Agenda Item# 2
Columbus Consolidated Government
Council Meeting
February 10, 2009
Agenda Report# 356
TO: Mayor and Councilors
SUBJECT: Georgia Fund I Investment Pool
INITIATED BY: Finance Department
Recommendation: Approve a resolution authorizing the investment of funds of the
Columbus Consolidated Government in the local government investment pool known
as ?Georgia Fund I? operated by the state Office of Treasury and Fiscal
Services.
Background: O.C.G.A. ?36-83-1, et. Seq. authorizes local governments to invest
funds through an investment pool operated by the state Georgia Fund I began
operations in July 1981. The Columbus Consolidated Government has invested
idle cash in the pool for many years. The Office of Treasury and Fiscal
Services requires adoption of a new resolution by Council any time there are
banking changes, changes in the individuals who are authorized to deposit or
withdraw funds from the pool, or there is a need to provide new information.
This requested resolution is to change the individuals who are authorized to
deposit or withdraw funds from the pool.
Analysis: The investment pool is operated as a money market account, which
invests only in securities authorized by state law. ?The pool has been rate
?AAAm? by Standard and Poor?s, indicating it is prudently managed and offers
minimal risk of loss to local governments. The Standard and Poor?s weighted
average maturity (WAM) is 47 days. The average yield of the pool for December
2008 was 1.5018%, down from 2.0027% in November 2008. As of December 31, 2008,
the Columbus Consolidated Government has $27,518,744.26 invested in the pool
from various funds.
The balance of the invested portfolio consists of a variety of securities sold
by the U.S. Treasury or government agencies and certificates of deposit sold by
banks, and are managed internally by the City?s investment officer. This
portion of the portfolio had an average yield of 3.82% as of December 31, 2008.
As a general rule, funds are invested in the pool to the extent expenditure
demands are uncertain. Because the pool is highly liquid, funds can be
withdrawn and obtained in one day without penalty. This makes the investment
pool an attractive cash management tool. Additionally, the Columbus
Consolidated Government utilizes interest bearing checking accounts for daily
activity through the banking services contract. Funds, which are known to be
idle for longer periods of time, are invested in higher-yielding securities,
which are less liquid than the state pool.
Financial Considerations: Continued use of the pool is expected to provide a
favorable investment return with minimal risk while assuring sufficient
liquidity for the Columbus Consolidated Government to meet its financial
obligations. The invested balance in the pool rises and falls with cyclical
cash flows, which in turn are influenced by tax and other revenue collections,
bond proceeds for financing projects, and the timing of expenditures for
payroll and accounts payable. The yield of the pool rises and falls with the
financial markets. Investment income is allocated to all city accounting funds
based on their contribution to the total invested balance.
Legal Considerations: Investment in the state pool is authorized by O.C.G.A.
?36-83-1, et. seq. and by the Columbus Consolidated Government investment
policy.
Recommendations/Actions: Approve a resolution authorizing the investment of
funds of the Columbus Consolidated Government in the local government
investment pool known as ?Georgia Fund I? operated by the State Office of
Treasury and Fiscal Services.
A RESOLUTION
No. _____________
A RESOLUTION AUTHORIZING THE INVESTMENT OF THE FUNDS OF THE COLUMBUS
CONSOLIDATED GOVERNMENT IN THE LOCAL GOVERNMENT INVESTMENT POOL KNOWN AS
?GEORGIA FUND I? OPERATED BY THE STATE OFFICE OF TREASURY AND FISCAL SERVICES.
WHEREAS, O.C.G.A. ?36-83-1, et. Seq. authorizes the investment of funds by
local governments in a local government investment pool operated by the state;
and,
WHEREAS, the local government investment pool serves as a cash management tool
for the Columbus Consolidated Government investment portfolio; and,
WHEREAS, the Columbus Consolidated Government is required to adopt a resolution
in order to change the individuals authorized to deposit and withdraw funds
from the pool.
NOW, THEREFORE, THE COUNCIL OF COLUMBUS, GEORGIA HEREBY RESOLVES:
The Mayor is authorized to execute the attached for titled Georgia Fund I
(local government investment pool) Resolution to Authorize Investment.
Introduced at a regular meeting of the Council of Columbus, Georgia, held on
the ____ day of ________, 2009, and adopted at said meeting by the affirmative
vote of _________ members of said council.
Councilor Allen voting ______________
Councilor Anthony voting ______________
Councilor Baker voting ______________
Councilor Barnes voting ______________
Councilor Davis voting ______________
Councilor Henderson voting ______________
Councilor Hunter voting ______________
Councilor McDaniel voting ______________
Councilor Turner Pugh voting ______________
Councilor Woodson voting ______________
______________________________ ________________________
Tiny Washington, Clerk of Council Jim Wetherington, Mayor
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