| | Published January 19th, 2022
| Local Agency Investment Fund designees for Moraga are updated
| | | By Vera Kochan | | |
Moraga is a participant in the Local Agency Investment Fund created in 1977, as an investment option for local governments and special districts in California. In April of 1983, the town council authorized the investment of Moraga's monies into this account, which are not needed for the daily running of the town. Currently the "rainy-day" balance stands at $13 million.
According to the www.treasurer.ca.gov website, "This program offers local agencies the opportunity to participate in a major portfolio, which invests hundreds of millions of dollars, using the investment expertise of the State Treasurer's Office professional investment staff at no cost to the taxpayer. All investments and LAIF claims are audited on a daily basis by the State Controller`s Office as well as an internal audit process. The LAIF has grown from 293 participants and $468 million in 1977, to 2,396 participants and $36.3 billion at the end of December 2021."
Town Manager Cynthia Battenberg's Jan. 12 staff report to the town council explained that "LAIF requires a resolution to be in place that names positions and offices authorized to make deposits to and withdrawals from the Town's account. Individuals in authorized positions or offices must then provide evidence of office or position as well as identification to LAIF in order to become authorized."
When the account was first set up in 1983, the mayor, vice mayor, town manager and town treasurer were all authorized. In October 2003, the position of finance manager was added. That title changed to finance director in April 2009, and changed again to administrative services director in June 2010. While there are five authorized offices and positions, currently only the town manager and administrative services director can order the deposit or withdrawal of funds from LAIF.
Given the constant rotation of the mayor and vice mayor positions every year, it is not considered in the best practice to keep those positions on an authorized level. As such, staff felt it prudent to replace those two positions and the treasurer with the police chief. The staff report reasons, "This recommended change is favorable as a thorough background investigation, including a review of the individual's credit history, assets, criminal and traffic history, legal history and pre-employment review is required and completed as part of the town's hiring process for town manager, administrative services director and police chief." Having three authorized positions to the account is necessary in the event that one individual becomes unavailable, because some transaction processes require two signatures.
The town council unanimously approved the resolution. |
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Lamorinda Weekly, Moraga CA