HomeMy WebLinkAboutResolutions 88-039 N.C.S. 02/16/1988~.,
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Resolution No. 88-39 N ~.s.
of the City of Petaluma, California
RESOLUTION APPROVING
STATEMENT OF INVESTMENT POLICY
WHEREAS, Government Code §53646 requires each City Treasurer to
annually render to the legislative body of the local agency a statement of
investment policy:
NOW, THEREFORE, BE IT RESOLVED that the City Council adopts the
following as its investment policy:
PURPOSE
This Statement is intended to provide guidelines for the prudent
investment of the temporary idle cash under the City Treasurer's
control. The ultimate goal is to enhance the interest earnings of
the City while protecting its pooled cash .
OBJECTIVE
The City's cash management system is designed to monitor and forecast
expenditures and revenues, thus enabling the City to invest funds to
the fullest extent possible. The City attempts to obtain the highest
interest yield as long as investments meet the criteria established for
safety and liquidity.
The City strives to maintain the level of investment of all funds of 95%
of available cash, through daily and projected cash flow
determinations. The cash management and investment transactions are
the responsibility of the City Treasurer.
The basic premise underlying the City's investment philosophy is, to
insure that money is always safe and available when needed.
POLIC Y
The City of Petaluma operates its temporary .pooled idle cash
investments under the prudent man rule (Civil Code Section 2261, et
seq.)*. This affords the City a broad spectrum of investment
opportunities as long as the investment is deemed prudent and is
allowable under current legislation of the State of California
(Government Code Section 53600 et seq.).
88-39
Rcs. No . .............................. N.C.S.
-investment policy
Investments may be made in the following media:
- Securities of the U. S. Government, or its
- Certificates of Deposits (or Time Deposits)
• banks and/or savings and loan companies.
- Negotiable Certificates of Deposit
- Bankers Acceptances
- Local Agency Investment Fund (State Pool)
- Repurchase Agreements (Repos)
- Passbook Savings Account Demand Deposits
agencies.
placed with commercial
Demand Deposits
Criteria for selecting investments and the order of priority are:
1. Safety. The safety and risk associated with an investment refers to
the potential loss of principal, interest or a combination of these
amounts. The City only operates in those investments that are
considered very safe.
2. Liquidity. This refers to the ability to "cash in" at any moment in
time with a minimal chance of losing some portion of principal or
interest. Liquidity is an important investment quality especially when
the need for unexpected funds may occur.
3. Yield. Yield is the potential dollar earnings an investment can
provide, and sometimes is described as the rate of return.
Safekeeping. Securities purchased from brokers/dealers shall be held in
third party safekeeping by the trust department of the City's bank or other
designated third party trust, in City's name and control, whenever
possible.
* The prudent man rule states, in essence, that 'in investing ...
property for the benefit of another, a trustee shall exercise the judgment
and care, under the circumstances then prevailing, which men of prudence,
discretion and intelligence exercise in the management of their own affairs
Under the power and authority conferred upon this Council by the Charter of said City.
REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the Approved as to
Council of the City of Petaluma at a (Regular) (~y~~{$~~$at) meeting form
on the --.16th y Februar , 19..88, by the
............. da of ........_...................... Y
JAB : i n ves~l~,g~}~Ey - - ---------------------------
City Attorney
AYES: Sobel, Balshaw, Cavanagh, Davis, Tencer, Vice Mayor Woolsey, May r illigoss
NOES: ~ f~1
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ABSENT: o w`-f ,~',~ ~` ~
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ATTEST: .~.. ~~~~L'.~. ~.~.~~ .... .........:..:......
City Clerk ~ Mayor
F~ Gbuncil Fiple .O...................................
CA 10-85 ~ Res. No. ...fJV.-.3.~............ N.C.S.