HomeMy WebLinkAboutResolution - 2767 STATE OF CALIFORNIA) RESOLUTION NO. 2767
ti.,. COUNTY OF RIVERSIDE)ss
CITY OF SAN JACINTO)
A RESOLUTION OF THE CITY OF SAN JACINTO, CALIFORNIA,
STATEMENT OF INVESTMENT POLICY
WHEREAS, Section 53646 of the Government Code of the State of
California requires that the Treasurer or Chief Fiscal Officer shall annually render
to the legislative body of his/her agency for review and/or amendment, a
Statement of Investment Policy; and
WHEREAS, any changes to the City's Statement of Investment must be
considered in public session of legislative body; and
WHEREAS, the City's Statement of Investment Policy has not been
reviewed since April 1 , 2004.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City
of San Jacinto hereby rescinds previous investment policy resolutions and
approves the City of San Jacinto Statement of Investment Policy, as attached
hereto in Exhibit "A".
APPROVED, PASSED and ADOPTED this 21 st day of July 2005, by the
following vote:
Ayes: Ritchie, Shaw, Buydos
Nays: None
Abstain: None
Absent: Ayres, Stubblefield
_ r ' City of San Jacinto
ris 6arlson Buydos, Mayor
ATTEST:
rothy L. ouinard, City Clerk
Exhibit "A"
CITY OF SAN JACINTO
STATEMENT OF INVESTMENT POLICY
I
PURPOSE
The purpose of this Policy Statement is to identify policies and procedures to organize
and formalize investment related activities. It is intended that this policy statement
pertain to all investment activities and all funds under the direct authority of the City of
San Jacinto.
I I
OBJECTIVES
The objectives of this policy statement are:
A. Safety: It is the primary duty and responsibility of the Treasurer to
protect, preserve and maintain cash and investments placed in his/her trust on behalf
of the citizens of the City of San Jacinto. Investments in marketable securities
should be those with low sensitivity to market risk.
B. Liquidity: An adequate percentage of the investment portfolio shall be
maintained in liquid short-term securities, which can be converted to cash if
necessary to meet disbursement requirements of the City. Since all cash
requirements cannot be anticipated. investments in securities shall be those with
active secondary or resale markets.
C. Return on Investment: The investment portfolio shall be designed to
attain a market-average rate of return throughout budgetary and economic cycles,
taking into account the City's risk constraints. Yields should become a consideration
only after the basic requirements of safety and liquidity have been met.
III
DIVERSIFICATION
It is the policy of the City to diversify its investment portfolio. Assets shall be
diversified to eliminate the risk of loss resulting from over concentration of assets in a
specific maturity, a specific issuer or a specific class of security. In establishing
specific diversification strategies, the following general policies shall apply:
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A Portfolio Maturities shall be matched versus liabilities to avoid undue
concentration to a specific maturity sector.
B- Maturities selected shall provide for stability of income and liquidity,
IV
DELEGATION OF INVESTMENT AUTHORITY
Authority to manage the City of San Jacinto's investment program is derived from the
City Council. Management responsibility for the investment program is hereby
delegated to the City Treasurer and the Finance Director. Level one investments can
only be made by joint approval of the City Treasurer and Finance Director. The
Finance Director or his designee can make level two investments.
Level 1 - Investments
Brokered Securities Percentage
United States Treasury Bills, Notes and Bonds 0 to 100%
Negotiable Certificates of Deposit 0 to 10%
Obligations issued by U.S. Government Agencies 0 to 100%
Commercial Paper 0 to 15%
Medium Term Notes 0 to 20%
Repurchase Agreements 0 to 10%
Time Deposits 0 to 25%
Mutual Funds (Limited to US Treasuries) 0 to 18%
*4MW Mutual Funds (Limited to US Govt. Sec.) 0 to 180/0
Other Investment Instruments Percentage
United States Treasury Bills, Notes and Bonds-Direct 0 to 1001yo
California Asset Management Program (directed portfolio) (%as per above)
Level 2— Investments
Brokered Securities
None
Other Investment Instruments
Money Market Funds (non-brokered) 0 to 20%
Local Agency Investment Fund (LAIF) 0 to 90%
Califomia Asset Management Trust (CAMP) 0 to 50%
Investments may not be made in the following financial instruments:
Corporate Stocks
Reverse Repurchase Agreements
Inverse Floaters
Range Notes
Mortgage Derived Interest-only Strips
Derivatives
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Treasurer and Finance Director to invest in allowable securities as detailed in
investment policy within durations to not effect cash flow.
V
SAFEKEEPING AND CUSTODY
A third party custodian designated by the Treasurer and Finance Director will hold all
brokered securities. All transactions entered into shall be conducted on a delivery
versus payment basis evidenced by safekeeping receipts.
VI
USE OF BROKERS AND DEALERS
The Treasurer and Finance Director must utilize brokers and dealers of government
securities and other investments in making investments. Only brokers/dealers who
are licensed and in good standing with the California Department of Securities, the
Securities and exchange Commission, the National Association of Securities Dealers
or other applica.b.le.self-regulatory bodies may be used to provide this service.
Before engaging in investment transactions with a broker/dealer, the Treasurer and
Finance Director shall receive from the firm a signed form certifying that the
individual responsible for the City's with the firm has reviewed the investment Policy
and that the firm agrees to undertake reasonable efforts to prevent imprudent
transactions involving the City's funds.
VII
PRUDENT MAN RULE
The City of San Jacinto adheres to the guidance provided by the "prudent investment
standard" set down in Government Code Section 53600.3. This section states;
"When investing, reinvesting, purchasing, acquiring, exchanging, selling, or
managing public funds, a trustee shall act with care, skill, prudence, and diligence
under the circumstances then prevailing and the anticipated needs of the agency,
that a prudent person acting in a like capacity and familiarity with those matters
would use in the conduct of funds of a like character and with like aims, to safeguard
the principal and maintain the liquidity needs of the agency."
Vill
ETHICS AND CONFLICT OF INTEREST
Officers and employees involved in the investment process from personal business
activity that could conflict with the proper execution of the investment program, or
which could impair their ability to make impartial investment decisions.
�- IX
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�. MONTHLY REPORTING
The Treasurer shall submit a monthly investment report to the City Council. This
report shall describe all investment transactions during the month, as well as all
required elements of the monthly report as prescribed below:
A. Type of Investment
B. Financial institution involved
C. Date of maturity
D. Amount of deposit or cast of the security
E. Current market value of securities with maturity in excess of twelve (12)
months
F. Rate of interest and yield
G. Statement relating the report to the Statement of Investment Policy
H. Statement that there are sufficient funds to meet the City's obligations for
the next 5 months
I. Amount of accrued interest
J. Purchase dates
K. Percentage distribution to each investment
X
GOVERNMENT CODE ORDER
The City of San Jacinto and San Jacinto Redevelopment Agency are governed by
the California Government Code Section §53600 Et. Seq, and the City's Statement
of Investment Policy for all investment activities. If any section of the City's
Investment policy conflicts with the Government Code Section, the Government
Code Section shall supersede the City's Statement of Investment Policy. Any
information not covered by the Statement of Investment Policy is covered in
Government Code Section §53600 Et. Seq., and said code section should be
referred to.
Previous Review Dates
November 3, 1993
February 3, 2000, amended
April 5, 2001, amended
August 11 2002, reviewed; no changes
April 1, 2004, amended
July 21, 2005 amended
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