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Conejo Recreation & Park District <br />GENERAL MANAGER <br />Jim Friedl <br />DATE: January 21, 2021 <br />TO: Board of Directors <br />FROM: Jim Friedl, General Mana e L -J <br />SUBJECT: Re -adoption of Investmen- ' y <br />RECOMMENDATION <br />BOARD OF DIRECTORS <br />Doug Nickles, Chair <br />Nellie Cusworth, Vice Chair <br />George M. Lange, Director <br />Susan L. Holt, Director <br />Chuck Huffer, Director <br />GENERAL MANAGER EMERITUS <br />Tex Ward <br />It is recommended that the Board of Directors adopt the District's investment policy. <br />DISCUSSION <br />Government Code requires the Board to annually authorize the delegation of investment authority, <br />which is best accomplished by reviewing the District's investment policy. The attached policy was <br />last adopted on February 6, 2020. <br />The policy is conservative, providing for investment in short term debt instruments and government <br />protected bank instruments. The policy does not allow for more speculative investments such as <br />stocks, mutual funds, corporate bonds, or other corporate securities that trade in the national <br />financial markets. <br />This conservative approach results in lower earnings than more speculative investments but <br />provides a higher degree of safety and liquidity. Of the three major components in a government <br />investment policy, these two take precedent over the third, which is rate of return. <br />Note that over 98% of District cash assets are invested at all times. Essentially, there are no idle <br />funds or funds not earning interest. Maximizing the amount of funds invested helps offset lower <br />earnings that accrue from more conservative investments. <br />The District invests with the Ventura County Investment Pool and the State of California Investment <br />Pool (LAIF). The investment policies of both the State of California and Ventura County limit their <br />pool investments to the same type of investment vehicles contained in the District policy. These <br />policies have previously been shared with the Board. <br />The rate of return for the Ventura County Investment Pool continues to be higher than the rate of <br />return for State Investment Pool (LAIF). Thus, the majority of District funds are being held there. <br />Funds in the District's checking account earn interest through an agreement with the District's bank. <br />These earnings are applied to the fees the bank charges the District for its services. <br />ADMINISTRATIVE OFFICES <br />403 West Hillcrest Drive I Thousand Oaks, CA 91360-4223 <br />(805) 495-6471 1 FAX: (805) 497-3199 1 Email: parks@crpd.org I Website: www.crpd.org <br />