FROM: DENNIS McLEAN, DIRECTOR OF FINANCE AND INFORMATION TECHNOLOGY

DATE: JUNE 17, 2003

SUBJECT: CITY INVESTMENT POLICY – FY 2002-2003

Staff Coordinator: Gary Gyves, Senior Administrative Analyst

RECOMMENDATION:Adopt the FY 2002-2003 investment policy for the City of Rancho Palos Verdes.

BACKGROUND:

State law requires that public agencies adopt an investment policy annually. No significant changes to California law have occurred during FY 2002-2003 that would require modification to the City's investment policy. As a result, the attached policy is essentially identical to the investment policy adopted for FY 2002-2003. The policy continues to emphasize the practice of using the State's Local Agency Investment Fund (LAIF) for the City's investments. As criteria for selection of investments the policy maintains the use of the following factors (listed in order of priority): safety, liquidity, and yield. The policy continues to require the City Treasurer to submit a monthly report to the City Manager and City Council detailing the City's investment activity and policy compliance. Each year, as a part of the City's annual independent audit, there is a review of the City's Investment Policy regarding compliance with the Policy guidelines. These review procedures will be performed in conjunction with the internal control testing applied to City policies. Any discrepancies will be reported directly to the City Council in the auditor’s management letter issued upon the completion of their examination.Respectfully submitted,

Dennis McLean

Director of Finance and Information Technology/City TreasurerReviewed:

Les Evans

City Manager