HomeMy WebLinkAboutCC RESO 15,806i
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RESOLUTION NO. 15,806
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY
APPROVING THE CITY OF NATIONAL CITY INVESTMENT POLICY
WHEREAS, Section 53646 of the Government Code provides
that the treasurer or chief fiscal officer shall annually render
to the legislative body of the local agency a statement of
investment policy; and
WHEREAS, the City Treasurer and Director of Finance have
prepared an Investment Policy, attached hereto as Exhibit "A" and
incorporated herein by reference as if set forth in full; and
WHEREAS, said statement is intended to provide guidelines
for the prudent investment of the City's temporary idle cash and
outline the policies for maximizing the efficiency of the City's
cash management system, and
WHEREAS, the investment goal is to enhance the economic
condition of the City while insuring the safety of funds invested.
NOW, THEREFORE, BE IT RESOLVED that the City Council of
the City of National City does hereby approve the Investment Policy
attached hereto as Exhibit "A".
PASSED and ADOPTED this 6th day of December, 1988.
ATTEST:
(Y11• . }.k.(t lit�1/J
Lori Anne Peoples, City Clerk
APPROVED AS TO FORM:
/f°,1P 4204:- aq
George H. Eiser, III
City Attorney
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George if Waters, Mayor
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 on Professional Conduct" of the
California Municipal Treasurers Association, and other
applicable State and Federal statutes shall govern the
carrying out of that responsibility.
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- Regardless of the level and detail of
advance financial planning, some uncertainty regarding
the precise time of receipts and disbursements always
remains. On occasion, 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 date so scheduled that the City will be
able to pay bills when they are due without selling
securities before they mature.
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EXHIBIT A
CITY OF NATIONAL CITY
INVESTMENT POLICY
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
liquidity should be met first.
III. ELIGIBLE INVESTMENTS
Investments 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 of 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 in an instrument may be made
when the term remaining to maturity of the security is
greater than five years unless the City Council has granted
express authority to make that investment either
specifically by resolution or as a part of an investment
program approved by the City Council no less than three
months prior to the investment.
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.
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CITY OF NATIONAL CITY
INVESTMENT POLICY
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.
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