HomeMy WebLinkAbout1985-01-02; City Council; Resolution 78631
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1 RESOLUTION NO. 7863
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CARLSBAD, CALIFORNIA, ADOPTING THE CITY'S
INVESTMENT POLICY.
WHEREAS, the City Treasurer is charged with the responsibility
of managing the bity's investment portfolio, and
WHEREAS, the effective management of this portfolio is of great
importance to thk! fiscal well being of the City, and
WHEREAS, both state law and good management practices require
that an Investmebt Policy which will provide for the secure investment
of City funds be^ adopted by the City.
NOW, THERFFORE, BE IT RESOLVED by the City Council of the City
of Carlsbad, California that the attached Investment Policy, Exhibit A,
is hereby adopte# by the City and that from time to time the City
Treasurer may prbsent changes to this policy to the City Council for
adoption as such changes become necessary.
PASSED, @PROVED AND ADOPTED at a regular meeting of the
City Council of the City of Carlsbad, California, held on the
day of January , 1985, by the following vote, to wit:
2nd
I
NOES: +ne
, ABSENT:
1 I
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ATTEST : i
GdL
MARY H. MSLER, Mayor
(SEAL) I I
, CITY OF CARLSBAD
SXATEMENT OF INVESTMENT POLICY
2 3ANUARY 1985
The City has a fiduciary responsibility to maximize the productive use of
assets entrusted to its care and to invest and manage those public funds wisely
and prudently, therefore; as a general law city, the City of Carlsbad operates
its pooled idle cash position under a prudent man's rule. This affords the City
a broad spectrum of investment opportunities so long as the investment is deemed
prudent and is allowable under current legislation of the State of California
and the local ordinances of the City of Carlsbad.
The City of Carlsbad shall strive to maintain the level of investment of all
idle funds as near 100% ab possible, through daily and projected cash flow
determinations. Idle cash management and investment transact ions are the
responsibility of the City Treasurer. Legal investments may be made in the
following :
Certificates of Deposit purchased from banks or savings and loan ins t i tu t ions
Bankers Acceptances ,
Treasury Bills and NoFes
Government Agency Securities (e.g . Federal National Mortgage Association,
Government National Mprtgage Association , Federal Farm Credits, etc .)
Repurchase Agr eement s~
Revers e Repurchase Ag f eeme nt s
Commerci a1 Paper
State Local Agency Investment Fund
Passbook Savings Account
Criteria for selectinc
1. Safety
2. Liquidity
3. Yield
Government and agency
quality investment availa'
deposit , savings accounts
collateralized.
Most investments are
certificates of deposit hl
be selected to anticipate
liquidation.
The City shall attemp
investments , provided tha
The City shall attemp
needs in such a way that
carry a higher rate than
days or under.
The City shall length1
maturities when rates are
imperfections in the mark
investments, and try to il
interest rates through thl
bargain prices .
The City shall apply
of City funds:
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investments, and the order of priority, are:
paper , and repurchase agreements, are the highest
le in terms of safety and liquidity. Certificates of
and bankers acceptances are insured or
ighly liquid, with the exception of collateralized
Id by banks and savings and loans. Maturities shall
cash needs, thereby avoiding the need for forced
to obtain the highest yield available when selecting
criteria for safety and liquidity are met.
to ladder its maturities to meet anticipated cash
ew investment money can be placed in maturities that
s available in the extremely short market of thirty
n its maturities when rates are falling and shorten
rising. The City shall attempt to take advantage of
t where a security's price is out of line with other
prove the yields during contracyclical changes in
purchase of occasional odd lots which are offered at
he following additional guidelines to the investment
c
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No more than 10% of t e investment portfolio shall be placed with any one financial institution In the event that a decline in the investment pool
causes a condition wh re more than 10% of the total portfolio is invested
with one institution, the City shall remove that portion of funds necessary to reduce the investm nt in that institution to 10% of the total portfolio.
This policy, however, /does not mandate that an investment must be withdrawn
prior to maturity or lpaded at or below cost.
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No more than 30% of t e investment portfolio shall be invested in Banker's
Acceptance Notes. 7
No more than 30% of tde investment portfolio shall be invested in commercial
paper as allowed by St/ate statutes.
The City may invest id the State of California Local Agency Investment Fund
to the limits provided, in State law.
The City shall pursue
prudent using a varie
diverse an investment portfolio as is practical and
of investment vehicles placed with consideration for
the above policies.
Investment Income shall be shared by the General Fund with restricted funds
on a proportionate ratio 4f balances to total pooled cash and investment income
credited accordingly on a (quarterly basis.
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The basic premise underlying the City's investment philosophy is to insure
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the safety of its funds add to assure that money is always available when
needed i