HomeMy WebLinkAbout2006-04-25; Public Financing Authority; 14; Account with Local Agency Investment FundCARLSBAD PUBLIC FINANCING AUTHORITY - AGENDA BILL
1
AB# 14
MTG. 4/25/06
DEPT. TRS
TITLE: A RESOLUTION OF THE CARLSBAD
PUBLIC FINANCING AUTHORITY
AUTHORIZING THE ESTABLISHMENT OF AN
ACCOUNT WITH THE LOCAL AGENCY
INVESTMENT FUND
DEPT. h/D. JfJ7JS&
CITY ATTYd^
CITY MGpSj^
RECOMMENDED ACTION:
Adopt Resolution No.
Investment Fund.
ITEM EXPLANATION:
18 authorizing the investment of monies in the Local Agency
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 $511 million. As required by the City's investment
policy, at least 2/3rds of the current operating budget or $106 million 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 three LAIF accounts for
short-term investments. Each LAIF account is limited to a maximum of $40 million.
Rates earned on LAIF deposits typically exceed one-year market rates in a declining interest rate
environment. When this occurs, additional deposits in LAIF may become desirable for short-term
investments. To provide for this possibility, the City Treasurer is recommending that an additional
LAIF account be established through the Carlsbad Public Financing Authority.
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 addition choice in determining the best investment
vehicle.
authorizing the investment of monies in the Local Agency Investment
EXHIBITS:
1. Resolution No.
Fund.
DEPARTMENT CONTACT: Nancy Sullivan (760) 602-2473, nsull@.ci.carlsbad.ca.us
EXHIBIT 1
1 RESOLUTION NO. 18
2
A RESOLUTION OF THE CARLSBAD PUBLIC FINANCING AUTHORITY
3 AUTHORIZING THE ESTABLISHMENT OF AN ACCOUNT WITH THE LOCAL
AGENCY INVESTMENT FUND
4
WHEREAS, pursuant to Chapter 730 of the statutes of 1976 Section 16429.1 was
g added to the California Government Code to create a Local Agency Investment Fund in the
7 State Treasury for the deposit of money of a local agency for purposes of investment by the
8 State Treasurer; and
9 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
11
Section 16429.1 of the Government Code for the purpose of investment as stated herein is
12
in the best interests of the Carlsbad Public Financing Authority.
13
NOW THEREFORE, BE IT RESOLVED as follows by the Carlsbad Financing
14
Authority:
1. That the above recitations are true and correct.
16 2. That Article IV, Section 4.03(g) of the Joint Exercise of Powers Agreement grants
17 the Carlsbad Public Financing Authority the power to direct funds.
18 3. That the Local Agency Investment Funds has determined that the Carlsbad Public
Financing Authority qualified as a participant pursuant to Chapter 730 of the statutes of
1976 Section 16429.1.
20 4. That the Board of Directors does hereby authorize the deposit and withdrawal of the
21 Carlsbad Public Financing Authority monies in the Local Agency Investment Fund in the
22 State Treasury in accordance with the provisions of Section 16429.1 of the Government
23 Code for the purpose of investment as stated therein, and verification by the State
Treasurer's Office of all banking information provided in that regard.
5. That the Joint Exercise of Powers Agreement of the Carlsbad Public Financing
25
Authority, Article m Section 3.02, states that the Finance Director of the City is designated
as the Treasurer of the Authority.
9-
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
6. That the Treasurer of the Carlsbad Public Financing Authority authorized the
following officers of the City or their successors in office to order the deposit or withdrawal
of monies in the Local Agency Investment Fund:
NAME
James M. Stanton
Lisa Hildabrand
Lisa Irvine
Kevin Branca
Nancy Sullivan
TITLE
City Treasurer
Assistant City Manager
Finance Director
Assist. Finance Director
SIGNATURE
Assist, to the City Treasurer/.
Deputy City Treasurer
sCS^^is
/Special
PASSED, APPROVED AND ADOPTED by the Board of Directors at a-regHter meeting of
the Carlsbad Public financing Authority in San Diego County in the State of California on
the 25th day of April 2006 by the following vote, to wit:
AYES: Members Lewis, Hall, Kulchin, Packard, Sigafoose
NOES: None
ABSENT: None
1ST:
aude A. Lewis, President
Lorraine Wood, Secretary