HomeMy WebLinkAbout _ 4.7(a)--Authorize opening an Investment Account with California CLASS � � �' � � �
� � � ' � �' � � ' � ` CITY OF REDDING
REPORT TO THE CITY COUNCIL
MEETING DATE: October l,2024 FROM: Greg Robinett, Director of
ITElVI NO. 4.'7(a) Finance/City Treasurer
***APPROVED BY***
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grobinett@cityofredding.org btippin@cityofredding.org
SUBJECT: 4.7(a)--Authorize opening an Invest�nent Account with California CLASS
Recommendation
Adopt Resolution to authorize and approve the following:
(1) Authorize the City Treasurer to open a Pooled Investment Account with California
Cooperative Liquid Assets Securities System;
(2) Designate the following authorized account signers: Greg Robinett, Director of
Finance/City Treasurer; Bailey Worley, Finance Officer; Tammy Mann, Finance Officer;
and Tessa Wayda, Management Analyst; and
(3) Authorize the City Manager, or designee, to appoint a new signer to replace an authorized
signer who has either left employment with the City of Redding or their job
responsibilities have changed.
Fiscal Impact
There is no fiscal impact to the City of Redding's (City) General Fund. The funds would accrue
interest, which would add to the General Fund.
Alte�native Action
The City Council (Council) cou]d decline to adopt the resolution authorizing the City Treasurer
to open an account with California Cooperative Liquid Assets Securities System(CLASS).
Background/Analysis
In accordance with City Council Investment Policy 408, "The City Treasurer shall strive to
maintain the level of investment of all idle funds as near as 100% as possible. Concurrently, the
City Treasurer sha11 layer investment maturities to meet anticipated cash needs and attempt to
maximize investment yields".
Report to Redding City Council September 25, 2024
Re: 4.�(a)--Authorize opening an InvestmentAccount with California CLASS Page 2
California CLASS is a pooled investment option that was created by California public agencies
via a joint exercise of powers agreement in 2022. CLASS is a permitted investment for all
California public agencies under California Government Code 6500 and 6509.7. All investments
are made in accordance with California Government Code section 53601. CLASS is a pooled
cash, short-term reserve portfolio that provides public agencies safety, same day liquidity,
competitive yield, and interest paid daily.
California CLASS wi11 afford the City the opportunity to invest idle funds on a short-term basis,
if needed, in order to maintain liquidity,meet cash needs, and maximize return. As of the writing
of the staff report, California CLASS has a current 7-day yield of 5.35%. Currently the City
utilizes Local Agency Investment Funds (LAIF) and California Asset Management Program
(CAIVIP). As of the writing of this report, LAIF is earning 4.6% and CAMP is earning 5.35%.
Currently, the City is holding $78,078,416 with CAMP and $1,070,366 with LAIF. Adding
CLASS would give the City another short-term cash management fund allowing the City to
maintain more liquidity if necessary and/or choose the option with the highest rate of return.
Environmental Review
This is not a project defined under the California Environmental Quality Act, and no further
action is required.
Council Prior�ity/City ManageN Goals
• Government of the 21St Century — `Be relevant and proactive to the opportunities and
challenges of today's residents and workforce. Anticipate the future to make better
decisions today."
Attachments
^Resolution
RESOLUTION NO. 2024-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
AUTHORIZING THE CITY TREASURER TO OPEN AN INVESTMENT
ACCOUNT WITH CALIFORNIA COOPERATIVE LIQUID ASSETS
SECURITIES SYSTEM (CLASS)
WHEREAS, the City Council, through Council Policy No. 408, desires to maintain the
1eve1 of investment of all idle funds as near 100% as possible, while concurrently layering
investment maturities to meet anticipated cash needs and attempt to maximize investment yields;
and
WHEREAS, California CLASS is a pooled investment option that serves all California
Public Agencies; and
WHEREAS, California CLASS offers a short-term investment pool that provides same-
day liquidity to meet cash needs, as well as competitive yields to maximize return; and
WHEREAS,the City Treasurer is responsible for managing the financial operations of the
City, including the implementation, management, and designation of authorized signers on
necessary accounts;
NOW, THEREFORE, THE CITY OF REDDING DOES HEREBY RESOLVE
THAT:
1. The aforementioned recitals are true and correct.
2. The City Treasurer is hereby authorized to open an account with California CLASS.
3. The following individuals are designated as authorized signers on this account held with
Square:
➢ Greg Robinett, Director of Finance/City Treasurer
➢ Bailey Worley, Finance Officer
➢ Tammy Mann, Finance Officer
➢ Tessa Wayda, Management Analyst
4. Should one of the autharized signers leave the City's employment or their job
responsibilities change to no longer necessitate being an authorized signer, the City of
Redding City Manager, or his designee, is hereby designated and authorized to appoint a
new signer to replace said individual.
I HEREBY CERTIFY that the foregoing resolution was introduced and adopted at a
regular meeting of the City Council of the City of Redding on this lst day of October, 2024, by
the following vote:
Al'ES: CITY COUNCIL MElVIBERS:
NOES: CITY COUNCIL MEMBERS:
ABSENT: CITY COUNCIL MEMBERS:
ABSTAIN: CITY COUNCIL MElV1BERS:
TENESSA AUDETTE, Mayor
ATTEST: APPROVED AS TO FORM:
SHARI.,ENE TIPTON, City Clerk CHRTSTIAN M. CURTIS, City Attorney