City of Atascadero to invest in international banking groups

ATASCADERO — According to a report from Atascadero City Treasurer Gere Sibbach at a City Council meeting Tuesday, the City is planning to diversify its portfolio of investments by investing a “small amount” of money in international banks.

The State of California regulates the type of investments that local municipalities may make and recently added international banking organizations to that list.

“So this adds a new class of investments for us — supranationals, three international banks,” Sibbach said. “They’re very stable and they’ve never had a default ever.”

Sibbach said that the City would be investing small amounts in three international banks including the World Bank.

They’re rated better actually in many cases than federal agencies like Fannie Mae and the Federal Home Loan Bank,” he said. “So this gives us a little more opportunity for diversification and also a little bit better yield, so we feel like we can make a little more money without needing taxes or anything from the City, so that’s why we’re recommending this.”

Mayor Tom O’Malley added that new investment opportunities are vetted by the City’s finance department and then approved by the finance committee, which is made up of two City Council members, the City Treasurer and key City staff from the finance department.

The Council approved the new investments unanimously.

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