HomeMy WebLinkAboutResolution - 2363 STATE OF CALIFORNIA ) RESOLUTION NO. 2363
COUNTY OF RIVERSIDE)ss
CITY OF SAN JACINTO y
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 Treasure of 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 Policy
must be considered in public session of the legislative body; and
WHEREAS, the City's Statement of Investment Policy has been reviewed
by the City's Chief Fiscal Officer and the Fiscal Officer has recommended that no
amendment be made to the April 5th, 2041 Statement of Investment Policy;
NOW, THEREFORE, BE IT RESOLVED that the City Council rescinds
Resolutions No_ 2283 and approves the City of San Jacinto Statement of
Investment Policy.
APPROVED AND ADOPTED this 1st day of August 2002.
Ayes: Ayres, Carlson-Buydos, Good, Conner
Nays: None
Abstain: None
Absent: None
City of San Jacinto
Icy J les M. Connor, Mayor
ATTEST:
orothy C ouinard, City Clerk
CITY OF SAN JACINTO
STATEMENT OF INVESTMENT POLICY
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.
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.
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 dive,sification strategies, the following general policies shall apply:
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.
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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%
Money Market Funds 0 to 10%
Mutual Funds (Limited to US Treasuries) 0 to 18%
Mutual Funds (Limited to US Govt. Sec.) 0 to 18%
Other Investment Instruments Percentage
United States Treasury Bills, Notes and Bonds-Direct 0 to 100%
Level 2 — Investments
Brokered Securities
None
Other Investment Instruments
Local Agency Investment Fund (LAIF) 0 to 100%
Investments may not be made in the following financial instruments:
Corporate Stocks
Reverse Repurchase Agreements
Inverse Floaters
Range Notes
Mortgage Dcrived Interest only Strips
Derivatives
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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.
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 brokersidealers 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 applicable 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
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."
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.
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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 cost 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 6 months
I. Amount of accrued interest
J. Purchase dates
K. Percentage distribution to each investment
Review Dates
November 3, 1993
February 3, 2000, amended
April 5, 2001, amended
August 1, 2002
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