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COUNTY OF SAN MATEO
Inter-Departmental Correspondence
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Tax Collector-Treasurer-Revenue Services
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DATE:
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January 24, 2007
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BOARD MEETING DATE:
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February 13, 2007
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SPECIAL NOTICE/HEARING:
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None
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VOTE REQUIRED:
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Majority
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TO:
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Honorable Board of Supervisors
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FROM:
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Lee Buffington, Tax Collector-Treasurer
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SUBJECT:
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Amend Resolution No. 068479 Approving the Revised San Mateo County Investment Policy , January 2007
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RECOMMENDATION:
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Adopt a Resolution amending Resolution No. 068479 approving the San Mateo County Investment Policy, January, 2007.
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VISION ALIGNMENT:
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Commitment: Responsive, effective and collaborative government.
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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.
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BACKGROUND:
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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 last update was approved by the Board of Supervisors on January 9, 2007, Resolution No. 068479. On January 22, 2007, the Investment Advisory Committee agreed to re-submit the Policy with two additional changes.
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DISCUSSION:
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On Monday, January 22, 2007, a full quorum of the County Investment Committee met and discussed the mechanics of the County Investment Policy vs. today’s market resulting in two recommended changes. In order to be uniform in our approach to rating agencies, Fitch should be included in any listing of rating agencies who evaluate commercial paper/floating rate notes. These changes appear as additions (F1) on page 5 next to Bankers acceptances and on page 6 next to Commercial paper/Floating rate notes. On page 7, under the discussion of Banker’s Acceptances and further down the page under Commercial Paper, the first sentence in each case was changed to read, “must be rated A1/P1/F1 by two of the three nationally recognized rating services.” The last change was to increase the percent of the fund per issuer from 5% to 10% for negotiable certificates of deposit on page 6. This was done to take advantage of the strong firms in the business and to up-date the policy and conform to current state law.
All changes are in compliance with Government Code section 53601.
The overriding objective of the Investment Policy is the safety of the funds. Liquidity and yield are secondary objectives.
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FISCAL IMPACT:
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There is no net County cost.
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