City of San Fernando

CITY TREASURER’S OFFICE

MEMORANDUM

TO:Mayor Steven Veres and Councilmembers

FROM:Robert Ordelheide, City Administrator

By: Margarita Solis, City Treasurer

DATE:February 1, 2010

SUBJECT:Resolution Authorizing the City Treasurer and Deputy City

Treasurer to Invest Surplus Funds

RECOMMENDATION:

It is recommended that the City Council adopt a Resolution (Attachment “A”) authorizing the City Treasurer and Deputy City Treasurer to Invest Surplus Funds.

BACKGROUND:

Pursuant to Government Code Section 53607, the City Council may delegate to the City Treasurer the authority to make investments. The City Council has delegated this authority to the City Treasurer and Deputy City Treasurer in past years. The Government Code requires that, if the City Council wishes to delegate this authority to the Treasurer, this delegation must be readopted annually.

The Resolution would renew for one year the delegation to the City Treasurer and Deputy City Treasurer the authority to invest surplus funds of the City.

BUDGET IMPACT:

None.

ATTACHMENT:

A. Resolution

ATTACHMENT “A”

RESOLUTION NO. _____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN FERNANDO AUTHORIZING THE CITY TREASURER AND DEPUTY CITY TREASURER TO INVEST SURPLUS FUNDS

WHEREAS, the City Council of the City of San Fernando has determined that, as a policy and practice of the City, any monies (“Surplus Funds”) in a sinking fund of, or surplus money in, its treasury not required for the immediate necessities of the City, may be invested in such a manner as to maximize the return thereof for the benefit of the City, its citizens and its taxpayers;

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN FERNANDO DOES HEREBY RESOLVE AS FOLLOWS:

1.Any portion of any Surplus Funds in a sinking fund of, or surplus money in, the City Treasury not required for the immediate necessities of the City may be invested by the City in any investment medium permissible under state law for the investment of the funds of a General law city.

2.The investment of all Surplus Funds shall be made and maintained pursuant to Section 53601 of Title 5, Division 2 of the California Government Code.

3.The authority of the City Council to invest or to reinvest surplus funds of the City, or to sell or exchange securities so purchased, is hereby delegated by the City Council to the Treasurer of the City (“Treasurer”) and to the Deputy Treasurer of the City (“Deputy Treasurer”), who both shall assume full responsibility for such transactions until such time as this delegation of authority is revoked, and who shall make monthly reports of any and all such transactions to the City Council.

4.The authority of the City Council is hereby delegated to the Treasurer or Deputy Treasurer to deposit for safekeeping with a federally chartered or state chartered savings and loan association, a trust company or a state or national bank located within the State of California or with the Federal Reserve Bank of San Francisco or any branch thereof within the state, or with any Federal Reserve Bank or with any state or national bank located in any city designated as a reserve city by the Boards of Governors of the Federal Reserve System, the bonds, notes, bills, debentures, obligations, certificates of indebtedness, warrants, or other evidences of indebtedness in which the Surplus Funds of the City is invested pursuant to this Resolution. The Treasurer or Deputy Treasurer shall take from such financial institution a receipt for securities so deposited. The Treasurer or Deputy Treasurer shall not be responsible for securities delivered to and receipted for by a financial institution until they are withdrawn from the financial institution by the Treasurer or Deputy Treasurer.

PASSED, APPROVED AND ADOPTED by the City Council of the City of San Fernando at a regular meeting held on this 1st day of February, 2010.

Steven Veres, Mayor

ATTEST:

Elena G. Chavez, City Clerk

STATE OF CALIFORNIA)

COUNTY OF LOS ANGELES)SS

CITY OF SAN FERNANDO)

I, Elena G. Chavez, City Clerk of the City of San Fernando, do hereby certify that the foregoing Resolution was duly adopted by the City Council and signed by the Mayor of said City at a regular meeting held on the 1st day of February, 2010; and the same was passed by the following vote, to wit:

AYES:

NOES:

ABSENT:

Elena G. Chavez, City Clerk