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HomeMy WebLinkAboutCC RESO 15,8181 1 RESOLUTION NO. 15,818 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING DEPOSIT OF EXCESS FUNDS IN THE COUNTY TREASURY FOR INVESTMENT PURPOSES WHEREAS, Government Code Section 53684 was amended to allow local public agencies to deposit excess money in the County Treasury for investment purposes; and WHEREAS, Government Code Section 53684 is not operative in any county until the Board of Supervisors of the County, by majority vote, adopts a resolution making the section operative in the County; and WHEREAS, on March 24, 1987, the Board of Supervisors of the County of San Diego, State of California passed and adopted a resolution making Government Code Section 53684 operative in the County of San Diego; and WHEREAS, the City Council does hereby find that the deposit and withdrawal of money in the County Treasury in accordance with the provisions of the Government Code Section 53684 for the purposes of investment as stated therein are in the best interests of the City of National City. NOW THEREFORE, BE IT RESOLVED that the City Council does hereby authorize the deposit and withdrawal of City of National City monies in the County Treasury in accordance with the provisions of Government Code Section 53684 for the purpose of investment as stated therein. i i BE IT FURTHER RESOLVED that the following City officers or their successors in office shall be authorized to order the deposit or withdrawal of monies in the County Treasury: Delbert Redding, City Treasurer Alex Caloza, Director of Finance Romeo Vallar, Accountant PASSED and ADOPTED this 6th day of December, 1988. ATTEST: Ct U - l .tit/ �c.0 f�i1 i Lo-i Anne Peoples, City Clerk APPROVED AS TO FORM: Wik ter George H. Eiser, III, City Attorney George H. Waters, Mayor TREASURER -TAX COLLECTOR COUNTY ADMINISTRATION CENTER • 1600 PACIFIC HIGHWAY ROOM 101 SAN DIEGO, CALIFORNIA 92 1 01 -2479 • (6 1 9) 531 -52 1 1 Delbert Redding City Treasurer City of National City 1243 National City Blvd. National City, CA 92050 Dear Mr. Redding, PAUL BOLAND TREASURER TAX COLLECTOR RICHARD H. JARVIS CHIEF DEPUTY TREASURER ROB R CASTETTER INVESTMENT MANAGER November 9, 1988 Government code section 53684 allows local agencies, upon the adoption of a resolution by the governing body and with the consent of the County Treasurer, to deposit excess funds in the county treasury for the purpose of investment by the County Treasurer. Several local agencies have already taken advantage of this opportunity and have placed monies in the County Treasurer's pool of funds. Although participation is strictly voluntary, your agency may wish to consider placing excess funds in the county pool for investment purposes. The benefit derived by the local agency participating in the county pool ay equate to higher yields than what is currently being attained by ach local agency individually investing smaller dollar amounts. ET The County Treasurer's pool is well in excess of one billion dollars, thus b receiving the higher rates of return yielded by the larger denominationW securities. The investment staff is constantly in contact with the broad aspects of the financial market and can afford local agencies the investment proficiency, time and resources that may not be readily available otherwise J There is no maximum amount of surplus dollars that the local agency may deposit in the pool and a minimum of only $5,000 is required per transaction. The enclosed policy and guidelines set forth the procedures and restrictions for participation by local agencies in the County Treasurer's pool. If there are questions or concerns that are not addressed within these guidelines, contact Rob Castetter or Carol Miller at (619) 531-5211. Sincerely, sul Boland Treasurer/Tax Collector COUNTY OF BAN DIEGO TREASURER -TAX COLLECTOR COUNTY ADMINISTRATION CENTER • 1600 PACIFIC HIGHWAY ROOM 101 SAN DIEGO. CALIFORNIA 92 1 01 -2479 • (61 9) 531 -521 1 COUNTY TREASURER'S POLICY FOR LOCAL AGENCIES EXCESEI FUNDS PER GOVERNMENT CODE 53684 OVERVIEW PAUL •OLAND TREASURER TAX COLLECTOR RICHARD H. JARVIS CHIEF DEPUTY TREASURER ROB R. CASTETTER INVESTMENT MANAGER Government code section 53684 permits a local agency, upon adoption of a resolution by the governing body of the agency, the option of depositing excess funds in the county treasury for the purpose of investment by the County Treasurer. This code was made operative in San Diego county in March of 1987. A separate trust fund number is assigned to the local agency depositing funds in the county treasury. The combined funds of all participants depositing funds in the county treasury will be referred to as the pool. The monies in the pool will be invested collectively and individual participant's funds will not be isolated or invested separately. The investment policies and practices of the County Treasurer are based on state law and prudent money management. The policies of the Treasurer's investment office have three primary goals: 1) To assure compliance with all Federal, State, and local laws governing the investment of monies under the control of the County Treasurer. 