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Home My WebLink About1987-03-04; Municipal Water District; Resolution 536I RESOLUTION NO. 536 RESOLUTION OF THE BOARD OF DIRECTORS OF COSTA REAL MUNICIPAL WATER DISTRICT AMENDING ADMINISTRATIVE CODE REGARDING INVESTMENT POLIC WHEREAS, the Administrative Code of the Cost' Municipal Water District provides a policy for the investn District funds; and WHEREAS, the Board of Directors has determined 1 is desirable to amend the existing investment policy of tht Real Municipal Water District; NOW, THEREFORE, BE IT RESOLVED by the Bo; Directors of Costa Real Municipal Water District: I Section 6.2 of the Administrative Code of the Real Municipal Water District is hereby amended to r provided in Exhibit "A" attached hereto. APPROVED AND ADOPTED this 4th day of March, 1987 su iJ=L-&C M. Haasl, President Board of Directors COSTA REAL MUNICIPAL WATER DIST I COSTR REAL 1 /MUNICIPAL WATER DISTRICT 1 - . . . . . . . .- .. - . r TITLE: DISTRICT FUND POLI( ADMI N I STRAT I VE CODE I- Latest Revision March 4, 1987 ARTICLE 6. DISTRICT FUND POLICIES Sec. 6.2. Statement of Investment Policy PURPOSE. The Costa Real Municipal Kater District Boa of Directors recognizes the importance of an official adopted Statement of Investment Policy. Therefor annually, the Board will review the investment poli and act to adopt said policy in accordance wi Government 'Code section 53646 (Stats. 1984 ch. 122f The District's policy will be prepared by the Control1 of the District under the direction of the Distri Treasurer. I OBJECTIVE. The cash management system of the Cos Real Muci%ipal Water District is designed to monitor i! forecast expenditures and revenues, thus allowing t investment of funds to the fullest extent possibl While the highest yields available are desirable, t primary objectives are safety and liquidity. POLICY. Costa Real Municipal Fiater District sha strive to maintain the level of investment of idle fur as near to 100% as practical. Investments shall comg with the requirements of Sections 53600-53683 of t Government Code. No investment shall be made unle authorized by Government Code Sections 16429.1, 53601 53635. Criteria for selecting investments in order priority are: (1) safety, (2) liquidity, and (3) yie: Of investments authorized in Sections 53601 and 53635 the Government Code, the following are approved j District Funds: 1. United States Treasury notes, bonds, bills, certificates of indebtedness, or those for which full faith and credit of the United States i pledged for payment, provided: - the initial maximum maturity of any s' investment shall not exceed three ye' from the date of purchase - no more than 50% of such securities shi have an initial maturity in excess of year from the date of purchase; I I COSTR REAL MUNICIPAL . . WATER - . . . . . DISTRICT . . -.. I - TITLE: DISTRICT FUND POLIC ADMINISTRATIVE CODE I@ Latest Revi s ion March 4, 1987 ARTICLE 6. DISTRICT FUND POLICIES Sec. 6.2. Statement of Investment Policy (continued) I I 2. Obligations issued by the Federal Home Loan Bal Board, the Federal Farm Credit Bank System, or : obligations, participations, or other instruments ( or issued by or fully guaranteed as to principal a: interest by the Federal National Mortga? Association, or in obligations, participations, ( other instruments of, or issued by, a federz agency, or a U.S. government sponsored enterpris provided : - the initial maximum maturity of any su investment shall not exceed three yea from the date of purchase - no more than 50% of such securities sha: have an initial maturity in excess of o year from the date of purchase; 3. Banker's acceptances; 8 #I 4. Commercial paper, provided: - it is rated Al+ by Standard & Poors, and P-1 by Moody's; 5. Negotiable certificates of deposit issued nationally or state-chartered banks or state federal associations provided that: - the bank or association is rated A better by Moody's Rating Service or C better by Keefe, Bruyette & Woods 6. Deposits in banks or savings associations which i insured by FDIC or FSLIC, or which to the extent 1 insured are fully collateralized in accordance w: Section 53635 of the California Government Code. I Investment in securities authorized under sect: 53601, but not named herein, including investment I 1 Lob I R I<tHL I MUNICIPAL WATER DISTRICT I- - .. . .. . . ." . I- I ADM I N I STRAT I VE CODE Page 6 TITLE : DISTRICT FUND_ POU Latest Revision I March 4, 1987 ARTICLE 6. DISTRICT FUND POLICIES - See. 6.2. Statement of Investment Policy (continued) POLICY. (continued) financial futures or financial options contracts, . not authorized for investment of district funds. Safety of principal is the foremost objective