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Home My WebLink About1999-01-19; Public Improvement Corporation; 005; Establish Account With Local Agency Invest. Fund. .Q P % . . f5 5 a - G7l a 0 I CITY OF CARLSBAD - PUBLIC IMPROVEMENT CORPORATION- & AB## 005 1 TITLE: MTG f-/q”47 ESTABLISHMENT OF AN ACCOUNT WITH THE . __ -- --_ LOCAL AGENCY INVESTMENT FUND FOR THE CITY DEPT. -TRS - OF CARLSBAD PUBLIC IMPROVEMENT CORPORATION RECOMMENDED ACTION: Adopt Resolution No. “i 9 --/ : approving the creation of an account with the Local Agency Investment Fund (LAIF) for the City of Carlsbad Public Improvement Corporation. ITEM EXPLANATION: LAIF is a an investment alternative for California’s local governments and special districts. It was created by statute in 1977 and is managed by the State Treasurer’s office. This program offers local agencies the opportunity to participate in a major portfolio. The City Treasurer invests all of the inactive cash for the City and its agencies. The City’s investment portfolio currently approximates $275 million. As required by the City’s investment policy, at least 50% of the total investments must mature within one year. One short-term investment alternative available to the City Treasurer is the Local Investment Agency Fund (LAIF). The City Treasurer currently uses two LAIF accounts for short-term investments. Each LAIF account is limited to a maximum of $30 million. Rates earned on LAIF deposits typically exceed one-year market rates in a declining interest rate environment, which has been the case for almost a year. In response to recent changes in market interest-rates, additional deposits in LAIF may become desirable for the short-term investments. To provide for this possibility, the City Treasurer is recommending that an additional LAIF account be established through the City of Carlsbad Public Improvement Corporation. The City’s investment portfolio has grown over $25 million since July 1, 1998. An additional growth of $40 million is anticipated by the end of the current fiscal year, June 30, 1999. The proposed LAIF account may help to optimize investment returns for short-term investments. FISCAL IMPACT: The creation of an additional LAIF account will have a minor yet positive fiscal impact on the City. It will allow more flexibility by allowing an additional choice in determining the best investment vehicle. EXHIBITS: Resolution No. $P- / approving the creation of an account with the Local Agency Investment Fund for the City of Carlsbad Public Improvement Corporation. I - RESOLUTION NO. 99-I. A RESOLUTION OF THE CITY OF CARLSBAD PUBLIC IMPROVEMENT CORPORATION AUTHORIZING THE ESTABLISHMENT OF AN ACCOUNT WITH THE LOCAL AGENCY INVESTMENT FUND 5 6 WHEREAS, pursuant to Chapter 730 of the statutes of 1976 Section 16429.1 was added to the California Government Code to create a Local Agency Investment Fund in the 7 8 State Treasury for the deposit of money of a local agency for purposes of investment by the 9 State Treasurer; and 10 11 12 13 14 WHEREAS, the Board or Directors does hereby find that the deposit and withdrawal of money in the Local Agency Investment Fund in accordance with the provisions of Section 16429.1 of the Government Code for the purpose of investment as stated herein is in the best interests of the City of Carlsbad Public Improvement Corporation. 15 NOW THEREFORE, BE IT RESOLVED as follows by the City of Carlsbad Public 16 Improvement Corporation: 17 1. That the above recitations are true and correct. 18 2. That Section II (B)(l)(e) of the Articles of Incorporation grant the City of Carlsbad Public Improvement Corporation the power to direct funds. 19 20 3. That the Local Agency Investment Funds has determined that the City of Carlsbad Public Improvement Corporation qualified as a participant pursuant to Chapter 730 of the 21 statutes of 1976 Section 16429.1. 22 4. That the Board of Directors does hereby author& the deposit and withdrawal of 23 City of Carlsbad Public Improvement Corporation monies in the Local Agency Investment 24 Fund in the State Treasury in accordance with the provisions of Section 16429.1 of the 25 Government Code for the purpose of investment as stated therein, and verification by the 26 State Treasurer’s Office of all banking information provided in that regard. 27 5. That the Bylaws of the City of Carlsbad Public Improvement Corporation, Article III Section 1, states that the chief financial officer of the City shall act ex o#kio as the 28 I/ Treasurer of the Corporation. : : L c . f 7 E 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 6. That the Treasurer of the City of Carlsbad Public Improvement Corporation author&d the following officers of the City or their successors in ofIke to order the deposit or withdrawal of monies in the Local Agency Investment Fund: NAME James M. Stanton Frank Mannen Lisa Hildabrand Kevin Branca Nancy Sullivan TITLE SIGNATURE City Treasurer Assistant City Manager/ Deputy City Treasurer f Finance Director Assist. Finance Director Assist. to the City Treasure PASSED, APPROVED AND ADOPTED by the Board of Directors at a regular meeting of the City of Carlsbad Public Improvement Corporation in San Diego County in the State of California on the 19th day of January 1999 by the following vote, to wit: AYES: Board Members Lewis, Hall, Finnila, Nygaard and Kulchin NOES: None ABSENT: None ATTEST: Aletha Rautenkranz, Secretary “IRITE IT - DON’T SAFT! Date January 26 1999 To NOTE TO FILE 0 Reply Wanted From Kathleen D. Shout q No Reply Necessary The attached page, labeled "Local Agency Investment Fund", is a copy of both sides of a blue card, 5 l/2" X 8 l/2", that was attached to Agenda Bill NO. 005, Public Improvement Corporation, dated l/19/99. This card was sent to Nancy Sullivan in the City Treasurer's Office per her instructions, along with copies of the Agenda Bill and Resolution NO. 99-1, on January 26, 1999. I . c” LOOU AGl!ACYIMSW!FuND AUTEORIZATION FOR TRANSFER OF FUNDS m ACCOUNT AUTEORIZED PERSONS AGEN~N~: City of Carlsbad Public Improvement Corporatic DATE ADDRESS. 1200 Carlsbad Village Drive . Carlsbad, CA 92008 PHONE/FAX NUMB= 760-434-2869 / FAX 760-434-8164 reasurer LOGW AGE’NCW IffVESWM WND AUTEOR@ATION FOR TRANSFER OF FUNDS REGWLA&ACCOEJNT-GWORMATION * BANKNAME A.EX?RESS & TEI+EPEONE NUMBER ACCOUNT AND ABA CORRESPONDENTBANK (STQ RECEIVING BANK) Wells Fargo Bank (619)-699-3029 4159281716 ,Bank of America 401 B Street, Suite 2201 ABA li~l@#.EE%8 Union Bank of California 475 San&me Street, i5th Floor 242002190-01 ABA 122000496. 415-296-6737 Union Bank of California .* Sobject ta verification by State Treasnrer% Office STATE TREASURER’S OFFICE WC’ AtYENCYI~ X Authorized Signature (Must be aathorized on ResoWion) P.O. BOX 942809 SACRQMEIVTO, CA 94209-0001 X Aathorized Signature (Must be mthorized on Resolution)