HomeMy WebLinkAboutResolutions 86-024 N.C.S. 01/21/1986.. ~~~.
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I~eSO~~.tt10I'~ ~®. 86-24 N. ~C. S.
of the City of Petaluma, California
ESTABLISHING INV;ES.TMENT POLICY
WHEREAS; Government Code §53646 requires each City Treasurer or
Chief Fiscal Officer to annually render to the legislative body of the local
agency a statement of 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 City's temporary idle cash . The ultimate goal is to
enhance the economic status 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 yield
obtainable as long as investments meet the criteria established for safety
and liquidity.
POLICY
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 5360.0 et
seq..) .
Investments may be made in the following media;
- Securities of the U.,S. Government, or its agencies
- Certificates of Deposit (or Time Deposits:) placed with commercial
banks and/or savings and loan companies
- Negotiable Certificates of Deposit -
- Bankers Acceptances
- Local Agency Investment Fund (State Pool) Demand Deposits
- Repurchase Agreements (Repos)
- Passbook Savings Account 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 iri those investments that are
considered very safe .
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
n
` Reso. 8.6-24 NCS 1 of 2
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2. Liquidity. This refers to the ability to °cash in" at any moment in
- time with a minimal chance of Tosng "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 • purclased" from brokers,?"dealers shall be held in
third party safekeeping by the trust department 'of -the local agency's bank
or other designated third party trust, in local agency' name and control,
whenever possible. •
Investment Objective. The cash management system .of the City of Petaluma
is designed to monitor and forecast expenditures' and revenues, thus
insuring the investment of monies to the fullest `extent:. possible. Attempts
to obtain highest interest yields possible as .Tong . as investments meet the
criteria required for safety and liquidity.
The City strives to maintain the. level of investment of all funds as near
100$ as possible, through daily and projected cash.. :flow determinations. Idle
cash management and investment transactions are the responsibility of the
City Treasurer.
The basic premise underlying the City's investment philosophy is, and will
continue to be, to insure that money is always safe and available when
need ed.
Under the power and authority confe
AYES:
this Council. by the Charter of said City.
vestment
I~e~y certify the foregoing Resolution was.introduced, and adopted by the Approved as to
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Council of the C'ty of Petaluma at a Regular) ( ~~~~~ g form
1st - anuary ~ 6 eetin s
on the .........--•• ............. day of ~..... ._............ ................. ..__„ 19....,..:, by the
following vote: ...................
Cit Att ey
Bond, Cavanagh, Davis, Woolsey, Tencer, Viee Mayor Balshaw, Mayor Mattei
NOES: None
ABSENT: None
.ATTEST:
Ci y Clerk
Gouneil File..._ ..................•-•--........
Form CA 2 7/81 Rcg.No........gs-24. NC.S
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Mayor
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