HomeMy WebLinkAbout1991-03-19; Housing & Redevelopment Commission; 177; Local Agency Investment Fund Account. . *J k., ” u” jr ; ’ j 2 . HOUSING AND, -‘:DEVELOPMENT COMMIS -3N - AGENDA BILL
B#/77 TITLE; DEPT. HD-
,TG. ESTABLISHMENT OF A LOCAL AGENCY INVESTMENT FUNC ClTy A 3//q /9 !
EPT. . FIN * ACCOUNT FOR THE CARLSBAD REDEVELOPMENT AGENCY CITY MG .
tiECOMMENDED ACTION:
Adopt Resolution No. 18s authorizing the establishment of a Local Agency
Investment Fund account for the Carlsbad Redevelopment Agency.
JTEM EXPJANATION:
The Investment Policy for the City of Carlsbad allows the investment of inactive
funds in a variety of instruments including the Local Agency Investment Fund
(LAIF). This fund, operated by the State Treasurer under Section 16429.1 of the
Government Code, is similar to a money market account for government
agencies. Funds may be deposited or withdrawn on one day’s notice, or even on
the same day if transfers are authorized early in the morning. Interest is paid up
to the day of withdrawal.
The City Treasurer uses the LAIF to provide a short term investment option that
allows him the flexibility to cover unexpected cash flow demands, or invest funds
until appropriate long term investments can be found. In addition, the LAIF
offers interest rates that compete with six month or one year instruments such
as Certificates of Deposit without the usual limitation on withdrawal of funds.
At this time, the City has one account with LAIF which usually has a balance of
$10 million, the maximum allowed by state statutes. The recommended action
would establish an additional LAIF account. in the name of the Carlsbad
Redevelopment Agency. This additional account would provide the Treasurer
with greater flexibility when making investment decisions and allow the City and
Redevelopment Agency to take advantage of higher interest rates without
increasing risk.
FISCAL IME’ACI?
The creation of the LAIF account for the Carlsbad Redevelopment Agency will
allow the Treasurer to take advantage of higher short term interest rates and
improve the return on the Agency’s portfolio. The exact amount of additional interest earnings will depend on market rates and the amount of Agency funds
investment in the account.
ExHmTs: ‘\
Resolution No. ) c( 5 authorizing the establishment of a Local Agency
Investment Fund account for the Carlsbad Redevelopment Agency.
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RESOLUTION NO. 185
A RESOLUTION OF THE CARLSBAD HOUSING AND
REDEVELOPMENT COMMISSION OF THE CARLSBAD
REDEVELOPMENT AGENCY AUTHORIZING THE
ESTABLISHMENT OF AN ACCOUNT WITH THE
LOCAL AGENCY INVESTMENT FUND
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 State Treasury for the deposit of money of a local agency for purposes
of investment by the State Treasurer; and
WHEREAS, the Carlsbad Housing and Redevelopment Commission 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 therein is in the best
interests of the Carlsbad Redevelopment Agency; and
WHEREAS, the Carlsbad Housing and Redevelopment Commission is the
governing body of the Carlsbad Redevelopment Agency.
NOW, THEREFORE, BE IT RESOLVED as follows by the Carlsbad Housing
and Redevelopment Commission of the Carlsbad Redevelopment Agency.
1. That the above recitations are true and correct.
2. That the Carlsbad Housing and Redevelopment Commission does hereby
authorize the deposit and withdrawal of Carlsbad Redevelopment Agency monies
in the Local Agency Investment Fund in the State Treasury in an account in the
name of the Carlsbad Redevelopment Agency in accordance with the provisions of
Section 16429.1 of the Government Code for the purpose of investment as stated
therein.
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3. That the following officers or their successors in office shall be
authorized to order the deposit or withdrawal of monies in the Local Agency
Investment Fund:
NAME TITLE
James M. Stanton City Treasurer
Frank Mannen Assistant City Manager/
Deputy City Treasurer
James F. Elliott Financial Management Direct0
PASSED, APPROVED AND ADOPTED at a reg-tilar meeting of the Carlsbad
Housing and Redevelopment Commission of the Carlsbad Redevelopment Agency on
the 19th day of Mnrrh , 1991, by the following vote, to wit:
AYES: Commissioners Lewis, Kulchin, Larson, Nygaard and Stanton
NOES: None
ABSENT: None
WJW
r CLAUDE A. LEWIS, Chairperson