly to review investment operations. The Board acts in an advisory role and does not make investment decisions. Consistent with the investment policies and practices of the City of Carlsbad, the Board’s goals are prioritized and include: •Providing oversight of the protection and management of the principal monies entrusted to the Office of the City Treasurer, in compliance with all federal, state and local laws governing the investment of monies under the control of the City Treasurer; •Providing oversight of the investment portfolio’s liquidity and ability to meet all operating requirements which might be reasonably anticipated; and •Providing oversight of investment portfolio’s return on investment within the parameters of prudent risk management, federal, state and local laws, and the city’s Investment Policy The Board will work with the City Treasurer, the Deputy City Treasurer and investment staff to discuss current market conditions and future trends and how each of these affects the investment portfolio and the city CONTACT Katie Schroeder, Senior Accountant katie.schroeder@carlsbadca.gov City Treasurer treasury@carlsbadca.gov