HomeMy WebLinkAboutPR - 24 investmentPOLICY RESOLUTION NO. 24
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RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF UKIAH ENACTING
CITY INVESTMENT POLICY
Whereas, the City intends to adopt guidelines for the prudent
investment of the City's cash assets and maximize the efficiency of the
City's Investment Program; and
Whereas, the objective of the City's cash management program should
insure the investment of funds to the fullest extent possible; and
Whereas, the City attempts to obtain the highest yield consistent with
meeting the criteria established for safety and liquidity.
NOW, THEREFORE, BE IT RESOLVED by the City of Ukiah the following is
the City Investment Policy:
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 investment of public
funds, specifically with Section 53601 and 53601.1 of the Government
Code.
3. 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.
4. Management responsibility for the investment program resides with the
City Treasurer and the Director of Finance.
5. 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.
6. 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.
7. The City strives to maintain the level of investment of all funds as
near 100% as possible, through projected cash flow determinations.
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8. 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:
1. Safety: Safety of principal is the foremost objective of the
investment program.
2. 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.
3. Yield: Within the constraints of safety and liquidity, the highest
and best yield will be sought.
PERMITTED INVESTMENTS AND MATURITIES
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 rated 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 AA by Moody's or equivalent or better.
7. Repurchase agreements collateralized by U.S. Treasury securities.
MATURITIES
The maximum maturities for corporate bonds will be three years and all
bonds will be held to maturity. The maximum maturities for Certificate of
Deposits will be one year. Ail other investments will be restricted to
maturities of three years or less as required by statue.
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.
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19th December
PASSED AND ADOPTED this day of , 1990 by the
following roll call vote:
AYES: Councilmembers Wattenburger, Shoemaker, Schneiter and Mayor Henderson
NOES: None
ABSENT: Counci]member McMichae]
ABSTAIN:None
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APPROVED BY MINUTE ORDER AT THE REGULAR COUNCIL MEETING OF JULY 15, 1992
CITY OF UKIAH
INVESTMENT POLICY
PURPOSE
This Statement is intended 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. The ultimate goal is to enhance the
economic status of the City while protecting its pooled cash.
OBJECTIVE
The objective of the City's cash management system is 'to accurately monitor
and forecast expenditures and revenues, thus 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.
POLICIES
·
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.
·
The City's investments are authorized under and intended to comply with
State of California statutes governing the 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 Prndent 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:
1. ,Sa,fet¥: Safety of principal is the foremost objective of the investment
program.
2. 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.
3. Yield: .Within the constraints of safety and liquidity, the highest and
best yield will be sought.
PERMITTED INVESTMENTS AND MATURITIES
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 rated 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 AA by Moody's or equivalent or better.
7. Repurchase agreements collateralized by U.S. Treasury securities.
8. Mutual Funds - Gov. Code Sections 53601(k); 53635(k).
Maturities:
The maximum maturities for corporate bonds will be five years and all bonds
will be held to maturity. The maximum maturities for Certificate of Deposits
will be one year. Ail other investments will be restricted to maturities of
three years or less as required by statue.
Mutual Funds:
Mutual Funds must be invested in securities and obligations otherwise eligible
for investments. The management company (fund) must attain the highest rating
by two of the national rating services. The purchase price of shares may not
include commissions. The fund must have five years experience with investing
public type investments with a portfolio of at least $500 million.
Investments will be limited to 10% of our surplus funds.
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.
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Investment