HomeMy WebLinkAboutResolution 126-90 RESOLUTION NO. 126-90
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCAVERO
TO ADOPT ITS ANNUAL INVESTMENT POLICY
WHEREAS, the City of Atascadero is required by state law to
adopt a City Investment Policy, on an annual basis, for idle
funds; and
WHEREAS, it is the responsibility of the City Treasurer to
propose such a policy.
NOW, THEREFORE, BE IT RESOLVED that the City Council does
adopt the attached Investment Policy to be followed by the City
Treasurer in the investment of the City ' s idle funds.
On motion by Councilperson Nimmo , and seconded by
Councilperson Dexter , the foregoing resolution is
hereby adopted in its entirety, including the actual Investment
Policy attached , by the following Roll Call vote.
AYES: Councilmembers Shiers, Borgeson, Nimmmo, Dexter & Mayor Lilley
NOES: None
ABSENT: None
ADOPTED: December 11, 1990
ATTEST•
By: _. —�
LEE AYKA, City C erk R BERT B. L LLEY ayor
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
` d
ARTH R M NAN ON MURIEL KORBA
City Attorney City Treasurer
CITY OF ATASCADERO
STATEMENT OF INVESTMENT POLICY
1 .0 POLICY
It is the policy of the City of Atascadero to invest public
funds in a manner which will provide the highest investment
return with the maximum security while meeting the daily cash
flow demands of the City of Atascadero and conforming to all
state, county and local statutes governing the investment of
public funds -- safety, liquidity, and yield (SLY) .
2.0 SCOPE�
This investment policy applies to all financial assets of
the City of Atascadero . These funds are accounted for in the
City of Atascedero ' s Comprehensive Annual Financial Report and
include:
2. 1 Funds
2. 1 . 1 General Fund
2. 1 ,2 Special Revenue Funds
2. 1 .3 Capital Project Funds
2. 1 .4 Enterprise Funds
2. 1 .5 Trust and Agency Funds
2. 1 .6 Retirement/Pension Funds
2. 1 .7 Any new fund unless specifically exempted .
3.0 PRUDENCE - Civil Code #2261
Investments shall be made with judgment and care -- under
circumstances then prevailing -- which persons of prudence,
discretion and intelligence exercise in the management of their
own affairs, not for speculation, but for investment , considering
the probable safety of their capital as well as the probable
income to be derived .
3. 1 The standard of prudence to be used by investment officials
shall be the "prudent person" standard and shall be applied in
the context of managing, an overall portfolio . Investment
officers acting in accordance with written procedures and the
investment policy and exercising due diligence shall be relieved
of personal responsibility for an individual security ' s credit
risk or market price changes, provided deviations from
expectations are reported in a timely fashion and appropriate
action is taken to control adverse developments.
4.0 DELEGATION OF AUTHORITY - Per Government Code #53607
4. 1 All solicitations for investments shall be made to and
through the City Treasurer .
4.2 All brokers/ dealers must have an application on file that
has been previously approved before any investment can be made
through them.
4.3 Two signatures shall be required for any purchase of C.D. ' s
or other type of investment , except LAIF. The two signatures
shall be that of City Treasurer and Finance Director . If the
latter is unavailable, the Assistant Finance Director may
substitute.
4.4 Any out-of-state investment shall require consultation with
and approval of the City Attorney. State laws differ and
additional requirements may be appropriate for the safety of any
investment .
5'0 REPORTING
5. 1 The Treasurer shall submit a monthly investment report to
the City Council . This report will include all required elements
of the monthly report as prescribed by Government Code Section
53646.
Required elements of the monthly report :
5. 1 . 1 Type of Investment
5. 1 .2 Institution
5. 1 .3 Date of Maturity
5. 1 .4 Amount of Deposit or Cost of the Security
5. 1 .5 Current market value of securities with maturity in
excess of 12 months.
5. 1 .6 Rate of Interest
5. 1 .7 Statement relating the report to the Statement of
Investment Policy.
5. 1 .8 Statement that there are sufficient funds to meet the
next 30 days ' obligations.
5. 1 .9 Effective January 1 , 1991 , accrued Interest as
prescribed by the California Code Section 53646.
6.0 SAFEKEEPING AND CUSTODY
All security transactions, including collateral for
repurchase agreements, entered into by the City of Atascadero
shall be conducted on a delivery - versus - payment (DVP) basis.
Securities will be held by a third party custodian designated by
the Treasurer and evidenced by safekeeping receipts.
7.0
The City of Atascadero will diversify its investments by
security type and institution. With the exceptions of U.S.
Treasury securities and authorized pools -- such as the State
LAIF and County Agency Investment Fund , no more than 10% of the
City of Atascadero ' s total investment portfolio will be invested
in a single security type or with a single financial institution.
7. 1 Permitted investments/Deposits
Securities of the U.S. Government
Certificates of Deposits
Negotiable Certificates of Deposit
Bankers Acceptances
Commercial Paper
Local Agency Investment Fund (State Pool )
County Agency Investment Fund
Passbook Deposits
Repurchase Agreement
Reverse Repurchase Agreements
7.2 Competitive Bids-Purchase and sale of securities should be
made on the basis of competitive offers and bids when practical .
7.3 Purchases shall be made only with corporations in a rating
category of "A" or its equivalent or better by a nationally
recognized rating service.
8.0 MAXIMUM MATURITIES
To the extent possible, the City of Atascadero will attempt
to match its investments with anticipated cash flow requirements.
Unless matched to a specific cash flow, the City of Atascadero
will not directly invest in securities maturing more than 2 years
from the date of purchase.
9.0 INTERNAL CONTROL
9. 1 A system of internal control shall be established and
documented in writing . The controls shall be designed to prevent
losses of public funds arising from fraud , employee error ,
misrepresentation of third parties, unanticipated changes in
financial markets, or imprudent actions by employees and officers
of the City of Atascadero . Controls deemed most important
include: control of collusion, separation of duties, separating
transaction authority from accounting and recordkeeping ,
custodial safekeeping, clear delegation of authority, specific
limitations regarding securities ' losses and remedial action,
written confirmation of telephone transactions, minimizing the
number of authorized Investment Officials, documentation of
transactions and strategies, and code of ethics standards.
10.0 STATEMENT OF INVESTMENT POLICY
The Statement of Investment Policy shall be reviewed and
submitted annually to the City Council of the City of Atascadero ,
State of California Governme�n�t/ (Code 53646) .
MURIEL C. KORBA, City Treasurer
City of Atascadero
c/resolution