COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Treasurer-Tax Collector

DATE:

December 16, 2004

BOARD MEETING DATE:

January 4, 2005

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

TO:

Honorable Board of Supervisors

FROM:

Lee Buffington, Treasurer-Tax Collector

SUBJECT:

Resolution Approving The Revised San Mateo County Investment Policy, January 2005

RECOMMENDATION:

Adopt a resolution approving the revised San Mateo County Investment Policy, January 2005, submitted to the County Investment Advisory Committee and approved on November 9, 2004.

VISION ALIGNMENT:

Commitment: Responsive, effective and collaborative government.

Goal 21: The Treasurer-Tax Collector’s Office, through the efficient collection of property taxes, provides funding to County departments and tax agencies to incorporate the County vision and goals into their services.

Performance Measure(s):

Measure

FY 2003-04
Actual

FY 2004-05
Projected

Number of funds managed

1,057

1,045

Dollar (1)/Percent (2) Growth in County Pool due to investments (3) County Pool 3 yield rate vs. Local Agency
Investment Fund
(LAIF): (4)

$67,503,2174
/2.84%

$57,500,000
/2.625%

-Pool 3

2.97%

2.50%

-LAIF

1.52%

2.00%

BACKGROUND:

Government code section 53646 requires a yearly presentation of the Investment Policy to the Board of Supervisors for review and approval of the Policy and any changes at a public meeting. The original version of the San Mateo County Pooled Accounts Investment Policy was initially approved in December 1984. The Treasurer annually updates the policy with the last approval by the Board of Supervisors on January 7, 2004, Resolution No. 066449.

DISCUSSION:

One of the two changes to the County Investment Policy, page 4 under Leverage, is the removal of the reference to the possibility of an approval of Security Lending, since such approval has been given. The second change was the removal of the words Savings and Loan Association on page 7 under Collateralized C.D.s, since Savings and Loan Associations no longer exist.
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 Treasurer will communicate the approved Policy to pool participants and receive their written acknowledgement of the current version of the Investment Policy

FISCAL IMPACT:

There is no Net County Cost.