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POLICY RESOLUTION NO. 27
RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF UKIAH ENACTING CITY INVESTMENT POLICY
WHEREAS, the City intends to provide guidelines for the
prudent investment of the City's cash assets, and outline the
policies for maximizing the efficiency of the City's investment
program; and
WHEREAS, the ultimate goal of adopting an Investment Policy is
10~to enhance the economic status of the City while protecting its
11 pooled cash; and
12 WHEREAS, the objective of the City's cash management system is
13 to accurately monitor and forecast expenditures and revenues, thus
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insuring the investment of funds to the fullest extent possible.
The City attempts to obtain the highest yield possible as long as
investments meet the criteria established for safety and liquidity.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City
of Ukiah the following is the City Investment Policy:
POLICIES
1. It is the policy of the City of Ukiah to invest public funds
in a manner which will provide the highest investment return
with the maximum security while meeting the cash flow demands
of the City of Ukiah.
2. The City's investments are authorized under and intended to
comply with State of California statutes governing the
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investment of public funds, specifically with Sections 53601
and 53601.1 of the Government Code.
The investment policy applies to all financial assets directly
controlled by the City of Ukiah. These funds are accounted
for in the City of Ukiah monthly financial reports.
Management responsibility for the investment program resides
with the City Treasurer and the Director of Finance.
Management and elected officials involved in the investment
process shall refrain from personal business activities that
could conflict with proper execution of the investment
program.
Ukiah operates its investments program under the Prudent Man
Rule. This affords a broad spectrum of investment
opportunities so long as the investment is deemed prudent and
is permissible under currently effective legislation of the
State of California and any other imposed legal restrictions,
such as applicable under current bond issues.
The City strives to maintain the level of investment of all
funds as near 100% as possible, through projected cash flow
determinations.
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 needed.
INVESTMENT OBJECTIVES
The primary objectives, in priority order, of the City of Ukiah
investment program shall be:
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·
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Safety: Safety of principal is the foremost objective of the
investment program.
Liquidity: The City of Ukiah investment portfolio will remain
sufficiently liquid to enable the City of Ukiah to meet all
operating requirements which might be reasonably anticipated.
Yield: Within the constraints of safety and liquidity, the
highest and best yield will be sought.
PERMITTED INVESTMENTS
The City Treasurer and Finance Director are empowered to invest in
the following types of securities:
1. Securities of the U.S. Government and its agencies.
2. State of California local Agency Investment Fund.
3. Banker's acceptances ratted AA or equivalent or better.
4. Fully insured or collateralized Certificate of Deposit with
banks and savings and loan associations.
5. Commercial paper rated Al/P1 or equivalent.
6. Corporate bonds rated A by Moody's or equivalent or better.
7. Repurchase agreements collateralized by U.S. Treasury
securities.
Mutual Funds permitted by Gov. Code Sections 53601(k);
53635 (k) .
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MATURITIES
The maximum maturities for investments permitted by this policy
will be five years. Some investments will have shorter maturities
as dictated by cash flow projections or State statutes.
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SAFEKEEPING
Securities purchased from brokers/dealers shall be held in third
party safekeeping by the trust department of the City of Ukiah's
bank or other designated third party trust, in the City's name and
control, whenever possible.
PASSED AND ADOPTED this 7th day of April, 1993, by the
following roll call vote:
AYES:
Councilmembers Mastin, Malone, Wattenburger, Shoemaker,
and Mayor Schneiter
NOES: None
ABSENT: None
ABSTAIN: None
Mayor
~TTF~S~:
FIN/RES