COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Treasurer/Tax Collector

DATE:

December 15, 2005

BOARD MEETING DATE:

January 10, 2006

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

RECOMMENDATION:

Adopt a resolution approving the revised San Mateo County Investment Policy January 2006, submitted to the County Investment Advisory Committee and approved in December 2005.

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 2004-05
Actual

FY 2005-06
Projected

Number of funds managed

1,045

1042

Dollar (a) Percent (b)

Growth in County Pool due to investments (c)

County Pool 3 yield rate vs. LAIF (Local Agency

Investment Fund) (d)

Pool 3

LAIF

(a) Gross investment/

security earnings

(b) Gross earnings rate

(c) Assuming the Pool remains at $2 billion or higher

d) Percentages under Pool 3 yield rate vs. LAIF are net rates (after fees and charges)

$57,500,000/

2.625%

2.50%

2.00%

$57,500,000/

3.00%

2.87%

2.50%

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. The Treasurer updates the policy annually and this update is pursuant to the last approval by the Board of Supervisors dated January 4, 2005.

DISCUSSION:

Technical clarifications, for the benefit of the pool participants, are the only changes to the County Investment Policy 2006. 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.