2) To protect the principal monies entrusted to the County Treasurer. 3) To generate the maximum amount of investment income within the parameters of prudent risk management. The local agency is responsible for determining its own liquidity needs and advising the Treasurer's investment office of deposits to and withdrawals from the fund. The Treasurer's office is responsible for investing monies, safekeeping of securities, and preparing monthly reports of the outstanding investments in the county general pool. The County Auditor's office is responsible for apportioning earnings to the pool participants and generating apportionment journals. EARNINGS APPORTIONMENT The interest or other increment earned by each participant is proportionate to the average daily balance of the amounts deposited by ae local agency. Prior to distribution, actual investment expense icurred by the county will be deducted from the earnings of the local agency. Investment expenses will be proportionate to the average daily balance of the amounts deposited by the local agency. COUNTY OF SAN DIEGO The apportionment rate is set approximately two weeks after each calendar quarter end. The earnings are usually credited in two Increments, with the first distribution occuring during the second month after quarter end. The second distribution will be made the following month which is the last month of the new quarter. The incremental amounts that can be distributed are based on the balance in the Treasurer's apportionment fund. Generally sixty percent or more of the quarterly earnings will be distributed during the first increment and the balance will be distributed in the second increment. Apportionments are not paid out by warrants; all earnings or other increment are reinvested in the pool. REPORTING MECHANISM At the end of every calendar month the participants of the pool will receive from the County Treasurer's office a report of the outstanding investments in the county general pool. At the time of interest distributions, the participants will receive a copy of the County Auditor's journal that lists the amount of the apportionment, the apportionment rate and the percent distribution of that increment. GETTING STARTED Before any deposits can be accepted by the County Treasurer, the local agency must perform the following preliminary actions. 1) Provide a resolution adopted by the board or governing body that authorizes the local agency to deposit excess funds in the county treasury for the purpose of investment by the County Treasurer. The resolution must: a. be signed b. indicate the resolution number and date passed by the board or governing body c. indicate the persons authorized to initiate deposits to and instruct withdrawals from the pool d. bear the seal of the local agency, if the local agency has a seal 2) Provide wire transfer instructions for cash withdrawals from the pool. All deposits and withdrawals will be by Fed funds. 3) Establish a trust fund through the County Auditor and Controller's General Accounting division. Contact Barbara Lentz or Jack Morien for further detai3.s and instructions at (619) 531-5339. 4) Provide the address of the local agency, the primary contact and phone number. GENERAL GUIDELINES i) To deposit to or withdraw from the pool, contact Carol Miller or Rob Castetter in the Investment office at (619) 531-5211. 1) b (five) days notice is required to withdraw $2,500,000 or less of the local agency's funds on deposit with the pool. 2) 30 (thirty) days notice is required to withdraw more than $2,500,000 of the local agency's funds on deposit with the pool. 3) 1 (one) day notice is required to deposit funds into the pool. Wiring instructions to the pool are: FICAL LA ABA #122000218 SAN DIEGO MAIN BRANCH ACCOUNT OF SAN DIEGO COUNTY ACCOUNT #113-898002 4) 8 (eight) transactions maximum allowed per month. 5) Minimum deposit and withdrawal amount of $5,000 is required. 