HomeMy WebLinkAboutResolution - 2238 RESOLUT1ON"VU,MBFR 2238
A RESOLUTION OF THE CITY COUWCIL OF THE CITY OF SAN JACINTO,
CALIFORNIA AMMENDING THEIR b1ATEMENT OF EVVESTMENT POLICY
AND RECINDI.NG RESOLUTION NUMBERS 2136 AND 2164
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 andlor amendment a
Statement of Investment Policy; and
WHEREAS, any changes to the Statement of Investment Policy must be considered in a
public session of the legislative body; and
WHEREAS, the City's Statement of Investment Policv has not been reviewed or
amended since November 2, 1993;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Jacinto:
►r
Section I: That the attached Statement of Investment Policy is herewith
incorporated herein and made a part of this resolution.
Section 2: That Resolution Numbers 2136 and 2164 are hereby rescinded.
ADOPER SIGNED and APPROVED this third day of February 2000,
Patrick A. Williams. Mavor
est:
13et: ' n_ ,e , ti'i;y Clerk
Resolution Number 2238 Page 2
State of California }
County of Riverside } ss
City of San Jacinto }
I, Beti An Hynes, duly appoint City Clerk do hereby certify that the foregoing
Resolution Number 2238 was adopted at a regular meeting of the City Council of
the City of San Jacinto by the following called votes:
Ayes: Ayres, Carlson Buydos, Connor, Good and Williams
Noes: None
Absent: None
Witness my hand and seal this 3`d day of February 2000.
Bet] An 9"In's, C ty C_Crk
CITY OF SAN JACINTO
STATEMENT OF INVESTMENT POLICY
Amended February 3, 2000
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. Liquid-ty: An adequate percentage of the investment portfolio shall be niainti fined 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 Investments: 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. Yield 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 diversification 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_
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 or his/her designee.
SAFEKEEPING AND CUSTODY
All security transactions entered into by the City shall be conducted on deliver-versus payment
basis. Securities will be held by a third party custodian designated by the Treasurer and evidence
by safekeeping receipts.
INVESTMENT INSTRUMENTS
Investment transactions may be made in the following financial instruments and in the percentage
of the portfolio as listed below:
nye ment Instrument Percegage
United States Treasury Bills, Bonds and Notes 0 to 100%
Obligations issued by U. S. Government Agencies 0 to 100%
Local Agency Investment Fund (LAIF) 0 to 100%
Time Deposits 0 to 25%
Medium Term Notes 0 to 20%
Commercial Paper 0 to 15%
Negotiable Certificates of Deposit 0 to 10%
Money Market Funds 0 to 10%
Repurchase Agreements 0 to 10%
Investments may not be made in the following financial instruments:
Corporate Stocks
Reverse Repurchase Agreements
Inverse Floaters
Range Notes
Mortgage Derived Interest-only Strips
USE OF BROKERS AND DEALERS
The Treasurer may 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 applicable self-regulatory bodies may be used to
provide this service.
Before engaging in investment transactions with a broker/dealer, the Treasurer shall have received
from the firm a signed form certifying that the individual responsible for the City's with the firm
has reviewed the City's Investment Policy and that the firm agrees to undertake reasonable efforts
to prevent impudent 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, including, but
not limited to, the general economic conditions then prevailing and the anticipated needs of the
agency,that a prudent person acting in a Re 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 shall refrain 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.
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
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
sixty(60) days
I. Amount of accrued interest
J. Actual transactions and dates
K Percentage distribution to each investment