Title
Discussion of Recommended Updates to City's Investment Policy
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Discuss recommended updates to City's Investment Policy and forward to City Council for Approval.
Report
Issue:
Whether to discuss recommended updates to the City's Investment Policy and forward to City Council
Staff Contact:
Nanci Lien, Fiscal Services Director, 360.756.8465
Presenter(s):
Nanci Lien, Fiscal Services Director, Administrative Services Department
Dave Westcott, Senior Portfolio Advisor, Government Portfolio Advisors
Background and Analysis:
The City Investment Policy provides direction on how City funds are invested. The Policy requires a review by Finance Committee every two years, and was last updated in 2017.
The City's investment portfolio is managed by Fiscal Services, in partnership with an investment consultant, Government Portfolio Advisors (GPA). The State statute regarding investments has been changed, and the City's policy needs to be updated to reflect those changes. A representative from the City's investment consultant will provide information on:
* City's current Investment Policy
* Recommended policy changes based on State statue
* Explanation of corporate vs commercial paper
* Socially responsible investing
* Return on investment over last three years
Recommended changes to the existing Policy (see attached) are as follows:
* Section 5.2 - New language is added to the "Prudence" section as recommended during Washington Public Treasurer Association review.
* Sections 8.2 and 9.1- per new State statute on Commercial paper, updated description is included in Section 8.2 (Suitable Investments) and updated issuer allocation is included in Table of Constraints in Section 9.1 Diversification, changing from 5% to 3%.
Please note that while the policy does identify commercial paper, as required by State statute, the investment advisor follows the City...
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