TO: Board of Supervisors
FROM: Robert Minahen - Treasurer-Tax Collector
REPORT BY: Sam Ross - Assistant Treasurer-Tax Collector
SUBJECT: Adopt a resolution renewing the delegation of authority to invest funds held in the County Treasury to the Treasurer-Tax Collector and approve the Napa County Statement of Investment Policy
RECOMMENDATION
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Adopt a Resolution to renew delegation of investment/reinvestment authority to the Treasurer-Tax Collector for an additional one-year period beginning April 1, 2026 and approve the Napa County Investment Policy. (No Fiscal Impact; Discretionary)
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BACKGROUND
The California Legislature has enacted a detailed statutory process for the deposit and investment of local agency surplus funds. Since the County is a local agency, the County’s Board of Supervisors is empowered to make investment decisions on the County’s behalf. However, the Board of Supervisors may delegate its investment authority to the county treasurer pursuant to California Government Code sections 53607 and 27000.1. If the delegation of investment/reinvestment authority occurs, the Treasurer-Tax Collector takes full responsibility for investments and reinvestments of local agency surplus funds until the Board of Supervisors either revokes its overall delegation of authority by ordinance, or decides not to renew the annual delegation.
Since the adoption of the ordinance in 1996, the Board of Supervisors’ delegation of authority to the Treasurer-Tax Collector to invest/reinvest has been renewed every year. The current annual delegation period is scheduled to expire at the end of March. Therefore, the Treasurer-Tax Collector is requesting the Board of Supervisors adopt a resolution delegating its authority to invest/reinvest local agency surplus funds held in the Napa County Treasury to the Treasurer-Tax Collector for one year ending March 31, 2027.
The Napa County Investment Policy is presented annually to the Napa County Treasury Oversight Committee (TOC) for review and monitoring in accordance with California Government Code sections 27133 and 53646(a)(1). In October 2025, the TOC approved the existing Investment Policy without changes and modified the list of authorized brokers to remove Baird Asset Management and to add Hilltop Securities. The policy adopted by the Board of Supervisors in the prior year inadvertently did not include previously approved modifications to Section 16 - Social Issues/Responsibility restricting new investments. A redlined copy is attached showing the representment of those restrictions. There has been no change to the management of funds related to this aspect of the policy. The Napa County Treasurer-Tax Collector recommends approval of the attached Statement of Investment Policy dated March 10, 2026.
FISCAL IMPACT
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Is there a Fiscal Impact? |
No |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
The Treasurer-Tax Collector is currently responsible for cash flow forecasting and surplus funds investment decisions, following Prudent Investor guidelines while prioritizing safety and liquidity before yield. |
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Consequences if not approved: |
If delegation of authority is not approved, the Board of Supervisors would absorb fiduciary responsibilities under Government Code section 53600.3 for all investment/ reinvestment of surplus funds decisions effective April 1, 2026. |
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ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.