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COUNTY OF SAN MATEO
Inter-Departmental Correspondence
San Mateo County Library
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DATE:
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May 24, 2010
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BOARD MEETING DATE:
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June 8, 2010
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SPECIAL NOTICE/HEARING:
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None
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VOTE REQUIRED:
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Four-fifths vote
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TO:
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Honorable Board of Supervisors
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FROM:
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Anne-Marie Despain, San Mateo County Library
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SUBJECT:
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Appropriations Transfer Request (ATR)
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RECOMMENDATION:
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Approve an Appropriation Transfer Request (ATR) in the amount of $2,000,000, transferring $2,000,000 of Library JPA Reserves to the State of California Local Agency Investment Fund (LAIF) to enhance interest earnings on the Library JPA’s behalf.
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BACKGROUND:
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Established in 1999, the San Mateo County Library (Library) is a Joint Powers Authority (JPA) comprised of the cities of Atherton, Belmont, Brisbane, East Palo Alto, Foster City, Half Moon Bay, Millbrae, Pacifica, Portola Valley, San Carlos, Woodside, and the unincorporated areas of the county. The Library JPA is governed by a Board consisting of representatives from each member entity. Oversight responsibility, the ability to conduct independent financial affairs, approve budgets, sign contracts, and otherwise influence operations and account for fiscal matters is exercised by the Library JPA.
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The JPA Agreement designates the County Treasurer as Treasurer for the Library JPA and maintains library assets in a separate fund. The revenue derived from taxes or other monies allocated to the County Free Library is deposited with the County Treasurer as required by state law and paid out for the purposes authorized in the Library JPA Agreement.
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The County Treasurer, as custodian, has since the inception of the San Mateo County Free Public Library and then later upon the establishment of the Library JPA, maintained a cash and investment pool which is invested to enhance interest earnings on the Library JPA’s behalf. However, the Library JPA may invest surplus funds outside the County Treasurer. The Library JPA Agreement specifically allows for this, as do state statutes related to County Free Libraries and Joint Powers Authorities.
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DISCUSSION:
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On September 14, 2009 the JPA Governing Board approved the Library JPA Investment Policy. The purpose of the policy is to provide guidance and protection to the San Mateo County Library Joint Powers Authority’s cash and investments and promote prudent financial stewardship.
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The San Mateo County Library JPA Investment Policy states that investments will be made in several instruments to lessen risk by diversifying the Library JPA’s portfolio. The Library JPA’s investment portfolio will include the following instruments:
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- The San Mateo County Investment Pool Funds
- The State of California Local Agency Investment Fund (LAIF)
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The LAIF is a voluntary program created by statute as an investment alternative for California’s local governments and special districts. The LAIF is part of the Pooled Money Investment Account (PMIA) run by the Treasurer of the State of California. On September 14, 2009, the Library JPA Governing Board also adopted a resolution authorizing participation in the LAIF.
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The ATR will enable the Library JPA to comply with the San Mateo County Library JPA Investment Policy and establish an account with the Local Agency Investment Fund
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The ATR contributes to the Shared Vision 2025 outcome of a Livable Community by demonstrating prudent financial stewardship through the diversification of surplus funds designed to enhance interest earnings on the Library JPA’s behalf.
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FISCAL IMPACT:
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The ATR of $2,000,000 will be transferring Library JPA Reserves of $2,000,000 to the State of California Local Agency Investment Fund to enhance interest earnings on the Library JPA’s behalf.
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