Staff Report
PREPARED BY: STEPHEN CONWAY
FINANCE DIRECTOR
Reviewed by: Town Manager, Assistant Town Manager, and Town Attorney
110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
TOWN COUNCIL REPORT
MEETING DATE: 05/15/2018
ITEM NO: 4
ITEM NO: 11
DATE: MAY 8, 2018
TO: MAYOR AND TOWN COUNCIL
FROM: LAUREL PREVETTI, TOWN MANAGER
SUBJECT: ADOPT AN UPDATE TO THE TOWN’S INVESTMENT POLICY AS
RECOMMENDED BY THE COUNCIL FINANCE COMMITTEE
RECOMMENDATION:
Adopt an update to the Town’s Investment Policy as recommended by the Council Finance
Committee.
REMARKS:
The Town demonstrates sound fiscal administration by regularly reviewing and updating its
financial policies regarding budgeting, revenues, expenditures, fund balance reserves, capital
improvements, long term debt, and investments. The policies regarding budgeting, revenues,
expenditures, capital improvements, and long term debt were first incorporated into the Fiscal
Year (FY) 2004/05 budget document and have been updated as necessary at the time of the
annual budget adoption. The Town’s Investment Policy and Debt Policy were last updated in
May 2017 (Attachment 1). All of the Town’s financial policies follow Government Financial
Officers Association recommendations and meet Government Financial Officers Association
standards.
The Investment Policy establishes the investment scope, objectives, delegation of authority,
standards of prudence, reporting requirements, internal controls, eligible investments and
transactions, diversification requirements, risk tolerance, and safekeeping and custodial
procedures for the investment of the funds of the Town. All Town funds are invested and/or
will be invested in accordance with the Investment Policy and with applicable sections of the
California Government Code.
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SUBJECT: INVESTMENT POLICY
MAY 15, 2018
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REMARKS (cont’d):
Revisions are recommended to the Investment Policy on pages 3, 4, and 6 to further clarify
language on investment limits, Medium Term Notes, and other technical items (see Attachment
2).
At its April 3, 2017 meeting, the Council Finance Committee reviewed and discussed the
proposed update to the Town Investment Policy. The Committee acted to move the
recommendations forward to the Town Council for consideration at the May 15, 2018 Town
Council meeting.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
FISCAL IMPACT:
There is no fiscal impact from approving the recommended changes.
Attachments:
1. Existing Town Investment Policy 4-02
2. Proposed Town Investment Policy (red lined)