Westminster City Council/Successor Agency to the Westminster Redevelopment Agency
SUBJECT
Title
Resolution Amending the Statement of Investment Policy.
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From: Erin Backs, Finance Director
Requested by: Administration
Prepared by: Erin Backs, Finance Director
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RECOMMENDED ACTION
Recommendation
Adopt a Resolution entitled, "A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF WESTMINSTER, CALIFORNIA, AMENDING THE STATEMENT OF INVESTMENT POLICY."
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BACKGROUND
Staff recently reviewed the City's Investment Policy which was approved by the City Council on December 9, 2024. The policy calls for an annual review by the Investment Committee to ensure the policy's consistency with the global objective of preservation of investment principal, sufficient liquidity, rate of return, and its relevance to current laws and financial trends. As defined by the policy, the Investment Committee consists of the City Manager, City Treasurer (Finance Director) and Assistant Finance Director, or other City Manager designee which currently is the Assistant City Manager. A thorough review was conducted to ensure compliance with changes in State law and/or other regulations governing investment of public funds. The policy also calls for an annual review by the City Council at a public meeting.
The City's Investment Policy guides the investment of over $130 million in City and Successor Agency funds. California Government Code Section 53600 et seq. sets specific rules for how public agencies can invest their idle cash and limits the types of investment vehicles public agencies can utilize.
The policy was reviewed by the City' s external investment advisor, Chandler Asset Management, who recommended the City adopt the following changes to more clearly align the City policy with state code:
• State of California Local Agency Investment Fund (LAIF) was moved under the Local Government Pools section.
• Changed the name of Certificates of Deposit Placement Services (CDARS) to Placement Service Deposits.
o Certificate of Deposit Account Registry Service (CDARS) changed its name to IntraFi Network Deposits. It refers to a specific placement service. The City's investment policy was updated to reference Placement Service Deposits, in general, to allow placement services from other entities.
• Added Joint Powers Authorities (JPAs) as additional Local Government Investment Pools option.
o Many liquidity pools, such as CalTrust, CAMP, and CalFit, are structured as JPAs. Shares of beneficial interest issued by a JPA are permitted investments under California Government Code. By adding JPAs to the City's investment policy, the City will expand its options for short term liquidity pools beyond LAIF.
• Added Commercial Paper maximum maturity of 397 days effective January 1, 2026.
o SB 595 was signed into California law on October 3 and becomes effective January 1, 2026. This bill extends the maximum maturity for eligible commercial paper from 270 days to 397 days.
FISCAL IMPACT
The recommended changes to the investment policy result in no fiscal impact.
LEGAL REVIEW
The City Attorney’s Office has reviewed as to form.
CONCLUSION
The City investment policy requires an annual review. The recommendations more clearly align the city policy with state code.
ATTACHMENTS
1. Draft Resolution Updating the City’s Investment Policy
2. Proposed Investment Policy - Clean Version
3. Proposed Investment Policy - Redline version
REVIEWED BY
Erin Backs, Finance Director
City Attorney’s Office
Christine Cordon, City Manager