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COUNTY OF SAN MATEOInter-Departmental Correspondence |
Treasurer-Tax Collector |
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DATE: |
January 13, 2003 |
BOARD MEETING DATE: |
January 28, 2003 |
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TO: |
Honorable Board of Supervisors |
FROM: |
Lee Buffington-Treasurer-Tax Collector |
SUBJECT: |
Resolution Approving The San Mateo County Investment Policy, As Revised January 6, 2003 |
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Recommendation |
Adopt a resolution approving the San Mateo County Investment Policy as revised on January 6, 2003. The Investment Policy has been submitted to the Investment Advisory Committee for review and monitoring. No comments have been received. The only significant change in the new Policy occurs on page 9, and is as follows: |
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In light of the County Counsel's request for an Attorney General's opinion regarding the method of nominating members for the Investment Advisory Committee, the section dealing with the selection of members has been deleted, and a substitute section that just references the applicable Government Code section has been added. |
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Other clerical changes were made to conform to the Government Code sections 52601 and 53635. Specifically, maximum maturity on commercial paper was changed from 180 days to 270 days; the maximum term for Bankers Acceptances was changed from 270 days to 180 days; and the maximum maturity on a Repurchase Agreement was changed from 92 days to one year. |
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Background |
The current version of the San Mateo County Pooled Accounts Investment Policy was initially approved in December 1984. The Treasurer has updated the policy annually with the last approval by the Board of Supervisors in January 2002. |
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Discussion |
The overriding objective of the Investment Policy is the safety of the funds. Liquidity and yield are secondary objectives. The inclusion of security lending in the investment policy resulted in approximately $300,000 in additional income over the last year. This was significantly better than we had anticipated. |
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The San Mateo County Pooled Accounts Investment Policy is reviewed and approved annually by the Board of Supervisors. The Treasurer will communicate the Policy to pool participants and receive their written acknowledgement of the current version of the Investment Policy. |
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Vision Alignment |
This Policy is in alignment with department and County visioning goals #20. |
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Fiscal Impact |
It is difficult to predict what will be happening in the financial markets next year. However, we do not anticipate any significant changes resulting from this revision of the investment policy. |