TO: Board of Supervisors
FROM: Robert Minahen - Treasurer-Tax Collector
REPORT BY: Sam Ross - Treasury Manager
SUBJECT: Delegation of Investment Authority to Treasurer-Tax Collector and Approval of the Napa County Statement of Investment Policy
RECOMMENDATION
title
Adopt a Resolution to renew delegation of investment/reinvestment authority to the Treasurer-Tax Collector for an additional one-year period beginning April 1, 2024, and approve the Napa County Investment Policy. (No Fiscal Impact; Discretionary)
body
BACKGROUND
Renew Delegation of Investment Authority
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, 2025.
Approve Napa County Statement of Investment Policy
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). The TOC re-approved the existing Investment Policy, approved by the Board of Supervisors on March 28, 2023, without changes and approved the addition of Baird Asset Management to the list of authorized brokers.
The Napa County Treasurer-Tax Collector recommends approval of the attached Statement of Investment Policy dated March 12, 2024.
FISCAL & STRATEGIC PLAN IMPACT
|
Is there a Fiscal Impact? |
No |
|
Is it currently budgeted? |
No |
|
Is it Mandatory or Discretionary? |
Discretionary |
|
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. |
|
Is the general fund affected? |
No |
|
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, 2024. |
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.