COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Tax Collector-Treasurer

DATE:

January 25, 2002

BOARD MEETING DATE:

February 5, 2002

TO:

Honorable Board of Supervisors

FROM:

Lee Buffington, Tax Collector-Treasurer

SUBJECT:

Resolution Approving The San Mateo County Investment Policy, As Revised January 3, 2002

 

Recommendation

Adopt a resolution approving the County Investment Policy, as revised on January 3, 2002 and approved by the San Mateo County Investment Advisory Committee on January 25, 2002.

 

Background

The current version of the San Mateo County Pooled Accounts Investment Policy was initially approved in December of 1984. The Treasurer has updated the policy several times with the last approval by the Board of Supervisors in January of 2001.

 

Discussion

The overriding objective of the Investment Policy is the safety of the funds. Liquidity and yield are secondary objectives.

 

The San Mateo County Pooled Accounts Investment Policy is reviewed and approved annually by the Board of Supervisors. The San Mateo County Investment Advisory Committee approved the Investment Policy as revised January 3, 2002. The Treasurer will communicate the Policy to pool participants and receive their written acknowledgement of the current version of the Investment Policy.

 

There are two changes in the San Mateo County Investment Policy for the year 2002. The addition of both Security Lending and the statement for Voluntary Participants in the San Mateo County Pooled Fund. The Treasurer has elected to include Security Lending in the Investment Policy due to Legislation that clarifies the status of Security Lending. The Voluntary Participants statement has been included to clarify the basis for participation in the San Mateo Pooled Accounts.

 

Fiscal Impact

Under the current interest rate structure, Security Lending may not have any fiscal impact. The actual fiscal impact from Security Lending will depend on the make-up of the portfolio i.e., the amount of treasury paper that we own, and the interest rate paid for overnight investments. A more realistic estimate, when overnight rates improve, would be $15,000.00 to $20,000.00 per month.