HomeMy WebLinkAboutResolution 85-027 N.C.S. 01/21/1985Resolufi;on No. 8 5-2 ~ N. C. S. JA N 21 1985 ~ 6
of the City of ,Petaluma, Cal'ifornia
ESTABLISHTNG INVESTMENT 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 irivestment policy:
NOW, THEREF(~RE, BE IT RESOLVED that the City Council adopts the
following as its investment p4licy : '
As a charter city., Petaluma operates i1ts poolecl idle cash
investments un~ler~ the "pruden.t man rule" . This affords the
City a broad speetrurn of-.investmen.t opportun'ities so' long as the
investment is deemed prudent and is allowable • under curr.ent
legislation of the State of California.
Petaluma strives to maintain the level of' investment of. all idle
funds as near 100°, as possible through, daily and -}~rojected 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 o,f Deposits (or Time Deposits) placed with
commercial banks anel savings and loans.
Bankers Acceptances
Negotia6le Gertificates of Deposit
Repurchase A~reements
Passbook Savings Account demand deposits
Criteria for selecting investments and the orcler of priority are:
1. Safety
2. Yield
3. Liquidity
Reso. 85-27 NCS Page 1 of 2
, investment policy
Government paper, agency paper and r~epurchase agreements are
the highest quality investments available in terms of safety and
liquidity. Certificates of Deposit, savings accounts, and
bankers acceptances are insured or collateralized.
Most investments are hi~hly 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 obviating the need for forced lic~uir~ation.
Petaluma attempts to obtain the highest yield obtainable when
selecting investments, provided that criteria for safety and
liquid.ity are met. Ordinarily, because investments carry a
positive yield curve, (i.e., longer term rates are higher than
sharter rnaturities) , the City attempts to ladd'er its maturities to
meet anticipated eash needs .in such a way that new investment
money can be plaeed in maturities that car,ry 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 constr.aints. 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 underlying Petaluma investment philosophy is
to insure that money is always available when needed.
Underthe power and aut_h,ority conferred upon this Council by the Oharter of said City.
I herebg, certify the 'foregoing Resolution was: ui£ioduced and ad"opted by the Approved s te-•--
• :~buncil:of the:City of'Petaluma at a(Regular) (~~A'~d}~~~1 meeting °
on the,:...21st_.._..... day of ...-•--•--....JanuarX .....:.. .......... 19.:8_.5 by the"
following vote: - ,' ~ ~ : -- ~•--°-•-- -J
,
~ t~iiy, t-izzorne;
.' ' ' . . , .:
AYES: galshaw, Cavanag'h, Davis, Woolsey,~ Tenc.er, V.M: Bond,, May.or Mattei
NOES': None
ASSENT: None
~ J:
ATTEST: -• --- - - ~ • ••• •-• ••--•-- •- •-
_._ _._ ___ __
' ity:Clerk ~ ~ "
, Gbuncil File ..........................._.......
Form CA 2 7/81 ~ Ites: No..::B:rL.-.2.~.....N~ S
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