HomeMy Public PortalAbout03 March 8, 1995 Investment PoliciesAGENDA ITEM #5C
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
DATE: March 8, 1995
TO: Riverside County Transportation Commission
FROM: Dean Martin, Controller
THROUGH: Jack Reagan, Executive Director
SUBJECT: Investment Policies
The Commission's Administrative Code requires the Commission's Fiscal Officer to
deposit all Commission receipts in the Commission Treasury. The Code does not
define what the Commission Treasury is. In practice, the Commission has used the
County of Riverside Treasury as the depository for all Commission funds except bond
proceeds. This practice has developed over the years primarily as a result of the
Commission's role as administrator of the Local Transportation Funds (LTF). The LTF
monies by law must be deposited into and maintained by the County of Riverside.
All bond proceeds have been deposited per the terms of our bond indenture. To date
the investment instruments used for bond proceeds have been obligations of or
unconditionally guaranteed by the United States government, guaranteed investment
contracts or their equivalent with providers possessing ratings in the two highest
rating categories from Standard & Poors and Moodys, and shares of beneficial interest
in diversified management companies (i.e., pools such as CAMP).
Staff recommends that the above practices be adopted as Commission policy. All
Commission funds from sources other than long term debt issuances are to be
deposited with the County of Riverside Treasury. Staff believes this to be prudent
for a number of reasons. First, the County has staff whose sole responsibility is to
invest surplus cash, and the current county treasurer has many years of experience
with a proven track record based on conservative and prudent practices. Second, the
County's pool has been recently reviewed by the rating agencies and found to contain
minimum risks with no leverage. Third, the County is now providing a monthly listing
of its portfolio and its market value. Finally, there is legislation under consideration at
the state level that will require more stringent oversight of county pools.
Bond funds should continue to be invested per the terms of the bond indentures with
the additional requirement that any investment used must be reviewed and approved
by the Commission. Any subsequent changes would also require Commission review
and approval.
F:IUSERSIPREPRINTIMAR.951INVSTPOL.DM
Page 2
Staff further recommends that the Commission designate the Budget and Finance
Committee as the body charged with investment oversight, and grant that committee
the authority to authorize investment changes if market conditions and timing require
a decision prior to a regularly scheduled Commission meeting. Any decision made
would be communicated to the Commission at its next meeting. Any investment
decisions on funds held in trust(i.e., Coachella Valley regional arterial funds) should
be fully discussed with and disclosed to the affected agency.
BUDGET/FINANCE AND STAFF RECOMMENDATION:
That the Commission's investment practices should be adopted as policy as follows:
1) All monies from sources other than long term debt proceeds should be
deposited with the County of Riverside Treasury. A copy of the County's
portfolio and its market value be included in the Commission's monthly agenda
on the consent calendar.
2) Long term debt proceeds must be deposited per the terms of the indenture and
must be reviewed and approved by the Commission.
3) Appoint the Budget and Finance Committee to act on behalf of the Commission
as an investment oversight body. All actions taken by this body must be
reported to the full Commission.
4) Appoint the Executive Director as the Commission's Fiscal Officer with the
authority to delegate the responsibilities of the Fiscal Officer to the Controller.
:jw
F:\USERS\PREPRINT\MAR.951INVSTPOL.DM