CLARK COUNTY BOARD OF COMMISSIONERS
AGENDA ITEM
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Petitioner: |
J. Ken Diaz, County Treasurer |
Recommendation:
title
Approve and adopt an update the Clark County Investment Policy. (For possible action)
body
FISCAL IMPACT:
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Fund #: |
6700.000 |
Fund Name: |
CC Inv. Pool/SIDS Loans |
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Fund Center: |
1030212010 |
Funded PGM/Grant: |
N/A |
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Amount: |
N/A |
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Description: |
Clark County Investment Policy |
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Additional Comments: |
N/A |
BACKGROUND:
The Clark County Investment Policy was last approved and adopted in July 2004. Due to changes in the Nevada Revised Statutes (NRS) and to incorporate the Government Investments Officers Association (GIOA) best practices with the intention to obtain the GIOA Investment Policy Certification, the Treasurer recommends the Clark County Investment Policy be updated to reflect those changes and other changes that will enhance the performance of the investment portfolio. The material changes to the Investment Policy are as follows:
1. Addition and/or modification to various sections to incorporate GIOA best practices;
2. Addition of an Investment Program Oversight Committee (IPOC), which consists of the County Chief Information Officer, County Treasurer, and County Comptroller, and minimum required IPOC meetings per fiscal year;
4. Maximum Type Allocation change from 20% to 25% for Commercial Paper and allowing trusts and LLC issuers, to reflect a recent change in NRS;
5. Maximum Term from 1 year to 5 years for Negotiable CD, to correspond with Corporate Note’s Maximum Term;
6. Maximum Type Allocation change from 20% to 25% for Corporate Notes, Bonds, and Other Unconditional Obligations, to reflect a recent change in NRS;
7. Addition of State and Local Government Obligations instrument as allowable per NRS, to allow for further diversification of the portfolio into highly rated municipal obligations;
8. Addition of Supranational Obligations instrument, to reflect recent NRS change, which allows for further diversification of the portfolio into highly rated Washington D.C. based supranational organizations;
9. Increase the weighted average maturity from 2.5 years to 3.5 years, to lengthen the portfolio’s average long-run maturity to increase investment income, and to allow additional allocation to federal agency mortgage-backed securities, which have longer stated final maturities, but paydown principal sooner;
10. Addition of Summary Authorized Investments table, and;
11. Addition of Credit Ratings Interpretation table.