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HomeMy WebLinkAbout5.8 Establishment of a Standing Finance and Investment Committee of the City Councilr DUBLIN CALIFORNIA STAFF REPORT CITY COUNCIL Agenda Item 5.8 DATE: October 15, 2025 TO: Honorable Mayor and City Councilmembers FROM: Colleen Tribby, City Manager SU B.ECT: Establishment of a Standing Finance and Investment Committee of the City Council Prepared by.• Jay Baksa, Finance Director EXECUTIVE SUMMARY: The City Council will consider a resolution establishing a standing Finance and Investment Committee consisting of two Councilmembers appointed by the Mayor. The Committee will be responsible for reviewing and making recommendations to the City Council on financial matters including the City's investment policy and strategy. STAFF RECOMMENDATION: Adopt the Resolution Establishing a Standing Finance and Investment Committee. FINANCIAL IMPACT: Costs associated with the formation and oversight of the Committee will be absorbed by the Finance Department's annual operating budget. DESCRIPTION: The September 17, 2024, City Council agenda included an item updating the City's Investment Policy, which incorporated a discussion of the need for a Finance and Investment Committee consisting of two Councilmembers to be appointed by the Mayor. Staff was directed to bring a future item to the City Council establishing the Committee. The proposed Finance and Investment Committee will provide policy guidance and direction to Staff and will serve as a recommendation body to the entire City Council on financial matters, including investing of City funds. It will not make legislative decisions on behalf of the City Council, and it will be subject to Brown Act requirements governing open meetings. Proposed focus areas of the Committee are discussed below. Page 1 of 2 1 Investments The City's investment policy and strategy has been an area of interest for the City Council, particularly as market conditions can shift dramatically. Councilmembers have raised questions regarding the City's positioning to weather such shifts, which is dictated by the strategy selected by Staff in consultation with its investment managers, Chandler Asset Management. In addition, Councilmembers have expressed an interest in specific areas of the City's Investment Policy that may need updating, particularly related to authorized investment types. The new Committee will be charged with reviewing this information and making recommendations in these areas. Finance In addition to providing investment oversight, the Committee will act in an advisory capacity in matters pertaining to the City budget, long-term financial planning, funding plans for complex projects, and other finance matters. The Committee could also provide input on items related to existing and potential debt issuance, quarterly financial reports, and fee assessments. If the resolution is approved, appointments to the Committee will be made by the Mayor as part of the annual item brought to the City Council. The next such item is planned for December 17, 2024, with the newly seated City Council. It is anticipated that the Committee would meet on a quarterly basis; that will be confirmed at the first meeting, which would be scheduled for early 2025. STRATEGIC PLAN INITIATIVE: None. NOTICING REQUIREMENTS/PUBLIC OUTREACH: The City Council Agenda was posted. ATTACHMENTS: 1) Resolution Establishing a Standing Finance and Investment Committee Page 2 of 2 2 Attachment I RESOLUTION NO. XX — 24 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN ESTABLISHING A STANDING FINANCE AND INVESTMENT COMMITTEE WHEREAS, the City's investment policy and strategy continues to be areas of importance for the City Council; and WHEREAS, the City's long-term financial stability requires the transparent sharing of information with the City Council as well as the appropriate level of focus and scrutiny; and WHEREAS, a standing Finance and Investment Committee of the City Council is needed in order to review in depth the City's Investment Policy, as well as review and make recommendations on the City's investment strategy, portfolio composition and quarterly returns; and WHEREAS, such standing Finance and Investment Committee will be able to act in an advisory capacity in matters pertaining to the City budget, long-term financial planning, funding plans for complex projects, and other finance matters; and WHEREAS, the standing Finance and Investment Committee will provide policy guidance and direction to Staff and will serve as a recommendation body to the entire City Council, but will not make any legislative decisions on behalf of the City Council; and WHEREAS, the standing Finance and Investment Committee is subject to the Brown Act and will follow all of the necessary requirements to comply. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby establish a standing Finance and Investment Committee. BE IT FURTHER RESOLVED that members of the Finance and Investment Committee will be appointed in December of 2024 by the Mayor as part of the annual appointments, with the Committee becoming effective January 1, 2025. {Signatures on the following page} Reso. No. XX-24, Item X.X, Adopted XX/XX/2024 Page 1 of 2 3 PASSED, APPROVED AND ADOPTED this 15th day of October 2024, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: City Clerk Reso. No. XX-24, Item X.X, Adopted XX/XX/2024 Page 2 of 2 4