Investment Policy Gets Council Approval
With minor changes to reflect recent shifts in state law, the City Council has approved the city’s investment policy for another year.
The policy governs how idle city funds are to be invested. Each year the council must review and approve the investment guidelines.
City Finance Director Olivia Silverio said that 98% of the city’s current idle funds are invested in the state’s Local Agency Investment Fund. She said the other 2% are in federally guaranteed investments.
State law allows cities to invest up to $20 million each in the Local Agency Investment Fund. City Manager Daniel E. Keen said La Palma’s total investment is about $17 million.
“We have about $12.5 million in city money and about $4.5 million in Community Development Commission money that is invested,” Keen said.
La Palma’s current policy does not permit any money to be kept in the Orange County treasury or its investments. The city, like most in the county, lost some of its investment money in 1994 when the county declared bankruptcy. Keen said the city so far has recovered about 89% of its money from the county. The missing 11% represents just under $1 million, he said.
The council approved the 1996-97 investment policy with a unanimous vote.
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