HomeMy WebLinkAbout2008-06-10 - AGENDA REPORTS - LOCAL AGENCY INVESTMENT FUND (2)CONSENT CALENDAR
DATE:
SUBJECT:
DEPARTMENT:
Agenda Item:
CITY OF SANTA CLARITA
REDEVELOPMENT AGENCY
AGENDA REPORT
City Manager Approval
Item to be presented by:
June 10, 2008
Carmen Magana
AUTHORIZE THE CITY OF SANTA CLARITA
REDEVELOPMENT AGENCY AUTHORITY TO INVEST
MONIES IN THE LOCAL AGENCY INVESTMENT FUND
Administrative Services
RECOMMENDED ACTION
Redevelopment Agency adopt the City of Santa Clarita's Redevelopment Agency's Resolution
authorizing the investment of monies in the Local Agency Investment Fund of the State of
California.
BACKGROUND
The City of Santa Clarita Redevelopment Agency (RDA) has obtained and will receive funding
to finance the costs of certain capital improvements, construction, and acquisition costs related
to redevelopment activities within the Newhall Redevelopment Project Area (Project Area). As
these funds become available, the RDA would like to invest these funds in an interest-bearing
account, until these monies are needed.
The Local Agency Investment Fund (LAIF) is a voluntary program created in 1977 by the State
of California and administered by the State Treasurer as an investment alternative for California's
local governments and special districts. The enabling legislation for the LAIF is Section 16429.1
et seq. of the California Government Code. This program offers local agencies the opportunity to
participate in a major investment portfolio which invests funds, using the investment expertise of
the State of California's Treasurer's Office investment staff. This in-house management team is
comprised of investment professionals who have each worked for the State Treasurer's Office for
an average of 20 years.
Adopted-JFno, KD 4 O F&
All securities purchased by LAIF are under the authority of Government Code Section 16430 and
16480.4. Eligible securities for investment include:
1. Bonds or interest-bearing notes or obligations of the United States, or those for which the
faith and credit of the United States are pledged for the payment of principal and interest;
2. Bonds or interest-bearing notes on obligations that are guaranted as to principal and interest
by a federal agency of the United States;
3. Bonds and notes of this state, or those for which that faith and credit of this state are pledged
for the payment of principal and interest;
4. Bonds or warrants, including, but not limited to, revenue warrants, of any county, city,
metropolitan water district, California water district, California water storage district,
irrigation district in the state, municipal utility district, or school district of this state;
5. Bonds, consolidated bonds, collateral trust debentures, consolidated debentures, or other
obligations issued by the federal land banks or federal intermediate credit banks established
under the Federal Farm Act, as amended, in debentures and consolidated debentures issued
by the Central Bank for Cooperatives and banks for cooperatives established under the Farm
Credit Act of 1933, as amended, in bonds or debentures of the Federal Home Loan Bank
Board established under the Federal Home Loan Bank Act, in stock, bonds, debentures and
other obligations of the Federal National Mortgage Association established under the
National Housing Act as amended and in the bonds of any federal home loan bank
established under that act, obligations of the Federal Home Loan Mortgage Corporation,, in
bonds, notes, and other obligations issued by the Tennessee Valley Authority under the
Tennessee Valley Authority Act as amended, and bonds, notes, and other obligations
guaranteed by the Commodity Credit Corporation for the export of California agricultural
products under the Commodity Credit Corporation Charter Act as amended;
6. Commercial paper of "prime" quality as defined by a nationally recognized organization that
rates these securities;
7. Bills of exchange or time drafts drawn on and accepted by a commercial bank, otherwise
known as bankers acceptances, which are eligible for purchase by the Federal Reserve
System;
8. Negotiable certificates of deposits issued by a federally or state -chartered bank or savings and
loan association, a state -licensed branch of a foreign bank, or a federally or state -chartered
credit union;
9. The portion of bank loans and obligations guaranteed by the United States Small Business
Administration or the United States Farmers Home Administration;
10. Bank loans and obligations guaranteed by the Export -Import Bank of the United States;
11. Student loan notes insured under the Guaranteed Student Loan Program established pursuant
to the Higher Education Act of 1965, as amended and eligible for resale to the Student Loan
Marketing Assocation established pursuant to Section 133 of the Education Amendments of
1972, as amended;
12. Obligations issued, assumed, or guaranteed by the International Bank for Reconstructiobn
and Development, the Inter -American Development Bank, the Asian Development Bank, the
African Development Bank, the International Finance Corporation, or the Government
Development Bank of Puerto Rico;
13. Bonds, debentures, and notes issued by corporations organized and operating within the
United States. Securities eligible for investment under this subdivision shall be within the
top three ratings of a nationally recognized rating service.
