HomeMy WebLinkAboutResolutions 87-005 N.C.S. 01/05/1987L,-.
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I~~SOlld~lOYl ~o. 87-5 _N. ~. ~.
of the City of Petaluma, California
ESTABLISHING INVESTMENT POLICY
WHEREAS, Government Code §53:646 requires each City Treasurer or
Chief Fiscal Officer to annually render to the legislative body of the local
agency a statement of investment policy:
NDW, THEREFORE, BE IT RESOLVED that the City Council adopts the
following .as its investment policy:
As a charter city, Petaluma operates its pooled idle cash
investments under the "prudent man rule" . This affords the
City a broad spectrum of investment opportunities so long as the
investment is deemed prudent and is allowable under current
.legislation of the State of California.
Petaluma strives to maintain the level of investment of all idle
funds as near 100 o as possible through daily and projected cash
flow determinations . Idle . cash management and investment
transactions are the responsibility of the City Treasurer and
investments are made in the following media:
Securities of the U . S . Government., or its agencies .
Certificates of Deposits (or Time Deposits) placed with
commercial. banks and savings .and loans .
Bankers Acceptances
Negotiable Certificates of Deposit
Repurchase Agreements
Passbook Savings Account demand deposits
Criteria for selecting investments and the order of priority are
1. Safety
2. Yield
3. Liquidity
T ~' ~~
.~~:.:~~' investment policy
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G"overnment paper, agency paper and repurchase. agreements are
the .highest quality investments available in terms of .safety and
.liquidity. Certificates of Deposit, savings accounts, and
bankers acceptances are insured or collaterali-zed.
Most investments 'are highly liquid, with .the exception of
collateralized paper and Certificates of Deposit held by banks
and savings and loans. Maturities are selected to anticipate cash
needs, thereby ob°viating the need for forced liquidation.
Petaluma attempts to obtain the highest yield obtainable when
selecting investments, provided that criteria for safety and
liquidity are met,.. Ordinarily-, because investments carry a
positive yield curve, (i. e . , longer term rates are higher than
shorter maturities) , the. City attempts to ladder its maturities to
meet anticipated cash needs in such a way that new investment
money can be placed in maturities that :carry a higher rate than
is available in the extremely short market of 30 days or less .
The City operates its investment pool with. many State and
self-imposed constraints. It does not buy stocks; it does not
speculate; it does not deal in futures' or options: Investments
are generally limited to maturities which do not exceed one year .
..
The basic premise u=nderlying Petaluma investment philosophy is
to insure that .money is alwa~,rs available when needed.
Under the power and' "authority conferred.upon this Council by the Charter of said City.
I hereFiy certify the foregoing Resolution was "introduced and adopted by the Approved as to
Council of the City of Petaluma at a {Regular,) I
on. the ...-..5th............ day of ...................T.?A1?1~42
following .vote i
.AYES: Davis, Sobei., Woolsey, Cavanagh, Balshaw, Vic
NOES:
ABSENT:
ATTEST : ..........:..: - .....L(!(........._....._._............_........
ity Clerk
Co~mcil File ..............._---................
Form CA 2 7I$1 Res. No............~.~:-,~....D1CS