HomeMy WebLinkAboutCC RESO 14,520RESOLUTION NO. 14,520
RESOLUTION ADOPTING THE CITY OF NATIONAL
CITY INVESTMENT POLICY
The City Council of the City of National City hereby resolves
as follows:
Pursuant to Government Code Section 53601, the City Council
hereby authorizes the investment of funds not required for the
immediate necessities of the City in accordance with the attached
City of National City Investment Policy which is hereby adopted
and incorporated by reference.
PASSED and ADOPTED this 8th day of January, 1985.
ATTEST:
CITY CLERK
CITY OF NATIONAL CITY — INVESTMENT POLICY
I. OBJECTIVE
Investments are the vehicles by which a local government earns a
return on its idle cash. Investment returns are available for the
general operation of the City and can effectively substitute for
higher taxes. The objective of the City's investment program is
to maximize the returns on investments while at the same time
assuring the safety of invested funds and the availability of
funds, when needed, to finance the City's operations.
The purpose of this policy is to provide broad guidelines to the
officers of this City charged with the responsibility for
investment of temporarily idle surplus funds of the City. This
Policy, the "Prudent Man Investment Rules" as contained in the
California Civil Code, 'the "Code of Ethics
Conduct" of the California Municipal Treasurers
other applicable State and Federal statutes
carrying out of that responsibility.
on Professional
Association, and
shall govern the
The Finance Department, subject to review by the City Treasurer.
shall be responsible for administering the City's investment
program. In furtherance of this responsibility, the Director of
Finance and the City Treasurer shall issue and administer detailed
Investment Procedures to implement this Investment Policy.
II. CRITERIA FOR SELECTING INVESTMENTS
The criteria for selecting investments, and the order of priority
should be:
SAFETY — Safety (risk) involves the possibility of losing
some or all of the initial invested principal and/or loss of
accrued interest. Achieving safety of principal dictates
that only the highest quality securities should be considered
for investments.
LIQUIDITY
financial
time of
occasion,
— Regardless of the level and detail of advance
planning, some uncertainty regarding the precise
receipts and disbursements always remains. On
investments may have to be sold prior to maturity
in order to raise cash. Since this risk is ever present.
investments must be selected with an eye toward liquidity,
the ability to be converted into cash without significant
risk of loss of expected earnings and/or principal. Ideally,
the investment portfolio should be a mix of securities with
maturity dates so scheduled that the City will be able to pay
bills when they are due without selling securities before
they mature.
YIELD — The yield of a security is the annual rate earned
based on the actual earnings over the period that it is held.
While the City should attempt to maintain a fully invested
position at the highest yield, the criteria for safety and
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CITY OF NATIONAL CITY — INVESTMENT POLICY
liquidity should be met first.
III. ELIGIBLE INVESTMENTS
Investment may be made in securities which are permissible
investments under the California Government Code, as they now read
or may hereafter be amended, from money in the treasury not
required for the immediate necessities of the City.
All investments of the City shall have the City of National City
as the registered owner and shall be kept in the custody of the
City or by a qualified safekeeping institution. Investments shall
be diversified among institutions, types of securities and
maturities to maximize safety and yield with changing market
conditions. Investment bf funds in local financial institutions
shall be made only to the extent warranted by the offered yield,
liquidity and safety compared to that available from other
investments. No investment shall be made in securities with
maturity in excess of ten years from the purchase date.
IV. NON—DISCRIMINATION
The City shall not knowingly make any investment in any
institution that practices or supports directly or indirectly
through its actions discrimination on the basis of race, religion,
color, creed, national or ethnic origin, age, sex, or physical
disability.
V. ALLOCATION OF INVESTMENT INCOME
Investment income shall be allocated to the General Fund, unless
otherwise directed by law. Any statutory allocations to
restricted funds shall be made in proportion to the ratio of
restricted fund balances to total pooled balances.
VI. REPORTS
A monthly statement shall be rendered to the City Council and City
Manager showing the following information:
1. Type of investment.
2. Institution
3. Date of deposit
4. Date of maturity.
5. Amount of deposit.
6. Rate of interest.
7. Interest received.
8. Interest until maturity.
9. Current market value for all securities.
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