The investments are purchased at market and a market valuation is conducted monthly. Funds
are liquid and up to $10 million can be withdrawn daily without any advance notice. Yields are
very attactive and usually comparable to a money market -type investment.
The LAIF has grown from 293 participants and $468 million in 1977 to 2,619 participants and
$23.32 billion at the end of February 2008. Currently, both the City of Santa Clarita and the City
of Santa Clarita Public Financing Agency hold investments with LAIF.
Investment of these funds in LAIF are in compliance with the City of Santa Clarita's Investment
Policy.
ALTERNATIVE ACTIONS
Other actions as determined by the Redevelopment Agency.
FISCAL IMPACT
None by this action.
ATTACHMENTS
Resolution
RESOLUTION NO.
A RESOLUTION OF THE CITY OF SANTA CLARITA REDEVELOPMENT AGENCY OF
THE CITY OF SANTA CLARITA, CALIFORNIA, AUTHORIZING THE INVESTMENT OF
MONIES IN THE LOCAL AGENCY INVESTMENT FUND
WHEREAS, Pursuant to Chapter 730 of the statutes of 1976 Section 16429.1 was
added to the Californian Government Code to create a Local Agency Investment Fund in the
State Treasury for the deposit of money of a local agency for purposes of investment by the State
Treasurer; and
WHEREAS, the City Council does hereby find that the deposit and withdrawal of
money in the Local Agency Investment Fund in accordance with the provisions of Section
16429.1 of the Government Code for the purpose of investment as stated therein as in the best
interests of the City of Santa Clarita Redevelopment Agency.
NOW, THEREFORE, be it resolved that the City of Santa Clarita Redevelopment
Agency does hereby authorize the deposit and withdrawal of City of Santa Clarita
Redevelopment funds in the Local Agency Investment Fund in the State Treasury in accordance
with the provisions of Section 16429.1 of the Government Code for the purpose of investment as
stated therein, and verification by the State Treasurer's Office of all banking information
provided in that regard.
BE IT FURTHER RESOLVED, that the following City of Santa Clarita
Redevelopment Board officers or their successors in office shall be authorized to order the
deposit or withdrawal of monies in the Local Agency Investment Fund:
NAME TITLE SIGNATURE
Ken Pulskamp Executive Director
Darren Hernandez Treasurer
Ken Striplin Assistant Executive Director
Robert Kellar Agency Chair
SECTION 1. The City Clerk shall certify to the adoption of this Resolution.
PASSED, APPROVED AND ADOPTED this 10th day of June, 2008.
CHAIR
ATTEST:
SECRETARY
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SANTA CLARITA )
I, Sharon L. Dawson, CMC, Secretary of the City of Santa Clarita Redevelopment
Agency, do hereby certify that the foregoing Resolution was duly adopted by the Redevelopment
Agency of the City of Santa Clarita at a regular meeting thereof, held on the 10th day of
June, 2008, by the following vote:
AYES: AGENCY MEMBERS:
NOES: AGENCY MEMBERS:
ABSENT: AGENCY MEMBERS:
2
1
SECRETARY
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SANTA CLARITA )
CERTIFICATION OF
REDEVELOPMENT AGENCY RESOLUTION
I, Sharon L. Dawson, Secretary of the City of Santa Clarita Redevelopment Agency, do hereby
certify that this is a true and correct copy of the original Resolution No. RDA 08-, adopted by
the Redevelopment Agency of the City of Santa Clarita, California on June 10, 2008, which is
now on file in my office.
Witness my hand and seal of the Redevelopment Agency of the City of Santa Clarita, California,
this _ day of , 20_.
Sharon L. Dawson, CMC
Secretary
By
Susan Coffman
Deputy Secretary