of tl District. Each investment transaction shall seek 3 avoid capital losses from securities defaults or erosil of market value. The investment portfolio of the District shall I designed to attain a market-average rate of retu: during budgetary and economic cycles, taking in. account the District's investment risk constraints a: the cash flow characteristics of the portfolio, TI District maintains reserves for contingency purpos( only, and as such the portfolio shall be designed i provide for short term conversion from the investme] vehicle to available cash. I I The District shall hold certificates of deposit . state or national banks, or state or national savin< and loan associations located in California. The fir $100,000 shall be insured and any amount in excess 1 $100,000 shall be collateralized as required by la Pursuant to Government Code Section 53643, the Distri may waive collateralization of deposits insured by , agency of the federal government. Certifica. maturities shall be selected to anticipate cash need thereby obviating the need for forced liquidation a' the accompanying loss of interest. No more than 30% the funds of the District shall be placed with a: single institution. The District shall use the Local Agency Investment Fu (LAIF) offered by the Treasurer of the State 1 California when it is beneficial to do so. This fu consists of a diversified pool of safe investmen providing one day liquidity at competitive rates. T District shall utilize this fund depending on t I LVS I ti IitHL I 6 I rage I /1/1UNICIPAL WATER DISTRICT . . .. "__ - ADMINISTRATIVE CODE 1 1 I TITLE: 1 DISTRICT FUND POLI( I I Latest Revision March 4, 1987 I I ART1C=E 6* DISTRICT FUND POLICIES (continued) I Sec. 6.2. Statement of Investment Policy (continued) I POLICY. (continued) liquidity needs of the District and on tl competitiveness of rates not to exceed the LAIF limit $5,000,000 or 50% of District funds available f( 'investment, whichever is less, unless otherwise specif cally authorized by the Board. The District may contract with a registe.red investme advisory firm to provide investment services within t constraints of this policy. PROCEDURES. New Funds : I 1. The General Manager shall review daily the balan in the general interest bearing account and coup1 with the anticipated cash needs of the Distri determine if there is sufficient available cash be considered idle cash available for investment. I 2. If there is cash available for investment, t General Manager shall obtain at least three quot from institutions meeting the security criteria the District. Attempts should be made to obta quotes from local institutions, and if competiti quotes are received, local institutions should utilized first in the placement of funds. 3. The General Manager shall select an instituti according to the adopted criteria, and sha make arrangements for the transfer by eith check or wire to the selected institution. 1 4. All documents shall be transmitted to the District 5. The Treasurer and General Manager are authorized sign investments with only one of the two partic signatures being necessary. 1. I I COSTA REAL I MUNICIPAL WATER DISTRICT I. 6 Pag€ . .". " ... . ...- . . .. ~ DISTRICT FUND POLI( ADMINISTRATIVE CODE Latest Revision March 4, 1987 I I ARTICLE 6. DISTRICT FUND POLICIES (continued) I Sec. 6.2. Statement of Investment Policy (continued) 1 PROCEDURES. (continued) 6. The Board shall review and ratify a listing of a investments, with the previous month's chang noted, at the second Board meeting ofeach month. I Maturing funds: 1. The General Manager shall determine if the procee from a maturing investment are necessary to satis the cash needs of the District. 2. If the maturing funds are not needed, the Gener Manager shall obtain at least three quotes f r possible investment institutions. 3. If the General Manager determines that a competiti quote has been made by the institution where t funds are maturing, the Controller is authorized reinvest the proceeds at the same iastitution. I 4. If the General Manager determines that a noncompc itive quote has been made, the proceeds of t maturing investment shall be considered the same new funds and the appropriate procedures follow I I I STATE OF CALIFORNIA 1 COUNTY OF SAN DIEGO 1 1 ss I, JOHN P. HENLEY, Secretary of COSTA REAL MU1 WATER DISTRICT and of the Board of Directors thereof, do certify that the foregoing Resolution'was duly adopted Board of Directors of said District at a regular meet the Board held on the 4th day of March, 1987, and that adopted by the following vote: AYES : Directors: Bonas, Henley, Maerkle, Woodward and Haasl NOES : Directors: None ABSENT : Directors: None of Directors thereof