HomeMy WebLinkAboutItem M4.
AGENDA REPORT
DATE: July 23, 2001
TO: Honorable Mayor and City Council
THRU: John B. Bahorski, City Manager
FROM: Pamela Arends -King, Director of Administrative Services/Treasurer
SUBJECT: 2001/2002 Investment Policy and Investment Guidelines
SUMMARY OF REQUEST:
Approve the 2001/2002 City of Seal Beach Investment Policy and Investment Guidelines
for investing public funds.
BACKGROUND:
The City of Seal Beach adopted a Budget and Fiscal Policy June 25, 2001which
compliments' the annual Investment Policy that is adopted annually due to AB 1073,
which the State Assembly adopted in 1987. AB 1073 mandates that cities adopt an
Investment Policy Resolution outlining the type of investments into which a city may
place its idle funds. Additionally, as a result of the Orange County bankruptcy,
legislation in the form of Senate Bills 564 and 866 reinforces that a local agency treasurer
must file an annual investment policy with the governing body, and requires the treasurer
to file a quarterly report on investments. The City of Seal Beach has elected to prepare
Investment Reports on a monthly basis and will continue to do so. Senate Bill 566 says
that the treasurer investing public funds is a trustee and has a fiduciary responsibility to
the Prudent Man Rule which states "Investment shall be made with judgement and care,
under circumstances then prevailing, which persons of prudence, discretion, and
intelligence exercise in the management of their own affairs, not for speculation, but for
investment, considering the probable safety of their capital as well as the probable
income to be derived." The Resolution for Council approval has been prepared in
accordance with Government Code Sections 53646(a) and 53600, 53600.5, 53601, and
53635 and guidelines published by the California Municipal Treasurer's Association.
The Resolution provides for safety and liquidity in maximizing the City's investment
portfolio.
Agenda item
i. 't
RECOMMENDATION:
Approve a Resolution adopting the 2001 /2002 Investment Policy and Investment
Guidelines pursuant to Senate Bills 564 and 866.
Pamela Arends -King
Director of Administrative Services/Treasurer