Agenda Date: 11/19/2019
Subject:
Title
Resolution 63-2019: Amending the Investment Policy of the City of Littleton
Body
Prepared by:
Tiffany Hooten, Finance Director
PURPOSE:
Does city council support a resolution amending the Investment Policy?
PRESENTATIONS:
Staff Presenter(s): Tiffany Hooten, Finance Director
Additional Presenter(s): Earlene Rich, Deputy Finance Director
SUMMARY:
The city's investment policy was adopted in 2008. The last amendment was in 2013. Since that time, the investment environment has changed. Staff has reviewed the policy for proposed amendments which include the most recent audit recommendations.
PRIOR ACTIONS OR DISCUSSIONS:
The investment policy was adopted in 2008 and amended in 2013. Staff presented revisions to the current policy at the November 12, 2019 study session. As a result of the study session, an additional amendment to include city council review in even years was added in the last section of the policy.
ANALYSIS:
Staff Analysis
It is a best practice to review the city's investment policy periodically and recommend amendments to council. It has been six years since the policy was amended. Revising the policy allows more flexibility in investments in order to yield more interest in the current economy and also addresses the audit comment from 2018 regarding the limitations on concentration of credit risk of investments.
The red-lined version of the current policy is attached as well as a final version with the proposed amendments.
Council Goal, Objective, and/or Guiding Principle
These amendments support Goal 2: Financial Sustainability by providing investment objectives of safety, liquidity, and return on investments.
Fiscal Impacts
With additional investment opportunities, possible improved investment yield may be achieved while maintaining a conservative investment portfolio.
Alternatives
1 - Approve the resolution adopting the investment policy amendments recommended by staff and the audit.
2 - Do not ...
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