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Home My WebLink AboutResolution 126-92 RESOLUTION NO. 126-92 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, TO ADOPT ITS ANNUAL INVESTMENT POLICY WHEREAS, the City of Atascadero was required by state law to adopt an Annual City Investment Policy for idle funds; and WHEREAS, to maintain consistency and in accordance with Section 10.0 of the previous policy set forth in Resolution No. 109-91; and WHEREAS, it is the responsibility of the City Treasurer to propose such a policy as well as it is an indication of good business sense and prudent practice. NOW, THEREFORE BE IT RESOLVED, that the City Council of the City of Atascadero does re-adopt, with minor revisions, the attached Investment Policy (Exhibit "All) to be followed by the City Treasurer in the investment of the City' s idle funds. On motion by Councilperson Luna and seconded by Councilperson Borgeson, the foregoing Resolution is hereby adopted in its entirety on the following roll call vote: AYES: Councilmembers Bewley, Borgeson, Kudlac, Luna and Mayor Nimmo NOES: None ABSENT: None ADOPTED: December 8, 1992 ATTEST: CITY OF ATASCADERO By: LE RABC. , .qty Clerk •ROBERT P. NIMMO, Mayor APPROVED AS TO FORM: i�. C %iik� ART ER R. MONTAN09N, City Attorney APPROVED AS TO CONTENT: MU IEL C. KORBA, City Treasurer Resolution No. 126-92 EXHIBIT "A" Page 1 CITY OF ATASCADERO STATEMENT OF INVESTMENT POLICY 1-0 POLICY It is thepolicy of the City of Atascadero to invest public funds is 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 iavestment of public funds -- safety, liquidity, and gield (SLT) . Z.a SCOPS This investment po-licy applies to all financial assets of the- City of Atascadero. These funds are accounted for in the City of Atascadero's< Comprehensive Annual Financial Report and include: Z..t Funds Z.1.1 General. Fuad Z.Z.Z Special Revenue Funds Z.1.Z Capital Project Funds Z.1.4 Enterprise Funds 2.1..5 Trust and Agency Funds Z.1.69 Retirement/Pension Funds- Z.1-7' undsZ.1-7' Any- new funds unless specifically- exempted. 3.0 PRDD88Cr" - Civil Code #2261 Znvestments shall. be, made wi th. judgment and cane- -- under circumstances thea prevailing -- whi.c3L persons o£ prudence, dis-- cretiom and intelligence• exerciser i= the management of: their o = affairs-, aot for speculati.om but. for iavestm�ent, considering the- probable: safety- of their capital as well as. the- probable income tca be` derived. 3.l The- standar& of prudence to:: be- used by- investment officials shall. be the- '•prudent person"` standard and sha11 be• applied. i= the- context of managing- an overall. portfolio. tavestm+eat off . cern acting- im accordance- with-wriit-e= pnoceduras and th+er iavestmeat: policy- acct. exerci.si nT dues d ligeacsz sha11 berrsli eved. oe persona. responsibility" for- as individual security' s: credit risk or market price changes, provide& deviations. front.eaoect;L-- t.ons are reported is a timely- fashio= and. ap_tm pri atm act=zL is- take= to coat..-o.L advers+e• d+eveiopmrteuts. Ct 1wr-Z rA=CW OF' gxTi'S-- TZ' -- Pew Goveraseat Cade= #53607- 4r-1- 5'360T4.1- all solicitations. for investments shall be- made to and Resolution No. 126-92 EXHIBIT "A" Page 2 t . 4.2 All brokers/dealers must have as application on file that has been previously approved before anv investment can be made through them. 4.3 Two siguatures shall be required for any purchase of C.D. Is or other type of investment, except LAZY and Orange Co.. invest- ment Pool. The two signatures shall be that of City Treasurer and Finance Director. If the latter is unavailable, the City Manager may substitute. 4.4 Any out-of-state investment shall requzre consultation with and approval of the Citv Attorney. State laws differ and add:.- ti.onal reau,i.-emeats may be appropriate for the safety of any investment. • . 5.4 REPOKx C 5.1 The T-reasurer shall submit a. monthly investment report to the City Council. This report w-411 inclade• all. squired elements of the monthly report as prescribed by Government Code Section 41004. Requi-red elements of the- monthly report: rpe, of Investment S.1.2 Institution. 5.1.3 Date of 3taturi t 5.1.4 Amount of Deposit or Cast of the• Security 5.1.S Current market value- of securi.ti.es w t2t. maturitT in. excess of 12 mouths. 5.1.6- Rate of interest 5.1.T Statement relating the re'-part to the:. Statement_of Investment Pol .cg. 5r.1.8: Statement that there- ars• sufficient funds ta meet: the- ne=t- henes-... 30 days' obl. .gations. s.1.9 Etter:vW Zanuarr 1, 1951 accrued. Interest as prescribed.. br the- Cali.:orniA Code- Section. 53646._ Cs.M sap n= AND` CQSTCCY* All. secu==4 6-r transactions, i.nal udiag col late*- T fog- repuz-- chase• agreements, entered into by- the City- of Atascadero: shall. be- conducted o= a. del verq-*versus-paymeat (DVF) basis. Secu=:Lt.es- wi.11 be held by- a ttm d party- castadiaa designated by the T.-eas- urer and evidenced by- sa.f ekeepiuT re+ce .pts • Resolution No. 126-92 EXHIBIT "A" Page 3 7.0 DIVERSIFICATION 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 Orange 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 Pe=i.tted 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 Compet1tive Bids-Purchase and sale of securities should be made on the basis of competitive offers and. bids when practical. T.3 Purchases shall be made only with corporations is a rating category of "A." or its equivalent or better by a nationally recognized rating service. S.0 M3MMMK IMTDRITIES To the extent possible, thw City- of Atascadero will. attempt- to ttemptto match its investments with. anticipated cash flog requirements. Unless matched to a specific cash flow, the City of Atascadero will not directly- invest in.. securities maturing more than. Z years fro= thee date of purchase. 9'.O I�IR'SRL Ct�HTSOFL g.Z A system of internal control. shall be- established and docu- mented i.a writing. The- controls shall be designed to prevent losses of public funds arising from fraud, employee error, misrepresentattiow 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 t-ransaction. authority from` accounting and recordkeepinT, cus- todiaL safekeeping, clear- delegation. of authority, specific- Resolution No. 126-92 EXHIBIT "A" Page 4 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 STATE24ENT OF IPVLS- POLICY The Statement of Investment Policy shalt be reviewed and submitted annually to the City Council of the City of Atascadero. MURIEL C. KORBA, City Treasurer City of Atascadero