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Conejo Recreation & Park District GENERAL MANAGER BOARD OF DIRECTORS Jim Friedl Doug Nickles, Chair Nellie Cusworth, Vice Chair George M. Lange, Director Susan L. Holt, Director Chuck Huffer, Director DATE: December 2, 2021 TO: Board of Directors FROM: Jim Friedl, General Mana SUBJECT: Re -adoption of Investment ' syv RECOMMENDATION Adopt the District's investment policy. DISCUSSION GENERAL MANAGER EMERITUS Tex Ward Government Code requires the Board to annually authorize the delegation of investment authority, which is best accomplished by reviewing the District's investment policy. The attached policy was last adopted on January 21, 2021. There are no proposed changes to the policy this year. The policy is conservative, providing for investment in short term debt instruments and government protected bank instruments. The policy does not allow for more speculative investments such as stocks, mutual funds, corporate bonds, or other corporate securities that trade in the national financial markets. This conservative approach results in lower earnings than more speculative investments but provides a higher degree of safety and liquidity. Of the three major components in a government investment policy, these two take precedent over the third, which is rate of return. Note that over 98% of District cash assets are invested at all times. Essentially, there are no idle funds or funds not earning interest. Maximizing the amount of funds invested helps offset lower earnings that accrue from more conservative investments. The District invests with the Ventura County Investment Pool and the State of California Investment Pool (LAIF). The investment policies of both the State of California and Ventura County limit their pool investments to the same type of investment vehicles contained in the District policy. These policies have previously been shared with the Board. Throughout 2021, the rate of return for the Ventura County Investment Pool was higher than the rate of return for State Investment Pool (LAIF) except for a few months. Currently, Ventura is out performing LAIF; thus, the majority of District funds are being held there. Funds in the District's checking account earn interest through an agreement with the District's bank. These earnings are applied to the fees the bank charges the District for its services. ADMINISTRATIVE OFFICES 403 West Hillcrest Drive I Thousand Oaks, CA 91360-4223 (805) 495-6471 1 FAX: (805) 497-31991 Email: parks@crpd.org I Website: www.crpd.org