The City adopted its 2020 Annual Investment Policy on June 23, 2020 through Resolution No. 9640-20.  The 2020 Policy incorporated several major changes to align with best practices.  To ensure our Policy meets the highest industry standard, staff sought provisional guidance from CMTA.

CMTA provides assistance in developing and/or improving existing investment policies to California’s public sector agencies and districts through its Investment Policy Certification Program.

The benefits of having the Investment Policy Certified by the CMTA include the following:

• Trust, confidence and verification to our City Council and our community that our Policy has been reviewed and certified by a professional organization within California;
•  Improved transparency;
•  Ensure due diligence was performed on the Policy; and 
•  Satisfy auditing requirements.

Reception of the CMTA Investment Policy Certification is a benchmarking effort the Department is making on important financial policies. In order to meet CMTA Certification requirements, minor changes are necessary, including:

•  Section 5 – Delegation of Authority

Added that the delegation of authority is to be reviewed annually by the City Council, as well as the requirements for broker/dealers who desire to do business with the City.

•  Section 8 – Investment Pools/Mutual Funds

Added a subsection on due diligence requirements for investing in pools/mutual funds.

•  Section 10 – Safekeeping

Added the requirement for an annual audit.

•  Section 18 – Investment Policy

Clarified that the Policy is to be adopted by resolution and any changes made thereafter must be approved by the City Council.

A redline version of Policy is attached to this staff report tracking all changes made.

There is no fiscal impact to adopt the City of Garden Grove Investment Policy - 2020 Revised.

The fee to apply for CMTA Investment Policy Certification is $175.  This amount will be paid from the Finance Department's existing operating budget.

It is recommended that the City Council:

• Adopt the attached resolution approving the City of Garden Grove Investment Policy - 2020 Revised.