REPORT TO SHASTA COUNTY BOARD OF SUPERVISORS

BOARD MEETING DATE:  November  7, 2017
CATEGORY:  Consent - General Government-3.

SUBJECT:

Repeal Resolution 91-7; Approve Resolution 2017-xx that authorizes the Housing and Community Actions Director to close the Local Agency Investment Fund (LAIF) account.

Supervisorial District No. :  ALL

DEPARTMENT CONTACT:  Brian Muir, Auditor-Controller, (530) 225-5541

STAFF REPORT APPROVED BY:  

RECOMMENDATION

Adopt a resolution which: (1) Repeals Resolution No. 91-7; and (2) authorizes the Housing and Community Action Director to close the Local Agency Investment Fund account and transfer funds into the County Treasury.

SUMMARY

Resolution 91-7 authorized the Housing Authority to invest funds in the Local Agency Investment Fund (LAIF) to satisfy the interest bearing requirements per Housing and Urban Development (HUD) guidelines. The LAIF account is no longer needed.

DISCUSSION

The Housing Authority opened a LAIF account to satisfy previous HUD interest requirements, but new processes allow the interest requirement to be satisfied while holding the funds in the County Treasury. The LAIF account is used in conjunction with an outside checking account with Bank of America. Currently, the combined accounts bear interest at a considerable lower rate than the County Treasury investment pool due to their fee structure. There has been no activity in this account since June 2008 other than the accumulation of interest. Additionally, outside accounts pose an internal control  risk to the County.

ALTERNATIVES

The Board could choose to not repeal Resolution 91-7. This is not recommended as it results in decreased interest revenue and puts the County at greater risk for loss of funds.

OTHER AGENCY INVOLVEMENT

Housing and Community Actions Programs agrees with the proposed action.

FINANCING

N/A