Title
Treasurer-Tax Collector recommending the Board approve additional deposit alternatives as an investment category and delete the Certificate of Deposit Account Registry Service (CDARS) and Federally Insured Cash Account (FICA) as investment categories in the "Investments - Maximum Percentage/Portfolio" section of the El Dorado County Investment Policy.
Body
Fiscal Impact/Change to Net County Cost
None
Background
The language contained in Government Code §53601.8 was changed. Previously the code authorized a local agency to invest in certificates of deposit provided that they do not exceed 30% of the agency's funds that may be invested for this purpose, as specified.
Assembly Bill 279, until January 1, 2017, removes the term "Certificates of Deposit" and instead authorize a local agency to invest in additional deposit alternatives, as specified in the law, and limit the amount of its funds that an agency may place with any one private sector entity that assists in the placement of deposits with one or more commercial banks, savings banks, savings and loan associations, or credit unions that are located in the United States.
Assembly Bill 279 was signed by the Governor and filed with the Secretary of State on 9/6/2013.
The County of El Dorado Investment Policy is being changed to reflect the change in the Government Code.
CDARS and FICA sections are being deleted because these sections are covered by the changes in §53601.8.
Reason for Recommendation
Bill AB 279 passed by the Assembly and Senate, signed by the Governor and filed with the Secretary of State.
Action(s) to be taken following Board approval
None
Contact
Ginnie Hibert
Concurrences
N/A