6) Maximum deposit amount is determined by the surplus funds available at the local agency. 7) Local agencies may not utilize their account as an operating fund, thus no payments will be made from the fund to any payee other than the agency depositing the funds. 5368-1. Local agencies; excess funds; investment by county treasurer (a) Unless otherwise provided by law, if the treasurer of any local agenr}y, or other official responsible for the funds of the local agency, determines that the local agency has excess funds which are not required for immediate use, the treasurer or other official may, upon the ,I(lr,ption of a resolution by the legislative or governing body of the local agency authorizing the investment of funds pursuant to this section and with the consent of the county treasurer, deposit the excess rinds in the county treasury for the purpose of investment by the county treasurer pursuant to Section 53601 or 53635. (b) The county treasurer shall, quarterly, apportion any interest or other increment derived Irma the investment of funds pursuant to this section in an amount proportionate to the average d:i I', balance of the amounts deposited by the local agency and district. Prior to distributing that interest or increment, the county treasurer may deduct the actual cost; incurred by the.county in administering this section in proportion to the average daily balance of the , amounts deposited by the local agency. (c) In conjunction with the monthly report required to be prepared pursuant to subdivision (h) of Section 53646, the county treasurer shall provide the information described in that subdivision to the treasurer or other official responsible for the funds of any local agency which has funds on depoFit. in the county treasury and that information shall, except as{otherwise provided in paragraph (4) of subdivision (b) of Section 53646, be included by the treasurer or other official in a monthly report to the legislative or governing body of the local agency. • (d) The treasurer or other official responsible for the.'funds of the local agency may withdraw the. nds of the local agency at any time but shall give the countytreasurer 30 days' written notice of nrs or her intent to withdraw the funds. • • (e) Any moneys deposited in the county treasury for investment pursuant to this section are not subject to impoundment or seizure by any county official or agency while the funds are so deposited. (f) This section is not operative in any county until the board of supervisor:, of the county, b,: majority vote, adopts a resolution making this section operative in the county. (g) It is the intent of the Legislature in enacting this section to provide an alternative procedure t') Section 51301 for local agencies to deposit money in the county treasury for invest.rnent purposes. Nothing in this section shali, therefore, be construed as a limitation on the authority of a county and a. city to contract for the county. treasurer to perform. treasury functions for a city pursuant to Section 51301. . (Added by Stats.1986, c..582, § 1, urgency, eff. Aug. 26, 19R6.) :Isfb. 11 Thanking Treasurer -Tax Collector for devising program enabling public agencies to invest funds, ON MOTION of Supervisor Williams, seconded by Supervisor Bailey, the following resolution is adopted: WHEREAS, Government Code section 53684 was recently amended to allow local public agencies to deposit excess money in the County Treasury for investment purposes; and WHEREAS, Government Code section 53684 is not operative in any County until the'Board of Supervisors of the County, by majority vote, adopts a resolution making the section operative in the County; and WHEREAS, the County will incur no additional cost of implementing the amended Government Code section 53684; and WHEREAS, it is in the public interest to maximize the earnings on excess cash on behalf of local public agencies; and WHEREAS, the County in its regional role should assist and aid other local public agencies; NOW THEREFORE IT IS RESOLVED AND ORDERED that, Government Code section 53684 is hereby made operative in the County of San Diego authorizing local public agencies to deposit excess funds with the County Treasurer for investment purposes. Passed and adopted by the Board of Supervisors of the County of San Diego, State of California, this 24th day of March, 1987, by the following vote: AYES: NOES: ABSENT: No. 11 3/24 / 87 ek Supervisors Bilbray, Bailey, Golding, Williams, MacDonald Supervisors None Superv' ^ nir,no