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Finance Committee recommends council adopt minor investment-policy amendments to align with state law
Summary
Staff proposed technical amendments to Tracy's investment policy to align with California Government Code and AB 2618, consolidate pool language, clarify eligible institutions, and prohibit forward-settlement investments beyond 45 days; the committee voted to recommend council adoption.
Sarah Castro, Tracy's director of finance, told the Finance Committee that staff and investment adviser Chandler Asset Management reviewed the city's investment policy and proposed mainly clarifying changes to maintain legal compliance and reduce risk. "They're mostly just recommendations to improve clarity and alignment," Castro said.
Key changes Castro summarized include revising the list of authorized financial institutions to match government code, distinguishing municipal securities by in-state or out-of-state definitions, consolidating local government investment pool language into a single section, renaming CDARS to align with AB 2618, and adding a restriction that prohibits investments with forward settlement dates exceeding 45 days. "This change will also align with government code, and it protects the city from any undue investment risk," Castro said.
Staff recommended the Finance Committee recommend that City Council adopt a resolution approving the amendments. A committee member moved the recommendation, the motion was seconded, and the committee recorded affirmative votes from the chair, co-chair and another member.
Castro said the changes are intended to keep the policy compliant and transparent rather than to expand investment authority. The committee voted to forward the recommendation to council for formal adoption.
